RE:RE:Q3 is outpjn0987654321 wrote: Or, raise their prices. If going forward we have virus risk, the pricing has to reflect that.
That's the theory, however, in practice, it depends on the demand as well. Right now, operators face lower occupancy problems (for several reasons related to COVID) but increased costs (security measures) which hurts their margins. This results in compressed margins which puts pressure on fulfilling triple net lease obligations to Invesque.
The Symphony MOU should help in that regard. After its execution, the lease coverage on the different properties will improve, so the rent collection will improve and the risk for Invesque will decrease. This plus the changes to the credit facility should lead to earnings and balance sheet improvements and at some point the reinstatement of a monthly distribution.