Meaningful LeverageNet leverage materially above parity increases refinancing and interest-rate sensitivity for a property developer. Sustained debt>equity constrains strategic options, elevates default and liquidity risks in downturns, and can force asset sales or curtailed investment during stress.
Highly Volatile Cash FlowsLarge swings in operating and free cash flow reflect project timing and working-capital swings typical in development. That unpredictability hampers reliable reinvestment, makes dividend planning harder, and raises the chance of liquidity shortfalls at the wrong point in a cycle.
Choppy Revenue And Compressed ProfitabilityTop-line inconsistency plus materially lower margins versus earlier peaks signal weakened pricing power or higher costs. Low single-digit net margins limit retained earnings, restrain ROE recovery, and reduce buffer against construction cost or demand shocks over the medium term.