Q3 2021 Digitalbridge Group Inc Earnings Call
Breathing.
And welcome to today's.
[noise] Digital Bridge group incorporated third quarter 2021 earnings conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
My pleasure to introduce Severn White, managing director and head of public Investor Relations. Thank you you may be get.
Good morning, everyone and welcome to the digital bridges third quarter 2021 earnings Conference call speaking on the call today from the company is Mark Ganzi, our President and C E O and Jackie will R. C F O.
Oh quickly cover the Safe Harbor, and then we can get started.
Some of the statements that we make today regarding our business operations and financial performance, including the effect of COVID-19 pandemic on those areas, maybe considered forward looking and such statements involve a number of risks and uncertainties. It could cause actual results to differ materially.
All information discussion on this call is as of today November 4th 2021, and digital bridge does not intend and undertakes no duty to update it for future events or circumstances for more information. Please refer to the risk factors disgusted. Our most recent Form 10-K filed the D. S E C N N or Form 10-Q for the quarter ended September.
32021.
Great. So we're gonna cover our standard agenda day, Mark will start with our three Q highlights Jackie will provide an overview of our quarterly financial results and then Mark will do a quick deep dive on one of our innovative businesses into executing the digital playbook section and will end with some key takeaways followed by Q&A.
We've had a great quarter and we've been busy so let's get started with that I'll turn the call over to Mark Guernsey, our president and CEO Mark.
Thanks, seven I'd like to start by thanking everyone for their interest and attention today, especially new investors that are just learning about digit bridge for the first time.
So where are we on our finished diminished finish the mission mantra for 2021.
As many of you know, we announced the sale of our wellness business earlier this quarter, taking us effectively two 100 per cent rotated on.
On digital infrastructure on a pro forma basis.
I want to put that into some perspective, because the team will have really achieve something special this year when that deal closes in Q1 of 2022 [noise].
As you can see on this slide that's the successful rotation of over $73 billion in assets under management.
We've harvested 33 billion of legacy assets.
And building over 40 billion a V U M in digital infrastructure.
The sector and asset class, where the digit rich team has a long history of investing successfully over the last 25 years.
Not only investing but building managing and owning and operating digital infrastructure assets.
We are now 100% aligned with the powerful secular tailwinds driving investment and connectivity on a global basis.
The transition as we call. It is not just about asset rotation.
I'm here to tell you it's been a complete transformation of the company.
Our corporate capitalization has gone from being Overlevered with over $7 billion in debt to just over 1 billion in the last year alone.
And just as important to this or corporate governance has also been completely overhauled with new senior leadership in place and a more digital more focused and more diverse board, helping us navigate the digital bridge roadmap and ecosystem.
I want to take this opportunity to thank the entire team for really amazing execution, especially when you consider it's happened in less than three years.
Where a new digital ridge and we're completely aligned with the future where real estate is going.
Next slide please.
Speaking of our strategic roadmap. The next slide gives you some context for where we are along that progression.
As we contemplate the transition stage, one ahead of schedule by over a year and with nearly 2 billion of digital purchasing power.
We're in the position we promised investors we wanted to be <unk>.
Finally, being able to play offense in off of our front foot and invest in the best asset classes that we see globally.
This is really exciting inflection point for us we're.
We're set to enter the second stage of our business transformation the acceleration.
Where are too high growth business lines really achieve scale, just as a number of exciting thematics begin to play out in our sector.
<unk> G I O T AI edge computing.
These are the emerging demand drivers were lined with and our investment thesis.
The place, we believe investors want to be today.
First our digital I am business is raising record amounts of capital.
And we're set to broaden and deepen our investment offerings next year and beyond.
That'll drive new opportunity and of course in turn field.
Which in turn drives our revenues.
And earnings.
Next.
Digital operating division is set to lift off fuelled by the deployment of our balance sheet capital into high quality stabilized digital infrastructure assets.
That means supporting our existing platforms data bank advantage or building exposure to new mature developed market assets.
This is going to be a significant growth driver for us as you can see here and it underpins earnings growth for the next two years.
The bottom line in the acceleration stage that we're entering is where this opportunity becomes very compelling.
Couldn't be more excited.
Next slide please.
Next I want to talk about our capital formation efforts that digit rich and specifically fund raising a D. C. P to our second flagship fund.
This is the most powerful part of our results this quarter.
We didn't slowdown in Q3, we maintained and built on our strong pace of capital formation, and we hit our $8 1 billion hard cap in early October.
In fact, we continue to see strong investor interest on our Lp's of agreed to increase the hard cap in this fund to eight $6 billion, which will wrap up at the end of this year.
We exceeded our original 6 billion target by over 35%.
The second fund is almost to exercise of DCP one.
And we've raised it in a speedy time period of less than 18 months.
This is really truly exceptional and it's testament to the power of having the largest dedicated digital infrastructure platform.
And most importantly, a best in class fund raising team led by my partner Kevin Smith.
Did your bridge has established itself as the partner of choice to institutional capital looking to build exposure to this resilient and growing digital infrastructure asset class.
I want to thank my entire team for their tireless work this past year and for this fantastic achievement that serves our shareholders.
Next page please.
So what are we told you in the past about the impact of capital formation.
First not only does it give us the firepower to invest and build new digital infrastructure businesses.
It drives our revenue and earnings with longterm predictable management fees.
This is our simple algorithm and it's on display here.
Our success and capital formation, driving our revenue and earnings guidance for the year, a true beat and race.
We're increasing our digital I am earnings guidance by 5% to $95 million to $100 million on a consolidated basis.
And it wasn't just our flagship DCP to fund raise.
As I've singled signal to you before are Coinvest program is not only strategic but it really deepens our relationship with our most important partners in L. PS.
It also gives us that incremental firepower, allowing us to evaluate almost any transaction in our sector, while simultaneously generating incremental fee and Carrie.
To the benefit of our shareholders.
We recently closed in the quarter $750 million coinvest across three distinct programs first vertical bridge the.
The largest private tower company in the US, where we took a control steak and fun to Navarre.
Nevada, and key LP relationships alongside of our investment.
Second and third skull on Highline.
Or two Brazilian portfolio companies and first the Hyperscale datacenter business and in the tower business respectively. Both.
Both of these businesses have enjoyed incredible growth and investors acknowledge the strength of these two platforms.
This fund raising takes us past $17 billion and <unk>.
Exceeding our year end 2021 target ahead of schedule by a full quarter.
