Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Irwin Guzman - Citigroup.
Irwin Guzman - Citigroup
George, can you clarify something on this new store? It looked like you reported flat results for the third quarter but same-store occupancies were actually down over 300 basis points year-over-year. How did that work?
George J. Alburger, Jr.
If you look at page 9 of our supplemental information package, the basket of what’s in same-store kind of changes because of asset sales during the intervening quarters. It is down; it’s just not down quite that dramatically. I think it’s down 200 basis points. It’s down a full 2%. Basically what’s happening is we are losing occupancy; it’s down 2%; but we are getting rent bumps and our renewal and replacement leases are being signed at rental rate increases. So our decline in occupancy is basically being offset by increases in rents that we’re receiving.
Irwin Guzman - Citigroup
Can you clarify the development lease up that’s embedded in your guidance? Should we be assuming something on the lines of under 12 month leasing period or 18 months?
George J. Alburger, Jr.
It is a more refined budgeted lease up than just a standardized 12 month lease up. For instance, the deliveries in the fourth quarter are primarily going to have some leasing improvement but they will not be stabilized and they will to some extent burden if you will fourth quarter results.
William P. Hankowsky
Just to amplify George’s point, basically we’ve gone through every development project and looked at what we think it will take to lease them. Some of them we think will happen within our traditional 12-month period and some we think will take longer than that. That’s what’s embedded in the guidance.
Irwin Guzman - Citigroup
Bill, when you went through that, had you changed at all what you expected your yields to turn out?
William P. Hankowsky
Well, obviously what happens is to the degree it’s a longer period of time, there’s a little bit more expense to it and so it may have some impact but it has been much more about duration of leasing than it’s been about rent obtained. We still are I think on the whole I would say for that pipeline expecting the rents to roughly come in at what we programmed for them when we developed them.
Irwin Guzman - Citigroup
Rob talked a little bit about the 10 largest expirations next year and seven being that you’ve had some indication that they’re going to renew. What does the Top 10 represent of the total expirations for next year?
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