Q2 2021 Alexander & Baldwin Inc (Hawaii) Earnings Call
[music].
Good afternoon, and welcome to the second quarter 2021, Alexander <unk> Baldwin earnings Conference call.
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Okay.
At this time I'd like to turn the conference call over to Steve Swett Investor Relations. Sir. Please go ahead.
Thank you Hello, Hi, and welcome to our call to discuss Alexander <unk> Baldwin's second quarter of 2021 on earnings.
With me today for our presentation, our Amd's, President and Chief Executive Officer, Chris Benjamin and Brett Brown, Chief Financial Officer.
We're also joined by Lance Parker <unk>, Chief Real estate Officer, Clayton Chun, Chief Accounting Officer, who are available for the Q&A portion of the call.
Before we commence please note that statements in this call on presentation that are not historical facts are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
All of the number of risks.
<unk> and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward looking statements.
These forward looking statements include but are not limited to statements regarding possible or assumed future results of operations business strategies growth opportunities and competitive positions as well as the rapidly changing challenges with the.
On the Companys plans and responses to the COVID-19, pandemic and related economic disruption.
Such forward looking statements speak only as of the date. The statements were made and are not guarantees of future performance forward looking statements are subject to a number of risks uncertainties assumptions and other factors that could cause actual results and the timing of certain events to differ materially from those expressed in or implied by.
The forward looking statements.
These factors include but are not limited to prevailing market conditions and other factors related to the company's REIT status of the Companys business risks associated with the COVID-19 pandemic and its impacts on the company's business results of operations liquidity and financial condition. The evaluation of alternatives by the company related to its materials <unk> construction.
And by the company's joint venture related to the development of cuckoo Youre generally discussed in the company's most recent form 10-K form 10-Q, and other filings with the SEC the of.
Formation of this call and presentation should be evaluated in light of these important risk factors, we do not undertake any obligation to update the company's forward looking statements.
Manage.
Management will be referring to non-GAAP financial measures during our call today.
<unk> in the appendix of today's presentation slides are for.
The statement regarding our use of these non-GAAP measures the reconciliations slides for the presentation of our available for download on our website Www Dot Alexander Baldwin Dot Com Chris.
Chris will open up today's presentation with the strategic.
<unk> and operational update he will then turn the presentation over to Brett who will discuss financial matters, Chris will return for some closing remarks, and then we will open up the call for your questions with that let me turn it over to Chris.
Thanks, Steve and good afternoon to our listeners our second quarter results were strong building on the momentum we experienced last quarter our.
Commercial real estate portfolio continues to perform very well as Hawaii's economy improves fueled by a remarkable resurgence of tourism.
There also has been a tremendous surge in demand for Hawaii real estate, which has supported our monetization efforts. The company took in approximately $44 million of total net cash from operating and.
And the activities in the quarter, primarily from the success of our land sales program and the strength of our commercial real estate portfolio.
This influx of cash allowed us to hit an important milestone in the second quarter, reducing our net debt to adjusted EBITDA ratio to 5.4 times.
For the first time since.
The 2018 special distribution associated with our REIT conversion, we are within our targeted leverage range of 5 to 6 times and we expect further improvement in Delevering as our monetization efforts advance in the coming quarters.
This progress not only shrinks, our non commercial real estate asset base, but supports.
The pivot back to growing our portfolio through acquisitions.
In the early stages of building the pipeline and are pleased to be in a position once again to have dry powder for pursuit of growth.
Another sign of our strengthening performance and outlook as our board the board's decision to increase our quarterly dividend of <unk> or 12.
5%.
Following a <unk> increase last quarter.
At <unk> 18 per share our dividend is now just the penny below pre COVID-19 levels on.
I am proud of our team and pleased by Hawaii, and ANV is exceptional progress year to date and I have growing optimism for the balance of the year.
Len.
We provide some additional color on the Hawaii economy, and the recovery we are experiencing.
The state's employment trends are improving rapidly.
Year to date through May the rate of employment growth in Hawaii is nearly double the national average and the unemployment rate fell more than 2% in the first 5 months of the year.
Tourism.
As accelerating thanks to a vaccine exemption for mainland travelers that was instituted in early July.
Inbound passenger levels for June were at 82% of 2019 levels, even with essentially no international travelers and before of the vaccine exemption was implemented for the mainland travelers.