And we've got another 60 days to close out the year I'm looking forward to a strong finish and once again cannot think enough my global capital formation team.
Next slide please.
So we've talked about are excellent fund raising momentum this year, but what does that future look like how do we continue to extend our sector leadership.
What's interesting in digital infrastructure to me is that it's really emerged out of the pandemic has its own asset class no longer stuck inside the broader infrastructure asset group.
And at the same time as that asset classes emerged as its own asset class, we see the investable universe of digital infrastructure growing.
As the sector pioneer and a dedicated digital infrastructure specialist I believe we are uniquely positioned to continue to lead and develop new offerings to meet investor interest.
And our customers persistent need for new infrastructure.
As I look forward to 2022 or.
Our next step here is to continue scaling or I am platform with a focus on new and emerging strategies broadening and deepening the base as you can see here to the right.
First and foremost that means forming capital around a private credit strategy.
Which we believe is a significant opportunity.
We've already deployed some balance sheet capital to seed investments in the space that will be contributed to credit products in the future.
This is a big focus for us in 2022.
Or liquid strategies already have over $600 million AUM.
And there is significant additional capacity of both the hedged and long only strategies.
Finally, we're looking at some logical extensions on either side of our existing flagship.
Whether that's core or continuation oriented vehicles that appear to be a good fit for asset class or growth capital oriented investments that leverage are unique insights and access across the digital ecosystem.
Next quarter will lay out some of these new goals for the digital iron platform in 2022 and beyond.
The key here is there are endless opportunities in this ecosystem and once again, we believe we have the best team to take advantage of the secular opportunity.
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Next is our portfolio activity update.
This is where we've thoughtfully deployed that capital and we're building value.
Last quarter, we talked about how we're already investing in some exciting new geographies.
Asia in particular and emerging subverticals like edge infrastructure.
What we'd like to highlight here is how effective we been quickly transforming and scaling these new portfolio companies.
This is a compelling digital ridge differentiator.
First I want to start in Asia, where we've taken the previously announced P. C. CW datacenter acquisition and agile datacenter platform and combined them to launch vantage APAC.
Leveraging the strong relationships of our CEO surreal chomsky and his team.
That have global Hyperscale customers into these new exciting markets, including Tokyo, Osaka, Melbourne, Hong Kong Kuala Lumpur.
And executing a playbook that has worked incredibly well for us in the us and Europe.
Our edge point platform is also growing in the region with now over 10000 sites across Indonesia, Malaysia, where the Premier tower consolidator in these key growth markets.
Finally in Asia, we partnered inside this quarter with our friends at Columbia capital to acquire Super loop.
Our first fiber acquisition in the region.
We'll talk more about Atlas edge later, but suffice to say, it's a great example of our ability to add value and build scale in short order for investments.
Finally closer to home here in this hemisphere DCP two took a controlling stake in vertical bridge.
Consolidated in the ownership base and extending our partnership with the largest private tower company in the United States.
On the digital operating side to the far right highlighted in Green Vantage FCC acquired another high quality Hyperscale data center and one of the most protected markets in the World Santa Clara, California closing on CA 22.
Next slide please.
So let's start right there with vantage Sdc's acquisition of CA 22. This is a 24 megawatt Hyperscale data center, that's adjacent to Sdc's already owned California, 21 data Center.
You can see the campus plan to lower right, which shows our ability to keep growing on this campus and deliver more high quality long term earnings growth.
As you know vantage STC is a core element of our digital operating segment.
And continued to grow our portfolio of World class stabilized Hyperscale data centers is a key focus for us.
We're excited about this first acquisition, which increased our capacity by 14% to over 177 megawatts.
I'd like to wrap up this section on the left hand side with an update on our wellness infrastructure sale.
This transaction remains on time and is slated to reach a final financial clothes and early Q1 2022.
Not only does this complete our asset rotation, but as you can see it delevers our balance sheet by 2.2 billion and generates over $300 million of cash and new value that will contribute to our digital purchasing firepower.
Before I hand, it over to Jackie I, just want to acknowledge what a breathtaking quarter. This is Ben we've hit the hard cap and DCP too over $8 billion.
Raising hundreds of millions of dollars in new Coinvest capital Long-sighted, some of our best ideas rapidly scaling and transforming our portfolio companies.
And wrapping up our diversified to digital transformation with the sale of our wellness business.
It's truly been an amazing quarter so.
So with that I'm going to turn it over to my partner in our CFO Jackie will thanks Jackie.
Thank you Mark and good morning, everyone. Beginning this quarter, we have expanded our supplemental financial package conclude two years of trailing quarterly details on the company to provide increased disclosure and transparency on our operation.
We filed the New report this morning, which is available within the shareholders section of our website.
Starting with our third quarter results on page 13, the company has seen rapid growth and its core digital segments.
Driven by strong capital formation momentum and digital investment management.
And by new acquisition and organic growth and digital operating.
For the third quarter report a total consolidated revenues were $252 million, which is more than double the same period last year.
Total company adjusted EBITDA was $18 million on a pro rata basis core off the file was $2 million and GAAP net income attributable to common stockholders with $41 million or eight cents per share.
Each of the total company earnings metrics have shown continued improvement from prior periods driven by accelerated growth within the segment digital segments and lowered legacy corporate expenses as we have sold off legacy non digital assets.
Note that nearly all of our remaining legacy non digital assets are now classified as discontinued operations and no longer contributing to adjusted EBITDA and core FFL.
Existing liquidity anticipated legacy monetizations represent over $1.5 billion of untapped near term, earning power that will contribute to adjusted EBITDA and <unk> as a capitalist redeployed in the near future.
They're getting in the third quarter. The company introduced adjusted funds from operations or <unk> as a key metric, which the doc necessary recurring capital expenditures to maintain the performance of its operating property in line with other digital peers.
Third quarter, <unk> was $1 million net of $1 million, a recurring cat back with just temporarily elevated from our longer term stabilized expectations of 3% of recurring revenues driven by data bank emphasis on integrating nicolo asset intuit footprint.
We will continue to report <unk> as a key metric and future quarters.
Moving to page 14, consolidated digital revenues increased to $249 million, a 5% increase from last quarter.
Buy new D C P Tuesdays and higher installation revenues and a $254 million pro forma for vantage is C. A twenty-two acquisition that closed at the end of September.
Looking at the right side of the page consolidated digital fee related earnings and adjusted EBITDA increased to $112 million during the third quarter, which is a 4% increase sequentially.
