Q2 2020 FRP Holdings Inc Earnings Call
[music].
If you like to ask a question I'd like to now during the conference over to Mr., John Baker, Chairman and CEO. Please go ahead.
Good morning, a this is John Baker, the second chairman and CEO about bought the holdings with me today, our David did they junior Oh, President John Bakers, the third our CFO, John Milton Our General Counsel, John Klopfenstein, Our Chief Accounting Officer, and David Devilliers, The third our exact.
The BP.
This call will contain forward looking statements within the meaning of the securities active Nike 33, and the Securities and Exchange Act of Nike 34, such statements represent management's current views with respect to financial results related to future events and are based on the summer.
<unk> and expectations that may not be realized and are inherently subject to risks and uncertainties, which cannot be predicted with accuracy and some of which might not even be anticipated.
Future events and actual results financial or otherwise may differ perhaps materially from results discussed in such forward looking statements. This factors are discussed in our 10-Q and other S.C.C. filings, we have no obligation to revise or update.
Forward looking statements other than imposed by law as a result with future events or new information you were therefore caution not to place undue reliance on such forward looking statements.
Thank you all for joining us this morning.
As you've undoubtedly surmise from the press release, we're well along in the remaking of our company after the sale of our warehouses in 2019.
During the quarter repurchased 215000 shares of our stock at an average price of $41.39.
We currently have authorization to continue to purchase up to eight half million dollars and additional stock and plan to do so opportunistically.
Our quarterly earnings were impacted by the decision to delay our annual stock grants until the annual meeting the previous grants had been given in December 2018.
Our results were also impacted by Copel 19 is how retail establishments and our dock 79 investment in Washington.
Close during portions of the quarter and while they are resuming operations today [noise] air was slower than a year ago, which also impacts our revenues.
Leasing efforts at the men had been great, though we have spent heavily to get that penetration.
Yeah.
We continue with the development of our mixed use projects at Bryant Street, and a new project call half Street in Washington DC.
As well as the two projects, we have invested with would feel properties in Greenville, South Carolina.
Cash and investments have remained fairly constant at around 165 million. Despite these investments.
Our aggregates royalties segment remained steady at a high level revenues were down slightly as we no longer received double minimum royalties on I like where we serve project in central Florida with C. Max as they achieved that goal.
Of permitting the property.
Let me now turn it over to David Deviate Junior I present, so he can.
Walk you through operations are more detail David.
Thank you John and good day to those in the call. This morning.
Let me now at a bit a detailed to the highlights provided by John and his opening remarks.
As of the close this second quarter, our asset management segment consisted of four commercial property.
Cranberry business Center, and Harper County, Maryland.
The completed Hollander SEC [noise].
Bill building in Baltimore, Maryland, the land at 21st Street in Jacksonville, Florida, and lastly, our home office multi tenanted office building in Sparks Merrill.
In June of last year, the company finalized the liquidation of assets that made up our entire warehouse platform of 43 buildings totaling a bit over 4 million square feet. Prior to its sale in may of 18.
This quarter, we continued to grow the occupancy a cranberry wrong [noise].
54% as of March 31st% to 71.9% at quarter's end.
Significant 2 billion dollar renovation project is now complete the upgrades that buildings have been well received by the market.
Total revenues for this business segment were $716000.
$54000 over the same period last year, albeit with a different set of assets.
Operating profit was 58000 69000 from an operating loss of 11000, the same period last year, primarily due to our new spec building at 18, no 162nd Street, reaching full occupancy.
Of note.
Subsequent to the ended the quarter on July 31st the warehouse at 18, a 162nd Street was sold for $12.3 billion, resulting in a gain on sale $3.8 million. The proceeds of which has been placed in a 10 31 exchange fun.
In the mining royalties segment total revenues were $2.402 million versus $2.633 million in the same period last year [noise].
Total operating profit was $2.110 million a decrease.
$312000 versus 200 million 422.
<unk> dollars. The primary reason as John alluded to in his opening remarks for this decrease in revenue and operating profit.
The double minimum royalties are no longer being paid at lake Luisa due to our tenet having received the final permit to begin mining in July 2019.
On another note, we sold our Gulf <unk> havoc property during the quarter for too.
$910000.
$1.7 million.
Our outlook for the short and long term remains very positive regarding this business.
Our annualized revenue of $9.174 million and the revenue for the last 12 months.
Of 9 billion $163000 would still be the second best year in the history of this business segment.
With respect to ongoing and new projects in our development section.
Whites include one.
