Post by
garyreins on Nov 01, 2023 2:38pm
AFFO is more important than debt
Who cares if their debt is 95%....if they are raking in AFFO of 0.44/year that means their cashflow after debt is positive, therefore providing rates dont go much higher or stay higher for years, they are profitable!
Comment by
EstevanOutsider on Nov 01, 2023 3:09pm
they have to maintain below 75% to debt ratio for covenant requirements. but yes they are very profitable here and will be a huge winner if rates start falling as it looks like they will considering they already cut their distribution.
Comment by
wheeloffortune on Nov 01, 2023 3:42pm
No they don't Banks cannot refuse to renew a commercial mortgage if they're making their payments on time. Debt ratio requirements are just for new mortgages.
Comment by
EstevanOutsider on Nov 01, 2023 3:57pm
The Declaration of Trust provides that the REIT may not incur or assume any Indebtedness if, after incurring or assuming such Indebtedness, the total Indebtedness of the REIT would be more than 75% of Gross Book Value. As at December 31, 2022, the aggregate Indebtedness was approximately $850.4 million, representing 59.3% of Gross Book Value.