Q4 2020 Franklin Street Properties Corp Earnings Call
Good day and welcome to the Franklin Street Properties Corp, Q4, 'twenty and 'twenty and year end earnings call.
Participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing star key followed by CEO. After today's presentation there'll be an opportunity to ask questions to ask a question. You May Press Star then one on a touchtone phone to withdraw your question. Please press Star then two.
Please note. This event is being recorded I would now like to turn the conference over to Scott Carter General Counsel. Please go ahead.
Good morning, and welcome to the Franklin Street properties fourth quarter and full year 2020 earnings call. Joining me. This morning are George Carter, Our Chief Executive Officer, Johns and Merit, our Chief Financial Officer, Jeff Carter, Our President and Chief Investment Officer.
And John Donahue President of FSP property management also joining me. This morning are Toby Daley and will friend, both executive Vice President of FSP property management.
Please note that various remarks that we may make about future expectations plans and prospects for the company may constitute forward looking statements for purposes of the Safe Harbor provisions under the private Securities Litigation Reform Act of 1995 actual results may differ materially from those indicated.
These forward looking statements as a result of various important factors, including those discussed and the risk factors section of our annual report on form 10-K for the year ended December 31 2020.
Which is on file with the US each day. In addition, these forward looking statements represent the company's expectations only as of today February 17th 2021.
While the company may elect to update these forward looking statements and specifically disclaims any obligation to do so any forward looking statements should not be relied upon as representing the company's estimates or views as of any date subsequent to today and at times. During this call we may refer to funds from operations.
Wrap up all reconciliations of GAAP F O and other non-GAAP financial measures to GAAP net income are contained in Yesterdays press release, which is available and the Investor Relations section of our website at Www Dot F. S. P. R E T Dot com now.
I'll turn the call over to John Demeritt, John Thank you Scott and good morning, everyone.
And I'm going to give an overview of our fourth quarter and year on year end results.
Afterward, I'll pass the call to George for his comments.
As a reminder, our comments today will refer to our earnings release and supplemental package and the 10-K, which.
And as Scott just mentioned and can be found on our website and is on file with the SEC.
We reported funds from operations or <unk>, $17 5 million or <unk> 16 per share for the fourth quarter of 2020.
And $79 4 million or <unk> 74.
For the year ended December 31 2020.
During the fourth quarter, we worked with tenants that were impacted by the pandemic and.
And had a significant write off of one large tenant and filed for bankruptcy and late December that resulted in a $3 1 million of charge against our revenue.
As part of making decisions on write offs.
Determined whether a leases collectible or not.
If we determine it's not collectible and we write off the receivables and don't report any current rents unless they are paid in cash.
So part of the loss, we wrote off is from receivables, which is more of a onetime charge and <unk>.
The loss our current rents that we didn't collect.
These write offs reduced revenue on the income statement.
During Q4, we had write offs and loss rent of about $3 1 million, which was primarily from a.
Tenant bankruptcy.
And I noted and on a year to date basis. The total write offs for about $3 8 million or about one 5% of our annual rental income.
Going forward the amount of lost rents from tenants, we wrote off would be reduced by any cash rents we received from them.
We also reached agreements with a number of tenants on rent deferrals using lease amendments modifications and other channel agreements.
So total rents deferred by us during Q4 were about $300000 and for the year totaled about $1 $75 million.
These agreements generally result in us being repaid are made whole, although and with the whole as part of the $1 75 million and we did occur about $200000.
Of GAAP and <unk> impact from them this year.
We're working with other tenants that are having issues and we will provide updates periodically like we have here.
Turning to our balance sheet at December 31, 'twenty, we had $923 5 million of unsecured debt.
<unk>, three and a $5 million drawn on our line of credit.
In December we sold a property and North Carolina for $89 7 million and applied $87 $3 million of the proceeds against debt.
And we'll be providing more color on that transaction later.
With the proceeds from the sale, we applied for $50 million against our $150 million term loan that matures in November and the remainder one against the drawn balance of our line of credit.
At year end between cash on hand, and availability on our line, we had total liquidity of about $601 million.
We disclosed some ratios and our supplemental filing that were impacted by the $3 1 million dollar write off.
We incurred in late December our net debt to EBITDA ratio was impacted because of the charge reduces EBITDA.
And we then annualize that for for the fourth quarter for this measure.
Excluding this charge our net debt to EBITDA ratio would've been seven eight compared to $8 five at September 30th.
