Rising Debt LevelsManagement's own assessment flags increasing debt, which can amplify interest expense and refinancing risk if rates remain elevated. Over several months higher leverage can constrain capital deployment, reduce covenant headroom, and heighten sensitivity of development margins to funding costs and macro shifts.
Operational Margin PressureA declining EBIT margin points to rising operating or development costs that may compress profitability if persistent. Sustained margin pressure reduces internally generated funds for growth, weakens buffer for rental income volatility, and could force tougher tradeoffs between pricing, cost controls, and project volumes.
Suboptimal Cash ConversionA free cash flow to net income ratio under 0.5 shows earnings are not fully converting to cash, limiting capacity to fund capex, development working capital, or distributions without asset recycling. Over months this can pressure liquidity management and increase reliance on external financing during project peaks.