Q4 2019 Earnings Call
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Now I'd like to hand, the conference over to your speaker today Heather Crowell. Thank you. Please go ahead.
Good morning, and thank you all for joining US reports fourth quarter 2019 earnings call. During this call will make certain forward looking statements within the meaning of federal securities laws.
These statements relate to expectations beliefs projections trends and other matters that are not historical facts and are subject to risks and uncertainties that might affect future events or results.
Descriptions of these risks are set forth in the company's FCC filings statements that PREIT makes today might be accurate only as of today February 26, 2020, and pretty makes no undertaking to update any such statements.
Also certain non-GAAP measures will be discussed pretty doesn't include reconciliations of such measures to comparable GAAP measures in its earnings release and other documents filed with the FCC.
Members of management or on the call today, our Joe Coradino, preach chairman and CEO and Merial Ventresca Rcs, though I'd now like to turn the call every Joe Coradino. Thanks, Heather and good morning, everyone were nearly two months into 2020 and as we look back where we were a year ago. It feels a little different we're beginning to believe that the headwinds or.
Slowly subsiding and the work we've done positions us to capitalize on improved operating environment.
With last nights earnings release, we announced completion of transactions confirming that we were Warner way to shoring up our balance sheet. The effort includes shuttling over $300 million in assets in the form of non income producing land for multifamily and hotel Densification operating out parcels.
And the sale leaseback of five mid tier properties.
We entered into the sale leaseback transaction for five properties that will deliver 153.6 million in proceeds netting approximately 57 million in liquidity. The transaction is structured as a 99 year lease with an option to repurchase the agreement also provide for <unk>.
Recent parcels related to multifamily development is subject to ongoing lease payments at 7% with annual Escalations.
The land sales rep represent phase one of the multifamily Densification plans, we've signed purchase and sale agreements with for buyers one seven properties for 125 million.
This phase will include 3450 of the five to 7000 units, we did our buildable upon receipt of entitlements will close on these land sales, which will allow us to reduce our leverage levels. No did disrupt represents only half of our land available for Densification and we expect.
To monetize the balance was part of phase to.
Additionally, the company has two hotels and 12 additional outparcels under agreement as shale, which are expected to expected to net an additional 12 million in liquidity.
These transaction demonstrate our ability to officially access internally generated capital and together with potential modifications to our credit facility shut covenants create a runway needed in order to complete execution of our business plan.
The company has had productive discussions with its lenders with a goal of modifying its debt covenants in the short term through September Thirtyth 2020.
To avoid covenant violations ensure compliance with its obligations. The company is also in discussions the modified the terms of its debt agreements on a long term basis.
In the near term, we expect to experience stress against our leverage ratio fixed charge coverage and our unencumbered debt yield covenants in an abundance of caution we notified you potentially exceeding our covenant limits. However, while our ratios are tight right now we're currently in compliance with our loan covenants and.
Expect to modify them by the end of March.
The Bank group is acknowledge the work we've done the shed non core assets, including 18 underperforming malls to which we raised nearly $900 million. This capital was redeployed into our value, creating redevelopment program. When we took action to aggressively reducing our exposure to department store consolidation.
We have unquestionably differentiated our portfolio and our at the early stages of recognizing the benefit of our efforts. We created a company that can internally rage over 300 million and we expect this to eight our discussion with the bank group, bringing about near term resolution.
We're in a business that has in the past few years experience volatility from a disruptive business model. There are and will always be retail bankruptcies liquidations in closings, but we've taken proactive steps to manage the disruption we sold underperforming properties and those 18 malls that we disposed of.
We've seen over 40 department stores close it would not have been prudently allocate capital to assets what appears to obsolescence. Conversely of Macy's 125 announced store closings, we will have only one in our portfolio a testimony to the quality of the portfolio we've created.
Another step we took was diversifying our tenant base in fact today, 47% of our non anchor space is leased to Nonmobile uses including dining and entertainment health and wellness and off price merchants, which are traditionally found in open air centers. These uses motivate the modern consumer.
And allow us to serve more customers as stewards of stakeholder capital, we firmly believe that serving the customer will enhance the value of our properties benefiting all of our constituencies over the long term.
We executed on this aspect of our plan by being the first to proactively take back Department store space. We replace 13 Department stores in three years countries. This to our peers, who are looking at well over two dozen vacant boxes. We've executed on this action plan definitely and have dramatically improve the credit.
