Question-and-Answer Session
Operator
Your first question comes from Ambika Goel - Citigroup.
Ambika Goel - Citigroup
I just wanted to get an overview of what you are seeing the robust deal flow for 2008, what kind of deals are they? One of your peers had commented that they're actually seeing transaction volume potentially slow because M&A activity has slowed in the back half of the year.
Craig Macnab
Well for sure the amount of capital rushing into deals is less than it was. Having said that, there continues to be plenty of capital on the sidelines and deal flow ebbs and flows. The fact of the matter, really one of the strengths of our business model, is that we are only acquiring a small percentage of the deals that we take a look at. There are more than enough deals out there in the market and we're going to get our share of them.
In 2008, as Kevin mentioned, we're looking at acquisition volume of $300 million to $400 million. That's considerably less than we will acquire this year. Looking at the deal flow we're currently seeing, it's promising.
Ambika Goel - Citigroup
If you could give some color on that deal flow, is that M&A activity that you expect to happen early next year or is that just companies looking to get real estate off their books?
Craig Macnab
Ambika, it is a balance of both. As you know, we've worked hard over the last couple of years to build preferred relationships with a variety of growing retailers that use sale and leasebacks to finance their growth, so we've got a portion of that. Secondly, there is some M&A activity that right now we're participating in.
Ambika Goel - Citigroup
Could you give the cap rates on the theaters that you acquired?
Craig Macnab
We are not giving out information on properties individually.
Ambika Goel - Citigroup
Were the cap rates on the theaters in line with the portfolio average?
Craig Macnab
Absolutely.
Ambika Goel - Citigroup
What should we expect for the cap rates for the acquisitions and dispositions in 2008 guidance?
Kevin Habicht
I think next year we are indicating that acquisitions we're penciling in somewhere in the 8.5 range, again trying to move those higher, and we think the dispositions will be 100 basis points south of that number, so the spread's still attractive for capital recycling.
Operator
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