Q3 2021 Blackstone Mortgage Trust Inc Earnings Call
Good day, everyone and welcome to the Blackstone Mortgage Trust third quarter 2021 invested investor call hosted by Weston Tucker head of shareholder Relations. My name is Leslie and I'm. The event manager during the presentation. Your lines will remain on listen only and if you require assistance at any time. Please key.
Still zero on your telephone and a coordinator will be happy to assist you if.
If you wish to ask a question during the Q&A session. Please press Star then one on your telephone I now would like to hand, you over to your host for today Weston. Please go ahead.
Great. Thanks, Leslie and good morning, and welcome to Blackstone mortgage Trust's third quarter Conference call I'm joined today by Mike Nash Executive Chairman, Katie Keenan, Chief Executive Officer, Jonathan Pollack Global head of real estate debt strategies, Tony Marone, Chief Financial Officer, and Doug Armer Executive Vice President capital markets.
We filed our 10-Q and issued a press release with a presentation of our results which are available on our website and have been filed with the SEC.
Like to remind everyone that today's call may include forward looking statements, which are uncertain and outside the company's control actual results may differ materially for a discussion of some of the risks that could affect results. Please see the risk factors section of our most recent 10-K.
We do not undertake any duty to update forward looking statements.
Also refer to certain non-GAAP measures on this call and for reconciliations you should refer to the press release and our 10-Q.
Cost is copyrighted material of Blackstone mortgage trust and may not be duplicated without our consent.
For the third quarter, we reported GAAP net income per share of 56 cents, while distributable earnings were 63 cents per share.
Two weeks ago, we paid a dividend of <unk> 62 cents per share with respect with respect to that.
Through the third quarter.
If you have any questions. Following today's call. Please let me know and with that I'll now turn things over to Katie.
Western.
In the first quarter of this year, we highlighted emerging portfolio growth as a leading indicator for earnings growth and we saw the momentum building in the pace of our originations today. It's clear that we have delivered this quarter, we originated a record $4 $7 billion of new loans, bringing us to $8 6 billion year to date.
Thirdly on pace with our long term upward trajectory.
Our strong investment activity drove $3 8 billion of net portfolio growth for the year, thus far taking our portfolio to a record $22 billion.
And as our deployment has increased the earnings power of our business is accelerating we generated distributable earnings of 63 per share in the third quarter more than covering our long standing dividend.
Our performance. This year is reflective of the core advantages that continue to differentiate <unk>.
Deep established relationships with the largest sponsors in the market I mean that as they become more active we have more opportunities to find our target investments low leverage first mortgage loans on institutional assets.
It's a virtuous cycle the more we participate in the market the more sponsors experienced the advantages of borrowing from the ex MTA. The more activity, we see going forward further growing our pipeline.
We're lending in more markets across the U S Europe, and Australia and continually build upon our deep local knowledge and sponsor relationships within each region.
And our scale and expertise allow us to be a single source solution for top tier global sponsors, bringing the same creative innovative and knowledgeable approach that the SMT is known for all over the world.
This quarter, we closed three loans with Brookfield on assets in New York, Spain and across Europe, three with Morgan Stanley across multiple U S market and new transactions with Tishman Speyer Shorenstein rock point in northwest I'll repeat borrowers many times over.
And for first time borrowers their experience with us both at the origination stage and over the life of the loan often turns them into core repeat relationships.
This quarter, we closed nine loans with borrowers that were new to US earlier this year and we're now making us their lender of choice as they ramp up activity.
And our pipeline of compelling lending opportunities continues to build.
Today, we have over $4 billion of additional loans closed or in closing post quarter end supporting continued portfolio growth as we look ahead.
Given our productivity this year post COVID-19 originations represented 31% of the portfolio at quarter end overlaying, a significant component of newer vintage originations atop our stable pre COVID-19 best we can.
Continue to find strong credit opportunities and our tried and true sectors and markets and within these areas. We've further accelerated activity in segments, where we see the strongest growth in today's economy.
Multifamily represented 54% of our third quarter originations.
Market fundamentals in that sector continue to shine.
Rental demand led to nationwide occupancy of 97% and year over year rent growth of over 10% in the third quarter.
Sunbelt markets, where in migration is driving rents and absorption across sectors, where nearly 40% of our originations this quarter.
