Q1 2020 Earnings Call
Ladies and gentlemen, thank you for selling blatant look on the beach, what's your wanted to 28 H.T. Holdings Inc. earnings Conference call.
Participants are in listen only mode. After the speaker person sanction <unk> answer session. So if your question during the session you want your press you start in the one your telephone please be advised studies called frenzy in recorded and I would I like thought the conference but to your first pick a date mislaid how the person. Please go ahead.
Thank you.
Morning, and good afternoon, everyone welcome and thank you for joining <unk> Holdings first quarter 2020 earnings call.
I'm joined by the if she is close to you.
Hi, good even taking them in.
That's usually go through financial [laughter] before we open up for your question.
Going to that can be found no, but yes, I first dotcom.
Before we get started with todays call I would like to make the following remarks.
A replay of this conference call will be available.
Like the edge I first Uh huh until May 17.
In addition, our earnings press release will be available on our website.
The Edgar system I think stupid.
Okay.
That's a reminder, on this conference call will discuss matters that are forward looking in nature. These forward looking statements are based on our current expectations about future events.
Colluding DHX properly.
Even in share repurchases and that's true payment.
For the tanker market in general damaged ultra high rates I'm absolutely utilization.
Well, the economic activity well protected.
Trading patterns anticipated level of new building of scrapping.
Checked it drydock schedule.
Actual results may differ materially from the expectation that's reflected in these forward looking statements.
Oh Gee to read our periodic reports are available on our website on home [laughter] Edgar system, including the risk factor same these reports.
More information regarding risks that we think.
[noise] looking out the piano highlights EBITDA for the quarter came in right I'm 20 million I know nothing of 72 million or 49 cents per share.
Adjusted for noncash change in fair value related to interest rate derivatives up 12.6 million nothing.
85 million or 58 cents per share for the quarter.
That's a new restaurant in the company 15 year history.
Well, thanks for the quarter was 19.8 million or 8100 per day average for the fleet.
Average rating.
Hi, 900 per day for 29 tea.
The increase mainly related starting to verify consumables in relation to IMO 2020.
She need for the corner.
Why free million equal to 1700 per ship per day.
Moving over to the balance sheet, the corridor and it was 76 million up cash.
During the quarter with pre paid 58 million under the ATM I'm real credit facility.
In addition to 14 million related to scheduled installments.
The pre payment was made under the revolving credit facility traction on maybe Robert.
Current availability under our old revolving credit facilities, if Congress 36 million, putting total liquidity at 212 million.
Financial leverage it still whereas when interest bearing debt to total assets of 41% based on market Valley furnishing.
Subsequent to the cooling around we agreed to a 36.4 million financing on T.H.T.J. or whether it's currently under Danish ship finance.
So new theme direct continuation of the existing along with a five year tenor and we'll have final maturity in November 2025.
The new has a 20 year repayment profile.
Bear an interest rate equal to LIBOR, plus 2%, which compares favorably to current average of 2.7% to 7%.
Looking at the cap rates, which right at 128 million in EBITDA.
Ordinary debt repayment Sashaying first amounted to 26 million.
47 million was paid in dividends.
Threemillion was used in scrap around maintenance Capex was 58 million was used for debt prepayment.
Changes in working capital amounted to 13 million on the quarter, and then with 76 million of cash.
But not so I'll turn the call over to sign.
Thank you laid out.
That's you could see from the cash rich, let presented our capital allocation will focus on two aspects.
Well, returning cash to our shareholders to investing further in our older bit healthy balance sheets.
Yeah for the first quarter, returning 50 wanted him to shareholders in the form of cash dividend or 35 cents per share.
Representing 60% of the adjusted net income of 58 cents per ship.
The dividend March four two consecutive quarters with cash dividends.
Overall, the priority was to invest in our balance sheet, my p. paying 58 million of banks it.
This has been up quite sort of holding crunch in a credit facility I'm kinda such be rebuild.
Pulling this or interest bearing debt estimates it was 808 million.
We are not allocating capital towards the buying ships.
First we appreciate the attraction order perspective cash return for ships in that 10 to 15 year age bracket.
No through the person that creates a new for us.
That's for brand new ships are placing orders.
No I didn't find crisis, north technology to yet present attractive opportunities to invest.
In conclusion, you should not expect these key to employ capital towards peace investments at this time.
