Q3 2020 Landmark Infrastructure Partners LP Earnings Call
Ladies and somebody could say about your house calls to begin momentarily again be standing by the conference also begin momentarily. Thank you.
[music].
Ladies is on the baby standby and welcome to the landmark infrastructure partners third quarter earnings Conference call.
At this time, all participants I was telling us.
Just because it doesnt make you know will be a question and answer.
I asked a question about something that's star then one we've got some telephone.
I do a lot of today's topic call is being recorded.
How can the company do you know the Marcelo Choi Vice President Investor Relations you may begin.
Thank you and good morning, we like to welcome you to landmark infrastructure partners third quarter earnings call today, we'll share an operating financial overview of the business and we'll also take your questions. Following our presentation.
Presenting on the call today are Tim Brazy, Chief Executive Officer, and George Doyle, Chief Financial Officer.
I like to remind all participants that our comments today will include forward looking statements, which are subject to certain risks and uncertainties.
Number of factors and uncertainties could cause actual results in future periods to differ materially from our current expectations.
For a complete discussion of these risks we encourage you to read the partnership's earnings release and documents on file with the FCC.
Additionally, we may refer to non-GAAP measures such as that so yeah, So EBITDA and adjusted EBITDA. During the call. Please refer to the earnings release, no public filings for definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures.
And with that I'll turn the call over to Tim.
Marcelo Thank you.
Good morning, everyone I.
I hope, you're all doing well and continuing to manage during these very challenging times.
Before we discuss the financial and operating results for the quarter.
Let me give you an update on the Pandemics impact on our overall business and that of our sponsor.
As I've mentioned on prior earnings calls our focus has been on the safety and health of our employees.
Our sponsors headquarters in satellite offices are closed and will remain closed through the end of this year.
For sponsors 170 employees continue to work remotely.
However, the shift to a distributed workforce has been very successful and everyone continues to execute at a very high level with minimal disruptions.
Overall, we're extremely pleased with the execution of our business. During this difficult time and you can see that in our results.
Our portfolio continues to perform extremely well and we closed a number of large data center acquisitions in the third quarter.
These acquisitions were part of our strategy for the redeployment of capital that we started following the disposition of our European outdoor advertising portfolio.
Despite the difficulties of working remotely.
And with each transaction, having its own set of unique challenges and requirements. Our teams were able to close those deals as anticipated.
With the support of the entire organization, our sponsor has been able to fully transition to remote workforce not ideal or desired but extremely effective.
As we think about leaning back into the office in the first quarter of next year.
We'll be able to consider that knowing that we can be extremely productive in the office working at home or remote location or with some hybrid approach.
I'm incredibly proud of our team.
They've performed at a tremendous level during a very challenging period and they delivered some great results.
Now in terms of our portfolio, we continue to monitor the outdoor advertising tenants in their industry due to the near term challenges brought on by the health crisis.
Well the near term fundamentals are improving.
We're still in a period of uncertainty with dependent make ongoing.
The tone from the operators is generally been more positive.
Your expectations were that the second quarter was likely the low point for outdoor advertising with improvement anticipated for the third quarter and further sequential improvement projected for the fourth quarter.
With many parts of the country open again, and mobility and outdoor traffic back to near pre pandemic levels in most markets.
Billboard operators are seeing an uptick in advertising spending for the second half of 2020.
However, advertising spend is expected to remain below pre cope with levels.
It remains to be seen how the shape of the industry recovery plays out.
There's still a high degree of uncertainty given the many different factors around the pandemic, including a potentially increasing second wave of infections and the development of safe and effective vaccines, but we are encouraged by the improving trends with the mi industry.
As we've mentioned on prior calls we have received a number of requests for rent relief in rent reductions from or outdoor advertising tenants.
While these requests continued the trick when we have seen the number of requests declined during the third quarter.
While uncertainty remains due to the ongoing health crisis, we believe that the worst is likely behind us in the outdoor advertising segment as outdoor traffic has rebounded the demand for outdoor advertising seems to be improving and were seeing fewer requests for rent relief and productions.
We'll continue to monitor industry developments, but we're confident that the industry will rebound post pandemic and that the outdoor advertising segment is an attractive one for landmark in the long term.
Turning now to our third quarter results.
Despite the challenges in the outdoor advertising segment, we posted another strong quarter of operating and financial results with rental revenues higher year over year and quarter over quarter.
And a AFFO per unit year to date increased as well compared to the same period in 2019.
