Rising Leverage TrendAn upward drift in total debt increases interest and refinancing risk and reduces financial flexibility. In a higher-rate environment or an office downturn, greater leverage can force asset sales or cut distributions, constraining long-term strategic options and capital allocation.
Erratic, Often Negative Free Cash FlowFrequent negative FCF indicates capital spending or acquisitions outpacing operating cash, limiting amounts available for deleveraging or stable distributions. Persistent FCF shortfalls push reliance on debt or asset sales, raising long-term balance-sheet and payout sustainability risks.
Concentration In Office Assets And Revenue VolatilityHeavy focus on metropolitan office properties exposes cash flows to secular shifts (remote work, tenant demand cycles) and cyclical vacancy risk. The observed revenue swings reduce predictability of rental income and complicate long-term budgeting, leasing and capital planning.