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Risks
1. Interest Rate Risk: National Retail Properties' income may be affected by market interest rate movements. An increase in interest rates could raise borrowing costs and detract from profits.
2. Credit Risk: If one of the creditors or investors fails to meet its contractual obligation to National Retail Properties, the company may lose access to capital or face increased interest costs.
3. Refinancing Risk: Refinancing is not always successful and requires capital markets to be cooperative to achieve desired terms. If refinancing fails, the company will need to find alternative financing options.
4. Currency Risk: If the value of the US dollar weakens relative to other currencies, National Retail Properties may face increased costs associated with its debt-financing activities.
5. Financial Leverage Risk: National Retail Properties may lever too much debt to finance a project, leading to greater financial risk. Additionally, an increase in interest rates due to rising inflation levels may further reduce profitability.