TSX:SGR.UN - Post by User
Post by
DanielDarden123on Mar 25, 2021 6:16pm
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Post# 32883253
The Big Bite
The Big BiteShould finally put SGR in the big league. While debt increases substantially, it is essentially fixed at 4.2% (avg) for 5 yrs (avg) and is protection against rising rates while the cap rate is decreasing from the presently elevated 7.8%. Dallas is considered as one of the faster growing cities and NY is doing well so their addition to the portfolio should be considered as a positive. The involvement of the institutional investors lends credibility to SGR and should bode well going forward.
At a 7% cap rate, evaluation increases by $100M assuming improving NOI and NAV/u improves by $1/u. Those worried about a distribution cut might have to accept an increase instead.