No former or vantage is C. A 22 acquisition Apple.
Alright, and adjusted EBITDA would have been $115 million.
Turning to page 15, we have seen continued growth and investment management and operating segments. During this year.
Since the beginning of the year, our annualized digital fee revenues increased from $100 million to $155 million and digital FRE has increased from $41 million to $79 million.
Investment management capital formation has been truly phenomenal over the last year led by DCP too, which has reached $8.1 billion in total commitment exceeding the $6 billion fund target by 35%.
As of today, we have already exceeded our year and 17 billion dollar fee Ernie equity under management target that we outlined earlier in the year.
We expect additional fund raising before year end.
Due to this success and outperformance of key performance based compensation measures, we have increased our third quarter, a bonus accrual by $4 million compared to the second quarter, partially offset by some of the revenue increases.
Additionally, we have continued to grow our digital platform, including new head count to support future planned investment management products that Mark has described.
The growth in digital operating segment revenues and earnings are the result of our continued rotation at the company's balance sheet with vantage stabilized data centers in July of 2020, the Colo in December 2020, and CA twenty-two vantage add on investment at the end of September of 2021.
Digital operating continue to have strong bookings and low chart in the third quarter offset by unfavorable power margin unusually short term weather conditions caused by the California, wildfires and increased G&A due to integration of the Z, Colorado portfolio by data Bank, which was.
<unk>, it and flatten adjusted EBITDA for the digital operating segments.
We will continue to grow digital revenues and earnings through our rotation of the company's balance sheet into high quality digital assets and manage investment vehicles.
Turning to page 16.
Following the recent outperformance of D. C. P to fund raising we are increasing our digital management fee revenues target range of $165 million to $170 million in 2021, and increasing a digital fee related earnings target range to $95 million to $100 million.
Or digital operating segment, we are maintaining our target range of $130 million to $140 million, a revenues and $55 million to $60 million up EBITDA in 2021.
In addition to our 2021 guidance, we are reiterating our of 2023 digital target and 2025 framework key driver metrics.
Turning to slide 17, the company recently lowered our effective cost of capital through several corporate and investment level transactions.
First and July the company issued $500 billion, a note securitized, primarily by investment management be earning including $300 million term notes at 3.9% interest rate with the Triple B investment grade rating and $200 million a variable funding notes at a three month LIBOR.
<unk> plus 3% that replaced a revolver and extended maturities from early 2022 to late 2020 sick on a fully extended basis.
Following the securitization and early use the proceeds was redeeming $150 million of seven 3% preferred equity effectively lowering our incremental cost of capital by over 340 basis points and generate annual net cash savings of over 5 million.
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The company also recently conducted an early exchange of $44 million of it's 2025 maturity five some 5% interest rate convertible notes.
Exchange save two and a half million dollars of cash interest annually and represent savings to beat your cash payments relative to original times.
At the digital operating investment level data bank and vantage stabilized data centers recently closed on exceptional financing execution in the last month.
Data bank completed their second securitization this year issuing $332 million of five year notes and all in right, 2.43% and vantage issued $530 million a five year securitization notes at all and rate of 2.17 per cent.
We look forward to continuing to drive corporate cash flows by reducing our effective cost of capital as we leveraged our strong growth and our investment management and operating platforms and with that I'd like to turn it back to Mark when he will lay out further details of our digital playbook. Thank you.
Thanks, Jackie great job by you and the entire finance team I really really appreciate the efforts.
So I talked about it in our portfolio activity update earlier in the presentation about how effective we've been in transforming and scaling our portfolio companies.
One such examples Atlas edge. This as a case study I've been looking forward to highlighting since we announced the investment back in May for just that reason.
It starts with a little bit of perspective, and most of all a lot of conviction around the European edge opportunity.
This is a market where mobile data traffic is projected to grow by xxxx over the next five years.
And at the same time connected devices reach over 4.3 billion by 2025.
This is strong growth and it's scaling increasing the market by 1.7 times in a short five year period.
But here's the other side of that coin, it's a highly fragmented market, where cloud hyperscale and enterprise customers have a hard time accessing low latency solutions with broad coverage and this is where atlas edge will thrive.
Atlas edges are joint venture with Liberty Global we announced earlier this year.
It's that single one stop shop, providing customers with a single integrated edge infrastructure platform with a pan European footprint.
Let's move forward to the next slide.
So as I said earlier this year, we partnered as Liberty global to launch the platform a.
A new European edge infrastructure business designed to capitalize on the opportunity that I just described.
In less than six months, we've helped rapidly transforming scale Atlas edge into a leading European datacenter provider built to serve the growing demand from cloud providers.
Streamers and enterprises for high performance scalable and secure edge infrastructure.
The business plan is rooted in key tenants that drive all of our business and globally.
Customers management.
And the ability to scale through M&A and new construction.
Atlas edge is highly interconnected data center infrastructure can distribute low latency applications and services such as five G gaming.
O T an edge compute.
It's already a leading European edge data center provider with over 100, plus facilities and it's poised for few the future growth with M&A and new new facility.
Construction.
As you can see on the right. We've got an extensive footprint across 11 markets in nine countries.
Broadly covering Europe with a low latency network.
All of this stems from our ability to craft key partnerships build great management teams and catalyzed strategic M&A. These.
These are the key elements of the digit rich playbook.
Let's take a closer look and how we're applying them tantalus edge next.
Next page.
First it starts with partnerships you hear us talk about the relevance of our deep industry relationships and this notion of collaboration with customers.
This is proof positive.
Our global network of customer relationships allows us a source develop and execute proprietary strategies that our peers cannot match.
Six months ago, we announcements innovated joint venture with Liberty Global leveraging a long standing relationship with senior leadership there.
For Liberty the steel allowed them to unlock both the existing value and the growth potential of their digital real estate holdings.
In addition to that several of their key operating companies also became tenants of Atlas edge and the JV is benefiting benefiting from liberties deep operational expertise.
Next connectivity partnerships in.
In October we announced key strategic partnerships at digital Realty, the world's largest datacenter Reed and <unk> one of the world's largest owners and operators of dark and lit fiber services also a digit rich portfolio company.
These are leading global digital infrastructure companies that are selected Atlas edge their preferred European edge partner and in the case of digital Realty. They made an equity investment in the business.
What's interesting to me here is.
The goal is to offer seamless integrated connectivity solutions. This is exactly the converged future we've been talking about customer.
