Rising Debt LevelsAlthough current leverage is balanced, the noted trend of rising debt increases interest and refinancing exposure. For a developer/landlord, higher debt during softer markets or rising rates can compress margins, limit capital recycling, and heighten financial risk over the medium term.
Suboptimal Cash ConversionA FCF-to-net-income ratio below 0.5 implies a material portion of reported profits isn't turning into free cash. For a company funding development pipelines and distributions, limited cash conversion constrains reinvestment flexibility and increases dependence on external funding during growth phases.
Operational Margin PressureA declining EBIT margin points to rising operating costs or margin compression in core activities. If persistent, this reduces operating leverage from development and rental income, narrowing the buffer for cyclical revenue declines and limiting the firm's ability to expand margins over time.