Q2 2020 Safehold Inc Earnings Call
Ladies and gentlemen, thank you for your patience no.
Today's they pulled second quarter 2020, <unk> earnings conference call will begin momentarily, we let you continue to.
Uh huh.
[music].
Good morning, and welcome to see pulled second cool or 20, earning conference call.
If you need assistance during today's call.
Let's start with zero.
If you would like to ask a question. Please press one zero.
That's a reminder, today's conference is being recorded.
At this time for opening remarks, an introduction I'd like to turn the conference over to Jason folks.
Senior Vice President of Investor Relations and marketing. Please go ahead Sir.
Good morning, everyone. Thank you Tiffany and thank you for joining us today for stapled second quarter 2020 earnings call.
On the call today, we have Jay Sugarman, Chairman and Chief Executive Officer markets, Alvarado, President and Chief Investment Officer, Jamie Foxx scheme, Chief Financial Officer.
This morning, we plan to walk through a presentation a detailed our second quarter 2020 results presentation can be found on our website <unk> dot com by clicking on the investors like.
There will be a replay of this conference call beginning at one PM Eastern time today and the dial in for the replay is 86 six she was zero seven 101 with the confirmation code of seven no 7958.
Before I turn the call over to Jay I'd like to remind everyone that statements in this earnings call, which are not historical facts maybe forward looking.
Our actual results may differ materially from these forward looking statements and the risk factors that could cause. These differences are detailed interests you see reports.
Staple disclaims any intent or obligation to update these forward looking statements, except as expressly required by law.
Now with that I'd like turn call over to chairman and CEO, Jay Sugarman Jay.
Thanks, Jason Thank all of you for joining us today.
Well that's agreements in our country been extraordinarily challenging one.
The tragic toll kindred on many families that many businesses continues to grow.
The negative impact your economy has been nothing shred it for Stuart.
Well you got off our sympathies to those affected and our thanks for those working to help overcome this challenge.
We also have been renewed focus on racial quality and equal opportunity.
Can help set us on the right passing a future.
A prosperous United States. We're all are respected we're all can contribute creates the best long term environment for us to deliver shareholders. The full.
Let's say fold unique business strategy.
But we certainly hope the better times ahead for all of our country.
In the meantime, let's leave it safely strategy continues to deliver solid returns even during this difficult period.
A combination of principal safety strategy, great prospects and embedded value positions us to continue to expand our proactive and capture value for shareholders.
Well, they're growing scale enables us to provide increasingly compelling capital to our customers.
Our capital is capital efficient cost efficient and risk reducing.
Our new modern kind of gravity.
Opinions to getting better and should continue to actually better alternative for many customers.
To help them access to low pass capital they need to meet their bills and never turn target.
With respect to acquire wall transaction volume and the overall market has been significantly reduce.
We remain confident you win our fair share and deals that's transaction activity picks up.
I continue to explore new accretive ways to deploy capital to gain market share.
The strong performance in our existing because they were.
Significant dry powder it as disposal.
And the low rate environment, all said, let's say nicely to push fed once the market reopened.
We've been fielding your calls recently as the market tries to find experiments.
Well, it's still hard to predict we are starting to see signs that it should be a more active second half for the year.
Yeah, We got let me turn it over to Germany through the details of theater Jeremy.
Thank you Jay and good morning, everyone.
I'll turn to slide three and <unk> earnings presentation, where we present, an overview of the second quarter.
We're pleased with the performance of all portfolio and business during this extraordinary period.
As expected, we received 100% above ground rent during the quarter, which has given us the confidence to continue raising our dividends.
In addition, solid earnings and the quality of all portfolio has led to strong stock performance keeping us the number one performing wheat today.
So that we were able to close several transactions this quarter and what it's been a challenging environment.
We remain open for business with a significant amount of dry powder that were actively looking to deploy.
Turning to slide four for the quarter's results.
Revenues with 37.4 million to the second quarter up 19% from 19.7 million the same period last year.
Net income for the quarter was 12.6 million.
Up 111% from 5.9 million for the quarter last year.
And earnings per share was 24 cents.
39% from 18 cents for the same quarter last year.
