westfield gets key london project, page-3

I dont think it has too much to do with WDC intself per say or the announcement yesterday. There is much negativity in the genral equties market and in particular, REITS.

That said there are some fundamental issue yet to be resolved with westfield. They have a large U.S exposure, they may be paying distributions out of capital. They are highly geard (far more than the recessiion period of the early 90s)and ALL commercial property cap rates are rising including retail.

Lets also remember that the discretionary spending conponment of their retail is actually over 50% based on rental income.

All this isnt good but then add on the fact that this week they broke a key support level of $16.50 (before the announcement)

I suspect this stock is going to be very weak until such time as they report in for June 30. Then the market will be looking at how honestly they have valued their properties.