Weakened Cash ConversionOperating and free cash flow lagging reported earnings indicates timing differences, working-capital sensitivity, or non-cash accounting items. Durable reliance on accrual profits rather than cash can constrain funding for development, dividends or unexpected outlays and increases dependence on capital markets when cash is uneven.
Elevated Leverage And Interest-cost SensitivityA materially levered position creates structural interest-rate and refinancing risk, especially if rates rise or credit spreads widen. Higher interest costs compress FFO and limit the pace of development or buybacks. Even with secured‑debt removal, net leverage sustains sensitivity to macro financing conditions.
Portfolio Occupancy Moderation And Tenant RotationOccupancy softness and tenant rotation signal cyclical leasing challenges and localized market risk. Lower effective occupancy reduces immediate rental cashflows and can extend leasing timelines and concessions, pressuring near-term cash generation and making growth reliant on sustained leasing activity.