1.5x ICR is one of the lowest I have seen. I doubt there would be a covenant on that, as if there was it is bound to have been breached.
Doesn't seem to be a large buffer considering current leasing of 92.6% which like other REITS, stands a good chance of decline mid-term?
It seems to me that everything I come across that was built predominantly around US assets was leveraged to the max.
CER at 68.7% is lower than some other USA focussed I have come across, as hard as that is to believe.
The Japanese ones seem to be able to get away with higher gearing to some degree due to their multi-decade deflation and low rates, while most Aus focussed assets are under pressure with gearing in the 40's and 50's and ICR's over 2x.
CER Price at posting:
2.9¢ Sentiment: None Disclosure: Not Held
