Capitalization-rate Impact On ValuationsExpansion in capitalization rates lowered reported property values and resulted in a fair value loss on investment properties, weighing on reported asset metrics per analyst report.
Declining Leasing SpreadsEffective new-leasing spreads are trending downward, mirroring sector patterns and putting pressure on future rental revenue growth, says analyst.
Limited Rent Reset AbilityA large portion of the portfolio cannot quickly raise rents, which constrains quarter-to-quarter revenue growth and keeps topline gains modest, according to analyst expectations.