Q1 2021 Prospect Capital Corp Earnings Call
[music].
Good morning, and welcome prospect Capitals first quarter release and conference call.
Participants will be in listen only mode. If you need assistance. Please signal conference specialist by pressing the star key followed by zero.
After todays presentation, there will be an opportunity to ask questions. Please note that this event is being recorded.
I'd now like to turn the conference over to Mr., John Barry Chairman and CEO. Please go ahead.
Thank you very much Nick joining me on the call today are as usual realize it got president and Chief operating officer, and Kristin Vanda ask our Chief Financial Officer.
Thanks, John This call is the property of Prospect Capital Corporation unauthorized use is prohibited this.
This call contains forward looking statements within the meaning of the securities laws that are intended to be subject to safe Harbor protection.
Actual outcomes and results could differ materially from those forecasts due to the impact of many factors.
We do not undertake to update our forward looking statements unless required by law.
For additional disclosure see our earnings press release, and our 10-Q filed previously and available on the Investor Relations tab on our website Prospect Street Dot Com now I'll turn the call back over to John.
In the September quarter.
Our net investment income.
Were anti.
With $57.5 million.
Were 15 cents per share.
As we continue.
Our cautious approach to originations amidst the pandemic.
Our net income was 167.7 million or 45 cents per share.
It's a combination of positive company Pacific and.
And macro factors increased the valuation of our book.
In the September quarter, our net debt to equity ratio was 69.8%.
Down 430 basis points from March and similar to the June quarter.
As we continue to run an underleveraged balance sheet.
Which has been the case for meal multiple quarters.
Over the past two and a half years other listed Bdcs overall have increased leverage.
With a typical listed BDC in September at around 115% debt to equity or about 450 percentage points higher than for prospect.
Prospect has not increased debt leverage instead, electing lower risk.
From lower debt leverage.
With a with a cautious approach given macro dynamics.
In May we moved our minimum 1940 act regulatory asset coverage to a 150%.
The equivalent to 200%.
At the equity, which increased our regulatory cushion.
And gave us flexibility to pursue our recently announced junior capital perpetual preferred equity issuance.
Which counts toward 40 act asset coverage.
Which also gets significant equity treatment.
Yeah, our rating agencies.
We have no plans to increase our actual drawn debt leverage beyond our historical target of 0.72 0.85 debt to equity and we are currently below such target range.
Prospects balance sheet is highly differentiated from peers with 100% of prospects funding coming from unsecured.
And non recourse debt, which.
Which has been the case for over 13 years.
Unsecured debt was 88.6% of prospects total debt in September.
Paired to about half that for the typical listed BDC.
Our unsecured and diversified funding profile provides us with significantly lower risk.
And significantly more investment strategy and balance sheet flexibility than many of our BDC peers enjoy.
Our navy stood at $8.40.
September of 20 cents.
And 3% from the prior quarter.
We have outperformed our peers during the past multiple quarters of macro pressures as a direct result of our previous de risking from not chasing leverage as well as other risk management controls.
We're staying true to that strategy.
One that has served us well since 1988 controlling and reducing portfolio and balance sheet risk both to protect the capital entrusted to us and to protect the ability of such capital to generate earnings for our shareholders.
We are pleased to report the boards declaration.
Of continued steady monthly cash distributions.
Once again.
We are announcing monthly cash distributions of six cents per share for each of November December and January.
These three months represented 39, 40 years and 41st in a row six cent distributions.
As we close in on a three and a half year Mark for unchanged monthly cash distributions.
Consistent with past practice.
We plan to announce our next set of shareholder distributions in February.
Our goal over the long term is to maintain.
And ideally grow steady monthly cash.
Distributions as we seek to provide low volatility stability to our shareholders.
Just a macro market backdrop that delivers greater volatility elsewhere.
Since our IPO over 16 years ago through January 2021.
Our distribution in January 2021 at the current share count we.
We will have paid out $8.36 per share to original shareholders aggregating over $3.2 billion and cumulative distributions to all shareholders.
Since October 2017.
Our eni per share has aggregated.
$2.34, while our shareholder distributions.
Per share have aggregated $2.16, resulting in our eni exceeding distributions.
Over this period by 18 cents per share.
We are also pleased to announce our first preferred shareholder distributions on the heels of a successful launch over a 1 billion dollar 5.5% preferred program.
We are currently focused on multiple initiatives.
To enhance anti.
