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Total Debt to Total Assets

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Total Debt to Total Assets
A measure of a company's risk. It is taken by adding its short-term debt to its long-term debt and dividing the quantity by its total value of its assets. A ratio over 1 indicates that the value of the company's debt exceeds that of its assets while a ratio below 1 indicates the opposite. Generally speaking, a low total debt to total assets ratio is thought to be desirable.


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The Company's overall portfolio leverage, expressed as a percentage of its total debt to total assets before depreciation and amortization on owned properties and with other minor adjustments, was approximately 72% as of March 31, 2010, down from 76% at December 31, 2009.
The financial covenants incorporated in REIT bond indentures generally include the following requirements; issuers are prohibited from exceeding a Total Debt to Total Assets ratio of 60%, Secured Debt to Total Assets is restricted to 40%, issuers must maintain unencumbered assets with an undepreciated book value 1.
 
 
 
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