And that decrease would be primarily a result of the debt reduction.
Our interest and debt service coverage ratios were also impacted and would've been three to six times.
And we disclose our calculations of ratios and our supplemental filing and the calculations and I'm, referring to are in the footnotes on pages four and 10 in case, you're interested and looking at them.
As a reminder, all of our debt is unsecured and we have no debt maturities until November when $155 million of term loans will be due.
Our debt is at fixed rates other than the three and a half million online which is at a floating rate.
With that I'll turn the call over to George George.
Okay.
Thank you John.
I would like to start my portion of this earnings call by recognizing them.
And many different people that contributed to helping Franklin Street successfully navigate the challenges of our business in 2020 that was so impacted by the COVID-19 pandemic.
It has been one of the most challenging and collaborative efforts I have ever seen and business.
All of these efforts are ongoing as we begin 2021.
And at the end of the day are ultimately directed towards Fsp's customers are valued tenants each one of them grappling with their own challenges responses and business realities, resulting from the pandemic again.
Thank you all.
For 2021, we are focused on two primary objectives leasing progress and debt reduction.
From a leasing perspective, we anticipate the potential for growing office space demand and our markets as a result of improved economic situation due to increasing access to both therapeutics and of course now the vaccines.
We believe that users of office space are now reconsidering the office Densification trends of the past approximately 20 years.
We also believe that even with the continuation of some planned for level work for.
And home flexibility.
The potential reversal or slowing of office densification could bode well for future office space absorption.
Our 2021 leasing focus includes both increased economic occupancy and longer term renewals of existing tenants.
John Donahue will give more color to these leasing thoughts and just a minute.
As for debt reduction efforts in 2021.
FSP intends to pursue several property dispositions from its portfolio.
Valuation objectives have been met and where we believe embedded value may not be accurately reflected and the price of our common stock and then apply those proceeds from dispositions primarily for the repayment of debt.
We believe that further debt reduction will provide greater financial flexibility and position the company for stronger shareholder returns.
Accordingly, we have introduced full year 2021 disposition guidance and the range of approximately 350 million to $450 million in aggregate gross proceeds Jeff.
Jeff Carter will talk about this more later in the call.
But now let me turn the call over to John Donahue, President of FSP property management.
John.
Okay.
Thank you George good morning, everyone.
At the end of the fourth quarter, the FSP portfolio, including redevelopment properties was approximately 83, 8% leased which is a decrease from 84, 3% leased at the end of the third quarter.
The decrease was primarily attributable to the disposition of Emperor Boulevard in December.
The average leased occupancy of the portfolio for calendar 'twenty and 'twenty was approximately 83, 6%.
FSP leased approximately $1 million 130000 square feet during calendar 2020, which included 368000 square feet of new leases and approximately 150000 square feet of expansions with existing tenants.
During the fourth quarter, we finalized over 500000 square feet of renewables and expansions with existing tenants.
Although demand for office space had slowed down during the holidays and the fourth quarter. The prospective tenant activity at FSP assets in January and February has been gaining momentum.
Specifically for the Sunbelt assets.
FSP is currently tracking approximately 700000 square feet of potential new leases and renewals.
There were approximately 300000 square feet of new tenant prospects that have shortlisted FSP properties.
In addition, we are engaged with existing tenants for approximately 400000 square feet of renewals.
Barring any surprises the potential for total net absorption over the next three to six months is approximately 200000 square feet.
This includes new prospects and potential expansions.
Thank you with that I will now turn it over to Jeff Carter.
Thank you John.
Thank you everyone.
And we hear and Franklin Street properties, and hope that everyone is safe and healthy during these uncertain times.
I wanted to start my comments today by sharing for key priorities for FSP during 2021.
The first will be ongoing efforts to work as partners with our tenants to navigate the COVID-19 pandemic together.
S P recognizes and appreciates that our tenants health and safety are essential.
The second is to continue working to lease vacancies and non renewing or expanding existing tenants and order to grow occupancy and value within our portfolio.
The third will be to build upon our December 23rd sale event for Boulevard with additional but select dispositions estimated to be and the range of $350 million to $450 million for full year 2021, and then to utilize such proceeds primarily for the repayment of debt in order to gain greater.
<unk> flexibility and to position FSP for stronger shareholder returns.
I will describe our thoughts on this subject further and my comments ahead and.