The covert 19 outbreak is impacting our business in several ways.
The main operational challenge this relates to three areas.
Firstly as a result important policies and restrictions imports to embark and disembark crew our seafarers such thing on board longer than originally planned.
Hi, Steve fares are demonstrating understanding incorporation and started servicing our services our computing uninterrupted.
We should take this opportunity to take them for their fantastic afford sensor pork.
Secondly, it could prove challenging perhaps applies to deliver two ships.
As far the interest Peace River. It traded imports is such a Singapore, which are you have so far it's a so far experienced very limited impact.
We should think both Aristide Ferguson's forestar for good preparation, allowing our ships to create as planned.
Thirdly, the current production and consumption refined products, that's called short stories tanks rapidly filling up.
Consequently, and delays to discharge the cargo could be experience.
These delays are forced to floating storage I paid for by declines through the most rates or pre agreed agreed rates to store or.
[noise] no to their operational highlights for the quarter.
Following on from a very healthy fourth quarter or 20 liking. The first quartile. This year continued on a strong though.
Although it might be tough getting used to for our investors the market. During the first quarter was another example of a significant productivity.
As we have suggested many times, we encourage investors to focus on periodical averages and importantly truly matters the earnings per share.
Our spoke test was around six to 6004 other the day during the quarter.
Combined with a good showing from our ships on time charter with 54000 per day during the period. Our fleet earned an average six to 4004 <unk> per day in the quicker.
We have as of today booked 6% to 6% or spokes capacity for the second quarter attended about 10400 per day.
The significant step up from the prior two quarters.
Everyone that these team continued to work hard and efficiently both onshore and onboard our ships, resulting in stable and won't be believed to be very competitive cost.
Well thanks for the quarter was 81, another today also reflecting a role maintained quote activity.
We haven't even competent organization and our DNA was 4.3 million for the quarter.
As you know subsequent to quarter and we have entered into fixed time charter contracts for six or ships.
It is in line with our strategy is to try to secure some level of fixed income when rates are elevated yet supporting business opportunities for our customers.
[laughter].
Average daily if I ever for these six ships is six to $7300 per day.
Generating significant cash flows and being highly profitable.
In fact, these six time charter contracts are expected to generate an EBITDA contribution or about 121 million during the from contractors.
Five of the six ships have older to deliver into these contracts with the loss shipped to plan for delivery later this quarter.
It's also note that five of these ships are in the mature end of our fleets, thereby improving the average fuel efficiency for the fleet remaining in the spot markets.
We believe the size of the is key to offer ample opportunities to invest somebody that's a slow us having sufficient size to service clients.
Importantly, in the context or the size and the decision to secure this is time soccer.
We believe it demonstrates that the choice like this well have a meaningful impact on the company's course over the clinic workers.
We wrapped up these contracts oversold 10 days proving that a little can switch to seize opportunities the weather for sense to turn to both quickly in anticipation of changing curves.
Following this we now have 10 should tell our ships will transfer to contracts.
Well the four ships a fixed base base rates at 31500 per day leverage with profit sharing structures.
These ships participating strong markets and demonstrated by their average earnings enroll north of their base rates during the first quarter.
And with that over to trigger.
Thank you. So then.
The past seven months have been remarkable into tanker market.
We came into the fall 2019 would have clear and well founded expectation of a healthy tanker market ahead.
Fleet growth was moderate.
Oil inventories have been drawn down and the total wireless expanding with the U.S. and other Atlantic exporters going from strength to strength.
Freight rates were moving up decently and by the end of September had reached 40 to $50000 per day.
Then rates skyrocketed following the sanctions of the Costco vessels and some rumors about blacklisting of ships have been called on Venezuela.
Rates cooled off later in the quarter, but DST still delivered a record breaking fourth quarter.
In the new year, the roller coaster ride continued with the cobot 19 pandemic lifting no Costco sanctions.
Ethically ill timed price war between to sell it isn't the Russians.
Oil demand meltdown, leading to the massive overproduction and the floating storage will answer.
So far this year, we have seen spot rates under $15000 per day and over $250000 per day.
No one did or could have predicted this wild sequence of events and incredible swings in the freight rates.
And this in fact is a huge validation of our strategy at the HD.
We operate in a market that is hard to predict and we must expect their unexpected both positive and negative surprises.
And that's exactly why we always strive to protect the downside with giving out without giving away the upside.
