RE:RE:RE:Masked $1.3 Billion Debt BOMB hidden under Equity Accounted There is NO "debt bomb" anywhere. I can go line by line through EAI if that makes you a little more educated.
Additionally, all EAI projects are partnered with the BEST developers in all of Toronto further reducing any risk.
Zibi Development - Recent news release regarding ZIBI land sales stated almost all land loans will be gone after the sale ( I posted the news release earlier with a link. You can read cooper's statement). Zibi is rezoned, and that rezoning of the land is much more valuable than what is on the EAI Assets. As stated before, EAI do not adjust for FMV and assets are greater than stated on the asset list. After this sale, and the START (as CMHC funding will then take hold) of the 2 new apartment buildings announced starting next month, there will be stubstantially no land loans remaining. There is no "Debt Bomb" here.
Brightwater - This project is getting zoning approved so construction can continue with a CMHC loan which will continue to reduce land loans on this property, and increase density. This is a mega project and the value of this development is much greater than stated. The value of this property will be revised up once developments are completed. As stated before, EAI do not adjust for FMV and assets are greater than stated on the asset list. The Townhomes and Mason are being occupied now, and will start completion (Build to sell) in Q4 so the debt will drop materially in the near future and bring one time net income to the REIT in Q4/Q1. There is no "debt bomb" here.
Forma - This is a very profitable mega project and this debt will be repaid in 2028. Its a Pre-Sold Condo Development, well planned, well financed by all partners. There is no "debt bomb" here.
Victory Silos is Combined with Quayside and has approval to start on Phase 1 of development this summer approved, which will start soon. This will allow CMHC loans and reduce land loans. This is a HUGE project on the waterfront of Toronto with a lot of value. With conversion to CMHC loans, and backed by Great Gulf, Dream Unlimited, there is no "debt bomb" here.
Cherry House/Birch House/Maple House - These projects will have their NAV written up materially in the near future as they start occupancy and reach stabilization. These are under CMHC 10 year low interest loans and will be net income positive as a whole. There is no "debt bomb" here
Dream Lebretton is a new 600+ unit apartment project with CMHC loand and will be completed in 2027. This will end up being a net income positive development. There is no "debt bomb" here.
Ivy Condos - This development is done. Closed this quarter (may close a bit in Q4 also). All the liability are gone, and Net INCOME has been realized. There is no "debt bomb" here.
Other - Good example, Scarborough Junction received rezoning approval, and MPCT likely has around 60M+ In Net Assets in this development. Yet it is not adjusted on the EAI as it wont get adjusted until sold. There is no "debt bomb" here.
Multi-Family Rental portion - These are all covered by CMHC loans over 10 years and essentially zero risk. There is no "debt bomb" here.
Stating things like there is a debt bomb, yet not even understanding each development, how EAI works, etc, is very irresponsible.
Predator2018 wrote: You are not addressing the debt bomb in the equity accounted investment and how they are masked in the balance sheet. My point is that if you look only at the balace sheet, you wouldnt understand why everyone say they have high debt leverage. When you see the total debt in the EAI, you have a better understanding as to why they keep saying it has high debt leverage exceeding 70% now. Just wanted to clarify this confusion as the way the company's total debt and liability is presented in the Balance Sheet is highly Misleading.