As a result of this robust activity our multifamily investments have nearly doubled from 10% of the portfolio at the end of 2020% to 20% today and our sunbelt presence has increased from 19% to 25% over the same period.
As always we're sticking to our core credit principles, including never reaching for yield or originations. This year have averaged 66% LTV in line with our overall portfolio and our long term strategy.
Our new loans this quarter exemplify our disciplined credit criteria targeting low leverage loans to top quality assets and sponsors and strong markets and.
In July we closed a $500 million, 58% LTV loan to a premier global sponsor on a new construction apartment project in Brooklyn part of the Affordable housing New York program.
Our unique access to information drove our investment thesis here it allowed us to act with confidence while others remained uncertain.
We began underwriting alone in February when New York City was just emerging from the depths of Covid second waves inventory was elevated in concessions were widespread.
But with a portfolio of over 10000 units in the city across our platforms, we saw leading indicators of leasing activity reemerging concessions beginning to inflect and demand is building.
Ultimately New York had its strongest summer of leasing in over a decade performance, we saw reflected across our portfolio of city multifamily assets and which proved out our thesis on this high quality lending opportunity.
Multifamily has been a consistent area of expansion for us this year as we continue to see strengthening fundamentals across the country.
We closed 24 multifamily loans this quarter, $2 6 billion, including $600 million in Texas $200 million in South, Florida, and another $500 million elsewhere in the sunbelt.
And we continue to see a steady stream of compelling opportunities to lend on stable cash flowing assets with upside in today's rent growth environment.
We've established a differentiated process for multifamily flow business, where we provide certainty and ease of execution to active top quality borrowers and see them come back to us again and again.
A factor where transaction volumes are up 50% over 2019 levels. This efficiency matters. Our sponsors can focus on closing and executing their business plans, knowing they'll have reliable consistent performance on the financing side.
Elsewhere in the portfolio, we continue to be focused on newer vintage high quality office, well, a manifest buildings that foster a culture talent retention and ingenuity.
Do you feel things are particularly appealing to tenants who are growing like creative tech based companies content generators life science firm and they are outperforming in todays leasing market.
This quarter, we closed a $312 million loan on a portfolio of recently completed LEED silver office adjacent to the new Metro line in Northern Virginia.
It's a market driven by technology information and digital infrastructure, one of our highest conviction investment theme.
Collateral assets are 84% leased on a long term basis to an institutional rent role, including Google ICF and new start.
Data driven knowledge economy tenants, who need a workplace environment that supports connectivity and innovation.
Our asset selection over time continues to be validated by the performance of our portfolio.
This quarter, we saw additional positive credit migration building on the year long trends.
Occupancy as of our collateral continue to rise across asset classes.
For example, our New York City multifamily collateral assets are currently 88% occupied up 30 points from one year ago.
We counted over 1 million square feet of leasing in our office assets this quarter and our hotel portfolio continues to improve with the majority of our assets now covering debt service in several exceeding 2019 revpar levels.
While we are mindful of broader economic impacts of inflation for our portfolio. It translates to rent and NOI growth further supporting the low basis and insulated credit position, we have in our loans.
The scale and growth of our portfolio allows us to continue the innovation and sophisticated execution that is the hallmark of our balance sheet strategy.
We have consistently achieved best in class terms across both our corporate and asset level financing reflective of the quality of our track record investments and Blackstone management.
Last month, we issued our first secured bonds of $400 million transaction that adds favorably priced and structured corporate capital to our already well diversified balance sheet.
Along with the debt capital raised this quarter. We also funded our growth with an equity issuance that was meaningfully accretive to book value per share.
Over the last year, we have tapped the full array of corporate and asset backed capital markets for our business.
Term loan bonds, CLO credit facility and premium equity and our ready access across these diverse sources ensures that we can be opportunistic with achieving the best structure and cost of capital for our company.
We are growing capitalizing on the ever expanding reach of the Blackstone real estate platform and generating strong lending opportunities in our highest conviction asset classes.
Our portfolio is performing with excellent credit metrics and continued business plan progress.
We're innovating with new sources of accretive capital, we are driving earnings growth supporting the attractive cash dividend, we have held consistent through the COVID-19 period, and we see great prospects for continued momentum to come and with that I'll turn the call over to Tony.
Thank you Katie and good morning, everyone.
This quarter's results illustrate the positive dynamics of our business in 2021, <unk> deployed capital into new loans driving increased earnings as our portfolio grows.
