Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from J. Habermann – Goldman Sachs.
Jonathan Habermann - Goldman Sachs
Jay, you walked through the existing balance sheet and sort of capital plans and you talked about the ability to cover the maturities through Q3 of 2011, which obviously sounds very, very good, but can you walk through just near-term capital plans in terms of development expenditures. How do you balance the decision to conserve cash and balance sheet strength at this point versus more opportunistic transactions, and then I guess further on to that is where do you need to see returns go in order for you to deploy capital again?
James F. Flaherty
With respect to development fundings, I mentioned, having placed in service the Genentech and the Amgen campuses either last quarter or in the next quarter or two, there's really not much of anything left with respect to required development fundings, Jay. So it's really a situation of what are the economics of any new perspective capital to be deployed.
I think you can see what we're doing here. We've been nibbling around the edges a little bit. We bought out the minority stake in the partnership we had with Tenant and that was at a 14.5% cash yield. We haven't closed it yet, but we're likely to buy out another minority stake in a senior housing community at a very attractive cap rate.
So I think I would describe us right now as kind of probing, nibbling around the edges trying to determine where we see value, but obviously our cost-to-capital has increased and you should expect that we will look to recoup that and then some with respect to the economics of any new transactions that we would move forward on.
Jonathan Habermann - Goldman Sachs
In terms of stepping back a minute though, the balance sheet where it is today do you need to see returns that would be 12%, 14% to sort of get you to deployed capital. Is that sort of what we need to see today?
James F. Flaherty
I'm not sure why it's relevant to the balance sheet. The balance sheet's in great shape. It's really a function of we're kind of probing here a little bit to see how good some deals we can get, what they're going to look like. I would think we would be at or above the metric you just suggested. Those are certainly where we're seeing opportunities right now, but again, we're in kind of a discovery mode here, probing a little bit, seeing where we can deploy some capital.
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