This excerpt taken from the DRE 8-K filed Jan 30, 2006.
Yes, good afternoon. Just a quick question, a follow-up on the Winkler transaction. Can you talk a little bit more about the integration process? Im assuming youre absorbing some of the Winkler headcount and what do you I think you said that G&A is going to be the same. Can you just talk me through that?
Sure. We will be hiring hopefully a significant number of the Winkler associates that were there. Just again, a little bit more background on Winkler, they are obviously a private company in the DC, northern Virginia area, and they own not only the commercial, if you will, the office and industrial portfolio, they also own some residential properties in the area that are also being sold and not to us, to another buyer. So we will be taking on the folks from the Company that are involved in the office and industrial leasing and development area.
And when you look at that overhead, I guess the way we look at overhead, some of it the way we take our overhead, and we show this in the supplemental package every quarter, it is allocated to different places. And some of it ends up in G&A. But some of it gets allocated to the properties, or the property managers, as a property operating expense. The development, some of that gets that overhead gets allocated to the development process. Some of the leasing, the costs get allocated to leasing commissions, and deferred costs. So our belief is that with this transaction, those folks will be very productive, and wont be overhead like me, so they wont fall to the G&A. They will be involved in the process. And we dont see our G&A increasing much at all, as a result of that transaction.