Distributable earnings increased to 63 per share from 61 cents this quarter exceeding our quarterly 60, Tucson dividend paid earlier this month.
Growth in earnings this quarter is a direct result of our strong origination pace Katie highlighted earlier and does not reflect any material prepayment income or nonrecurring items.
The tailwind from loans closed in the latter part of the third quarter will further support our near term earnings trajectory.
In the third quarter, we originated $4 7 billion of loans across 38 transactions driving our total portfolio to a record $22 billion, an increase of 15% for the quarter.
This portfolio growth is net of $886 million of repayments, reflecting a return to more typical market conditions as our borrowers complete our repositioning plans and either sell or refinance out of it.
These dynamics spurring the proportion of our portfolio originated since <unk> 2020.
The first quarter following the trough of the pandemic to 31%.
Putting greater potential to earn prepayment income on these newer vintage loans in future quarters similar to our experience in 2019 at Pryor.
Art from our active origination pace, the third quarter reflected another period of stable credit metrics in our portfolio.
We upgraded the risk rating on 10 loans with only one downgrade and no changes to our four rated watch list loans.
Overall, our weighted average risk rating of 2.8 declined from $2 nine last quarter, reflecting the continued fundamental strength of our portfolio.
These rating upgrades among other factors contributed to a four basis point reduction in our general seasonal reserve to 27 basis points.
To <unk> 42 per share book value.
We continue to receive 100% of interest do with virtually no interest deferral and no changes to our nonaccrual or nonperforming loans.
Our weighted average origination LTV of 65% has remained consistent over the last year and reflects the significant equity capital our borrowers have invested subordinates horrible.
We had an active quarter on the right hand side of the balance sheet and continued to benefit from attractive executions of our asset level financing.
This quarter over two thirds of our $2 $8 billion of asset financing priced L plus 125 to $1 50 range, reflecting.
Reflecting the premium credit profile of our loans.
<unk> of our balance sheet, and our deep relationships with credit providers.
In addition, we priced our debut $400 million senior bond offering in September which closed shortly after quarter end.
Transaction priced at a fixed 375% for five years no OID.
Very attractive level of lock in ahead of what will likely be a period of rising interest rates.
Lastly, we issued 10 million new shares of premium equity this quarter, raising $312 million and adding 25 to book value.
We closed the quarter with liquidity of $1 $1 million, including the bond proceeds received in early October and a debt to equity ratio of only $3 one times.
We look forward to closing our $4 billion loan pipeline, which will continue to increase our earnings power as we focus as always on discrete credit selection.
Maintaining the strength of our balance sheet and delivering consistent compelling returns to our stockholders.
Thank you for your support and with that I'll ask the operator to open the call to questions.
Thank you and thank you everyone and your question and answer session will now begin if you wish to ask a question. It is star then one on your telephone.
If you want to withdraw that question it start to.
And if you could just ask a question plus a follow up question. If you have any further questions. If you could just dull back in thank you.
Okay.
The first question comes from key Tim Hayes from B T. O G. You alive in the Cold Tim. Please go ahead.
Hey, good morning, guys, congrats on a nice quarter.
First question here.
Just about you know.
The all in yields on the portfolio you were at a very strong quarter from an origination standpoint, but only saw a modest degradation in the all in yield while also focusing on kind of more defensive assets multifamily Sun belt, where I would expect competition is a little bit more intense than other parts of the market. So.
Can you touch on it you know.
And I think you did touch on it a little bit in terms of the power of the broader Blackstone platform and being able to be consistent.
<unk> capital provider, but.
Maybe if there's any more anything more to that like how you were able to.
Sustain these all in yields you know are you focusing on heavier transitional assets now.
See construction pick up a little bit or is that where you're getting a little bit of spread any comments around that would be helpful.
Alright, Thanks, Tim I think your point is exactly right in that we've seen real consistency in the yields in our portfolio, including as we kind of expand into multifamily sunbelt and I think it really does get to exactly as you pointed out.
The differentiation in terms of our origination effort scale larger loan deep relationships with our counter party is the ability to provide speed and certainty and move quickly leveraging all the information we have within our platform that really allows us to continue finding what we see as compelling lending opportunity is no I wouldn't read too much into any individually.
Quarter, but I think if you look over time, including this quarter you know the yields have really been very consistent as have our LTV is and I think that just speaks to our ability to find the compelling lending opportunities that are a good fit for our portfolio.