Customers want solutions not components.
Finally, we intend to continue to extend the Atlas edge network in partnership with other European carriers that are interested in turning cost centers into reoccurring revenue streams, while growing equity value for their enterprise.
Partnerships are at the core of the outlet said strategy and distributed network of industry relationships are seminal and this progression.
Next page please.
Next and look probably most important is management you've heard me say it time and time again.
This has always been one of our hallmarks here a digit ridge the ability to track top management teams.
In this case, Josh Joshi, one of our digit Ridge operating partners serves as the executive chairman of Atlas edge.
Many of you here in the investment community No. Joshua is very successful leadership and interaction where you helped grow for over 10 years prior to its sale to digit royalty for $8 billion.
Josh has been working with us to find the right opportunity that gets them excited about building. The next great European data Center platform.
He's found that an Atlas edge.
Josh has been instrumental in building out the team, including Giuliano D. Vitantonio, who recently agreed to lead the venture as CEO.
We've known Giuliano for a long time and he's played a critical role in some of the most successful datacenter growth strategies in the industry.
But it's not just Josh Giuliano, leading we've got an incredible team of advisors from the strong management team at Liberty Global to key digital Ridge executives like John Mark Who's been instrumental Longsight are operating Ceos like cereal Chatzky realm martinek and.
And senior advisers, I'll chuckle, a little bit here like the godfather of data centres, Mike fast my partner.
This is a heavyweight team supporting Atlas edges growth strategy.
One of the senior leaders in isolation would be impressive and building any new digital infrastructure platform.
But this group as a collective is truly second to none in the datacenter sector.
Next slide please.
The third element of the digit rich playbook on show is our ability to source and execute proprietary strategic M&A.
Earlier this week Atlas edge announced the acquisition of Cold European datacenter portfolio 12 data centers across 11 European markets.
Not only did we spearhead this acquisition, but it is noteworthy that are operational expertise, which we believe sets us apart from average financial buyers was critical to advancing the transaction.
For Cole, who will serve as an anchor customer across many of these facilities are operating DNA was the gating factor.
This is a really exciting acquisition that not only extends atlas edges footprint, but enhances its profile with access to over 50 on net carriers driving diversified customer demand and highly interconnected environments.
We're looking forward to continuing to support the growth of Atlas edges M&A program as we do for all of our portfolio companies building strategic value and scaling businesses.
Next slide please.
So in conclusion, I'll finish where I started highlighting why outlets edge is a textbook example of how we invested digit rich today first it's a line with secular Jones.
In this case, the edge, which 10 years from now people understand the need demand and relevance for migrating compute and low latency solutions to the perimeter of the network.
Second we're building those next generation networks of the perspective around the corner to wear networks are evolving.
Low latency scalable and agile and built to serve new emerging use cases this is critical.
Third this platform Leverages are deep industry relationships that Atlas edge.
Those of our strategic partners.
Fourth.
It's about following the logos and anticipating what our customers need.
Finding ways to serve emerging customer needs and also following the data as it gravitates closer to the consumer and enterprises at the periphery of the network.
Finally, we love strategies, the tap into the entire digit rich playbook, because we know that's what we're maximize that's when we're maximizing value for our portfolio companies and our customers and you are investors.
With that I'll wrap up the Atlas edge case study I'm really excited to watch Josh and Juliano continued to execute and support their growth it'll be interesting to see what they're up to a year from now.
So with that let's now move on to the final section next page.
So.
Here's the key takeaways from Q3, a quick look at my checklist for the quarter.
Number one finish the mission.
We reached an agreement to sell our last legacy business unit's getting to 100% digital on a pro forma basis way ahead of our original schedule.
This is critical to your stakeholders underpromise over deliver.
Now as we turn the page we have a unique opportunity to play offense all the time as we enter the second stage of our strategic roadmap.
I want to be clear with all of you are shareholders. This is no longer a transitional story, we were through that phase and into the execution phase in my broader vision.
Which is to build the next generation digital Reed focused on converged network solutions for the world's most trusted logos globally.
In a format that remains unconstrained in our ability to form and deploy capital and deployed across the capital structure, where it makes the most sense and achieves the best returns for you our shareholders.
Digit ridge has established itself as the partner of choice institutional capital interested in allocating to the digital infrastructure ecosystem.
Our second fund just had $8.1 billion and commitments almost double our first one and over 35% higher than the original target.
Next year, we're going to build on that platform extending our presence into adjacent areas and products that align with our digital infrastructure I am business unit growth.
Number three we're going to continue to lead the industry in sourcing proprietary investments. We've closed eight platforms in D. C. B two that benefit from our deep industry relationships and business building skills.
In the face of increased competition, our pipeline continues to grow and we only see more opportunity on a global basis.
Never before have we been better equipped to address what we believe is the best secular market opportunity.
Digital infrastructure.
Next page.
So before we move on to the Q&A section I wanted to highlight the upcoming release of our first corporate overview.
It is designed to highlight a new simpler digit bridge that we believe is the dominant player in a secular growth sector managed by I will be meeting management team in the space today.
Meant to outline are differentiated strategy and how you are unique architecture gives investors exposure to the entire digital investment cycle via too high growth business units with simple algorithms for us to continue to execute against.
I encourage you to take a look at this informative presentation. So please check it out and so with that I'll ask the operator to initiate our Q&A session. Once again. Thank you for your time and attention. We look forward to connecting with investors next week at Nary, an increasingly I'll look forward to connecting with all of you in person as conditions allow.
Thank you very much have a great day.
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Our first question is coming from the lineup.
Talent. Please proceed with Ya.
Great. Thank you uhm.
One quick one just mortgage housekeeping, but just wanted to confirm are you intending to give until guidance for 2022 next year and then I think you guys are his PVC said that you think that this business is capable of sustaining plus 10% type xfo growth curious at that.
Something you are still endorsing.
And then also as it relates to the.
Digital operating business, obviously, you had databank in in the vantage SDC assets would you consider adding incremental stabilized assets that come from.
Non vantage effectively from from other potential opportunities that might be out there and if so would those be effectively integrated is that how you. Initially think about something like that or do you think that there is enough out there to potentially had those stand there on thank you.
If all the this Jackie.
Two housekeeping items and now flip it over to Mark on the strategic cost yet, but yes. It yes.
It says on your question. So yes, we will give the ethical guidance in the with the fourth quarter earnings release in February March timeframe, and then with add the bulk growth. We continue to expect that our businesses prime to have those types of growth increases.