Phase one of our joint venture with St. John's Robertita, consisting of four buildings totaling 72080 square feet of single storey office and 27950 square feet of small day retail space in Baltimore County, Maryland remain 44% occupied overall.
To our entitlements are ongoing for our project and Hampstead, Marilyn known as Hampstead Overlook, which received concept plan approval. This spring, where the 255 single family and townhouse building lots as proposed.
Free as an update to our land development sensor at high bar in Baltimore County, Maryland. The first phase of settlement closed in May of this year on the 122 townhouse in for single family building loss settlement produced $2.67 billion and principal and accrued interest payments.
For.
Relative to our residential development project called Amber Ridge.
Located Prince George's County, Maryland, Entitlements are currently being pursued and to national home builders are under contract to purchase all of the 187 lots after we complete the infrastructure development.
The first section of lots are scheduled to be turned over in the second quarter 2021.
Bye bye.
Phase two of our river brought on the Anacostia project in Washington, D.C. now known as Marin.
Welcome to its first tenant in late March.
As John mentioned in his opening remarks leasing activities and occupancy has exceeded our projections.
This 14 storey mixed use development consists of 264 apartments 6937 square feet of first floor retail.
As with Dock 79. This is a joint venture with mid Atlantic Realty partners for MRK in whichever RP is the major point.
As of June 30, Marin was 98% complete with the top floor housing.
The pool and amenities package being the only remaining part to fully complete Nonetheless, the building was 45% leased and 23% occupied as of the end of did.
Since then men the Baron has maintained a robust leasing it occupancy trends.
As of August 3rd the project was 60.98% leased and 47.73% occupied finally, we executed a lease for the large retail suite totaling 5111.
Rentable square feet at the end to do.
Moving on the first phase of our mixed use residential and retail development and North East, Washington, DC known as Brian Street is now 67% complete as of June 30, but the first the for building schedule delivery in the fourth quarter of this year and the remaining three buildings expected to be.
Complete in the fourth quarter of 2021.
This phase consists of 487 apartments, and 85681 square feet, a first floor and freestanding retail.
Approximately 44000 square feet or the retail is pretty legs.
The project is running on thought within budget.
And there is located in a designated opportunities, which allows us to defer a significant tax liability associated with the 2000 eighteens warehouse platform sale.
This project is also a joint venture with them or [noise].
With that Mark the being the major part.
Next in December of 2019, the company contributed $37.3 million of equity into a new joint venture agreement with M. RP for the development of a mixed use project known as 1800 half straight.
The development is located in the Buzzard point area of Washington, DC less than a half a mile downriver dock 70, Dawn and American.
Realized directly between our two acre site on the Anacostia currently under lease with Vulcan materials, and Audi seal the home stadium, the DC United Soccer team.
The 10 story structure will have 344 apartments and 11246.
Square feet of ground floor retail.
Project is a qualified opportunities don't investment will differ just over $10 million in taxes associated with the 2018 warehouse platform sale.
During the first quarter. This year the venture purchased the land and is currently in the process of demolishing the existing structure and making other preparations for vertical construction that will start during the third quarter of this year.
[noise] also in December of 2019, we entered into it to joint venture agreement with Woodfield development, a new strategic partner to invest in two separate and distinct development projects in Greenville, South Carolina.
What field has vast experience development residential and mixed.
Your next throughout the southeast and Washington DC.
The first project named Riverside.
As a 200 unit multifamily project in which M. R. F. RP has contributed $6.2 million in exchange for a 40% ownership interest.
Construction began during the first quarter this year and is expected to be complete in the third quarter of 2021.
This is a qualified opportunities around investment.
Our second project with Woodfield is a 227 unit mixed use development.
<unk> 0.4 way Jackson.
Not to Shoeless, Joe Jackson, who actually grew up on this site.
And which is adjacent to Green Bills Minor League Baseball Stadium, which houses an affiliate of the Boston Red Sox.
This project will also include 4700 square feet of retail space.
F. RP has received a 40% ownership position.
And this project in exchange for $9.7 million.
Closing on the property occurred at the end of April construction has begun and the project should be ready to has received its first tenant.
In the second quarter of 2022.
This project is also a qualified opportunity investment and along with Riverside allows us to defer a total of $4.3 million in taxes.
Moving onto our stabilized joint ventures business segment.
Relative to dock 79.
Net operating income for the water was $1.092 million down 11% over the same period last year.
Average occupancy during the quarter for departments with 91.5% down from 93.52% quarter before.
