Negative Free Cash FlowPersistent negative free cash flow undermines self-funding of projects and increases reliance on external financing or equity raises. Over a multi-month horizon this pressures liquidity, constrains capacity to invest in new developments, and raises sensitivity to higher borrowing costs or tighter credit markets.
Profitability VolatilityVolatile net income and EBITDA margins reduce earnings predictability and weaken investor and creditor confidence. For a developer, variability can stem from project timing and cost swings; persistent volatility complicates long-range planning, makes budgeting harder, and can raise financing costs.
Fluctuating Liabilities And EquityMaterial swings in liabilities and equity suggest inconsistent capital structure management or episodic funding needs. This increases refinancing and covenant risk, may limit access to favorable debt terms, and can force dilutive financing at inopportune times, eroding long-term shareholder value.