The challenges that we've seen in our outdoor advertising sector had been more than offset by the strong continued performance in our other business segments.
As far as our overall business strategy is concerned our focus remains on or higher return development projects in select acquisitions.
In the third quarter, we redeployed capital that we raised from the sale of our European outdoor advertising portfolio, We acquired seven data center assets in three strategic locations, including the greater Atlanta and Toronto markets.
Year to date through September Thirtyth, Weve acquired 14 assets for total consideration of approximately $133 million those assets are expected to contribute approximately $9.6 million in annual rents and had been primarily comprised of data center assets.
The digital infrastructure segment made up approximately 15% of the partnerships third quarter rental revenue and is expected to be approximately 25% of the partnership's rental revenue on a run rate basis.
Given its importance, let me take a moment to talk about this key strategic segment from landmark.
Our digital infrastructure investment focus has been primarily on triple net leased powered shell enterprise and co location data centers, which are building facilities and have available power and connectivity and typically require limited maintenance capital expenditures or operations by the investor.
As an asset class our digital infrastructure assets possess characteristics that are similar to what we look for in our traditional ground lease assets within our three other segments.
High quality tenants.
Mission critical and operationally essential infrastructure with a high payment priority.
Long term leases with contractual escalators.
Hi lease renewal rates with limited relocation risk men.
Minimal property management required with leases typically structured as triple net leases.
And high barriers to entry as these are highly specialized purpose built high cost facilities that requires significant technical expertise to design build and manage.
Similar to our wireless communications segment did.
Digital infrastructure stands to benefit from the increasing demand of connected devices and the significant growth in data creation and consumption.
The International data Corporation forecasted global digital data growth.
From 33 said of bites in 2018, 270 fives Exabytes in 2025, the compounded annual growth rate of 27%.
With mobile mobile computing, the internet of things and cloud computing are expected to be the primary drivers of this growth.
The digital infrastructure team has been extremely successful in sourcing negotiating and closing acquisitions for the sponsor and landmark infrastructure, having closed over two dozen data center transactions for total consideration of over $600 million.
Our target market for digital infrastructure assets as large fragmented underpenetrated and growing significantly and with more than 40 million square feet of potential data center acquisition opportunities as we move forward.
With regard to our development initiatives, while the pandemic has slowed the pace of our deployments. This year. We continued to make further progress this quarter with landmark vertex, our stove wireless infrastructure offering and dart our existing program with the Dallas area Rapid transit system.
We continue to work on various deployments of vertex and with regard to our dark project. We've placed 88 digital kiosks into service as of October 31st with rental revenue is expected to commence in the fourth quarter of 2020.
And with that I'll turn the call over to George who will provide us with a more detailed financial review of the quarter George.
Thank you Tim.
Our portfolio was resilient again this quarter.
Generating year over year asset growth during the year to date period ended September thirtyth.
Despite the impact from the pandemic.
A modest sequential decline in rental revenue from our outdoor advertising segment.
In the third quarter was more than offset by growth from our other segments, reflecting the high quality of assets in our portfolio.
As Tim mentioned in his remarks, we have seen the outdoor advertising industry continued to stabilize.
Well, we are optimistic that we have seen the bottom for the outdoor industry.
The recent cobot infection rates have been increasing.
And the full impact.
[noise] from this pandemic is unknown.
Through the end of the third quarter, we continued to see virtually no impact from the pandemic on a wireless.
Renewable in digital infrastructure assets.
In fact, our recent investments to drive meaningful growth if oh per unit.
In the fourth quarter and into 2021.
Diving into our third quarter results.
Rental revenue for the quarter was 14.2 million.
Which was 10% higher year over year.
In 3% higher versus the second quarter.
The year over year growth in rental revenue was driven from a number of lease amendments as well as the customary contractual lease escalators.
And the impact from accretive acquisitions completed within the last 12 months.
In the third quarter outdoor advertising rental revenue declined by approximately 100000.
Or 3% compared to the second quarter of 2020.
Primarily due to lower percentage rent from leases with revenue sharing provision.
Turning to at the FFO and AFFO.
At the FFO per diluted unit was 29 cents this quarter compared to 20 cents in the third quarter of last year.
As we have discussed in prior calls at the FFO can fluctuate quarter to quarter.
Depending on the change in the fair value of our interest rate hedges.
As well as various other items, including foreign currency transaction gains and losses.
Hey, AFFO, which excludes these gains and losses on our interest rate hedges and other items.
