SOT has a weighted average mortgage term remaining of only 1.6 years and $338mm due in 2023
Subsequent Events disclosure shows a 3month extension, a 2month extension, and an "overhold" (no extension but paying month-to-month)
Has $18mm cash + $38mm undrawn credit
Net Debt to BV was 62.3%. If the asset values were higher then leverage would drop....
IFRS NAV of $7.63/unit based on weighted average cap rate of 7.05%. If they could sell anything at carrying value then I'm sure they would.
Looks like SOT could use $100mm capital to reduce mortgage balances on renewal and give confidence to potential tenants. Options:
1) sell a GTA asset with devt upside
2) rights offering
3) ?
Distribution cut saves $22mm, but it's not enough
ITS OVER