Okay got it so it doesn't sound like any real change in strategy or at least.
More concentrated focus on different asset types that might get you a little bit more spread there.
No I mean to your point, if anything 54% of our originations this quarter were multifamily. So it really is very consistent game yeah.
Got it and then just my follow up there.
You mentioned some comments about the forward pipeline sounds like you know obviously you have a lot of activity going on still in the fourth quarter and I know repayments are lumpy and not always easy to predict but I would say broadly across the sector. We're seeing repayments pick up this past quarter was.
You know certainly a step back from what you saw in the second quarter, but just curious what your outlook is for repayments in the near Slush intermediate term. If you think that you might see some.
You know some elevated activity there and if that might be a source of kind of prepayment income for you guys over the next couple of quarters. Thanks.
Sure Yeah, I do think we will see.
Return to a normalized level of prepayments or repayments because it is all correlated with the activity in the capital markets. So I think that's certainly a possibility if the other thing to think about though is that the pace of prepayments is really more correlated with where our portfolio was two three years ago versus the size of the portfolio. Today. So I think as you think about the.
Our relative you know originations versus repayments, it's important to think about that but certainly the prospect for early prepayments.
Acceleration of income as our portfolio gets newer at the capital markets are reopening and we think that a return to more normalized levels there makes sense.
Got it thanks Katie.
Thank you. Your next question comes from the line of Stephen Laws from Raymond James You alive in the cool Steven. Please go ahead.
Alright, Thank you and good morning.
Katie the follow up I guess on the pipeline you know it looks like that for a couple of years of running a portfolio of around 125 loans were up over 150 now none of the new origination seem to have made the top 15 table.
Can you talk about that pipeline as it is it more loans than smaller loans than what we've historically seen and does that move you really out of the top five msas can you talk about.
You know whether the pipeline continues to have larger software.
Focus to Sunbelt, obviously in smart more loans and smaller in size.
Yeah. It's a great question you know I think the way I think about the actor.
Activity in our pipeline as we're still targeting the same types of loans, we've always targeted but we've also overlaid increased activity in multifamily and in some of the smaller growth market. So I think you'll still see us pursuing those great large scale opportunity is with very strong sponsors a lot of cash equity, where we can differentiate in terms of scale.
That's always been a great area of activity for us and we really like that opportunity, but we're also overlaying more activity, particularly in multifamily you know where the deals tend to be potentially a little bit smaller I think our average multifamily size. This quarter was around 100 million. So we're not talking about substantial difference in terms of our long term average, but we.
Overlaying more activity in that multifamily space.
Great and then on the origination side, though I appreciate the chart in the in the supplement.
It really shows kind of the.
Trailing 12 month annual origination number and if you look back out Covid. It seems like you know eight 9 billion in the year as sort of a normalized run rate is is that how we should think about growth from here is that number going to get bigger as you expand this focus can you talk about what we should think about as far as the annual origination.
Expectation.
Yeah, you know I think we've seen over and over for the year growth in our business and across the Blackstone real estate platform creates a virtuous cycle.
And you know we're growing all over our business, where you know we are increasingly sophisticated data larger market presence and we've grown our origination team as well to address the pipeline that we're generating from that larger scale by over 40% in the last two years.
So I think it's certainly possible that we'll continue to see you know the long term trajectory and and.
We've really grown the portfolio every year in the history of the company. So I think that long term trajectory is clear and we would expect to see it continue.
Great. Thanks for your time this morning.
Thank you. Your next question comes from Rick Shane from J P. M. Please go ahead, Rick you're alive and Nicole.
Thanks, everybody for taking my questions. This morning.
I'm curious as we look forward how to think about the floors in one of the things that stands out is that.
Disproportionately your non U S dollar denominated.
Loans.
Have a much higher percentage of.
Hum.
Zero floors or no floors.
I'm curious if that is a timing issue as a function of when that portfolio was created is it a function of sort of local practice.
Practice or is there something embedded in your currency hedges too.
Basically structurally provide effectively a floor that were just not seen in terms of where things are disclosed.
Hey, Rick its Doug ill take that one.
I think the answer is both actually in short so the zero floors in the European portfolio are really a function of where rates had been in <unk> and also in the U K.
Over the preceding several years when those loans were originated.
