Q1 2020 Earnings Call
Your patient so please continue.
[music].
Good afternoon, and welcome to the PS business Parks first quarter 2020 earnings results conference call and webcast.
At this time, all participants have been placed in listen only mode and the floor will be opened for your questions. Following the presentation.
If you would like to ask a question at that time, Please press star and one on your Touchtone phone.
If at any point. Your question has been answered you may remove yourself from the Q by pressing the pound key.
If you should require operator assistance please press star in zero.
It is now my pleasure to turn the floor over to Jeff hedges P.S. piece, Chief Financial Officer, Sir you may begin.
Thank you.
Good morning, everyone and thank you for joining us for the first quarter 2020, PS business Parks Investor Conference call.
This is Jeff hedges Chief Financial Officer.
Here with me is our interim Chief Executive Officer, and see although John Peterson, and our Chief Accounting Officer Tritan gross.
Before we begin let me remind everyone that all statements other than statements of historical fact included in this conference call are forward looking statements. These forward looking statements are subject to a number of risks and uncertainties. Many of which are beyond PS business parks control, which could cause actual results to differ materially from those set forth.
Or implied by such forward looking statements all forward looking statements speak only as of the date of this conference call.
PS business parks undertakes no obligation to update or revise any forward looking statements, whether as a result of new information future events or otherwise.
For additional information about risks and uncertainties that could adversely affect PS business parks forward looking statements. Please refer to the reports filed by the company with the Securities and Exchange Commission.
Putting our annual report on form 10-K, and subsequent reports on form 10-Q inform heiko.
We will also provide certain non-GAAP financial measures reconciliation of these non-GAAP financial measures to GAAP is included in our press release, and earning supplement which can be found on our website that PS business parks Dot com I'll now turn the call over to JP.
Thanks, Jeff Good morning, Thank you for joining us today, and we hope you in years are well.
As many of you know, our president and CEO Maria Hawthorne is currently out on medical leave not related to cope with 18.
We are wishing her well and hoping first speedy and complete recovery.
We will spend most of our time today discussing the effects of the Koby 19 pandemic and our response.
But I would like to start by highlighting our strong first quarter.
Our leasing team led the way it with a robust 1.9 million square feet of production and 9.5% cash rent growth.
With positive rent growth each of our markets.
Included in our production during the quarter, let's say 144000 square foot renewal in Seattle that we signed in March with 52% rent growth.
As you May recall, we had signaled that this customer may vacate in July of this year.
Our team did a fantastic job executing this strategic know that not only produce a significant rent growth for us, but also eliminates a repositioning capital project that we had planned for the property.
Regarding the two other large vacancies we have discussed previously in Hayward and Santa Fe Springs.
Activity is strong and we continue to expect to have these spaces released over the next several quarters.
In Q1, we also commenced construction of an 80000 square foot 8 million dollar industrial billing in Dallas.
This project is proceeding as planned and we are expecting delivery in Q4.
Concerning the similar industrial development in Seattle, we remain engaged on this development and are pursuing permits, but we will hold off on commencing construction until we are satisfied with market conditions and construction pricing.
Similarly regarding friend for at the mile are planned for Enerplus unit multifamily development in Tysons, Virginia. We are completing Predevelopment site work that will put construction of that project on hold as we evaluate pricing and market fundamentals.
Jeff will walk through Q1 financial results in a moment.
But needless to say, we're very pleased with what we accomplished in Q1.
Of course must have changed over the last several weeks, but our parks have remained open for business and our teams have been highly productive working remotely.
I'd like to acknowledge the tremendous effort of our team throughout the organization in our field and home offices.
As they have risen to the occasion and tackle these unique and unprecedented challenges I'm extremely proud what we have accomplished over these past several weeks.
As we all know the cobot 19 pandemic and the resulting shelter in place orders have significantly impacted commerce.
Although much of the disruption began in the month of March our March collections were unaffected.
April collections have legs and as of today, we are over 88% collected and progress continues to be made.
Jeff will provide more on this in a minute and also discuss our rent relief requests.
In March as a magnitude other pandemic too cold our team quickly developed a standardized process to manzi intake and evaluation of rent relief requests.
Of course, not all request will be granted.
We have been and well continue to be willing to partner with our loyal customers, whose businesses have been impacted by this pandemic.
Importantly, most of our customers are eligible for and the fact have already applied for one or more of the government assistance programs.
