Volatile Revenue And EarningsLarge swings in top-line and net results reduce predictability of cash available for dividends and investments. Such volatility—driven by non-operating items and cyclical exposures—weakens forecasting, raises sensitivity to macro shocks, and complicates long-term capital allocation decisions for management.
Weak And Inconsistent Free Cash FlowErratic FCF undermines the firm’s ability to reliably service debt, fund distributions, and execute development projects without external financing. Over the medium term, constrained or unstable cash generation increases refinancing and funding risk, limiting financial flexibility in higher-rate or downturn scenarios.
Meaningful Leverage Raises Financial RiskElevated and persistent debt levels typical for real estate magnify exposure to interest-rate moves and asset-value declines. This constrains the firm's ability to pursue opportunistic investments and increases the probability that adverse market or financing conditions could force asset sales or more expensive refinancing.