Q1 2021 Broadmark Realty Capital Inc Earnings Call
Greeting and welcome to broad Mark Realty Capital's first quarter 2021 earnings call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. As a reminder of this conference is being recorded I would now like to turn the conference over to your host Mr. Devin Bolt Fry chief legal.
Officer. Please go ahead Sir.
Good afternoon.
Thank you for joining us today for broad Mark Realty Capital's first quarter 2021 earnings conference call.
In addition to the press release issued this afternoon.
We followed the supplemental package, but the additional detail on our results, which is available in the investors section on our website at www Dot broad Mark Dot com.
As a reminder remarks made on today's conference call May include forward looking statements.
Forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today.
We do not undertake any obligation to update our forward looking statements.
In light of new information or future events.
For a more detailed discussion of the factors that may affect the company's results.
Please refer to our earnings release for this quarter and to our most recent SEC filings.
During this call we will also be discussing certain non-GAAP financial measures.
More information about these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are contained in our earnings release and SEC filings.
This afternoon's conference call is hosted by <unk>, Chief Executive Officer, Jeff pilot, and Chief Financial Officer, David Schneider.
Management will make some prepared comments.
After which we will open up the call to your question now.
Now I'll turn the call over to Jeff.
Thank you, Kevin and welcome to our first quarter earnings call.
This afternoon I'll begin with the market overview and the discussion of our first quarter performance and then I'll turn the call over to David to provide additional detail on our financial results and loan portfolio.
We will then open up the call for your questions.
We've completed another quarter with strong originations and we continue to be encouraged by the exceptional strength, we see in the housing and construction markets.
The mentally it is one of the best markets, we've seen in years.
Housing availability remains near multi decade lows home price appreciation in the past year alone has been in the double digits across much of the country.
We are experiencing a goldilocks environment of low interest rates combined with the expectations for stable economic growth.
We continue to navigate through COVID-19.
The fact is we are in the middle of the long term housing shortage that is the result of many years of under supply.
And our current pace of building is not even the not to keep up with existing demand.
Even with the heightened pace of activity. This housing shortage will take many years to resolve.
Particularly in markets that are experiencing strong in migration.
This implies there of meaningful sustained growth opportunities for broad market as we move ahead.
All else equal we are expecting these market conditions to remain highly supportive of our lending activities for the foreseeable future.
Well, we learned across a variety of property types.
Our focus is predominantly on residential construction, which represented the most of our first quarter originations.
In the first quarter, we generated $149 million of originations and amendments this low.
Shy of our fourth quarter volume, which was truly an exceptionally productive quarter.
But this first quarter rate is one that we feel we can maintain and improve on over time.
Importantly, our pace of originations accelerated over the course of the first quarter with the bulk of our activity occurring in March.
The strength carried over into the second quarter.
The environment remains competitive, but we remain confident in our ability to further grow our business and expand market share given our extensive borrower relationships and deep market expertise.
Last quarter, we noted the significant capital inflows into construction lending, resulting from the low interest rate environment of strong fundamentals.
We also saw a high level of institutional investor interest in single family rental housing.
Certain operators have demonstrated that rental homes can be run profitably at scale.
Broad market has had many years of experience with build to rent the projects and we expect they will continue to be a large part of the housing market going forward.
But we are not rental operators and it is important to remember that we only finance the construction phase of these projects.
And so we did not incur the expenses and the operational risk associated with maintaining and leasing those houses over time.
We are not competing with institutional owners and operators rental homes, but their success is helping to drive further demand for the types of projects we finance.
The end buyer of our projects might be of mom and pop investor or it may be of private equity fund that is buying up houses by the hundreds and.
In either case, the influx of Investor capital is helping to ensure that our borrowers have good exit opportunities, which is ultimately good for broad mark.
In general we view this intense investor interest is a validation of our business model and is the source of market liquidity.
However, it is also of competitive force and it will require us to remain disciplined and evaluate our pricing relative to the appropriate risk levels across our markets and project types.
Over the years, we've seen even sophisticated investors try to enter this lending market and fail because they lack the appropriate experience to manage the construction process.
Estimate cost the can change rapidly respond.
The respond to the needs of the borrower base and properly understand the local market and even neighborhood conditions.
While we have seen increased competitive pricing pressures across our markets. We remain confident in our business model, which has served us well for over 10 years of variety of markets and the interest rate environments.