Moving now to leasing activity in our parks.
When the sheltered in place orders went into effect in mid March Turin leasing volume slow dramatically as companies tried to deal with the uncertainty and put most of their requirements on hold.
Over the last couple of weeks, we're beginning to see an uptick in calls and touring activity.
Much of the current demand is coming from the central businesses E Commerce medical supply and warehouse users.
Well some of the activity a short term in nature, we are working with some credit customers, whose businesses are growing during his pandemic and they're searching for a long term requirements.
Additionally, we have been able to accommodate some existing customers decisions to take the conservative approach and renew or downsize with us instead of relocating other parks and we expect more opportunities like this as we move forward.
Looking ahead, well we are optimistic about recent activity.
We expect reduced leasing demand.
And lower occupancy through the remainder of 2020.
As we anticipate the economic effect of this pandemic will endure for sometime.
Now I'll turn the call over to Jeff.
Thank you JP.
I'll begin with a brief recap of our Q1 financial results as JP mentioned, we had a productive first quarter led by net income of $1.51 <unk> diluted common share.
Same park cash NOI grew 4.5% and I get it the mile or multifamily property also performed well with into why growth of 8.2%.
I thought for the quarter was $1.72 per share.
Funds available for distribution or at a D was 49.3 million for the quarter, an increase of 6.6% from the prior year.
In addition to cash NOI growth the increase in FMT was driven by lower total same park recurring capital expenditures, which were approximately 9.4% of total cash in a lot.
Lastly, on Q1, I'll point out that we paid a dividend of a dollar of five to common shareholders in the first quarter and our board recently declared a dividend of a dollar of five to be paid in the second quarter on June Thirtyth <unk> shareholders of record on June 15.
Shifting now to the impact of the cover 19 pandemic on current operations.
In the month of March we built 34.4 million in collected over 98% of that amount.
In April we built 34.4 million of total rat and as of today, we've collected over 88% of that amount.
The collection rate attributable to the industrial segment of our portfolio is 85%.
A large portion of the industrial tenants that have not yet paid april's rat are really retail oriented customers such as furniture warehouses embedding stores.
Because retail storefronts have been shut.
We also have some retail exposure within our flex portfolio, which as a segment had a slightly higher collection rate at 87%, but still well below historic average.
Our office portfolio <unk> portfolio has performed well with 97% of April's rank collected as this segment of our portfolio is anchored with GE, I say leases and leases with government contractors, who had not been as affected by the shelter in place orders.
Hi Gate, our loan multifamily property, we've collected 90% of April's rent.
Across all product types, the majority of our customers who have not pay their IP already have indicated they may be seeking rent relief of some sort as of today roughly 20% of our customers have given an indication that they may be seeking rent relief. However, we have received rent relief applications from only 10% of customers.
We are evaluating each rent relief application on a case by case basis.
The rent relief request that we have agreed to thus far and what we expect as we move forward have generally been in the form a base rent deferral for an average of one to three months with payback periods, averaging six to 12 months.
And limited instances, we have agreed to small amounts of rent abatement, but this form of relief has generally been reserved for our small retail tenants and the cafes in gems that serve as amenities and our parks.
Although we do not provide formal guidance, we do expect that cash same park cash NOI for the last three quarters of 2020 will be negatively impacted by lower occupancy levels rent deferrals, and an expectation that customer default will rise to levels higher than what we have experienced over the past several years.
The magnitude of the impact created by these items will depend on the length and severity of the pandemic and the economic recovery at the regional and national levels.
Importantly.
Our fortress balance sheet and liquidity provides us with the ability to react to these challenges from a position of strength.
We have no debt outstanding.
We have very little in the form a future capital commitments.
We have approximately 340 million of liquidity, including 90 million of cash and 250 million of borrowing capacity on our credit facility.
Our strong liquidity position combined with our lack of material capital commitments and the strength of our portfolio cash flow leading into the crisis affords us the ability to make appropriate strict sheet strategic decisions with the goal of maximizing long term cash flow generation.
With that I'll turn it back to JP.
Thanks, Jeff.
Are we turn the call over for questions I want to reiterate the point, Jeff just made.
As always we operate our business for the long term and PSP business prospects are strong.
Well many of our customers have been impacted we believe most will emerge from this and our customers base will lead the recovery.
