Q3 2021 Plymouth Industrial REIT Inc Earnings Call
Good morning, and welcome to the Plymouth Industrial REIT third quarter 2021, the earnings call all participants will be in muscle only mode.
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Like to turn the conference over to Tripp Sullivan of SCR partners. Please go ahead.
Thank you and good morning, welcome to the Plymouth Industrial REIT Conference call to review the company's results for the third quarter of 2021.
On the call today will be Jeff Witherell, Chairman and Chief Executive Officer Pen White, President and Chief Investment Officer, Dan Wright Executive Vice President and Chief Financial Officer, Jim Connolly Executive Vice President of asset management, and Anne Hayward General Counsel.
Our results were released this morning in our earnings press release, which can be found on the Investor Relations section of our website, along with our Form 10-Q and supplemental filed with the SEC.
A replay of this call will be available shortly after the conclusion of the call through November 12 2021.
The numbers to access the replay are provided in the earnings press release for those who listen to the replay of this call. We remind you that the remarks made herein are as of today November five 2021, it will not be updated subsequent to this call.
During this call certain comments and statements we make may be deemed forward looking statements within the meaning prescribed by the securities laws, including statements related to the future performance of our portfolio, our pipeline of potential acquisitions, and other investments future dividends and financing activities.
All forward looking statements represent plymouth's judgment as of the date of this conference call and are subject to risk and uncertainties that can cause actual results to differ materially from our current expectations.
Investors are urged to carefully review various disclosures made by the company, including the risk and other information disclosed in the company's filings with the SEC.
We also will discuss certain non-GAAP measures, including but not limited to core SSO and peso and adjusted EBITDA definitions of these non-GAAP measures and reconciliations to the most comparable GAAP measures are included in our filings with the SEC.
I'll now turn the call over to Jeff Witherell. Please go ahead.
Thanks, Chris Good morning, everyone and thank you for joining us today.
Our team continues to set a strong pace of the year with leasing acquisitions and capital markets, leading the way.
This is a collective effort and I'd like to thank our entire team here in Boston and in our regional offices for their commitment and diligence as well as a relentless focus on operations the.
The improving industrial fundamentals provide support for what we want to accomplish but it requires a strategy and teamwork to build scale and the way we have within our market.
I want to spend some time this morning on some updates around our progress.
Our key operating stats for the quarter continue to demonstrate the strength of our portfolio occupancy was 96, 3%.
Cash re leasing spreads were 10, 8%, bringing it up nine 7% through the first nine months of the year.
Same store NOI on a cash basis was up six 2% and rent collections at 99% plus.
Core <unk> per share it was in line with our forecast while a S. F O reflected the impact of solid real estate decisions to sign several longer term leases.
We have had a record amount of acquisition activity so far in 2021.
Have a few more transactions baked into our guidance for year end. We've also made great strides on the balance sheet with the addition of our expanded unsecured credit facility and successful deployment of our ATM program to match fund these acquisitions.
I would like to provide an update on our development program.
Currently have 11 projects in various stages of planning and development in four different markets with three of them currently under construction or active development.
The balance are forecasted to start in 2022, all told we believe these projects will total about one 3 million square feet and represent a total investment of approximately $82 million with a targeted range in the high single digits in Cincinnati at our Fisher Industrial Park, we have two exciting projects we're working.
In early July we started to reclaim over 150000 square feet to put into our leasing inventory. This project involved capping the existing press pits within the existing 125 million square foot building.
We are on track for a completion of this redevelopment by year end and as of today have signed 60000 square feet.
Have proposals out on another 60000 square feet.
The second project is the additional acreage at this site, which provides us an opportunity to consider three separate new buildings totaling almost 500000 square feet.
We are in the planning phase now with these three buildings and anticipate one of them will break ground in early 2022.
Portland, Maine, we are on track with completing shell construction next month at our $7 3 million dollar 70000 square foot ground up development discussions with potential tenants have picked up now that the shell construction is close to being finished.
In October we broke ground on a new $13 million 237000 square foot industrial building in Atlanta.
On the same site, we are in the planning stages for adding another building of approximately 180000 square feet. These buildings are adjacent to our existing building net of the 100% leased within a market that has solid absorption rates and rent growth.
In Jacksonville, Florida, we have four buildings in design phase right now and we are waiting on final permitting.
