Q4 2020 Healthcare Trust Of America Inc Earnings Call

Good day and wealth.

And to the healthcare Trust of America fourth quarter, and full year 2020 earnings conference call.

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I would now like to turn the conference over to David.

Please go ahead, Sir Thank you and welcome to healthcare Trust of America's fourth quarter and year end of 'twenty and 'twenty earnings call.

All of our earnings release, and our financial supplement yesterday after the close these.

These documents can be found on the Investor Relations section of our website or with the SEC.

Note. This call is being webcast and will be available for replay for the next 90 days, we'll be happy to take your questions at the conclusion of our prepared remarks.

During the course of the call we will make forward looking statements.

These forward looking statements are based on the current beliefs of management and information currently available to us our actual results will be affected by known and unknown risks trends uncertainties and factors that are beyond our control or ability to predict.

Although we believe that our assumptions are reasonable they are not guarantees of future performance there.

And therefore, our actual future results could materially different from our current expectations for.

For a detailed description of potential risks please refer to our SEC filings, which can be found in the investor Relations section of our website.

And I'll turn the call over to Scott Peters, Chairman and CEO of Healthcare Trust of America Scott.

Good morning, and thank you for joining us today for healthcare Trust of America year, ending 2020 earnings conference call.

Joining me on the call today is Robert and Duncan, our Chief Financial Officer.

As we sit here today it is hard to believe and it is almost one full year instead of COVID-19 pandemic took hold.

Impact has been devastating for many individuals and communities it is and encouraging to see the resiliency of our healthcare systems and providers.

Which are seeing patient volumes return to pre pandemic levels, while continuing to treat patients.

In addition, it is important to recognize the performance of our company and our team which has worked through these challenging times and manage to keep our buildings open and operational and.

And our employees safe and our business moving forward.

Despite these challenges I am happy to report and <unk>.

And it has continued to improve our enterprise value and deliver strong financial performance for shareholders and 2020.

This is the hallmark of Hca's position as the leader and the medical office sector.

And the third quarter, we generated record earnings for HCA and we of fall.

All of that up and the fourth quarter when they return to our customary growth and acquisition velocity.

And full year, we delivered record earnings of $1 71 per share of normalized F O up more than 4% from 2019 and and the middle of our guidance provided at the start of the year.

We raised our dividend for the seventh year, and your ROE and a level of consistency and growth that is unparallel within the MLP focused REIT.

We signed a record number of leases of $3 9 million square feet.

And more than 17% of our existing portfolio and did so at a record re leasing spreads up almost 5%.

Tenant retention for the year it was very strong and 87 per cent.

We collected almost all of our rent and I'll still finding ways to work with our key healthcare relationships as they navigated and.

We closed on $181 million of MLB, and and attract a year one yield of 6% and maintained our development progress and even higher yields.

Finally, we have raised a significant amount of long term capital that gives us a strong and conservative balance sheet.

More than one 4 billion of liquidity and no near term debt maturities.

As a result, HCA is and a very strong position heading into 'twenty and 'twenty one as outlined in our REIT and stated earnings guidance, we put out last night I'll now turn call over to Robert who will walk through our performance of the quarter and the year.

Thanks, Scott during the year of the medical office sector and has demonstrated the reasons. We believe it is one of the best areas of real estate and in which to invest over the long term our tenants have strong need based demand and that has proven resilient and bouncing back after the lows of March and April during that period, we took a very forward looking long term view of our business and made of.

A decision to proactively reach out tour and leading health care tenants and work with them. If needed. This included deferring rent and executing early renewals actions that had relatively minor near term impacts but positions us as a partner of choice for the long term despite.

Despite of this flexibility we still have a very strong cash collections during the year and continue to sign leases of strong rental rates that reflect high levels of demand for space.

For H T a our portfolio and company of our second to none of our portfolio is broad with seven $5 billion invested across more than 25 billion square feet. We're also invested and a strong mix of property locations on campus across the street from campus and and core community locations. This best reflects the trends in healthcare that had been accelerated by Covid.

Mainly the moving of care to locations that are closer to the patient more convenient and better able to accommodate increasing level of care of that is shifting and the medical office buildings. This investment philosophy is further supported by recent market reports from Revista The only company reported on actual market data within the sector, which demonstrated that core multi tenanted.

