High LeverageA materially higher debt-to-equity ratio increases refinancing and interest-rate vulnerability. Elevated leverage limits financial flexibility for new developments, heightens payout and covenant risk, and can amplify earnings volatility if capital markets tighten over the coming months.
Negative Free Cash FlowSharp negative free cash flow despite profitable results signals weakening cash conversion. Operating cash covered only ~55% of net income in 2025, reducing capacity to service debt, fund capex or return capital without accessing external financing, a structural risk if trend persists.
Margin Compression TrendCompression from prior net margins to ~15.7% in 2025 suggests rising operating or financing costs or weaker pricing power. Persistent margin erosion diminishes internal cash generation and return on equity, making the business more sensitive to economic or interest-rate headwinds over time.