Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jonathan Habermann - Goldman Sachs
Jonathan Habermann - Goldman Sachs
Could you comment at bit on just the government stimulus plan and obviously implications for what you think might be move outs to single family throughout the year.
Thomas Toomey
I think we’re going to learn a lot about this plan over the next week as everybody gets into dissecting it. Certainly a big part that we noticed was the $15,000 credit towards home ownership and I first I’m for anything that gets this economy started. In the long-term our business will be positively impacted if they get there. The $15,000 credit, if you take a median home price or you take any of the home prices in our markets let’s say, you give people $15,000 down, they’ve still got to come up with anywhere between probably $20 and $35,000 themselves and we think a lot of people, that’s going to be a hard thing to come up with these days to buy a home.
So I think its not going to be that visible to us initially out of the gate in 2009 but as the economy turns its probably going to be another threat to us in 2010. But again I think its going to be market by market, price point by price point, and I think in the future as the clarity is provided, we may put some more in our road show materials about the direct impact in our markets.
Jonathan Habermann - Goldman Sachs
Turning to guidance can you decipher a bit, the expectations for West Coast and specifically NOI growth for California. It sounds like the deterioration was more then expected quarter over quarter.
Jerry Davis
I would tell you Southern California, we would see Orange County as probably going to be negative 1% to negative 3% revenue growth. LA is probably going to be a hair worse then that, San Diego is looking to us, that it could be flat to slightly down. Inland Empire is going to be very bad, probably revenue growth of negative 5% to negative 6%. As you move up the Coast to Northern California we think San Francisco, San Jose, will be positive, slightly in maybe the 2% range.
And we think our Monterey portfolio is well positioned to perform well and could easily do 3% to 5% revenue growth.
- To read the full transcript on Seeking Alpha, click here »
