Elevated LeverageAlthough leverage has improved, a 1.67 debt-to-equity ratio remains elevated for a diversified real estate firm and constrains financial flexibility. Persistent leverage raises sensitivity to interest rate moves and economic slowdowns, potentially forcing prioritization of debt service over growth or capital projects.
Cash Conversion ShortfallA FCF-to-net-income ratio under 1 indicates the company does not fully convert accounting profit into free cash. This limits durable capacity to deleverage, invest, or return capital; leaves the business more exposed to working-capital swings, capex timing, and episodic cash demands over the medium term.
Moderate Profitability MarginsRelatively modest gross (19.12%) and net (6.35%) margins, with a slight gross margin decline, suggest limited pricing power or rising cost pressures. Over time this narrows the buffer to absorb shocks, constrains internal funding for expansion, and makes sustained margin improvement necessary for stronger long-term returns.