And fourth will be a continued commitment to our strategy of owning high quality office properties within the U S Sunbelt and mountain West, where we continue to see strong long term job and population growth potential.
More specifically on the dispositions front and following the sale of bumper Boulevard and December FSP will look to pursue additional dispositions of select properties, particularly where we believe that embedded value exists that may not be appropriately reflected within our current share price and then to utilize such proceeds.
It's primarily for the repayment of debt under our revolving line of credit and term loan facilities as well as for any special distributions necessary to meet REIT requirements.
Determining factor for FSP on potential dispositions, and 2021 will be and assessment of whether a respective property has achieved its near term valuation objective.
We believe that further debt reduction will provide greater financial flexibility and positioned FSP for stronger shareholder returns.
With this in mind, we are currently refining our target list of properties within our portfolio that we believe may have met their respective near term valuation goals.
And we anticipate that these potential disposition assets are likely to include properties from our smaller opportunistic markets as well as some from our larger markets and we wish to point out that regardless of where any specific properties or sold during 2021 debt FSP remains committed to our sunbelt and mountain west.
Market emphasis where we believe that long term business and population growth has the potential to exceed the national average.
At this time the highest likelihood is that the majority of potential sales would occur and the second half of 2021.
Proceeds from potential dispositions under review are currently estimated to be and the range of 350 to 450 billion for full year 2021, which again would be intended primarily to be used for the repayment of debt.
We will update the market regularly on our efforts with this objective, which will be influenced by the COVID-19, pandemic and resulting investor appetite.
And with that we thank you for listening to our earnings conference call today and at this time, we'd like to open up the call for any questions operator.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys.
If at any time. Your question has been addressed and you would like to withdraw. Your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
The first question comes from Dave Rodgers with Baird. Please go ahead.
Hey, good morning, everybody, Jeff I'd love to start with you and talk a little bit more about the asset sales obviously from some big news today can.
Can you can you give us more of a sense of kind of what you want to sell whats in the market today, how much that youre already marketing of the $350 million to $450 million.
And what the cap rates do you think it will be.
And even a wide range that you anticipate by the end of the year, culminating these transactions debt.
Thanks, David for the question and thank you.
Unable to day to identify specific assets or markets for both competitive reasons and since we're still refining that target list as we've discussed.
On our call just a moment ago, but I can provide some additional color.
We anticipate again and potential 2021 dispossessed disposition assets will include properties from both our smaller opportunistic markets as well as from some of our larger markets and we'll judge potential sales based on and assessment of <unk> and this is the bigger if they have met their near term valuation goals.
We are committed to our sunbelt markets and mountain West markets long term and.
And youll see that emphasis to continue over the long term I do think from a disposition standpoint as you look at the types of assets that we're looking at disposing of.
Going to see debt, primarily their board and they are likely to be more generally more stabilized assets, but they will likely some of them may have some value add component that's associated with them and so I think youre going to see cap rates that are very competitive and each respective market, but until we refined and totally determined that.
And I'm not going to be able to give you an exact estimate on cap rates.
So I guess given that comment and given that you did a number.
Renewals expansions and extensions and the quarter.
And when I think of Virginia or St. Louis I mean, and this is the type of asset that youre thinking of getting rid of or when you say mountain west and does that mean, Denver and Minneapolis is out.
Great question and thank you.
For the question.
I think your comment about properties when you look at our asset portfolio and you look at properties and the case that you mentioned river crossing or I'm, sorry, Timberlake and meadow.
Meadow point.
Booz Allen and Centene and Timberlake that is exactly the type of asset where we have worked hard to maximize and get to full value for our shareholders. So I think those are.
And the types of candidates that you would see and our mix this year.
And as you look at market and it's an important question as you look at a market like.
Minneapolis to your question.
For.
For us looking long term of our portfolio is going to be dominated by the sunbelt and mountain west and.
Yes.
And and emphasize quality assets and so Minneapolis as you look at the long term will probably not be a part of that mix.
But getting to that point, we had 750000 square feet of high quality assets and the CBD, there and we're going to continue to evaluate what the right moment is to.
And realize our valuation objectives for our shareholders.
Okay. Thank you for that and on.
Maybe move to John Day Merit on on the dividend and the special dividend and maybe George you can weigh in here too if you're selling that many assets you hold these assets for quite a while do you anticipate a special dividend. This year and then how have you thought about the recurring dividend going forward.
