GREY:SIHPF - Post by User
Comment by
TickBombon Jul 07, 2020 7:46am
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Post# 31232479
RE:RE:RE:RE:Free Fall
RE:RE:RE:RE:Free Fall So again Distributions are paid from FFO not AFFO. AFFO is an accounting number that tries to incorporate long term capital spending to keep the quality of the buildings up. Basic maintenance etc is incorporated into FFO costs etc. So if you believe that the rent collections will be 80-90% for the next 5 years, then they may issue a cut because it would affect their capital spend, but in the short run 1-2 years, they are running on FFO. If you believe that this is temporary, then they don't really need to cut, but anything is possible.
If you listen to Management, they are pretty bullish on their thesis, even renegotiating the last deal at a lower cost. Don't know why they would spend liquidity if they were going to cut.
do your own DD...