Question-and-Answer Session
Thank you. [Operator Instructions]. Thank you. Your first question is coming from J. Habermann with Goldman Sachs.
Jonathan Habermann - Goldman Sachs
Hey, good morning guys. Ron, just to start on the last point you mentioned there in your comments about the cash on balance sheet, and you mentioned pricing getting a little bit more favorable. I missed wondering what you are seeing so far. How much more of a changing cap rates do you need to see, and I guess ultimately if you don't see much of a change in cap rates, do you think you do more share repurchase, and I guess as well, are you starting to see some sellers come to you with any sort of refinancing issues, the potential sellers?
Ronald L. Havner, Jr. - Vice Chairman, Chief Executive Officer and President
Well J, there is whole variety of things that we're seeing in the market. There're some people that have refinancing issues. So you have to take a look at those portfolios and say, what is the loan-to-value relationship? Are the properties over levered, because in some cases people they are buying a product, with very creative financing, resulting and frankly today there is no equity in the deal, because the financing was so favorable. We're seeing an increase, as I said in reverse inquiries where people that we've been in touch with over the last year or so, are starting to call back, transactions have not closed, or they've decided that they want to sell and they realize that the market has changed. That doesn't mean that their expectations have comeback to a kind of back down to earth, they're still in kind of '07 pricing. But, at least they're talking and they're interested in a transaction.
Share repurchases are really dependent on what are the alternative uses of capital; in terms of what are the opportunities before at any particular time and the price of the shares, and that really drives the share repurchases. Keep in mind with the $800 million, as John Reyes touched on, we still have a commitment to Shurgard Europe up to loan and back ?300 million or ?350 million, which is close to $500 million. So over half of that money is indirectly kind of committed to the Shurgard Europe operation at least until we have some resolution on the joint ventures over there.
Jonathan Habermann - Goldman Sachs
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