Iwould caution you against going big here – please see my post...

Iwould caution you against going big here – please see my post from 14 monthsago on CLW and the risks.

Thesituation is playing out as I suggested it could - cap rate expansion, debt leveragevalue ratios rising & discounted capital raises to ensure debt covenantsare not breached.

Atcurrent prices, it’s implying a 6.2% cap rate which is not cheap relative to10yr treasures which are 4.3%.

CLWmanagement see this coming too and unless they get significant amount of assetsales off (which I view as unlikely as there is no bid at anywhere close tovaluations), there will be a capital raise in the next 12 months, likely less.

Furthermore,in an environment where long WALE and property assets generally have doubledand tripled over the last 5 years, CLW is trading below where it IPO’d. This isbecause these externally managed REIT’s are just FUM gatherers and make poor acquisitionsto harvest bigger fees. Even in good times, this wouldn’t be a good investmentand in bad times, is highly risky.