And.
Hi, David George.
So.
Yes.
These answers and dividend question, the same way and I'm going to do it again, but I will give you more color.
At this time and the answer for shareholders to always know.
And the FSP and our dividend is that our dividend is decided each quarter by our board of directors and can go up down and stay the same.
And that.
As an unqualified statement however.
To give you more and more.
Color.
Last year, our 2020.
Dividends totaled 36 for the.
Per share for the year about $38 $6 million and.
And after the sale of hemp for Boulevard, which was.
89 million.
Approximately.
Yeah.
We did record.
Gain on that and in terms of return of capital on that dividend was only about a <unk> <unk> per share return on capital on that is one that <unk> 36 per share.
Yearly dividend, so we really paid out.
Dividends debt came real close to our taxable income for dividend purposes, and I think I think what's important to recognize.
Net.
Sure.
And the FSP is committed to maintaining.
REIT status and paying out the appropriate and dividend relative to the.
Dividend taxable income calculation that you'd have to do.
If we if we.
With our 36 or <unk> per quarter dividend.
And we will close.
And the $89 million Emperor Boulevard sale.
Yeah.
And we are able to.
Generate sales of $350 million to $450 million.
In 2021.
You would certainly anticipate.
Is that you would have to look closely and what.
The dividend payout would have to be to be weak.
<unk> and we will meet.
Meet the requirements for dividend payout in 2021.
Okay Fair enough last one and Georgia is probably for you.
And the plan at least between the fourth quarter of 'twenty and 'twenty and 'twenty. One is to sell just over 25% of your assets.
And that book value Underappreciated, how do you think about kind of sizing the company appropriately from a G&A perspective, or do you feel like yours and lean as you can be.
I'll, let John and Mary talk about G&A, but but I would I would say this.
Ahead of that.
And that.
All office Reits.
I now feel the way, we do that debt their assets and their.
This market.
Uh huh.
Have been discounted heavily to what they consider is there regardless of what book value says.
On balance sheets and so on.
And and.
We believe that debt is especially especially true for many of our assets and and.
And a lot of the Capex and so on and effort, we put in and the last few years.
Yielded assets that are so steeply discounted to their true market value today.
And the market, even though dispositions nationally are down because of COVID-19.
As a percentage of.
The portfolio.
We're going to sell.
And that percentage may not be exactly the percentage that is represented by our book and.
<unk>.
That would be my first point, Dave and then and the second for the second point is that.
As we.
As we reduce.
Debt with these proceeds.
We are.
Gaining a lot of flexibility for our business.
And plan to use that flexibility to create.
More long term value for our shareholders and <unk>.
G&A that surrounds that creation.
And is going to be the question and.
And from my from my from.
From my point of view I think so I think our G&A is is one of the lowest and meat and the industry now and I think I think we're pretty competitive there and I think we're pretty competitive on our G&A going forward too.
Use this new found and flexibility with some debt repayment.
To create greater value for the shareholders and now John do you want to.
Weighing on any of that so I think you got it spot on on that okay.
Does that help Dave.
It does and George and team. Thanks for the time this morning.
Thank you.
The next question comes from Frank Lee with BMO. Please go ahead.
Hi, good morning, everyone.
A couple of quarters ago, you were going to look to pull forward several and Ti projects and that we should expect some elevated cash.
Capex can.
Can you provide and update on how far along are you with these projects and expectations for Capex spending and 21.
Good morning, Frank It's John Donahue.
We continue to see some large tenants delay their occupancy.
<unk> of which is low.
And in Miami at Blue Lagoon.
That lease actually commenced and the first quarter.
As of February one.
But they don't intend to move to their new headquarters until later in the year and so that is a substantial ti package that has been delayed yet again and so we may not see that until the very end of the year, possibly even slip into next year. So there's quite a bit of.
Unpredictable.
Volatility if you will when the Ti are going to come in.
Other than that we have a handful of renewals and we're very pleased that some of our larger tenants and expanded recently and.
We are seeing.
And the potential timing of that to be the back half of this year. So my best guess of course, we don't really know when the tenants will submit their request for reimbursement and the team.
Packages, but my best guess at this time this debt we'll see.
<unk> is heavily weighted to the back end of the year and possibly even slip into next year I hope that helps a little bit.
Yeah. That's helpful. And then just a follow up on some of the asset sale commentary you provided.
Just curious what are your current thoughts on the investment market appetite for core versus value add assets.