Of our underlying cash flow stream, having doubled our commitment from TJX, Burlington, Dave and Busters, Darden and Regal since 2012.
Given today's announcement of over 300 million in capital raising initiatives, our balance sheet to sell into right direction.
As we look toward 2020, we believe we're better positioned to deliver on expectations than in 2019.
We recognize this is an optimistic view when at the same time don't think you'd want someone else sitting at one this call that doesn't believe into business. We're on a mission to prove malls have a bright future where the sole operator of mass appeal economic accessible retail and entertainment properties with admirable under lines.
Fiction high barrier to entry markets, and we're confident our position as an innovator at the forefront of shaping consumer experiences physicians as well as we move toward solid ground in retail.
Fashion District, Philadelphia, Molla, Prince Georges and Woodland Mall are three high touch redevelopment continue to generate interest from consumers and tenants at a rapid pace, both smaller Prince Georges and Woodman will be beneficiaries are depth of our Densification program.
Fashion district traffic is robust with over 4.8 million shoppers since September 2019, as exciting tenants continue open to open and build momentum with a 47000 square foot industry is co working facility next in line the projects over 80% leased and.
90% committed notable recent additions to the property include outlet tenants Armani exchange in Eddie Bauer full point full price retailers for and toward an experience actual destinations AMC theatres round, one wander spaces and Rex Philly and the next few months, we will welcome more.
Our new to Philadelphia tenants, including Kate Spade, DSW Windsor Yo Yos show and cleared alone. These exciting retail brands will be joined by international fast fashion retailers Primark and our Dan.
I wouldn't one mall, we continue to see traffic growth into double digits, and so a comp stores pop up over 10% to over $600 per square foot. Following the opening of the expansion weighing in October with the entire property benefiting from the sought after additions we expect the exciting.
We will continue as we welcome support on White House Black market. This spring.
There continues to be a tremendous opportunity for this property to continue to exceed expectations as we deliver more aspirational brands solidifying. It is the winner of the consumer dollar in Grand Rapids.
We have a number of anchor replacement still to come online this year with to Michaels stores opening a Plymouth meeting and more Sam malls, where they round out the former Macy's stores Dick's Sporting goods will replace a former Sears as Valley mall.
Sales at the property are up 5.9% in 2019. This March Burlington more play Sears at Dartmouth Mall, another market dominant asset that has come out the victor as to competing enclosed malls have closed in this market.
We're underway with releasing stores.
Closed as a result, the bankruptcy, we've executed or at least to replace 93% of the space approximately half of the backfills are temporary allowing us to capture upside as the environment improves.
We are clear that non anchor leasing is how we will ensure earnings growth gets back on track and were up for the task of introducing new tenants and diverse uses throughout our portfolio and now I'll turn the call over to Marios, who will discuss the quarter and our guidance in more detail Mario.
Thanks, Joe.
From an operating perspective, the key themes that define this year's performance continued to define our operating results for the fourth quarter.
The rationalization attendants door count through bankruptcies and store closings, completing our anchor replacement program and Backfilling inline space.
As a result of our anchor repositioning efforts, we benefited from the incremental revenues from tenants that have opened in 618000 square feet since January onest of 2018.
In the fourth quarter of 2019. These new tenants contributed a total of one and a half million dollars of new revenues to the portfolio.
And 3.4 million for the year.
These tenants will contribute seven and a half million dollars on an annualized basis.
Our core mall portfolio, which contribute to nearly 90% of our NOI continues to deliver metrics that indicates stability and highlight the quality of our portfolio that we have created.
From an occupancy perspective, we ended the year at 95.5% total, including anchors and 92.9% for non anchor space.
Average gross rents were just under $60 per square foot and occupancy costs are reasonable with room for improvement at 12.3%.
Our comp sales are up 5.7% for the year at an all time high to $539 per square foot.
Of note, we now have eight assets performing in over $500 per square foot and two assets at over $700 per square foot.
We outperformed the National retail Federation holiday sales as sales estimate with sales growth of 4.2% over 20 eighteens November and December.
This absolutely speaks to the positive consumer reception to our asset repositioning.
And anchor box replacement initiatives.
We have 425000 square feet of executed leases in our pipeline for future openings in our same store portfolio, which will contribute $13.1 million of annualized revenues.