We have now back to back record breaking quarters for the HP.
And as you can see from this slide or from table one in highlights section of the press release.
The current quarter looks even stronger.
The table shows that we recorded to date have secured revenue from time charters and booked spot business over $164 million.
This is $12 million more than we generated for the full first quarter.
And as you can see from the second last line, we'll still have 584 spot days to fix.
The quarter is looking good indeed.
We do not know what the second half of this year has in store for us for once there is actual divergence amongst the market analysts.
As one more one market or source traced it we have never had so many factors to try to factor in.
In our opinion deciding question for the near term will be if there are more ships, leaving the trading fleet to do stores Judy than the reduction in ships required to transport to cut back on oil production.
The key factor to watch will be the contango and the subsequent need for further floating storage.
Either way.
To pull back problems, whether that will be whenever that will be we expected to be.
To be shorter lived the normal due to unusually constructive fleet situation.
The order book is is historically low address 61 deal to season order equivalent to 7% of the existing fleet.
In the other ended there is a significant number of Vlccs now just waiting for the right time to be face though.
26% of the VLCC fleet, this 15 years or older.
So to sum it up and not that it will come as a great surprise to you. We believe DST is very well position no matter what the next turn of the tanker trade will be.
Firstly.
We continue to run a we continue to run a very cost efficient operation.
Secondly.
Quarter to date, we've secured more revenue than we had the entire first quarter I was still have further upside with 584 spot days to fix.
Thirdly, we have secured significant fixed income at good levels by chartering out some of our older ships.
This gives us a great base to build on over the coming quarters.
The 10 time charter ships are estimated to generate minimum 47 million in quarterly revenue in the next quarter.
So roughly speaking you can say that's a little more than one third the fleet will cover about two thirds of normalized cost.
Simply put.
By taking on these time charters, we have extended the benefit of this strong market and put the company in a great position to continue to generate attractive returns for shareholders.
And finally, we expect near term cash flow will enable us to not only continue to return capital to shareholders, but also to prepay additional debt.
And thereby paved the way for stronger generation of distributable cash flow even in more normalized freight rate environments.
With that we'd like to open up for your questions operator.
Okay, ladies and gentlemen, I will now begin to question answer session and as a reminder, if you wish. The other question. Please press star in one year telephone in the training to be announced.
Okay and our first question comes from the line of.
Randy Gibbons from Jefferies.
Hello.
Okay.
Howdy gentleman how's it going.
Great. Thanks are you.
Good well yeah congrats on.
Another record quarter and looks like.
Ill currently be our third consecutive record quarter here so.
Also.
Yeah.
The balance sheet of low income statement hurting time, Carter, who frankly recruit current strategy. There. So wanted to follow up on those are also said how many are for floating storage.
And who are the counterparties on them and then you mentioned that five of them has already started the Carter basically six one still operating on a spot market anchored starts that contract for here this quarter.
Yes, so as a good question Randy.
These six ships three of them a fixed.
Within our company and three or with the creating outfits.
None of them, a sort of yet to sit still in store oil but.
One could expect that to the cargo set the some of these ships have already listed will be steps to stores. So time will tell us as things go forward. The six ships is currently completing her existing which under the plan is to deliver to the client.
After completion of that.
Perfect Okay.
Hi, guys and then just one more question coming.
Moreover, all access layer with your shares trading.
Pretty far below and as well.
At the beginning of the year right. It doesn't seem like you're getting a premium you probably deserve could we start dividend payout, so going forward or you're hoping to either.
Your return of capital policy of 60%.
Or using more of this task for share repurchases from dividend, how do you balances.
I think.
You Shouldnt really expect any changes in the kept allocation policy will have this NIM of six cents a place for five years.
And we think it has served.
The company and as shareholders well, it's a reasonable a split between return so capital to shareholders and their ability to.
At certain times in the cycle to expand the business and in other times to invest in the balance sheet.
And as Weve.
Sponsored on the.
Tradeoff between dividends and buybacks.
Our bias and it can see it from past performance, we tend to focus on the cash dividends and then of course shareholders can increase their stakes where their dividends.
We have certainly at times.
Hi, backs as well and when this being.
Fantastic opportunities or or disconnects between the underlying business and what's going on and the stock market.
So I hope that answers your question.
Yes.
It doesn't and there were some concerns that.