It was 31 cents per diluted unit this quarter.
Compared to 32 cents in the third quarter of last year.
Despite the challenges brought on by the pandemic and the disposition of our European outdoor advertising joint venture.
We have driven answered so growth on a year to date basis.
As I mentioned earlier in my remarks, we expect to see further growth in AFFO per unit.
As the acquisitions completed in the third quarter.
Were only outstanding during the third quarter on average for a period of 16 days.
Now turning to our balance sheet.
We ended the quarter with 193 million about standing borrowings under our revolving credit facility.
As we redeployed capital raised from the disposition of our European outdoor advertising joint venture.
We continue to see very attractive financing rates for our asset classes and.
And we have no scheduled maturities until November 2022.
In terms of liquidity, we ended the quarter with approximately 9 million in cash and 257 million of Undrawn borrowing capacity under our revolving credit facility.
Subject to compliance with certain covenants.
Our debt to adjusted EBITDA ratio on a revolving credit facility was at approximately six times at the ended the quarter.
Regarding our distribution policy.
As we have discussed in the last few quarters.
We remain in an unprecedented and challenging environment.
While certain parts of the country remain open we're.
We are seeing a global virus resurgence.
But the number of cases spiking across the U.S.
Without a proven vaccine in place.
The virus resurgent may cause states to shut down certain businesses again.
Which could lead to lower outdoor traffic and reduce advertising spending.
For the time being.
Outdoor traffic patterns have recovered across most parts of the country.
An outdoor advertising spending while incurring it has not returned to pre cobot levels.
We are encouraged the improvement that we have seen an outdoor tropic and the stable cash flows that our portfolio continues to produce.
But we are still waiting for more clarity on the full extent of the pandemic.
Why did these factors the board decided to maintain the 20 cents per unit distribution this quarter.
Based on this level of distribution our distribution coverage ratio for the third quarter was 1.57 times.
We believe that post the pandemic our portfolio will support a higher distribution.
Well, we will continue to monitor the impact it depends on like in general economy on our portfolio.
And we'll look to reassess the distribution levels in 2021.
In summary.
Our portfolio continues to perform well as seen in the solid results, we posted this quarter and year to date.
Despite the near term challenges within the outdoor advertising industry.
We believe that we are well positioned to drive further growth in the fourth quarter and into 2021 drill.
Driven by the accretive acquisitions, we completed towards the end of the third quarter.
And the progress that we've made on our development projects.
We will now take your questions.
Thank you.
And ladies and gentlemen, I'd like to ask a question. That's star then one on your pets don't qualify.
One more question.
Our first question comes from workplaces of Raymond James Your line is open.
Thanks, Good morning, Mcgrath from noon guys how are you doing.
Good really good to hear from you.
Good to hear from you too glad you're making through these difficult times resilience and.
Operating safely.
Couple of questions. If I could you mentioned that the year to date.
Positions were about $133 million and 9.6 million annual rents. So we do that quickly math looks like about a low seven cap rate.
But how should we think about how much did you spend on the deployment projects versus acquisitions.
[noise] [laughter] in the the third quarter a rig we spent the the majority of the capital on the acquisitions, we didnt have that much spend on the development projects. So the 133 its.
It's going to be all acquisitions.
The 133 as year to date right.
Yeah.
So it's a fairly minimal development throughout 2029.
[noise], yeah, mostly [laughter] as we talked about last quarter as well, mostly we're done with the.
The hardware purchases most of it is services related and there will be you know some ongoing services as we wrap up that project over the course of this year and next year, but services are a smaller amount of the.
To spend at this point.
Thanks.
And then you mentioned you've got 88 of the Dart kiosk in service on October 31, I think is what I wrote down how should we think about what that revenue contribution might be in fourth quarter, and then run rating on a on an annual basis.
Will that show up in the wireless category, which category.
[noise] for now we expect the initial revenue to just be outdoor advertising revenue the kind of way to think about it is the the minimum rent is going to be called around a six cap on the deployed capital.
But it is going to take some time for that to settle out because there's a lot of <unk>. There's a lot of upfront costs that were incurred that are spread out evenly as the kiosks are deployed so yeah. We're looking to have around 350 kiosks in total and the the other.
Initial ones the I would expect the cap rate to be a bit lower and then it'll average out to a six cap.
And then overtime I would expect the percentage rent to kick in and then drive that higher.
Okay that helps.
And when we look at a couple of revenue items just to stay on that area. The the wireless side. It looks like you said.