These are great.
Signs for further growth to come.
While our portfolio is not heavily dependent on direct tourist spend tourism does drive the overall health of the economy, which in turn has supported the dramatic increase in spending in our neighborhood shopping centers.
Our 2 resort retail centers, which comprised just 8% of our portfolio is pre COVID-19.
Net operating income or NOI also are bouncing back nicely.
The accelerating recovery is driving improving results across our commercial real estate portfolio.
NOI is up nearly 13% over the prior quarter and up nearly 29% year over year, reflecting greatly improved tenant.
Covid Mormons and collections.
We executed 59 standard leases for approximately 106000 square feet.
During the second quarter at average spreads of 11, 5% over prior leases and spreads of 14% for retail leases.
The 32, new leases signed during.
Per quarter, nearly matched our quarterly record for the Hawaii portfolio.
We're obviously quite pleased with the robust leasing activity and demand we continue to experience.
Same store leased occupied occupancy at quarter end was 94% up 20 basis points sequentially and same store retail.
The second C was up 40, sorry, 40 basis points sequentially to 92, 2%.
This strong performance is consistent with and builds on the trends, we discussed last quarter, giving us confidence that we will see continued strong commercial real estate performance in the second half of the year as Brett will discuss shortly.
Occupancy turning to our redevelopment activity <unk> Park shopping center is progressing well and remains on budget.
We have substantially completed improvements to the central shops and of delivered the new vet hospital space to the tenant who is well along in its build out.
Starbucks celebrated its grand opening in mid May and Safeways exterior has been.
Been fully renovated.
We continue to upgrade and expand this well located center in Kailua and project returns of 8% to 9% with anticipated incremental annual NOI uplift of $1.7 million.
We will realize incremental NOI here in 2021, and additional income next year as.
Leasing is completed.
Now onto our simplification efforts demand remains very strong for Hawaii assets and land driven by the enhanced flexibility. Many people now have to live where they prefer even if it's far from their jobs.
We generated $19 million in total cash proceeds from <unk>.
Current venture projects and Maui business Park sales during the second quarter, bringing year to date total cash proceeds to approximately $48 million from all noncore asset sales.
During the second quarter at Maui business Park, we sold 6.3 acres for approximately $11 million, including for.
For millions of cash proceeds and of $7 million note.
And it could cooler we closed 14 units and received approximately $15 million from joint venture distributions and other payments.
This is the second quarter in a row that the main cuckoo you of the partnership made partner distributions bring.
Bringing 2021.
The ULA distributions to A&P and other payments to approximately $32 million.
With the progress of our simplification efforts in 2021, we're accelerating our strategic transformation to a pure play Hawaii commercial real estate company.
We will continue to market and sell our non core assets proactively including.
Total of potentially larger transactions our success on this path provides many advantages to A&P, including a more focused business model in line with our peers of balance sheet to support of better sustainable growth rate.
On a more streamlined organization with lower overhead we're proud of our efforts to date and expect more.
Our progress in the coming quarters.
Obviously, the most significant step ahead of us as the sale of Grace specific while there were many positives in the quarter, including strong core sales and great progress in closing out old projects and collecting receivables, we continue to experience delays in regulatory and permitting approvals to commence jobs.
<unk> with 1.
We still have a strong backlog of paving projects, which at some point will drive meaningful increases in revenue and EBITDA for the business.
We know that to fully compensated for.
The complete our simplification, we must monetize grace and we remain we remain.
<unk> focused on that goal, which we believe will unlock the value of our company.
Company for shareholders.
While the dedication and efforts of the entire ANV team are demonstrated by our operating results and improving financial condition. Another important part of our collective accomplishments as our commitment to being great stewards of the environment and communities.
Rather than veering from these commitments during the pandemic I believe.
<unk> team demonstrated more than ever how seriously we take them. We recently issued our annual review of giving and will soon be issuing an updated corporate responsibility report that will demonstrate how we lived and expanded our pledged to be partners for Hawaii.
I'll now turn the call over to Brett for financial details Brett.
Believe our <unk>, Chris and good afternoon, everyone.
Starting with our financial results for the second quarter, we recorded net income of $12.8 million or <unk> 18 per share.
Compared to a net loss of $4.7 million.
For a negative 7 per share in the same quarter of 2020.
Second quarter funds from operations was.
