TSX:NRR.UN - Post by User
Comment by
DanielDardenon Nov 17, 2023 1:02pm
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Post# 35741407
RE:RE:RE:RE:RE:RE:Dividend cut coming ?
RE:RE:RE:RE:RE:RE:Dividend cut coming ?incomedreamer11 wrote: From last report
LIQUIDITY AND CAPITAL RESOURCES
As at September 30, 2023, Northview had a working capital deficiency of $325.5 million (December 31, 2022 – $781.3 million), of which $260.6 million (December 31, 2022 – $288.4 million) related to the current portion of mortgages payable which is expected to be refinanced with new long-term mortgages. In addition, $62.4 million (December 31, 2022 – $nil) related to the current portions of Exchangeable Units and Redeemable Units. Exchangeable Units are exchangeable for Trust Units and Redeemable Units may be settled in cash or the issuance of Trust Units at Northview’s discretion. The working capital deficiency of $781.3 million as at December 31, 2022 included borrowings on the credit facilities of $503.5 million, for which the maturity was extended to December 31, 2024 during the nine months ended September 30, 2023.
They don't have enough cash, so may issue more units and it will be another dilution and affect AFFO payout
Glad to see that you are now doing research before posting. You may want to look further and realize that ALL types of units are already included in the 36M share count so your point about further dilution is not relevant.
Insofar as working capital, it is typical for real estate where assets are not held for sale. Ordinarily inventory is a current asset along with cash so working capital can be positive in that circumstance. The fact that ~$450M is now not current is a vast improvement IMO. The $260M likely will be CMHC mortgages at lower rates. Good luck with SOT.