This revenue will come online in hit RPL towards the back half of the year and annualize into 2021.
Renewal spreads have been driven by our wholly owned asset performance, our consolidated portfolio significantly outperformed our joint ventures registering positive annual renewal spreads of 6.7% non anchor under 10000 square feet and 5.5% non anchor over 10000 square feet.
As compared to negative, 10.5% and flat respectively for the joint venture portfolio.
We secured eight anchor renewals during the year, comprising 807000 square feet, bringing our total renewal activity to just under 1.6 million square feet of transactions.
Our renewal leasing pipeline and activity is another indicator of significant positive momentum in and retailer commitment to our enclosed mall portfolio.
Same store NOI, excluding termination fees fell outside of our previous guidance for 2019 due to the acceleration of rent relief for a large format bankrupt tenants over what was previously projected for the month of December and NOI, excluding termination fees for our wholly owned assets increased.
By three tenths of a percent for the month.
This positive inflection points supports the guidance I will discuss later on the call.
We reported FFO as adjusted of 34 cents per share compared to 51 cents in the prior period after accounting for the dilution from asset sales.
Last year's fourth quarter included the incremental impact of land sale gains of approximately 10 cents per share.
During the quarter, we closed on the sale of three out parcels to FCP tea and the woodland Ari I parcel was closed in January.
In the fourth quarter, we also sold our last remaining undeveloped land parcel in our portfolio.
During the quarter, we recorded the previously announced $2.7 million gain on sale of the three recently developed out parcels.
We have not committed at this point to monetize any outparcels other than the 12, we have under contract to be sold but we believe these to be any track and attractive source of capital going forward.
Let me now review our capital plan and provide some additional details on our earnings guidance.
During the quarter, we spent $49.3 million on Redevelopments and department store replacements, bringing the total spend to $183 million for the year.
In 2020, we expect to spend approximately $100 million on our announced pipeline projects.
We ended the year with $48 million available liquidity.
Based on completed initiatives and those underway, we expect to generate an additional $113 million of liquidity during the year.
Last night, we issued guidance and our underlying assumptions for 2020.
We expect FFO as adjusted per share to be between a dollar four and a $1.28.
Our guidance includes a reserve of $2 million at the midpoint and $3 million at the low end for bankruptcies and store closings.
We've assumed lease termination fees of between $1 million and $2 million.
With one and a half million at the midpoint.
In our 2020 guidance, we have assumed land sale gains of $14.4 million to $28.8 million as a result of our densification ish initiatives.
Excluding these gains FFO is expected to be 89 cents per share at the midpoint.
The key drivers of the variance to 2019 AFFO are higher interest expense as a result of increased borrowing and redevelopment is being placed into service, which equates to 13 cents per share.
The sale of Outparcels, which removed from same store NOI in the amount of one and a half centsper share.
These are partially offset by lower DNA of four cents per share and same store NOI growth of one cents per share.
We expect to realize $3.6 million of incremental revenues from our anchor replacement program in 2020.
2020 store openings, coupled with the Annualization of rents from major tenants. It opened last year are driving our performance.
From a balance sheet perspective, we expect to invest approximately $100 million to complete our redevelopment pipeline.
This consists mainly of the balance of spending at fashion district, and tenants specific cost to complete our for Sears replacement projects at woodland cap City Dart myth and valley malls.
Our three ongoing Macy's replacement projects at Valley, Plymouth meeting and Moorestown malls and the cost to complete construction of the studio movie grow at Willow Grove Park.
As we work toward the completion of our 10-K, our auditors are reviewing our liquidity position and debt covenant compliance.
The current status of ongoing discussions with the bank group may impact the auditor's opinion.
As we said earlier, we are engaged in productive discussions with our bank group and fully expect that this will be resolved before the end of the first quarter.
We're a company on the move with a positive trajectory, we have unquestionably improved our portfolio and this progress is manifesting itself in our operating metrics.
The progress announced on the capital raising front provides us with ample liquidity and will serve to increase balance sheet stability. This will provide the runway for the company to benefit from the valuable platform, we have created and with that we'll open it up for questions.
Thank you as a reminder, task and question you need to press Star one higher telephone to withdraw your question. Please press the pound key. Please note we will only allow one question and one follow up question per questioner. Please standby, while we compile the culinary roster.
