The current REA Fact Sheet lists Westferry Circus (UK) as the REA's 5th largest single holding with 2.5% of total investments. In itself this is not an overly large holding. What it demonstrates that the problem is international and that is not surprising. That commercial property values are currently declining is undoubtedly true. How far how fast remains to be seen.

I would think the bigger problem would be in the malls it purchased as a joint venture in the past year. This is the Account's single largest holding and it accounts for 5.4% of its total investments.  

Could the current conditions/trend generate a negative quarter? I would not think so for this quarter; for Q1 of 2008, possibly. But I would think that is unlikely as the income from leases should be quite stable. Such a decline has not occurred in the 10 plus years of the Account's existence but one should never say never. Given the 13.75% return for the current year, and its past performance, I will defer any judgment right now.

Ray