GREY:SIHPF - Post by User
Comment by
AvInvestoron May 07, 2020 9:42am
118 Views
Post# 30997119
RE:Obvious Agenda
RE:Obvious Agenda1) According to RBC (apr17), 46% of their debt comes due in 2021. With regards to the article you saw, it only made reference to one of the debt tranches due for 2023. Examine their financial statements, and you will see that they still have a large amount coming due FEB 2021, which will exhaust their revolving credit and liquidity.
2) False! I have seen transactions that were much lower at the time of purchase. Mind you, they have managed to increase CF at the properties. They probably use a cap rate balanced for all the properties which can disguise expensive acquisitions.
3) How about this. I know of a specific grocery/retail property in SE US, that sold for $10.2M in 2011 which was later flipped in 2014 to Slate for $15M! You’ve completely missed management’s main incentive, which is to maximize CF to pay themselves. They couldn’t care less how the sock performs.