Return on equity and in Aby in an accretive fashion, including first our recently announced 1 billion dollar targeted.
Perpetual preferred equity program second a greater utilization of our cost efficient revolving credit facility with.
With an incremental cost of approximately 1.3%.
At today's one month LIBOR.
Third retirement of higher cost liabilities and fourth increased originations in senior secured debt and selected equity investments to deliver targeted risk adjusted yields and total returns as we deploy available capital from.
Our current underleveraged and under invested balance sheet.
We believe there is no greater alignment between management and shareholders then for management to purchase a significant amount of stock, particularly when management has purchased stock on the same basis as other shareholders in the open market.
Prospect management is the largest shareholder in prospect and has never sold a share.
Senior management in calendar 2020.
Purchased over 140 million of prospects shares incur.
The increase in cumulative purchases to over $540 million senior management and employee insider ownership is now over 27% of shares outstanding.
Thank you I will now turn the call over to my friend Grier.
Thank you John our scaled platform with over 6 billion of assets and Undrawn credit continues to deliver solid performance and the current challenging environment.
Our experienced team.
Consist of approximately 100 professional.
Which represents one of the largest middle market investment groups in the industry.
With our scale longevity experience and deep bench.
We continue to focus on a diversified investment strategy that.
It spans third party.
Private equity sponsor related lending.
Direct non sponsor lending.
Prospect sponsored operating and financial buyouts.
Structured credit.
And real estate yield investing.
Just as with past cycles, we expect during the next downturn to see an increase in secondary opportunities coupled with wider spread primary opportunities where the pull back from other investment groups, particularly highly leveraged one.
As of September 2020, our controlled investments at fair value.
At 42.8% of our portfolio.
10.4% from the prior quarter.
This diversity allows us to source, a broad range and high volume of opportunities.
Then select in a disciplined bottoms up manner the opportunities we deem to be the most attractive on a risk adjusted basis.
Our team typically evaluates thousands of opportunities annually.
And invests in a disciplined manner in a low single digit percentage of such opportunities.
Our non bank structure gives.
Gives us the flexibility to invest in multiple levels of the corporate capital stack with.
A preference for secured lending.
And senior loans.
As of September our portfolio at fair value comprised 45.9% secured first lien.
24.1% other senior secured debt there.
13.6% subordinated structured notes with underlying secured first lien collateral.
1.0% unsecured debt.
And 15.4%.
Equity investments, resulting in a stable 83.6% of our investments being assets with underlying secured debt benefiting from borrower pledged collateral.
Prospects approach is one that generates attractive risk adjusted yields.
And our performing interest bearing investments were generating an annualized yield of 11.6% as of September up 0.2% from the prior quarter.
We achieved this increase despite a headwind from the current calendar year decline in LIBOR, though we expect stability now due to our LIBOR floors.
We also hold equity positions in certain investments that can act as yield enhancers or capital gains contributors as such positions generate distributions.
We've continued to prioritize senior and secured debt with our originations to protect against downside risk, while still achieving above market yields through.
Through credit selection discipline, and a differentiated origination approach.
As of September we held 122 portfolio companies upward.
Top one from the prior quarter with a fair value of 5.39 billion, an increase of 154 million from the prior quarter.
We also continue to invest in a diversified fashion.
Across many different portfolio company industries with no significant industry concentration the largest is 15.4%.
As of September our asset concentration in the energy industry stood at 1.2% down 0.4% from the prior quarter.
Our concentration in the hotel restaurant and leisure sectors stood unchanged at 0.4%.
And our concentration in the retail industry stood unchanged at zero percent.
Non accruals as a percentage of total assets.
No that approximately 8.7% in September.
0.2% from the prior quarter.
Our weighted average portfolio net leverage.
At 4.40 times EBITDA down 0.11.
From the prior quarter and substantially below our reporting peers.
Our weighted average EBITDA per portfolio company stood at 78.5 million in September an increase from 72 million in the prior quarter.
Originations in the virus muted September quarter aggregated 177 million.
We also experienced a 145 million of repayments and exits.
As a validation of our capital preservation objective and sell down of larger credit exposures, resulting in net originations of 32 million.
During the September quarter, our originations comprised 52.8% real estate.
35.8% Agented sponsored debts.
8.5% corporate yield buyouts.
And 2.9% rated secured structured notes.
To date, we've deployed significant capital in the real estate arena through our private REIT strategy large.