Parks are well positioned great markets and our experienced team is battle tested over many cycles and we'll respond quickly and act upon opportunities as they arise.
Lastly, with our pristine balance sheet, we are able to manage through the cycle and continue to pursue our long term strategic objectives.
With that we will now open the call for questions operator.
If you ask a question today, Please press star and one on your Touchtone phone.
You may withdraw yourself from the question Q by pressing the pound key we do ask that while you pose your question you pick up your handset to provide optimal sound quality.
And we'll go first to Manny Korchman with Citi.
Good morning. This is Katy Mcconnell on for many keep an eye. So I'm just bigger picture commentary on how the crisis has been impacting those small versus large format industrial tenants in your portfolio differently and thinking about how long term demand trends could change as a result about that's what opportunities.
Thanks.
Okay. Good question so.
I think there as we look at its impact first of all we're still.
You know very early into this pandemic.
And as we've seen over the last six to eight weeks.
The impact has been dramatic you know unemployment 30 million jobless, and you know down the list, which we all know.
So I think as all of our Oh, the economy has been inked impacted and some of our smaller come <unk> companies have been impacted you know maybe more so than some of the larger companies.
So how how are we dealing with Adam how are they dealing with it well we're all trying to bridge the gap here as the economy starts to reopen some of our smaller companies as Jeff pointed out have requested rent relief and guess what some of our larger company have also requested some deferrals so and.
It's important to note that just because the customer may have a small space with us doesn't mean, they're small company and the other had just because they have a large space with us doesn't mean, they're large companies. So I think have to be careful about how you bifurcate those.
Those users sizes so.
For example, we have a small company that has a large warehouse.
But they only have 40 employees, but they have 100000 square for warehouse. So they've requested deferral for example.
One of the things as you mentioned looking forward that we use we're starting to see a little bit is a concentration from both sides companies large and small into some of our key in some of our key parks locations for some short term requirement as well as I mentioned earlier that could.
To be E commerce, or they could be warehouse demands, we could see warehousing needs shift going forward in terms of the need to store more good again, it's too early to determine what the long term shifts they're gonna be but we think where our parks are located.
The infill nature of our parks closer freeways ports et cetera.
Are going to benefit I'm going forward once we get through this pandemic and even as we transition through it.
We've done some short term leases with companies, we might not otherwise have done because they they are growing in this environment.
And we're trying to address needs, hoping that we can generate some long term business.
For for US through these short term needs so little bit long there, but does that answer your question.
That's great. Thank you.
And then maybe just one quick follow up based on that did dip in rent collection, but you've seen so far in April can you talk a little bit about what your underwriting for collections and the remainder of cute.
And what percentage of those tenants do you expect to grant.
Right.
Yeah. Okay. This is Jeff. So you know we as G.P. said, we believe we're still early in this and and all of our regions.
We're just now starting to talk about the reopening so we do expect that's a the months of May and June are going to continue to be challenging for a lot of our tenants. We think that we we have been very proactive and communicating with our tenants and as I said 20.
Percent of our tenants have indicated at this point that they may be seeking relief only 10% have translated to formal rent relief applications and thus far but we do expect that that 10% will grow we don't have any real guidance to give in terms of exactly how how large that will grow.
Because that's going to depend on the lengthened severity of the shutdowns and how quickly are various regions can get back to business, but needless to say, we do expect that some of our customers who.
Our effectively shuttered right now our continued to gonna have a cash flow challenges and the months of man Jan and how far beyond that is TBD.
But we are as we said continuing to work with and partner with the loyal customers that we have and I think as JP put it try and help bridge the gap here as we work through the next few weeks and months or the pandemic and then J.P. do you want to talk about our expectations.
On a percentage of request that will grant.
As we look at these and I think Jeff discussed in his prepared remarks, I mean, we do take each requests on an individual basis, and we have a pretty thorough process of looking into their financials their statements et cetera, and evaluating their long term business needs and there are some companies that are.
Opportunistic lets say with these requests and may or may not need it.
And our our goal is to determine who needs help and who doesn't and so you know it's too early for us to put up percentage on this really.
As Jeff said only 10% of those of inquiries have actually fell that application. So we go through pretty thorough process have they applied for the government assistance.
Have they.
Have they submitted the requisite a bank statements financial statements to us. So you know we're only really in terms of April collection drilling four weeks into it. So it's too early for me to say that it's going to be 20% or 40% or anything like that we just don't know.
