Q1 2020 Earnings Call
Good morning.
Welcome to the investors real estate trusts first quarter 2020 earnings conference call.
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I would now like to turn the conference over to Mark Decker Chief Executive Officer. Please go ahead.
Thanks, Gary Good morning, all.
Irene <unk> form 10-Q for the quarter ending March 31, 2020 was filed with the FTC yesterday after market closed.
Additionally, our earnings release and supplemental disclosure package had been posted on our website and I are 80 apartments dot com.
And filed yesterday on form 8-K.
Before we begin our remarks. This morning, I must remind you that during the call we will discuss our business outlook and we'll be making certain forward looking statements about future events based on current expectations and assumptions.
These statements are subject to risks and uncertainties discussed in our release and form 10-Q and in other recent filings with the FCC.
With respect to non-GAAP measures, we use on this call, including pro forma measures. Please refer to our earnings supplement for a reconciliation to GAAP. The returns management uses these non-GAAP measures and the assumptions used with respect to any pro forma measures.
And there are inherent limitations.
Any forward looking statements made on today's call represent management's current opinions and the company assumes no obligation to update or supplement these statements that become on true due to subsequent events.
With me this morning, as analysts and our Chief operating officer and John Korchman.
Our Chief Financial Officer.
I know a number of our team members are listening into this call and I want to start by thanking them for all their great work, particularly over these past few months.
We're very fortunate and grateful to be in a business that provides one of life, the central and its and truly inspiring to see how our team has come together to take care of our residents and each other.
Mission of providing great homes has never been more important. Thank you team and please keep it up.
Irene <unk> came in to covert night, the cobot 19 crisis that are prepared than at any moment and our company's history and our first quarter was well ahead of our own expectations driven by strong revenue growth and a milder winter.
As we've been discussing for three years now our goal is to build a company with durable earnings power that possesses the intellectual and financial capital to successfully navigate and grow in any environment.
The work we've done on our portfolio balance sheet and operations provides us with the high quality value oriented portfolio, that's weathering the storm very well.
Our geography, it's also a real differentiator in this time and you can see this in our April collections, which were 97.4 person plus 1% deferred and in May which through May 11 is tracking at over 98% of historical averages.
We were proactive and moved quickly to address all aspects of all aspects of Kobe 19, and well continue to do our best to work with our residents through this economic and health crisis.
Your diary T., we're well positioned and optimistic about the future. So we're very cautious about the near term when we consider recent economic signals, including record unemployment.
Many businesses that are not open and a consumer that's on the sidelines.
Turning from the macro to things within our control during the first quarter, we continued to simplify our balance sheet.
And I quality to our Twinstar twin cities portfolio with two investments first we bought out our joint venture partner 71, France any Diana.
Salivating ownership in one of our most desirable Minneapolis Submarkets.
We also one full circle what ironwood.
Converting our mezzanine financing to fee simple ownership by a purchase this asset for 46 $9.
This is a great success story for future potential developer prospects there will be help on the years ahead.
Both of these investments closed and other world just two months ago.
Nevertheless, we're happy with the pricing on both which were at fourth record of five cap rates and funded in whole or part with cash proceeds from our Sioux Falls sales late last year.
Also drew about 10 million on the line for Ironwood, but that assets free and clear on our balance sheet, providing a range of liquidity options.
We're also continuing to fund our loan and comments, which as a reminder, where construction lender and a mezzanine provider with the purchase option. There that project remains on schedule and construction has deemed essential in Minnesota.
Obviously at a time like this cash management and liquidity are Paramount.
First and foremost our business is demonstrating strength and while our revenues handheld we're exercising caution with all of our expenses.
On the liquidity front, we have more than twice the liquidity to meet our obligations through year end 2021 as detailed in our supplemental.
We believe this positions us to get through the next 12 18 months and be opportunistic along the way.
And with that and please provide some more detail on operations.
Thank you Mark and good morning. This morning, I will provide you with an update on how our team has adapted to serve our residents and provide some data that indicates how our business is responding to the covert 19 pandemic.
Before I get to that I want to take a minute to highlight the strong operational results of our first quarter.
With 3.9% same store revenue growth and a 3.8% increase in anyway over first quarter 2019, we were positioned very well heading into the economic slowdown that our markets began experiencing in mid March.
