Lendlease Reit's stock fell 3.48% during intraday trading on Monday, as the market reacted to the company's recent capital raising activity.

The real estate investment trust announced the completion of a S$196.6 million preferential offering of 352.36 million new units at S$0.558 each. While valid acceptances covered 53.05% of the offering, the joint underwriters—DBS Bank, Oversea-Chinese Banking Corporation and United Overseas Bank—took up the remaining unsubscribed units to ensure full issuance.

Such equity offerings often create dilution concerns among existing investors and can put downward pressure on share prices, particularly when the offering price is set below the current market valuation. The new units are expected to begin trading later this week and will rank equally with existing units.