This past quarter's retention rate was 62.3% up from 54% for the previous quarter, but with no rate increases due to a statutory prohibition by the district of Columbia due to Cove. It [noise].
Is currently expected to last through the end of the year.
We will continue to renew and signed tenants at their existing rates, referring terms of occupancy over chasing rent growth.
The retail component of dock 79, which totals approximately 14600 square feet remained at 76% occupied and 76% leased as of the ended the quarter.
However, our retail tenants were shut down as a result of the cobot 19 pandemic with exception of one of the restaurants being partially open for carry out.
All three retail tenants were allowed to open, albeit nowhere near capacity as of June 20 seconds and rent payment separately.
For the most part.
Our key guiding principle in this situation is maintaining open communication, while preserving our rights is landlord, while we wait to see what the future holes for these businesses.
The goal is to assist our existing tenant base and ultimately regaining their financial viability.
Re tenanting those retail spaces would be expensive and time consuming.
We partnered with these existing tenants because we believed in their concepts in business plans and we continue to do so.
The remaining retail space had an executed letter of intent to lease prior to the cobot 19 breakout.
The suite is now back on the market.
Dock 79 is that joint venture between MRK in ways in which F. RP is the majority partner.
Relative to the new asset introduced to this business segment in July of last year. The 294 unit Heck recreate apartment complex in Richmond, Virginia things are pretty much status quo and the second quarter. This year with a 94.6% occupancy as of June 30.
The distribution was on time.
And for the anticipate an amount of 85.
Thousand dollars are six.
Was constructed and 1984 and substantially renovated in 2016.
The business plan calls for further refurbishments to the interiors are they apartments and the increasing of rents prior to selling the project at a greater value after an appropriate hold period.
Well that's more pay is fortunate to have a focused and is how the team that has recently been quite active and leasing in executing acquisitions and sales across multiple business segments. It's important to note of we like the rest of society had been stunned by the state of the World.
There are operating under a new set of rules to the covert pandemic.
Our operations communications work flow and access have all change, but we are committed to our mission and remain mindful of the unprecedented impact co that has is and is having on us all.
Were considered an essential business and continue to operate at full capacity, while heating the guidance at the federal government and orders issued by the state and local authorities are offices at Lepton circle or open for limited activities on site and all employees are set up to operate fully from their homes.
When required our employees are physically distancing and then flowing.
Other measures to ensure the protection of the folks with them, we interact with as we go about our business.
At the end of the first quarter request for forbearance were limited to four tenants.
Three retail tenants at dock 79, and one small office tenant whose business focus is related to hotel services at the end of the second quarter, all but one of the to above tenants had made significant project.
<unk> Ras towards clearing late rents and expenses.
To be sure F. RP is not unscathed by co. The 19, however, the retail tenants at dock 79 represent that 6% of the company's net operating income.
And for the most park appear to be faring better than most in their category.
The vast majority of our tenants continue to operate so perhaps on revised schedules and conditions and they continue to pay rent as usual.
At this point, we have been given no reason to expect this situation to change.
We are mindful of the challenges that are facing our tenants partners and employees everyday and we strive to be a good stewards of our stockholders state as well as the trust and support of our business partners.
Oh, good 19 marks a new beginning and will change the way, we behave personally and professionally.
So with all challenges come opportunity.
Thank you and I'll now turn the call back to John.
Thanks, David.
Now lets turn it over to our gas to see if there any questions that they might have us at this time.
Thank you hit this time, we will open the floor for question have you like has good question. Please I see Starkey followed by the way key on your Touchtone phone now.
Again, if you like to ask a question you May press Star one now.
My first question comes from Christian seemed like a body in company.
Hey, good morning, Fellenz can you hear me right.
Yeah warning.
I'm wondering if there's any just kind of a general question I mean does any of what's happening in terms of.
Not only the pandemic, but kind of social unrest in large cities I mean does it gives you pause about.
The future of urban multifamily or I mean, do sort of see besides you know a passing phase.
It would have to give you pause or because it's a complete unknown at this point Kurdish but yeah.
Yeah, if there's one place that's going to be vibrant I would say it would be Washington, DC and that of course is the.
Really the centerpiece of most of our development so.
Oh week.
Are we not.
Worried about it you know you have to be cognizant of it in watching it yeah, but.
I wouldn't say that that's a big deal in our mind at this point.
Okay and are you got it.
Around.
Dock 79 in the man I know you guys are you able to do in person tours are people able to physically get into building to look at apartments or do they do it virtually or.
Or David take too right.
