CNSREIT-AR-2024 Final - Flipbook - Page 54
The operating and financial risks of issuers and the underlying default risk across capital structures may adversely
affect our results of operations and financial condition.
Our securities investments involve credit or default risk, which is the risk that an issuer or borrower will be unable to
make principal and interest payments on its outstanding debt when due. The risk of default and losses on real estate debt
instruments will be affected by a number of factors, including global, regional and local economic conditions, interest rates,
the commercial real estate market in general, an issuer9s equity and the financial circumstances of the issuer, as well as
general economic conditions. Such default risk will be heightened to the extent we make relatively junior investments in an
issuer9s capital structure since such investments are structurally subordinate to more senior tranches in such issuer9s capital
structure, and our overall returns would be adversely affected to the extent one or more issuers is unable to meet its debt
payment obligations when due. To the extent we hold an equity or