Few lease terminations anything going on there yet as far as sprint T mobile or how should we think about a change in and leases on the wireless side.
[noise], Yeah, we're seeing Ah.
No one off asset here in their churn so it's not the as far as we can tell.
A trend of terminations coming in I mean, we do expect some churn obviously coming from the sprint and T. Mobile merger, but we are also at the same time seen a fair amount of.
Modification activity across the portfolio so from what we've seen to date.
Were offsetting that by hand.
A handful a new leases and then also increases on some of the existing sites.
But we have not seen a call it a wave of termination letters come in yet relative to that.
The sprint T mobile merger.
Okay, and then on the data center side, what sort of escalators that kind of maybe a 2% escalating business or as we think of those acquisitions, you've made and obviously minimal spending at this due at the locations how should we think about the revenue growth rates on those assets that you're getting into in a big way could be up to 25% of run rate.
Sure. They generally range and are thought to 2.5% type range.
I think you know.
Historically the.
You know the induce industry is seemed a bit higher escalators, but at this point they seem to be right around that that 2% range.
Okay and final one for me on outdoor advertising. It does look like leases picked up from Twoq to Threeq is that what you're kind of talking about that we've maybe seen the bottom and some recovery and so lease number of leases are trending up a little bit or was that some acquisitions.
The you're saying the number of leases or the the revenue ramp. The number you know the number number one is revenue was down quarter over quarter, but number of leases looks like it was up quarter to quarter.
Yeah, that's probably some of the.
The dart sites that are being put in place a okay. Because they show up on her outdoor advertising great. Yeah. Okay. Thanks, guys continue stay well and look forward to updating a view on the distributions hopefully we can get through this pent up and get a vaccine out there.
Sounds good thank you Rick <unk> stay warm.
Our next question comes from Liam Burke of B. Riley Your line is open.
Good morning, Tim Good morning, George.
Good morning, good morning.
You mentioned the deployment or progress on vertex could you give us a sense of timeline similar to how you progress on.
Darren where the actual deployment of kiosks could you give us a sense as to the deployment schedule.
[noise] Yeah at this point I would say, it's going to be pretty consistent deployment through roughly the middle to end of next year. So we have a fair number of sites that are in progress we have our remaining kiosks that our.
That are under order right now so I would expect a then this is gonna be weather dependent and endemic locked down dependent but I would expect it's a pretty insistent deployment from here on out so.
So in total we're targeting have about a 350 deployed.
Through the middle to end of next year I would expect were in the 325 range and then the last will depend on when the.
The sites are ready for the deployment there is a certain number of sites that are.
Or under construction and not from a kiosk standpoint, but just the [noise].
The transit system is doing construction there. So there are there will be a few lingering sites, but should be pretty consistent over the course of the next 12 months.
Right and then following that with vertex how does that look to you or do you have any sense. So you could share with us where that progression looks at how that progression looks.
[noise] certainly yet the activity there is starting to pick up we expect that.
We'll have a number of sites that are in process of being deployed.
Deployed this quarter.
And I would expect that as we kind of work through the the winter timeframe in through the pandemic that starts to increase in the the middle of next year.
Okay great.
And you mentioned the sponsor has a fairly sizable backlog of of data centers, if I'm looking at your investment priorities into 2021.
Hey, how would you balance infrastructure build out or new infrastructure build out look forgetting for a moment darden vertex versus data center acquisitions.
Well I think it's going to depend upon the the opportunities that we see on the infrastructure development side of things those are I would say, they're not as consistent as an opportunity as what we see on the datacenter side of things so.
We like the we'd like the development.
You know the development skills that are high return typically in the they fit very well with our existing portfolio, but.
They are a more info.
Infrequent then I would say on the datacenter side of things. So we're going to we're going to look to see what opportunities. We can find on that front and certainly supplement.
Some of our investment activity with the attractive data center acquisitions.
Great. Thank you George.
Okay.
And our next question so baldly RBC capital your line is open.
Hi, Thanks for taking the questions just first of all on [laughter].
Comment on whats rigorous sprint T mobile activities and saying, it's any either increased activity like decommissioning.
Sure Yeah, we've seen very little on the decommissioning front, we have seen.
The up some of the existing sites are being upgraded so we have seen some up some additional revenue from upgrades, we've seen a little bit of a dish.
This activity in the market as well, but I would say generally we've not seen.
A significant amount of terminations or away the terminations come through.
