The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: William Andrew Crow - Raymond James & Associates, Inc., Research Division - Analyst
: Jon, one for you, and then I'll turn to Ray for a second. But on the cap rates that you used in your NAV calculation, I was intrigued by the cap rates
in the 2s I think in San Francisco and then what I thought were low cap rates in Portland and Washington, D.C. And I get it, there's not much NOI,
and I also remember some, to put in rates terms, what, 45 or so conference calls ago when you were buying in San Francis, the low 2s. My question
I guess is, if you didn't have a desire to pay down debt, if you didn't have a desire to buy back stock, would you be buying assets at 2 cap rate in
San Francisco today?
Question: William Andrew Crow - Raymond James & Associates, Inc., Research Division - Analyst
: Yes. I appreciate that insight, Jon. 2 quickies, I hope. Ray, I'd like to get your thoughts on BI. Third quarter was higher than we would have guessed
from, in your guidance at least, from a seasonal perspective. And then so I'm wondering what the fourth quarter looks like, if you can give us an
idea, and then what would be kind of thought to be left over for next year? And then the second quick question, hopefully is, you're wrapping up
this massive strategic repositioning program, but you are kind of 7 years, almost 7 years into it. I'm wondering if we're going to start to see a new
cycle begin? Or do we actually have an extended period of time with no renovation disruptions?
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