The $2.3 million or <unk> 31 per share compared to $5.9 million or <unk> <unk> per share in the same quarter of the prior year.
Core <unk> was $18.5 million or <unk> 25 per share.
Paired with $13.1 million or <unk> 18 per share respectively in the same quarter of the prior.
The year of growth in <unk> over the past 12 months was due to improved tenant performance, resulting in higher current rent payments and increased collections of previously reserved amounts.
The comparisons to the second quarter last year, obviously reflect the recovery from the acute impacts early in the COVID-19, pandemic amid mandated lockdowns and social distancing.
On a sequential basis <unk> increased by 20% or for per share from the same quarter of from the first quarter to 25 per share, reflecting the continued strengthening across our commercial real estate portfolio. So far in 2021.
Let me now turn to our commercial real estate segment.
CRA.
Revenues of $43.3 million was $9.3 million or 27% higher than the results from the same quarter of 2020.
NOI of $28.5 million was $6.3 million or 29% higher than the second quarter of 2020.
The increase from the year ago quarter again was.
Driven by the enhanced collections of both current and prior period rents.
As tenant performance continues to improve we have realized meaningful reversal of reserves. Excluding these reversals NOI growth would have increased approximately 22% over the year ago quarter.
On a sequential basis CRE.
<unk> revenues and NOI increased approximately 9% and 13% respectively from the first quarter 2021.
Again, excluding the impact of the reversals NOI growth would have been 6.7% over the prior quarter.
Same store NOI of $27.8 million was $6.2.
$2 million or 29% higher than the second quarter of 2020.
On a sequential basis same store NOI increased approximately 13% from the first quarter of 2021.
Excluding the reversals same store NOI growth would have been nearly 22% over the year ago quarter, and 6.5% over the prior quarter.
Turning of the leasing we continue to see increased leasing volume across our portfolio and.
In the second quarter, we completed 59 standard leases totaling approximately 106000 square feet for.
For comparable leases spreads were 11, 5% portfolio wide and 14% for retail spaces. In addition, this.
This quarter, we signed 16 COVID-19 related lease modification extensions totaling approximately 40000 square feet and at a weighted average term of 1 of half years.
The volume of new leases in the quarter of 32 was just 1 shy of our high watermark for new leases in our Hawaii portfolio.
We continue to experience.
Leasing demand across our high quality and well located portfolio.
Our Orlando operations business produced revenue of $16 million and generated EBITDA of $9.3 million in the second quarter 2021, as a result of sales on other operating revenue.
Of our sales activity this quarter included 14.
14 units at our Kukui ULA joint venture projects and $6.3 acres at Maui business Park for total cash proceeds of approximately $19 million.
As Chris mentioned due to the sales activity at Cook of ULA, we received approximately $15 million of cash proceeds in the quarter for distributions and other payments.
Our materials of construction segment generated adjusted EBITDA of $700000 for the second quarter.
The results were largely impacted by delays associated with the necessary approvals to commence paving jobs, we have won.
While operations remain challenged we continue to believe performance can improve over time as we increase paving activity.
The activity based on the backlog we have built.
Finally, with respect to our G&A, we've been on a steady downward slope over the past few years, if you strip out various 1 time expenses.
We acknowledged earlier this year that we would have some 1 time streamlining related charges. This year, but we were pleased with our core G&A.
For the trajectory and expect the decreases to continue as we advance our simplification and streamlining efforts.
Reportable G&A expenses for Q2 were $12.4 million.
Up from the second quarter of 2020 due to a combination of the very low G&A levels experienced at the height of the pandemic and the 2020.
<unk> costs of implementing a new ERP system and preparing to shift our pension obligations to of third party.
We now expect total G&A to be in the range of 51 million to $55 million this year.
However, on a net basis, our expenses should be well below our 2019 run rate, which is consistent with the steady progress we've.
1 in our streamlining efforts.
Let me now turn to our balance sheet and liquidity metrics.
This quarter, we made meaningful progress on our goals to reduce leverage and improve liquidity at June 32021, our total debt outstanding was $598 million and we had total liquidity of $443 million.
The make including approximately $20 million of cash and $423 million of remaining capacity on our credit facility.
Total liquidity has increased by $42 million from the prior quarter and up by $79 million from 1 year ago.
In the coming weeks to improve our financial tools.
