Rising LeverageHigher debt-to-equity raises refinancing, interest and covenant risks, especially in real estate cycles. Increased leverage reduces balance sheet flexibility to pursue new developments or absorb shocks, making capital allocation and liquidity planning more constrained over the medium term.
Inconsistent Revenue GrowthVolatile and recently slowing revenue growth undermines predictability of cash flow and earnings. For a developer/manager, inconsistent top-line trends complicate portfolio planning, margin stability and long-term contract negotiations, limiting visibility for multi‑year investments and stakeholder returns.
Free Cash Flow VolatilitySignificant swings in free cash flow make funding capex, servicing debt and sustaining distributions less reliable. For a company in development and asset management, FCF volatility increases execution risk on projects and forces conservative liquidity buffers, possibly slowing growth or increasing borrowing costs.