Year to date figures were also strong.
Revenues of 77.5 million up 87% from 41.5 million.
Net income of 30 million up 75% from 17.1 million.
And earnings per share of 60 cents up 19% from 51 cents reported to the same period last year.
On slide five we show historical dividends and stock before.
As announced we raised our dividend by 4% to approximately 64.9 cents per share.
This is the second consecutive year, we've raised our dividend by 4%.
And is consistent with our current policy to grow our dividend at twice the rate of inflation.
Additionally, all stock as being a strong performance this year.
In part because the market has begun to recognize the value embedded in a long duration contractually growing high credit quality cashflow stream significant principal safety.
Slide six provides more detail on our portfolio.
As we discussed last quarter, the real estate industry has significantly cut tailed acquisition and disposition activity in the face of cobot caused uncertainty.
Nevertheless, we closed four deals this quarter totaling $61 million.
At the end of the quota all portfolio stood at $2.9 billion.
Based on all cash in hand and capacity to draw on our revolving credit facility.
We have approximately $900 million of 11 purchasing power to continue our growth.
Next slide you can see the geographic breakdown of our portfolio as we continue to diversify across the U.S. with a focus on the top study of assays.
Slide eight shows our portfolio metrics.
The average ground rent coverage of the assets in our portfolio was 4.0 times this quarter down from 4.1 times at the end of last quarter, reflecting some of the emerging impacts of cobot 19 on some of our customers.
Over the coming quarters, we expect this metric the father reflects the impact of the broader economic slowdown on all customers properties.
Weighted average ground lease to value was 37%.
The combined property values, we use for this metric a based on CBR Reappraisals, which are conducted annually based upon when we acquire given asset.
As CBR he continues to appraise additional assets in our portfolio.
We would expect thought JLTV metric to reflect the broader economic slowdown on the value of our customers properties over the coming quarters.
That being said, we take a long time through cycle will be you have all portfolio.
We continue to believe all portfolio is well protected.
Through a combination of our senior position in the capital stack diversification in the long time nature of our contract.
As demonstrated by our receipt of 100% of ground.
For the quarter annualized GAAP rent off the depreciation and amortization was $155 million.
5.5% yield.
Annualized cash rent.
It was 70 was was it was $98 million, representing a 3.5% cash yield.
Our portfolio is 62% office, 19% hotel and 18% multifamily.
Our weighted average lease term.
Is 89 years.
Turning to slide nine.
At the ended the quarter unrealized capital appreciation stood at $5.2 billion.
Presenting a 12 times growth since our IPO in mid 2017.
Are you see a valuation process obtained appraisals on the properties in our portfolio on an annual basis with a portion being reappraised each quarter.
As such this metric does not fully reflect the impact of cobot 19 on the value of <unk>.
CBR. He continues its appraisal process, we would expect to see the broader economic slowdown reflected over the coming quarters.
Slide 10 presents detailed on our capital structure.
Our equity market capitalization is $2.7 billion with $1.2 billion of book equity.
We presently have $296 million of cash and revolver availability.
We conservatively leveraged.
It's 0.6 times to equity market capitalization, and 1.4 times debt to book equity.
We have $1.7 billion a total debt.
And as we previously announced we closed $106 million of long term financing during this quarter.
The weighted average interest rate about that.
It's 4.0 times.
Which is 150 basis point spread.
To the 5.5% yield of the portfolio.
Our cash interest rate is 3.1 times and all that.
31 years average maturity.
In conclusion safe hold had strong steady performance in the second quarter.
We're focused on continuing to execute our strategy and remain confident in the long term vision of what we're building its April.
With that let me turn it back to Jay.
Thanks, Jeremy So I just wanted to get really reiterate what I said last quarter that.
Long lived assets financing long lag that maybe we are mostly focused on long term value.
All sectors values and interest rates water recycling good assets in good locations, usually went out and our goal for safeguard has got some more high quality have better.
In the top 30 markets.
And creating unique invaluable platforms that investors and customers alike.
Jeremy said, we are still big believers that vision.
Operator, let's go ahead, maybe after testing.