The focus on growth of our portfolio, we will complete a recast of our credit facility. We expect to close the new facility, which has been fully committed and will include favorable changes to all unsecured debt covenants in early August.
We also will be establishing an at the market equity issuance program to go along with an existing share repurchase authorization.
So some of these steps are intended to ensure we have all the arrows, we need in our quiver to maximize shareholder value as of right.
Have no imminent plans to issue or repurchase shares.
Together, our new credit facility, the ATM and our repurchase authorization will provide us robust capital market tools as we complete our simplification.
<unk> and pivot to growth.
After closing the recast credit facility, we will have no material debt maturities until 2024.
At quarter end net debt to trailing 12 months consolidated adjusted EBITDA was 5.4 times down from 6.4 times last quarter and from $7.1.
1 times 1 year ago.
And our debt to total market capitalization stood at 31% at quarter end.
With respect to our dividend we were very pleased that our board declared a third quarter dividend of <unk> 18 per share, which is of 12, 5% increase from our 16th dividend for the second quarter and our second concession.
Of quarterly dividend increase the.
This reflects our improved visibility and growing conviction that Hawaii is on a stronger path to growth.
We will continue to work with our board to align our dividend with the REIT taxable income.
With respect to guidance, we are raising core <unk> per share guidance for 2021 to a range of 80.
The 1 to 87 from.
From the prior range of 69 to 77.
This guidance reflects our improved outlook and incorporates an update at the same store NOI guidance range of 7% to 10% from the prior 1% to 4% range.
Please bear in mind that while our outlook implies less.
Second the second half of 2021 compared to the first half. This is largely due to the timing of collections and receivables reversals.
With that I'll turn the call back over to Christopher his closing remarks.
Thanks, Brett with the the accelerating recovery of Hawaii, and the return of meaningful levels of tourism or portfolio is approaching pre.
Pandemic levels of performance.
We continue to focus on selling non core assets and our progress. This quarter reflects both of our level of emphasis on this effort and the strength of buyer demand for Hawaii real estate.
Our balance sheet is in great shape, highlighting the success of our simplification efforts and supporting our pivot toward of focus on.
Growth of 8 portfolio of growth.
We believe success in both of these efforts will result in meaningful value creation to A&P shareholders.
And a much simpler business model with every passing quarter.
With that we'll now open the call for your questions.
Ladies and gentlemen at this time, we will begin.
The question and answer session.
Ask the question you May press Star and then 1 using of Touchtone telephone.
You are using a speaker phone we do as you. Please pick up the handset before pressing the keys to ensure the best sound quality.
So let's draw your question you May press Star 2.
Once again that the star and then wanted to join the question queue.
So really sort of pause momentarily to some of the roster.
And our first question today comes from Milo Backer from Sidoti. Please go ahead with your question.
Is it possible of your phone is on the <unk>.
Operator are you still there.
I am still here Sir is it possible of your phone is on mute.
And we'll go to our next question Alexander Goldfarb from Piper Sandler. Please go ahead with your question.
Okay.
Good day.
I don't even know where it's been a crazy earnings day.
And I can I can commiserate with Marlin sure everyone's exhausted at this point.
So on the on the improvement this quarter versus last I mean, obviously, it's pretty tremendous the earnings beat was strong you guys.
On down the laundry list.
Economic growth in Hawaii is great land sales are healthy.
Leasing sounds strong it sounds like things are progressing on grace.
On the capital side, just a little curious on that front, you said that you want to establish an ATM.
Recasting.
Guys from the line of credit that sort of normal course, but then you said that you have no plans to issue, but you want to be in a position so given that the appetite on the island is for.
I should take the opportunity of the island to acquirers.
It takes a long time as you guys have have shown that.
What the getting all of this capital in.
<unk>.
Is that sort of for telling that there's a lot of transaction opportunity that's going to come about or is there. Some merely so that on your kitchen cupboard or on the kitchen counter that you have all of these options. It doesn't mean necessarily that youre seeing a commensurate amount of of investment opportunity that we should expect.
Yes, Great question, Alex I'll start this is Chris and then Brett can chime in with anything else. He wants to add I think really the way to think about this is that we although we have been of REIT for the 3 and a half years now rguest technically 112017, so I guess, that's it for and a half years.
<unk>.
Yes, obviously not been trading like a REIT, we've had a lot of overhang from our non core assets and so we haven't been trading.
