TSX:SRU.UN - Post by User
Comment by
spacegimpon Mar 11, 2024 12:46am
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Post# 35925717
RE:Construction debt looks like 7%+
RE:Construction debt looks like 7%+ I geuss they are hoping to sell a large chunk of development/vacant lands to bring debt under control as they advance various projects . If not much progress on those sales then you must consider they will be paying an extra $60 million interest on debt this year(1%+ interest adjustment ) , more TRS payments to lock in future debt(of the $2 billion rolling) , not much condo sales contribution to NOI. Probably looking at some additional NOI with several new projects complete and leasing/renting up ... but I think net/net the AFFO will be reduced by perhaps $40 million for the year and so payout ratio reaches 120% .
Maybe they don't mind with all the lands for sale but you have to wonder about future spending on those large projects what it will do to all the debt ratios and will lenders be willing to go much further if interest rates don't drop much in the next few years