TSX:TNT.UN - Post by User
Comment by matt2018on Aug 07, 2024 7:11pm
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Post# 36168551
RE:RE:RE:RE:RE:RE:RE:RE:RE:No distribution!
RE:RE:RE:RE:RE:RE:RE:RE:RE:No distribution!I believe company on right track. Not many options really.
As they renew their $750M mortgage debt over the next few years at higher rates (they just renewed $7.7M mortgage at 5%/5yrs on July 26, which seems a good rate considering), the AFO will continue to go lower unless you raised rents to match those rate increases.
That is difficult to do in office right now. Your fortunate to just get the renewal and maintain occupany rate.
Best way to maintain your AFO/unit is reduce the number of units.
If you take $10M and buyback 1M units, that's going to get you alot further than slapping $10M on a mortgage.
So here's the question for a math wiz here..... how many units do you require in the float to maintain $1.70 AFO/unit assuming $750M in mortgages are renewed at avg 5-6% (current avg 3.9%).
That's when I believe the buybacks stop and distribution reinstated.
In the meantime, you are not getting paid to wait but you can buy the real estate at a great price.