Q3 2021 Cominar REIT Earnings Call
[music].
Good morning, ladies and gentlemen, and welcome to the coming to our third quarter 2021 results Conference call. Following the presentation. We will conduct a question and answer session and if at any time. During this call you require meet assistance. Please press star zero for the operator also note that the call is recorded on Wednesday November 3rd 2020.
Now I would like to turn the conference over to MS. You shouldn't think of it.
Thank you Susie good morning, and welcome to today's conference call, where we will be discussing highlights and financial results for the third quarter of 2021.
The presentation accompanying this call is posted in both English and French in the conference call section of our website.
In line with our disclosure principles access to this call is open to financial analysts investors the public and the media.
The question period will be open only to financial analysts.
Before I begin I would like to draw everyone's attention to the notice concerning forward looking statements on page three of the presentation.
Yeah.
With me today is our CFO Antoine told flat members of our executive management team Matti onto a bouquet EVP retail and Chief development Officer, they'll know plenty K, EVP office, and industrial and Chief Real estate operations Officer, and Natalie <unk> <unk>.
<unk> asset management and transactions are also here with us.
On pages, four and five before diving into the results for the quarter I will briefly comment on the conclusion of our foremost strategic review process initiated on September 15 2020.
Following an extensive and a rigorous strategic review process and based on the recommendation of the independent Special Committee and the approval of the board of Trustees on October 24, we announced the entering into an arrangement agreement.
<unk>, two which common ours to be acquired by way of plan of arrangement by a consortium led by tender out, including Frankfort capital artist suite with the support of Sandpiper and Koch real estate investments.
As part of the proposed acquisition group Mark is to acquire approximately $1 5 billion of retail and office properties and Blackstone is to acquire our industrial portfolio.
Under the terms of the arrangement agreement Com and our unit holders are to receive a cash consideration of $11 75 per unit, which represents a 16, 3% premium over the 20 day <unk>, leading up to the announcement.
Total equity consideration of $2 2 billion and an enterprise value of $5 $7 billion.
As part of this thorough strategic review process common are evaluated a broad set of strategic alternatives aimed at enhancing units unit holder value, given communize operational and business prospects within its various asset classes and geographies.
Together with its prevailing financial situations and structure as a REIT.
<unk> quote and alternative scenarios, such as asset and portfolio sales and Spinout transactions were also analyzed from the get go.
Through the strategic review process. It was concluded that the transaction represents the best outcome for common or its unit holders and its stakeholders. The transaction allows unit holders to realize an attractive price for their units through a noncash offer, thereby providing certainty of value and immediate liquidity.
As part of the strategic review process numerous potential financial and strategic purchasers were contacted and extensive arm's length negotiations occurred between common and the purchasers over the course of 13 months.
The transaction proposed by the consortium was the best and highest formal proposal received throughout the strategic review process.
<unk> capital markets provided an independent valuation, which determined that deferred Mac fair market value of the units ranged from 11% to $12 50 per unit.
In addition.
<unk> National Bank financial and BMO capital markets acting as financial advisers to deteriorate have separately provided the board with a fairness opinion.
We anticipate that the circular for our special meeting of unitholders will be mailed in the week of November 22nd with a meeting date on December 21. The record date for the meeting is November 10, and the transaction is expected to close in the first quarter of 2022.
Now, let's turn to our Q3 2021 highlights and results.
On page six I wish to highlight organic growth of six 2% and same property NOI together with eight 3% growth in the average net rent of 2021 renewed leases with positive spreads in the office and industrial segment.
Industrial leads the way with growth in 2021 renewed leases up 21, 7%, while office posted seven 2% growth and retail recorded a slight decrease of minus <unk>, 3% in 2021 renewed leases.
As at September 30, our liquidity position stood at $341 million.
On page seven our Q3 growth of six 2% in SP annualized was primarily driven by our retail and industrial segments with a 19, 6% and 10, 5% increase in SP NOI, respectively, While our office segment experienced a decrease of five 3% in <unk>.
NOI.
Q3 performance, where office is explained by a three 7% decrease in year over year overall in place occupancy coupled with higher operating expenses as office activity has slowly resuming.
After a deep shock in Q2 of 2020, the third quarter of 2021 marks our fifth consecutive quarter with improvement in our third quarter back in positive territory year.
Year to date, starting from a low point retail generated an 18, 1% increase in SP NOI, while industrial continues to perform well with positive 10, 1% growth in SP NOI and office posted a negative two 9% in SPN NOI.
