Elevated Leverage MetricsLeverage modestly above target and high net-debt/EBITDA increase sensitivity to interest rates and asset revaluations. This constrains capital allocation flexibility, narrows covenant headroom, and raises refinancing risk during cyclical downturns, making growth more funding-dependent and cash-flow sensitive.
Weak Cash ConversionPersistent gap between reported profits and cash generation signals development timing and working-capital volatility. Lower cash conversion raises reliance on external funding for capex and dividends, amplifying exposure to credit markets and potentially forcing financing at higher marginal costs in stress scenarios.
Absolute Vacancy And Development Timing RiskLarge absolute vacancy and refurbishment-driven downtime depress near-term income and require capital to relet assets. Combined with completion timing shifts, this increases earnings volatility and delays cash returns on development, complicating leverage reduction and steady dividend delivery over the medium term.