Dexus Property has upgraded its 2014 earnings guidance by 7 per cent based on its share buyback program and the rise in value of its direct investment in takeover target Commonwealth Property Office Fund.

The diversified group said its funds-from-operations guidance for the 2014 financial year had increased from 8.15¢ to 8.29¢ per stapled security, compared with the 7.75¢ paid for the 2013 year.

Dexus has an interest in 14.9 per cent of CPA and has made a share and cash offer equal to $1.24 per CPA unit, which included CPA's 3.5¢ interim distribution.

Following the Dexus offer, GPT Group made a counter bid for CPA at an equivalent of $1.27 without distributions. However, GPT's share price has declined since the offer was made in November and at its current price of $3.40, makes the CPA offer equal to $1.23.

Analysts said with the current selloff in the REIT sector, Dexus may not have to offer any more sweeteners to make its bid more attractive than GPT's.

One said GPT's gearing would rise if it was successful and that given Dexus has said it won't accept the bid, GPT would have to deal with a hostile shareholder and not reach 100 per cent ownership.

In response, GPT's bidder statement says it had the strategic and financial capability to manage the range of scenarios that may arise under the offer, should it not reach the 90 per cent acceptance level.

But the document added that if ''CPA unitholders do not accept the offer there is a risk that their investment in CPA may be [affected] because the price of CPA may fall, or they may become minority unitholders in a less liquid investment''.