Question-and-Answer Session
Operator
(Operator Instructions). Our first question will come from Jerry Doctrow - Stifel Nicolaus & Co.
Jerry Doctrow - Stifel Nicolaus & Co.
Doug I was wondering on the acquisitions and maybe some of the dispositions which I don’t think you touched on, if we can get a feel for the tap rates that the deals are being done on?
B. Douglas Whitman
On the acquisition side these are generally being done in the 8% range, some of them a little bit higher, 8% to 8.5%. On the dispositions, I’ll have to check on that and get back with you. I think they’re generally going to be around market, but I’d like to double check that for you.
Jerry Doctrow - Stifel Nicolaus & Co.
Market would be that 8% to 8.5% is what you’re thinking if this market fee stays?
B. Douglas Whitman
Yes.
Jerry Doctrow - Stifel Nicolaus & Co.
I think this has popped up before, but just wanted to get a little more color on the payout on the pension; I think that’s gone on for a couple of quarter, and maybe if you can just clarify the accounting treatment; I think like a million dollars was in G&A if I remember and then there is an additional charge in the cash flow which you have taken out of FAD, but if you can just clarify that and the background on it.
Scott W. Holmes
During the fourth quarter we reached an agreement for curtailment partial settlement of the pension plan which caps out the maximum amount of benefits to be paid out and the payment was scheduled for the first quarter and not in the fourth quarter and this goes back to IRS rules. So, the payment was actually made in the first quarter which does two things; one it affects pension expense for the quarter and for future quarter and then the other is that it gets recorded as a curtailment and partial settlement in the first quarter. So, what you will expect to see going forward is the pension expense will be reduced to a lower level, we’ll still have pension expense of course because pension plan is still in place and it still will provide benefits, but just a capped amount. The pension expense will be lower going forward and the payment occurred in January of this quarter.
Jerry Doctrow - Stifel Nicolaus & Co.
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