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I'm an equity analyst on the side and my landlord is publicly traded. I know their numbers. Their cost of debt was under 2% when they purchased the property, b
by johngladtj 3y ago
I'm an equity analyst on the side and my landlord is publicly traded. I know their numbers.
Their cost of debt was under 2% when they purchased the property, but it's jumped significantly in the past year or so as their debt schedule has rolled over.
These costs will only increase over the next few years as long as rates remain as they are.
For now it's fine in terms of Cashflow since they had a major renovation in 2019, so their cash outflows aren't as big as they could be, but there are more costs than cash.
They are 100% losing money on the property they are renting to me.