True North Commercial REIT T.TNT.UN

Maybe Inovalis is using the right approach

[SIGG1]

managing the debt to gross book value ratio for the Total Portfolio (49.6 %  at September 30, 2023)

They are redirecting cash from the dividend cuts to pay the debt. 

Strenghtening their balance sheet might pay off at the end. 

[EstevanOutsider]

inovalis is in violation of two covenants due to falling occupancy. they don't really have a choice bro. tnt does.

[lancebryant]

Mathamatically certain to be wrong.  Paying down debt is by far and away the worst possible allocation of capital at the current interest rate and renewal rates for the REIT.  In terms of a share holder result; buying shares leads to a 15% implied return on invested capital while the paying down of debt is approximatly a 5-7 percent return on invested capital.  The idea that a 50

[giovinco]

Yes, paying off debt is a good thing. But, tnt is stating that their implied cost of a share is 17 to 20%. So if you use wacc then buying back share, versus 6% or so interest rate, is the right thing to do. i.e. 19% >> 6% or even at 3x This is true if and only if they reinstate the dividend at the previous level before the cut, so I'd assume they'll pay me my dividend in Q3-24 going