Largely focused on multifamily workforce stabilized yield acquisitions with attractive 10, plus year financing.
NPR C our private right.
Real estate properties that have benefited over the last several years from rising rents.
<unk> occupancy.
Hi, returning value added renovation programs.
And attractive financing recapitalization.
Resulting in an increase in cash yield as a validation of this income growth.
Business alongside our corporate credit businesses.
In PRC has exited completely over 30 properties that are more than 20%.
Hi, or are with an objective to redeploy capital.
Into new property acquisitions, including with repeat property manager relationships.
We continue to monitor our rent collections, which are holding up well in the current environment.
Our structured credit business has delivered attractive cash yields demonstrating the benefits of pursuing majority stakes working with World class management team.
Providing strong collateral underwriting through primary issuance and focusing on attractive risk adjusted opportunities.
As of September we held 731 million across 39, non recourse subordinated structured notes investment.
These underlying structured credit portfolios right.
Prized around 1700 loans and a total asset base of around 17 billion.
As of September this structured credit portfolio experienced a trailing 12 month default rate of 220 basis points.
Which represents 197 basis points less.
Then the broadly syndicated market default rate of 417 basis point.
In the September quarter, this portfolio generated an annualized GAAP yield.
Of 13.6%.
As of September our subordinated structured credit portfolio.
Has generated 1.22 billion in cumulative cash distributions to us.
Which represents around 88% of our original investment.
Through September we've also exited nine investments totaling 263 million.
As an average realized IR of 16.7% and cash on cash multiple of 1.48 time.
Our subordinated structured credit portfolio consists entirely of majority owned position.
Such positions can enjoy significant benefits compared to minority holdings in the same tranche.
Many cases, we received fee rebates because of our majority position.
As a majority holder, we control the ability to call a transaction.
In our sole discretion in the future and we believe such options can add substantial value to our portfolio.
We have the option of waiting years to call a transaction in an optimal fashion.
Rather than when loan asset valuations might be temporarily low.
We as majority investor can refinance liabilities on more advantageous terms.
Remove bond baskets in exchange for better terms and debt investors in the deal and extend or reset the investment period to enhance value.
Weve completed 27 revise and reset over.
Over the last three years.
So far in this up in the current December 2020 corridor, we have booked 89 million and originations didn't experience $82 million of repayments were 7 million of net originations originations have comprised 64.4% agented sponsored that 19.1% non agented debt and.
14.4% real estate.
Thank you I'll now turn the call over to Kristen.
Thank you Greg.
We believe our prudent leverage diversified access to matched book funding substantial majority of unencumbered assets weighting toward unsecured fixed rate debt.
Avoidance of unsigned that asset commitments and lack of near term maturities demonstrate both balance sheet strength as well as substantial liquidity to capitalize on attractive opportunities.
Our company has locked in a ladder as liabilities extending 23 years into the future.
Today, we have zero debt maturing until July 2020, Kim or around two years from now.
Our total underfunded eligible commitments to non controlled portfolio companies totaling approximately 22 million more or less than 0.5% of our assets.
Our combined balance sheet cash and Undrawn revolver revolving credit facility commitments currently stand at approximately 501 million.
We are a leader and innovator in our marketplace. We were the first company in our industry to issue a convertible bond develop a notes program issue under our bond ATM acquire another BDC and many other unless a farce.
Now Weve added our programmatic perpetual preferred instruments to that list to first.
Shareholders and unsecured creditors are like should appreciate the thoughtful approach differentiated in our industry, which we have taken toward construction at the right hand side of our balance sheet.
As of September 2020, we held approximately 3.91 billion of our assets as unencumbered assets, representing approximately 72% of our portfolio.
The remaining assets are pledged to prospect capital funding where in September 2019, we completed an extension of our revolver to a refreshed five year maturity.
We currently have 1.0775 billion up commitments from sturdy banks with a 1.5 billion total size accordion feature at our option.
The facility revolves until September 2023, followed by a year of amortization with interest distributions continued continuing to be allowed to last.
Our floating rate assets, 83.5% have LIBOR floors with a weighted average LIBOR floor of one spot six 6%.
Outside of our revolver and benefiting from our unencumbered assets, we have issued at prospect Capital Corporation, including in the past few years multiple types of investment grade unsecured debt.
Including convertible bonds institutional bonds baby bonds and program notes.
All of these types of unsecured debt have no financial covenants, no asset restrictions and no cross defaults with our revolver.