Off campus and obese have at least the same if not better performance and occupancy rent growth and same store performance over the last five years on campus of movies.

Well, there's certainly does not diminish the value of the on campus Amobi. It does highlight the increasing value of the core critical outpatient and <unk> that we have highlighted over time and are becoming increasingly important to leading healthcare providers of <unk>.

Very positive sign for the sector, which increases the investable universe of high quality assets.

And our portfolio is also diversified geographically with no one market accounting for more than 10 per cent of rent and no single tenant accounting for more than four 2%. Our tenants consists primarily of leading healthcare providers and our markets with almost 75 per cent of our rent coming from health systems universities, and large national health care providers and 60 per cent of our.

And coming from credit rated tenants.

From a financial perspective, and the fourth quarter, our cash NOI grew two 5% of returned to a customary same store of run rate over the years and driven by a two 2% increase in base rent.

We collected more than 99, 5% of our contractually do fourth quarter rents, while continuing to see cash inflows outpaced total charges.

We also saw of rent deferrals get repaid ahead of schedule with just $2 6 million of $11 million that we deferred remaining outstanding as of today.

We continue to see strong leasing activity signing of almost 600000 square feet of leases with renewal spreads of $2 seven per cent and tenant retention of 80% Inc.

Priest, our investment activity.

Closing more than $129 million and acquisitions at year, one yield of 6% reflective of a rifle shot approach to individual deals and our key markets, where we can utilize our in house asset management platform. This compares favorably to the low 5% cap rate pricing and that these opportunities would command if they were sold on a portfolio of level basis.

And without the additional synergies that we're able to achieve.

We also saw a relationship focused approach towards deferrals of rent collection of that start to pay off with several acquisitions coming directly from healthcare systems, and a pipeline of future developments and acquisitions starting to increase.

And we grow earnings of 43 cents per share.

Our recurring Capex for the quarter was $16 $5 million, which was approximately 13% of cash NOI as a result, our normalized <unk> for the period was $83 million up 11% from the prior year.

Our developments of continued to progress, where we completed our first projects and Raleigh, and the third quarter with three more projects and Dallas, Miami, and California, continuing with completion on track for 2021.

Combined these projects totaled more than $150 million of investments at an average yield of more than six five per cent that we expect to be fully stabilized with all projects paid rent by the fourth quarter of next year.

We can continue to invest with confidence as your balance sheet is strong with leverage of just five three times incorporating of afford equity and $1 4 billion of liquidity coming from long term capital that we of source effectively with more than $100 million of cash and our balance sheet and $277 million of Ford equity remaining to be settled and its investments come to fruition.

We also have very limited near term maturities with no bond maturities before 2026 as a result of the $800 million bond deal that we did in September at record lows of two per cent.

This level of performance and insight into our business gave us the confidence to raise our dividend for the seventh consecutive year and results and our dividend growing more than 11% since 2014 annual growth of approximately 2%, which demonstrates the consistency and strong performance of our company and underlying business model.

It also allows us to reinstate our earnings guidance with expectations of of 2021 coming in at $1 71 to $1 79 per share.

This largely reflects our expectations that we will have same store NOI growth of two to three per cent for the year with the rest of the variability driven by the timing of acquisitions dispositions and our forward equity.

We expect our recurring Capex to run between 11, and 16% of NOI over the year, which includes up to $10 million and energy saving initiatives.

In addition, as we see our levels of leasing activity, increasing and we expect to spend an additional $10 million to $15 million and capital to bring existing suites to move and ready condition to meet the demand for quick move ins that are coming to the forefront.

As we continue to operate our business and return and making investments we will finance our business in a manner that maintains low leverage and significant liquidity.

Finally, I would like to add that.

We have added additional disclosure of this quarter around our developments and redevelopments and their impact to our net asset value given the significant value and these assets. We believe current model significantly undervalue them and will be raised higher as their true value is understood.

And we look forward to working with analysts and investors over the coming weeks and conferences to discuss this performance and our new disclosures I will now turn it back to Scott.

Thank you Robert and will open.

And your questions.

Thank you we will now begin the question and answer session.

So ask the question you May Press Star then one of you touched on some of them.

And as they're using a speaker phone could you. Please because of the handset refresh of the keys to of.

It's all of your question. Please press Star then two.

Today's first question comes from Juan Sanabria tsunami of excuse me with BMO capital markets. Please go ahead of it.

