Q4 2020 Landmark Infrastructure Partners LP Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the landmark infrastructure partners fourth quarter 2020 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during the session you'll need the press star one on your telephone as a reminder, today's program may be Rick.
Courted I would now like to introduce your host for today's program Marcelo Choi Vice President of Investor Relations. Please go ahead.
Thank you and good morning, I would like to welcome you to landmark infrastructure partners fourth quarter earnings call today, we'll share on the operating and financial overview of the business and we'll also take your questions. Following our presentation presenting on the call today are timber AZ, Chief Executive Officer, and George Doyle Chief financial.
<unk> officer.
Like to remind all participants that our comments today will include forward looking statements, which are subject to certain risks and uncertainties in the.
Number of factors and uncertainties could cause actual results in future periods to differ materially from our current expectations for <unk>.
The complete discussion of these risks we encourage you to read the partnership's earnings release and documents on file with the SEC. Additionally.
Additionally, we may refer to non-GAAP measures, such as SFO <unk>, the EBITDA and adjusted EBITDA during the call. Please.
Please refer to the earnings release, and the public filings for definitions and reconciliations of these non-GAAP measures to their most comparable GAAP measures and with that I'll turn the call over to Tim.
Marcello things good.
Morning, everyone and thank you for joining us today, and they would spend of long year and I hope everyone is doing well and managing during these difficult times.
As you saw from our release this morning, despite the ongoing challenges from the pandemic. We finished 2020 with an extremely strong quarter of operating and financial results.
Given the environment. It really was a tremendous achievement and demonstrates the strength of our portfolio and I think the benefits of the path that we're on.
Rental revenues were significantly higher year over year and quarter over quarter.
Driven by our recent data center acquisitions, we made in the third quarter and on.
Our portfolio generated an all time high.
The <unk> per unit.
Remember, we sold our interest in our European outdoor advertising joint venture in June and the redeployment of that capital into data center acquisitions was weighted towards the last month of the third quarter in September.
In the fourth quarter the <unk>.
Full quarter of revenue and accretion from these acquisitions was realized driving a meaningful increase in the F. F O.
As you can see from our results the <unk>.
Portfolio continues to perform at an extremely high level.
The pandemic has not significantly impacted our wireless communication digital infrastructure and renewable power generation segments. The.
These industries continue to play an essential role in our modern day life and have generally performed very well in past economic downturns.
As we've talked about before the impact from the pandemic has been mostly felt within the LMR kids outdoor advertising segment.
Outdoor advertising has experienced periods of lower outdoor traffic and business closings in certain key outdoor advertising industries, including entertainment travel hospitality and foodservice among others, which has all contributed to a lower outdoor advertising.
Spend.
However over the past two quarters, we've already seen the outdoor traffic improve to pre pandemic levels in many regions across the country and we expect the outdoor advertising spending to follow suit at some point, but at a slower pace during the economic recovery phase.
After a couple of quarters of sequential decreases in our outdoor advertising segment revenues, we did see a slight increase in the fourth quarter and we're encouraged by these improving trends.
We do expect to see further improvement in the segment as outdoor advertising spending increases over time, so I would say that we're cautiously optimistic that the worst is behind us in this area.
More importantly, our exposure to the outdoor advertising segment is much lower now than before the pandemic.
Prior to the crisis, our exposure was approximately 37% of total revenue.
Today after the disposition of our interest in our European outdoor advertising joint venture and the redeployment of capital.
Outdoor advertising is approximately 22% of total revenue.
So we now have a more diversified revenue base across all of our segments and a lower exposure to industries that are more heavily impacted by the pandemic.
It is important to remember that the majority of our portfolio in wireless communication and digital infrastructure and renewable power generation has demonstrated.
Australia, the tremendous resilience and its increasing importance in today's world.
Despite the pandemic LMR K posted record of <unk> in the fourth quarter.
Our distribution coverage was very substantial at almost two times.
The excess cash flow generated by our portfolio of beyond the current distribution level has allowed the partnership to preserve liquidity.
Increase our balance sheet flexibility and pursue accretive acquisition opportunities that have led to higher growth and cash flows.
We're encouraged by what we see and as we've said, we'll continue to reassess the distribution level the remainder of this year.
Throughout our history as a public company. The partnership has generated significant income for its unit holders through its common distributions.
Since the inception landmark infrastructure has paid out cumulative common distributions of approximately of $165 million.