Thank you today's question and answer session will be conducted over the phone.
Ask a question. Please press one zero at this time.
We will take as many questions as time permits.
Once again, please press one zero to ask a question.
We will pause one moment to assemble the roster.
Our first question comes from Nate cost that with Burke. Please go ahead.
Hey, good morning, guys.
Yeah. Good money, one is that kind of dig into the investment activity. I think you mentioned there was four videos, just wondering where where they were the property types rent coverages.
And then it looked like the effective yield of 5.2 was a bit below average. So I just wondering if there was anything to note there.
Hey, it's not a lot us.
So it's four transactions Ah two in the residential space a one in the lab space one hospitality assets.
Consistent with our strategy I think we are excited by the fact that these are actually fortunes options that were all post kogan, So post the disruption.
And I think or percentage of CTV at our coverages reflect that one of the ground leases, we acquired with an existing one and how the short duration only 44 years and because of that the yield is slightly lower which pulled down the ACA.
Okay.
That's helpful. Maybe you guys could you characterize the activity you're seeing today versus a month ago.
No I think you mentioned that you're hoping to see an uptick toward the back half the year, but can you maybe quantify it a bit.
Oh, that's how the dialogue maybe change my last month or so.
So you know as we've mentioned in prior quarters and on this call will you know were transaction based business and if you survey the large brokerage houses.
I think transaction volume is down something like 70% in the quarter.
What gives us optimism going forward is the amount of dialogue with is going on between our investments team their clients in the brokerage community. So if I go back in time, you know kind of April.
Pipeline meetings on Monday morning, Guzman calls were somewhat slow a and you know today there are plenty of transactions.
That we're looking we're prescreening, we're sizing we're quoting we're issuing otherwise.
But we need you know the transaction market to open up for those to ultimately become live deals that we ended up closing so I think the dialogue feel as a whole lot more better that's a whole lot better than it was a month ago and we continue to remain optimistic about.
Q3 in Q4.
Okay. That's helpful and just lastly, how is the dialogue.
Office properties right now.
Just trying to get a sense of how work from home potentially firms, leading New York City, It's kinda seeping into the dialogue.
Yeah, you know we tried to take a very long term view and so were believers in New York over the long term interest use New York as an example, and certainly over the short term, there's gonna be sort of impact on rents and there will be some winners and losers a in the what we think we.
Classify it's kind of the a assets and to be asset.
But we you know at our basis of 300 $400 a foot feel really really good about the long term prospects of owning high quality land.
In various urban markets, so, they're certainly going to be some noise in there and in the office and we're taking that into account in our underwriting.
But we will continue to actively pursue those assets.
Okay. Thanks for that.
Our next question comes from Rich Anderson with SMBC. Please go ahead.
Thanks, Good morning.
And Joe stores today, so hopefully won't get cut off the stock.
No.
[laughter]. So I imagine you mentioned that it's not quite obvious stock has continued to perform very well this year through all this.
Perhaps say a risk off mentality, given the safety of the product all that.
If the counter to that is we get yet we get passed this and you know people start to get more.
Excited about world and you know risk off turns into risk on to what degree do you think that that causes perhaps a headwind to to you guys. Given just the extraordinary level of circumstances in the bounce back that could happen. If we if we get to a vaccine conversation or something like that.
Sure.
A couple of <unk> in your question I'd say first and foremost we do think there's been a lot of.
Progress made in getting people good just through the bone marrow.
And I understand that significant discount that we had been trading up so I think as much as risk all.
Thanks <unk>.
Like the 100% are ramping.
Being at the very low.
Percentage and LTV is it isn't very strongly positive impact on like the.
But I also think we spent a long time give investors and living helping and yeah I understand the qualitative and quantitative measures that.
Oh, good way to understand the daughter company and we think Theres been a lot more oh understanding on the coding.
Wider range of investors, who think that so that's significantly close the gap, where there were still trading at a pretty material discount.
I think or pitches not you know market sensitive. It is this is a better cap.
Its risk reducing it eliminates friction costs.
There are there throughout the Americas or difficult market.
We think though capital should be attractive.
