Steep Revenue DeclineAn acute drop in revenue undermines scale economics and the ability to cover fixed property-level costs. Persistent revenue contraction erodes rental income base, complicates lease roll strategies and limits capacity to invest in maintenance or growth, raising long-term performance risk.
Negative Operating And Free Cash FlowConsistently negative operating and free cash flow signal weak cash generation from core assets, forcing dependence on external financing or asset sales. This constrains liquidity, limits reinvestment in properties, and increases vulnerability to rising interest rates or funding stress.
High Leverage And Weak Equity PositionElevated liabilities and negative/low equity amplify refinancing and solvency risk, reducing financial flexibility. High leverage limits ability to pursue new projects or absorb vacancies, and increases the impact of rate shocks or asset value declines on long-term viability.