Rising Finance CostsHigher interest expense reduces net income and FFO margins, constraining cash available for dividends and investment. With elevated financing costs expected for 2-3 years, earnings volatility and refinancing pressure increase for a leveraged real estate business.
Increased Leverage / Debt LevelsRising absolute debt raises refinancing and interest-rate sensitivity. Even with equity growth, higher leverage amplifies earnings volatility and limits flexibility for opportunistic buys or handling tenant stress during downturns, making conservative debt management critical.
UK Market And FX ExposureMaterial FX losses and a more challenging UK leasing market reduce near-term income predictability. Geographic exposure to a tougher UK environment and currency swings can depress occupancy and valuations, creating structural headwinds to growth and returns.