We can also be flexible the certain elements of our loan structure without sacrificing pricing for our maximum 65% LTV.
We see our strong recent origination volumes validation that we can compete in a competitive market on the basis of borrower relationships loan structure terms.
Service rather than on price.
We remind you that we are internally managed and fully aligned with our fellow shareholders interest as.
With that I'll turn it over to David to review the financials.
Thanks, Jeff and good afternoon, everyone.
Operating results are detailed on slide nine of our earnings presentation.
For the first quarter of 2021 you reported total revenue of $29 $5 million and net income of $24 million on a per share basis. This reflects the GAAP net income of approximately 15 cents per diluted common share.
Adjusting for the impact of nonrecurring costs and other noncash items of distributable earnings for the first quarter for $23 $3 million or <unk> 18 per diluted common share.
Interest income on our loans in the first quarter was $22 million and fee income was $7 $5 million.
On the expense side as we've previously stated we are making substantial progress on bringing in house, our legal and other corporate functions.
For the first quarter, we had cash compensation expense of $2 $9 million in G&A expense of $2 $8 million together totaling $5 $7 million.
This is a reduction from our $6 $7 million Monday from 2020 and in the coming quarters. We expect to continue to see of run rate low $6 million per quarter. As a result of these efforts.
With regard to origination volumes, which are presented on page 10 of the earnings presentation and.
In the first quarter, our originations and amendments toward the $149 million in line with our historical pace.
When you reiterate that origination volumes may vary from quarter to quarter based on the timing of loan closings.
Now turning to our balance sheet.
As detailed on slide 15 of our earnings presentation, we had $204 $3 million of cash and no debt outstanding as of March 31.
As previously announced in the first quarter, we closed on a $135 million revolving credit facility.
Although we remain fully undrawn on the facility and do not intend to use it as a source of leverage.
It enables us to reduce the balance of cash that we are required to carry on our balance sheet to match our unfunded commitments.
As a result, we have freed up significant existing capital, which we can now deploy to fund new loans.
In the first quarter, we reduced our cash balance by approximately $20 million and we aim to reduce it by another $80 million or so over the coming quarters for a run rate of 100 to 120 million the.
Cash bonuses.
We also previously announced that in the first quarter, we filed the $200 million aftermarket or ATM program.
It further enhances our toolkit of capital sources.
To be clear, we did not issue any shares in the first quarter and do not presently have a need for capital with ample cash and liquidity on our balance sheet.
In the event that we raise additional capital in the future we are fully aligned with the interest of our shareholders.
With access only when we believe that is in the long term interest for broad Mark shareholders.
Turning to our portfolio management.
As of March 31, we had 29 loans and contractual default representing $200 million in total commitments or 16% of the total portfolio by the value.
While most of these are legacy defaults, resulting from COVID-19 related disruptions. We did have eaten the loans enter default status, representing approximately $43 million and total commitments during the first quarter.
Most of the new defaults will result of cost overruns were construction delays on projects due in parts of rising prices of materials and labor shortages in those markets.
As a reminder, in our industry. It is not uncommon to have loans go into and out of default even during normal times given the reality of the construction delays in the short term nature of our loans.
We continue to expect that the most common result of defaults will be of positive economic outcome for ballpark as the capture our fees over a slightly longer timeline or recover of the value of the property.
The loans on non accrual status continuing to result in an earnings drag of approximately <unk> <unk> per.
For quarter of distributable earnings per share and as we are of collateral based lender on non income producing construction projects.
Our non accrual balance will remain significant until we achieve more of a substantial progress on exiting loans in default status.
During the quarter, we resolved three defaulted loans and realized the loss of $1 4 million on the sale of collateral related to one residential construction loans, which we foreclosed on in 2020.
Importantly.
The majority of loans in contractual default are for projects that are on the construction complete or nearly complete status for collateralized by residential properties, which gives us confidence in our ability to resolve the positive economic outcomes.
To conclude we.
We are very pleased with our capital position and liquidity as we look to address the substantial demand for new construction.
Looking ahead, we remain committed to our for principles.
Maximize earnings on our currently deployed capital through the continued resolution of loans and contractual defaults.
Maximum deployment of existing capital with the credit facility now in place and.
And sure sufficient operating capital available for deployment through our various sources, including through our shelf registration statement and.
And finally identify opportunities for new earnings power and growth.