And your investors Oh, Yeah, I think the combination of principal safety the ability to grow a numerical and basically be the.
The largest and only publicly traded company doing a really revolutionizing.
Seven trillion dollar industry.
Makes us very comfortable or for investors. This it's still early I mean.
And what we've made good progress getting people to understand at least double in the with their cash flows which is one of the three big component. We still don't think your growth prospects, maybe unrealized capital appreciation embedded in the oil.
It's really even gotten any attention yet so.
I agree with the rich that you know safety.
Market like this is powerful but I think even more or is as we get more investors to understand the combination that we deliver for customers in a combination of attributes we can do either through investors.
How can I think you'll see that.
There are safe the then.
You're not there yet and and I think that seem to kind of merger were.
Building or.
Validation that our reputation going through something like this and having the right collection members we have.
Hey, you're excited when Americans does come back transaction transaction activity does pick up risk around as you said does come back.
Really reignite the real estate.
Transaction.
And that's going to be good for us. So we may be doing relatively better now I think you know they really were excited about continuing to build the business and just demonstrating the more and more people that this new industry that rebuild is a unique one any very very valuable.
Got it thank you.
Further to that I mean, I I understand the thesis talking about market conditions. So much is about the product as an alternative to.
No fee simple.
But due to low rates cause you concern. It seems the fed is going to protect that you know a low rate environment for some period of time does that make the conversation a little bit more difficult at the margin because because the availability of debt.
Mortgages is somewhat more attractive than they stay there for a period of time.
Good morning, I mean, it cuts both ways.
The 30 years down the 150 basis points since our IPO at 700 basis points this year.
And you know that has different impacts warned it makes the alternatives that little bit cheaper.
So we got the accounts they provide a better capital solution for our customers, but our cost of funds is going down okay.
It was going down we can be more flexible we can create.
And capabilities, we didn't have any public.
Because of rates with lower or borrowing costs continuing to decline.
You know, there's still delivering the kind of or we use that we think are generating.
Very significant out of the every close the deal and as the portfolio gets bigger.
Our diversification increases.
We think our cost of capital with the decrease and that's going to give us flexibility. So through really compete very effectively we think that the fee simple alternatives and still make the kind of returns that got us excited so.
As I mentioned there the merits, we're looking at a lot of different ways. The attack this market.
There's there's already when rates go up and there's raising rates go down it.
Certainly I think.
I think there's very bright prospects ahead, even in a low rate environment.
Great and then last question on the dividend policy to grow at a two X Felicia and.
Do you have an estimate of what your.
Your payout ratio is.
And common.
Okay, sorry for for the read industry.
You, obviously folks any yes and have a perhaps a broader swath of investors outside of the read dedicated community because of the type of products.
It is but I'm wondering what the true cash flow number is as it relates to your dividend and where were what kind of room you have to continue to grow it.
Yeah, I think I think theres three simple the kind of rules that we try to fall. One is we do try to pay a dividend that's <unk>.
Layering into other the inflation right, we do try to pay out all their current cash for to meet the standard.
That ratio is going to center around.
All the free cash flow.
And then the remaining the delta between a earnings.
Cash payout is really an exact reinvested into the solar PV market returns.
It is doing a three pillars is we're going to pay out the current cash flow, we're gonna in effect reinvest.
And the assets grip the delta between their ROI, Dave Antolik cash yield.
And that should drive admittedly with double digit double inflation, the dividend growth, but it's actually allowing us to an effect reinvesting these above market returns as a core part of the business.
I think I think thing that you know when we do have a compounding so the calculations for people they start to see the tire that idea that we are paying out a nice dividends in the current cash flow, but we're also getting a chance to reinvest the excess or is that the same above market returns and let that ride and with that.
Okay.
And then that's kind of how we think about the dividend.
Yeah, good double inflation makes us feel really good but it's also back on timing effect for.
The embedded or away is above the cash flow, that's really creating this long term value proposition.
Okay, So basically 100% payout.
Yep.
Just in terms with other rigs.
Yeah, we're trying to your you're trying to we don't need to.
Well then anything back we have no capex Malta expense right.