Now moving on to page eight during Q3 as summer progressed in health restrictions eased across our regions optimism for a gradual post labor day return to the office increased.
However, at the end of Q3 and as Covid cases.
Counts increased many organizations pushed back the return to office plans as work from home work from home recommendations remained in place.
Following federal and provincial government vaccination initiatives and measures. Many major employees are also currently in the process of implementing implementing vaccination policies for their employees and business partners.
Yesterday, Quebec officials announced that come November 15th the work from home recommendation would be lifted adding that mixed formula I guess hybrids, allowing for the continuation of work from home will be recommended.
On the office leasing front, we are closely monitoring opposite absorption indicators and note that decision, making processes are slower than usual.
Our assessment of renewal suggests that for the time being there is a preference to delay key decisions on future office requirement.
In keeping with yesterday's announcement.
Many are planning back office later this year.
We sense that there.
They need to formalize their strategies prior to landing on mid to long term occupancy strategies.
As previously mentioned, our Sps NOI was five 3% less for the quarter and two 9% last year to date.
The decrease in SP NOI is mostly related to year on year decrease in our in place occupancy in all three markets, averaging three 7% and.
And a decrease in project management revenues.
Parking revenues also impacted this segment.
Since we are now comparing like impacted pandemic quarters. The decrease in parking revenues across our office portfolio is only 3% for the quarter and is stabilizing or even increasing in some of our most traffic sensitive properties.
With the gradual return of office workers operating expenses for the quarter increased by 0.7%.
The decrease in occupancy levels was partially offset by a sustained growth in rents for leases renewed year over year.
All over one 3 million square feet had been renewed so far for 2021 with positive net rental growth in all three of our office markets, averaging 77, 2%.
In Montreal are in place occupancy decreased by four 8% since the beginning of the year back to the level. It was at the end of 2019 up 85, 4%.
This decrease in Montreal is mostly driven by CBD in place occupancy that decreased by seven 8%. Following the expiry of Paddock communications at $15 55, K, Derrick and Montreal 482000 square feet and.
And essentially five leases totaling 90000 square feet at $2, <unk> and 2000, when Miguel College.
Despite this increase in in place occupancy Montreal SP NOI for 2021 remained essentially stable with a slight decrease of <unk>, 2%.
Sorry, I meant a slight decrease in place occupancy.
In Montreal suburban office market reached occupancy levels compared to Q1 2021. After a decline in vacant space led by an influx of new leases and sale of Hot Laval in the West Highland.
While downtown sub leases remained relatively stable quarter over quarter sublet space in the periphery declined as a result of natural expiries and a need for space as employees reenter their workspace.
For the first time since Q1, 2020, total suburban sublease availability style by almost 4% quarter over quarter.
Our suburban portfolio is benefiting from these market trends, resulting in six 3% S. P&I growth since the beginning of the year in which market. Our overall suburban committed occupancy rate currently stands at 86, 7%.
Compared to our estimate of suburban market committed occupancy of approximately 83, 2%.
Our next city office portfolio in place occupancy remains resilient at 95, 4% stable from Q2.
The portfolio, However, recorded a decrease of seven 4% in SPP NOI for the quarter.
Which related mostly to the impact of prior period nonrecurring revenues received in Q3 2020 for early termination penalties and less importantly, the decrease of 32% and urban parking revenues.
And a decrease of the in place occupancy rate of one 8% since the beginning of the year, partially offset by a reduction of expected credit losses.
In Ottawa, the overall vacancy rate is decreasing and the market experienced positive net absorption for the first time since Q4 2019.
We are recovering from a pre COVID-19 departure of 100000 square feet at 1000 innovation drives in Canada, which also represented a 5% portfolio decrease in in place occupancy.
We have already released 70000 square feet of the vacated space impacted by lower parking revenues in the downtown core the year over year decrease in SP. NOI was 12, 3% for both Q3 and year to date and should gradually recover over the next quarters as occupancy improves.
Following our leasing activities in Canada.
As well as parking revenues increase with the reopening of the downtown core.
Overall year to date in the office segment, new leases starting in 2021 account for 322000 square feet and renewals for one 3 million square feet, resulting in 95% of our leasable area maturing in 2021 that was renewed or subject to a new lease.
With a rental growth of seven 2% on renewed leases.
