Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Brad Ludington - KeyBanc Capital Markets.
Brad Ludington - KeyBanc Capital Markets
I wanted to ask just kind of a house cleaning question. On the interest rate swap liability is your nominal amount going down here in May, is there anything that will flow through on the interest line related to an adjustment for that?
Sandra Brophy Cochran
No.
Brad Ludington - KeyBanc Capital Markets
When you look at the labor line, it is good to see in the fourth quarter I think you said you are expecting less pressure from the health plan but can you comment on what you think the minimum wage increase could do going beyond that? I guess beyond July and August?
Michael Woodhouse
We’ll be talking about next year in our next conference call and providing guidance. I think we would prefer to keep our remarks right now to what is going on in the third and fourth quarters. As we said, wage inflation is running about 1% which we think is pretty good. We have some focus on hiring wages so that in this difficult environment we are, if you will, taking advantage of that situation by making certain that we are not over paying on the front end as we hire people which then helps manage our overall labor costs as we go forward.
Brad Ludington - KeyBanc Capital Markets
Given that the development is done for the year should we expect the lower absolute dollars on the G&A line to continue in the fourth quarter?
Michael Woodhouse
We are guiding to I think flat G&A for the year.
Sandra Brophy Cochran
Yes, flat for the year but directionally we should see some improvement in the fourth quarter.
Operator
The next question comes from Robert Derrington – Morgan, Keegan & Co.
Robert Derrington – Morgan, Keegan & Co.
A couple of again laundry list questions. I am not sure whether Sandy or Mike is the one to ask, if you could help me clarify on the sale/leaseback you talk about net proceeds of $53-54 million. I thought last conference call we were talking about net proceeds of $55-60 million.
Michael Woodhouse
Since I was on the last conference call let me start this. That is true. I think it is also fair to say that the commercial real estate market has been heading down for some period of time and we are, I think and I believe we have a very good couple of good deals here. They are not done yet but very close. Given the market environment we are very, very pleased with the outcome.
- To read the full transcript on Seeking Alpha, click here »
