TSX:NWH.DB.G - Post by User
Comment by
ManitobaCanuckon Oct 23, 2022 12:10pm
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Post# 35041976
RE:RE:Dipping in
RE:RE:Dipping incanadian wrote: ManitobaCanuck wrote: Buying in now with my oilstock gains and chipping in 1k shares monnthly p . Looking for 50% increase in price in 5 yrs plus 7% dividend compunded equal to 90% gains . Long term holder
Expect the dividend to be cut if interest rates stay higher for longer time as most of their debt is at variable rate
That is a possibility but unlikely in my opinion . You are correct , only 36% of their debt is fixed rest is variable . But all their rents are inflation indexed with 14 yr leases average , so the additional rents will make up for the interest costs . Inflation is 13% in the UK and worldwide 8.8% . So a corresponding increase in rents should cover up the increased interest costs .
Lets put it this way . Their interest coverage ratio is 2.81 , not great but not horrible either and should improve as the new increase rents starts showing on balance sheet.