High LeverageElevated debt-to-equity increases interest and refinancing risk, reducing financial flexibility to invest or absorb shocks. Over 2–6 months, high leverage can constrain strategic options, force priority on deleveraging, and amplify sensitivity to rate rises and cyclical pressures in rental markets.
Negative Free Cash FlowPersistently negative free cash flow restricts organic funding for maintenance, portfolio improvements, or debt repayment, often necessitating external financing. This structural cash shortfall undermines long-term self-funded growth and raises vulnerability to liquidity stress or higher borrowing costs.
Earnings Volatility And Low Net MarginSharp negative EPS growth and muted net margins point to volatile bottom-line performance and limited profitability after costs. Over time this reduces retained earnings, limits equity accumulation, and weakens resilience to operational setbacks, complicating efforts to strengthen the balance sheet.