We call Delta quarter, with a weighted average occupancy of 95.4% and our rental rates increased 1.8% in Q1 compared to Q1 2019.
Our team showed up in the first quarter that they were prepared to deliver results in 2020 and that preparation allowed us to react efficiently and proactively to cobot 19.
As events unfold it in the Midwest, we address the necessary operational changes to keep our residents and team member states.
And to comply with regulations and expert recommendation.
All of which were changing at a fast it.
Well some of our markets have are continuing to comply with shelter in place orders not all of our markets, whereas impacted by government regulations and business closure.
Montana, North Dakota, and South Dakota, well regulating some business activities did not implement shelter in place and have already started reopening businesses and east regulation.
With 64.3% of our pro forma in Hawaii coming from Colorado in Minnesota, where we continue to monitor shelter in place requirements I want to know that our collections in these markets have been strong.
We worked hard to do the right thing in a time when nothing with certain and we're pleased with the adaptability as shown by our team and the resilience demonstrated by our residents vendors and service providers.
Not only with our support staff moved to entirely remote work that our community based opposite close and we undertook to provide the same great service to current and future residents that we have always provided but now remotely all of our toward when virtual and things that have been happening in some communities under unique circumstances became contemplates overnight.
Our service team members that began servicing work orders and handling turns of units with new protocols and in many cases work orders are being completed through resident education and remote instruction.
Before April 1st we had a centralized an automated procedure for processing resident hardship claims and by the end of April we had entered into rent deferral agreement with 134 residence for a total of approximately $156000, 40.4% of which we also collected in April as our residents received their federal.
The mills checks or government benefit.
This leaves us with just 65 basis points of rent deferral compared to total revenue.
We've approached our operations with transparency empathy and continuous communication for both our teams and our residents.
All of this hard work showed up in our April results.
We accounted for 98.4% of April charges, which included deferrals of 1% of April rent.
Well the number of new leases in April was down 22% compared to 2019, a resident retention was strong at 62%.
And while our average new lease rate decreased 2%.
From the prior term our average renewal rate increased 4.1%.
Our revenue per unit is holding with just a slight decrease in April from a thousand $83 per unit in March $2079 per unit in April.
Today, we said at visit with physical occupancy of 94.8% and have collected 98% of historical average collections through may 11th.
We are experiencing significantly less request for deferment in may with only 16 rental deferment agreements for an aggregate rent amount of approximately $18000 through may it.
Well, we're monitoring revenue and bouncing competing priorities of occupancy and rent were also closely managing our expenses.
We will see certain expense savings occur naturally due to the pandemic like reduce churn costs are savings on community hosted events.
And they're also areas, where we are carefully analyzing and planning expense savings in anticipation of continued impact from the economic slowdown and pressure on our revenues.
We have prioritize our capital expenditure projects and reviewed both the physical and financial feasibility of our value add initiative.
Our expectation is that we will do our best to match reduced revenues with expense savings.
I'm tremendously proud of how quickly our team has reacted to the challenges of the past 60 days and I'm certain that our actions have both bolstered our ability to maintain occupancy and revenues in a challenging time.
We're also very quickly moving forward with several initiatives that we believe will stay with us for many years to come as we're forced to try new ways of operating many times experiencing success that are clearly repeatable and will help us scale.
I've sincere gratitude for a team members working in difficult times at home and with added pressures with that I'll turn it over to John to discuss the overall financial results.
Thank you I am last night, we reported core AFFO for the quarter ending March 31st 2020 of 90 cents per share an increase of 13 cents or 17% from the first quarter 2019.
The increase can be attributed to decreased interest and gene a expenses as well as lower casualty losses.
Looking at our general and administrative expenses.
Oh Genie was $3.4 million further quarter, a 400000 or 9.9% decrease from the same quarter in 2019.
The decrease in Jean Yves, primarily attributed to a reduction in legal fees from our successful pursued for recovery under construction defect claim in the prior year as well as lower severance costs.
These decreases were partially offset by an increase in consulting and health insurance costs interest expense of $6.9 million decreased by $1 million or 12.5% from the same period of the prior year.
The decrease is attributed to replacement a maturing debt with lower rate debt and a lower average balance on our line of credit.
Property management expense of $1.6 million for the first quarter 2020, if inline with the same quarter of 29 team.
