TSXV:PAR.H - Post by User
Comment by
YieldChaseron May 01, 2014 1:36pm
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Post# 22513495
RE:RE:YiedChaser, trying to scare people here
RE:RE:YiedChaser, trying to scare people hereThank you.
they pay 10% because it is a second mortgage.
hopefully they will pay it back as soon as they can refinance some of their upcoming mortgages at around 4% which is what commercial mall owners pay these days.
this loan per se is not the core issue. The core issue is the lack of cash on their balance sheet caused by over distribution. What is also unclear is if the NOI of the assets can at least be kept flat. It has dropped on same assets from 2012 to 2013 somewhat if you dig into the MD&A of the YE 2013 financials.
with the new acquisitions, many with higher than normal vacancies, we will have to wait a while until normalized financials can be shown, likely 4th quarter financials in early 2015 at the earliest. Until then the stock will linger in low $4 territory as stated here earlier .. Or may drop to sub $4 if NOIs drop ..
a distribution cut may actually help the share price, as more cash could de deployed into assets to increase occupancy and leases charged.