Declining RevenueA notable decline in reported revenue signals potential demand softness or project timing risks in the sales pipeline. If sales volumes or bookings remain weak, it can pressure future margins, cash conversion and the company’s ability to deliver scheduled projects over the next several quarters.
Cash Conversion ChallengesPersistent difficulty turning profits into operating cash can strain liquidity and lengthen working capital cycles in real estate. Even with improving FCF ratios, weak cash conversion increases reliance on debt or equity funding for completions and slows reinvestment, raising execution risk.
High Reliance On LiabilitiesMaterial dependence on liabilities increases vulnerability to interest rate moves and credit conditions. Despite improving D/E, a still-high leverage profile can limit strategic flexibility, raise financing costs for new projects, and amplify downside in a slower real estate cycle over the medium term.