Moving to capital expenditures as presented on page 14 of our supplemental same store Capex was was $1.7 million for the first quarter 2020, and 800000 dollar increase from the prior year.
The increase of Capex is due to the timing of capital replacement projects being accelerated and 2020.
Value add capital spend of $2 million increased $1.7 million from the prior year period as a result, the continuation of the value add programs, we initiated during the latter half of 29 Pete.
Turning to our balance sheet as of March 31st 2020, we had approximately $193 million and total liquidity, including 167 million available on our corporate revolver and $26 million of cash and equivalents.
We have provided additional color on our liquidity as of April thirtyth on the on page 10 up a supplemental.
As of April Thirtyth, our total liquidity the $180 million.
Looking to the remainder of 2020, and then 220 21, we have a total of $45.3 million of debt maturities and $37.8 million remaining to farm on our construction and mezzanine loans for the development of a multifamily community in Minneapolis.
Our current level of available liquidity represents 2.3 times these near term commitments.
We believe our current liquidity, while being sufficient to meet our requirements through the end of 2021 further allows us to be opportunistic during this period of economic disruption.
During the first quarter, we issued 50000 common shares at an average net price of $68.04 per share for total consideration of $3.4 million.
These shares were issued to fund our value add capital spend and draws under our construction loan.
Through April 30 of this year. We also purchased 191000 shares are preferred stock at an average net price of $23 from 48 cents per share representing a discount to par value was 6.1% for an aggregate cost of $4.5 million.
The total shares repurchase represent nearly 5% of our outstanding preferred shares.
To fund the repurchase of these preferred shares we disposed our entire portfolio marketable securities in March and April receiving aggregate net proceeds of $3.5 million. The life to date loss realized on the disposition a marketable securities was $3.4 million.
While our Q1 results were encouraging they do not reflect the impact from the Kobin 19 pandemic in March 2020, we read through our guidance dating that during this time of economic uncertainty. It is too early to quantify the financial impact to our business of coded 19, and there too so.
She did financial disruption.
Moving forward through 2020 and beyond IRA T is closely monitoring Kobin 19, and its associated financial disruption, but given the unprecedented nature and circumstances of this pandemic. We're not at this time, providing our financial outlook for the remainder of 22.
We will continue to update investors of the impact of Kobin 19 to our financial results and liquidity as information becomes available.
We are focused on navigating Kobe 19, and its associated financial disruption because of our strong dedicated team of professionals, who more than ever our executing on our mission to provide great homes. We are confident in the face of uncertainty and the thanks to our team that I repeat continues to deliver results.
And build credibility in competition with our residents in the investment community.
With that I will return the call to the operator for your question.
We will now begin the question answer session.
To ask a question you Me Press Star then one on your telephone keypad.
If you're using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then too.
At this time, we will pause momentarily to assemble our roster.
[noise]. Our first question comes from John Kim with B M O capital markets. Please go ahead.
Thanks, Good morning hope to get all going well, we managed to hold occupancy in rates relatively stable in April.
But as we navigate through this recession is your strategy to hold occupancy and prioritize that's or or or would you rather prioritize rate.
Sure Good morning, John I'm alive, and take that one hi, John Good morning, we definitely are focused on occupancy I mean, why we always want to balance what the rate is we really do believe that during the time of uncertainty and a significant.
Job losses that we need to keep the buildings call. So we right now are like many operators you know offering a lot of different alternative to renewals. We have seen our retention go up and as I indicated in on the call. We are seeing our new lease rates come down and our renewal rates have have decreased slightly as well.
So occupancy is definitely our priority.
And I just wanted to double check the new and renewal rates have reported for April does that include the impact of concessions and are you offering any concessions on on renewals.
Yeah. It would include the impact of concessions, we are not offering concessions.
We are.
The rates flat.
On on 12 month renewals our rates are flat right now.
Mark I think in your prepared remarks, you mentioned the may when collection rate at 90%, but.
But that was a relative to recent levels and I was wondering if you had the numbers have there been collected as percentage of what was contractually due.
Because it looks like you have about 2% that are either drink return and deferrals currently.
Yeah, Hi, this has been an interesting thing to watch is how people collect versus collected versus percentage of normal but.
We I can give you through this morning's numbers. So through this morning for me, we've collected 95.8% with about.
17 basis points of deferred which is about 99% of our pre coded historical collections.