Yes, that's right, Jackie and Hey, Kobe good morning.
On the stabilized side, yes, we are evaluating other stabilized datacenters as we speak not just inside the vantage family in the data bank family, but we do see other opportunities and we are unconstrained in our ability to look at those opportunities.
Price them effectively and then when we bring them onto the balance sheet. We have two fantastic management companies data bank on the edge side and then on the Hyperscale side, we've got obviously vantage so two.
Two platforms that can handle third party management and scale and we're seeing a lot of opportunity in this quarter. Thanks.
Thank you.
Thank you. Our next question comes from the lineup stayed Rahmani with K VW. Please proceed with your questions.
Thank you very much I'm wondering if you could share your thoughts on how supply chain issues labor constraints and other factors such as inflation might impact the digital position.
Yeah, Good morning, Jade flip.
So let's start with supply chain, depending on the vertical it's had an impact I would say remember jade we invest in sort of four critical swim lanes I would say in the in the fiber space. We have not been constrained we had purchased quite a bit of capacity prepandemic and so our supply chain.
Related to our fiber businesses has not been materially impacted on the tower space.
We've had some some components related to new tower construction get delayed.
Particularly in places like Latin America, but in the U S.
And in Asia, we haven't seen any chokepoints related to our new builds in fact, our budgets for new builds in the U S. In Asia, We will we will hit those goals and will probably it's hard to say, how the fourth quarter will fall in Brazil, Mexico, Colombia, Peru, and Chile each of those countries has different issues, but we do we do see.
<unk>, a little more supply chain choking and that part of the world small cells, which were a dominant player in the UK in the U S.
No material delays I think permitting has been more of the delays.
What we've heard in the third quarter.
Particularly in cities like London.
Places like Boston, and New York City, San Francisco.
Building permit offices or just inundated.
Kennedy with all kinds of construction home construction commercial construction. So we've had to work through some of those permitting issues, which are to your point are really labor.
Intensive.
But as it relates to the delivery of the polls and the nodes.
We haven't been we haven't seen any material constraints.
And the data center side, we have seen.
Anecdotal evidence of supply chain issues vantage Europe had some supply chain issues over the summer a lot of that stuff has been worked out and we're we're delivering I think here in the U S and data bank and vantage North America similar issues, it's always J just <unk>.
Small components that you don't see coming.
Literally can slowdown the actual delivery of a data hall. So from a construction perspective, we're not seeing any chokepoints and the physical construction, but when you get into the actual data center and people are lighting up servers and connecting them. That's what we're seeing some of the supply chain issues materializing today.
Labor.
Look I think.
All of our businesses have been busy through the pandemic. We continued to keep payrolls fully paid we didn't lay anybody off in fact, we actually hired during the pandemic, we've been great to our vendors for 27 years, having good relationships with vendors, where you pay them on time in early allows you to get to the front of the line. So for example in the case.
The vertical bridge, Alex and his team have an outstanding group of vendors that have been building towers for us some of them Jade over 20 years, and having those relationships and.
Making sure that you've always been a habitual early payor puts you to the front lines. So we've actually had no issues related to labor and to delivery of our infrastructure here in this hemisphere I think in parts of Latin America, and Asia and Europe.
There are anecdotal evidence is of trying to get people back to work.
Which in some instances has been has been hard from an administrative perspective, but during the pandemic our field operations never shut down in all parts of the world because everybody understood their job and really understood. The importance of what we were doing so.
Happy to say payrolls have remained in the right place and we continue to add people to those payroll. So we feel like we've we've done a good job through the through the pandemic.
Thank you on the capital structure side can you share your thoughts on continue.
Continued evolution is there a target leverage ratio, you're thinking about is that relative to EBITDA or that the capital and do you anticipate further.
Redemption of the preferreds are refinancing in order to optimize cost of capital.
Assure jade so definitely we can trade out our preferred equity overtime into much lower cost of capital.
Specifically around our whole business securitization structure that way.
Closed on in July of this year.
That will meaningfully breakdown our cost of capital so that our expectation and our view is that by 2023 upon realization of the numbers and targets that we expect to hit for both our digital investment management and our digital operating segments. We would get two more of a run rate leverage ratio of seven times are lower.
[noise] and any update on how you were thinking about corporate Jna.
No changes Ah, we actually have effectively nearly hit our targets of what we've guided the street previously of 100 $120 million.
Even a lighting for digital operator digital investment management growth.
Which Nissan and heard from Mark that was prolific this quarter and continues to be so we're very pleased with it and no changes in our guide guidance and our views.
And I think last quarter you.
You commented that you would expect positive F. A faux per share in 2022 is that still the case.
That is the case this quarter alone we had positive <unk> of a million dollars. So pleased to say that and certainly as Ah discuss with Colby at the at the beginning of the Q&A section, we will provide further guidance with the fourth quarter earnings call.
Thank you very much.
Thanks Jade.
[laughter].
Thank you. Our next question is coming from the line of Tan day with be Riley. Please proceed with your questions.
Yeah. Good morning, guys. I. Appreciate you taking my question. So personal for me just timing on putting the dividend back in place just you know.
Both timing and then sort of what you are looking at to have in place before you. Even go ahead and do that.
Well I think look consistent with what Jackie said about our <unk> guidance for 2022.
We'll get that guidance and our fourth quarter earnings, which will be early in Q1 of next year.
I'll restate, what I've consistently said all year, which is we are turning the dividend back on next.
Next year and the level at which we will do that gates on a couple of different things that happened in the fourth quarter, but we plan to turn on a de minimis dividend.
We've always been very clear with everyone that we see enormous opportunity to redeploy that capital and things that we believe are accretive and speak to long term shareholder growth and ultimately delivering the kind of earnings EBITDA and revenue growth that we're delivering right. Now requires you know as much capital as we can keep on the back.
One sheet, so there's a balance here as you'd expect.
We believe that we have the potential to be one of the fastest growing did it reads in the world in terms of revenue growth EBITDA growth in an amphibole growth and to do that we want to maintain maximum flexibility, but we are committed to turning the dividend back on.
Awesome I appreciate the color Mark just another question on the reach status even answered. This question a number of times on the call. So I'll ask it.
A little different way you know you you've done an incredible job fundraising grabbed me I am side of the business Ah question I, yet that I'm, often unsure of how to answer so I think it would be helpful for the investors and the call is there a risk that the I M side of the business.