As it so new.
Okay. Thank you.
And we can go next to Brendan fan with Wells Fargo.
Hey, guys. Thanks for taking my questions.
I guess I really appreciate the color you guys gave on E collections.
Oh request.
For those 10% of customers that you know or likely seeking rent relief, but haven't filed a form of application.
Is that in your opinion or you are tied to them requesting relief in terms of loans or grants from the government.
Yeah, Brian.
So what we've seen over the last four weeks lets say is.
Especially recently in last two weeks and this is also fluid right I mean, that's a different world on April Thirtyth than it was on April 10th or 12, So what we've seen is.
As we yeah with each passing day, we'd see some company then as Jeff pointed out as it is some markets start to reopen.
These companies will first of all for us.
To start the application process with them, we need to see the okay. They have applied for a government relief and there are no number of programs as you know so once they do that and then we evaluate that request on a standalone basis and trying to decide okay is that relief.
Request.
From the government do they get it and have they pay their ads are and then they need to pay the red.
From those requests from the government assistance program, but we're not sometimes we fill out the application and they see forget about it I'm just going to pay the rent I.
I don't want to go through the process, maybe don't need the money maybe the economy is going to reopen sooner than I thought it would be so it's again as I said earlier, it's really fluid in its hard to really pinpoint.
Pinpoint a I guess a theme here I think Jeff when do you agree yeah, and maybe I'd just add that Brendan the process that we've designed here as its such that we are focused on ensuring the customers, who really do need relief.
We're going to be co-operative with and partner with where appropriate the customers, who do not need relief, we're not given handouts, so where our processes designed to make sure. We're reviewing each case thoroughly and for that reason as JP mentioned I think some of the customers who may have just initially have been opportunist.
Sticks, and we would like relief.
As we get a little deeper in here they've decided you know what for now I'm fine and have at least at this point opted not to formally apply for any type of relief from US we'll continue to keep a close eye on it and we'll continue to be very diligent in evaluating the request that come in.
Okay. Great appreciate that guys and then just switching gears here a little bit.
You've talked before about seeking acquisition opportunities I, just similar to the industrial assets you acquired last year. So I guess you continuing to.
Commodity environment look for there's opportunities and I guess, given where your balance sheet is and the low leverage would you be comfortable taking on some debt. If you saw some particularly attractive opportunities.
Yeah written so.
We're.
As we do as we discussed we're well prepared from balance sheet standpoint to capitalize on acquisition opportunities and Jeff will talk about the debt piece in a minute but.
We're actively looking at whatever.
Acquisitions are out there right now, but frankly, the market has dried up and for us to source in acquisition right. Now frankly, it's very hard hard to underwrite what the future looks like in terms of rent growth in terms of rent collections in terms of occupancy because no. One knows really where this is going so there will be offered.
Attunitys and the future and we'll be ready and if you look back at our past.
Whether it was after the tech rack or after the during the great financial crisis, that's really when we're able to grow the company. We have the balance sheet, then and we do now to really capitalize on opportunities and well. We're we're very hopeful that this affords us the ability to pounce on acquisition.
Opportunities once the market settles down a little bit.
But frankly right now there's really nothing out there too to pursue.
And if there were we're not going to pay yesterday's prices.
For a future that were really unsure of at this point suggested you want to talk about the debt piece yeah. Yeah. So as safety said you know we do expect there will be opportunities at some point when those opportunities present themselves will we will get aggressive at the right time, and we'll look to capitalize those growth opportunities from all source.
As of capital, including debt, which we currently don't have on balance sheet, but you've heard us say on prior calls that you know we will look too.
Common equity preferred equity and debt as sources of growth capital, when and where appropriate and as we're talking here today that remains the case, we would be opened to issuing debt if it were.
Tied around strategic growth opportunity that we thought was appropriate.
Sounds good thanks, guys.
Thanks Brendan.
Well go next to Craig Mailman with Keybanc capital.
Please go ahead.
Hi, This is already on the Craig just a quick update on the two bigger backfill the 460000 square feet and the 280000 square feet just some color on the timing expectations.
The market I know you guys said several quarters, but should think about it kinda them was up 2021.
That's all.
Well good question as you can imagine, we're pushing real hard to not do 2021 backfills.
