Q4 2019 Earnings Call
Ladies and gentlemen, today's conference is scheduled to begin shortly please come James standby. Thank you for your patience.
[music].
Right to opportunity that's styles in like <unk> fourth quarter and year end conference call.
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Following the company's prepared comments to call will be opened up for questions.
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No I would like to introduce Stuart Tanz companies Chief Executive Officer.
Thank you and good morning, everyone.
Here with me today is Michael Haines, our Chief Financial Officer, and Rich Schoebel, our Chief operating officer.
We're pleased to report that during 2019, we successfully advanced our business on a number of important for us.
First indicative of the ongoing strong fundamentals across our core West coast markets. We again achieved excellent results with property operations and leasing.
For the sixth consecutive year, we maintained our portfolio lease rate above 97%. In fact, we finished off the decade, achieving a new record high your ran lease rate of 97.9%.
Additionally, we again posted very strong releasing rent growth, including a 32.8% increase on new leases signed during 2019, which is the second highest increased on record for us dating back to 2015, when we achieved a 40% increase.
We also continued to post consistently strong growth on renewal.
2015, we've achieved renewal rent growth consistently in the 9% to 10% range on average, including a 9.7% increase in 2019.
Perhaps most important or most telling in terms of the appeal of our shopping centers and the strength of our team is our ability to consistently grown that offering income each year.
In fact for the eight you're in a row dating back to 2012, and we commenced reporting property statistics, we have grown same center NOI, each and every year, including a solid 3.6% increase in 2019.
[noise], while achieving strong results with property operations. We also made excellent progress during 2019 with our initiatives aimed at enhancing the long term competitive strengthened intrinsic value of our business.
One of our key initiatives as disposing of non core properties that are no longer strategic fit within our core portfolio.
A year ago at this time, we stated that our goal for 2019 was to sell 50 million of noncore properties. We're pleased to report that we surpassed 50 million goal selling that totaled 74 million of noncore properties in 2019.
Along with making good headway with property dispositions. During 2019, we also made steady progress with our strategic Densification program.
In 2019 or first Densification project was completed at our Crossroads shopping center in Seattle.
You may recall, we ground leased to know personal to a leading senior living developer, who built 185 unit multifamily senior living community at Crossroads.
With the project completed an opened in late 2019, we commenced receiving ground rent starting 2020, we will also be receiving retail rent as well from the street level shop space that is part of the development.
In total the project will add about $385000 of annual incremental revenue at crossroads.
In addition to the first project being completed in 2019, we again pursue the entitlement entitlement process on three additional densification projects.
The most advanced to the three is another multifamily development at Crossroads, where this time, we'll be adding over 200 apartments in about 15000 square feet of retail space.
We are close to finalizing the entitlement package with the city, which once completed should put us back on track to break ground on the project by yearend.
Additionally, in terms of growing demand for multifamily in Bellevue, Amazon recently announced that it will be dramatically increasing its workforce in Bellevue, adding 15000 employees once its new 43 storey office towers completed.
With respect to the other two densification products that we started working on 2019. We're currently in the midst of discussions with Citi planners working to fully defined the scope of each development generally speaking each project as currently contemplated involves adding between a 120 in 170 apartments, along with 10.
15000 square feet of retail space.
Given the progress that we're making with Citi planners. We currently expect a complete entitlement process on each project by yearend.
Which could put us in a position to break ground on both products and 2021.
Lastly, during 2019, we continue to strengthen our financial position.
Realizing proceeds from property sales as well as proceeds from issuing equity we paid down debt.
We also extending debt maturities such that currently we have known mean you feel that maturing for approximately the next four years beyond that our debt maturities are well laddered.
Now I'll turn the call over to Michael Haines to take you through the specifics of our balance sheet initiatives and our financial results for 2019, Mike.
Thanks, Stuart starting with our financial results for the year ended December 31st 2019, GAAP operating income increased 215 million as compared to 109 million in GAAP operating income for 2018 with respect to net operating income on a same center cash basis for the full year 2019, and NOI increased 200 and.
84 million as compared to 188 million for 2018, representing a 3.6% increase on a year over year basis.
Same center NOI for the fourth quarter increased by 3.5% over the fourth quarter 2018.
With respect to GAAP net income attributable to common shareholders for the year ended December 30, Onest 2019, GAAP net income was 48.8 million 42 cents per diluted share as compared to GAAP net income of 42.7 million were 38 cents per diluted share for 2018.
