CNSREIT-AR-2024 Final - Flipbook - Page 21
Our Board (or a committee thereof) reviews our aggregate borrowings at least quarterly. In connection with such
review, our Board (or such committee) may determine to modify our target leverage ratio in light of then-current economic
conditions, relative costs of debt and equity capital, fair values of our properties, general conditions in the market for debt
and equity securities, growth and investment opportunities or other factors. We may exceed our targeted leverage ratio at
times if the Advisor deems it advisable for us. For example, if we obtain a line of credit to fund repurchases, we will
consider actual borrowings when determining whether we are at our leverage target, but not unused borrowing capacity. If,
therefore, we are at our target leverage ratio of 50% to 65% and we borrow additional amounts under a line of credit, or if
the value of our portfolio decreases, our leverage could exceed 65% of our gross real estate assets. If our leverage ratio
exceeds our target, regardless of the reason, we will thereafter endeavor to manage our leverage back down to our target.
There is no limit on the amount we may borrow with respect to any individual property or portfolio. However, under
our charter we may not incur indebtedness for money borrowed in an amount exceeding 300% of the cost of our net assets,
which approximates borrowing 75% of the cost of our investments, unless any excess over this limit is approved by a
majority of our independent directors, and disclosed to stockholders in our next quarterly report, along with justification for
such excess. This limitation includes indebtedness for money borrowed with respect to our real estate debt portfolio.