Now I'd like to turn the call back to Jeff for a few closing comments.
Thanks, David.
We are very pleased with our pace of activity in the first quarter. The exceptionally strong fundamentals of the housing market remained highly supportive of our business and we are excited for the opportunities ahead.
As we continue to grow our platform as a lender of choice. Our focus remains on consistent execution for over 10 years, we've provided reliable service to our borrowers and steady cash flow growth to our investors.
Today, we are better capitalized than ever we see plenty of opportunities in the market and we are well prepared to go out and continue to execute.
This completes our prepared remarks, we will now open up the line for questions opt.
Operator.
Thank you.
At this time, we'll be conducting a question and answer session. If you'd like to ask the question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up of your handset before pressing.
The Star Keys, one moment, please while we poll for questions.
Your first question comes from the line of Stephen Laws with Raymond James. Please proceed with your question.
Hi, good afternoon.
I guess kind of the touch on the.
The follow up on some comments in your prepared remarks, you know builders supply chain issues with getting material surge.
Seeing some impact on the portfolio, but can you talk about how that's impacting your pipeline if at all of it is at the meeting demand for new loans because of those issues they may be having with other projects.
Hi.
It gives me hi, Stephen Hi, nice to hear from you.
The short answer in a word is no.
Our our borrowers remain.
I'm optimistic about the market there ensure they're frustrated by supply chain issues, they're frustrated by the.
The cost of lumber that we all read about but they are bullish about the markets ahead of them.
Housing market just broadly.
And so I I.
It's not affecting our pipeline at all.
Great and speaking of the pipeline of then when you think about you.
The expected repayments, maybe you have.
Visibility of the next few months.
What's the timeline do you expect the reach kind of out of hundred 120 million normalized cash level.
Is that achievable in three months or is it more of a six to nine months target.
Okay.
Hey, Steven David kind of here.
So ex that question.
I think we've made some good progress in the for.
First quarter would you decreased our cash balance by about $20 million.
And continue the kind of focus on deploying as much capital as possible.
We had I think of you recall, we had significant pay offs in the fourth quarter. I think we were at about $169 million, which is kind of a record high for us that that normalized a bit in the first quarter, we had about $114 million of payoffs, which is kind of a normal normal quarter for us. If we continue at that run rate of somewhere around 110 $120 million of quarterly.
We expect to continue to make similar progress if not potentially greater than that $20 million drop that we had in Q1. So.
It's not going to be one quarter to answer your question, it's probably closer to the to the six to nine month timeframe and that will largely be driven by.
How payoffs turn out but if the payoffs are kind of normalized I think we can probably closer to the six months.
But as long as we combine that with good origination activity similar to what we did for Q1 six months is probably a good target.
Thanks, Dave.
The last question for me I think.
Illinois was a new state of I think the popped up on your geographic.
The diversification slides when you talk about the other.
The demand there I mean, 3% it seems sort of leapfrogged the number of states, but can you talk about Illinois, specifically in the just other efforts to diversify geographically into the southeast and mid Atlantic.
Sure.
Illinois, the the loan that came to us in Illinois.
We werent, we Werent speaking out, Illinois the state.
But this opportunity came to us.
Thom Gunderson from our mountain West region looked at it.
As we do with any loan and especially in the new area.
Got down to the really the neighborhood as well as the product type we looked at the borrower.
Their history, the guarantors all of the things that we look at and.
And then of course low.
Looked at the the.
Foreclosure laws and the use of realizing all of those things that we look at whenever we go into a new market.
And and just thought it was a very sound deal.
And so that's really what drove that one in particular.
We are lucky in the new markets, we always we always have we.
Remember, we started out in Washington, Oregon, and Idaho.
And so we.
We continue to take our disciplined approach, we I expect we will continue to expand.
And and again, we look at at the state.
For for.
For growth opportunities for placement opportunities the ability to get repaid.
Said, we we focus on the foreclosure of law mature that we.
We can get out of a loan.
We look at usury laws, when we look at pricing.
And and then we'll tackle states and and more importantly, within those states cities and and the micro regions you mentioned in the South East.
Jordan shower SVP down there and his team are are there.
They're a great group of folks you look at the size of that market and they should be growing and I think we'll continue to.
To grow at an outsized pace for themselves compared to other regions and I expect the same in the mid Atlantic region again, we've got it we've got a great team and we've got a good market up there.
