RE:Why the debt trouble?garyreins wrote: Lots of pure play reits like Riocan, PMZ, FCR, DIR that are not "office" or B-class properties are able to have a capital structure that stabilizes AFFO/FFO and are doing well.
Their debt to GBV is still 50% why they just need to swap floating debt for fixed
I mean dont these guys know how to clean things up and run a REIT like conventional structure
not many got taken to the cleaners like NWH did
I've been following NWH since 2014 and even owned it for awhile (sold at a profit).
Paul Dalla Lana built a machine that was hyper-optimized for a continually decreasing interest rate rate environment.
The business model was simple:
1. Issue shares to raise money
2. Borrow even more money
3. Buy accretive assets
4. Stock price increases
5. Go back to 1
They did this like clockwork every year. And it worked, until it didn't.
The game changed and Dalla Lana was not perspicacious enough to notice and his hyper-optimized machine got caught in an environment it was no longer suited for.
Now they're trying to fix the engine while the plane is in the sky. All I can say to that is, God help you.