Representing $7 90 per unit for those units issued in the IPO.
Hello, Mark case historical distributions had been supported by the strength of our portfolio, which continues to perform extremely well and is characterized by high occupancy rates stable and growing cash flows high quality tenants and the exceptional diversification.
As far as our overall business strategy is concerned in 2021 of our focus will remain on our higher return development projects and some select acquisitions.
In 2020, we acquired 15 assets for total consideration of approximately $148 million.
Those assets are expected to contribute approximately $10 6 million in annual rents and had been primarily comprised of data center assets.
The preservation of capital from our distribution cut earlier last year contributed to the partnership taking advantage of attractive acquisition opportunities in 2020.
The $148 million on acquisitions last year represented the most acquisitions for LMR case since 2017.
Really a tremendous milestone considering the challenges of closing complex transactions during the pandemic.
With regard to our development initiatives, while the pandemic continues to slow the pace of our deployments. We've made further progress this quarter with landmark vertex are still for wireless infrastructure offering and the 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 not placed 138 digital kiosks into service as of January 31.
Rental revenues from dark digital kiosks commenced in the fourth quarter of 2020, and we anticipate these revenues to ramp up in the coming quarters as more kiosks are installed throughout 2021.
And the advertising spending on these kiosks increases.
Overall, we're very pleased with our progress and believe we're extremely well positioned to continue delivering growth and value for our unit holders going forward.
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.
As Tim mentioned, despite the impacts of the pandemic, we generated record <unk> per unit this past quarter.
We continue to see virtually no impact on our rental revenue from the pandemic on our wireless communication digitally.
For structure and renewable power generation assets.
And after a couple of quarters of declining rental revenue.
Our outdoor advertising segment has stabilized.
We are optimistic that the outdoor advertising of the industry has bottomed and will continue to improve as the world emerges from the pandemic.
Yeah.
Getting into the fourth quarter results rental revenue for the quarter was $16 9 million, which was 22% higher year over year.
The 19% higher versus the third quarter.
The year over year growth in rental revenue was driven by the redeployment of capital from the disposition of the European outdoor advertising joint venture.
As well as the number of lease amendments contractual lease escalators and.
And other acquisitions completed within the last 12 months.
Turning to <unk> and <unk>.
<unk> per diluted unit was 35 cents this quarter compared to 18 in the fourth quarter of last year.
As we have discussed during prior calls.
<unk> can fluctuate quarter to quarter, depending on the change in the fair value of our interest rate hedges.
As well as various other items.
Foreign currency transaction gains and losses.
<unk>, which excludes these gains and losses on our interest rate hedges and other items.
The 38 cents per diluted unit this quarter compared to 34 cents in the fourth quarter of last year.
Representing 12% growth year over year.
2020 was truly a challenging year.
But it also demonstrated the resiliency of our portfolio.
As we look forward, we continue to expect to benefit from the contractual escalators on the wireless communication.
Digital infrastructure and renewable power generation leases.
But also from the rebound in the outdoor advertising market.
Leases with revenue sharing arrangements.
Additionally.
We expect to place additional development assets into service and realize the full quarter impact of the acquisition made in the fourth quarter.
The data center acquired in December was acquired at the end of December It did not contribute significantly to the revenue in the quarter.
Now turning to our balance sheet, we ended the fourth quarter with $214 million of outstanding borrowings under our revolving credit facility.
We continue to see very attractive financing rates for our asset classes and we have no scheduled maturities until November 2022.
In terms of liquidity, we ended the quarter with approximately $10 million of cash.
And $236 million of Undrawn borrowing capacity under our revolving credit facility subject to compliance with certain covenants.
Including our interest rate hedges.
Approximately 87% of our outstanding debt is either fixed rate debt.
Or borrowings that have been fixed through interest rate swaps.
Regarding our distribution policy.
As we have discussed in prior calls the.
The pandemic created an unprecedented and challenging environment.
While we are encouraged by the increasing administration of the vaccine and infection rates below peak levels.
The resurgence of the virus in the fourth quarter and the potential impacts of more contagious variance strange demonstrate that we are not out of the woods quite yet.
Taking these and other factors into account the board decided to maintain the 20 cent per unit distribution this quarter.
Based on this level of distribution.
Our distribution coverage ratio for the fourth quarter was one nine times.