Be reducing that could see resent payout. So thanks for clarifying that matured, we have enough for dividends anchor debt components.
Certain first quarter. So that's again look okay.
Thank you.
Okay. Our next question comes from the line.
Nolan from Stifel. Your line Sullivan.
Yeah. Thanks.
Morning, guys.
Sure I had a couple of questions.
That yeah.
In terms of just where we are at the moment, obviously VLCC spot rates have fallen a good bit here recently, but.
It seems like in the last few days there.
On the spot fixtures I've seen there's been a pretty good floor between 60, and 50 and 60000 today.
Is that right is that sort of what you're seeing and could you maybe talk to is this just sort of owner resistance or is it doesn't appear to be pretty good demand.
At those levels.
Thank you certainly see the cuts from open plus a hitting the market because the shipments so the middle east.
The number of cargos is.
Definitely down from what you've seen over the past the quarters.
And so I think that the adjustments in the in the spot market is very much a sort of a reflection of that.
And I think the levels. So sorry, this right, though as you say that I think given all these circumstances in trouble sensitive.
Almost a pump to experience, though in this past six months, it's very hard to very clear view on where things will be next week and so forth but.
There's a bit more cargos coming into the market today, and I think a tough to start at least in the short term vessel the old rates.
The current levels.
Okay. That's helpful.
And then I was hoping maybe with respect to the 110000, a day that you've booked so far and the.
In the second quarter could you maybe talk to if theres any.
Cadence or or sort of a lumping of those contracts.
You know or never them early or or more than recently.
Such that it might impact what becomes available now.
Relative to.
The market here so.
I think in general you know with our fleet.
We have sort of ships bits of virtual decide to us it's a fixed in the markets. So.
Not really seem to be.
Heavily focused for its certainly leaks and also could be sold in the exception. So that's obviously I think what people.
Tend to Miss of its the time lag in fixing Carlos the time lag in the cost of bunkers.
How far away are you willing to fix the cargo to wed actually revenue start to come even though this.
I think people tend to look at indexes.
Way way too much I don't really appreciate how the business operates.
It might be challenging for the people on the outside to understand the thank you we will develop them.
Both investors and analysts to engage with us and try to learn more and understand I agree to works and I think it's not the only so when do you book your second quarter.
Voyages.
If you will we start building the coverage for any given quarter. It really starts with a tale of the preceding quarters voyages if that makes any sense. So.
The first sort of known revenue in the second quarter that was business that was booked and maybe even in December and January that always doing most of their performance into first quarter, but they extended into the second quarter.
So.
So this as an example, right now we have at least three ships that are fixed on spot voyages I will not complete until way into July so thats into the third quarter.
So that's the start of the coverage for third quarter. So once you take that into my and I think is it a little bit easier to get your head around it and especially if you then tied back to what we said about the volatility of freight rates over the past several months.
So if you look at the first quarter.
In the middle there there was six weeks that averaged just over 20000 Boes a day.
Sure once the price for started thanks for calling to skyrocketing again, but it's been incredibly volatile. So there is definitely a significant period and there were ships were showing up the to below. The then things were fixed and the rates, where we are quite different than what we've seen in the past few weeks.
Yeah, No that makes it then and then lives it for me just curious.
Yes.
Yes, obviously with a volatility there's been quite a number of failed fixtures.
That's something that you guys experience much and.
Yes.
Is it still is.
This is still factor.
Yes, we have experienced that as I am sure all the other players as well and it's really.
A bit of this grace for industry and then the routine is that do you agree for a the payment and the terms for as fluctuate, but the charter has then.
Typically 48 hours to clear to ship through the system from a quality assurance perspective.
Well once rates skyrocketed like we saw last fall and also and so far this year.
If things were put on subjects at very high rates and then you saw the rates coming.
Sharply off of that.
There was really a threat made to the owners that if youre not going to give us a better rates were not going to lift subjects. So.
This has been a factor from from most charters with a few very few honorable exceptions, but you see both traders.
And oil companies.
From the east to European City Americans have been bid practicing this it's a it's unfortunate but it's an issue.
Okay, and there's no way around it you just at the low because I guess.
I think it's very hard to two.
To work around that and to sort of demand any earnest money or give no no sort of.
Time to clear to shift at all that Thats very hard to do so some people have been talking about making a shame list and to publicly list the worst offenders, but nothing has really happened as of yet at least.