But yes, there is interest in both spaces, either parts parts of the space or all of the spaces and so we're frankly in this environment. We're encouraged with the level of activity, but with this new normal you know there's no what what pre co bid we might have done it maybe a little bit different now.
But we like our chances it's going to I'll stand by the several quarters comment you know I hope to.
It has some good announcement here in 2020, well see and we're still these are still good buildings.
There they have attracted a lot of interest and we're confident about our ability to move these buildings.
Got it thanks.
Yes.
Okay, and then just a follow up on the.
The rack relief you guys said, but obviously most of the leap requests are coming from flexing industrial tenants with a little more we tell exposures sorry, if I Miss it but did you guys put a percentage behind.
No how many what what make up of your portfolio as those types of retail exposure.
Hi, This is yet no. We did not released those details I just want to clarify something what we said is.
The exposure on retail was in reference to.
The the customers who have not paid April.
The relief requests I think as a general statement are little more kind of spread across all all industries.
But but certainly the retail exposure has been where we've seen the most pressure with regard to the customers who have been.
Having difficulty making their april payments.
Got it okay. Thank you that's it for me.
And again that is star and wanted to ask a question.
Next to Anthony Palo with JP Morgan.
Please go ahead.
Great. Thank you is there anything geographic or emerging out of the rent collection dynamic in terms of.
Better worse in certain areas.
Yes, Tony.
You know surprisingly, it's better in Washington Metro.
A lot of that the government economy, there is a.
Healthy right now I would say and we've seen you know more favorable rent relief request. There you know southern California, maybe has a disproportional higher amount of work Wes partially because some of that service retail that we haven't the front of our industrial parks like Jeff mentioned, partially because we have a high concentration of so.
All businesses, you know and then lastly, maybe Florida, we've had a bit more requests because it maybe some ties to that to Latin America, and the trade without slowing down a bit you know, Texas kind of what was what you expect I mean look everybody is seeking not everybody.
But it's like Jeff it's across the industry types. It for this rate relief request, so, but especially it's a good in DC and maybe some some more in southern California and Florida.
Does that help.
Yeah. That's that's helpful and then I'm thinking through just the rest of year here like if we look at year, just total lease expiration schedule, it's about 16%.
Rents I mean, what do you think.
I mean, whereas tenant retention been running and what do you think happens or you know from here.
Trying to put some brackets around like if you don't we keep.
I don't have happened three quarters of your tenants and there's a decent doorway backfilling like trying to understand the order of magnitude on occupancy this could happen in the near term.
Yeah. Tony is you know we had a really strong Q1 was 75% retention.
You know what can we do that you know.
The rest of the are you know maybe unlikely, but what we are doing already is being much more aggressive with our renewals were reaching out a little bit further our some of our customers have taken advantage of that and some of our customers said look I'm I'm willing to renew now maybe I'm not going to grow.
You know and relocate out of the part maybe I'll say here. So we're we're working hard to keep our retention in the kind of.
60% to 70% range I would think and that's going to it for you know fortunate to be really proactive with our customers in terms of how we structure. The leases going forward, we still think theres opportunities in certain markets to maintain rents because as you know heading into this pandemic, we were all time low.
I can see rates.
And you know theres not still lot a lot of space out there so that should help us.
And what else we should help US is is the economies start to reopen <unk> our customers may have more visibility into what their future looks like and they may be more confident and just staying put where they are then.
Moving somewhere else. So we think that will help us with retention going forward does that help.
Yeah. It doesn't mean you are in such a a flow business just given the about a leasing an average ticket size like what has what has historically been sort of the cycle time together. When you started and just trying to understand like you know how much that could be delayed right now it seems like a couple of months going to up to a quarter or is it a couple months.
Normally and it ends up in quarter two pushed out.
Yeah. The good news about some of our smaller business is that turnaround time is pretty quick.
What we're doing that was are reaching out further like had mentioned earlier. So so we haven't dialogue with them earlier and earlier than we might otherwise have and we're still getting deals done at each and every week and I'm proud of our teams for what they've accomplished there were still doing renewals.
And we're trying to short circuit the process right now we're being more aggressive in the timeline versus less now that's always a given take with what the customer wants as they try and you know look look forward, but our goal is hey, we can get a deal done now that's a good thing.
And that's what we're working really hard to do across all of our markets in terms of renewals.
Okay got it then just last question for Jeff.
I know, it's not huge numbers, but what do you think capital spending will be over the balance of there.
I think that's.
