Question-and-Answer Session
Operator
(Operator Instructions). Your first comes from Dustin Pizzo – UBS
Dustin Pizzo – UBS
Dave, you talked about the third quarter of last year being the peak in revenues and based on the same store guidance, it looks like you're forecasting about a 5.8% decline in the fourth quarter, which would imply that the third quarter potentially represented the bottom. Is that a fair statement?
David P. Stockert
Well I don't know Dustin that – I don't know that I'd go so far as to say that. Certainly, again for 2008, the high revenue watermark for the third quarter of 2008, so the comparison gets a little better in the fourth quarter of 2009. 2010 is going to play out. It'll still be somewhat challenging because obviously the rent roll will be – will reflect the fact that rents have declined through 2009.
So I think as the supply starts to burn off over the course of 2010 and things get better, I think we will start to see things turn up over time.
Dustin Pizzo – UBS
Okay and then I guess just looking at 2010, what in your view is the probability that you might still lower effective rents further across your markets in the next six to nine months?
David P. Stockert
Well we haven't seen on new leases, we haven't seen a lot of change in effective rents over the course of this year. So the dynamic has simply been on renewals. We continue to renew people fairly flat. We'll turn over roughly half the portfolio this year, and so roughly half the portfolio turns over little to no decrease, the other half of the portfolios renewing down 10%, 12%.
But you will have some renewals that we did this year that may not renew next year and that's really I think the thing that we are keeping our eye on, not really the change in effective rents on new leases.
Dustin Pizzo – UBS
Okay and then just looking at the condo sales, can you talk about the details surrounding the bulk sale down at Mercer Square and specifically who the buyer was and if we should expect any FFO impact in the fourth quarter since it looks the pricing was 30%-ish lower on a per unit basis than the sales you closed in the third quarter, which it looked like were already at a slight loss.
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