For the fourth quarter 2019, the company had GAAP net income of 10.2 million equating to nine cents per diluted share as compared to GAAP net income of 10.5 million or nine cents per literature for the fourth quarter 2018.
In terms of funds from operations for the full year 2019, Oh was 138 million or $1.10 per diluted share as compared to AFFO of 142 million dollar 14 per diluted share for 2018 for the fourth quarter 2019, AFFO totaled 35.3 million or 28 cents per diluted share as compared to <unk>.
It is 6.5 million for the fourth quarter 2018, or 29 cents for good mature.
Notwithstanding achieving same center NOI growth driven by another year of strong property operations and leasing as Stuart highlighted natural results for 2019 were impacted but a loss of income from the noncore properties were sold during the year. Additionally per share results were impacted by the common shares the reissue during 2019.
While short term results were impacted by utilizing proceeds from property sales and equity issuance to retire debt in 2019, we strengthened our long term financial position, which was one of our key objectives for 2019, specifically during 2019, we issued approximately 1.9 million shares of common stock raising $34.2 million over the course of the.
Sure.
You should all the stock through our ATM program, where we were able to keep issuance cost to a minimal as a result from the equity issuance in property sales. During 2019, we reduced the amount that we had outstanding I $72.6 million in total.
Another important goal for us in 2019 was to continue to limit our floating rate exposure you may recall that back in 2017, we took steps to lower our floating rate debt significantly, bringing it down to only about 10% over overall debt, which we successfully maintained in 2018 2019, we lowered it even further finishing the year with only 6% ever doubling.
Holding right.
In addition to maintaining a minimal amount of floating rate debt. During 2019. We also maintained our solid interest coverage, finishing the year 3.4 times and we continue to maintain our large pool of unencumbered properties.
The yearend 84 over 88 shopping centers were unencumbered equating to 95% never told you a light.
Importantly in the fourth quarter, we amended the terms of or unsecured credit facility extending maturity date out to four years from now.
We lowered the borrowing spread down to just 0.9%.
Additionally, we also amended the terms of Rthree hundred million Unsecure terminal extending the maturity that up to five years from now on we lowered the borrowing spread down to 1%.
As a result of extending the maturity dates only problem on the term loan. We now have no debt maturing this year no debt maturing in 2021, and only two small mortgages maturing in 2022 looking out beyond that our debt maturity schedules well laddered.
Lastly in terms of RF AFFO guidance for 2020, we currently expect AFFO to be between $1.90 to $1.13 <unk> per diluted share for the full year 2020 alone or the range assumes approximately 40 million of dispositions and another 50 million in equity issuance proceeds with a 90 million to total capital utilized pay down debt by another 50 million.
And to acquire 40 millennium, New shopping centers, a high end of the range assumes 75 million dispositions and 75 million an equity proceeds the casualty lines to pay down 50 million of debt and took part 100 million of new shopping centers in terms of same center NOI growth, we expect it to be between two or 3% on a year over year basis also our efforts.
Guidance takes into account Fas one for on a revenue reduction of approximately $3 million in 2020 equating to about two cents a share now I'll turn the call over to rich discuss property operations rich. Thanks, Mike as Stuart highlighted we had another highly successful year with property operations and leasing.
In fact 2019 proved to be one of our best.
Starting with our leasing statistics, we began the year with the portfolio lease rate of 97.7% and with only a modest amount of space scheduled to expire in 2019 totaling 690000 square feet, which was about 7% of our total portfolio.
Notwithstanding being essentially fully leased with not a lot of lease rollover. We went to work as we always do seeking out every opportunity to improve tendencies across our portfolio and capitalize on the strong demand for space.
And our hard work again produced excellent results.
In total we leased approximately two times the space that was originally scheduled to expire and we increased our portfolio lease rate to a new all time year end high 97.9%.
Specifically during 2019, we executed 375 leases totaling approximately 1.4 million square feet for the year.
Not only did we lease a near record amount of space for the company. We also achieved very strong rent growth.
Specifically, we signed a 130 new leases during 2019.
Rolling 463000 square feet.
And as Stuart noted the rent growth that we achieved this year, 32.8% was among the highest on record for the company.
In terms of renewal activity, we renewed 245 leases during 2019 totaling 920000 square feet and we achieved a solid 9.7% increase in cash based Ram.
