High Financial LeverageElevated leverage materially narrows balance sheet flexibility and raises refinancing risk if credit spreads widen. High debt levels magnify sensitivity to interest costs and NOI volatility, limiting the firm's ability to absorb shocks and fund opportunistic investments without issuing equity or selling assets.
Funding Pressure & Interest ExpenseRising interest costs and tighter short-term funding increase recurrent expense and compress FFO margins. With substantial debt outstanding, higher financing costs are a durable headwind to cash returns and constrain free cashflow available for capex, development or dividend sustainability.
Development & Execution RiskLarge multi-year developments require successful leasing, construction and recapitalization over several years. Execution delays, higher construction costs, or weaker leasing could compress projected unlevered returns and strain capital plans, making growth outcomes uncertain until projects stabilize.