Question-and-Answer Session
Operator instruction
Our first question comes from the line of Jonathan Litt with Citigroup. Please go ahead with your question.
Greg
Hi, it’s Greg (Srivastava) here with John. Could you comment on how you plan to fund these 300-400 million of acquisition obviously this year?
Kevin Habicht
Greg, we are looking at a variety of different portfolios. There are multiple opportunities out there in the market place and with carefully underwriting all of these, we are finding some good opportunities and we are yet to close most of these deal, and we will have to see what we close.
Greg
Do you have any sense on the timing for possible refinancing?
Kevin Habicht
I think if we are planning to do 300 to 400 million first quarter price and we see today should be just pick a percent, divide that number by four. There are couples of other deals that we are looking at right now, and at this stage, it's premature to say whether any of them will fall into the first quarter.
Craig Macnab
I think, if you look at our disposition for the year, which we mentioned were about 80 million from the core portfolio, if you layer in this net disposition, if you well from our TRS which will continue to see good activity there and selling those properties, I think it will be a net seller of properties in that entity, we looked at the moment to the tune of $50 to 70 million, we have about $40 million of retained earnings. So all of those things are somewhat self funding of acquisition, plus we do have the capacity and the balance sheet that allows us to add leverage if we so choose.
Greg
Okay, thanks. And then just on?.
Unidentified Analyst
Great, if I could just – if we think about the balance sheet capacity, you have about 300-400 million, but currently set from the credit facility. Now, should we expect an unsecured debt offering in the near future and how should we think about the pricing of that, because near term given where LIBOR is, there is going to be benefit from keeping a balance down the line?
Kevin Habicht
I think one of the things that we tried very hard to do is make sure, we got choices. There is no doubt about it, the spreads of treasuries, if we are to do a debt offering and I emphasize if, are much higher than they were the last time, we did a debt offering, but by the same token the treasury yields are much lower, so the actual cost if we were to do a debt offering is about the same. Right now LIBOR is clearly very inexpensive, but one of things, that we spend a great deal of time talking about internally and will continue to execute always to make sure we have access to a variety of different types of capital. So we are currently borrowing under our bank facility and we will see what happens based on our needs for capital as the year rolls out.
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