And your first question comes from the line of Christy Mcelroy with Citi.
Hey, it's Michael Bilerman, if I do an access can I do like two questions and pretend to be at two people.
It depends what your first question.
Well I want to go back I wanted to start on liquidity situation and really try to understand the board and management's perspective regarding the dividend.
Which is and I respect that you have all these capital transactions that are working but.
You're in a position right now we're not even though you fully expect too.
Yeah, good clearance in your covenants, you're in a really tight position and I'm struggling to understand why you would maintain 130, 140% payout ratio this year based on the guidance.
Not try to pay the dividend in stock.
Just to retain capital to be able to execute what you need to execute and that's I'm just struggling really hard why you've maintained this dividend for the last three four years when you've been so tight.
And now we're going to be spending money.
For the dividend rather than retaining any free cash flow.
So one of the most motivations and paying a dividend.
By the way we've you know we haven't we felt long and hard about it a difficult decision.
As has been attempting to balance our share price in light of the disconnect in the public market pricing as a company.
We recognize 20 percents unusual.
And we'll continue to.
Take that into consideration as we as you look at future dividend periods, but with 13 million in leases coming online in it and FDP stabilizing.
Our AFFO payout ratio net of land sales is about 90% on an absolute hey, AFFO basis, we're at about 85%, but Michael I mean, I don't want to I don't want to do anything other than appreciate the question I understand the point.
I mean land sales or.
Core income might dividend is generated from core operations land sales are helping you gained some liquidity.
From a debt perspective, I guess I'm still struggling to understand why maintaining a 21 cents quarterly dividend when your free cash flow before land sales is less than that right, you're increasing your leverage even though I recognize 80 million shares.
So the dividend is not massive but.
You are putting yourself more in a box doing that and that's why I struggle to really understand.
Why even make ended in the first quarter. The most recent dividend when it was going to be about 100%, excluding the land sales.
I appreciate the point I think I've given you the answer that.
The board NR and management has reached decision based on.
Okay. Thank you.
Yes.
Your next question comes from a line of Ki bin Kim with Suntrust.
Thanks.
Good morning, Joe.
I want to go back to that good morning that debt covenant.
If you pursue the sales leaseback I would think lenders repatriate that as that pipe certainly puts you over to limit.
So it sounded like you're pretty confident that you'll get lender modifications by the end of the first quarter, which is only a month away. So what are the goal.
Yeah, Let me give you let me sort of take a step back here first we're in compliance with all of our covenants today.
That's first and foremost.
We want it to be transparent and we wanted to just lay it out there. It's you know it probably will have a negative effect, but it's a it's a.
It's something that we see so a solution in the near term by the end of the month, we've been in ongoing discussions with our lenders. It's a very it's a very positive.
Discussion, we were in Charlotte on Monday.
And the meeting the ended with the bankers congratulating us when the work we've done in our portfolio.
We expect to expect to bring it to resolution I don't really see the.
Obviously the transaction you are speaking about.
Will will impact one of our covenants, but I think you know in.
The Conversely that it will bring in significant capital to the company.
I know one one of your on your report you mentioned that it was expensive capital.
7%, we view that capital.
Not dissimilar to a.
A 5% loan with 20 year amortization.
Yeah.
So before I get to that point.
With the lenders require a higher interest rate is that likely outcome is that in your guidance as well.
Well at this point, we're not prepared to discuss the the terms of our our agreement with the lenders.
But again when I say, all you get back to bring it to resolution.
Okay, and we remember when we wrote that it was expense of cost of capital over comparing to the relative other options you have available like cutting the dividend, which brings into my second question.
Hi, I'm, just really trying to understand the rationale for keeping that dividend.
Is it because at this point given what equity markets are and how they're treating malls and penetrate stock.
My real practical standpoint.
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Possibility of a shareholder return without a cash on hand dividend.
You will fairly limited is that the primary reason to keep that dividend because.
Some point, there's maybe a tipping point, where it's less about shareholders and and dividends.
And more about well company going concern and employees and things like that is I'm I'm, just curious about what and when you reach that tipping point.
Well no no to your question is that the reason behind it.
And I think I answered this question for Michael I mean, essentially.
We saw a disconnect between our share price.
And the value we've created.
And we kept the dividend in place you know as we move forward. We understand it is a it's a pretty high coupon and it's something we'll take into consideration with our board certainly prior to the next dividend payment.