Grows so successfully that it jeopardizes the reached status and just how should investors be.
I guess what are the acid or income tested investors should be monitoring over the next one to three years to meet those requalification space.
Yeah. Thanks.
<unk> and Jackie and I have been laughing about it all week, a little bit and I know, it's not a laughing matter, but it's it is a problem of riches right. The I M platform has grown much faster than I think we all would have expected.
And.
I think that's a function of really a couple of things that are happening one our ability to deploy capital and good ideas has certainly exceeded even our expectations.
To the rotation has happened faster then we'd all expected, which means we've done a good job executing.
<unk> the fund raising environment right now for what we do.
Is is really a very wide open and folks are incredibly receptive to not only our flagship ideas, but the other ideas that we intimated on the on the board call and then on the earnings call.
I'd say a fourth thing that's kind of interesting is.
You know when you have that kind of growth and you have that kind of opportunity you certainly don't want to slow that down either.
And I think we believe we have comparative advantage in our I am platform and we're going to continue to keep.
Growing that business unit and continue to ultimately deploy capital across some of these new strategies now at the same time.
The digital operating business is also performing incredibly well, maybe perhaps not to the velocity that the I M business is growing.
But nonetheless, we have a lot of really good opportunities that we're working on in this quarter that we think will bear fruit in the first and second quarter and clearly you know if if we are in a place where the I M business grows so fast and earnings are growing so fast.
The the potential for D reading could certainly happen, we don't want to sit here and tell you today that holding the re.
While disadvantaging the I M platform.
For us it would be silly, particularly if revenue growth and EBITDA growth.
Continues at the velocity, that's continuing at which is what shareholders want my experience in talking to shareholders today is.
They want revenue growth they want <unk> growth they want EBITDA growth they want to be with a management team that understands how to organically grow the business inorganically grow the share price and that's what we've been doing very effectively now for the better part of six quarters since Jackie and I came on to to run this company.
So look it's a your your question is incredibly insightful, it's something that we spend a lotta time on here at the company doing those calculations every quarter to make sure that we're in compliance at three.
We're in compliance this quarter, we have every intention of staying in compliance with the re guidelines, but to your point if I am gets to a place you know.
Where where it moves to Ah well beyond where the readers.
Where the read eligible assets are we will have a separate conversation that at the time, we can control what we can control and right now the control variable for US is that there's a tremendous amount of opportunity to grow this company and our revenues and EBITDA through the I M business and at the same time, we're going to continue to harvest and grow our.
Balance sheet assets in a prudent way, we're we're deploying capital in a in a manner that you'd expect from us which means we're not going to go out and do something reckless, we're not going to go out and pay.
30, plus times for assets to put on the balance sheet that just doesn't make sense to us, but as I think you saw the ability to build incredibly strong and scalable and investment great assets like C. A 22, we can bring that across to the balance sheet.
That's a good use from our capital thanks.
Yes, thanks market and totally agree that it's definitely a champagne problem to have so I. Appreciate your comments there I'll turn it over.
Thank you. Our next question is coming from the line of Eric left chat with Wells Fargo proceed with your questions.
Great. Thanks, Martin anything you can provide a little more color on the credit credit strategy you talked about that you expect to expand next year, perhaps you know parts of the credit capital structure and you'd look at anything on kind of targeted returns and then overtime how.
Ballpark of where do you think that could realistically scale.
Yeah. Thanks, Eric will look digital infrastructure today, or because you know it was about a 13 trillion dollar Tam you know and if you take a modest 50% loan to value ratio. That's a setup that indicates that there's about six and a half trillion of digital credit digital infrastructure credit sitting out there that's a big big market now.
Not all of that obviously is are are places we would play banks have historically occupied that space really well in the first liens and the first lien category, where stuffing price between you know.
Base rates, plus 200 base rates, plus 300, 400, and that's really not work, where our product which is more of an opportunistic credit products fifth.
Where we really see opportunity Eric is in a couple of different places today, one secondly.
We've originated as Jackie indicated a bunch of loans already on the balance sheet, where we've done great second lien structures, where we see yields and that sort of seven 8% range second we've been able that we've seen windows, where there's been secondary opportunities or we can come in and buy a credit that we think is misprice, we're sort of taking it into it.
Packed the entry price and the coupon and the total yield to worst.
We think there's a really good opportunity to ultimately drive returns and that sort of 9% to 12% range and we're finding good opportunities in the secondary markets and we've already done a couple of secondary trades as well.
And then I would say look at a third place where we see opportunity is just providing what we call flexible capital, where we can do convertible preferreds and other types of instruments that when folks can't go out and raise equity where a great source and a reliable source of capital that certainly understand the business and we're incredibly lender friendly that way because.
We know the sector, we don't have to spend time underwriting fiber small cells or towers. We know most of the C. E OS when I've spent a lotta time underwriting those Ceos. So we can move quick Eric.
And speed is important right now and then I would just say as an overarching view, we do see credit tightening. This is really important you know credit was very available at the beginning of this year very available during the pandemic to great digital stories, but the market is becoming more discerning.
And we see middle market digital infrastructure companies, not having the ability to access the securitization marketplace not being able to access investment grade level that and this is really where we have a deep understanding of the marketplace and the opportunity and we can underwrite those opportunities and move quickly and support you know middle market companies that.
Want to get to scale I think this is a huge opportunity and I think in this environment.
As as we've seen inflation taking place.
Base rates are are stabilized, but base rates are moving up but spreads are really haven't tightened much. We're seeing overall interest rates move upwards for certain private digital infrastructure credits. So this creates opportunity in our view.
And we think this will be one of the great opportunities over the next couple of years as we see markets are uncertain. We do believe credit will continue to tighten and we do think we've got a best in class team that's already out executing on this strategy. So now we're forming capital around it and I think you understand when we put a team together and we have good opportunities.
Capital seems to have a way of forming for us here at digital <unk>. So this is something that I'm personally now involved in and I'm really excited about it.
Great. Thanks for that color Mark just one more wanted to get your temperature on the on the balance sheet side.
Obviously, you were able to take advantage of you know a fairly favorable recontracted cap rate for vantage S. D C around 5%, but it seems like cap rates for high quality assets today are probably lower.
And where you were able to contract with vantage at so.
In the near term as you see it are you more likely to put some of that equity to work back into either vantage or data bank for new development as opposed to bring a new assets on the balance sheet or how are you. How are you thinking about that as you look.
The next 12 months.