We enjoy an investment grade triple B negative rating from S&P and.
An investment grade B Devil Athree rating from Moodys.
And investment grade Triple B negative rating from Kroll.
And an investment grade Triple B rating from Eaton gens.
With all of these recently reaffirmed.
We have now tapped the unsecured term debt market on multiple occasions to ladder, our maturities and to extend our liability duration out 23 years.
Our debt maturities extend to 2043.
With so many banks and debt investors across so many debt tranches, we have substantially reduced our counterparty risk over the years.
In the September 2020 corridor, we completed a successful tender offering for our July 2022 notes retiring around 29 million.
And then just after quarter end for tired through a tender process. Another 6 million as Sachin that's there.
Thereby taking that traunch down to 222 million.
That's the cheating more expense and 5% term debt, which significantly lower cost revolving credit with an incremental 1.3% cost.
We also have continued with our weekly programmatic internet issuance.
And the first half of calendar year 2016 during market volatility, we've reduced our leverage ratio by slowing originations and allowing repayments and exits to come in during the ordinary course.
And we expect a similar benefit in the current dynamic environment.
We now have seven separate unsecured debt issuances, aggregating 1.2 billion not including our program yet.
Maturities extending to June 2029.
As of September 2020, we had 718 million of program notes outstanding with staggered maturities through October 2043.
We also recently added a shareholder loyalty loyalty benefit to our dividend reinvestment plan or drip that allows for a 5% discount to the market price for a trip participants.
As many brokerage firms either do not make tribes automatic or have their own synthetic traps with no such 5% discount benefit we encourage any shareholder interests it and your participation to contact to your broker.
Please make sure to specify you wish to participate in the prospect Capital Corporation Dread plan through DTC at a 5% discount and obtain confirmation of the same from your program.
Now I will turn the call back over to John.
Thank you Kristin.
I hope Youve enjoyed your 12 to anniversary with us getting this.
A 10-Q out.
[laughter].
Hello. Thank you John Okay, I thought I might have been cut off okay. So now we can take questions.
Well now begin the question answer session to ask a question you May Press Star then one on your Touchtone phone.
Using a speakerphone please pick up your handset before pressing the keys.
[noise] withdraw your question. Please press Star then two [laughter] this time, well pause momentarily to assemble roster.
First question comes from Finian O'shea of Wells Fargo Securities. Please go ahead.
Hi, everyone. Thanks for having me on.
First question on the close I think Greg you talked a little bit about maybe calling some deals given the the cash return has come down a little bit is that something you're.
We're actively thinking about turning over the you see a little portfolio.
I. Thank you for your question Finian, I talked about the optionality to to call deals.
In terms of actually calling deals in the current environment I I see that as.
Though somewhat unlikely compared to other potential options. We then Phil.
Collectively a refinancing tranches for example, which again is another benefit of the position that we hold off for example, a sort of our deals had a fixed rate tranches as opposed to a floating rate and of course in the current low interest.
Rate environment or to a.
Prior years, the modest cost upfront of such a refinancing had extremely high.
Hi, internal rate of return investments attached to it a triple digit many cases quadruple.
Digit I or ours, so we've been pursuing that type of optimization in general our COO.
Book These deals up in my opinion worked.
As advertised in the sense that when you have a dislocation in the marketplace like what we saw with a spike in defaults in stress created especially in certain industry segments, often from the virus Oh, you did have a <unk> a select.
The number of deals that trip there overcollateralization tests and had a diversion of cash flows away from the equity tranche that we hold a but these are they worked as advertised I say because these are self healing vehicles, where a then the deals get on sides again and cash flows.
Get restored or two said a equity tranche without any foreclosure any problems that created by simply borrowing alone or even a bond and we think the September quarter was a needier from such a divergence Dan.
Point, and we've already seen a improvement since then.
It so far in October for example, the the cash distributions have exceeded.
Expectations in many cases by by 10 and 20% from what had been previously modeled a and we've seen a an increase in our our GAAP yields a divorce expected cash yields based on diversion ceasing and cash flows coming in better than.
Then expected so we're happy with how the deals have have worked out again as advertised and we continue as I mentioned in the prepared remarks to outperform the industry with a default rate of only about half.
Of the overall market.
Okay, let's.
That's helpful. And then just one more on the preferred stock issuance notice was.
Watched in the quarter does I think more recently getting off the ground, but correct me if I'm wrong, but just an update on how.