We remain confident that our portfolio will support of higher distribution after the pandemic subsides.
We continue to believe it is prudent to maintain the distribution at the current level.
We will continue to monitor the impact of the pandemic and general economy to our portfolio and we'll continue to reassess the distribution level in 2021.
With regard to our capital plans for 2021, we.
We remain focused on our existing development projects, which include our Dart program as well as select vertex deployments across North America.
And we will look to be opportunistic with our core ground lease business.
Which may include additional data center acquisitions.
We anticipate deploying 25 billion on these development projects in 2021.
Yeah.
In summary, despite the near term challenges from the pandemic.
Our portfolio continues to perform well as seen in the record results this quarter.
We ended 2020 with the more diverse revenue base stronger distribution coverage.
And we believe that we are well positioned to deliver further growth in 2021.
We will now take your questions.
As a reminder to ask a question you will need to press star one on your Touchtone telephone.
After all of your question press the pound key once again Thats star one on your telephone to ask the question. Please standby, while we compile the Q&A roster.
Our first question comes from the line of Ric Prentiss of Raymond James Your line is open.
Good morning, and good afternoon guys.
Hi, good afternoon Rick.
Glad you're doing well.
The first question.
And it sounds like visibility is improving on.
The escalators and maybe even the outdoor advertising segment of what can you tell us as far as the T mobile sprint potential for churn the obviously hopefully.
Hopefully sooner than that of an analyst day update the street on what they're seeing but what are you hearing have you gotten any notification of where do you think the T mobile sprint churn might come out.
Yes, so far we we haven't seen a lot of lease cancellations, yet we know theres a lot of activity in the market we know.
Dishes looking for sites to build out their network and T mobile is upgrading certain sites.
Besides you've been upgraded for upside Chi as well, but we're not seeing much in the way of.
Of lease terminations, we've only seen a handful.
Would expect that that pace will pick up at some point in time.
Not sure exactly when that will be.
But.
Certainly a lot more than the.
A couple of we've seen to date.
Before the merger.
Sprint was a relatively small portion of our portfolio and that's the portion of the sites that I would expect.
To be impacted I believe most of the T mobile sites would be kept.
So that based on what we've.
Done internally based on our.
Our review of potential overlap so it might be in the.
The 3% of total revenue range would be the potential impact and Thats before you consider the on.
Offsetting the impact of potentially dish picking up sites other.
The other leasing activity.
On mint activity on the T mobile sites, because they will have to get upgraded for <unk> and for more equipment as well. So that's generally how we see it at the moment.
Okay and.
Have you had any activity from dish yet another.
Getting their plan in place.
Yes, we've seen a little bit of activity there. They are working on there the rollout.
And we've had a couple of sites that are being leased up.
Okay on the dividend policy of pretty clear of the board still being cautious watching of challenging here of improving dynamics, what should we think of the kind of the prime things the board's looking out of as far as what would trigger a change on the distribution policy.
Yeah.
Well I think the the board wants to be comfortable that the.
The the essentially the impact of the pandemic is behind us on the portfolio in that.
Comfortable of prospectively.
We're not going to see a lot of volatility and our results in that.
We don't need to be as concerned with conserving capital certainly on the.
I would say on the data center acquisition side of things.
There's been a lot of transactions that have happened in the market to some of the some of the opportunities. We are looking for to be opportunistic there Mike.
Might be potentially winding down as well so for a number of reasons, we may not see as much acquisition volume on the data centers as we saw last year, there's kind of a combination of those factors what how much capital we think we need to reserve here for.
The opportunities and then how the the pandemic plays out and just to make sure of that.
We're comfortable going forward debt, it's behind us.
Okay and the coverage on the corner of is it like 190 as you can throw on more of a decimal places on there for us.
Thank you.
Yes, I'll have to double check the math on that I thought that it was 1.9, yes.
Okay I'm just wondering if it was like $1 911 day at nine.
Just if you got the extra decimal as you pull that out.
Yes, So you mentioned the.
$25 million of spending in 'twenty one.
On the development projects, how much did you spend in 2020 on development projects, because I think the on the $148 million was just the acquisitions, if you will not development.
Yes, that's correct. The the development spend in 2020 was a little bit lighter than we expected but for that.
It was a function really of the pandemic and our ability to actually move those developments forward in 2020, we spent.
$15 million in total of about 10 of them the $10 million of that was on the Dart project and about the.
