Negative Free Cash Flow GrowthNegative free cash flow growth constrains the REIT's ability to fund capex, AEIs, or distributions from internal sources. Over several quarters this can force reliance on external financing or asset sales, raising execution risk and pressuring long-term distribution sustainability.
Declining Profitability MetricsA falling ROE and weaker net margin point to reduced profitability against shareholder equity, which may reflect cost pressures or lower effective yields. Persisting declines could limit retained earnings, slow portfolio improvement, and reduce long-term returns to unitholders.
Cash Flows Sensitive To Leasing And RatesThe REIT's distributable income depends structurally on occupancy and market rents plus financing costs. Prolonged vacancy, softer rents, or rising interest expenses directly reduce distributable cash and borrowing capacity, making distributions and growth sensitive to macro cycles.