Rising LeverageIncreasing debt-to-equity raises interest burden and refinancing risk. Over months this constrains capital allocation, forces higher cash coverage for debt service, and can pressure distributions or require asset sales if market conditions tighten.
Persistent Net Losses / Negative ROEOngoing net losses and negative returns on equity erode retained earnings and limit internal funding for growth or capex. This structural profitability weakness makes the REIT more dependent on external financing or asset rotations to sustain distributions.
Declining Free Cash Flow GrowthA declining free cash flow growth trend reduces internal resources for maintenance, tenant improvements, and strategic investments. Over a multi-month horizon this increases reliance on debt or disposals to fund capital needs and maintain distributions.