Up to now net rental rates have not been materially affected although higher incentive packages are offered by landlords in this very competitive market and many tenants are seeking shorter terms.
Including amounts to be collected from government agencies or office collection rate for the third quarter of 2021 was 98, 4% in line with previous quarters. After the same number of days.
As of today this collection rate stands north of 99%.
Since the beginning of the pandemic until the end of Q3 2021.
Our in place occupancy rate decreased by 1.0% in average for our three geographies, while those markets lost more than 3% of their occupancies.
In Montreal, our occupancy decreased by only 0.2% during this period.
On page nine starting from a pandemic affected environment the ongoing recovery in the retail sector as demonstrated by a 19, 6% increase in SP NOI for the quarter compared to prior comparable to prior comparable quarter.
And then 818, 1% an increase in SPP NOI year to date.
At the end of the quarter at 97, 1% of the leasable area maturing in 2021 was renewed or subject to a new lease.
In the case of renewals due to start in 2021, the average net rent decreased by 0.2% compared to a two 1% decrease for the same period in 2020.
During the quarter, we experienced a 3% increase in footfall.
A 3% increase in total comparable sales in our non urban core retail properties, meaning excluding Alex as Neal and class real estate over the comparable quarter of 2020.
Foot fall increases the net improvement from the previous two quarters of 2020, despite a 17% decrease in footfall over the comparable 2019 pre pandemic level, we experienced a 1% increase in total comparable sales.
We remained active on the leasing front with 97, 1% of 2021, Expiries or approximately one 5 million square feet already covered by new leases our renewals as tad as at September 30.
During the quarter, we added 175000 square feet of new leases in place for a total of 372000 square feet year to date.
We also have an additional 156000 square feet of new leases scheduled to open in the last quarter of 2021.
The 155000 square feet of new leases added in the third quarter included a 31000 square foot Tesla location in Quebec City.
21000 square foot urban planet at <unk> P. A.
A 17000 square foot kind of fitness, Alex Neil and a 15000 square foot Ashok Booth at <unk>.
With respect to the 156000 square feet expected to be added in place in the last quarter. This includes a 30000 square foot office area for ZB X back Jose and engineering for at least three condo fitness locations for a total of 43000 square feet.
A 21000 square foot urban planet.
And 20000 square feet, whether I know because I know the Hay group for four <unk> locations, which are toy stars.
And the total of 528000 square feet for 2021 in terms of square footage only 8% relates to pure fashion and keeping with our strategy of increasing our ratio of tenants that are performers in their category and reducing our mid mid fashion exposure.
Over and above these numbers, we have a total of approximately 83000 square feet of leases signed and planned to be in place in Q1 and Q2 of 2022.
Including a 36000 square foot of the Hill health oriented grocer had cluster last day, and a 17000 square foot Aetna medical clinic at Rockland.
On page 10, our industrial portfolio continued to perform very well supported by continuing extremely solid market fundamentals.
As we move towards a post COVID-19 environment, we expect that demand will continue to be very strong mostly propelled by E. Commerce advances growth in last mile logistics food storage and an.
Ration of investments in life Sciences.
As overall availability remains historically low and asking net rental rates remain at historically high Montreal's industrial market has never been more attractive even amidst the pandemic.
Our industrial portfolio has performed very well with an increase in the in place occupancy rate of two 1% year over year.
And then 11, 4% increase in SPN NOI for the quarter compared to the prior comparable quarter, mostly prepared.
Sorry, mostly propelled by growth in both net rent increases and occupancy levels, along with better than expected credit loss environment.
Our committed occupancy in Montreal currently sits at 97, 3% stable from Q2.
Our retention rate for leases coming to maturity in 2021 currently sits at 67, 2% with a robust rental growth of 27, 5% for Q3, Expiries and 21, 1% for the year.
Over 400000 square feet of leases coming to maturity, we're purposely not renewed.
Offset by seven 719000 square feet of new leases with 23, 5% higher rents.
In Quebec City, our portfolio experienced SPN Oi increase of eight 1% for the quarter and 7.0% for year to date. These increases are mostly related to substantial rent increases of 29, 6% for Q3 renewals.
And 23, 9% for the year to.
Two a one 5% increase in the in place occupancy rate.
And to an important decrease of expected credit losses, when compared to the same period in 2020.
Our Quebec city retention rate for 2021 stands at 72%, so far meaning that 100000 square feet were not renewed largely offset by close to 170000 square feet of new leases that were signed since the beginning of the year with net rent increases of nine 5%.