These are all located within two of our existing business parks and will total approximately 175000 square feet. We.
We don't have a definitive start date for construction, but with the infrastructure already in place. We believe it is feasible to have all of these online in late 2022.
We were able to pursue this additional value creation through development because of the market cluster strategy, we pursue to gain scale in our markets, but also be quick because we have the liquidity to fund this growth.
As disciplined as we are on acquisitions and new developments, we are even more diligent on the balance sheet, our top priorities with the balance sheet or to ensure that our dividend is well covered our leverage profile continues to improve and that we have access to multiple sources of capital I believe we have done a great job balancing these priorities while still maintaining.
A growth posture, we have one of the lowest payout ratios in our industry. We are still on track to stay within our leverage targets and we have demonstrated we can fund a record amount of acquisition and development activity.
This continues to be the time to own industrial buildings from the first mile to the last mile and we have the right people strategy and liquidity to achieve our top priorities, namely find the right opportunities that can provide the most embedded growth and extended platform that is difficult to replicate in our markets.
Penn why don't you walk us through our acquisition activity.
Thanks, Jeff and good morning, everybody.
It has been.
Most active year for acquisitions in our history.
In the third quarter, we closed on $101 million totaling one 8 million square feet and closed on $117 million totaling one 6 million square feet during the month of October.
With $54 million scheduled to close before the end of the year.
Thereby bringing our total volume of year to date acquisitions to $347 million.
Noted in our updated guidance of 42% increase over last year's total.
We have increased our footprint in our existing markets contributing significantly and St. Louis Memphis, Chicago, and Indianapolis, where we continue to methodically add to our existing clusters of properties.
We have demonstrated success in sticking to a formula of buying one off deals or as you've heard me say in the past hitting singles and doubles.
As a result, the Providence, we have closed on year to date have a weighted in going cap rate of six 8%.
And if successful as our strategy of acquiring one off transactions that has been we continue to explore the potential for acquiring smaller portfolios in our markets as a means to boost growth while maintaining fiscal discipline.
We have not changed our criteria as we analyze opportunities for the right mix of utilitarian industrial buildings in markets exhibiting positive absorption.
Rent growth.
Limited institutional competition.
The ability for us to deploy our property management teams on the ground to aggressively asset management and lease the properties.
With six transactions closed since our last earnings call.
Just a time I'll refer to page three of our supplemental for a more detailed description of the stats around each building.
There are a few highlights I would like to call out first the average costs have stayed within a tight range of high $50 to $65 per square foot.
Handful of exceptions here and there.
That's generally still well below replacement cost.
Second as I mentioned earlier third quarter acquisitions have remained mostly within our target range of mix mid 6% cap rates.
Late in the third quarter and to date in the fourth quarter, we've seen some additional compression in cap rates, particularly around opportunities such as the two building portfolio. We bought in St. Louis in early October.
You have heard us say before the larger the portfolio, but more of a pricing premium is typically sought and achieved from sellers, thereby compressing cap rates, even further to the low to mid 5% range.
Still the case and we've seen an increasing number of those portfolio to trade in markets, such as Kansas City, Columbus and Indianapolis.
Yet we are still able to purchase properties within our targeted range. We're finding opportunity that provides a slightly lower initial yield but with a much greater stabilized yield our quarterly earnings supplemental. This year has highlighted several examples where our exit cap rates are now several hundred basis points below initial yields based.
On the value we've created through leasing.
Building significant scale in our markets is not without its challenges, but this methodical approach over the last several years has had its advantages. It is first and foremost allowed us to add over 10 million square feet and nine markets in the past two years.
Cost far below what it would've been if we had bought those properties in the bulk portfolio trade by running by writing one big check.
That has allowed us to systematically place additional property management and asset management personnel on the ground in places like Columbus, and Memphis, and Jacksonville, and it's helped us source of additional growth opportunities through those local connections.
We continue to source, new acquisition opportunities and still maintain and.
Full and robust pipeline and we expect to build on the momentum we established this year for another active year in 2022, we.
We look forward to reporting our progress on our next call.
Now I'll turn it over to Jim to walk through the leasing activity and portfolio operations.
Good morning.
Through the end of September we had addressed 88% of our leases that were scheduled to expire during the year.
This is comprised of five 3 million square feet were scheduled to expire in 2021, including adjustments for acquisitions in early terminations.
