True North Commercial REIT T.TNT.UN

Never Seen this Before on a REIT with More than 90% Occupanc

[Predator2018]

Most of their leases are long-term exceeding 3 years and even 7 to 10 years in some cases. AFFO after  the 50% dividend cut is much lower and interest rate is around 3.8% on most of their debts for the next 3 years and there is no convertible debenture like other reits. Almost all debts are mortgage which is better than debentures. 

I AM BUYING AS IT GETS Slaughtered for long term hold

[CrazyTrader]

I advise you to take a closer look at their debt and find out exactly the break down of how much debt is maturing and when.    There's a reason why the Dividend was cut, properties sold (and one I would consider almost fire sale price).  All just my opinion/view/thinking/guessing

[Predator2018]

Looking at their filings and presentations, their debt is well staggered and are all mortgages backed. They dont have convertible debentures that tends to be worse than mortgage.

[CrazyTrader]

So what's the breakdown, and more importantly, how much is maturing in a year?

[Predator2018]

I think they stated the value of maturing debt in their recent financials. Interest coverage ratio is 2.8% implies they can cover interest payments. weighted average interest rate = 3.63% weighted average term to maturity  = 3.14 years During the quarter, the REIT refinanced a total of $31M of mortgages, one with a fixed interest rate of 4.83 per cent (five-year term) and one with a

[Predator2018]

And many of their government leases with Federal government is at an average of 7 years lease term. 

[CrazyTrader]

Long lease terms are only good if you also locked in low rates for long term.   Otherwise, those long term leases could back fire.   All just my opinion/view/thinking.

[Predator2018]

I agree that the 360 Lauriel property in Ottawa was a Fire sale as it was sold below purchase price. But when you account for the depreciation expenses over the 4 years they owned it, the undepreciated value may be close to the realized sale price.

[CrazyTrader]

you agreed, fire sale.  It wasn't just sold below purchase price, it was sold way below purchase price. Also, you forgetting about inflation.

[Predator2018]

I agree with you regarding the fire sale as the replacement value of that property considering inflation and land appreciation mus be above $30M. The bigger 340 Lauriel property adjacent to the one sold is fully 100% occupied by Correction Canada. I am thinking most of the workers moved from the sold 360 Lauriel  to the bigger 340 Lauriel street. I think the company strictly operates on