Looking at our leasing activity in the fourth quarter, we signed 39, new leases totaling 170000 square feet, achieving a 34.1% increase in same space cash based friends.
And we renewed 51 leases totaling 201000 square feet, achieving a 6.2% increase in rent.
Overall, our strong leasing results in 2019 are indicative of how we constantly worker tenant base seeking out every opportunity to improve tendencies grow rent and enhance the underlying value of our portfolio.
Just to highlight a few examples during the year, we recaptured two underperforming anchor spaces at a couple of our centers in the Seattle market.
Replaces the old tenants would knew very strong and growing retailers in the daily necessity in destination sector.
In both cases, we doubled the rent.
Additionally, at one of our centers in the San Francisco market, we were approached by a strong national anchor retailer about leasing space. However, our property was virtually full would know anchor expirations insight.
But rather than turned them away, we went to work creatively maneuvering inline tenants as well as recapturing several underperforming in mind spaces to create a new prime anchor space and this new anchor tenant is now generating a lot of retail interests such that we're embarking on a comprehensive remerchandising of the inline space at the property.
With respect to the economic spread between building lease space at the end of third quarter of 2090 in the spreads stood at 2.6% representing $5.9 million of additional incremental annual base rent on a cash basis.
During the fourth quarter tenants, representing 2.2 million of the 5.9 million took occupancy and commenced paying rent of which $222000. If that was reflected in our fourth quarter cash flow.
Taking into account those new tenants it took occupancy during the fourth quarter together with the new leasing activity during the quarter as of December 30, Onest 2019, the economic spreads stood at 3.4% representing $6.5 million, an additional incremental annual base rent on a cash basis.
Turning now to 2020, we currently have 595000 square feet of space scheduled to expire this year, including five anchor leases totaling 174000 square feet.
Two of those five anchor tenants just exercise the renewal option for another five years.
With respect to two of the anchor leases were currently negotiating new leases with existing tenants.
And the fifth anchor lease we're close to finalizing a new long term lease with the new terrific National grocer, there will be a big plus to our center and we'll be getting a substantial increase in Iran.
In terms of inline space, we have 421000 square feet scheduled to expire this year, we expect to renew and released this space consistent with our past performance.
Beyond the scheduled expirations in 2020, we're also pursuing a number of recapture opportunities. We currently have around 150000 square feet and our sites that were working to recapture where we can improve tendencies and achieve significant increases in rent.
Lastly in terms of patent expansion opportunities across our portfolio. We currently have a dozen opportunities underway in various stages of development ranging from the early planning stages to several that are nearing completion.
All together the 12 projects total roughly 70000 square feet of additional space and will add about two to two and a half million dollars an annual rent once all the projects are completed.
In summary, we expect to have another highly productive and successful year in 2020 with property operations and leasing and I will turn the call back over to Stewart. Thanks Rich.
Just to expand on riches last comment regarding 2020.
As the new year's getting underway, we're off to a great start in terms of dispositions. Our primary goal in 2020 is to finish exiting the Sacramento market to that end, we already have an agreement enhances so one of the two remaining properties as the last remaining property in Sacramento, We expect to put it on the market for cell within the next.
All of weeks, it's a larger shopping center, we've done a considerable amount of leasing and remerchandising over the past year and still has a few moving parts of the sales process may take a bit of time, but we fully expect to complete the sale in 2020.
Beyond that we're currently looking at one or two additional properties as possible disposition candidates.
In terms of new acquisitions, we're pleased to report that in December we acquired a terrific grocery anchored neighborhood shopping center for 11, and a half million.
Centers located in Seattle and is anchored by Walmarts neighborhood supermarket.
Along with acquiring the existing center at a six cap rate going in we have the ability to expand the property by another 12000 square feet, which we are already working on what the city in will enhance our overall yield on the property once completed.
Additionally, we have another terrific grocery anchored shopping center currently under contract for 40.6 million located in Southern California.
The going in cap rate is 5.8% in the leases are below market on average.
We intend to work aggressively at recapturing remerchandising space to grow the yield over time and enhance the value.
[noise] beyond these two acquisitions were also pursuing several other off market opportunities.
While it's early in the new year and the acquisition market is still little bit uncertain. We are excited about adding exceptional shopping centers in growing our core portfolio in 2020.
Notwithstanding starting to grow our portfolio again, we expect that 2020 will be a transitional year in terms of EFO similar to 2019. Our goal in 2020 is to continue enhancing our financial position by reducing debt primarily through ATM equity issuance during the year.
