Asset price would have to be downgraded by 20% or more before...

Asset price would have to be downgraded by 20% or more before they would be close to reaching their 50% debt limit (thus forcing either asset sales or capital raising).

10 year bond is around 4.5%

Risk free premium 1-2% above bonds (Long wale, bluechip etc)

So based on the average cap rate of 5.25% you could expect a small valuation downgrade but nowhere 20% in my opinion.

Of course the risk is that rates need to go higher and that will affect things but there is still a reasonable buffer. If management is doing the right thing, they will be disposing of some properties to reduce debt now in a controlled fashion at or close to market value. Hopefully they confirm this at the meeting later this month.