Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Jay Habermann with Goldman Sachs. Please proceed.
Jay Habermann – Goldman Sachs & Co.
Hi Don and Andy good morning.
Don Wood
Hi Jay.
Andy Blocher
Hi Jay.
Jay Habermann – Goldman Sachs & Co.
Don you mentioned obviously the development you know still willingness to move forward, can you give us a sense of how you might reassess just given where yields are or might pencil out in this market, the challenges of leasing and obviously as you think about just alternative uses of capital at this point, it sounds like conserving cash and certainly focusing on near-term maturities?
Don Wood
Yes and that is really fair, you know, sometimes it is better to be lucky than good and in the case of those three big developments that we have, we are lucky in that we don’t have to make that decision today Jay because I mean, gosh, it applies to acquisitions never mind harder development, but trying to figure out where rental rates are going to be for retail, residential, office, what the demand will be is really impossible to do right now. And so if we were at a go, no go decision on any of those things right now, I think the answer would be we are not going to break ground. We are not in that point in any of those things and we are in each of them at Assembly, certainly at Mid-Pike and Bala, each one of them we made – we are making terrific progress in terms of that whole entitlement phase and the whole trick is to create land value there that will allow us to attract partners. To allow us to sell residential or office entitlement rates to allow us to do the retail ourselves or maybe to look at a joint venture partner for the whole thing, but the only way those things are going to work is if those potential partners see some value in the project. So, everything we are doing right now in spending the cash that we are spending is really all about getting through the entitlement process getting the basic grid and infrastructure laid to put us in a position where I can give you a much better answer on the viability of value creation in the future. But today, I don’t think I could do a very good job of telling you that there is absolutely a deal there. We certainly believe that if you are going to – you look and you say do you think we have a deal or do you not, we absolutely believe that there is a very good chance that we will, but having that underwrite that today it is just too early.
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