Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Ki Bin Kim with Macquarie.
Ki Bin Kim – Macquarie
Hi, thank you. If you hit the low-end of your guidance, under your calculations, does that trip your debt covenant?
Bruce Duncan
No, in terms of -- if we hit within our guidance range, we do not trip our covenants.
Ki Bin Kim – Macquarie
Okay. So just hypothetically, could you just walk us through the process should you trip a covenant, let’s say, in 2010 when, I would guess, things get tougher? Can you just walk us through the process of what would happen?
Bruce Duncan
If you trip a covenant, you have a discussion with your lenders in terms of fixing that covenant or amending the covenant. So my guess is at the time that we think we are getting close, we will go to the lenders and try and restructure our deal.
Ki Bin Kim – Macquarie
Okay. And just a follow-up, has the general sentiment from lenders -- how has it changed from the past couple months? Do you find them lot more willing?
Bruce Duncan
I would say that we have a good relationship with our lenders. And I think if you look out in the marketplace, I think the banks to date have been very constructive and have been willing to roll things over and amend covenants. So I think they have been very constructive, and we would anticipate they would be constructive in our situation if and when we go visit them.
Ki Bin Kim – Macquarie
All right. Thanks.
Operator
Your next question comes from Cedrik Lachance with Green Street.
Cedrik Lachance – Green Street
Thank you. When you look at your ability to refinance your debt, where does equity issuance fit in the equation for you?
Bruce Duncan
I think in terms of equity issuance, it definitely plays a role. I think you have to look and see the market opportunity is for your stock and how it fits in. I think we have different arrows in our quiver. One is we’re -- only 87% of our assets are unencumbered. So we’ve got that arrow. And I think in terms of selling the assets -- and I think equity issuance is a possibility as well.
Cedrik Lachance – Green Street
Where does it rank versus selling assets?
Bruce Duncan
I think -- you know, it all depends in terms of where you are in the situation. Right now, in terms of liquidity in the marketplace, it’s difficult to sell assets at prices that we think make sense. I think that we’ve been very successful in the financing front and we think the market there is fairly liquid. And it is getting probably a little bit more liquid in the sense that some more lenders are coming into the market that weren’t in there in the first six months. So the -- and the rates are coming down a smidgen. So I think that’s a decent opportunity. And I think equity, you know, it all depends in terms of where your stock price is selling and where we are selling over the next few months.
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