Originally Posted by
Harvey Specter
Why are you allocating your debt against propety? Just because thats what it is secured over?
Consider it different way.
You have property worth $X, and shares worth $Y. Deduct from that portfolio debt of $Z (which just happens to be secured over property to give you a low interest rate).
My guess is you are probably overweight in Property yet your returns on an EBITDA basis are probably alot lower.
You could argue the counterfactual that without the property, you wouldn't be able to get debt, which is a far comment. Always compare like for like, while being mindful of the benefits of each.