Five of that was on.
Vertex.
And just to circle back on your last question as well Rick It was one nine exactly what's the coverage ratio okay.
That's great.
When we.
Think about the the.
The data centers of debt.
Does any of your acquired in December how should we think about what the benefit is going to be for a full quarter and <unk>. Obviously, there was a nice benefit in the <unk> from the stuff you bought in September So just trying to think of.
What would that should be anticipating bringing to the market, bringing two of original sure. Yes, sure. So we always announced the <unk> the.
The revenue cumulative revenue from the acquisitions on each call. So if you compare.
What we announced at the end of Q3 compared to Q4 of that would give you that oh that amount of revenue we're expecting.
Okay on the math, yet, but the okay.
And the final one for me.
You mentioned the Dart project started.
In January there was I guess some revenue maybe from the fourth quarter, how should we think about what those revenues are bringing to bear with the existing kiosk and then the thought that you'll have more kiosks in the outdoor advertisers just trying to think of of how do we think about what darts bring to the of the financial side.
Sure, it's a little it's a little tough to.
To projects that now since we're still in the pandemic and this is a transit oriented.
Advertising platform and that's one of the areas that has been hit a little bit harder in the pandemic the.
The majority of our portfolio is the large format.
Billboard structures, which sit next to the major freeways, which I think most people have seen there's a lot of traffic on the roads. Despite the the.
The lockdown orders over the last day yourself.
The transit foot traffic is has been down advertising revenue has been weaker there, but as we get out of the pandemic whether improves.
Ridership improves I would expect that advertising revenue picks up substantially so you're right. We did receive just a little bit of of revenue in the fourth quarter, which is good that it's in service and producing revenue and given us some idea as to her.
How the is.
The advertising rates are going to shake out for that project, but as we go through the first quarter.
We are seeing we are seeing more activity, but it's not at the level, we would expect.
For the.
The platform once we're out of the the pandemic, we do expect to have roughly call. It 300, or so kiosks in place by the end of June for the end of the second quarter. So we will be mostly built out hopefully at the same time the.
Pandemic subsides and.
We will be able to see how the how the <unk>.
Platform performs debt at that point in time.
Okay, and do you envision including that just in the outdoor advertising segment or is it something that would be broken out. We're just trying to think of all sort of looking at the returns.
Moving on those projects.
I will probably include it in the outdoor advertising segment, but we can certainly provide the of the.
The revenue that's being generated off of the project.
Okay, well, obviously you got to have the T transport for dark to pay off but we are thinking of all of those people in Texas that have been through a tough time so.
Our thoughts go out to the people in the Dart area.
Yeah for sure.
Thanks, guys stay well.
You too roofing yep. Thanks, Rick.
Thank you. Our next question comes from Laura Lee of RBC capital markets. Your line is open.
Great. Thank you thanks for taking the questions I guess just.
Clarification question on the Buildout of activity from cash.
Not ticking over T mobile sites or is that independent of any sort of take over I think the thing sites.
We see a little bit of both some of it has been the existing sites that we had debt were vacant, but we certainly see activity on the market around sprint sites that are.
Yes, potentially may become vacant.
Okay.
And then.
In terms of the sales pipeline for chart on vertex.
For an update on that and if that's benefited from some of the reopening of thing going on or is that just a little bit too early to see some improvement on that.
I would say, it's a little too early for us the yes.
The challenge with with the Dart at the moment.
As Rick mentioned certainly of EC.
Had some awful weather here.
Last couple of weeks, which is not helpful. But also you know it.
It is winter time in general and.
You're seeing less focus on transportation advertising, it's more of that large format from what we can tell so we think that as you exit this the win.
Enter in the pandemic and I think thats going to the the point that we're going to start to available the.
The see the true activity that we can realize off that platform. So it should be a little bit longer on vertex.
Tough this one's a tough one as well because we're all locked up at home is it's hard to the travel it's hard to get in front of customers, but we are making good progress there we're working on signing of additional real estate locations.
Working on getting more commitments from carriers sort of pushing it forward as best we can but it is the solar pastes then.
What are what we had hoped for.
Okay and see.
On the data Center acquisition, you made and fourth what are some of it does.
I'll call you can provide in terms of what the cap rate is on the nature of the individual assay of what's like a corporate asset wasn't it.
One two or three market.
Anything along those lines.
Sure. We can we can provide some information.