At or near our NAV <unk>, we've had some headwinds that we've been dealing with and because of that we haven't necessarily had the been in a position to use some of the tools. The REIT would traditionally use.
To finance acquisitions, whether that's us doing an up REIT transaction or issuing equity as we get closer to simplification.
And we get rid of a lot of our noncore assets.
We believe that we will be acting in trading much more like a read and will be much better positioned to you.
Use of the traditional tools that of REIT uses and so what this is really about is.
Is putting those tools in place.
And so I would I would say, it's more of the ladder of.
Of what you of your 2 options, having said that we are pivoting back.
On the strength.
On the vacation and the stronger balance sheet, we are pivoting back towards the growth orientation and so all of the more reason to have these tools available, but I would say, it's really more a matter of just making sure that we've got the arrows in our quiver than it is.
Our belief that we are in an imminent need part.
Partly because we expect to continue generating good amounts of cash in the coming quarters and that would be our of course, our first preference would be to invest that cash into commercial real estate.
As we get it from additional monetization proceeds.
Anything you want to add Brett.
You covered it very well and again to reiterate Chris's statement.
<unk> is really putting the tools in place having them available for when we do get to a point, where we would need that that's really beating of the credit facilities in line with our dedicated REIT peers and just having those optionality when we went into we need those.
Okay and then.
Topic.
In the weeds.
If you don't mind looking at your same store of breakout by sector. You. Obviously can appreciate why retail would be up 43% industrial really strong I'm a little curious as to why the ground lease business would have grown 9.5% I would think that ground leases are pretty stable.
Im hoping that sort of of 1 to 2 or 2% to 3% grower year on year out and I.
Don't recall, you guys, having like being stepped on any ground lease rent in the past year or something that would have caused that to surge. So why would ground lease and the same store NOI growth 9.5.
<unk> year over year.
Hey, Alex it's Lance.
I think your comment is is fair in terms of what you might expect on a traditional annual growth rate, although as we've talked about 1 of the beauties of our ground lease portfolio as we do get.
Get these mark to market or.
Sometimes fixed increases.
That would drive sort of outsized growth and so specific to what youre seeing in the supplement.
We did have 2 ground leases this year that did reset 1 was heart, which is R of 36 acres.
Percentage over at Cop of late.
As well as the shopping center in urban Honolulu kind of the key shopping center and so we have received the benefit of both of those and Thats reflected in the numbers.
And is that my answer is that typical like we could is this something that are these just 2 unique assets or this is something that's embedded in your portfolio.
Folio and this is something that over time, we will see we will see increases like this.
Yes, it's really the latter and I know, it's a little difficult to project the run rate of the opportunities, but we do try to illuminate at least the fixed steps in our supplement and our our ground.
Acres table and then we also highlight when we do have these opportunities to step to fair market value and we provided comps in the past and some of the the significant increases that we've been able to get to NOI and the.
Then of course, the ultimate opportunity within the ground lease portfolio as the reversion of the leasehold improvements at.
Around lease of term either near it when we can buy it at a discount or at the absolute end of the term when we get it back for free.
Okay, great. Thank you.
Thank you.
Our next question comes from Marla backer from Sidoti.
Okay.
The end of the Phoenix.
We can hear you on MRO.
Okay, great. So as you get closer to resume the growth.
Can you give us any sense on what do you think the timeline is between identifying potential assets.
For acquisition.
Can you hear them and moving through the process to essentially completing of that question.
Hi, Mara this is Lance let me kind of provide some color on just the current state of the investment market here in Hawaii.
I will say that over the past 18 months Theres been few investment.
On this and even fewer marketed opportunities.
Now with that said 1 of our competitive advantages is our ability to source off market deals given the fact that we're here locally and that we have the relationships.
But it does take some time to your point to build that pipeline and as Chris indicated in his.
Trademarks, given the progress we've made on simplification as well as our strengthening outlook of the market. We have tasked our investment team and really focusing on building that pipeline now it may take a little bit of time for us to find the right deals, but we are excited and committed to becoming acquisitive again.
And then I would just also.
Also add that in addition to external growth opportunities, we continue to pursue internal growth opportunities within the existing portfolio.
So whether it's seeking build to suits at Maui business Park.
Or some current evaluations that are ongoing for repositioning within our retail portfolio, we will continue to pursue those.