Yes, Okay, alright, great appreciate the time guys.
Thank you.
Okay. Our next question comes from the line of Mike liver from level Research your line some often.
Hi, Good morning, guys how are you.
Good thanks.
Im just curious with regards to the storage inquiry you guys were sitting in our saying.
To see the the period inquiry extend that all from maybe a six month term too.
Something closer to a year I know the.
Service flatten the bed. So it suggests that you probably haven't but I'm just curious what your what you're hearing from from your customers in terms of their needs and then specifically if we think kind of six months out.
Six months out more resolved the bulk of the initial storage.
More closely associated with kind of pre OPEC production cut production levels.
That's it all start rolling off then.
At the middle of.
In the September October timeframe, how do you think about positioning your fleet gorgeous or the mark to market impact of that that rolling off in terms of.
Carter's looking potentially for to extend or looking for more optionality. It looks like we're going to get a little bit of of course developing there. So just curious the dynamic kind of the mechanics of the forward spray what you're seeing in terms of lighting.
And then how you see that kind of fluctuating to that the fleet as we move in 2020.
I think it's fair to say the vast majority of inquiries for ships to store would just for several tenders. So three to six months.
That is still the case, but then the rates of course have been moving a bit with the contango.
Sort of shortage for 12 months like we have six.
I like via fixed really far a few between.
And the hence we felt this was a great opportunity when it was possible to try to put some of these Tibet. So obviously multi only well should go until amongst the.
It's a hardly any liquidity so beyond that it currently and the market.
Got you I think it can you talk a little bit about how that how that originated as that is that a specific relationship. The DSD has like as of this open tendering process or.
Not open tendering was that a competitive process from a rate perspective, but it's a little bit about how you were able to grab that much like at such a rate when we haven't really seen to your point.
That much business done at that kind of term thus far.
It's certainly not the tender business and it's really the you know how our trading desk is working in the market.
I work with customers on the brokers and Oh, we still do business development and so all of US are involved in this on the slide to stretch it icing to see how we can or will picking it up it so so.
No Thats merchants, we will share with you on that so sure fair enough. There's one more on I'll turn it over.
I have a crystal ball, so I'm not going to hold you to it but just curious if it ever debate around the depth of the storage trade.
Around.
Yeah, exactly how much could we see structurally put on the water I'm just curious as you look at the market today.
Would you anticipate peak floating storage in 2020, big markedly higher than we're sitting right now.
I would think so I think a fair amount of the ship said were fixed for storage haven't really gone into storage duty.
Some of them have done spot voyages that are to be followed with the another list or loading and.
My main point, if you say, it's 78 issued a vlccs fix for storage.
They're not 70 or not all of them have gone into storage. So just by the fact that more of them are going to trickle into the storage business I think you'll see it.
Higher number of ships in actual storage later in the year and I'm wondering.
No.
Alright, Thanks, guys I appreciate it.
Thank you.
Okay. Our next question comes from the line of Omar Nokta from Clarksons Platou.
Hello.
Hi, Thanks, guys.
You outlined earlier in the call that they know the strength that we're seeing currently underway goes well beyond Twoq gives you.
Visibility for the rest of the year I think also with that with a lot of cash flow spoken for or at least visible.
It gives you a chance to be a bit more dynamic I think.
When you think about the fleet makeup is buying euro quite clear.
Can you are opening commentary talking about investing in the balance sheet and.
Paying back shareholders I know growth isn't on the table at the moment, whether you're buying older ships. Just it may give you got to our OE, but it doesn't help the age profile and then there's a lot of questions about Newbuilding technology.
What about just say fleet renewal in general what are your thoughts on selling say at an all four built VLCC in today's market, where we've seen a good amount of buying interest.
And then maybe taking the proceeds in replacing let's say a 2014 built so modernizing along the way, but keep in the number of vessels unchanged.
Okay, I residual RFP, if it's a blessing of course, although some of them are until the fixed will that the this look at the numbers c. So four ships to them MRO totals time charters you know that's significant earnings so the cash flow opportunity for these assets is phenomenal and that's the problem to be overseas.
And why people as had been looking at buying these ships, so they've been sort of more focusing on making as much more positive. It goes on these assets and.
Trading for long.
This is.
Not too dissimilar from for what happened in 15 16 that.