How are you a boat.
We are Ah, we are giving Bert weird give doing a lot of virtual tourism, but we're also doing a lot of personal tours of both.
Okay and you see other buildings in the area I mean are people off or having to offer incentives and.
Cutting rents and things like that.
Around.
It again not to the extent that you would think it. So I think we've been offering a half a month or at the dock 79 at about the equivalent of that it at the Baron.
It hasn't been up you know it hasn't been a a large discount and the rents per square foot that we're getting or are pretty used are pretty strong and god knows the of the the velocity of America has just been unbelievable.
Well, I mean and kind of curious if somebody were looking at both buildings, where do you think is kind of the distinguishing factors for people and.
In the Marins, obviously, a couple of years newer a little bit but.
In terms of amenities are the apartment layouts or what's kind of the.
Oh differentiate bocamina too.
Both about the same Curtis you know that's one like you said one of them as little bit newer than the other one we've had I think a total of about a I think at last count nine or 10 people that have moved from the death from dock 79 to merit since its opened up a it's a little bit more purse little bit more per school.
Our foot you know obviously same basic location same basic amenity package.
Size of the apartments are similar quality might be a little bit different but they're pretty close close together.
Okay dog friendly.
The very Marin as it is and it's very much all right.
Last last question I'll, let you go is something you know out at Buzzard point is.
Is there any discussion with Vulcan about or any thoughts about whether there.
Likely to exercise their option to renew their lease there I mean, you are pouring a little more capital into that.
That neighborhood at the.
So I'm just kind of curious whether there's any thoughts about what Vulcan might do.
Good day will renew it there's no question about that.
[noise] and and so does that.
Are you able to go ahead with.
I mean as are going to impact you think the price. The then.
The latest project, you've got going on there or is it.
<unk>.
The thought I thought it was.
Twofold, one yeah, I'm, having a view of a concrete plant is not is beautiful to everyone is it might be to me but.
The the important thing there is because of.
The fact that we started right now in the middle Upper pandemic, we will be I.
I think I'm correct on this David.
The only new building coming online at that.
Period of time, and so that does give us a any advantage.
As we began to lease up.
The important thing.
I think is.
[noise] to remember that it is an opportunity zone, Oh investment and while obviously you want to cash flow <unk>.
We feel like we can get at least up and begin to cash flow and when will really care about what this place looks like is 10 years from now when we go to sell it.
If we do go to sell it.
And at that point it is gonna be surrounded by.
What I would say or really the stunning buildings and it'll be up a gorgeous spot. So yeah. It may be a slower start then the Marin for instance, but it fits within our business plan and we want to get a isn't as much.
Penetration in that market as we can and that's.
How we were able to do it with this one.
Okay and Vulcan, So I was like it's it's basically a ground leases and.
There was a million Bucks county or 77.
Yeah, Okay satellite from its close.
All right. Thanks, a lot fellas.
Thank you. My next question comes from Stephen thing I was hoping I mean.
Good morning, how are Ya.
Great saving how're you.
I'm doing well have a few questions here regarding the add new jvs with would feel of what sort of internal rates of return or are you expecting from a the two new partnerships.
David would you take that.
We're looking at these are both again a little bit like the are they these are both opportunities projects, but that's not why we got involved in them.
At the outset, we wanted we like the idea of what field as a partner we think they're great locations. They've got the there there are kind of a pioneering area and one in and out so we're excited about that.
You know the internal rates, obviously, we'd love to have as much as we can get but we certainly are looking at things you know well into the double digits.
Great. Thank you and your relationship with would feel do you see these.
Two new properties, it's sort of a stepping stone into a bigger projects in the future.
You know.
We certainly would like to think so are you know our plan is it as a company is scoop is to a joint ourselves up with third party flat forms that have a you know similar philosophies and Ah you know we provided a lot of insight.
From our backgrounds and so it seems so far it seems to be working pretty well they'll be we'd look and we hope to be able to up to to spend some more time with them as we move forward.
Great and during the quarter did you start to see any potential deals and how would you characterize them.
We saw Oh, we are out in the market looking at a lot of different deals are primarily in the mixed use and industrial asset classes and we looked at a we looked at several I think at the present time, we've kind of take it we we saw.
Some that were quite interesting, but at the last minute, we decided to take a little bit of a pause.
Again, not knowing what the wasn't for the Kogut in front of US, we probably would have jumped into the water again, but Ah that's gets giving us a little bit of a pause and so but we're still actively looking.
