Very High LeverageA debt-to-equity ratio above 12 signifies extreme leverage that heightens refinancing, interest and liquidity risk. Over 2–6 months this reduces strategic flexibility, elevates default or forced-sale probability in adverse property markets, and can magnify losses from portfolio volatility.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flow undermines the company's ability to fund operations, service debt, or support investments without asset sales or external capital. This structural cash-generation shortfall raises medium-term funding and solvency concerns for an investment firm.
Declining Revenue And Negative ProfitabilityOngoing revenue declines and negative EBIT/net margins point to operating and portfolio underperformance. Over months, continued losses erode equity, constrain reinvestment, and increase the chance of dilutive financings or distressed disposals, weakening long-term value creation prospects.