Thanks, Yeah look Eric we see more opportunities for the balance sheet, not less actually, particularly as we've grown liquidity and folks know the balance sheet is open for business, we're seeing more stabilized and high quality assets that were underwriting I think this delta between you know looking at cap rates between 400.
6% as you can imagine it has a wild impact in terms of what we pay how we lever it and ultimately what the yield is and the impact to the balance sheet.
I think one of the analysts had assets earlier, what would we take on assets outside of data bank and vantage under the balance sheet and the answer is unequivocally, yes, uhm and we're seeing those opportunities and they're becoming more prevalent so.
Now look that Ford contract vantage FCC was great it's been a fantastic relationship.
Some illness team keep keep building stabilized assets.
Incredibly fast will continue to evaluate those opportunities and if the vantage board wants to continue to to realize value of those assets.
We do think were the most logical buyer for those assets given the the structure that we've put in place and the management agreement and ultimately aligning ourselves with the management team there so.
I'm not trying to portend to too much to you, but suffice to say you know we do see good opportunities.
We do think we can get stuff price pretty close to that that contracted rate of five cap and as you'll see in the next quarter will will have more to offer you.
With better details.
Great. Thanks, Mark.
Yeah.
[laughter].
Thank you. Our next question has come to the line of Rick Princess with Raymond James. Please proceed with your questions.
Let alone.
When Rick Iraq Oh.
Did you see the seawall check with moving from transformed to accelerate feedback on.
<unk> one six of the dead possible, obviously warm down to the quality of the capital also has a full bowl.
Morgan wholesale dark by this and that means that all but help investors understand how you view the opportunities in Florida, that's a broad word.
Walk us through a little bit about.
Enterprise fiber versus dark fiber poltical wholesale small fall fiber to the home that there's a whole plethora of fiber apple, but what's attractive to you with like bold call back when you walk a little further there will also go back to the Bible question, maybe on fiber awesome.
So.
Fiber, Rick really has you know to to.
Make it easy for investors, we always say the fiber business has two different distinct product lines.
Retail and wholesale retail faces consumers and enterprises and wholesale specifically faces.
You know other telecommunications and webscale providers and so on a wholesale basis, we liked that business a lot because we're entering into longterm agreements with investment grade counterparties that need help building that fiber infrastructure and a specific geography, or it's a specific metro or could even be a series of laterals.
That we're building for a customer.
What's interesting from my perspective is.
Our customers aren't in the middle of a very complex.
Build strategy, which is predominantly our mobile carriers and our web scale providers, they need dark fiber and they need it in different ways and some of them don't want to do that with a with a J O or a bean field.
Or some of the other different fiber providers out there they'd rather build it themselves, but they'd rather finance it and have somebody pay for the cost of that dark fibre and then in turn lease it back I think my friend Kenny Gunder minute unity has done that with Windstream, we see that there's more opportunities to leverage our balance sheet and help our customers as they are.
Either build out residential fiber plant or they build out metro plant are they build out long haul plant or are they build out firebird the power plant that they wanna keep and they want to maintain control of their network, but they might be somewhat capital constrained in doing so so we can provide that balance sheet capital and we can enter into an agreement that's price sufficiently where we get.
Ah nice yield we get a good return, but most importantly, we get an escalator and we get stabilized cashflows from an investment grade counterparty and we thank those opportunities can reside on our balance sheet now one emphasized can reside.
And in those situations those are not competitive with a bean field or is it simply a financing structure that really helps our customers leveraged our balance sheet to ultimately leverage their physical plant in their network. So that's really the difference Rick between wholesale and what I would call retail fiber.
Today and.
And I think from a buy and build perspective, you know the unit level economics really haven't changed that dramatically and fiber and we continue to see good unit level returns at both being field is Dale.
Having just approved a bunch of capex projects that the board levels of those businesses in the third quarter and now in the fourth quarter. We are seeing good healthy returns on new builds and most of those new builds as you know are anchored by at least one or two customers, but ultimately plug into specifically.
Into a metro area, where we're tapping into not only just one or two enterprises or one or two web skills, but multiple tendencies that can leverage that network at the same time.
Okay.
Onside kick. It also talks about developed market cell tower assets, how should we think about the pricing available and those assets seen some high prices out there, but all of your proprietary deals come into play maybe on that second bullet on me a like Apple on that one too.
Well look I think we continue to get the at bats, Jack.
Jackie and I actually looked at under road something last night in our spare time getting ready for earnings it's almost like sport for US we got to look at a tower deal last night, and we had two or three folks on the team working on it in tandem with what we're doing today with your but towers are in our DNA, we understand it we can underwrite it quickly uhm somebody came to us and.
Said they needed to sell some towers between now and the end of the year. We took a look at it it's probably gonna get priced into a zone, where you know it's not competitive for our balance sheet, but we are looking at those opportunities and as you know Rick pricing changes in towers, it's not static forever, there's ebbs and flows in terms of multiples and and we're M&A is priced and will.
Continue to keep shopping jackie's acumen and the tower space is incredibly strong he and I've been doing this for multiple decades and the tower sector and we do thank you know with the right stabilized opportunity came along.
We can put on our balance sheet, we would do it but right now to be honest and the and the hierarchy of things that we're seeing towers isn't certainly falling to the top of our list at the moment, we're seeing better yields and better returns and other verticals like Hyperscale Datacenters by example.
We're we're getting that current cash yield and we're getting the security of a long term lease and we're getting to the right returns that I think our public shareholders one.
Luckily for me.
That's the management side.
Think about the potential future or performance.
Performance coming into what you guys might get compensated for.
Thank you for asking that you're the first person that's asked that I actually feel really good about our performance fees.
We just got done with our quarterly reviews in terms of fun one in front to both the funds are performing in positive territory.
We absolutely anticipate strong performance fees and fun, one and we believe that fun too is also tracking in that same trajectory. If you look at the the marks of our investments and you dig into our numbers, you'll see that both of those funds are performing well and should track well into their performance fees, which you.
You are public shareholders get the benefit of it's not something we implicitly underwrite into our guidance.
It's kind of in the business as they say, it's something that is part of the futures and part of the the magic of what we've candidly Rick what I've been able to do for 27 years, which is rare.
Return capital back to shareholders.
Well above modeled returns, but most importantly, when there is incentive fees with my team I'm sharing that incentive fees with my management teams is you know Rick you've gotten to know a lot of my <unk>.
