TSX:SRU.UN - Post by User
Post by
shawshank2on Sep 06, 2020 9:53pm
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Post# 31517296
Why the huge writedown on properties?
Why the huge writedown on properties?Net loss and comprehensive loss was $133.7 million as compared to net income and comprehensive income of $95.5 million in the same period in 2019, representing a decrease of $229.2 million. This decrease was primarily attributed to adjustments recorded to reflect the impact of COVID-19, namely: i) decrease in fair value adjustments on revaluation of investment properties of $199.2 million principally due to changes in occupancy and cash flow assumptions such as rental rates, lease renewal rates, leasing costs, downtime on lease expiries, vacancy allowance, among others, and ii) expected credit loss provisions of $15.0 million. Note, IFRS fair values do not reflect expected incremental property values emanating from the Trust's mixed-used intensification initiatives which would include SmartVMC, Leaside, Westside Mall, 1900 Eglinton Avenue, Vaughan NW, Pointe-Claire, and other future development properties