Overall in the industrial segment, we are staying on track with our strategic leasing plan, which prioritizes rent increases in value creation, even at the expense of short term NOI variation as.
As we purposely create tendency turnover in order to capture the best market opportunities and higher rent.
<unk> is the largest industrial property owner and the promise of Quebec has a total of $5 7 million square feet coming to maturity by the end of 2023.
Approximately 73% of these maturities are located in the greater Montreal region with an in place average net rent of $6 29 per square foot significantly under market.
Regarding our development activities are soccer put his project is currently at a formal approval stage with the city of Laval with construction of phase one expected to start in Q1 2022 and building one of this initial phase is expected to be completed by 2020.
512000 square foot industrial development at Kittila bed in Laval is also before the city for approval.
Soil compaction has been completed.
Antoine will now discuss our financial results. Thank you Steve Good morning, everyone on page 11 on a per unit basis <unk> came in at 28.
On an adjusted basis, our foot totaled 2009.
Four cents from Q3, 2020, and slightly higher than our Q2 2021 and street consensus of <unk> 27 for the quarter.
For sake of clarity that adjustment calculation of $1 $2 million represents consulting fees spent on the strategy review.
Also for sake of clarity.
Adjusted <unk> for the quarter includes the positive impact of a partial reversal last quarter credit loss provisions in the amount of $2 $5 million.
<unk> for the quarter also on an adjusted basis was 20.
Once again <unk> from Q3, 2020 and from the second quarter of 2021 hour.
Our <unk>.
Payout ratio stood at 47, 4% for the quarter.
On page 12, if we look at our expected credit losses.
<unk> recorded a gain for this quarter of zero point $9 million.
Buildup of this figure is a photos.
<unk> credit losses on trade receivables amounted to zero point $5 million for Q3, which coupled with rent reductions of $1 million net of provisions already taken amounts to $1 5 million during.
During the quarter.
We also reversed provision stick any prior period $4 million to $5 million, which more than offset the $1 $5 million mentioned earlier and leads to a net positive result of zero point $9 million for the quarter. The trend is clearer after a peak in Q2 2020 expected credit losses have been lending.
To Maria much closer to our normal course of operation.
Regarding our collection rate stood at 97, 1% for the third quarter, including amounts to be collected from government agencies compared to 96, 3% in the second quarter of 2021 also including amounts to be collected from public entities. After the same number of days post quarter.
As of today rent collection for the second quarter stands at 98, 5%.
Moving onto page 13. This page illustrates the streets are financings maturities as of September 30th during the quarter No new financing was put in place and new lease financing matured.
On page 14 at quarter end, our debt ratio stood at 55, 1%.
At September 30th our liquidity stands at $341 million of which $15 million is cash and the rest are availability under our credit facilities.
Moving onto page 15.
Our pool of unencumbered assets is diversified within the three segments almost in proportion similar to the entire coming up portfolio and stood at a healthy level of $1 $7 billion at quarter end.
On page 16 investments in Q3 2021 in capital expenditures, leading costs and lease hold improvements totaled $28 million down 16% from the same period last year, including investments and development activities capital expenditures in Q3 2020 totaled 30.
<unk> million dollars down 20% compared to Q3 2020.
For the year to date, Capex, including development activities and capitalized interest totaled $82 million down 24% from the same period last year.
Looking ahead, we foresee spending in 2021, a total of about $150 million, including capitalized interest.
I will now pass it back to silver.
Including remarks.
Thank you Antoine.
On behalf of management I would like to take this opportunity to thank all of our employees as well as our trustees for their contribution to our results.
On a personal note as this may be our last analyst call I wish to thank our past and present members of the financial analyst community.
Have engaged with common iron over the years.
I will now turn the mic over to the operator for the question period opened to financial analysts.
Thank you Sir.
Ladies and gentlemen, if you do wish to ask a question. Please press star followed by one on your Touchtone phone you will then hear a three zone prompt acknowledging your request and if you would like to withdraw your question simply press Star followed by two and if you're using a speaker phone. We do ask that you. Please lift the handset before pressing any comments please.
Go ahead and press Star one now if you have any questions.
And your first question will be from Jonathan culture at TD. Please go ahead.
Good morning.
Good morning, Jonathan.
First question just on the <unk> value is up a little bit this quarter.
Does that include any of the density potential that you have on your retail sites.
