- High leverage makes it more difficult for GOV to become a competitive buyer.
- The Fresno deal is over 500,000 sq. ft. (3.1% of revenue) and could be very difficult for GOV to re-lease.
- GOV's occupancy is falling and the share price (overhang) will make it difficult for GOV to maintain a competitive cost of capital.
- The dividend is not safe and is clearly suggesting it’s a “sucker yield”.