Answer: Of the 4 Liquidating LifeStage REITs, Lightstone Value Plus Real Estate Investment Trust V has the healthiest interest coverage ratio at 7.7X. However, each of the other 3 Liquidating LifeStage REITs also has what is considered to be a healthy interest coverage ratio; American Finance Trust at 3.4X, Inventrust Properties at 7.0X, and KBS Legacy Partners Apartment Trust at 2.0X. According to industry analysts, a 2.0X interest coverage ratio, meaning operating income is at least twice interest expense, is generally considered to be in the healthy category.
Furthermore, while American Finance Trust is paying a distribution yield of 5.20%, its MFFO payout ratio of 131% means it is not covering those distributions completely.
