Suntec REIT buying an office tower in Australia

News of Suntec REIT acquiring an prime office tower to be developed in Australia for A$413.2 million cause the share price to drop ~2% on last friday.

A further 1-5% may be expected to drop next monday as this stock as the debt ratio nears 40%.

Although this acquisition is expected to generate more returns for unit holders, in the short term, will affect the group's net income as acquisition costs will be funded by borrowings. Coupon payments will be issued to unit holders during the construction phase of the tower to mitigate lower DPU.

Source: http://www.channelnewsasia.com/news/business/singapore/suntec-reit-acquiring/888214.html