Question-and-Answer Session
Operator
(Operator instructions) We are taking our first question from Donald Hooker from UBS.
Donald Hooker – UBS
Hi, good afternoon. I also should have taken note here from you comments, but did you mention kind of an average cost of debt? (inaudible).
Granger Cobb
Yes, we got the question, say, operator?
Operator
Yes.
Granger Cobb
We have some background calls coming through. Is that distracting anybody else or is it just through us?
Operator
We heard (inaudible) trying to isolate the problem.
Granger Cobb
Thank you. I am sorry, go ahead, Don.
Donald Hooker – UBS
Yes, I have sort of taken note here. I don’t know if you mentioned it on the – in your prepared commentary. Did you mention your average cost of debt with all the new debt pieces out there?
Ray Brandstrom
We did not and I actually don’t have that exact number, but probably more recent debt has been coming in at 6.25% to 6.5%.
Donald Hooker – UBS
Okay. Got you. And then in terms of – I guess looking at the – can you give any update on the Blackstone joint venture because it’s hard to see that through your consolidated financials? Is that improving still?
Granger Cobb
I think that’s a good assessment. We are pleased with the progress in occupancy and the rate development. I’d say generally that’s progressing very nicely.
Donald Hooker – UBS
Okay. Actually let me jump back on queue. Thank you.
Granger Cobb
Okay, thank you, Don.
Operator
We will take the next question from Mark Biffert from Oppenheimer.
Mark Biffert – Oppenheimer
Good afternoon guys. First question is related to the actuarial adjustment. As you look into 2010, can you talk about what your outlook is for operating expenses, excluding – and I know you adjust your estimates in 2009 based on what your experiences have been this last year?
Ray Brandstrom
We didn’t give any guidance on expenses. I think that we are optimistic that we are going to be able to control expenses. Our goal has always been to have expenses run at a point to point and a half below rate increases and we accomplished that even this past year when we saw some inflation in the more commodity areas in second and third quarter. We have seen that soften in the fourth quarter and this quarter so we expect that we won't see a reoccurrence of that and we do expect some utility softening in the year. So, we are just generally on cost control, we are pretty optimistic.
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