Post by
retiredcf on Aug 07, 2023 9:19am
Assessment
Moving from retail to industrial should be beneficial in the long run and as indicated, it appears to have its debt well in hand. Hopefully, interest rates will be lower 5.84 years from now. GLTA
NXR.UN reverse split its stock 1:4 in February 2021 and the distribution did not change. At the time it acquired several industrial properties and has acquired more since then. It has also sold retail properties so is certainly now skewed to industrial. Payout ratio in Q1 was 100.7% so there is not a big distribution cushion currently. Payout rose from 91% last year. Thus, we would not really consider the distribution 'safe' in the true sense of the word. Debt is $986M and operating cash flow was $44M last year. Debt to assets is 47.3%. The REIT certainly has variable credit lines, but uses swaps to manage risk and is in a good position: The weighted average interest rate, including deferred financing costs and interest rate swap agreements, of the mortgages payable is 3.20% (December 31, 2022 – 3.21%) and the weighted average term to maturity is 5.84 years (December 31, 2022 – 6.08 years). (5iResearch)