You know that program is going or how it's being received in the market so far.
Absolutely. We're very excited about this this program a adding to our many lists of first as a leader in the business development industry and this is a significant benefit from our 150%.
Election from from a few months ago, a we view this as an accretive and ratings neutral a driver for our business a it's a programmatic.
Type of offering in which we expect to.
Raises a billion dollars of capital in an accretive fashion over a multi year period.
Which is fine because that allows for that much like with our programmatic debt issuance that we do through an in capital today.
We have a just in time capital that comes into.
To fund our capital needs and in originations and you know transactions that we're doing in the marketplace and obviously this was a enhance and grow our balance sheet. It also provides a cap another capital source for us that isn't as dependent on the more volatile traded capital markets that.
A highly beneficial when you go through bouts of volatility it's nice to have a valve that's turned on where capital is is flowing in the weekend then utilized to fund deals I think everybody in the credit space wishes I could go back to the margin by everything that they can some of the.
Those discounts were quite fleeting or indeed, so other process as is typical for a nontraded programatic issuances you go through a period of materials preparation third party due diligence Ah report generation, a selling agreement side.
Mining and and then you get capital raises that start we've had a modest influx of capital today, but we're really of a I would say laid the ground work in the last.
Several weeks with with some excellent work done by our team and in our distributor.
Preferred capital Securities a is that a then puts us in a position to Oh, just start bringing in greater capital. So our hope is that you'll see a increases here in the December quarter with a more of a significant impact from an accretion and numbers standpoint.
Calendar year 2000.
That's helpful. Thank you.
Very much so and that's all for me. Thank you.
Thank you next question is from Robert dollar of Raymond James. Please go ahead.
The box you said that the the the target leverage or the overall business would remain debt to equity 0.7 to <unk> 0.85, I mean can you clarify with this.
This book.
Would be treated as an equity in that calculation and if that's the case do you have a target regulatory leverage that you you'd like to get to separate from yeah, because obviously to your point the preferred accounts because as debt in the regulatory leverage calculation, but it's treated there.
From a rating agency so could you clarify that.
Sure Robert at the first part of your speaking got cut off but I think you were asking about whether or not the preferred is part of the 0.7 0.850, yes leverage that was quoted at and where we would get to a after giving effect to the preferred so the preferred is not part of the points up and appointed five.
It's not a substitute for or.
Historical Oh drawn leverage but in addition to in a ratings neutral Oh from a ratings digital standpoint, because it is a perpetual instrument, where there's not a cash drain a requirement. So this is attractive from a risk management.
Oh and liquidity standpoint for our business Oh, well, if you take the billion dollars of target issuance and and then assume that in full Robert <unk>. It would add about I'll call. It <unk> 0.3.
A two way Oh.
Her to just to comment so 0.3 on top of the wherever we are on the debt side of <unk> 0.7 to <unk> 0.85, that's approximately where we would where we would end up.
Got it got it very helpful. Thank you I'm just just one more on on dividend income in the quarter. Obviously, you know that I wasn't necessarily focus on one portfolio company, but valley electric has historically been a good dividend path for you.
This quarter it didn't pay a dividend, but the equity got markup. So can you give us any color on on why no dividends from that source and what the prospects.
Oh, the dividend income from that source or some other portfolio companies to that.
Maybe is it in the latter part of this year or more likely next calendar year can you give us any color that.
Sure.
I.
I mean in general we have over the years I would say a transition.
A bit more from from the dividend or distribution.
Strategy, where we hold a.
Deeper into the capital structure, it and have greater equity and economic ownership of <unk> businesses.
That we've looked for a income drivers more through a what we hold on the debt side as opposed to.
<unk> equity Valley has been a strong contributor over the years Oh for those that they may not be aware. This is a in infrastructure services provider in the Pacific Northwest a particular, Washington State that's involved in.
Both corporate as well as governmental and institutional installations, there's quite the tech boom that continues in Seattle, and and surrounding areas areas and and value.
Beneficiary of that growth and has grown substantially over the years of our ownership in conjunction with with management, which has done it done a terrific job as well.
<unk>.
Dividend income can be episodic and and and not quite as as recurring as one might like which is a reason.
Or having a preference for in prioritizing.
Oh on the debt side of the equation because.
Equity distributions does that you might and probably no our captive whatever tax based earnings and profits are for a particular Ah portfolio company.
