Question-and-Answer Session
(Operator Instructions) Your first question comes from Jordan Sadler – Keybanc Capital Markets.
Jordan Sadler – Keybanc Capital Markets
Congratulations on the credit rating this morning. I just wanted to follow up on that and inquire what do you think the leverage capacity or debt capacity is in terms of sort of an unsecured bonds slug in your cap structure would be given sort of that rating?
A. William Stein
I think the initial bond issuance would be about $250 million. Moodys has said that in terms of their general sort of BAA2 ratings anything under six times debt to EBITDA is a BAA2 rating. I think that we can accommodate $250 million easily and still have full use of the credit facility. We wouldn’t take the credit facility up to the max just because that would not be prudent but we could comfortably do I’d say easily half of the capacity maybe a little bit more plus the $250.
Jordan Sadler – Keybanc Capital Markets
I guess based on that you probably have about $800 million in capacity if you were to keep it under six times but you’d do less than that?
A. William Stein
Yes, if we keep it under six times, that’s right. The indenture covenants might trip before that because indenture covenants tend to be booked based rather than EBTIDA based. Our EBTIDA relative to book value is quite robust as you know.
Jordan Sadler – Keybanc Capital Markets
Given the new found capacity it seems like your maintaining the 2009 guidance which included a slug of acquisitions that you plugged in there and some that you announced this quarter. Can you maybe give us an update on acquisitions prospectively, what you’re seeing in the market.
Michael F. Foust
We are seeing a handful of opportunities as we had discussed earlier. Someone off opportunities from funds where maybe these assets are outliers and they’re looking to sell income producing properties to redeploy capital elsewhere or redeploy back to investors. So, we have a couple more investments that we expect to close, actually three more that we expect to close by the end of the year and we’re looking at other opportunities as well for 2010. There will be definitely more deployment of capital on an ongoing basis to the income producing acquisitions to compliment our leasing and development program.
Jordan Sadler – Keybanc Capital Markets
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