TSX:NXR.UN - Post by User
Comment by
hawk35on Sep 27, 2023 7:06pm
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Post# 35658164
RE:NXR-Is Distribution safe ?
RE:NXR-Is Distribution safe ?Payout ratio is near 100% due to timing issues. There is a property in BC that wont start receiving rental income until Q4 and other properties that were purchased where rents have not started yet.
RBC estimates that payout ratio for 2023 will end up at 97%. 2024 estimate is 88% and 2025 estimate is 82%. This is not company estimates but RBC estimates.
In addition to new leases starting, additional income comes from two properties where building are now under construction and they are already leased. Other additional income comes from industrial lease renewals that will see significant increases. And some of the increase comes from new leases with annual increases to offset inflation.
One big plus is that they have only a small amount of loans and mortgages maturing in the future. So the reit will not be signifacntly affected by higher interest rates for another four or five years.