Elevated inflation and higher interest rates pose risks to rental income and tenant payment ability. Potential project cost overruns, delays, or project failures are possible. Competition for acquisitions could drive up prices. Economic downturns, tenant bankruptcies, and lease expirations with unfavorable renewals are also risks. Financial covenants and potential defaults on debt obligations could limit operations and negatively impact share value. Natural disasters, climate change, and public health crises could exacerbate these risks.
Financial Upside
Strong retail demand in targeted markets, high occupancy rates (94%), and lease rollovers with 11-14% rental increases suggest potential for continued revenue growth. Property acquisitions and redevelopments, along with new lease signings, are expected to contribute to earnings growth. The company's access to capital markets and revolving credit facility provides flexibility for future investments and operations. Successful property sales and gains on sale can also contribute to positive financial results.