Obviously, you know ground leases are very very good beltway, I'm, saying gosh coming in we wish we will return to shareholders.
Got it thanks very much.
As a reminder, if you'd like to ask a question piece present, one zero.
Our next question comes from Anthony Palio from JP Morgan. Please go ahead.
Hi, Thank you.
I guess first question is a his or her it sounds like your deal pipeline is this PERC waiting a bit more but just from like a a practical point of view. It. When do you think you start she things close again pick back up from from actually putting the dollars out the door like do we think that Threeq you can actually you know people last small you.
I mean, maybe for Q4, maybe one Q they start to close or how should we think about just yeah cash out the door in the near term.
What they need to feel like we did you think it's going to reform order they faced okay.
You know, it's well do you guys have seen with us over time somewhat lumpy.
And so that's why we often don't give you guys specific guidance and especially given the environment does go at it becomes a little bit more difficult. So I think that's a fair estimation Q4, Q1, where you start to see things ramp up if you go back to prior crises.
You know usually takes nine to 12 months from the event for the.
The private market the stark that really open back up and so that kind of feels like the end of this year early next year.
But that being said given the dialogue, we're having you know our cost of capital solution an option for clients you could see that potentially happening earlier as well.
Why do you think you can do another $60 million in the third quarter or where some of that the twoq you stuff entered into a precursor overhead.
No. The Q2 stuff was all you know a post on so yeah, you know I remain optimistic that hopefully we can do better than Q2.
Okay. That's helpful.
And then as your as you're looking at the pipeline and just sizing upward. What's happened is there any part of the market that's emerging as either more interesting for you or not whether that's you know property type preference or not or geographic perfect shops.
There are tied to sponsor how to perhaps.
You know I would say the multi space is probably the most active engagement within our pipeline and the reason being as those assets are actually trading that the government agencies are providing both fee and leasehold capital and so although values are down you know we've seen some of the high quality assets trade.
Issues within that space, we are believers in the long term, especially where we where we invest.
Got it and then just wears on on the debt side.
Yeah, they sort of like 30 year type transactions that you all have done with the you know what the rate kind of matching though in terms of the.
The underlying collateral where's pricing today for that both on a going in cash on cash and strong effective rate basis.
Well take that want to it you know or Israel portfolio has been around <unk> percent.
Those are the 3% on a steady rate and you're definitely seeing new deals being quoted threats inside of that.
The last deals have been quite quite attractively priced drives that has given us some flexibility on or pricing for our customers.
Got it you know the market is certainly not as liquid.
And can you know when it.
He goes from one or two deals exactly where the market is going to shake out here, but we've definitely seen.
Your rates fall is instead of the mid threes.
And.
Implies everything right you know said three.
So that's a good news.
You can provide capital to customers at attractive prices, but.
And as you noted that we're going to close $60 million a deal. So it's a small sample set up.
Financings on those positions that were going from and then before we get.
Yeah.
A lot more deals, but it's hard to know other than certainly rates have come down.
Okay, and then just Oh lots from from it had just been more of a detailed one the yields in the quarter. Thank you mentioned for eight effective and then a five two underwritten effective what's the one that we should think about for accounting purposes, but for right now.
Five to it sounds like maybe where you guys think youre and because of a shorter duration on one of those deals and stuff.
A follow up 48 is the accounting effective yield and then five two is our underwritten a yield to have it doesn't have to deal with their duration actually or that the ground lease as a percentage rent costs.
Which were not for accounting purposes, a lot to book.
Okay got it. Thank you that's helpful.
Our next question comes from Kevin Kim with Suntrust. Please go ahead.
Thanks, Good morning, 'cause sticking with that topic, what was the going in cash yield for the $60 million of deals you close.
Okay.
Uh huh.
Character to me one second yes, sorry thing I'm just trying this three now.
Yeah.
Thank you good okay.
And your weighted average rent coverage or four times can you just help me understand that little better does that actually reflect a trailing 12 month, including hotels.
And I saw one year and one of your footnote that you might.
Oh you have this question, where if the athletic on pay lag or development asset you can use a projected stabilized NOI.
Is that all being used for hotels in this environment.