Thank you.

Just hoping you could I could give a little bit more color on the acquisition pipeline are pretty broad.

And.

A wide range kind of what your expectation is in terms of the timing of that and in your forward visibility in terms of deal flow here and start the year.

Well, yes.

Very good position with the floor and equity that we had.

And I think we're trying to be extremely diligent.

And we're seeing opportunities, which is good and Rob.

<unk> talked about some of those and and you saw and the fourth quarter, we closed on from acquisitions.

Our view is that we continue to like.

Growth cities, we like our market.

And we like our property management to be able to and leasing and being able to share.

And bringing accretive.

And the bottom line and that's really what we're focused on is that acquisitions that we acquired today and perform over the short term long term.

Greetings to all.

Great. Thanks for that and then just question on the occupancy.

Scott.

And what what drove the kind of quarter over quarter dip and the fourth quarter, maybe if you could talk to leasing expectations for 'twenty one.

And already been dealt with and any releasing spread assumptions and guidance.

Robert Yes. So you know I think well go answer the you know as we look at 'twenty 'twenty, one and I think our expectations are to continue to be and that you know.

70 day, 80, 85 per cent type of retention.

And throughout the year I mean, I think you know as we saw in 2020, we were able to re lease and maintain a very high level of retention.

Well, we're still working through almost 4 million square feet of leases there.

We anticipate we've got less rollover this year than we did last year and I think we expect to continue to be able to get and maintain kind of like you said that seven day 80, 85% type of retention.

I think as we looked at some of the occupancy that was coming towards the end of the year I think we typically have a little bit of of seasonal.

LOL as far as occupancy goes of of a lot of kind of year end of year and type exploration side of that I come up and.

And then we see seem to generally be able to build off of that as we get through the first quarter into the second and third quarter and I think that's our expectation.

We're looking at 2021 down and we've got actually a number of kind of larger deals that we're seeing that of act.

From health systems that were maybe a little hesitant to move forward and the second half last year, and now really being ready to potentially execute now so I think we see that coming back off the bottom as we get into the really and the second and third quarter.

Okay.

And our next question comes from Nick Joseph of Citi. Please go ahead.

Thanks, and just curious if you could talk about the competition for assets and.

In terms of acquisitions, obviously, youre being diligent and prudent.

And what's going through the pipeline, but are you finding that you're competing with different types of buyers.

And just.

Of.

Versus what you've seen and the path.

Yeah.

Well I think it's still a very.

Competitive market and I think that's one of the things that you.

And you need to be cautious about right. Now is net net you are going after assets net.

Bring benefit to the company.

Longer term and also fit into our market.

So.

There are some portfolios there are some assets out there that.

On the market that just would not get our our goals our objectives our portfolio. So.

And we pass on those but.

I think you've seen the same players theres still a high degree of attractiveness to the MLP sector and.

And we've been asked this of while obviously and we've got our key markets and so we're pretty comfortable when we find and asset that we like and relationships that we built are helping.

A lot and.

That's something that is and as a benefit for someone who has been and it now and once 14 years 15 years.

Thanks, and then just.

On development I appreciate the comments on the stabilization of the yields.

And what's the opportunity to backfill that pipeline and and what's kind of the size, we should expect going forward.

Yeah.

Well I think as we look at our development kind of portfolio.

We've kind of gotten into the markets, where we've been really looking to develop kind of largely build to suit type of assets assets with a high degree of pre leasing mostly driven by healthcare systems. Like you know I think as we look at the pipeline as we went through Covid and most of the.

Healthcare systems, we're much more focused on how do you take care of patients. How do you look for vaccination sites and things like that so they are large development pipelines.

And essentially put on hold for a year or so so I think on the one hand, I think we would anticipate that those type of RFP projects will be coming back.

To start come to fruition and the middle half of this year.

But I think on top of that we have found some other interesting opportunities where there have been developments, where it with good land parcels, where kind of key growth areas and markets where we.

We've been able to identify and work with some local developers and are.

<unk> seen some opportunities to do more of a joint venture developments, where the healthcare systems have talked to us about growth areas, we've been able to find and local developer with a parcel of land and we see some opportunity to do some more of those type of joint venture debt at pretty attractive rates.

Because they're a little less competitive it's more fee simple types of certain things like that so.

