True North Commercial REIT T.TNT.UN

Debt Ratio & Mortgage Issues?

[InvestSmarter]

Currently debt was reported at 60.2%. When they write down the assets, we could get closer to 70-80%.

Most banks are only offering mortgages on office Buildings at 50% of their value.

This could be the problem with the unit price, even with last reported 60.2% debt ratio (which is too low, it's actually higher when they write down)

[garyreins]

Too bad the CEO didnt see this one coming...isnt he supposed to be a real estate mogul

[EstevanOutsider]

their covenant allows up to 75%. i talked to starlight cfo last month (sept 30) and he told me they were not having refinancing issues. i think that should be reflective of the relatively low financing they secured in the 1H and into Q3 (low 6%). quite a bit of property was acquired by use of units which saved them IMHO from having more bank debt. they paid decent prices and periodically have been