in breach of covenant?, page-7

I'd agree the selloff was due to capital raising (WDC and LLC) but it distroyed confidence in the sector. witness the panic yesterday afternoon. Index was down 14% at one point. (yes WDC was a big part of that)

But a lot of REITs dropped 15-20% on Tuesday due WDC captial raising and then followed WDC down another 15% yesterday.

Given that WDC was paying a large dividend and it went ex div yesterday that can probably account for 10% of the drop in WDC alone.

The crappy nature of the Cap raising documentation from WDC indicates it was a quick move - either to take advantage of the rate drop jump in the market or to raise cash for a quick opportunity to purchase something.

I'd put money that they will buy something in the ~500 million range in the next week but I've done my play money on the rest of the REIT sector.