Capital, especially our transaction capital call of course is going to be directly impacted by how much leasing production, we're able to accomplish between now and the ended the year.
We did.
Probably we're a little lower than what was expected in Q1 from a recurring capital perspective, we think that that's probably a pretty good run rate, although we really hesitate to give any type of indication of what the remainder of the year looks like because it's really going to be directly resulting from you know what type.
Renewals were able to do and what type of new leasing, we're able to do but from a a maintenance capital perspective, and then also from a development perspective, you know J.P. mentioned that we have the Dallas development that is ongoing that will continue through the year and.
Roughly $8 million total of development spend there and then we have some small capital dollars that will be spent on site work antisense getting ready for the next phase of development there, but we have no requirement to move forward on that project, nor do we have any time sensitivity on the Seattle project. So from both a.
Maintenance and development capital perspective, I, it's it's going to be pretty minimal through the remainder of the year.
Okay got it thank you.
Thanks, Tony.
And we'll go next to Eric Frankel with Green Street Advisors.
Thank you. Thank you.
Hoping you can maybe just highlight.
What's your bad debt.
In historically in kind of what here just in terms of your overall right collection, what you've experienced this month.
Just something that we can probably thinking about for the rest of the year.
Yeah, Eric So just to clarify your question when you say historically do you mean, you know looking back to prior cycles or just the recent okay.
Our called the possible.
Okay, well I'll start with you know bad debt in Q1 was actually fairly minimal we actually had we did have some some write off and write offs in Q1 as you'd expect but actually we had a quite a bit of Britain. Prior recovery at Pryor amounts have been written off so.
Net net it was a pretty negligible in Q1 from a our write off perspective, but as we look back over.
You know going back to the.
Great financial crisis, the highest our write offs ever got was 53 basis point of total annual revenue.
And that was back in 2010, and we Havent.
Come close to that percentage since then.
So weve averaged you know kind of right in that 20 to 30 basis points area over the last several years.
Gotcha generally tenants just kind of leave that you.
If they pay rent they just kind of leave acute they can't pay any further and you try to backfill as quickly as possible that generally how kind of worked in the past and.
Exactly right Eric I mean, if you don't you don't pay you don't stay I mean, it's been that wafer since I've been here. So it's that we have a pretty short fuse with.
Customers that don't pay.
Gotcha.
Our and then just got just circling back on the Quad the retail exposure <unk> did you actually mentioned what percentage of your tenant base actually had I got their quality retailers.
Actually direct retail it's really about cafe.
Or.
Restaurant establishment.
Yeah, Eric I'll start and then I'll turn object, we didn't talk quite a specific percentage, but one way to look at that is you know we may have an industrial park.
And maybe the front is that part with the street with a major its thoroughfare interface might have a either a showroom components or auto component or us some kind of service center. So some of those service oriented.
Spaces units within an industrial park, maybe part of our retail and so some of those to what Jeff said earlier, you know those have been shut down by the shelter at home orders. So some of that's going on and then we have you know what a lot of our parks, we have excuse me various amenities like.
Deli isn't cafes and.
Some jansan and workout facilities or or little.
Customer.
What I'm thinking about here, but it's like areas, where the customers can go congregate or eat or workout or things like that so those things had been shut or too, but it's not a huge number in terms of you know true retail we do have some of that primarily in southern California.
We do have a park that has a furniture store, we do have a park that has other retail mattresses things like that but thats on the front of that otherwise industrial park. So we have some of that Eric but not a lot.
Jeff did you want to elaborate or that I think that's pretty good explanation. The only thing Erika as you're aware. We do include in our earnings supplement a industry concentration table and.
Well, it's not perfect for what he to answer your question, we do have a retail food and automotive category and that I would also say that within home furnishings as some of the other retail type uses that JP match and with regard to mattress and.
And furniture stores and things of that nature, I'd say that well not perfect.
Answer to your Ics specific question that characterizes and general kind of where the retail exposure is.
Oh, Okay. Thank you very much appreciate it.
And there are no further questions at this time, so I'll turn it back to Jeff for any closing remarks.
Alright, well. Thank you everyone for joining us here today, we hope that everyone remains a safe and healthy and we look forward to talking with you. All again very said I have a great that.
This does conclude today's program. We appreciate your participation and you may now disconnect and have a wonderful day.
[music].
[music].
[noise] [noise].
[music].