Okay. Thanks.
Your next question comes from a line of Mike Mueller with JP Morgan.
Yes, Hi couple of questions I guess first of all you talked about Capex spend of 125 to 150 million. This year some of that type of redevelopment I guess, what's the split between recurring and redevelopment and then I guess, if we look at page eight at the south with the detailed guidance break down.
How do you have you know ongoing redevelopment activities, but your Capex goes to zero on Jan one pretty capitalized interest goes to zero on Jan one.
My guidance Marissa, yes.
The split between.
The two capital numbers.
We proactively managed our capital expenditure program.
Looking forward into 2020, when we prepared the 2019 budget.
Recurring 10 allowances are roughly.
$20 million plus or minus.
Recurring capex was somewhere in the $6 million to $8 million range.
Okay. So if you have call. It 30 million of recurring 100 125 of redevelopment develop and what is your capitalized interest go away completely in 2019 or 2020.
We're essentially.
We've been capitalizing the interest on the redevelopment spend you will see it in the 2019.
Representation on the guidance it was roughly $13 million, we expect to bring all of the projects that are currently under redevelopment into.
Placed into service.
During the year with.
With the Dart Miss in the beginning of the year with breadth with the Burlington open and.
Through.
Mid year with studio movie grow which is expected to open late in the first half of.
This year.
Okay. So so.
Literally beginning in the first quarter. It goes to zero that is yet to think of it Okay and then I guess on me.
On the sale leaseback transaction can you give us a sense as to what sort of in industry did that transaction with I think you said it was five mid tier malls any color on.
What those calls where.
We.
I mean, it's essential.
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Mike This is Joe I.
I mean, it's essentially a a well capitalized fund.
That.
Has done this sort of thing before.
And if someone we believe is we've we've had this deal in hand.
For months.
And really sat on it and thought about it and sat on and thought about it.
And signed the day before yesterday.
We think it'll be a relatively.
60, 90 days, maybe 120 at the outside to closing.
And your last question comes from the line of Christy Mcelroy with Citi.
Great. So I wanted to just sort of come back to sort of the.
Dealing with your covenants near lease the lender modifications at least for the release it sounds like that's only a short term.
Modification up until September.
And obviously you have these liquidity transactions that are still subject to just due diligence.
Customary closing conditions, which occurring entitlements, so that capital I would say is is that risk rank those deals are not close yet.
And.
You got to September Twentyth things may not be better.
Massive amount of maturities coming in 21.2 as a percentage of your total.
I guess, how should we think about.
Every new she's going on.
You should think about it as we're we have already begun.
Discussing the long term transaction.
And anticipate having got in place well before that that.
Exploration.
And how should we think about the security or the cost.
Of getting.
To these transactions.
Given the fact that we're in the midst of in negotiation right now I'd rather not.
Discuss discussed the terms of the transaction.
And your next question comes from that.
The bone with Green Street advisor.
Hi, Good morning, just one more on the the covenant.
Point here I'm, just curious if you see as part of the long term solution a potential equity raise being required other by the lenders or is that something you would consider to get under compliance on a longer term basis.
It's not inc., it's not under consideration at this point remember.
Theres a couple of things I think the first off 300 million plus is there's a significant amount of capital. When are you know our foreseeable capital expenditures are closer to 100 million.
But but also.
The residential pieces phase one.
So there is a second comparably sized transaction out there.
You know that that we.
I have the ability to to call on and also.
We've sold off about $30 million now parcels.
Well, we sold off 10, we're about to close on an additional 20 with.
CPT.
We as we have taken back these anchors one of the advantages of doing that is when you take back the anchors you no longer need anchor approval.
To put in Outparcel. So we've created significant inventory at this point of the Outparcel. So we have we have significant levers at our disposal through the multifamily and the and the Outparcels.
To bring any sort of organically created additional capital.
And don't really see an equity raise.
In the.
In our future at this point.
I mean, maybe all of the all the analysts from Nicole give us by rating as a result of the capital we raised and we'll be able to see a significant increase in the share price.
But.
Sure to that I think right now we're going to focus on.
Raising capital organically.
Got it thanks, and then one on the sale leaseback transaction. So that the initial rent payment it looks like gas just shy of $11 million, what's the coverage on that in terms of what those properties are generating from an end alive perspective, and just in terms of al maybe let's say a downside scenario potentially if.
