TSX:AX.PR.E - Post by User
Comment by
Frankie10on Mar 02, 2024 8:29pm
72 Views
Post# 35911617
RE:RE:Please vote!
RE:RE:Please vote!I would be happy to explain. There are many moving parts so I will answer simply and directly. Vacancy was flat, and SPNOI increased slightly, however this was offset by our Series D senior unsecured debt maturing on September 18, 2023. The series D had an interest rate of 3.8% - very low - and given the maturity was at the end of Q3, the negative impact of paying this cheap debt using much more expensive debt (credit facilities) was fully felt in Q4 - negatively impacting AFFO, FFO and cashflow.
Lastly, as you remark - there are $400M+ of asset dispositions that have not closed yet. The sales are only accretive (positive) for the REIT after the sale is closed and the debt is repaid. (Positive impact is the interest saved less the NOI foregone).
I had the same question myself in my analysis. Having looked into it, I figured I save you the time.