Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kevin Ellich – RBC Capital Markets.
Kevin Ellich – RBC Capital Markets
Just wondering there's been a lot of activity going on and I was just wondering how does the pipeline look now? Are you still seeing good opportunities and Dave I missed one of the comments that you made right at the end there about cap rates. I was wondering if you could go over that again.
Dave Hegarty
As far as opportunities we're seeing out there, the volume of opportunities we're seeing has slowed down. I think what people have decided to do is there were people motivated to close on transactions before yearend and so that window is quickly closing. We are not seeing many transactions right now rushing to close before yearend.
Those people I believe are going to wait until now January to market other properties. So, I think it's a little bit quiet right now. We are still seeing several one-offs and a couple small portfolios and so on, so there are still some opportunities to consider out there.
Cap rates have moved up. It's a little challenging to discuss the cap rates in a sense because for the REIT we've been charging historically about 8% for our initial rental rate and I referred to the fact that I expect our initial rental rates required to go up another 25 to 50 basis points on future transactions in the senior living space.
When people buy a property outright for ownership of the real estate and the operations, those cap rates are now more in the 9 to 10% range for independent assisted living and obviously higher for skilled nursing and we have not pursued skilled nursing at all. In the medical office buildings are similar we're seeing some transactions out there. I think the rush for yearend transactions has slowed down and now people are waiting until the beginning of the year to put properties on the market again.
Kevin Ellich – RBC Capital Markets
Rick, I don't know if you could address this but I was wondering if any of your debt is callable. I see the fixed rate unsecured notes the interest rates are a little bit higher than the other debt, any opportunities on that front?
Rick Doyle
We don’t have any of our debts recallable and it won't be callable for another couple of years, 2012.
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