Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Quentin Velleley – Citigroup
[Manny] in for Quentin Velleley – Citigroup
It's actually [Manny] here with Quentin. In your opening comments, you mentioned that occupancy was going to drop in the third quarter and then kind of come back up in the fourth, anything specific to that?
Bob McCadden
Yes, I think it's just a matter of you have a typical seasonal fluctuation in occupancy, so typically it's slowest at this time of the year and it picks up again as we have more merchants opening for holiday period.
[Manny] in for Quentin Velleley – Citigroup
And then I think Joe just mentioned that there's been declining rent relief requests. Can you give us an idea of what kind of levels those have gotten to and where they are now?
Joe Coradino
I think just generally, well in the beginning, everybody who could was asking rent relief as a free-for-all. And as I think we, and others like us, began to sensibly consider the requests and be very selective about granting it. Time passed and now you're seeing more of a trickle at this point than the volume we saw previously. You can count on one hand the number of requests that I think have come through in the past 30 days, and you'd need your hands and feet previously.
[Manny] in for Quentin Velleley – Citigroup
Tell us your redevelopment pipelines. The yield to Cherry Hill fell again and now it's at 6.6%. Could you tell us what the cash yield is on that property, and also it looks like you guys will now provide a stabilization disclosure with that stabilization in 2011. Are you anticipating lower rents or weaker stabilized occupancy at that property as well?
Bob McCadden
Let me give you a little background in terms of how we've historically disclosed the incremental returns. When we first start a redevelopment project, as part of our annual budgeting process, we're typically doing a five year as-is forecast for the property and then we look at what the project looks like after the redevelopment dollars are expended and additional revenues are generated.
To compare the after redevelopment NOI to that before redevelopment NOI that increment becomes our revenue or net income which we then compare against our investment. What you would have now is the fact that the basic business, because of the economy and what's happening generally in the retail environment, we've not changed our baseline year. So what you're seeing in terms of the lower return is the fact that we have a general erosion in the baseline business.
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