High LeverageElevated leverage increases interest and refinancing burdens, heightening sensitivity to rate moves and cash flow volatility. For a capital-intensive property developer, this constrains strategic flexibility, raises default risk under stress, and can limit ability to pursue acquisitions or upgrades.
Weak ProfitabilityA substantial net loss and negative EBIT margin indicate persistent operational inefficiencies or pricing pressure. Over months this undermines retained earnings, weakens reinvestment capacity, and may force reliance on external capital, reducing returns to shareholders and limiting growth execution.
Declining Revenue And EquityA trend of falling revenue coupled with eroding equity reduces the firm's ability to scale and absorb shocks. Declines impair margin recovery, limit reinvestment into refurbishments, and may increase cost of capital, making long‑term value creation from property upgrades harder to sustain.