Rising LeverageLeverage has increased materially over recent years, nearly tripling since 2022. Higher debt amplifies refinancing and interest-rate risk in a cyclical real-estate development business, constrains financial flexibility, and makes funding new projects and weathering downturns more difficult without external capital.
Persistent Negative Operating Cash FlowThe company has produced negative operating and free cash flow in most recent years, reflecting structural cash burn. Persistent OCF deficits force reliance on external financing, increasing dilution or leverage risk and leaving the business exposed to tighter credit conditions or higher funding costs.
Weak, Volatile ProfitabilityProfitability is inconsistent and has deteriorated, with recurring net losses and margin compression in 2025. Negative returns on equity and volatile revenue/margins signal weak earnings power, limiting the firm's ability to reinvest or build reserves across real-estate cycles without external support.