CNSREIT-AR-2024 Final - Flipbook - Page 70
These trends result in reduced willingness by investment banks and other lenders to finance new investments and
deterioration of available terms. If the overall cost of borrowing increases, either by increases in the index rates or by
increases in lender spreads, the increased costs may result in future acquisitions generating lower overall economic returns
and potentially reducing future cash flow available for distribution. Disruptions in the debt markets negatively impact our
ability to borrow monies to finance the purchase of, or other activities related to, real estate assets. If we are unable to
borrow monies on terms and conditions that we find acceptable, we likely will have to reduce the number of properties we
can purchase, and the return on the properties we do purchase may be lower. In addition, we may find it difficult, costly or
impossible to refinance indebtedness that is maturing. Moreover, to the extent that such marketplace events are not
temporary, they could have an adverse impact on the availability of credit to businesses generally and could lead to an
overall weakening of the U.S. economy.
Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to
make distributions to our stockholders.
When providing financing, a lender may impose restrictions on us that affect our distribution and operating policies
and our ability to obtain additional loans. Loan documents we enter into may contain covenants that limit our ability to
further mortgage or dispose of the property or discontinue insurance coverage. In addition, loan documents may limit our
ability to enter into or terminate certain operating or lease agreements related to the property. Loan documents may also
require lender approval of certain actions and as a result of the lender9s failure to grant such approval, we may not be able
to take a course of action we deem most profitable. These or other limitations may adversely affect our flexibility and our
ability to make distributions to you and the value of your investment.
We entered into and may continue to enter into certain financing arrangements involving balloon payment obligations,
which may adversely affect our ability to make distributions to our stockholders.
Some of our financing arrangements may require us to make a lump-sum or