If these prop mall start to deteriorate and let's say in a wide declines below the ground lease payment is there any put option on these tight on this type of transaction that there would be with a secured mortgage debt or how would that work, let's say at the end a lie at a property fell below the rent payment in our used.
Still obligated at the corporate level to pay that rent payment is there any ability to almost is put back the mall to them. If you could just maybe talk about both those factors little bit that'd be helpful.
You have been so I don't want to get into too many of the details.
The.
The buyer is in due diligence at this point, although they visited all the properties and they're very comfortable with the real estate I mean, we talked about.
The quality of the assets that these.
At the you know the fee sale will will apply to.
These are solid.
Middle market and actually one asset located outside of Philadelphia and Morris town.
New Jersey, we have valley mall, where we just.
Invested significant capital.
The payments as you said are about $11 million tenant three quarters on the 7%.
We have an option to repurchase the land underlying the properties.
There is no.
But at this point.
In time are included in the transaction.
But there are really the details that we're we're prepared to discuss at this point.
Your next question comes from the line of Ki bin Kim with Suntrust.
Thanks.
Can you just provide some more details around.
Sales leaseback transaction and multifamily Lasalles I'm, just curious about the language. Obviously all deals are subject to due diligence and other conditions, but I'm. Just curious if this is something new or if this is the same thing that we've.
Been expecting from Henry for the past couple of quarters.
Yeah, I guess I'm, just asking about a certainty for both transaction.
Sure well timing let me.
Let me take a step back.
You know we.
We have been talking about it for for some quarters, we decided to create a very competitive process with respect to the multifamily.
And so we went out to a number of bidders I think a one point we had.
As many as 30 see a signed.
For the for the seven properties went through a very exhaustive process.
To to reach reach a conclusion.
And the you know them.
Our expectation is that.
This will this will.
About half of them, we'll close this year about half next year, just generally speaking.
As you think about entitlements, both Springfield Town Center, a mall Prince Georges are entitled.
And.
Several of the other properties, we started the entitlement process in some cases overeat over a year ago, maybe two years.
And were fairly well along on one of them. We received the first vote a this this week.
Expecting approval in two weeks.
So we're we're well along on the multifamily transactions.
And continue to do sort accrete to have that.
As a priority.
And as soon as it results as it relates to the sale lease back I mean, it's just customary.
Due diligence.
Any.
Anyone who is.
Making 153 million dollar investment would want to doing the assets and without giving the list of assets.
We are.
No we have a pretty high degree of comfort to that'll come to closing.
I'd want to go back for one minute when the when the multifamily.
Two of the properties or as a repeat buyer.
That we've done business with.
In the past and we you know again, we have a.
Pretty high degree of certainty that will bring these these.
Transactions to closure.
That's helpful. When you into it it does but just to clarify one more thing.
You said half will close you will you expect casket close this year have to close next year, the 125.3 million.
Is that.
For both this year next year or is that just for a second you would you split that NIF.
Yes, I gave guidance.
And the gave some guidance for this year reflects half for that reflects I'm just curious about the because it sounds like you're you're spreading it over two years, but gave some guidance is that half the gains or is that for both.
And Tony I think.
So we have as Joe said, we have half the parcels closing in the latter half of this year Ki bin.
So there would be.
Three closing this year.
And three closing next year.
In 2021.
Okay.
And just wanted to sales leaseback.
What.
Quality or grouping up malls are the five assets behind the ground lease would have your tier one.
Group or tier two or three.
Keep in I think we've made the point that it is it's a group of you know.
Middle of the portfolio assets.
I don't want to I don't want to give a list at this point.
Okay.
And just last question for me why is your share count a little bit higher and your 2020 guidance versus where you ended the year and 19.
It's a function of two things, it's the dividend reinvestment plan.
And the employee incentive compensation rolling into.
The next year.
We ended this year actually.
And there are no further questions I'll like to turn the call that till the presenters for any closing comment.
Well. Thank you all for being on the call today, we'll continue to keep you updated on our progress toward our balance sheet stability from an operating perspective, we're proud of the portfolio we've created.
And we believe we've taken the right steps to get here.
Thank you all again for being on the call and have a good day.
Ladies and gentlemen, this concludes todays conference call. Thank you for participating you may now disconnect.
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