And what gives you confidence today that this is the best time and put some assets for sale and to the market.
Thanks, Frank This is Jeff Carter.
<unk>.
The way we've seen the way we've been analyzing and assessing the market was.
Amongst ourselves and with the professionals that we work with.
And here until here till date during the pandemic the most.
Welcome and attracted attractive property for investors has been.
Stabilized, whether they are single tenant or whether there.
A couple of tenants that have term and.
And certainty associated with them, our disposition and December.
Had a tenant and the life sciences that had kind of a.
Intermediate term remaining but it was an and.
And interesting and compelling market and compelling tenant and a compelling location and so right now there seems to be a little and it's a little bit unpredictable still but the market favors still stabilized assets and high quality locations that have visibility and the future we're seeing less.
And less action right now and the downtown markets that we are and in suburban and suburban infill markets and so.
And the second part of your question was what gives us confidence right now.
I think a couple of factors that I would point out and the first is actually the COVID-19 pandemic itself.
And the unique sensitivities that its broad relative to pricing buyer demand and appropriate timing as you mentioned.
We've had we had the ability to do some of the prospective sales that were contemplating now last year and we because of the uncertainty of Covid and the.
Especially prior to the.
Vaccines, new vaccine roles at Rollouts, we really deemed taking our patients being key and important.
And as George and I. Both discussed was the December 23rd sale and for Boulevard debt really affirmed to us that even in this pandemic debt, we do have properties within our portfolio.
That possess embedded value that may not be appropriately reflected and our current share price and then.
Essentially achieved a near term valuation objectives and.
And then other direct real estate investors may well recognized.
Third factor I think relates to the increased levels of leasing that we've added to the FSP portfolio in recent times that have yielded some new situations for us for some goals and some of our properties have been achieved.
And valuation objectives are now plausible for potentially unlock.
Two examples are 17, and Timberlake that we mentioned that extension.
And expansion as well as Booz Allen extension and metal point and Northern Virginia.
Both of which I should say are not necessarily intended dispositions, but but are likely potential candidates.
And a fourth factor again is just that FSP as George mentioned really is.
Interested and desires to gain financial flexibility, primarily through debt reduction to position the company for stronger potential shareholder returns and hopefully.
And that helps.
Yeah. That's helpful. And then last one for me you mentioned and applying proceeds from dispositions to pay down some debt is there a leverage.
Ratio that you're targeting.
Well. This is John Demeritt don't have necessarily have a leverage ratio that we're targeting.
The net debt to EBITDA ratio has been running a little high.
And so we're looking to get that ratio down and got a little tighter and our covenants.
And with some of the rent write offs and we've had so we're just looking to get that down a little bit.
Okay, great. Thank you.
Welcome.
And as a reminder, if you have a question. Please press star then one to be joined into the queue.
The next question comes from Rob Stevenson with Janney. Please go ahead.
Hey, good morning, guys.
George can you help us understand why now versus a year ago or 18 months ago or sometime in the past some color as to what drove the decisions at the board level to do the.
Asset sales now.
Hi, Rob.
Sure.
Jeff and Jeff talked to a lot of it and and I'll have him jump in here, but.
But at the board level.
We certainly.
During 2020.
Oh.
We're very concerned about market activity relative to the pandemic, so let's sort of.
And that sort of took most of too.
'twenty out even though we have considered looking at some properties for disposition for one one property that we thought we test the market with.
At the at the very.
And of the 2020 year.
What was the property and Raleigh Raleigh Durham.
And.
And in the process of doing that.
That particular sale, which did achieve our our valuation objectives.
We did a lot of research with various professor.
Professionals that would help us look at some of the properties that we had considered over the last year year and a half but.
But held off because of the pandemic.
And.
Okay.
We have come to conclude.
Conclusion that between the outside professionals, who have analyzed some of this some of these properties. We believe have achieved and our objective markets that they're in.
And then the action.
And pricing of our stock and the market over the last year Rob.
Obviously as well for <unk>.
Obviously down over the last year, we closed and I think.
92019, and about $8 50, a share and.
Closed this year and for so so when you when you look at.
The value of stock for Blue.
Sure.
Really felt like we were just so far below the.
And the valuation of <unk>.
And number of our properties and that we could after.
Working with professionals and looking at the markets and seen what.
Other real estate investors are interested in buying.
Private real estate investors.
