Earnings VolatilityPronounced earnings volatility, including a loss in 2023, reduces predictability of distributable earnings and complicates long-term planning. Cyclical swings in profitability can impair dividend consistency, raise capital costs, and weaken stakeholder confidence during downturns, increasing business risk.
Leverage Around 1.0xA roughly 1.0x debt-to-equity profile constrains financial flexibility; higher leverage raises refinancing, interest rate and covenant risks in prolonged market stress. Limited headroom can hamper the firm's ability to pursue opportunistic development or absorb revenue shocks without external capital.
Low Cash Coverage Vs DebtModest cash flow coverage relative to total debt increases liquidity and refinancing risk, especially if rental markets soften. Limited cushion restricts reinvestment capacity and heightens sensitivity to interest rate rises or temporary occupancy declines, potentially forcing asset sales or equity raises.