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Crombie Real Estate Investment Trust
Crombie Real Estate Investment Trust

Real estate / REIT


Risks
1. Interest Rate Risk: Crombie’s reliance on debt financing to purchase and operate properties can lead to increased borrowing costs if interest rates rise. This could significantly reduce cash flow and harm the value of Crombie’s properties.

2. Property Market Risk: The real estate world is subject to market fluctuations. Crombie’s properties may not retain their value due to changes in the market (or changes in zoning regulations), and this would put the company at risk.

3. Tenant Risk: Tenants can default on their lease agreements, which can hurt Crombie’s income and cash flow.

4. Reputational Risk: If Crombie fails to operate with integrity and transparency, it may attract negative media attention and negatively impact its reputation.

5. Financing Risk: Without sufficient external financing options, Crombie may be put at risk from not being able to acquire new properties or refinance existing properties.

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