Question-and-Answer Session
Operator
(Operator Instructions) We’ll take our first question from Kristin O’Connor with Morgan Stanley.
Kristin O’Connor – Morgan Stanley
Just a question on the revenue guidance for 2008, what economic scenarios are you assuming underlying the 3 to 3.5% revenue growth?
David P. Stockert
The existing one that has a slower U.S. economy.
Kristin O’Connor – Morgan Stanley
So, no recession?
David P. Stockert
I would hate to say that we’re that precise.
Kristin O’Connor – Morgan Stanley
And if in 2008 we have a recession scenario like in 2001, what would 2009 growth look like in your minds?
David P. Stockert
I honestly don’t know. You’re asking a question I can’t – what is the depth of the recession? What is the length of the recession? What we don’t have today that we had the last time around was as much multi-family supply coming on. What we don’t also have that we had the last time around and maybe this will change is the movement of people from rentership to the home ownership. So I’d say things are different and what we would predict for 2009 is not something we’re able to do.
Kristin O’Connor – Morgan Stanley
Can you just talk a little bit about the Florida markets? It looks like they deteriorated a little more in 4Q07. What’s your outlook for those markets in 2008?
Thomas L. Wilkes
2008 those would range at the bottom end. Our range of guidance against the markets. They’re generally flat. They’re still working through the over supply issues in the primarily single-family vacancy in Tampa, in Orlando is about 6 to 7%. Given the fact that those single-family permits are down 50 to 60% we do anticipate that on a long-term basis they’ll still be very vibrant markets.
Kristin O’Connor – Morgan Stanley
Is that the competition from single-family rentals?
David P. Stockert
Yes. Significant portion of the single-family surplus is being put into the rental pool. There is very little multi-family rental competition coming into the market. Only 1.3% in Tampa. It’s slightly larger in Orlando at 3.4% but in both cases multi-family permit and as I mentioned single-family permitting is down.
Operator
Our next question comes from Lou Taylor with Deutsche Bank.
Louis W. Taylor – Deutsche Banc Alex Brown
David could you just talk about Q4 expenses in the same store pool and what drove some of the big changes this year over last year?
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