We're always open to divest older ships and it is in effect so quite a few ships at that point.
But there is still also still elected to retain some of them at this earn good moments and I think the benefit the hindsight that we'll still have positioned levels better economic position done letting them go at the time assessment process.
Significantly.
During 16 so.
If you look at our track record.
When we have invested that we've been very aggressive in a short time spent.
Prices have been in the truck.
And then they stopped investing we don't typically so just to.
For the sake of its evolve is picking up chips. So you should expect them all the same from us and they'll be a time, we will extend again and the secular when that will happen it's been hard to say.
As we said before it could very well be that we are shrinking the fleet before we're expanding the fleet than that and again, if you look at our track record.
Im Sabine one step back in terms of size of the fleet and then three steps forward. So did the core is that we think theres a buyers.
Part of the cycle was a buyers market and there's another one is a sellers market.
We don't want to be sellers in a buyers market buyers mark.
To put it that way so too.
By a young cheapened cell and I will ship at the same time, we'd much rather prefer to sell the ships in a high market and then wait till its low prices and then we'll buy new units.
Okay. That's fair and then maybe just thinking about than the I think maybe it was on the last call you did mentioned being bit more open to selling some of the older vessels I might be mistake on that but it rings about what do you think about.
We got to get into 2021, and we're looking outwards, obviously there is no newbuildings.
Correct.
And you have plenty of flexibility with the deleveraging process that is well underway.
How do you think about expanding the footprint beyond just the not saying, it's just a 27 vlccs at the sizable fleet you have but just in general the what do you want to look for what is that that's going to change your mind about going beyond.
Your existing footprint.
I know, there's a lot of questions on technology and the propulsion systems, but maybe just some color as to what you're looking for that will give you that will that will change your your thought process about growth.
From here.
Hey look at ourself.
Thanks for your company and the.
Now under Capello Sosa leaves us the focused company and.
So that change we will certainly have voiced the market to this.
[music].
Okay. That's fair and then maybe just one more answered that you mentioned not wanting to to be of a buyer and a sellers market and vice versa. How would you characterize the market that we're in today is a buyers market are sellers.
This would be a there's plenty of people I want to buy so it's a sellers market, but as Ryan touched upon.
Well the values for the older ships have come up percentage wise quite significantly. We have also found ourselves in a spot markets where in one voyage you can essentially earned a whole delta between the value of the shipment is rapidly ownership.
Under those circumstances, we have elected to hang onto two ships and collect the cash flow and then.
See whats.
And then perhaps do it again.
So that we've been flextronics rather than sellers.
Across the valleys haven't come up as much as they should should occur in the and the current freight environment.
Got it okay, well thanks for that color that's it for me.
Okay last question comes from the line off Robert Cyvera.
From.
Rescue Laura and then tell open.
Thank you gentlemen.
Congratulations on a very well run quarter.
Hi, My question is what is the status of the one damaged ship.
Yes, so she has been the fully repaired.
She is.
She is then went on some on the new coal commitments and she is susceptible to it makes a few days so.
This repair complete the almost 30 this cycle so.
Okay, that's all that flow.
That's both outside thing up.
Any news on the claim for loss time et cetera.
There will be a 10%, but theres, a we think that.
The it's quite clear, whose focus is either a banker and lever.
Hit by a ship steaming so so that's been presented.
The Counterparties insurance company and.
We'll see how does that all of these things typically take a long time so.
We will report on this in due course, I think some more mature.
I see.
I'd like to complement you on your strategy totally agree with it has a shareholder of well over 30000 shares from my company and.
The as I view it five interpreted your press release correctly, you have virtually de leveraged the equivalent of what youve paid as a dividend.
Almost 50 50, so to speak.
And I love that I'm looking forward into the days when this market as it always does cycles of down as far as rates are concerned.
And if you continue to aggressively prepay debt.
Get us way way down on on debt, we will be extremely strong in the marketplace to take advantage of.
Low asset rates et cetera, and I just want to compliment you guys I Love your strategy and we as shareholders are staying right there.
Thank you very much. Thank you for your support.
Okay.
That's it for me.
Good.
Okay. Once again, if you wish to ask a question. Please press the star in one.
Okay. If there are no more questions. We thank you all for your interest in DHC and wish you. Good day. Thank you.
Okay that does conclude or conference for today. Thank you for participating in the all disconnect speakers. Please send me.