All about the debt Less about the facilities and more about refinancing debt that comes due and at what price. The "magic" of these REITs has been issuing equity above NAV and then purchasing more assets with associated debt.
how much is corporate debt vs mortgages and what is the maturity schedule? Funding costs have obviously gone up.
northwest hit the equity market luckily in December . We will have to see if they can close the Aussie sales in q2/20 . Not much is moving anywhere.
I would take a haircut of 15-20 percent to last NAV, which resets it to $10.50 or so. And don't forget that much of the cdn assets are older medical buildings with pharmacy anchor tenants (a biz slowly going online) and some small retailers (who will be struggling).
If the funding market remains chopping for the next few quarters, inorganic growth will be difficult. So the market has it about right. Perhaps a dividend cut to maintain liquidity flexibility in the future . That is what the current quote seems to be implying.
this one actually has performed better than most REITs due to its medical focus , but be forewarned that the financials and debt structure are not simplistic . The debt markets have changed dramatically for all REITs. so buyer beware for less sophisticated investors . This is an international REIT facing associated risks .
I like this company, but they face the same challenges as everybody else. Wait for a washout day and buy it in the $7s. Good luck.