Strata Investment Holdings PLC T.SRT.UN

RE:RE:RE:RE:RE:RE:RE:RE:Obvious Agenda

[AvInvestor]

The devil is in the details.

- They sold assets with net proceeds of $57.9M, with very little change to the equity ratio of the portfolio. If you examine 

- They managed to increase their cash position to a whopping $3.6M, very highly leveraged portfolio. They’re cutting it very close right now, and any CF deficiency will result in more asset sales or distribution cut. 

- Your comparison to Cominar is absurd. Just because it had a momentary blip to the upside still hasn’t stopped shareholder’s from losing ~ %50 of their equity since then. 

- The magic word was “IF” inflation & rates go up. I don’t have a crystal ball, but the impact of the latest round of central bank & government stimulus will have an eventual impact on the bond markets. We live in a false economy now, and real estate has become out of touch sadly. I’ve been wrong on this subject before, but anything can happen and SRT is incredibly vulnerable to rate rises. It’s not a full proof business to say the least. 

- Yes, update dinfo shows they managed to push their debt maturities. Perhaps the asset sale was a financing conditions for the extension of maturities.