This day in the month, so if we look back last 12 months I.
I might be more detailed and you're looking for but is that does that answer your question.
That's great. Thank you so much maybe just one more delinquent tenants. How are you are you working with that I'd love to pick them or is that an overlap.
Oh, Yeah, I'll take that one and this is Dan we do have a halt as addictions and all states, except for South Dakota, and then obviously there are some federal restrictions on those properties that are encumbered by agency debt. So right now with delinquent tenants. We are trying to keep our lines of communication very open we are trying to.
Get them on payment plans, we're offering waivers of lease break fees and we're also starting to just kind of a queue up what evictions would look like once the state's open back up for filing.
Well they would be treated as part of your occupancy figure.
Ah Yes, right now you have built there they are reflected in occupancy and then also you know the the counter to that as they reflected in the bad debt.
Okay.
Thank you so much.
I mean, John one interesting tidbit.
The of the roughly 100 basis points of deferrals that we had for April.
About 75% of that was contracted to pay in April and May and we've received two two thirds of it I think yeah, I think 40% of it has already been paid in April.
That's great. Thanks for the color.
Thanks, John.
The next question isn't Gaurav Mehta with National Securities. Please go ahead.
Thanks, Good morning.
First question on the expenses I was hoping if you could provide some.
Some more color on how are you expecting a real estate taxes that to trend in the downturn and open the lapping last quarter call you talked about the non tax expense pressure that you were seeing some of the market's maybe what some more color on.
Expecting to happen this year.
Yeah, I, Unfortunately, a and good morning.
Fortunately, what we expected that the taxes that were are owed in 20 will get paid.
So that that.
The process of contesting knows is is a multi year.
Process. So our expectation is well, we'll pay what we've got budgeted and our expectation as.
That municipalities, we'll be looking for more revenues not less going forward. So I think you know across the industry taxes are a real issue.
Okay and second on the on the cap that side Mark Yeah.
Are you, calling up asking you have talked about.
How some of your secondary tertiary markets guidance can go up a pretty quickly and in downtown or maybe in a talk about what your expectations are for how the valuations will hold up in some of your secondary tertiary markets.
Yeah. It's a great question I mean that honest answer is we don't know yet because we haven't seen much in the way of transactional activity really anywhere outside of kind of paper.
Trading bonds and so forth but.
Anecdotally, we have had some interest you know we always get phone calls from folks with interest a lot of that is 10 31 generated so I would imagine that all taper off as we get through the expanded period I think the government funding you go through mid July so they expanded the window to name other properties.
So a lot of the 10 31 activity you're seeing now was sold in the first quarter so to speak but nevertheless, we have had some non 10 31 interest in some of our assets in those markets and I would say pricing is.
In line with what it would've been in February and again, I'm small sample size.
I went to offer in agreed price are very different things, but our view broadly is that asset values are not a lot is going to transact.
For a you know a quarter or two and then when things do transact, we think there could be some pricing dimunition, but not a lot I mean, there's just a lot of capital out there and I think that that's the theme that we saw in the last a year in particular, which was a lot of interest in tertiary market assets.
May well continue I'm, just because of though the weight of capital out there.
Okay. Thank you that's on the hub.
Thank you.
The next question is from Alex Kubas set with Baird. Please go ahead.
Good morning, how barnwell.
Good morning, I was hoping I was hoping we could dive a little deeper into your guys as our value add program. How many units are you guys. Redeveloping today. If any are you planning to begin any new renovations just wondering kind of what you're seeing on materials labor front any color would be really.
Yeah. This is the N., we have a about three projects and I would say those projects encompass around 900 units that are currently undergoing value add maybe a little bit more for projects. They're all in different stages. Most of them are being done as the units turn which has slowed down a little bit we are continuing with the value add rent.
Patients on the turn we have reassessed all of our value add both from a physical feasibility and the financial feasibility. So you don't number one can we accessed the units. If there was occupied renovations going on is that feasible right now should we be making alterations to common areas with.
You know current restrictions and social destined thing how how available is that the labor force and contractors to execute on it and then from a financial standpoint really trying to think about you know with the market uncertainty and uncertainty and where the rents are going well, we'd be able to get the premiums that are required.
For the additional investment in the property. So we feel very confident about the projects that we had undertaken in the and the pricing power that they are delivering it particularly given the high retention rates an occupancy that those properties.