Now not only if you want to comment on the <unk>. The answer is no no no. They basically have not really move it we're talking about purely slate accounting adjustment.
Okay. So if you if you look at that.
The density potential there and I'm sure you guys did as part of your process. What like can you ballpark. What you guys think that would be worse.
Uh huh.
On this call know, but we will provide in a circular greater detail as to the background to how we approach to value compared to ifr as density and the unit price we've looked at a broad range of subsets.
We looked at and just not density, but we also looked at what we'd have to spend to unlock that density.
Costs associated with it no leakage deleveraging a bunch of subsets and all of that will be set out in the circular Jonathan.
Okay.
Hum.
So at the end of the day you're.
Not like your audit for Australia I'm just.
So it's tough to reconcile the 11 75 versus the idea for us value in.
I guess another way to ask the question is what would be the major difference between euro for us value and what Dan said was.
And they're in their fairness opinion.
First of all the yes.
The dish our de will be along so it's not a fairness that's a long form formal valuations you'll have all the details of what.
What they looked at in terms of.
The the basis to arrive at the the range. They provided in their work. They did is pretty much in line with the other.
Long form promo valuations they provide in the marketplace. If you look at that you'll get a good preliminary indication and when you look at <unk> you are looking at it in terms of future stabilized values and.
And when you look at unit value certainly <unk> is a measure but you also need to look at what.
What it means to unlock in terms of value from certain assets it doesn't even necessarily capture taxes transaction cost deals.
Leveraging leakage capex required to get there. So there is sort of a bridge from the IRS, but that's how you get to the unit price. There is a whole bunch of subsets you look at also compared to.
Other precedent, so I think the best way to.
Do not create any confusion is really just wait to see the disclosure that will be provided in the circular on that chart.
Okay.
As part of that disclosure.
It would be in there what the industrial is being sold out.
Right now the industrial is where.
That's a matter between the consortium and Blackstone I believe under the.
The API, which is currently filed under et cetera that has been redacted and we are working towards providing enhanced disclosure around that what I can tell you. This morning is that the transaction prices above.
<unk>.
Queen the consortium and Blackstone.
No we're not.
We're focused on what the unit price when you want it to get at.
Now there are matters, which are.
But I guess, the price at which the consortium and Blackstone transact and Thats between the consortium and Blackstone.
Right now with the group Mark.
So what does the $1 5 billion there would that be or are those values sort of in line with either for us or are they below area for us as well.
The below <unk>.
Once again, that's a matter between the consortia and then.
Mac.
Okay.
I am just curious as to like just given where industrial values are.
Just why why status quo. It wasn't it wasn't given more of a chance and the opportunity to do the 2019 strategic plan.
In a post COVID-19.
Once again Jonathan.
The circular and we will lay out in terms of background to the transaction all of the scenarios that we looked at status quo spinouts, we'd looked at spinning out retail we've looked at a bunch of different things okay.
All of that will be commented and.
Reflected in terms of the background to the transaction. So I think it's more important that we laid out correctly in detail and not just haphazardly on our call. This morning.
Okay, and then one last question the $200 million debenture that is.
Due in December I'm, assuming you guys will just put that on your line.
Yes, we are going to draw on our $250 million unsecured credit facility, which is untapped as of today.
<unk> repaid.
Series of Debenture, that's correct.
Okay. Thanks, I'll turn it back.
Thank you.
And maybe this is Jonathan just to get back to your question.
It's important I guess for everyone here is that.
We didn't start with a sale we started with the status quo analysis of the different scenarios. So we will we will reflect that and discussed that in our sector.
Thank you once again, ladies and gentlemen, if you do wish to ask a question. Please press star followed by one on your Touchtone phone.
And your next question will be from <unk> at RBC. Please go ahead.
Good morning, guys.
Morning, Thank you.
So Dan you mentioned that.
With that it is the highest and the best offer can you provide some additional context around that.
Were there any other bids for the entire company or bids for assets that may be exceeded the aggregate 11 75.
Awesome.
In terms of bids for well.
Bids for assets.
They're very distinct from the $11 75. So the question is how you work backwards to determine the $11 75 as a best in formal price Natalie once again compared to.
Status quo, Spinouts asset sales, either asset class or geography that will be discussed in the in the circular.
In terms of the then yes, we did receive more than one offer.
And this is the best offer that we received.
And it was highly negotiated.
Okay.