It's never increased on the continent in particular the way they did in the U S.
But you're onto something you know in referencing that the hedging strategy.
The rolling forward contract strategy that we do we essentially swap euro or Sterling LIBOR for U S. Dollar LIBOR and so that provides a very substantial hedge.
The floor income in our U S dollar portfolio because it essentially represents a non floor component of our capital structure that is exposed to U S dollar LIBOR.
Got it Okay I tried to adapt that actually makes a great deal since it's really helpful. Just because it's in.
In the context of things.
The distribution seemed a little bit odd I'm, just trying to understand how to think about that going forward. Thank you.
Thank you. Our next question comes from Dawn Sun that he from Wells Fargo, You're live in the call. Don. Please go ahead.
Oh, Hi, good morning, I'm, Katie could you talk a little bit about New York Office and what your view is and then also provide an update on.
Revpar and occupancy are trending in your portfolio.
Sure. So you know I think our view on New York Office remains very consistent with what we've been saying over the last year, which is that you know the outperformance from our leasing activity perspective from a capital markets perspective that we're seeing in the high quality newer advantage, while a monetized off until things that we've always been focused on that.
Really continues I think there's been a couple of great. Examples of that over the last couple of quarters, Obviously google's acquisition of the Saint John terminal being the most.
Ali.
You know published one, but we're really seeing it across the market, whether its hudson yards or near Grand Central the newer quality building continue to attract really great tenant demand and we're seeing that in the numbers tenant activity in the market and leasing activities all bouncing back and again really concentrated in those high quality building.
We continue to see the bifurcation that we've identified I think on the occupancy and Revpar side again, you know continued progress there.
You know I mentioned in the call, we're seeing really good coverage across our portfolio resorts continue to significantly outperform select service has been very stable and the urban hotel side, it's going to take a little bit longer but I do think the reopening of international travel in November will be a plus for that part of the market.
Thank you.
Thank you. Your next question comes from Jade Rahmani from K B W. You're live in the call Jade. Please go ahead.
Okay.
Thank you very much Katie I was wondering with the strong growth across the portfolio could you just explain.
The portfolio management process, how frequent are asset level reviews, and what information gets.
Paas upstream to yourself as well as other members of the management team.
Absolutely you know I think our integrated I havent really sophisticated asset management processes, one of that kind of areas of secret sauce of our business. We've got a great asset management team. They all sit with US here on the same floor in the same building we've worked with them a really long time and we go through every loan in the portfolio every quarter.
Really looking at individual performance leasing occupancy I'm, you know what's happening in the short term and the long term you know with our entire <unk> management team and then roll that up to the overall Brad's management team. So it's a very detailed sophisticated process and it's also quite proactive we use those refused to look at.
You know, which great loans are doing well that we can you know try and keep around longer you know looking at our call protection and thinking about how to maintain a high quality portfolio and also really using that to extend all the touch points, we have with our borrowers. So we've got a strong relationships with our borrowers on the asset management side as we have on the origination.
Issue side and it really keeps the positive dynamic flowing in terms of seeing new lending opportunities.
Thank you and a follow up would be.
In today's environment, how do you make sure you're not lending into an overly frothy market based on current low interest rates above historical valuations and risks to the outlook based on what we're seeing the supply chain, which I assume will eventually impact commercial real estate construction as well as inflation in the system.
Alright, well I think really it comes down to information, we own a $400 billion real estate portfolio across the Blackstone platform. We have 50 portfolio companies and Theyre always everyday feeding information into every aspect of the investment process here at Blackstone and I think having that app.
First the information flow really keeps us up to the minute in terms of what we're seeing in individual asset classes in individual markets. So I think it really gives us a big advantage in terms of making sure we're making the right investments overlaying that obviously with the low LTV loans, we're making strong sponsors asset classes that we've seen.
Stable performance over time, you know all of those areas I think help us really mitigate risks even as the market is changing.
On the supply chain and construction side, you know as a lender on existing assets or you know in the small cases, we do construction, where we have GMP is in completion guarantee is that really just means less new supply over time, increasing replacement cost should translate through to increasing value for existing assets. So you know I think as a lender.
On hard assets in you know potentially inflationary environment, that's really just going to translate to more value protection and credit support for our loans.
Okay. Thank you very much.
Thank you. Your next question comes from Steven Delaney from JMP Securities. Please go ahead, Steven you're live in the call.