Of that amount $2 6 million square feet has been renewed $2 1 million square feet was leased to new tenants, leaving 642000 square feet that still needs to be addressed.
Significant progress has been made on leasing this space and many leases are nearing execution. In addition, we have leased 342000 square feet of space that had been taken at the start of 2021.
During Q3 and year to date through Q3, we saw rental rates increased $10 nine and nine 7% respectively.
When he says all the prior lease rates on a cash basis during the quarter rental rate increases continued to be high including leases negotiated for subsequent periods. Therefore, we expect to be well within our guidance range of 8% to 10% for the year.
Portfolio wide occupancy at the end of Q3 was 96, 3% up 10 basis points from the end of Q2.
Of the 982000 square feet of vacancy within that portfolio 532000 square feet is being repositioned at five locations.
Excluding that we position square footage occupancy rate would have increased two nine.
98, 7%, yes.
Yes at these locations are beginning to show benefits with 67000 square feet previously leased an additional 79000 square feet leased in Q3, starting in Q4.
75000 square feet in final negotiations and active prospects for the balance of the reposition vacancy.
210, 31, we have collected 99, 7% of our rent billed during Q3 and 99% of the rent for October.
One small rent deferral was issued during Q1 that will be paid back by the end of the year.
It has been a busy year to October with 138 leases executed related to 2021 explorations and prior vacancies totaling $5 5 million square feet.
An additional 41 leases totaling one 7 million square feet has been executed for leases expiring beyond this year.
With many more leases nearing execution.
Looking at 2022, specifically of the $5 9 million square feet scheduled to expire.
Adjusted for Q4 acquisitions.
One 5 million square feet has been leased through October. This represents approximately 25% of the 2022 explorations as complete with an eight 9% rental rate increase over expiring rents.
There were nine leases scheduled to expire in 2022 of 200000 square feet or greater three of these have already been addressed we expect four to renew while the other two are actively being negotiated with solid prospects.
These numbers reflect the high level of performance that limits asset and property management teams are delivering and show that we are well positioned to meet our leasing and management requirements long into the future at this point I'll turn it over to Dan to discuss our financial results.
Thank you Ken.
First I'll call your attention to the supplemental information filed earlier, which provides more detailed disclosures. In addition to those referenced in the prepared remarks.
Looking at our third quarter results. Our key metrics are in line with our full year forecast with the exception of <unk>.
It was impacted by leasing commissions, primarily related to 10 year leases that were executed during the quarter that were expiring in 2022.
Core <unk> was <unk> 43.
Up from 41 per weighted average common share in units in the second quarter.
<unk> was 31, notwithstanding the commissions and a nine 6% increase sequentially and the weighted average share and unit count.
Same store NOI, excluding early termination income increased three 8% on a GAAP basis.
Same store NOI on a cash basis, increasing six 2% and.
When excluding the impacts related to three leases aggregating approximately 900000 square feet.
This quarter's same store NOI brings us to a one 3% increase year to date, implying another strong quarter for same store NOI in Q4.
Execution of these three leases captured a significant mark to market of 13% with embedded rent escalators of two 5%.
They were executed at a below market cost in terms of downtime and rent abatement and average of three months of concession for an average of nine years of term and creating significant value in the portfolio.
As noted in our earnings release, we have affirmed our full year 2021 guidance ranges I will briefly touch on several of the underlying assumptions.
The timing of and contributions from acquisitions continues to be the main factor in our quarterly cadence as we continue to add scale in our respective markets.
After completing $14 million of acquisitions in Q2, we closed on an additional $101 million in Q3 with another $117 million closed in October.
We have a remaining $54 million under contract that is expected to close by year end.
Brings us to a total of $347 million of acquisitions expected for the year.
That's above our previous guidance for acquisition volume.
With the timing of closings, we only saw a full quarter benefit in Q3 up 43% of this year's volume and I expect to see a full quarter benefit in Q4 up 51% of the full year amount.
Strong leasing activity for both renewals and new leases provides a solid base of growth as well as <unk>.
As I discussed earlier.
On a going forward basis, this acquisition and leasing activity provides a solid addition, heading into 2022.
And we will have more to say on that when we provide 2022 guidance with our Q4 and year end reporting.
In years past, we might have seen more timing disruption from the level of capital markets activity that we've experienced this year.