Great I appreciate the comments around that Jeff clubs have a good day.
Thank you.
Your next question comes from the line of Steve Delaney with JMP Securities. Please proceed with your question sure. Thanks, Hi, Jeff Hi, David how are you.
How are you good good.
Just trying to look ahead for the year and kind of tie together your comments.
Jeff I mean, you characterized the $149 million as a strong quarter solicit ground that and call. It 150 day, but you were talking about repayments and that they were a little higher this quarter, but something.
100, 120, so just really oversimplifying, it but you've got a.
Think about an extra $100 million of cash you would describe as excess so.
And in an oversimplified fashion over the balance of this year. If you could if you could originated 150 and the only get 100 net net of 150, you would not only be fully deployed but you could be in a position where you're looking to.
To acquire some additional capital.
Is that that would put you close to six of 600 and originations and just that scenario that I laid out is that is that of viable or realistic scenario for where you're positioned and where you see the market currently.
Alright, Thanks, Steve for your question.
I'd say, you know 140 150 of origination because its a good quarter, it's not a great quarter. I think we can probably increase that I think we were up closer to 200 in Q4. So I think no one country for that week, yeah, well 95 with originations of amendments. We are we are seeing competition, we've talked about that in our prepaid remarks, but we.
Still think we're getting our share so $1 50, I think is possible.
Possible will be content with the 150, but we think we can potentially get higher the payoff of law.
Little bit of a little bit harder to project.
We certainly weren't expecting 170 ish and Q4, so a couple of quarters of those will certainly impact the ability to bring down that cash balance, but yeah. I think you know.
Throughout six months in response to Steven's question.
I still think Thats a good period, but there is we we are a hard business to project from times and you know some of the east whether its payoffs originations the timing does matter and they do get lumpy at some point at some point in time, so it's a little bit harder for Jack but I still think it's probably going to take us about six months to get through there and have a net drop in our.
Our cash of $100 million and get to that run rate that we're looking for.
Okay. That's that's helpful and Jeff as you see the the pipeline Youre a lot of your comments where strength of housing in the residential market is would you describe the pipeline as is heavily weighted.
Towards residential and housing at this time.
I might avoid the word heavily okay, but let's go with weighted toward and and.
And it it ebbs and flows but we have always been known as a residential loans, we both single family and multifamily and I think we continue to be.
We certainly see some opportunities on the on the commercial side.
And and like a little bit of commercial.
Sure, we try to keep our land percentage of low.
And and having said that we also know that there is a dearth of of building lots for single family built single family homebuilding right. They have of some inventory so.
With what's going on in the residential market and the the backlog of housing I.
I think we're pretty content to stay focused on single family.
Got it got it music tires the.
You commented on the defaults and supply chain.
Labor conflicts et cetera, it's labor issues in the past year.
When you look at your defaulted loans, I guess $192 million is there anything in there that represents finished product that's been slow to sell been slow to liquidate it and but 90 plus percent completed or how would you characterize it is that you don't have like.
<unk>.
Challenging or product that's not moving.
At the cost basis is it really more just this getting it built kind of issue.
I would say generally Steve it is it's getting adults.
We have I think 70%, though.
Of the the existing portfolio of default of construction complete or construction near complete.
There really are.
The collateral we typically are able to move through those pretty quickly.
We do have a couple of and I would actually probably not labeled as challenging I mean, we feel pretty good about we have a couple of of hotels.
That are in default that had been there for a little while the.
Wholesale markets of coming back they are eventually going to come back we're not going to ever be forced to rush out of a project or something like hotels, and we feel like the value is going to be much greater six months nine months from now than it is today and as that kind of value picks up well then it looks a lot more attractive for us to exit I think we have the benefit of being unlevered debt.
We don't get forced into moving quickly on projects like hotels and offices, where we think the values of kind of go up over time, and if we need to you know for US We've said it many times for closure, it's kind of a last resort for us, but if we need to foreclose, we've done it in the past and we need to take over of hotel and and have it operate it for a little while to get occupancy rates up.
And then ultimately exited of better economic outcome, we're halfway through debt.
Got it well. Thank you both for your comments they were helpful.
Youre welcome Thank Steve for me.
Okay.
As a reminder, if you'd like to ask the question. Please press star one on your telephone keypad as a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment. Please while we poll for more questions.