Can you maybe just comment on how many actually parties went through the.
The due diligence process over the last.
13 months.
And it will be once again, the a lot of people.
There was a very broad outreach to two the.
Potential strategic partners purchasers.
Financial types and.
Very very broad outreach.
There are a handful this is a very sizable entity side, what we saw from the get go as more people were trying to get together and understand different segments of the business, which interested in them.
And so we basically got down to what I call like essentially two groups that were interested in the in the <unk>.
And the opportunity.
Towards the tail of the process and how how we landed or how's the consortium landed with this offer will be out by going again in the circular.
It was a very.
It was a very.
Active process over the 13 months.
And during that piece, we had numerous.
Yeah.
Pretty sizable percentage of our unit holder base and discussions with us as participants.
And the second group you mentioned is not part of this transaction at all.
Pardon me.
It's important as you.
We see you see it in the circular.
This whole process and data and how we how the bid tension was played out an enhanced so I think you'll you'll have the answer of how all of that played out in the background section.
Alright.
Maybe just.
Any updated comments on any potential tax friction on the disposition of the assets to Blackstone group Mark.
Well I don't think thats tax friction related to the asset and it's more about what happens on the plan of arrangement.
So.
We're currently on.
On a preliminary basis, where we're working to minimize any ordinary income, which is essentially is recapture coming back to unit holders that will be outlined in the circular once again.
In terms of the process itself.
If there is a special distribution requirement that special distribution would be in units followed by an immediate consolidation. So the cash price would not be affected by any of this.
Okay.
Maybe just lastly, any other details you can share on the carve out of the retail and the office between the consortium and group market.
In what sense.
Not sure I understand your question pardon me.
The retail any office properties.
Split between Candor, all led consortium and what.
Group Mark is taking can you just provide some additional details around that.
Well I believe on Sept are that that list is currently.
As of this morning that mist is firmly on SEDAR. So youll see a specific identity of the properties and that once again.
We are counter party was a consortium as to how that got transaction between <unk> and the consortium, that's a matter between them between us but the list is available is detail.
And essentially growth Mark is looking at.
Ah off taking the call it regional retail.
So you start your way up from Leo caveat in three rivers.
The lay up to him was key.
There are some key office properties in Quebec city, including.
The complex is in there.
They are also reached an agreement with together family for the 25% at the same price.
And.
The.
The plus let's stay goes their way.
And in Montreal, 2000, when Miguel College and in terms of its two retail properties, which are noteworthy as Tesla gay and fab Tech.
But the whole list is on setup.
Got it thanks, very much I will turn it back.
Yeah.
Thank you.
As a reminder, ladies and gentlemen, if you would like to ask a question from the analysts community. Please press star followed by one on you touched on something.
And your next question will be from soon ISI. It at CIBC. Please go ahead.
Thanks. Good morning, just one from me. So then one of the item you mentioned between the.
<unk> and the bad ones Capex, So maybe qualitatively if you can indicate where that Capex mall and.
Invested a lot into your malls already and just curious whats the outlook of the remaining capex intensity.
Well when we say we look at Capex, we looked at Capex well first of all this year.
We have a.
I guess, our annual run rate would be around 175. This year, we're at 150 and it's not because we're we don't need to do the spend it's basically just COVID-19 related.
Timing issue in that regard so that amount doesn't necessarily fall off the table.
And we look at Capex in.
Regarding regarding FRS, when Natalie less looks at IFA, Russia accounts for cat for Capex, but we also pushed it out a lot further in terms of capex required over the years and.
Also what we need to spend in terms of.
Trying to unlock the value in certain of these assets or enhance the value of certain of the assets. So it's a mix of both but we we went beyond our typical just one year Capex run.
And we will try to shed more color on that as I mentioned.
Certainly the question of the difference between <unk>.
And the unit prices of interest through the community and we will we will try to shed as much lightened information and color around that that gap in the circular as we can.
Okay, great. Thank you, but there are other issues, which go beyond that and you do a formal evaluation as to what multiple in deleveraging and the prospects in each of the three segments.
So there is a broad subset of factors, which were considered by.
By us and by the advisors and by dish.
Okay. Thanks for that.
Thank you at this time I would like to turn the call back over to Mr. <unk>.
Okay, well, thank you very much and I wish everyone and have a nice day and.
We will look forward to.
And getting the circularity as soon as possible.
Thank you very much.
Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.
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Uh huh.
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