Lastly in terms of our same center NOI growth for 2020, while our guidance may suggest a slowdown in leasing activity in fact, the opposite is true.
It's rich noted we intend to continue aggressively recapturing space.
While this enhances long term value there was always the short term consequence, with the downtime between leases, which is reflected in our guidance not only as it relates to future we capture activity, but as it relates to our efforts in the second half of this past year, where new tenants haven't yet taken occupancy which will impact same.
Center competitive cash NOI growth in 2020.
Finally, as we embark on a new decade, our portfolio today with its competitive position on the west coast and long term growth prospects is the strongest it's ever been.
The same can be set of our diverse tenant base, which as we'd like to say is the cornerstone of our business.
Our tenant base today has never been stronger or better positioned than the marketplace with that in mine all of us at ROI Crs excited and confident as ever in the future prospects of our business.
And we are as focused as ever on continuing to build value.
Now we will open up your call for questions.
Operator.
Thank you as a reminder, asked a question you need to press star one on your telephone.
Withdraw your question press the pound key please send violently compared to Q and a roster.
And our first question will come from line of Christian makes thoroughly from Citigroup, maybe again good morning, when it Christie.
Hey, guys.
Just wanted to follow up on guidance so.
So given your forecast of 2% to 3% same store growth I just wanted to if you wonder if you could walk us through how we get from there.
The only about 1% AFFO growth at the midpoint and so you've got your.
Here acquisitions and your disposition. So there's some level of dilution from capital recycling and then you talked about equity issuance to pay down debt. So there's you know de leveraging as a component are there any other factors that we should be considering like movement in gionee or other income are noncash revenue.
Basically looking first somewhat of an AFFO bridge between that 110, and 2019 and the 111 at the midpoint of guidance.
[laughter].
Well same store and we want to talk about same store in terms of the Europe bike.
First of all just to address the gene a or were our guidance is assuming roughly 18 that have to 90 million for GNS. That's that's a good for the year as far as the noncash revenue I think I mentioned in my prepared remark about were so we're seeing a drop about 3 million in Fas 141 revenue in 2020 over 2019, which is better.
Other than two cents a share so that's where you're getting to $1.11 versus the dollar 14 with the street houses.
The difference of it as of.
Some butter dilution from equity issuance, we're playing to the share to continue to to de lever the balance sheet.
So how much of that is in terms of.
In terms of pennies on the on the chair or are we thinking about in terms of the impact of capital recycling and de leveraging.
Well, it's almost at the scraping expectations right.
While the timing of the equity is is really obviously, we're not going to be doing equity where our stock is currently trading.
But assuming that you know there's some momentum with the company in terms of stock price, we've modeled to equity Mike I think sort of throughout the year right. So that's the equity side on the disposition side weve sort of front loaded that part of our our guidance.
And on the acquisition side, we really spread that out throughout the year.
And on the acquisition.
And did with dispositions I mean are you thinking about the opportunity set there in terms of sort of relative to your cost of capital today, So kind of where are your shares trade. How much is that a factor in thinking about the deals that you're gonna do relative to sort of match funding with disposition.
It's it's it's a great question and absolutely. We we are watching obviously the cost of that equity as it relates to what we're buying in the yields that we're getting longer term.
Obviously also walked you risk as it relates to a what were behind given the overall retail climate.
So when when we're looking at acquiring and growing the company at this point, where we are doing that accretive like given our cost of capital.
Well, we continue to find those type of opportunities. We think so and you know there is the opportunity again as we mentioned in our last call to dual P. transactions. We currently have a couple of those that you know are coming to fruition, but again the caveat there is going to be the price of our equity in terms of trading.
In the currency.
Okay. Thank you.
Thank you and our next question comes online.
Holiday from RBC, maybe gets.
Hey, guys good morning.
So on that last topic, you know the push to de leverage this year I just to prepare the balance sheet for Densification and how much equity do you need for the Crossroads project.
Its the to prepare for Densification, we notice.
We fully knowledge, we are not that there was a little bit element, it's working to continue to try and drive that down.
Financing on the on Facebook Crossroads.
Yeah, we've pretty pretty compelling interest rate on the credit line, but we'll always look to keep our balance sheet.
To finance our activity on the balance sheet neutral basis, and that financing probably won't be needed until very late in the year or early 2021. So.