Why don't I take that one its Jeremy Ki bin look so I think you've got it right I'll rent coverage metrics largely based upon trailing 12 month and NOI.
As reported by all properties, so as such the full impact of the economic slowdown due to cope with 18 has not been.
Reflected in this metric that you asked specifically about hotels and whether or not we use stabilized estimates for the hotels. We don't all hotel properties also for this metric we using.
Reported trailing 12 months and Hawaii has available to us from on properties.
Okay, and any insights in terms of the conversations you're having where your hotel operators and can you just provide some maybe some color on the LTV is as underwritten and how conference call. How comfortable you feel that are those hotels will be no money good.
Put along here.
Yeah, I think from an <unk> joining that Jay.
We haven't go ahead.
Hi, this is going to say that the the.
I mean, we take the hundred you have you keep band of all of our properties as it comes to the JLTV metric that we report the properties on outlined a typically appraised annually by CB Ari.
Typically in the quarter after acquisition so they only appraise a portion of our properties each quarter. So the full impact all the slowdown from cobot has not yet being reflected in this metric.
I'd ask Joe My cost add some commentary about the conversations that we're currently having with the hotel that's.
So Kevin I'd say that if you think about kind of pre togut world that the hotel you know kind of Ltvs are consistent with our portfolio.
And so you know again, taking a long term view there currently at no dialogue with any of our hotel owners.
You know as we've said on prior calls you know our ground rent payment represents a fraction of the invested capital behind us.
So for them not to pay our rent than effectively hand us an asset.
For for that kind of spread of almost a thousand times rent payment versus capital investment invest it.
Just doesn't seem probable in this environment unless you see value destruction or you know north of 70%, which we're although there's been some value destruction, we're not seeing it passive your buy anything.
Okay. Okay.
Our next question comes from Jade Rahmani with KBW. Please go ahead.
Thank you very much.
Wanted to ask if you could give an update on the safe Star program.
Any potential for obstinate opportunistic investments that strategy could be deployed into to perhaps generates a higher yields then.
Your core strategy is targeting.
So if I'm sorry go ahead, Jeff.
Yes.
Yeah.
Yeah. It was one of things I mentioned in terms of <unk> programs, and even new ways to create accretive deal flow.
And there isn't so much about creating.
Excess returns over then giving somebody a one stop capability.
Yeah through July 20, or 30 years as being a key way.
And really provide the best solution for accounts, there and when we provide the best solution typically you can charge a little bit more for that level of service that level of capability.
So that's our goal they've stars to expand on mortgage or expands our footprint.
And we think we are doing quite a bit of interest in that program.
We continue to see I think we're up to about seven or eight deals now.
It has been really valuable tool in our tubular.
Oh for certain customers and should allow us to again find some really accretive pockets.
It wouldn't be available to us otherwise.
And just thinking about the turmoil that's played out in the mortgage Riet and Ah that's fun space.
A lot of those lenders are highly dependent on credit facility and repo financing that has mark to market provisions a axogen starkly was active in the transitional properties space and I think some of the safe hold that investments are on.
Properties that have a lot of construction element as an example are you looking to provide ground lease financing on transitional properties or is the court focus on existing stabilized assets.
Jade I I'd say, we look at everything and so some of the safe star activity.
Thats in our kinda fits that transitional bucket, where capital has a somewhat dried up.
And our Onestop capital solution.
Is able to offer our clients on the solution, whether they have a construction loan coming due or a bridge loan coming due.
And so we're having a fair amount of dialogue, especially in the multi space across these quote unquote transitional assets.
Okay.
I want to find out if you could quantify the value you attribute to residual rights when you underwrite a ground lease is it.
On an NPV basis, so far into the future that it doesn't have a material impact on your underwriting or is there some percentage that historically you equates to represent the value of those residual rights.
Well, we always start with the cash flow screen, Jay and make sure that we think the deal Accredo right out of the box.
As we've said before as well as the portfolio glaze scales and diversified.
We think we're building an asset class and the unrealized capital appreciation account that can be monetized.
And people will begin to understand its value as it gets bigger and.