Do you have any sense from either conversations or backlog of any meaningful change in activity go forward from there.
Any of those parties.
Yeah, No. We we don't at this point, it's still up it's still a bit uncertain as to what exactly they're they're doing and the timing is there a their moves but like I mentioned, we do see a dish now starting to pick up sites in the market.
Okay, great and two switches that data centers can you remind us are they all at Sotheby's sale leasebacks.
Oh.
<unk>.
Yes, the assets were yeah. These were all sale leasebacks.
And can you give a sense of what the remaining lease terms are for these assets.
Yes, they are generally going to be in the a 10.
15 year range.
Okay fairly long.
Last question on that just strategically are there.
What are you thinking in terms of target markets for data centers are you look at it. So you mentioned that you did some acquisitions and try now as well as with plant. So it seems like it does.
[noise] anywhere from tier one to is that fair.
Fairly accurate statement that you are looking at tier 123, regardless of market or are you trying to target a specific.
Oh, you're or are you more interested and specific assets rather than necessarily target a size as target markets.
I would say, it's probably a bit a combination of both.
The devaluation of Datacenters is very asset asset specific.
And we are well, we're very focused on our <unk> is buying the land in the shell under critical use data center cities are heavily occupied in strategic locations well connected to fiber.
The.
Since they are a investments where we're coming in at a relatively low base is relative to what our our underlined tenant has invested in the site. So certainly the the tier one markets, they're always attractive I would say for the most part obviously because of the amount of activity there.
But there are opportunities in tier two tier three markets that selectively we.
We like.
So it's it really is a combination of both but but it definitely is high.
Heavily dependent on the characteristics of the asset and what kind of parameters, we're entering that investment now.
Got it thank you [noise].
Welcome.
Thank you.
Again like we've done things like ask the question I think that's probably been one when you've had some telephone.
Our next question comes from Dave Rodgers of Baird. Your line is open.
Oh, Hey, good morning out there guys I think most of my questions were answered I guess, George I would add though in terms of the credit worthiness of the tenants that you're buying the data centers from I can you give us some some comfort some thought around how many tenants that is how many different tenants you've acquired from so far and what is that.
<unk> investment basis that you talked about.
I'm not sure that are rate raise foot.
Sure. So we have a variety of credits in the portfolio.
Some are Ah some are not rated but I would say, they're pretty strong credit or it can range anything from.
Investment grade down to call it a.
The non investment grade type credit so.
You know in the double b or potentially the a c. range.
What is what makes it datacenters so attractive is that.
It's such a critical asset that credit is only one element to evaluate and you've seen this over the course of the last year or so there's been a few datacenter operators that have had.
Some credit challenges, but the underlying business and the datacenter is if it's a solid business. It typically withstand any sort of credit event at a corporate level for the 10 and this is the same thing that.
You're seeing play out right now in the outdoor advertising industry and the same dynamic we have and the renewable industry as well.
So provided.
You you have a great asset it's heavily utilized by the tenants. It's critical infrastructure. It's you know it's been upgraded significantly.
There you may not have the strongest credit in place with the tenant but yes the.
The arrangement with that tenant with the infrastructure they have in our powered shell. It certainly diminishes the impact of a potential credit event on the portfolio. So we feel that.
With the acquisitions, we've done with the underline occupancy and the tenants that we're in a very secure position regardless of the credit profile of the tenet and like I mentioned same thing you see in a number of our.
Our other asset classes as well in our our tenant base is a variety of co location companies cloud and some enterprises as well so we have a bit of mix of tenants.
Tenant profile than certainly a geography as well.
And should we think about your basis in these assets.
Per foot or per as per raised split basis in the kind of mid one hundreds is that is that a reasonable estimate.
I would say, it's probably slightly higher than that you're you're probably in the mid two hundreds if not a little bit higher but what makes it attractive for us is our underlying tenants may have invested another.
700000 per square foot to turn the shell into a fully operating data center.
So typically what would happen at the end of a lease term if for whatever reason that tenant was not looking to renew the lease well they they leave although.
Although these improvements at the site because not really practical to move them and then you have.
Asset, where you bought that maybe that to 50 per square foot range, but you end up with improvements that can be released that might have an all in value per square foot of upwards of maybe a thousand per square foot. So.
You know our investment is relatively low.
Compared to the overall investment in one of these centers.
Okay. Thanks, George for the added color.
Sure absolutely.
Again, I'd like to ask a question.
Hi, everyone.
