Rising Property Capital SpendingHigher recurring property capital spending, including leasing commissions and tenant improvements, pressured cash available for distribution and led analysts to lower earnings forecasts.
Studio Business And Financing RiskThe studio business faces an anchor-tenant lease expiration and a sizable loan coming due, creating meaningful uncertainty about future cash flows and financing stability.
Tenant Concessions And Occupancy ShortfallUnusually large tenant incentives and occupancy that remains well below previous peaks reduce effective rents and compress profit margins, weighing on revenue recovery.