Well, we've been able to manage that this year with our ATM we've.
We've seen much better pricing throughout the year and have been able to deploy the proceeds while leverage is always at a moment in time and can fluctuate based on timing we've been successful in continuing to gradually reduce our overall leverage.
The higher weighted average share and unit count from the ATM activity now assumes that we'll be at 31 6 million shares and units on a weighted average basis for the year.
As of today, we had a total of $35 1 million common shares and units outstanding.
Implicit in our full year guidance is set for Q4 core <unk> will be in the range of 46 to 50.
And <unk> will be in the range of 41 to 46.
Q4 will see the proportional impact of the acquisitions I noted earlier, but also the full effect of the $35 1 million common shares and units outstanding today.
As we look at the balance sheet, we continue to bring down our cost of capital with strong execution on the ATM program and further reduction with a recent commitments from our banking group could be expanded unsecured credit facility on attractive terms.
Our debt to total market capitalization was 39% at quarter end.
Our net debt to EBITDA was at five nine times. This is lower than we had anticipated for this quarter due to the ATM activity and the timing of acquisitions.
We're still on target for our seven times at year end.
As expected with the closing of our expanded credit facility. The composition of our balance sheet improved to 41, 7% of our debt is unsecured with a rate presently under 2%.
58, 3% of our debt.
Fixed interest rates.
When combined with the utilization of our ATM program expanded facility gives us significant flexibility for future growth opportunities with well lettered maturities and improved borrowing costs.
I also want to point out that we are carrying approximately $13 $2 million of investments on our balance sheet related to construction in progress associated with a total of over $82 million and development activity for the projects as Jeff outlined earlier.
As we begin to bring these projects online there will be a contributor to earnings as well as.
Niv creation.
Our liquidity position remained strong as presently we have $38 $8 million of cash on hand, plus an additional $4 4 million and operating expense growth and $85 million of capacity on our revolving line of credit.
Operator, we are now ready to take questions.
We will now begin the question and answer session.
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Our first question will come from Dave Rodgers of Baird. Please go ahead.
Hey, guys. This is Nick on for Dave.
Think of it.
Last quarter Penn you gave an update on the acquisition pipeline today is around like $600 million.
So maybe give an update on that number and then kind of you mentioned the cap rate compression you've been seeing in the back half.
Third quarter into fourth quarter, maybe what markets are you seeing that the most.
Yes, Doug how are you.
Yes.
At that time, we had a pipeline in that $600 million range right now where we're continuing.
To look at it.
Deals in our pipeline, we still maintained a very a deep and robust pipeline as you know, we're looking at about $440 million to $450 million worth of deals right now.
And.
To answer your question about cap rate compression really the markets that we've seen.
The most decrease in availability rates are where we've seen cap rates decrease as well.
St. Louis sticks out as one.
Decreased 290 basis points over the last 12 months Columba.
Columbus is another one going from $6 seven availability rate's about five three.
And even Chicago the largest market.
Has dropped over 100 basis points, so we're still seeing.
Cap rate compression.
Throughout most markets those I just mentioned.
Being kind of stick out.
Most.
Thanks, that's helpful and then maybe move into jobs.
What.
When are you having conversations with like familiar tenants like what are they most concerned about today.
I guess more specifically are you having conversations about lack of labor ability for tenants and that's kind of like a pressure point for them or.
Anything along those lines.
Yes, Nick.
You're right I mean, the labor constraints are the same everywhere. So it's not like our tenants are immune from that so we hear that quite a bit.
But.
They still have orders they slow business to do so it's not stopping them from really leasing space, but.
And remember a lot of our tenants are running second or even third shifts so.
What we're seeing in some some locations as they would run a third shift that they can find people what they can't.
The late Labor Labor is really the number one.
Okay for them that we hear from them.
Transportation costs are up obviously.
But the inverse of that is we benefit the logistics business right is the warehousing business is benefiting from the kiosk in.
<unk>.
The logistics pipeline.
And then last one for me maybe for Jim you were talking a little bit about the 2022 exploration, but I think you said two are in process or.
In negotiation are those renewals or new prospects for the space and likely move outs.
Those two would be.
New prospects.
Okay.
That's it for me thanks, guys.
Thank you.
Our next.
<unk> comes from Barry, Oxford with Colliers. Please go ahead.
Great. Thanks.
