TSX:SGR.UN - Post by User
Comment by
DanielDarden123on Nov 05, 2022 12:08pm
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Post# 35075685
RE:Net Leases!
RE:Net Leases!DanielDarden123 wrote: Net leases also offer protection in an inflationary environment. Over 97% of our leases are net, meaning tenants are responsible for taxes, insurance, and maintenance costs, such as utilities or repairs, in comparison to a gross lease, where those costs are the responsibility of the landlord. (From Q1 Report)
My Take: This is ideal for inflationary periods. While charged rents are increasing, most costs are not. Sellers must be unaware and leave opportunities for the informed.
ZThe proof is in the pudding! The payout ratio has now declined to ~90% based on AFFO/u. Rents have inflated while their costs have not. A perfect setup for the present situation yet this is trading at a ~30% discount to NAV. Go figure!