Deep Negative ProfitabilityLarge negative operating and net margins show that reported economics are currently weak, reducing retained earnings and the ability to accumulate reserves. Persistent accounting losses can constrain reinvestment, limit dividend capacity under REIT norms, and complicate long-term capital planning.
Elevated LeverageHigh debt relative to equity increases sensitivity to interest-rate moves and refinancing risk, especially if cash-flow coverage is volatile. Elevated leverage reduces financial flexibility for new acquisitions and makes the firm more vulnerable to falling asset values or tighter credit conditions over the medium term.
Volatile Earnings & Negative ROEEarnings volatility and a materially negative ROE signal inconsistent profitability and weak returns on invested capital. This undermines predictability of distributions, complicates capital raises, and indicates that current asset mix or leverage is not delivering sustainable shareholder returns over time.