While quashing speculation that it may walk away from the trophy property three weeks from now, Trizec Properties instead is putting the 3.5-million-sf assets on its books at $774 million, Callahan says in a conference call Friday, while adding a corresponding debt load of $750 billion. Most recently, Sears Tower was appraised at $826 million, 9% less than a 2001 estimate of its value and just 6% more than the debt on the property.

"As things currently stand, the property will contribute six cents per share" to 2003 funds from operations, says Callahan, whose REIT's expected range of $1.72 to $1.82 was below Wall Street analysts' estimates.

Still unsettled, though, is terrorism insurance, despite President George W. Bush's signature on the Terrorism Risk Insurance Act of 2002. However, Callahan expects the terrorism bill to be factored into quotes from insurance companies, and says lenders have agreed to exclude Sears Tower from loan covenants.