High LeverageVery elevated leverage materially increases refinancing, interest-rate and valuation risk over the medium term. In weaker property cycles or higher rates, debt servicing and rollover needs can constrain capital allocation, force asset sales, and amplify returns negatively instead of supporting growth.
Poor Cash ConversionPersistent negative operating and free cash flow means the business relies on external financing or asset transactions to fund operations. Over 2-6 months, continued weak cash conversion limits flexibility to invest, service debt, or withstand project delays without dilutive or costly financing.
Profitability VolatilityLarge swings in reported profitability point to earnings driven by timing of project recognition or one-off gains rather than stable operating margins. This volatility makes future margin sustainability uncertain and complicates planning for reinvestment, dividends, and debt servicing.