More scaled we have not incorporated that into our underwriting today, we would like to be a little bit larger in a little bit a bigger.
Footprints and before we really start to think about how to get that value into the.
Shareholder equation, any meaningful way and when that happens and certainly I can become part of the underwriting.
I thought process, but right now.
Primarily focused on the cash flow component to build the business together at this scale.
Then as we get the scale, you'll see that the great component and the <unk> unrealized capital appreciation and start to be more will focus.
And just thinking about asked one of the comments you've provided.
Regarding seem urease appraisal process done on an annual basis, but in certain properties are on a quarterly basis, a and if you think about the outlook for commercial real estate prices, you know I would anticipate commercial real estate values down, 15% to 20% overall and greater than that in certain.
Geography, and hard hit a asset classes like hospitality and retail, but what do you think that would imply for the value of.
The unrealized capital appreciation, but didn't decline.
In line with that commercial real estate prices decline or would it declined by more than that because it's the residual at the tail end of this very very long.
Time period.
No I think there's the purpose of having CBR you go out you appraisals is to get a.
You know real time check on the value the buildings on top of Orlando.
And the appraisal process.
In in of itself yeah.
I would have a lagging indicator it.
We're going to.
Got it.
And over four to six quarters.
Appraisals in another themselves and we take it.
Yeah.
<unk>, we'll look at wasn't values are we don't think the the endgame mode.
You see a in the factoring that equation, we just want to know what are the buildings on top of Orlando or.
And we want to report that every quarter.
Last weekend.
Really I looked at war on annual basis, because that's when CBR you know good chance that go through most of the episodes.
Pool annual basis.
Picking up you know percentage each quarter, and then really worked out and when that.
Annual basis, and say, how we've done how has the portfolio groom and we still think the growth rates can you see a.
Year to year, just looking forward and our projections or going to be very attractive so a little bit of blips should be expected cyclical.
Mhm things will be expected, but the growth of more business.
The long term driver.
As much or probably far more so than just the organically for the individual property.
So what I'd say JD take a look over.
The last three years, you'll see what kind of dynamic that we think still exists.
But we do expect Seabury goes out and appraises into this environment. We're trade is actually starts happening it can have a better since we're about user.
Jeremy said, we certainly expect them impact some kogas <unk>, but it doesn't really change or long term.
Thank you for taking the questions.
Mr. Food, we have no further questions [noise].
[noise] a great well if anyone should have any additional questions on todays earnings release, please feel free to contact me directly.
He would you please give the conference call replay instructions once again. Thanks, yeah. Thank you ladies and gentlemen, this conference will be available for replay after one PM eastern today through Midnight August six Twentytwenty you may access to 18, T. teleconference replay system at anytime by dialing 186, Nick.
2071 zero for one and entering access code 707958 peak.
Those numbers again, our 1866.
2071 zero for one where the access code of 70795 0.88.
This does conclude our conference for today. Thank you for your participation and using ATP teleconference. You may now disconnect.
Hi, there either.
Okay, I understand what you're saying I'm on for same but we have another question, where it says a lot lot 2.06, okay.
No I am proud of their to the lie behind there, Okay, that's where our which is okay and you're saying that's not right.
So.
What we wanted the realized.
We want it said, we wanted to telegraph over that can we feel that end with side graph on top.
And I'm hearing that.
Okay is or someone else on on the fine there now.
We have JF Felicia.
Oh go back here apologize just hearing some background.
Yes.
Jason So excuse me, Brett Lisa and Jay.
Well.
Alright.
Never seen any water back there so I think it doesn't jumping off.
Sounds good thanks, everyone.
So how do you have healthy when we talk.
Engineer given a copy.
We have that survey.
Mark it up.
Okay.
And I'm going to put a note.
Okay.
Got it.
[music].
Oh.
This way.
Okay. So so you're talking about the new certainly that I'm going to try to get or the one that.
Whatever you're going to give me was.
Alright.
We can go back.
Well go.
Yeah, Yeah, we moved that we should have all that work that's about.
Got 12 years running at that survey will try them whenever we have with Robert.
[music].
Yes.
We're sorry your conference is ending now please hang up.