TSX:NWH.DB.G - Post by User
Post by
DanielDardenon Jun 22, 2023 5:01pm
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Post# 35510054
Analysts- Where is the Hurt???
Analysts- Where is the Hurt???Yes, the abandoned JV was a disappointment to the co. and some investors but was it disaster financially as some analysts are reporting? Rudimentary calculations demonstrate that it is not!
At a 6% cap rate the 70% would produce $16.235M in NOI annually. At a rate of 4%, depreciation allowance would add $11.04M to cash flow for a total of $27.275 annually. Meanwhile interest on the $276M @ 8.2% would amount to $22.632M annually. The net result is almost $5M in additional cash flow. Where is the disaster? Would management fees on the 70% yield more?
PDL has stated that he would prefer to move towards managing assets of JVs more and reducing ownership to reduce debt. He would probably admit that his timing was not impeccable but he also knows that the hospitals are essential infrastructure. Do the analysts?