What happens if there isn't enough rental income to cover expenses?

In managing the properties, we budget for the costs of upcoming projects and maintenance. Our financial models are built around conservative estimates for occupancy levels and maintenance needs, thereby reducing the risks for costly surprises and lower-than-expected returns.

We should stress that because the unexpected can, of course, happen, each property has a cash reserve to cover the costs of emergencies such as maintenance cost overruns, extended vacancies, and tenant insolvency.

In the unlikely event that emergency costs exceed available cash reserves, BRXS will obtain a short-term loan from one of our group entities to cover the costs. This loan would then be gradually repaid using future rental income, which may reduce your return on investment. To confirm: in such an instance, we will never ask investors for additional capital.

Updated on:
February 25, 2022
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