Although Mike is certainly focused on that the reality is we probably won't need that capital until the first quarter of 21.
Okay, and then you mentioned about the equity price be sensitive the equity issuance be sensitive to the stock price yet you still want to de lever.
If the equity is where it is call. It six months from now would you guys looked great potentially monetize these densification opportunities.
The answer is yes, we would look at that isn't as an alternative.
Okay and then the last one can you guys give an update on how you're looking at the the tenant watch list. This year versus maybe last year and then on the leasing is there any regions that stand out for strong pricing power.
Sure.
Obviously, we are keep a close eye on the names that are in the press in terms of retailers that are out there I'm having issues on the good news is that we have very low exposure to to those tenants and then you know in terms of their overall portfolio. We watch it very closely looking for any weakness and trying to be proactive and get ahead.
Of that.
And in terms of leasing strengthened I think the Pacific Northwest continues to lead the whole West Coast. I'm. You know we are essentially sitting in fully occupied in both Portland and Seattle markets.
But demand is very strong across the entire west coast.
With I think is rich articulated with certainly Portland, and Seattle, Oh, you know given the fact was so well leased it's just going to continue to just drive our releasing spreads or has it relates to the strength of those two markets and California.
Got it thank you.
Well thanks Wes.
And our next question for line Oh, Michael Mueller from JP Morgan you may begin.
Good morning, Michael.
Hey, good morning, a couple of questions I guess first for the acquisition, you're looking at southern California, that's about $40 million.
What are the attributes of that center that are putting the cap rate close to six considering you said that the rents are below market.
Well the grocers number one number two in their respective markets that we're buying in so sales are very very strong in terms of attributes along with what under anchor tenant.
Which is one of the strongest what we would call value tenants in the country. Those are your anchor tenants spot. The rest is really what I call national regional and some local breakdown in terms of the balance of the space.
And this has been in one ownership for probably 15 20 years its been fully leased most of the time, a and we believe after looking and underwriting the asset that our team can certainly generate a lot more growth is lease roll releases rollover in which I don't know if you want to add to that in terms of what were.
Seen on that deal Yeah, I mean, I think you know the cap rate is also you know a function of the sellers motivation. They are oh pivoting a out of retail and are interested in.
Having a quick and seamless a transaction.
Got it Okay, and then on the entitlement side that densification. Besides the three that are kind of in process right now, but is there a shadow pipeline of opportunities, where we could see additional projects be entitled and saying 2021.
Yes, there are three more behind the what I would call the three or four that we've discussed those are moving through the process, but we'll take a bit longer because they're at the beginning stages of entitlements.
We can probably start talking about those next year.
But all three or four of those are really at this point viable projects primarily apartments.
And moving along quite well in terms of the entitlement process. All three cities that these these assets are located in our Im really excited about the fact that we can and working closely with us but are really helping push this process along with us there they.
They need housing very badly.
Got it okay that was it thank you.
Thank you.
Thank you and our next question comes the line of Todd Thomas from Keybanc Capital markets you may begin.
Good morning, Todd Hi, Good morning, I'm, just back to the 2% to 3% same store NOI growth forecasts that it does reflect a slowdown from from the 3.6% in 19, and you mentioned that there's 150 basis points of occupancy that your proactively looking to recapture.
How much.
Over that slowdown or how much what's baked into the range in terms of disruption from from known tenant move outs versus the disruption that.
You mentioned is perhaps the result of space, you're looking to proactively recapture.
Well, it's primarily from recapture answer it's almost all of it from recapture if I'm correct, Mike in terms of Bob the downtime and same store. There was a number of components are built into that as far as the guidance guys would still have all the details here, but you know the property by property budgets give us a certain number of me no there's going to some downtime with some.
The anchor repositioning that rich mentioned in his prepared remarks, all that just gets you to a 2% to 3%.
Got it kind of conservative basis.
Okay, and we haven't taken into consideration obviously any fallout from you know from from tenants as well in the guidance.
Yes, well, so so with regard to that so what kind of cushion I guess have you assumed for 2020.
Fallout or unexpected move outs and.
Specifically I you know I know you have a bunch of.
24 hour fitness is in the portfolio, what's what's the latest there I realize they don't break into the top 10 tenant list, but how much exposure does that does 24 hour fitness represent and how.
Have you made the assumptions there in the guidance.