Your next question comes from the line of Tim Hayes with B T. <unk>. Please proceed with your question.
Hey, good evening, guys hope you're doing well.
First question here, just a follow up on kind of your comments on the commercial side of things I think 20% of originations were.
In the commercial realm. This quarter can you give us an idea of what kind of assets.
Lending on on the commercial side and it sounds like Youre constructive on hotel, but I don't know if thats. The asset class that you are looking to put capital into at this point.
Sure Yeah, Yeah, I'll take that takes that with that Tim and let Jeff comment as needed as well.
We've done some we've had a lot of good loans related to storage. So we've done some storage I think we did a little bit more storage this quarter.
We're not looking to put a ton of our kind of our investments in.
Hotels, but it's a good hotel comes around them. We're also not going to scoff at it. So we're not scared of commercial I think we are open to commercial it's a case by case basis. If there's a really good piece of collateral and a really good borrower of potentially a new borrower that we haven't worked with before.
We're gonna be open to different types of collateral outside of residential and kind of a strategic type loans.
Sometimes it really worked out well for us.
Okay. So I guess, yes, the storage seems like it might have taken up the bulk of the originations this quarter.
Yeah, I would say storage.
Oh go ahead, Jeff.
Well I, just I I I'm reluctant to get into too much loan level detail.
So so far so David go ahead and get into more of if you'd like.
But Tim yes, so storage has been something we you know we've looked at hotels, we've looked at.
Wow.
We got a we've had opportunities we have of repeat borrower another guy in the commercial space and I really would rather not get into it.
But it's a nice asset we built one out for him.
Our finance one for him that.
That worked well and he wanted to do another one and so we said, yes, the borrower in Utah So.
It's like everything we do at sort of a case by case basis, and and then I'm really trying to keep our focus on the residential.
Mhm.
Alright, no debt.
That's a good color there appreciate it Jeff and then.
On the private REIT AUM I think it ticked up only slightly this quarter after seeing some healthier growth maybe in the first quarter. You know markets are getting healthier and I think the outlook for for <unk>.
Real estate in general.
The improved over the past three months to six months. So I would think that interest in the private fund would also be.
Im getting stronger as well as people get more confidence in the outlook. So I'm just curious how demand has been there why you think.
The growth maybe pulled back a little bit on the private side of things and any expectations for pace going forward.
Sure. Thanks, Thanks, Tim.
So I think we raised about 26 million in the first quarter of 2021, and we had about $88 for millions of AUM as of March 31.
We have a way of a big a big pipeline.
The big pipeline of interest in the lending platform.
We view of the private readers as a source of capital and I think that's an important note. We've made great strides I think since we initially launched didn't meet and being able to grow it to the 88, we think theres some room to grow it significantly more than that but I would say right now we're in a situation, where we've got a great cash position.
Making a very conscious effort to reduce our cash on balance sheet at pepco.
And we're not going to go we're not going to raise capital simply the raise capital and with the current focus on continuing to deploy as much capital as we kind of in the upcoming quarters. The again bring that cash.
The balance run rates of somewhere around 102 hundred $20 million.
It's where we're limiting the amount of capital that would be taken through the private REIT until we can bring that cash balance down and the.
Then really ramped it up going forward when we need the capital again.
Okay got it so it was not really a demand issue, it's more of just about capital allocation.
I guess first the guys have corrected.
Okay.
And then my last one here just share until you guys deployed at $80 million of stone of cash should we expect the credit facility to remain at zero or do you expect you might put on a little bit of leverage as you put some of that equity to work.
No I think expectation should be in the near term, it's going to remain undrawn.
To view it as the other cash management tool.
The kind of a backstop for us for what we've kind of shifted our thinking when you think about our total liquidity. So we think about that plus our cash balance on hand as long as we've got somewhere around three months of working capital.
And that combined liquidity thing then we feel pretty good. So so no plans to draw on that in the near term.
Got it that's helpful. Thanks, again, guys for taking my questions.
You're welcome Thanks Simpson.
Your next question comes from line of Matthew Howlett with B Riley. Please proceed with your question.
Hey, guys. Thanks for taking my question I might have missed this earlier, but can you just go over again with the increased competition coming in how you're maintaining your share of how you're defending pricing as it is it the relationships the speed the structures.
The certainty of capital execute you just go over again and.
