0801 GMT - The merits of ESR-REIT's Australian acquisition are likely to outweigh the deal's associated funding risks, say DBS Group Research analysts in a note. The real-estate investment trust is buying five logistics assets in Melbourne for 276.8 million Australian dollars, they note. DBS says the deal will be funded in Singapore dollars, rather than Australian dollars, which reduces the natural hedge of the REIT's Australian portfolio to around 32% from 55%. The acquisition also increases ESR-REIT's exposure to foreign-exchange fluctuations. Still, the deal's funding structure should boost its initial distribution-per-unit accretion, they note. The assets likely provide attractive organic growth prospects as their leases have built-in rent-increase clauses, they add. DBS maintains its buy rating and S$3.20 target price. Units trade flat at S$2.34. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

July 08, 2026 04:01 ET (08:01 GMT)

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