We've got one that we had talked about previously and Raleigh that we anticipate kind of bring into market here first part of this year anticipate.

We anticipate getting a strong.

Out of pre leasing before you've actually push kind.

Shovels and the ground. So I think our long from coal has been of hundreds of $200 million of annual announcements and Youll starts.

Youll see us get back towards that path and 2021.

Thank you and and I think.

Final comment Youll see us become more active in acquisitions and certainly this year than last year, but that's more a I think a reaction to the fact that.

Moving into a more normal environment.

Thanks.

Right.

And our next question today comes from Connor Seversky will burst.

Hi, everybody. Thanks for having me first just high level question.

As we see this kind of migration from some of the major metros and I'm. Just wondering if you guys are looking at any new markets as attractive or fit the criteria that you would choose to invest and.

And we continue to look I think that's one of the the.

And the longer term investment thesis.

Companies are going to go through which is that there is going to be a change and demographic as we move forward.

And.

We like when you look at where we are located and you look at this demographic net.

Net youre starting to see.

And from out of some of the cities or some of the locations and there's some other types of geographic locations, we really like our footprint.

And so I would say that there's not a market and we stayed out of a lot of the some of the more and more popular markets like La and San Francisco, and New York and and so forth, we werent there but.

And heavily invested in.

Florida or Texas.

And you look at South Carolina.

And look at some of the other markets that we're in Raleigh.

So those are gaining population Arizona.

And I think that's going to bode well for our occupancy and for the valuation of our portfolio, but also as we continue able to grow those markets.

From an acquisition perspective.

Okay. Thanks for that and then moving on to dispositions and your guidance assumptions.

I'm just wondering if there's any rhyme or reason here. If these are already slated to be sold or are you kind of looking for.

More opportunistic situations to kind of spin and spin out some of these assets out of the portfolio.

Yeah, you know and on the dispositions. We we always you know we get a lot of inbound calls as you would expect and I think as we've gone through all of our assets and our markets of where we want to be kind of getting to Scotts earlier comment.

Talked a lot about markets that we.

We don't think so.

Might not be a good fit for us long term. So I think as we look of dispositions right now we've got a handful of properties that we do have under some form of of contracting and agreement itself.

I wouldn't be surprised if that ended up potentially closing a couple of them closed towards the end of the first quarter into the second quarter.

And then we'll we'll look to be a little bit more opportunistic after that but.

These deals are are typically take a I don't know.

Two three months to kind of go through the diligence underwriting and closing and we got a couple of under contract, but they they've still got to go through the process.

Okay and one last quick one from me just on the capacity of the forward agreement is it safe to assume that this will be used up and step with the acquisition pipeline and are there any kind of timing convention and so you should be aware of here.

Well I really think that we'll use it along with just our investments from an acquisition perspective, largely but as well as to fund our development that we've got to do this year.

Technically they do.

And have to be used by June 30 of this year, but.

As we were able to do last year, we were able to work sort of banks and extend them if the opportunities weren't there. So but I think you should think about it and model it as us taking the equity as we acquire assets.

Okay. That's very helpful. Thanks al.

And our next question today comes from auto too.

And with Mizuho. Please go ahead.

Hi, yes.

Good afternoon, everyone.

So at the beginning of the pandemic, you guys kind of and they use.

And more free rent and they had very good leasing velocity this quarter of pulled back on free rent kind of smoothed down and leasing velocity.

As we all kind of think about 'twenty and 'twenty, one how should we thinking about the balance between.

And those two things and basically what's kind of your base case guidance per se.

Maybe what causes the lower end of the higher and they start pulling these two levers.

Yeah.

Robert.

Yeah, I think as as we're looking at.

We've seen and kind of use of free rent and things like that.

No I think we used it very kind of purposefully and 2020.

Think of as we looked at.

Our relationships and our markets and in March of April of last year.

We did we were very forward forthright about talking about how we view this as an opportunity really to work with the healthcare system. So I think our view was there was much more of a long term.

<unk> ship at play that any kind of short term financial impact over 369 months. So we were a little bit more open to both deferrals and free rent to extend leases and then some of our peers were.

I think that was very much kind of point and time around that and so most of that was done and the second quarter of last year. We really returned in the third and fourth quarters of a much more normal kind of leasing convention of typical amounts of free rent.

