Since KMP pays out just about 100% of its DCF, how does it ever pay off debt? Eventually the pipelines wont be needed, obviously a long time away though. So in the end KMP will have the debt and no revenue. Seems like the business model is flawed.
It looks as though this fund sells bonds when maturity reaches 3 years left. I was wondering why they do this? Why would they not just wait until it matures? Does it have a positive, negative or neutral affect for the fund holder?
SNH currently has 1.9 billion in debt. Most of which they are just paying the interest on. Average maturity is 10 years. So if they can raise rents and/or occupancy enough over that time to afford higher rates then everything should be fine.