Weak Cash ConversionOperating cash flow and free cash flow have been inconsistent, with 2023–24 negative and current OCF covering under half of EBITDA. Poor cash conversion increases reliance on asset sales or external financing for capex, distributions and debt service, raising execution risk if conditions tighten.
Volatile Earnings Track RecordThe company's earnings have swung from deep losses to a recent profit, indicating sensitivity to leasing cycles, valuation adjustments or one-offs. This volatility undermines predictability of rental income and profitability, complicating long-term planning and investor confidence over the next several quarters.
Rising Leverage Vs Prior YearsLeverage has stepped up meaningfully versus prior periods, tightening financial flexibility. Higher indebtedness increases refinancing, covenant and interest-rate exposure, so a downturn in occupancy or valuations would more quickly pressure liquidity and capital allocation over a 2–6 month horizon.