And the back half of the year that that matched our much of what we had done in 2000 and 2018 and 2019, So I think youre going to see US continue that path in 2021, I don't anticipate big huge uses of free rent with existing tenants design of renewables.

Or anything like that I think there was really much more of a point and time in relation to the pandemic.

Gotcha, Okay and then the second question if you don't mind.

And just the spike in Covid cases kind of nascent and be in December and January and again, it's kind of interesting that a whole bunch of of senior housing skilled nursing that you seen deferrals and things like that from a tenant, but we haven't really seen it on the MLB side, and just kind of talk a little bit about <unk>.

And what happened differently this time around growth.

And if the yen six seven months ago when again.

Of the cases as well as of kind of spiking as well like what why the kind of second round of additional deferrals and things like that.

I think there.

Real focus is that folks stayed open hospitals, we're better prepared.

And they are separated and segregated locations so that they could continue to.

And utilize all of their services of local physicians and physician groups.

<unk>.

Had the appropriate PPE and if they needed.

We have not seen any requests and and I know there are periods of indicated the same thing.

We still feel like steel.

The little solo practitioner or smaller groups continue to struggle because of.

Burdens that day paced, but.

As a whole.

And we of the medical office spaces.

Proved resilient.

Resilient and.

All of the rents are being collected and.

Robert Jan.

And we rolled over 17% of our portfolio and almost 5%, which is kind of benefit.

And the next 357 years.

And the occupancy I think youll see us continue to grow now going into 2021 and 2022.

As we have looked at our inventory we communicated the tenants and we wanted to make sure the right tenants are in there right.

And that they are and.

And they are of tech able to.

<unk> continued to pay rent, we tightened up our credit.

We've been very careful about going through diligence on that so that we don't simply occupy space and then have a collections issue three six months from now or a year from now so we've gone through and exhaustive process and I think it's.

And it's paid off and our performance and two it is going to pay off over the next two three years.

Gotcha and then.

Last one if you don't mind.

And any thoughts around the nominated.

Past and four to meet the needs of kind of.

And the HHS and then also the nominated person can be.

Net.

And then going forward.

Well I think our view of of kind of everything around the political appointments and.

Just the tone and tenor of the bite and administration is theres going to be a big focus on how do you expand care of just like we saw when the affordable Care Act was originally rolled out.

So you know I think our view is that that's just going to be of positive for us I think theres going to be a certainly a focus on delivery of care and the appropriate setting and how do you get people to.

To be seen close to where they are.

And it out of lower cost point to the extent they can all of which we think bodes well for medical office.

And just to add a comment.

I think that healthcare.

Healthcare has been a tremendous asset class and it has been that wafer and I think certainly last 15 or 20 years, but if you look at the pandemic on our longer term.

Perspective, I think it's going to put more activity and to healthcare.

More focused into healthcare and I actually think that healthcare systems and individuals generally are going to focus more on their health and I think that's a very strong indicator.

For us as a company.

Certainly over the next five or 10 years.

Great. Thank you.

And our next question today comes from Rich Anderson from B C. Please go ahead.

So that last comment was interesting Scott because of kind of leads into my question, which is medical office and the hospital business have a have a strange relationship you you want to take business from them and the sense that you know, it's a lower cost environment and of outpatient setting.

You don't want to disrupt and to the point, where you know the hospital.

It's ceases to exist worst case scenario, so I'm I'm I'm curious what you you sound like you think the hospital industry is better post COVID-19 not not worse, even though you know there could be some <unk>.

<unk> of of.

And of the industry, whether it's even incrementally more nursing shortages or maybe some pushback from all of those folks that worked through all of this and don't feel of appreciate it you know there could be a lot of disruption and the hospital industry, but perhaps you don't agree with that and is that is that correct.

Yeah, Rich I think on of short term basis, you may be right I mean, I've read much of your stuff that you've put out recently on other sectors and frankly I agree with most of it and and I think though that and the healthcare space.

And there is so much and then one of the things that we've come to realize is there.

A lot of dollars kind of come out of the government.

And of the healthcare sector.

And would not have come into this sector I don't think except for this.

For the last 12 months I think that's what the healthcare sector and of different framework and.

And I do think that it's going to be positive.

From an overall perspective, so I think it's stronger.

And I think it's going to expand and I think people are going to be more emphasis on this can never happen again.

