Elevated LeverageA debt-to-equity ratio of 1.24 represents elevated financial leverage for a REIT platform and constrains balance sheet flexibility. High leverage amplifies refinancing and interest rate risk, limits room for opportunistic acquisitions without additional capital, and increases sensitivity to cash flow shocks over the next several quarters.
Negative Free Cash Flow TrendA sharp TTM decline in free cash flow (negative and worsening) reduces internal funding for capex and development, heightens reliance on external financing or equity raises, and raises refinancing risk given current leverage. Persistent negative FCF can pressure liquidity and slow deleveraging or expansion plans.
Regulatory Uncertainty In MexicoEvolving tariff and policy conditions in Mexico introduce structural regulatory risk in a key growth market. Such uncertainty can alter cross-border logistics volumes, tenant cost structures and demand, and complicate underwriting of Mexican acquisitions, potentially delaying expected returns from the company’s expansion.