We felt that we could achieve this debt reduction, which we wanted to do.
To gain from our flexibility.
For our business and again to continue to focus more long term on the Sunbelt and mountain west regions.
And just.
This is Jeff just to build on that I think that I think debt.
When you look at the last several years last year and particular with Covid.
And until the vaccine breakthroughs came through.
There was a few assets that we could have considered at the end of the year, we did dispose of them for Boulevard.
As George and I, both mentioned, but I think that the vaccine and big breakthroughs of Covid give some better visibility to prospective buyers and the marketplace that there is.
<unk> and the market versus a year last year, where there wasn't and second I think that one of the things that makes a difference for us is that the increased levels of leasing that we have seen at FSP and recent times have added.
Opportunities and we've always indicated that we would sell assets when we think that they met their valuation objectives, we have had.
And some successes EBIT last year during such a hard here of doing just that that have created opportunities that put.
The ability to realize value and front of us that again as George said may not be reflected in your current share price and so when you look at those factors combined with our desire to.
Gained greater financial flexibility through debt reduction.
We think there is a number of assets that may have reached that tipping point, where we can recognize their valuation objective.
I hope that's okay.
Yeah, and then I mean, given those debt reduction given the debt reduction focus I mean is it safe to assume that whatever special dividend that you guys need to pay.
To be compliant that you guys will just pay and stock is all the cash is just going to be earmarked for.
Debt repayment and youre not going to hoard cash on the balance sheet to pay out a special dividend and cash.
That is not a good assumption. This is George Rob that is not a good assumption.
Payment of the dividend will be decided by the board voted and amount and and.
And Tiger.
Okay, and then last one for me I mean, I guess, along those same lines.
No.
Stock price is down about 3% today I mean, obviously you don't have.
Asset sales that are ready to close the offset against it but.
Would you use if the stock remains weak would you use some of the proceeds.
To repurchase shares as well or is that basically off the table until the leverage comes down.
And we would absolutely consider repurchasing stock.
And the timing of that would be in concert with the appropriate amount and.
And our minds.
Debt reduction.
Timing of net debt reduction and the amount of the debt reduction and of course, the price of our stock and anymore.
And at a time.
Okay. Thanks, guys I appreciate it.
Yeah.
The next question is a follow up from Dave Rodgers with Baird. Please go ahead.
Yes, John to Merit and your comments you mentioned tenant watch list can you give a little more color on that so how many tenants might be on there how much have been converted from GAAP to non cash rents and anything along those lines would be helpful.
Most of that most of the write offs for smaller tenants.
Yes.
Yeah.
And there were there are numerous numerous numerous ones, but to hit and aggregate a very big write off.
The most significant was the $3 1 million from World Ventures that we talked about that was like one and a quarter percentage of our rents and the rest of them and maybe the total was about one 5% of our rents so.
And it really wasn't that significant.
We have.
Tenants that we're working with right now nothing of the magnitude that world ventures was.
I think co working space is one of the things we look at and then a few others and some other properties.
Properties, but but nothing as significant as world ventures.
Okay. Thanks for that John Donahue.
You mentioned, these and I apologize Randstad, Cisco and vintages.
I think explorations in the coming year, you've got quite a few and it sounds like renewals and expansions and the pipeline, but can you comment on those three specifically.
Dave I believe you just listed Randstad that renewal has already been exercised.
Citgo.
As a tenant that we've been engaged with for quite a while.
And we're bound by confidentiality.
With that.
Discussions so I cant provide any details but they are engaged.
And we have.
A handful of mid sized tenants that are engaged with early renewals.
Debt.
I don't want it right right now did you name another specific tenants that I missed.
Oh that.
And vintage it was that one of them I can't remember if that was sub leased out or not.
Yes, so that that tenant is in Denver, and they have sublease most of their space that tenant was formally known as new fields and the large majority of their space and it's been sub leased we're working with a few of the sub tenants now.
And what their space needs might be but.
But as you can imagine.
CBD downtown.
The properties are pretty sparse population right now and so future needs are being worked through.
Alright, thank you.
Hello.
This concludes our Q&A session I would like to turn the conference back over to George Carter for any closing remarks.
And thank everybody for taking the time to be on our earnings call. We look forward to.
The next one and.
2021 Opex.
I hope, it's a lot better year than 2020 from the pandemic point of view for sure. Thank.
You everyone.
This conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[music].
And.
And.
[music].