I'd agree the selloff was due to capital raising (WDC and LLC)...

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.