Jeff when you look out over the next year and your needs for capital.
From the equity side of things will the ATM be able to meet your needs for.
For the most part or not necessarily.
Hi, Barry.
It has this year.
Right exactly.
So we would anticipate that it most likely would meet it.
We have.
Just look at our volumes and stuff the average daily trading volumes are higher than some of the bigger REIT. So we really like.
The liquidity in our stock right now so we will take advantage of it over the next 12 months and we think it we think it will.
Okay.
Okay, perfect and then a.
Second question.
Hi, Scott.
Would you.
I'd like to see that development.
Private question B.
So you can kind of break out the timeline.
Something about development.
Okay.
But what would you.
Matt.
My question Chi.
Got it.
30% of that questions already but I know it has to do with development.
Okay.
Okay.
The Maxwell.
$82 million of development, it's not all going on at the same time, so Brian get start that are going to happen.
Over over the next 12 months.
<unk>.
So.
That's kind of our number we've got additional land parcels that we could do some moron will continue to do it but again, we're not actively out buying land to develop that's not our that's not our game.
Right.
Great. Thanks, guys.
Thank you.
Neutral.
Our next question comes from Aaron Hecht with JMP.
Please go ahead.
My question.
Obviously, you're seeing a nice decline in your cost of capital both on the debt and.
On the equity side keeps improving.
That premium opportunity.
So maybe invest in assets.
Wouldn't normally be the sweet spot or that everyone's used to seeing.
Any sort of change there.
Whether quality or geographies or more development.
Okay.
Hey, Aaron.
Hey, Thanks for the question.
The real answer is no not really I mean, our strategy is going to remain the same as it has been.
So thats kind of the top line answer.
Yeah.
We bought some class a properties recently at what we would call class B prices right.
Our development yields are high single digits, so we're not going to be in the low.
Digi areas on development.
So we've always had this this posture if we can buy class a buildings at coffee prices were in.
So we're looking for value wherever it is whether its class a class b or new development.
I don't I don't think youre going to see.
<unk>.
A rush to 10 year leased.
Quality properties in California at a three and a half cap it's just not.
Fundamentally what we believe in.
Right right.
I wasn't trying to say go that low on the cap rate range.
Just trying to see if there would be any incremental change on the development side.
As the spread that you guys are targeting and obviously the yield that you are projecting a really high there has been cap rate compression in the space.
The parameters around that would be helpful.
Not not really because again, we're not we're not running this development division right, where we've got this master plan to go out and build millions upon millions of square feet of space in different markets and we've got these we've got this development.
Strategy, that's that's a big part of the company, we're not there yet I don't think were going to get there. It's just not really in our design.
So the stuff we're doing now is on land we already own.
We've been thinking about this development for 567 years. So it's just a natural evolution I think is the way we would like to say it.
And then just.
Bill.
But we're going to build that high single digit yields.
Or we're going to buy.
At mid to high single digit yields so that's the plan.
Great.
Just a housekeeping one on.
Same store operating expenses of $4, 2%, what kind of some of the factors embedded in that.
Sure.
Can you just repeat that I don't think Jim.
Sorry, if I was breaking up I.
I was asking about the same store operating expenses they were up four 2% year over year.
So there is some inflationary pressures out there, but just wondering what was the driving factors in that operating expense and Bruce yeah.
A lot of it was at the beginning of the year when the.
The storms hit.
To do.
That carried over into Q2.
And a little bit into Q3, but.
Yes, things have gone up a bit in price but.
We are recovering at the same percentage as we were last year.
Understood I appreciate it guys.
Thank you Ed.
Our next.
<unk> comes from Gaurav Mehta with B Riley Securities. Please go ahead.
Yeah. Thanks, good morning.
First question on your balance sheet on your series B preference stock. So in your supplement I see that if your stock price. Since January 26, 75, you guys have an option to convert 100% of that.
Preference stock and given that your stock prices close to that number.
So im wondering once you're on pumps would be.
You can stock prices higher that number starting 2020 do would you be looking to convert that preference stock.
Yes, Gaurav this is Jeff.
Thank you, yes, we would be looking to do that.
That's that's been our plan as I think we've talked about on other calls.
The.
The maturity of that.
It comes up in three or four more years, we still have plenty of room.
Starting January of 'twenty, three we can redeem.
Then the balance of it on January 24, so we've been very.