<unk> as well.
Okay great.
And so I gather from your answer that you've already identified certain assets that might be a potpourri of positioning.
We have.
Okay and then.
In terms of.
Of the 3.
Thank you.
Sin.
With demand for itself increasing.
Has there been any variability.
So in that.
In that day that you have.
Subsequent to the close of the ore.
Has demand.
<unk> maintained its strength.
Yeah.
You were breaking up a little bit more of the but I think youre asking whether we've seen a change in the market just in the last month or 2 since the last months since the quarter closed is that right.
Yes.
Yeah, No I think if anything we're seeing.
Sustained and robust demand and this is both at what I would call the retail level, which is selling individual lots for example at a project like cooler or at the builder.
Parcel level, where you would sell of parcel to a third party to develop homes.
And then the for the industrial users in the business book I think we're seeing.
Good sustained demand and just in general.
The real estate market in Hawaii has been very hot this year and I don't think we see any signs of that subsiding.
Okay. Thank you came on.
Thank you Mara the.
Our next question comes from Sheila Mcgrath from Evercore. Please go ahead with your question.
I guess good afternoon.
I apologize if I missed some.
Some of this but.
The big revision to the same store NOI on the positive side I understand.
From the reversal of some deferrals, but were there any other changes like occupancy assumptions or leasing spreads that might have also impacted the guidance higher.
It's mostly on the.
The reversals, we also expect.
On the range, it's going to be the inclusion of either lower reversals that we or excuse me low reserves that we would expect.
On a go forward basis as well as just the improvements correct as what we've seen this year so far with.
With greater tenant demand.
Okay, Great and then.
With regard to.
<unk>.
The volume has picked up again and you had another distribution Chris does.
Are you still committed to like <unk>.
Speaking of partner or exit from this or does the acceleration of the sales make it.
Alternative to just hold the asset longer term.
We're still committed to.
To pursuing monetization of the asset.
We feel rather than this being a sign that we should hold the project, we feel it's a great opportunity actually to monetize it and so we are still seeking that path because of the benefits.
Of towards our simplification and just cleaning up our story.
And with regard to the simplification, both with Grace Pacific and Cook Lila are there.
The formal processes that are already going on going for both of those or is it still just.
You know of plant.
I would describe it as.
Active but not.
Not terribly formal.
Okay. So about the best I can do it the rest assured that we're very actively looking at our opportunities.
But.
On a sort of a broad.
The public marketing process on either.
Okay, Great and then you did mention of moving the team in the past.
Few months more to look at.
Growth in the acquisition maybe.
Maybe lance for somebody could just touch on how that process is.
Boeing is there anything.
In the pipeline at this juncture.
Hi, Sheila it's Lance I did make some comments earlier about the pivot of the investments group and looking at opportunities in the market.
I'd say that general market conditions were still relatively tight.
I haven't starting to seeing some slowing in opportunities.
And as is typically the case most of what we're seeing are off market opportunities given our relationships and the investment team's efforts.
So with all of that said I would expect probably maybe some modest investment opportunities for us.
This year and.
And then increasing the pipeline for larger acquisitions as hopefully the market conditions continue to improve into 2022.
Okay and last question for me on a kind of shopping center.
The yield on cost looks like.
Very attractive just in terms of us modeling that when do.
You expect that.
Asset to start contributing to NOI.
So we're already getting some contributions this year with the commencement of the lease and the opening of Starbucks, which was a couple of months early we have also turned on rent for 1 of our large relocation.
Squishes, the veterinary clinic that moved over to the.
The the dormant theater space and then we've also received the benefit of the increase in rent from Safeway.
Since we completed the majority of the improvements for their area of the shopping center. So those would be all partial year benefits.
And then we expect obviously full year benefits of those in 'twenty 'twenty, 2 as well as some of the rent commencement that we expect to occur from some of the inline leasing activity that's going on right now.
Yeah.
Okay, great. Thank you.
Thanks Sheila.
And.
Ladies and gentlemen, with that we will be concluding today's question and answer session.
Turning the corner at the conference call back over to Mr. <unk> for any closing remarks.
Yes.
Thank you for your time today on the call and feel free to reach out with any questions.
Aloha and have a great day.
And ladies and gentlemen, with that we'll conclude today's conference call. We do thank you for joining today's presentation you.
You may now disconnect your lines.