And are you seeing in D. He the prices of multi families are coming down with the the uncertainty around the length of the rent trees.
The rent freezes up right now is up through the end of October, but we lease out about 60 days in advance. So that's why we said in our in our conference call that we're going to I'm not going to be looking for.
Any rent increases until after the beginning of the a the year. The interesting thing, though is that the rents that we are that that we are renewing we're kind of above market rents when when we did it last year. So they are pretty strong rents today.
So for us.
I would submit a bit of a pause, but as I said were we'd rather have tenants paying rent than a than they've been chasing rent growth as the Bernstein.
Stand to add on to that to add on to that a little bit.
I would say you know we've got a lot of.
Make huge projects going on at watch.
And I thought was it unless we just ran across something that was the steel.
We would we thought it made sense to let get these bill see how they go yeah I'm.
I'd get too strong out.
There's obviously get on all of them and then we're mindful of.
Making sure we can meet obligations and.
No matter, how bad things get yeah.
What we're looking at more so today I would say would be industrial development opportunities because as David described to use of the one that we.
Oh, just sold last week.
You know.
We got a tremendous mark up on that and it's indicative of how just how hot industrial is especially you know is it.
As it deals with the Amazon type a world that we live in it's just it's just a red Hot thing now and so that's probably where will will pivot for a little while.
Great and that was done the Hollander business Park, we had that remaining acres, there as well and a planning to develop the sooner because if the environment around a warehouse.
Yes, we've actually we actually just broke ground or we will be next week breaking ground on it on a.
Two buildings it back up to one another that are literally next door to the one we just sold.
Okay and then.
You didn't you said you were looking at deals for mix use in industrial and you just sold the Oh Hanmi property is there any interest in adding two at the mining and then that you currently have and at what price is saying a pair of mindful of land attractive t. around.
15000 somewhere around that.
The first part of your question is we're very interested but.
To be.
Blunt about it is very hard to get those yeah.
[noise] the operators, we just as soon on the land themselves and.
Yeah, we've talked to all of the major.
Aggregates firms and you know unless they get a cash back and we don't anticipate we're going to be able to grow.
Our aggregates Lance much yeah. The way we've looked kit the pricing of it is each project is so different that if what we would do would be to say, okay. If we want to get a six or 7% return.
From day one.
On.
<unk>.
Any project that we do and so if we were to buy the land, we would expect them to pay us a minimum royalty equal to the six or 7% plus.
We aren't royalty and.
Where we would benefit from that is is prices rise the royalties grow yeah, but again, that's that's a business model, but it is it's not likely to be one we're going to be able to be successful in growing much.
Okay. Thank you.
I'm not sure if there's anyone now or in the queue behind me I'm happy to but then a into asked some questions.
Well, it's not that.
I have a few more here.
Why don't we let somebody else if there is somebody and if not we were just jump back to you.
Great sounds good.
Thank you again this time went to ask a question. Our next question comes from they'll change phytoplankton.
Hey, guys.
Morning, though.
Yeah. It's.
A couple of questions on <unk>, I think you disclose it you're selling the or a lot spot lifestyle business talked about CLO inc. has that been sold already or or is that in sometime in the future.
They were sold in April.
Okay Gotcha.
And then the other question in use I'm going to adopt 79.
He.
Like how do we how do we recognize revenue you when we have a 10 that like those tenants were not those retail tenants when not open and do we like not recognize those revenue you do we.
Ah Ah do we recognized but then like creek feet like a receivable like like you just saw help me understand and if you could provide a little bit more detail on.
I I forgot how much the amount being down could you break out like how much how much of the decrease in revenue and analyze each you do a lower occupancy or versus you know low occupancy on the multifamily Sabra says yeah.
The retail Soc.
[noise] [noise] Bill this is David Devilliers, what we do is first of all.
Relative to the ally being down the the occupancy slipped a little bit in the in this the second quarter.
Bill here, we've seen some pretty we've seen some pretty strong activity and we'd like to think we're gonna be backup of you know backed up to 90, 394% here shortly from a rent from the residential so.
They are relative to the <unk>.
Two of the retail side, what we did there is we build that we build the tenants and we have an allowance for doubtful accounts that that we're carrying and we'll take a look at that as we get further into the year anytime they get to be over 90 day. If we then we take a certain amount of it then and.
Would it make an allowance for doubtful accounts.
The interesting dynamic.
Here, though is that of the three tenants the three retail tenants to two of them a have they're all three back in business, albeit you know partially five.
Two of them have paid all of their fact operating expenses. They pay June and July rents. So the only outstanding balance that we have with those two is April and May.