And you can have a other in many cases not to economic factors that can change the tax characteristics of a particular business done sometimes it just timing related aspect as well. So we're happy with how valley is doing from a valuation standpoint.
Point.
There are many factors that go into the value of a business as a part of it is a company specific for how the business is performing a part of it is is macro.
Specific in terms of overall interest rates and multiple then and credit spreads and.
Chris gone and risk off and then in other drivers and in general I think you've seen in our book and a horse, but many other portfolios out there in the September quarter and general macro.
Up tick up just about every well every business segment.
It's in our book, whether you're talking about corporate credit.
Control deals noncontrolled deals structured credit real estate yield.
Small online lending book do we hold every single line of business was up this.
This quarter and I'm, you know the vast vast bulk of other companies.
As well, where Ah what were up this quarter as well so in general an uptick in the market and you know some factors you have a little bit more phone.
One could control over in terms of helping to drive individual company performance versus other factors, but so we're always deal measured in in that and take a long term view Robert.
That helpful to you that that is helping well that actually ties into kind of the next question I mean historically my last question. Okay. So let's start with you for you made more controlled investments.
No haven't recently made a lot of incremental new controlled investments.
As you know given the the status of the Balkan and companies that are out there in the M&A market see battling et cetera.
Would you expect over say the next.
18 months to two years, you'll control book as a percent of say the overall book to grow or decline in size or stay the same I mean, any appetite increase yet, but increasing the control exposure like that.
Well, it's an interesting and highly relevant question, Robert because that's a discussion and debate we have frequently.
As you can imagine a as a dividend payer as the company focused.
Rarely on principal protection downside protection and primarily a lender.
We are just simply focused on on that preservation of capital at the same time when you're in the power of lending a business absent special dislocated periods, where you can buy a assets at a discount.
But in general a par lenders as one direction to go down through through default. So it's nice to have offsetting a equity upside to compensate hopefully more than than compensate for what might happen on the straight lending side of things.
Oh, we have seen that primarily in our business and where we have been driving.
[noise] upside through our real estate business.
Which is a in equity in many cases preferred equity with upside type of business because we have first loss subordination by a third party property management team.
But we get upstream that and that's how we've delivered north of 20%.
Internal rates of return a a more than 30 exit above we've have had a very active discussion on the corporate side of things because we've had nice successes there it's been a frothy market of course for M&A or the multiple.
<unk> that we desire to pay and seek to pay a in general tend to be lower than where deals are clear the market because we're trying to find deals and and structure deals where we have both downside protection and an upside and generate an attractive current year.
So we're trying to balance the you know the short term medium term and long term at the same time and only a small percentage of deals will will pass muster well you see an increase in size in our in our portfolio companies and were up to I think a record level of 79 million Oh that.
<unk> EBITDA in general and credit bigger is better but.
We are selectively looking at smaller companies than that where we could potentially be a one stop bar as we've done historically a at a low multiple of cash flow, leading with a debt instrument also holding equity a ideally not all of the equity.
But having a a significant ownership of the management team as well for for good alignment and that is an active part of our business Robert Yeah, I would just say, it's a it's episodic.
You don't know when you're going to connect on a deal, but we have a lot of dry powder at the moment and particularly when you have markets to get seized up and volatile time period. So I mean here in 2020, a there was a relatively rapid healing on the lender side, mainly because the.
The the credit markets in capital markets recovered swiftly otherwise you saw a lot of folks that simply stopped doing deals you have another period like that and it's just a question of of when not if and a pull back then sponsors won't be able to get their deals financed and the power of the one stop become.
A much stronger and a and the connectivity or connect right. If you will of our deals and our capital is likely to go up so it's hard to predict to answer question will be higher will be lower 18 months from now not really sure kind of depends on market conditions, what we find we've got a pretty good.
Attractive pipeline right now of deals a real estate is active right now we've got some corporate control deals in the pipeline right.
Right, now and and I'm talking new platforms, and not just add ons to existing companies, which have been another course driver for us over the years. So it's a vibrant very much active a part of our business Robert and you appreciate the question.
Okay. Thank you.
Got anything you'd add to that.
No I think you said everything that there was to be said thank you.
This concludes our question and answer session knowledge to turn the conference back over to Mr., John Barry for closing remarks, Okay. Thank you everyone have a wonderful afternoon bye now thanks.
Thanks, a lot.
France is now concluded. Thank you were attending today's presentation you may now disconnect.
[laughter].