TSX:SGR.UN - Post by User
Post by
logicandinertiaon Jan 16, 2021 5:24am
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Post# 32312679
Give credit where credit is due
Give credit where credit is duei'm not a big fan of this REIT external management structure, but been pleasantly surprised by how this team has managed over the past 18 months.
Prior to COVID, ~ $243 million of dispositions since the beginning of 2019 at a weighted average cap rate of 7.15%.
During COVID, redeployed capital at a 9% cap rate for grocery anchored tenants.
Cash collection rate has been one of the highest in the sector, and renewal activity looks fine.
Just announced they have completed a US$169 million mortgage loan at 3.75%, secured by a pool of 19 properties and is non-recourse to the REIT. Third-party appraisals were above IFRS values, comprising 21% of the REIT’s total portfolio. Extends the weighted average debt maturity to 5.8 years from 4.0 years.
The financing rate was 50 bps lower than the REIT’s weighted average interest rate of 4.2% and next maturity noq isn't until 2023.
With the reduced financing cost, accretive acquisitions and continued industry leading cash collection rates among retail REITS, i think the distribution is covered . GOOD price action this week after the acquisition and refinancing announcements.