What is the amount of debt for each property along with its current Interest Rate, and when does the note(s) come due ?
Also, what is the occupancy %, and when do those leases come due ?
One could expect that all of that data would shift the judgement to the market to decide just how impaired any given property is.
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@FalconJasmineDemocrat2yrs2Y
Excellent point. Ratios of monthly or quarterly hard operating data can do the job. A very simple and auditable measure is Interest Expense as a % of Property Income, or more narrowly, Rents Received. For any situation in which a 6-month rolling average for that figure runs above 50%, the lenders should start writing down the value of their loans, even if they don't let the borrower off the hook.
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