How are you defending the market share.
Can I go with all of the above.
Yeah.
Hum.
There is competition and there always has been and it comes and goes and.
And a lot of a lot of those newcomers don't have much to compete on accept price and so they compete on price.
We.
We have had to be more flexible or created by the is probably not the right word the flexible on pricing.
But we rely heavily and we continue to rely heavily on our certainty of execution.
On on working with borrowers who know what theyre going to get many of many of our borrowers experienced problems with other lenders are sort of others experienced problems with other lenders a year ago.
And.
But there is competition there there will be.
Okay.
The one thing I'd ask you to remember is our size compared to the size of the overall housing market.
And so for us to do a good job.
The good care of our borrowers well, we lose some once in awhile share when we get new ones sure. So all we we try to do the best we can on pricing to keep the pricing as high as we can the stake.
And still stay competitive and we seem to be getting our share.
Got it and when you say it comes and goes I mean this is just of what you've just seen through the cycles and it's just something that at some point it will be shaken out overtime.
Sure Yeah. So.
Okay.
Those of you who've been on pulse of you before it or did you say that it's easy to loan money out and it's hard to get paid back.
And and I will.
Argue that there with with housing being as.
As fashionable in the news as it is that there are a lot of people interested in the housing market.
There are a lot of.
<unk>, who hold themselves out there as lenders and then they'll turn around and sell their notes too.
The third party.
And and when that third party you may start to have some have some troubles with some of the loans that are on their books, if I'm, writing alone and then selling it off I don't have as much risk as as broad Mark does who writes loans and keeps them in our portfolio and so we underwrite very carefully.
And.
And then when we of defaults, which we do we manage through them and so I think as things get tougher.
Some of those those third parties will back out.
That's what's happened in the past and then the Daryl and there'll be other newcomers they come in and all we really can do is focus on being.
It sounds a little trite, but just focus on being really good of what we do and it's worked for us.
Gotcha.
The complete sense.
And then on that and that's sort of topic. When you look at I know you've got a lot of lots of work to do with the cash management and put that to work, but you look at longer term what you said.
18 months out.
And you look at where the size of the portfolio could go or where you think it could go.
I know you want to get I know you have the the private REIT I know you'd have to get those warrants extra.
Exercise if you could I know you've got the eight the ATM out of it could be really efficient, but when you think about how big the portfolio of go and now that you're of the English or it could be a year as the public company. How do we think about funding future growth would you think about tapping the public debt markets preferred markets longer term something.
Or could you get up to 2 billion in size would you want to be that size. Just the look forward. When you think of long term trajectory with that portfolio growth and how you're going to get there.
Sure, Yeah, and I think the.
The initial interest is we want to grow as big as possible and I think that's the long term view I don't know if they'll be of a specific number in mind right now but.
We definitely want everyone to be thinking about this as the long term growth investing enough in terms of how we think about growing the size of the portfolio I think where we're always going to look for the most efficient sources of capital right. I think we're in a really good position, where we've got multiple tools in our toolbox now whether its the private REIT, we've got the ATM out there.
We think there is other potential sources of capital that we could use we're going to do whatever is in the best interest of our shareholders and wherever it's most of the accretive when it gets time for us to start thinking about raising additional capital. So I won't say no to anything I think.
When it gets to that time hopefully later in this year.
We will be in a position, where we have access to all the different sources of capital and as those sources change over time and become cheaper and more expensive or harder to access will be in a great position, where we can pivot and adapt.
For whatever is the best force at that time.
Actually the am I right to presume that your habit bankers are calling the reaching talking with access the preferred markets term loan markets unsecured markets. So it all the above that you could look at long something that long term may consider.
Yes, absolutely lots of calls and we're always going to take those calls and explore different opportunities I mean, that's the real benefit of all of US now being a public company access to all of these different capital sources.
And we're going to we're going to explore all of them and see what makes the most sense for our capital structure long term.
Alright, Thanks, a lot.
Thanks Anthony.
Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back to management for closing remarks.
And thank you all for joining us today for being part of our call for your continued confidence.
In broad Mark in our platform of AWN.
On behalf of everyone in our company I'm Grateful and appreciate it.
Stay safe stay healthy and we will talk to you in a quarter if not sooner.
Back to you operator.
Thank you. This does conclude today's conference you may disconnect. Your lines at this time. Thank you all for your participation.
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