Got it.
Ah we do have ups, we do have a are carrying allowance for doubtful accounts with them, but they are backed up and running and they seem to keep you on a pretty good job. We're following their business to see how their revenues increased and then we'll look to to up to recover those you know those we'll call them deferred rents probably after.
The first of the year and as we start to head into the baseball season next year, because that's when those guys really start to make them on it.
[noise] Bill one is one of the big things it occurred last year was.
When they really do well, we get a bonus rents and.
Based on their revenues and obviously that isn't happening now and it did have got last year.
Gotcha, Gotcha and was that a factory and Andy a drop off in a rent and then allied didn't think Q2, because they're there and I guess peso season starts I actually don't know when they still seems far I thought, but I think baseball season starts in Q2, right and it right out of <unk>.
Yes, it's a doctor it because it's it's started to season started but there are no fans, which so you get no benefit of the decision story.
Yeah, [laughter] Gotcha Ah that's that's really helpful guys. Thank you.
That's a those all my questions. So if you haven't gentlemen, water jump back jump back when his question Ben now Oh, Yeah go back with you.
Thank you Bill.
Thank you again this time going to ask a question. Our next question is a follow up in seems now.
Okay, and just to picking up where we left off here it absent a big deal and a with the stock currently trading where it is a buyback there wildly accretive to the underlying value at the property.
At what point do you decide to stop looking for deals and stepped up buybacks do not really significant way.
Well of course, we would play.
Play that are.
Those cards as they come but at what I can tell you is.
Because of the limitations on how much we can buy.
As as the company Yeah, you know we've been buying about as fast as we can go without doing something like up you know a tender offer something like that.
I'm much more interested in preserving.
Our excess cash at this point to do you know get us for Cove, it and make sure that.
You know.
We can handle everything we've got on our plate and I think that's I think we've got that covered in stage right now.
No, yes, I agree a good to keep cash on hand, and encase anything yet.
And that impacts the business happened just as a long term shareholders.
We would obviously prefer.
Buybacks versus any sort of a special dividend and.
Just wanted to really okay.
Thank you that's good to hear.
And and sort of in the post Kogan World do you think that a in the first floor retail model will be changed and does that make you rethink any future developments or how you will.
Well, you'll do it the a first floor.
I think we'd happy like she's take that I think we have to a wait and see Steve that you know <unk> generally.
Our retail it's been pretty pretty small amount of these buildings with exception of Brian Street, and that's a little bit more were weak or we think that.
You know restaurants, or an interesting dynamic or food halls, or a consideration as opposed to two you know to fix retail there's other things that we look at the we try to come up with a retail component that you can't get online.
No we want it we want to support the residents and get out with different types of though the vanities and we think the right retail component does the goes a long way you know to helping not only the residential building stay filled up at a good retail mix helps that you know helps everybody in the retail component.
Right and you mentioned, a Brian Street, and you had the the first afford building.
And coming to the market at the end of this year do you think under the current let it sort of changes any prospects there.
We don't think so I mean, it's a bit so it's a big the first phase is a big phases you visit as you know it's it's four separate buildings. The first one is in kind of off on a little bit off of the side.
And we're looking we have a very strong property management company and Bizuo, we're actually going to start the pre leasing process here in the fourth quarter.
The model is ER has been very well received by people walking through it on that.
Kind of on an as his basis so.
We're excited about where we are with that with that project and the neighborhood seems to be pretty excited too. So we'll just have to wait and see.
Great. Thank you for your time, that's the other questions I have.
Thank you state.
Thank you there no additional questions at this time.
Okay, well thank you all.
I really appreciate the dialogue in is it really really really good questions. Yeah. You know well. These are uncertain times I I must admit not feeling that is that the lumps we have taken seem small and the accomplishments amazing given the times.
That we are in our team is performing extraordinarily well yeah.
We still face hurdles without retail operations as you've heard both existing and future.
But the ability to maintain occupancy at dock 79.
And quickly rent demand vastly overshadows the.
Our land and warehouse sales were literally at the top of the cycle prices.
I'm, having a very strong balance sheet with great liquidity is an important aspect of this confidence I can assure you that we do not take lightly obligation to return just liquidity to you if that becomes prudent.
For now however, it is a pillar of strength for us and we continue.
To hold the excess cash.
Look forward to talk into your next quarter and appreciate your interest in that will update you have a great day.
Thanks.
Thank you ladies and gentlemen. This concludes today's presentation you may now disconnect.