True North Commercial REIT T.TNT.UN

The way of Inovalis?

[Lyburnum]

Is True North on its way down in the likes of Inovalis (INO.UN) with a dividend cut imminent given such a high payout ratio consistently over 90%? This is an old article. Thought I would repost it due to the recent slashing of INO`s target price with analysts. I would be cautious with TNT using the Inovalis story as a warning for might to come. However, for someone like myself, TNT is now on my radar and I look forward to entering a position should the dividend get slashed. 

 

True North REIT: Are We Going The Way Of Inovalis? (TSX:TNT.UN:CA) | Seeking Alpha

[CanSiamCyp]

This post has been removed in accordance with Community Policy

[Lyburnum]

Orange is still a tenant for 6 more months and the building is still there to rent to another tenant... the question is how long will it be before all the stars are aligned, in the case of TNT, for all the variables to hit the REIT at once like in the case of INO. A 9% dividend is unsustainable forever no matter the industry.

[rabnud]

how is a 9%  dist  unsubstainable ?? the market in general has been hit hard do to economy worries and interest rate hikes;; and general market unrest  hence share prices have plunged  thats the only reason it currently shows 9%;;;   INO  is a very small reit that lost 28% of its revenue when a single client bailed  also to note they cut the dist in half

[5tizzy]

How a 9% distribution unsustainable: a 97% AFFO distribution rate. This has very little to do with market conditions. You do realize that as of right now, the unit price is hovering around its 10 year average? Every asset class has been overinflated since well before 2019, but more so since. Here's reality bucko. buildings break down and require upkeep. INO essentially kicked out Orange S.A