Declining Revenue And ProfitabilitySustained revenue contraction and transition to net losses indicate structural pressure on leasing rates, occupancy or cost control. Continued deterioration undermines retained earnings and capital available for maintenance, acquisitions, or distributions, threatening medium-term growth plans.
Inconsistent Free Cash Flow GenerationUnstable free cash flow restricts the firm's ability to fund capex, pay stable dividends, or deleverage without external financing. For a capital-intensive real estate business, inconsistent FCF hampers reinvestment in assets and raises reliance on capital markets during downturns.
Erosion Of Stockholders' EquityA shrinking equity base signals asset write-downs or losses that weaken the firm's capital buffer. Over time this reduces financial flexibility, increases refinancing risk, and can lead to higher borrowing costs or constrained growth if not reversed by earnings recovery or equity injections.