Focused on that we will our.
Our plan would be to redeem it can't say, we will do it will be but we should be in great position.
At the end of next year, and we will we will redeem them, if we can convert and take them out.
That's a great move.
We're really we're looking forward to.
Having a dialogue with them come January.
Okay great.
Second question on your recurring Capex I saw that you guys reinsurer and cutting capex expectations for 2021 I was wondering if you could provide some color on what's driving that.
Most most of our Capex, we have a route plan that we've been implementing over the last couple of years. So.
We have groups that were scheduled for this year some of them got delayed actually in Chicago, So there'll be a few carrying over into next year and then we have.
<unk>.
Some more on the tail end of next year as well, so we're kind of catching up on all of our groups.
Okay, great. Thank you that's all I had.
Thank you.
Again, if you'd like to ask a question. It is star then one star then one to ask a question.
Our next question comes from Connor Seversky with Wehrenberg. Please go ahead.
Hey, guys. Good morning, it's Eric on for Conor.
I appreciate the color on the volumes this quarter I'll, just kind of wondering if you could expand on the pipe headed into the new year, what's the mix between kind of your one off strategy in larger deals in the portfolio kind of going forward. Thanks.
Yes.
Hey, Eric its Penn here.
Okay.
It Hasnt really changed as a general comment.
We've been pretty successful.
Buying one off deals or as I've repeatedly.
Repeat myself hitting singles and doubles, but we are we are looking at some smaller portfolios that would help jet.
Jettison or boost our growth over the next.
Six to 12 months, so our pipeline.
Really kind of a combination of singles and doubles as well those portfolios that might be.
Maybe two or three properties.
Not not like 20 properties in four different markets.
Kind of.
That's when those cap rates really decrease significantly. So we are we are finding plenty of opportunities.
One of the main reasons why we were in a position to.
<unk> increased our acquisition guidance for for this year and I think we're very well positioned.
To continue the.
Similar activity acquisition activity going into 2022.
Oh, that's great.
And then I guess kind of given your decrease in cost of capital kind of helps protect the spread against compressing market compressing cap rates.
I think you've kind of already answered this but like.
Do you think you'd be willing to acquire.
Larger portfolios in your target market I know you kind of expanded on you don't want to go into California, but kind of in the Midwest region.
Does it look favorable in terms of the spread or kind of do you see cap rates compressing too too much as competition increases in the space.
We are seeing compression.
I would say that.
A significant amount of compression earlier this year lets say from going.
<unk> gone from first quarter to third quarter.
I don't know if were going to see that amount of compression again going into next year.
But we are.
We are always looking to opportunities.
Acquired portfolio.
If it makes economic sense and yes, we do have a spread between cap rates and our cost of capital.
It's down to or it's really a function of how great or small is that spread doesn't mean, it doesn't make economic sense.
So we're constantly reviewing deals along those lines and as I mentioned I think we've got some some good opportunities in our pipeline that will help us push the ball forward going into 2022.
No I appreciate that and then last one from me are you guys seeing any new supply coming online in your target markets that could kind of E competition in those regions and help you acquire at a more favorable cap rate.
We are where we are seeing supply come on it there was supply the growth in supply was limited in the early part of this year for reasons that you know about.
Sure shortages in.
All sorts of things from from steel to lumber to roof installation I think it's starting to pick up a little bit here, but the demand for the most part.
Is still out stripping supply and we're still seeing record amounts of leasing and absorption and all of our markets.
And we're going to probably see that going into 2022, I think that's reflected in the.
Rental growth rates that we're seeing but we've seen this year and im saying next year I think on average rental growth rate across our markets is between 5% to 6% and I.
I think thats going to go right through to 2022 and maybe into 2023 so.
As I said before.
While a lot of product thats going up in our markets doesn't necessarily compete with our product but.
We're seeing the rental rates increase and a rising tide does float all boats. So.
We applaud the rise in rental rates and I think that's going to have a positive effect on.
And our portfolio as well.
Perfect. Thanks, guys appreciate it.
Q.
Ladies and gentlemen, this will conclude our question and answer session.
I would like to turn the conference back over to Jeff Witherell for any closing remarks.
Thank you.
Thanks to everyone for joining us this morning, and as usual we are available for follow up questions.
Throughout the day and into next week the next quarter. Thank you.
Yeah.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.