TSX:TNT.UN - Post by User
Comment by
matt2018on Feb 25, 2024 9:10am
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Post# 35897729
RE:RE:$54 million in distributions per year to $0
RE:RE:$54 million in distributions per year to $0agree BlueJay, there is a comparison to be made with the O&G stocks when they got whacked hard.
One reason the O&G companies thrived after the major hit was that they stopped spending and addressed debt, seriously.
It was a matter of survival for them and then they got a break with higher energy prices.
I hope that once rates move down a bit, these Reits stick with game plan of asset sales and more FFO cash to reduce debt, instead of going on spending spree.
A small reit I have owned for years (and I mean small), has operated with zero debt for quite some time now.
They pay two $0.40 divs per year (have never cut), plus just paid a $1.00 special div last month.
They are opposite of most reits. They actually have excess cash in GIC's earning more income and own shares in their main tennant (large conv store player)
The current share price is below NAV like other reits but it has held its trading value last 3 yrs.
I believe TNT needs to seriously address the debt levels next, after the buybacks.
Even if ithat means they become smaller is size. Keep the quality stuff and sell off the rest.