Inovalis Real Estate Investment Trust T.INO.UN

Alternate Symbol(s): IVREF

Inovalis Real Estate Investment Trust is a Canada-based open-ended real estate investment trust (REIT). The Company is formed for the purpose of acquiring and owning office properties primarily situated in France, Germany, and Spain. The REIT properties are strategically situated in urban areas, generally in close proximity to public transportation. Its France properties include Gaia, Arcueil, Delizy, Metropolitan, Sabliere, and Baldi. Its Germany properties include Trio, Kosching, Neu Isenburg, Stuttgart, Bad Homburg, and Duisburg. Its Spain property is Delgado. The INOVALIS S.A. acts as the manager of the REIT.

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Inovalis Real Estate Investment Trust > The numbers look bad. The risk is High.

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Comment by hawk35on Nov 07, 2022 5:11pm

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Post# 35080223

RE:The numbers look bad. The risk is High.

Another big concern is that INO is already in breach of several debt covenants on their loan and mortgage debt. They could be forced to immediately repay the debt if the banks forced their hand. This was disclosed in the 2022 Q2 report. The covenant breach was caused by early termination of other smaller tennant leases. The loss of this big lease in mid 2023 would be another covenant breach and could force them to sell properties to cover debt. This risk is real.

Another area of concern in the Q2 report is that some of their larger tenants have early lease termination rights. They can exit their leases without a big financial cost. If even one more large tenant terminates, its really gonna hurt them.

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