But we have put on hold some of the ones that were still in the planning or would have started this summer.
To just see a little bit more aware that where the market takes us and we'll probably re underwrite those with the newly starting rents and expected premiums.
A little bit once we get a little bit further down the road and a in the.
Downturn here in start seeing some positive rent growth.
Thanks, and that's really helpful. I'm, just kind of turning to your guys is broad thoughts on the current environment curious if you believe that state wide shelter in place orders have a material impact on the demand do you guys at sea and you know is there.
Big variation between you know what you're seeing on the renewal or new lease right across the states that have or do not have those orders I'm just kind of trying to gauge what you think the impact should be as we kind of turned the page and we see some of those orders start to lift across the country.
Yeah, I mean, I think that the short answer is we've seen a massive fall off kind of across the board I don't think if you could discriminate well between shelter in place per se and not but.
Yeah, we have seen traffic pick up a little bit more in the in the states that are are coming out of it where you know people where restaurants are starting to open or you know maybe there's some some discretionary kids back in school I think a few of our states that left up to independent local districts to make determinations.
But I think fairly across the board, it's been fairly balanced on both the traffic fall off and retention rates. So yeah, I don't think theres any material.
Differences between how the about how the markets have reacted.
That's helpful. And then just one more if I may have you guys have seen or do you anticipate eat more mezzanine loan deals has the capital markets as Steve jobs, I mean, if those didn't materialize. How would you guys is returned requirements change.
Yeah I. The short answer is I think it is possible that those types of deals become more readily available or we become more competitive and in.
Winning some of those and from a return perspective.
I I think our overall guiding principle would be the same which is in general we're not a financial investor per se. We're trying to get to long term ownership I think I can imagine circumstances, where we could be a pure financial mezzanine investor.
In this environment, but a in general I mean, we're always looking to grow distributable cash flow.
You know increase the quality of portfolio and so with and we also have finite capital so our.
Our return hurdles.
We are probably going to go up a little bit cause our capital capitals precious.
Great. Thanks for taking my questions.
Thank you.
The next question is from Rob Stevenson with Janney. Please go ahead.
Good morning, guys Intermark when you look at the a full month like April how meaningful have been the increased operating expenses related to increased trash utilities and other cobot related items have been made presumably some of this if not all of its been offset but what's been the actual impact.
In terms of the actual dealing with this stuff in terms of expenses that otherwise would have been more marginal that have jumped up as a result of this.
Yeah, that's a great question and one that we're watching closely. So you know as you can imagine some of those expenses lags such as you know where we are expecting that there are potentially higher utility cost because everyone is working at home trash recycling those kind of cost you know they do lag. So we will start seeing those expenses a little bit more in may.
And probably have some better color then but at this point I don't think they've been material enough for us to really have a a focus on them other than making sure that we're taking care of them and that the buildings are in good condition and that the trash isn't getting removed and and the residents are being serviced and I think you hit the nail on the had which is we are.
Really trying to offset any increase expenses in certain categories with expense savings in other cabin categories. Just like we're watching the revenue closely and and trying to match the expense you know reduce expenses accordingly.
Okay, and how how much are you guys spending or to acquire new tenants and what does that likely to go up to you know over the next couple of months as you deal with sort of a week or operating environment for attracting new residents in.
Yeah, I think so that's another great question. We you know we track really closely our marketing expense or our cost per lead and cost for at least we have actually seen those decreasing we have we implemented a new software solutions, where we're tracking that a little bit closer and really focusing in on what the you know best return.
On investment for the dollar so we've actually seen our marketing expense than that.
In that category decreasing and expect that to decrease a little bit a and have budgeted for to decrease further as we move throughout the course of this year and we are not offering concessions I mean, maybe here and there we have some specials to get people to renew or to get a new lease on a certain type of unit or at certain buildings, but we.
Haven't seen any dramatic increase in the cost in fact, we probably have reduced our cost of lease.
Over the past a six month with an expectation that that'll continue as we hone in on what the best use of each dollar is.
Okay, and then for those that are not renewing with you where are they say that they're going I mean are they go into another apartment or they take advantage of the mortgage rates and buying something or the doubling up because they've lost their job or moving back in with family where are they going if they're not renewing with you.