Yeah, Okay and.

And what what do you think politically you know not to not to get into politics, but.

You are of a body of ministration, now probably going to see more and the way of Obamacare and.

And no dismantling of it.

Do you think that that's a good thing for the industry overall or would you rather have seen more of a private sector model that a Republican administration would of been pushing for.

I think again, I think we ebb and flow as a country on politics and and.

Affordable Care Act was really the Genesis of the MLB space I mean, I remember you and I talking.

Seven eight years ago that that really was I thought what what really brought to the forefront.

And the investor appetite or the awareness of the MLP space and so I think this particular of rotation.

And where we are politically it's going to again put more.

And dollars more focus and wider healthcare.

From a perspective of the individual and I think thats good for healthcare and I don't think the private sector will ever go away. So I think the blend is actually going to work out.

And as it.

Hopefully should work out.

And then last quick question when you think about your your acquisition pipeline and this could be for either of you.

Is it more valuable to get acquisition at the point of the investment or.

Or do you think accretion to your growth profile is the more important outcome like if you had to choose one of the other big a big pop back from an accretion.

And by investing the money or take a hit maybe a dilutive hit but of a.

A little bit more growth to the portfolio and year, two and beyond what's what's more important to you.

I think right now for US we went into this year last year looking at <unk> growth.

And we continue to look at asset flow growth.

I think our our priority when we look at acquisitions is is it accretive.

I've looked at some of the transactions of that folks have made and I wonder if it is going to be accretive and any.

And when it's going to be accretive and give it.

Five.

I just find that that's true.

And that can come to much more cash.

Difficult equation, because rents could come down occupancy tenant affect things, so I think rich.

From the old school, we wanted to make sure that when we invest dollars and it's accretive and and we continue to grow our SFO and and reached the higher and you of our guidance this year.

Okay. Good enough. Thanks.

And our next question today comes from Mike Mueller with Jpmorgan. Please go ahead.

Yeah, Hi, a question on the $10 million to $15 million of elevated Capex I mean should we think of that as being just a 2021 phenomenon or is that something that is going to recur going forward and what's what's prompting you to do that kind of curiosity.

Well I mean.

Robert I'll start real quick just to and then you can finish up but our focus is quality of our portfolio.

And we're taking extreme.

Diligence and and.

View of our assets for long term viability to our tenants and we see energy savings, we see efficiency and operation of buildings as being a differentiator to our tenants and our relationships. So this is something we're going to focus on and Ken That's a general statement and Robert you've been talking about.

Yeah, I think theres kind of two initiatives that we that we've had.

And underway for a bit I think first.

And because we've talked about and.

We've been investing a fair amount and just energy efficiency I think our energy efficiency investments have taken on a couple of forms I think one of our initiatives has been just upgrading.

Certain things like the lights, and HVAC units and things like that the other initiative that we've really had is just from an operational perspective of making sure that we are utilizing the best practices that the building is is running really as it should.

Which we've seen a lot of success.

And really driving down our energy costs over the last couple of years, So I think of part of that.

And I think we just wanted to highlight that that spend and our capital spend and.

It's going to continue to be and our capital spend as we go into 2021, so that might not be of real elevation more and just kind of commentary that we're going to continue to invest and that I think the second thing that we talked about was really investing and some move and ready spaces. You know I think as we've seen position behavior and health system behavior.

Kind of through the pandemic.

Is that people aren't wanting to wait a long time for space to be ready I think the people that are willing to make a move or wanting to make a move for space that they're able to move in and 30 60 days. They don't have to go through kind of a long process. So I think for us it's a bit of a pull forward of that capital just recognizing that to move and ready spaces are moving more quickly.

And in the areas, where we've identified a lot of activity. We're just trying to get ahead of that so I think we would look at it and say $10 million to $15 million is what we're going to spend now, but that's really pulling forward ti from leases that will take place.

Two to three quarters from now.

Got it okay.

And that's it thank you.

And ladies and gentlemen, this concludes our question and answer session I'd like to turn the conference back over to Scott Peters for any final remarks.

Just wanted to thank everyone for joining us and we look forward to talking to everyone.

And of the next quarter and of course of any conferences that are coming up. Thank you.

And thank you Sir This concludes today's conference call and thank you all for attending today's presentation. You may now disconnect and have a wonderful day.