Persistent Revenue DeclineMulti-year revenue contractions erode scale, reduce project throughput and threaten long-term earnings power. In real estate, sustained top-line decline can force margin compression, slow land replenishment, and impair the company's ability to weather prolonged market slowdowns.
Weak Cash GenerationNegative operating cash flow and falling free cash flow indicate the business is not generating sufficient internal liquidity to fund development cycles. Over months this pressures working capital, increases refinancing needs, and may necessitate asset sales or external funding.
High Financial LeverageA debt-to-equity ratio of 2.44 signifies significant leverage that amplifies risk in downturns. Coupled with weak cash flows and declining revenues, high leverage limits strategic flexibility, raises interest burden and heightens refinancing and covenant risks over the medium term.