Good morning, everyone. Congrats on your strong results.
Katie as far as this.
This velocity in the commercial real estate markets or is this just level of activity.
How does that impact in your mind the expected average life of your new loans I'm, assuming that when you talked about your sponsors it sounded like a lot of these loans are new acquisitions. So the business plans for your sponsors are you.
Seeing sort of a historical three to four year average outlook, just trying to get a sense for the life of these new originations. Thank you very much.
Yeah. That's a great question, you know I think that the life of our loans tends to be driven by the business plans of our sponsors more so than what's going on in the capital markets. So it's really you know most of our sponsors are employing a buy it fix it sell it strategy much like you know we have across the business here and so.
You know that the life of the loans really are driven by the exit part of the business plan and I don't think that's really changed substantially we've always had.
An array of different types of business plans and our portfolio, whether it's you know a straight lease up strategy unit renovations.
The rebranding of an asset you know whatever sort of type of transition and we've always had sort of a mix of light transition chat a little bit more transitional.
And I don't think the B.
You know that the trend on that has changed substantially. So we did see obviously an elongation in the duration of the portfolio in Covid as the capital markets were quieter I think there were assets that were ready to be sold.
Just before Covid, then obviously hung around a bit longer because of the capital markets, but I think that as the market returns to a more normalized level. What we'll see is a return to a more normalized duration similar to what we were seeing in 18 and 19.
Got it okay. Thanks.
Ladies heavy originations in <unk>.
And coming up in <unk> will likely the fresh loans likely sort of extend the weighted average expected maturity I would assume and then you just close my follow up quickly as the you made a positive comment.
Respect to Revpar revpar in the hospitality.
Holdings or would you say that applause similarly to your loan 14 in New York City.
Yeah, you know I think we're seeing positive trends in hotel across the board I won't really deferred is the pace or the slope of the recovery. So if you look at New York generally you know I think the market occupancy was you know it could've been in single digits at one point, you know two years ago and today its more like 60, 70% so.
It's really moved a lot there's still a lot more to go in a city like New York, because you know the underlying international demand for corporate demand.
It's going to take time to recover but I think that the direction, we're seeing across the hotel space is it's all upward. It's just a question of the slope.
Great. Thank you for the comments.
Thank you and your final question comes from the line of Jade Rahmani from K B W. Please go ahead Jade you alive in Nichols.
Thank you very much.
In terms of the repayment outlook, what do you think drove the modest level of repayments in the third quarter. Despite the surge in volumes, we're seeing across the sector and do you expect that to increase going forward. I believe you earlier indicated that is the case.
Yeah, I think it really goes back to when the loans were originated and you know when you think about the pace of the repayments.
You know the the repayments happen when loans get through their business plans do you think about the scale of the repayments we've had over the last three quarters, obviously quarters are lumpy. So we try and look at it over a little bit of a longer period and compare that to the size of the portfolio of three or four years ago, It's actually not really at a a.
A pretty reasonable number when you think about the weighted average duration of loans. So I think the differential youre seeing in new originations versus repayments, that's really a factor of the growth of the portfolio over time.
And you know I think that that's the that's the primary driver. So I think we're getting to a pretty normalized pace. This year and and you know you'll see it continue to track the growth of the portfolio two or three years ago, which is really sort of a corollary data point to look at.
Thanks, and lastly, a question I get a lot from investors and I know everyone asks you guys list all the time, which is about adding business lines, but from the perspective of liability management do you think that it's an interest.
Interesting prospect to add a different business lines.
In order to allow <unk> to eventually be able to issue unsecured debt.
I'll start and Doug can add too I mean, I think we're always going to be driven first by what we think the best investment opportunity is for our business. So we're not going to be driven by what we see on the liability side, we really start with how do we make the best relative value investments and then we think about the best way to capitalize those.
Its investments.
Yes, I wouldn't add anything to that its all about the investments and then we capitalize the given the investment strategy.
Yeah.
Thank you very much.
Thanks, Okay. Thank you I'd now like to hand, you back to Weston for closing remarks.
Well. Thank you thanks, everyone for joining us today and I look forward to following up after the call.
Thank you Weston on thank you goodbye.
Thank you everyone that concludes your conference call for today you may now disconnect. Thank you for joining and enjoy the rest of your day.
Okay.
Yes.
Yeah.
Yeah.
Okay.
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