Persistent Net LossesSustained negative net margins erode retained earnings and reduce reinvestment capacity. Over several quarters this undermines returns on equity, limits capital for new developments, and forces management to prioritize cost cuts or asset disposals to regain profitability.
Declining Revenue TrendA multi-period revenue contraction reduces scale benefits and signals weaker demand or execution. Continued revenue decline can compress gross cash generation, strain leasing absorption or sales velocity, and make it harder to cover fixed development and SG&A costs over time.
Declining Free Cash Flow / Liquidity PressureFalling free cash flow limits the firm's ability to fund capex, complete projects, or service obligations from operations. Even with low leverage, worsening FCF raises the likelihood of external financing needs or asset sales, reducing optionality and increasing financing cost risk.