Negative Free Cash FlowPersistent negative free cash flow undermines self-funded growth and increases reliance on external financing. In development, this elevates refinancing risk, can raise financing costs, and limits the company's ability to weather slower sales periods or fund new projects without issuing debt or equity.
Profitability VolatilitySwinging net income and EBITDA margins reduce predictability of earnings and cash generation, complicating long-term planning. For a project-driven developer, this volatility increases execution and market-demand risk, making sustained investment and credit terms more expensive or conditional.
Balance Sheet FluctuationsVariable liabilities and equity levels hint at episodic funding, asset revaluations, or recapitalizations. Such instability can raise liquidity and covenant risks, constrain access to attractively priced capital, and limit the company’s ability to commit to multi-year development programs reliably.