Question-and-Answer Session
Timothy P. Mihalick
The following questions have been submitted in advance by Carol Kemple – Hilliard Lyons and we will address those.
Carol Kemple - Hilliard Lyons [read by Tim Mihalick]
It looks like property management expense, as a percent of real estate revenues, went up. Is there a specific reason why?
Dianne K. Bryantt
As we stated earlier, included in the category of property management expense is where the management of debt to uncollectable rent along with accounting is held and as we talked about, Stevens Point and Fox River did have $417,000 combined write-offs during the quarter.
Carol Kemple - Hilliard Lyons [read by Tim Mihalick]
I know on previous calls you discussed moving toward internal property management. When should we start seeing a benefit on the income statement from that initiative?
Thomas A. Wentz, Jr.
Currently IRET is living in two worlds. We have external property management and internal property management, both of those are tracked on financial statements that are presented to the public together.
Internally we do track the property management separately to evaluate the performance and at this point the reasons that we are pursuing property management are being concerned by our internal monitoring and tracking. And until we are fully internally property managed, it is going to be difficult to present the individual results, or the results for that segment, on the public. But it is doing what we anticipated and we continue to move forward with it.
Carol Kemple - Hilliard Lyons [read by Tim Mihalick]
What is you outlook for acquisitions and disposition?
Timothy P. Mihalick
I believe we address that earlier.
Carol Kemple - Hilliard Lyons [read by Tim Mihalick]
Do you expect to slow down or cease development projects in the current environment and to what degree?
Timothy P. Mihalick
Again, that question was answered in the earlier delivery.
Carol Kemple - Hilliard Lyons [read by Tim Mihalick]
Have you renewed your two lines of credit yet that are due this month? How are rates looking? Did you notice any changes or challenges in the financing process that you had not seen before?
Timothy P. Mihalick
And again, we addressed those questions earlier.
Operator
(Operator Instruction) Your next question comes from David Scott - Investor Real Estate Trust, Trustee and Shareholder.
David Scott - Investor Real Estate Trust, Trustee and Shareholder
I would like to say that you guys have done a great job as far as being proactive on your debt and I think that is great.
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