Yeah, then the number one and add color if I if I.
If needed but the number one reason is usually they are changing locations or they're buying a house.
Okay.
And we have seen that we have seen people who are getting roommates. You know that is become work more common and and as a strategy that we're you know thinking about how we can invest position our two bedroom units for for people, who may not be able to afford the one bedroom in that building, but couldn't get a roommate.
And so that that is something that we're tracking a little bit more closely now that we hadn't been watching in the past.
Relative importance in 2020 of [laughter] of roommates is is that higher.
All right and then last one from me Mark what made the preferred more attractive to you guys to buy than the common.
When you bought back to the shares.
How did you guys think about that.
Yeah, you want that John Yeah, So hi, Rob This is John.
So we looked at what is the yield were paying on that and Oh.
What is the yield to call to where we can call that.
And you know we're doing the math there we were buying the back at about a 10% yield to call. It. It also improve our net debt plus preferred leverage metrics. So those were all very positive.
Qualifiers as far as determining why the buyback the preferred instead of a common.
Okay. Thanks, guys appreciate it.
Thanks, Rob.
Again, if you have a question. Please press Star then one.
The next question is from Buck Horne with Raymond James. Please go ahead.
Hey, guys. Good morning, I'm wondering if you looked at the competitive supply situation in markets like Denver in Minneapolis recently, if you got any data points or anecdotes Howard developers that are actively in lease up reacting are you seeing.
You know concessions that are disciplined are disciplined or how do you think the pricing environment.
Belts for those those are those guys that were caught in the middle of lease up during this.
Yeah, Matt a great question, but good morning, I would say that.
You know discipline as a difficult word to a pine on but I I think they're doing what anyone would do in a situation where they don't have a stable deal and that is trying to get it stable. So depending on specific location, we've seen varying levels of concession I would say, it's it's worse in Denver than it is in the twin cities both of those.
As markets have a lot of supply coming this year and there's projects that are underway that remain under way and in both instances but.
But.
Definitely we're seeing concessions I think and Dan Denver's that the market, where I think we see it and every asset in Minneapolis, It's similar to what we've said before which is there a few submarkets. So.
You know downtown in northeast Minneapolis in particular have a lot of supply and a lot of concession activity.
The west and where our are caught asset is any dine out our are really probably the three most concession rich.
Markets in Saint Paul is is a little softer than it's been historically and we have an asset that's in lease up a block away from hours, which again, we knew it was coming.
But.
They're looking to sell right now, which is probably not exactly how they were penciling it out when they do it up.
Okay. That's helpful. Thank you switch gears a little bit.
The turnover dropping.
So much or you resident staying in place I mean, do you anticipate a significant deferred maintenance item or deferred maintenance expense that.
Just I don't know if he turns shows backup in 2021 or maybe too early to estimate what that may be but have you thought about how maintenance repairs expense flow through this year and what you might have to catch up on next year.
Yeah, we're monitoring that closely so a couple of things that we've noticed I I guess I would say that we're expecting that if the expenses both on the turn costs and the you know the turn costs will be delayed a full year, but I know a general maintenance side, we're expecting that we'll see those kind of come around at the end of this year. So we have noticed too.
Two things one are the amount of work orders coming in is it is down significantly into the amount of work or is that we can physically execute on n. and getting into somebody's unit with social distancing and and resident preferences are also down. So we do have a a backlog of work orders, we do have a plan to execute on those.
When things start opening back up and as I mentioned, we are doing several work orders kind of remotely assisted where we might drop off apart and provide a video or <unk> or walk or rather than through sept that simple repair. We do plan on one of the things we plan on doing when we can access residents units again is what I would can call sweeping all the units sold.
Making sure that we get someone from maintenance.
In through everyone's unit to just check and make sure that there aren't any weeks that are on reported that furnace filters have been changed and given the heavier use some people's apartments. During this time when their home more that's something that we feel is important to ensure that there isn't long term deferred maintenance or kinda backlog of cost that we see in 2021.
Great. Thank you.
Thanks Buck.
This concludes our question and answer session I would like to turn the conference back over to Mark Decker for any closing remarks.
Super Thanks, Gary.
Thanks, everyone. We appreciate your interest in Iraq, GE, and we'll hope to see you have virtually in every meeting in June.
Ah and stay safe everybody, thanks very much.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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