As I mentioned.
To get the revenue look at the difference between the.
The revenue on the acquisitions between the third and fourth quarters, just as a general practice, we generally don't.
Give the specific cap rates on acquisitions for number of reasons, but.
That will give you some some insight as to where that one was acquired that asset was acquired in the.
The the Seattle area at the greater Seattle area, it's a essentially a shell or powered shell type transaction.
Long term leased.
So.
Okay.
On attractive asset characteristics for us and consistent with the the.
The other type of data centers that we've acquired and then this one is a co location.
Type of data center.
We triple net lease it to the Colo operator.
Yeah.
Oh come on.
And my last question is on the G&A reimbursement agreement you have in place with the sponsor buoys that and towards the end of this year have there been any discussions on that about possibly extending it or.
What are your general thoughts on the odd.
That agreement.
Yeah.
Yeah, there have been discussions about it but.
But no decision has been made or no proposal has been made at this point in time.
The the G&A reimbursement arrangement was I would say important when we initially did the IPO on the launch of the portfolio. As we were we had a relatively small portfolio and G&A was a big number relative to the portfolio. So as we've grown certainly G&A has grown as well but.
The net.
The company is in a better position to manage the the G&A and so that's part of what we'll assess over the coming quarters and.
We'll provide some more clarity on that as we worked through the year.
Great. Thanks very much.
Welcome.
Thank you again to ask a question. Please press star one on you touched on the telephone again the star one on your Touchtone telephone task of question.
Our next question comes from the line of Liam Burke of B Riley. The question. Please. Thank you good morning, Tim Good morning, George.
Good morning, good morning, Liam.
Two of our George when Youre looking at the asset acquisitions, particularly data centers do you see more competition for acquisitions than you normally would in your traditional.
The infrastructure assets like so.
All sites or even at outdoor advertising.
Yeah, that's a that's a good question the.
These markets are very different from the standpoint of.
But the dollar size and the way the assets are generally sold on the data center side of things a lot of them are done with brokers not all of them. We do we do a fair amount of off market transactions and then on the ground lease side of things that is mostly I.
I would call it more of an off market type.
The transaction.
But given the small dollar size you can have a fair number of competitors pop up in the the ground lease side of things on Datacenters it'll it'll just depend on the size of the data center.
And how the seller wants to approach the market we have seen.
More competition on.
I would say both are in both segments both of the ground lease and the data center side of things and I think part of it is a reflection of how well. These assets have performed in the downturn their role in the the digital economy going forward, but then also reflection of the interest rate environment.
Can get very cheap financing on.
High quality real estate and infrastructure like these assets.
And on the data center or are they still on sale leasebacks or have you looked at any other do you see any other.
More attractive financing source.
A number of them have been sale leasebacks, not not all of them though.
On our history of acquiring the data center assets.
It varies based on what comes to market you can get attractive deals either way, but I would say for the most part what we're going to focus on is that triple net powered shell.
Type transaction, where we have of long term lease of high quality tenant. It's a highly used datacenter it's critical infrastructure.
For that tenant.
And we invest in the property at a relatively low <unk>.
Cost per square foot basis, which is similar to what we do essentially when you look at like towers of.
And the renewable projects where the.
Tenants have invested substantially on top of our real estate interest and by virtue of that we ended up with extremely high renewal rates very sticky tenants.
Very sticky tenants on the site and then we benefit from the annual escalators as well. So that's predominantly what we should expect to see.
Great and then just finally on Dart you seem that you are making nice progress rolling out the.
All right.
Is there anything you can just give us a sense of what you've learned from this project, where you kind of apply to future infrastructure development that would raise your return on these investments.
Yeah, absolutely I think the the first development project always gives you a lot of insights that you may not have necessarily been considering.
From the.
The gecko, but one of the one of the things that we did put in place for the Dart project was are.
Essentially our $3 five network that allows us to.
Connect our infrastructure and that the knowledge and the infrastructure.
The infrastructure there can certainly be leveraged across other projects and that would substantially improve the are the.
The economics going forward certainly we've got.
Better understanding now.
Time frame for development of man.
In the.
The the.
The cost side of things a lot of a lot of things in general, but I would say really the some of the infrastructure. We built for the network for monitoring things like that certainly is scalable across other projects.
Great.
Thank you George.
Absolutely.
Thank you we have a follow up from Ric Prentiss from Raymond James Your line is open.