Top 20 to 30 officers that have worked with me over the last 30 years, they've all made an incredible amount of money because of those performance fees now here's the good news public shareholders get to be a part of my team if you're an owner of a digit red share of stock you get to participate in our carry you get to participate and Mark ANZ and teams management fees and or perform.
<unk> and look if you're if you're a student of cycles and you're a student of past performance, that's probably a pretty good place for you to be as a shareholder and I loved that alignment too I love being aligned with our common shareholders. When when we win in our private lp's when our public Lp's also went because you know we have a significant portion of our.
Our carry that goes back to public shareholders and like you can see the equity method earnings on our income statement and.
And you'll see how we're tracking too.
Certainly our underwriting, but also how're, marking our our businesses.
As well.
Size matters speed matter, but performance matters most.
Absolutely.
Alright so.
Thanks for asking.
Sorry about that thank you. Our next question is coming from the line of Sammy Battery with Credit Suisse. Please proceed with your questions.
Hi, Thank you for fitting me in so I want to tell you right in the head.
A good good.
I wanted to address something very speculative in the market and I just wanted to do and make some.
Digital bridge indulgent references and maybe I could get a little bit more of a constructive response from you guys. On this so you have clearly demonstrated that you can deploy multiple forms of capital funding for transactions, you have financing and equity and JV partners all lined up.
And there is a fairly large publicly traded asset that sounds like it's up for sale now. The big question is the market right. Now has single asset facility cap rates compressing and then you have demonstrated you are very effective underwriting avs's against stabilized facilities, which means that.
If a big transaction with several moving pieces and a lot of financial engineering would be executed it fall under the digital bridge umbrella. The Big question I have for you guys is why not go for a big deal like that where you could really show the market your financial engineering process and just major capabilities that you've.
Been able to build over the last couple of years.
Sami. Thank you you should travel with us I I need a I need a varsity cheerleading squad.
But seriously we've done.
A lot of really big transactions I mean, there was a fantastic.
A case study in our ability to move quickly discreetly and most importantly to get it financed and get a closed on time and that it was done in 32 days, we did the vertical bridge transaction.
Multiples of billions of dollars there that transaction was done quickly and discreetly largest private tower transaction in U S history in terms of evaluation. So we're no stranger to big deals now when you. When you reference you know doing big deals, where there's a potential.
Opportunity to take a public story and bring it back to the private market side, certainly that's something where adept at doing and it's certainly.
Something we've contemplated doing across a variety of different logos not just limited to perhaps one different logo I think just seven in the last two weeks, we've been referenced into a public stories, where our name has been around it and so the.
The the headline here Sammy as we look at everything and we remain unconstrained in our ability to look at everything.
I'm from easy to complicated and some transactions you write are really complicated and we know there's there's one such transaction that we've been rumored to be around that's complicated and look I don't shy away from complicated and if it makes sense to our shareholders and it makes sense ultimately too.
To what we're trying to achieve in our I am platform. Uhm, then we will go for it and I don't think there's an opportunity out there that we would we would shy away from today and I think our history has demonstrated when there are big complex opportunities like this it's candidly, where we shine. So we'll keep looking at big things there are some really.
Interesting ideas out there some things are priced correctly, some things are not price correctly, and sometimes we can't get to an agreement with people on price, but we'll keep taken the swings and and certainly we're capable of of getting stuff done.
Got it thank you.
Maybe just a follow up question and almost like completely decoupled from the prior question, but would you say that this public equity company that is speculated to be taken out would that be considered a complex transaction or with this could be considered something a bit more straightforward, where a major private equity firm comes out and takes up a public.
More like a Blackstone QTS type situation.
Look I don't comment on ongoing discussions and situations, where we're around in public logo, it's just inappropriate.
And what I can tell you is you know once again.
Irrespective of the complication the underwriting has to make sense Tammy so when you're when you're involved in situations like this.
One thing that I've learned in 27 years of investing is you know, we'll do our own internal underwriting will underwrite the assets will underwrite the quality of the contracts the quality of the physical plant and then will underwrite the business case will underwrite the secular demand and will arrive at a price and we generally stay on that price we don't.
Move and.
And ultimately the target either moves to us or we move away from the target. It's just a simple way of investing it's worked for me for a long time I don't intend on breaking those rules and once again, if you're a digit red shareholder you should take a lot of solace in that that the web and underwriting assets and since the nineties in the early 2000 it hasn't changed.
And I will continue to be a disciplined allocator of our capital and people can I have a different view of value.
And people can I have a different view of complexity.
And by the way, there's not just one <unk>.
Opportunity for us to take a complex situation private there's multiple situations out there today globally that we see that require perhaps our capital M and our wisdom and our partnership that's the most important thing we liked partnering Sammy with management teams, we like working with people and helping them solve problems and when we find that there's a counterparty on this.
Side of the table, that's reasonable and wants our help those are situations, where we excel.
You also can't forget the human aspects of these transactions very important.
Got it thank you very much.
You're welcome.
There are no further questions at this time I'd like to turn the call back over to management closing remarks.
Well look thank you. Thank you all for your attention. Thanks for your time. Thanks for your support this has really been a tremendous quarter.
And I really want to thank my partner is Jackie and seven who have worked tirelessly to get us to this place.
We've had a lot of chance to reflect this week on our partnership with you our shareholders and I want to and and saying you know when I took the job with Jackie when we entered this <unk>.
Last year. The first thing we said we would do is be transparent with you and we would re earn your trust.
And we know that some of the trust had been fractured with the previous.
Story, and the previous leadership team and I'd like to say that I believe we've earned that trust now everything that we've told you. We would do we've done and that's really important in this day and age being really pickle impeccable with your word is something that Jackie and seven and I really believe in a lot and as we chart the path going forward and move into this acceleration.
Phase you can expect the same thing with us.
Walking down the road with you hand in hand as partners will continue to transform the business, we're going to continue to deliver outperformance and we're gonna work incredibly hard for Ya, it's been a tremendous tremendous year and we still actually have as Jackie reminds me, there's still almost another 60 days left in the ear for us to continue to do great things and that's what we're.
Doing every day here. So thank you for your trust, we really appreciate the dialogue with all of our shareholders and we look forward to getting together with you in the coming months and continuing to share our accelerated version of what the future of digital infrastructure looks like.
Thanks to everybody have a great weekend and we'll see you soon.
Thank you for your participation. This does conclude today's teleconference. You may disconnect. Your lines at this time have.
Have a great day.