I have a question more credits or anything like that.
Hey, guys not as busy earnings day as the next couple of days I wanted to ask a couple extra years since we've got the churn on the cost on the cost side of things how should we think about property operating costs. Then as you get more into the data center spot, there's not much to choose a threeq you, but obviously you've got a hell of a full quarter of the data centers.
In Fourq, you expecting much of a change on the property operating expenses area.
[noise], there will be a little bit of a change, but not too much most of the expenses on the datacenters.
Would be reimbursed by the underlying.
Underlying tenant in the datacenter. So it would end up being a kind of a wash whatever additional operating expenses you get from.
Only one of these centers is typically there is offsetting revenue, where we're likely to see a little bit more operating expenses is just from the the dark project the.
There are a few costs associated with that but.
We won't see those until the you.
You know more of the kiosks are deployed.
Okay and the genocide unit came in late in the quarter, both year over year and quarter over quarter.
That something sustainable when should we think about GE. They cost and then maybe an update I think the G.N.A. contribution coming back from the sponsor right now is on track to run through November 21.
Yes, that's right I would say Gee M&A for the quarter can be a little bit misleading just because of the timing between.
Quarters, but on a year to date basis, we are down a bit.
On DNA and I do think that is sustainable we're focused on controlling.
Controlling some of our overhead costs and certainly we've been pretty active over the last couple of years doing a lot of things a different geographies initiatives. Some of that is starting to settle down, especially with the disposition of the the UK portfolio to the European portfolio.
So I think the run rate this year.
I will ultimately be lumpy lower than 2019, and I think that that is sustainable.
We are as we look out its fourg the end of a 2021.
The amount of the.
The reimbursement from the sponsor I would expect to be declining as we approach that point, but we haven't [noise].
We haven't made an assessment yet as to what.
The arrangement with the sponsor will be.
For DNA support so that's something that we'll we'll get into probably in the.
First part of next year with the yeah, but sponsor.
All right last one from me, obviously data centers. Please mobile commute compute edge compute tower guys are talking a lot more about.
Edge as well how do you see the edge is playing out and that's more of a theoretical concept has a different definition, but what are you thinking about with edge or what it might mean to your outdoor.
Wireless as well as your digital business.
[noise], Yeah, I think there there will ultimately be opportunities on the Ed side of things that we we just have not seen the revenue model develop yet I think there's.
There is opportunities to have data centers at a towers rooftops certainly.
Certainly.
Can add more infrastructure in our existing data centers, but we've yet to see a lot of the revenue opportunities tied with that and I think that's what's ultimately going to drive.
The development on the the Ed side of things.
I don't think.
It has too much of an impact on our existing portfolio.
I would expect.
The existing colo operators or a enterprises to.
They have consistent if not a growing.
Data storage needs at the existing.
Facilities, but certainly storage demand overall, whether its edge or otherwise I would expect is going to significantly grow here as a.
Fiveg and.
Some of the mobile computing needs are a.
Gross.
Well, you're going to you're going to need it for I O T. So we're we're actually excited about having a developed further but as George said, we just have not seen the model, but that drives that significantly quite yet [noise].
But the portfolio is well positioned to take advantage of them you know when it does actually.
Oh, you know make an impact.
It seems like people are trying to learn right now before doing a whole lot.
Agreed I think that's right yeah.
Okay. Thanks for the additional questions. Thanks, guys having today.
Absolutely you too.
Thanks <unk>.
I'm showing no further questions at this time I'd turn the call back right.
Hello, Mike.
Thank you operator, and one of the thank you everybody for joining us this morning.
No. This is a this is still a pretty difficult time for everyone on a maybe a number of different levels certainly uncharted territory.
As George and I have talked about today, we've taken what we think are the appropriate steps to position landmark to stem the various challenges in the market and take advantage of opportunities as we move forward and we're going to maintain our current strategy flexible.
To address the ongoing affects the pandemic and or for that matter any further market disruptions, but we do believe that.
Fundamentals the fundamentals of our business are strong it does look like it will still take some time for aspects of the economy to recover.
But we're very confident in the future of our industries and and the company.
And our assets have proven themselves to be incredibly resilient. So we're I think we're in.
Very well positioned to take advantage of.
Markets as we move forward, so with that I want to wish you and your families well. Please continue to be careful and stay safe and we'll talk to you next quarter.
Thank you, ladies and gentlemen does that make the topic. Thank you all.
Disconnect have a great day.
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