Hey, Todd it's like I'll, let rich since you're talking about 24 fitness, but on the on the guidance side as far as you know assumptions for bad debt you know that would be conservative we're assuming a 1% of total revenues in 2020.
But you got to keeping one or actually but that has always been below 1%. In fact, it was I think 0.7% in 29 team.
We're always constantly evaluating the tenant base and so that actually a little bit in there's just for unknown unexpected move outs.
Yeah and then this is rich in terms of the 24 hours you know, we only have for on the entire portfolio and they're less than 1% of our total base rent and you know the word we have from the of the people on the ground is that there are all performing well. So we don't have any.
Any immediate concerns about them.
When rents are very low for most of those 24 hour fitness or older leases. So Oh, you know if anything were to happen, there's probably some nice recapturing a that we could do in terms of.
Gaming rents for gaming income.
Okay, and just lastly, Mike for for the for the model the Fas 141.
Rental income is you know the decrease that's embedded in the guidance I think you said $3 million year over year.
That line was heavy in the first and second quarter of 19, I think as you recaptured some space there.
Before I ask you run rate I guess would actually be low heading into 2020 that needs to.
Pick up a little bit I guess heading into the new year is that right.
Well in first quarter of 19, we did have a recapture the kmart families that was a big pop there.
Fourth quarter is probably a better run rate, we're going to have a other pop in Q1, which we can elaborate on on the next call for 10 of the we're expecting to have moved out by the end of March which had a large below market. So thats being amortized currently so that'll be disclosed in the next holiday weeks after that it should be a normal run rate, which probably truck more to the fourth quarter of.
Team.
Okay. That's helpful Alright, Thank you.
Thank you had our next question right Craig Schmidt from Bank of America, you may begin.
Great. Thank you Greg good morning.
What is really read on non exposure to possible repeal of prop 13, the the 19th of need Amendment.
So the way we look at it.
And obviously, it's still a bit a bit of time away in terms of looking at what might happen, but most of the assets that we've acquired has been over the last let's call. It seven or eight years and usually the assessor in California runs about two years behind in terms of reassessment. So most.
Of our properties on all of them most of them are really being assessed at today's value.
So we don't really see much impact from this proposition if it gets passed as Craig.
And on the other hand, we actually think it could help us because what ends up happening is if you look around a number of our assets. What you will find is there's a number of centers that are held by other Reits or other owners a that if all these assets for a long period of time and if this Pos is what really is going to happen is.
Tams are going to really become more on a level platform as it relates to cost. So we think that could actually help us a lot.
So that's sort of our quick overview of the proposition, we'll see what happens.
Okay. Thank you.
Thank you.
Thank you and our next question comes line of Chris Lucas from capital One Securities nave again.
Good morning grass.
Hey, guys I'm, just a quick follow up on earlier questions related to sort of what's embedded in the same store guidance on the pure ones that you guys have what's your.
Do you modeling for your same store. This year is there any more rent coming in or is it a visit a slow burn.
Well I mean as this is rich I mean, you know we only have a three tier ones in the portfolio and you know is they're all typically below market in terms of the ramp.
We don't have you know any word that are officially closing are these locations. However, we believe one in Seattle may be on that list and we've already being very proactive months ago were out marketing this space and have in hand, numerous otherwise because it's a great pad location at a great shopping center. So you know there may be.
You know if suddenly they fall out there maybe some downtime, but we expect that you know there'll be some upside and all those ramps.
Okay. That's all I had thanks.
Thank you Chris.
Thank you.
Our next question will be from the line then decide from Jefferies maybe get.
Good morning.
Good morning, or would you like to end the year from a leverage perspective.
I'd like to them and that that the EBITDA down with a slick handle on it.
Really there are over a leverages.
That's a modest cannot forget it down to <unk> total debt to Martin capital safe in the low Thirtys mid thirtys, but that's that's even as the one metric that we obviously are very focused on we'll continue to chip away at it.
Thanks, that's all I have.
Thanks.
Thank you.
Showing any further questions at this time.
During the call back over to Stewart for any closing remarks.
Great and close gonna like thank all of you for joining US today, we greatly appreciate your interest in there and ROI see if you have any additional questions. Please contact Mike rich from or me directly also you can find additional information the company's quarterly supplemental package.
Posted on our website, thanks, again and have a great day everyone.
Ladies and gentlemen, this concludes todays conference call. Thank you for participating you may now disconnect.
[music].