I got burned badly on high debt Cdn REIT's. Another analyst assured me they had it under control on multiple occasions. They did not. I've since reduced the balance of my Canadian REIT exposure to two small positions, and the market will hopefully offer up a chance to dump those too without taking a heavy loss.
BUT, I have taken that bitter lesson and applied it to all my holdings.
Thanks forvtjis exposé. I did not quite get what happened to REXR. Low cash to cover debt maturities in the near yerm? Are its risks priced in now? Or is there a risk of divi slashed?
In my view the REXR dividend is not at risk. They have a very low Debt Ratio and long leases. But IMO the dividend is unlikely to grow much for several years, unless 10 year interest rates come down a lot. Details are in the linked article.
I own only one Canadian REIT : CAR-UN.to (apartment REIT). Bought a small position when the valuation was too cheap to ignore.
First thing I watch when doing DD for REIT is reasonable debt level and well-laddered maturities.
I got burned badly on high debt Cdn REIT's. Another analyst assured me they had it under control on multiple occasions. They did not. I've since reduced the balance of my Canadian REIT exposure to two small positions, and the market will hopefully offer up a chance to dump those too without taking a heavy loss.
BUT, I have taken that bitter lesson and applied it to all my holdings.
One lives and makes mistakes. Perhaps one learns.
Thanks forvtjis exposé. I did not quite get what happened to REXR. Low cash to cover debt maturities in the near yerm? Are its risks priced in now? Or is there a risk of divi slashed?
In my view the REXR dividend is not at risk. They have a very low Debt Ratio and long leases. But IMO the dividend is unlikely to grow much for several years, unless 10 year interest rates come down a lot. Details are in the linked article.
Thank you
Thank you for your reply and for this additional colour. Can you please link the article you have mentioned?
https://focusedinvesting.substack.com/p/rpd-looks-at-rexford-industrial