RE:Interest expenseYes, they could do that. As long as they continue to satisfy the conditions I have copied below.
Page 72 of the Artis 2022 Annual Report says that
the ratio of unencumbered assets to unsecured debt at December 31, 2022 was: 1.54.
Page 77 of the Artis 2022 Annual Report states:
"The REIT has two unsecured revolving term credit facilities in the aggregate amount of $700,000, which can be utilized for general corporate and working capital purposes, short term financing of investment property acquisitions and the issuance of letters of credit. At December 31, 2022, the REIT had $98,066 available on its revolving term credit facilities. Under the terms of the revolving credit facilities,
the REIT must maintain a minimum unencumbered property assets to consolidated unsecured indebtedness ratio of 1.4. As at December 31, 2022, this covenant did not limit the total borrowing capacity of the revolving credit facilities (December 31, 2021, limited to $635,313)."
SNAKEYBOY wrote: If artis is getting rocked by floating debt and credit facilities couldn't they take out mortgages on their unencumbered properties and pay it off or get in a longer term fixed that nwh did. Or are they comfortable that variable will outperform over a few years.