I'm trying to avoid get into an argument but there are more...

I'm trying to avoid get into an argument but there are more variables than prevailing or future interest rates. While your reasoning is sound re future higher interest on current debt (and most companies and REIT's run gearing around 30%) you forget about rent increases. Rent increases and reviews occur usually annually and are either at CPI or 3% but at lease expiry these are adjusted to market rate. Without going into the maths I believe this should easily absorb the extra interest expense. Remember the gearing is less than 30% whereas rent increases are on the whole property. DXI has shown itself willing to reduce debt by selling down the portfolio and any development that is planned will certainly make allowances for prevailing interest expense.