Yeah, Hey, thanks for taking the follow up.
Sure.
His questions there with radius, becoming a public company have you noticed any change in the competition for for land.
In the U S and obviously, they're doing it on a lot of other markets any interest in going to other markets on the land side of things.
Sure Yes.
Yes, you're right on the radius is folks who say from.
The port from what we've seen in the portfolio they've built are predominantly.
In international markets, we don't see them a lot on individual deals here domestically. There has certainly been a lot of interest in the ground lease space over the last year or so.
We've seen a number of large portfolios.
Come to market and get a lot of the institutional interest for us on the international side, we were in Australia, where in Canada. We may selectively does it additional international assets, but for the most part I would expect us to be.
Concentrated in the U S. If we do something internationally, we'd really be looking for an opportunity the to get an edge.
In one of those markets versus.
I'm trying to build something from scratch, so we'd be looking for a partnership of portfolio are some weighted to jump into that market rather than starting asset by asset is that it can be a very time consuming the expensive endeavor.
Right.
And any update on the assets that are up at the the.
A sponsor level as far as the desk from funds that are up there on the right of first refusals.
No no real update at this point I think the.
Yeah from the opportunity standpoint, we really like the the data center side of things from a total return perspective, we think the cause of.
The the risk adjusted return there is very attractive the cap rates are attractive when we when we look at the ground lease portfolios right now they are far more expensive than the the.
The data centers that we're targeting.
They provide similar.
Economics.
Turn level. So, we'll we'll be focused on that area of probably a little bit more prospectively.
From extensive I'm looking on the prices are you seeing in the land, whether it's a multiple or cap rate.
Boy It it is all over the fourth.
Yes, it's all over the place it it depends on the market depends on the terms, but we will see anything from.
The five caps the seven caps, so it'll depend on the size of the asset.
The escalators that are in place the the market the well.
Other the.
The lease has a near term expiry with no renewals a lot of things will go into that.
But you know kind of you know.
Basic straightforward long term lease 2% escalator assets those are going to be on the upper.
The middle of the upper end of that range. It's.
Some of the other factors that drive the aggressive pricing down about five cap range.
Gotcha.
You've talked about interest rates of couple of times of what what's your view on on interest rates, we've seen it kind of tick up here.
What are you thinking about the interest rate trends and how are you going to handle the balance sheet.
Yes, we like the the approach of having staggered debt maturities.
Ultimately not having a lot on short term debt.
Ideally what we would have is true.
<unk> is the debt that would mature every.
Every other year or so and per.
Predominantly go with fixed rate debt, there's not a lot of reason for us to have a lot of variable rate debt since our assets.
Do not have really unfair able feeds for John they are pretty pretty fixed.
So we will continue to do Securitizations the securitization market is very attractive.
For whether it's.
Telecom renewables datacenters.
As far as it's.
It's far less expensive now than it was before the pandemic and even.
A couple of years before that financing.
Extremely cheap and we'd want to take advantage of that Mount load up on debt, but at least fix it and term it out.
And have you seen datacenter securitizations out there and how big of a portfolio do you need to have to securitize data centers.
I think you can do a securitization with the maybe about $250 million worth of assets. So we're roughly at about the size, where we could do a securitization.
And the Securitizations, we have seen that have gone off recently are in that 2% for.
Fixed.
Five year.
The maturity range.
So it's really about close to one of you might be all of you guys are close where you might be able to tap that given the most recent acquisitions the towards the end of last year.
Yes, absolutely we have a we have a nice diversified portfolio of data centers.
A number of different tenants markets lease maturities. So yeah, I think we would have a.
The good portfolio for securitization.
Okay, great. Thanks for the follow up guys stay well absolutely.
True.
Thank you at this time I'd like to turn the call back over to Tim Brady for closing remarks, Sir.
Operator, thank you and the George.
George and I want to thank you for joining us today I know, it's easy to say that these are difficult times and people face the number of different challenges, but if the last year has shown us anything it's that we can get through all of this by working together with regard to the business.
We've taken what we think are the appropriate steps to position the company to deal with.
Unprecedented market and the take advantage of opportunities as they present themselves.
We're confident in the fundamentals of our business. We're pleased with the progress we've made and we believe the we are where we need to be the continue moving forward. This year so with that please.
Please continue.
Be careful and stay safe and we'll talk to you next quarter operator.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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