Modest Return On EquityAn ROE of 8% suggests the business is capital intensive and converts equity into profits at a moderate rate. Over time this can limit shareholder returns unless offset by strong asset growth or improved operating efficiency, and it highlights the need for disciplined capital allocation.
Exposure To Tourism And SeasonalityHoliday park income depends on occupancy and tourism trends, which are cyclical and weather or macro-sensitive. Structural reliance on short-stay demand introduces durable variability to cash flows and profitability, complicating long-term forecasting and planning for the business.
Concentrated Customer DemographicFocusing on seniors and downsizers concentrates demand risk in one demographic cohort. Long-term growth relies on this group's housing preferences and affordability; regulatory or policy changes affecting retirement living or senior housing could materially alter demand dynamics.