Q3 2021 Global Medical REIT Inc Earnings Call
Thank you for standing by this is the conference operator, welcome to the global Medical REIT third quarter 2021 earnings Conference call.
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I would now like to turn the conference over to Steve Swett with ICR. Please go ahead Sir.
Thank you.
Everyone and welcome to global Medical REIT third quarter earnings conference call on the call today, we have Jeff Busch, Chief Executive Officer, Alfonzo, Leon Our Chief Investment Officer, Bob Kiernan, Chief Financial Officer.
Please note. These forward looking statements by the company on this conference call statements made on this call may include statements, which are not historical facts.
Forward looking.
The company intends. These forward looking statements to be covered by the safe Harbor provisions for forward looking statements contained in the private Securities Litigation Reform Act of 1995 and is making this statement for purpose of complying with those safe Harbor provisions.
Furthermore, actual results may differ materially from those described in forward looking statements and will be affected by a variety of risks and factors that are beyond the company's control, including without limitation those contained in the company's 10-K for the year ended December 31st 2020, and its other SEC filings.
<unk> assumes no obligation to update publicly any forward looking statements, whether as a result of new information future events or otherwise.
Additionally, on this call the company may refer to certain non-GAAP financial measures such as funds from operations.
Adjusted funds from operations <unk> and adjusted EBITDA.
You can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP numbers in the company's earnings release and in filings with the SEC.
Additional information may be found in the Investor Relations page of the company's website at Www Dot global Mark a week Dot com.
I'd now like to turn the call over to Jeff Busch, Chief Executive Officer of Global Medical REIT, Jeff.
Thank you Steve Good morning, and thank you for joining our third quarter 2021 earnings Conference call. Joining me today are alfonzo, Leon our Chief investment Officer, and Bob Kiernan, Our Chief Financial Officer.
During the third quarter, we produced strong and steady results, which again demonstrates the importance of our strategic focus as well as our team's ability to consistently execute at high level with respect to earnings in the third quarter.
Net income attributable to common shareholders was six cents per share and our F. F. O was 23 cents per share and unit.
We grew our <unk>.
<unk> per share and unit to 24 cents in the third quarter and year to date, our E. F. F. O at 71 cents per share and unit is up 9.2% compared to last year.
At the fortifying our balance sheet and liquidity in the second quarter, we continued to identify and close target acquisitions that meet our quality standards and return hurdles in the third quarter, we acquired five properties for $49 million.
Bringing our year to date acquisition volume to one.
100 <unk>.
$63 million at 7.5% cap rate.
Alfonzo will provide more details later on this call, but I want to note that our portfolio is now over one 3 billion in total assets.
And we now surpass 100 million in total annualized.
Base rent.
Our properties I am proud of these accomplishments and believe we have a meaningful opportunity to grow accretively into the future with that I'd like to turn the call over to alfonzo discuss our acquisition activity in more detail.
Thanks, Jess due in part to the outperformance of medical facilities during a pandemic and optimism in the long term fundamentals of health care.
The market for medical facilities has been competitive this year.
Despite increased competition, we continue to successfully source attractive properties within our target cap rate range to build a diversified portfolio leased to strong health care operators, providing needed care to their communities.
During the third quarter, we closed on five acquisitions totaling $49 3 million at a weighted average cap rate of seven 6%, including.
And outpatient clinic, an imaging center located in.
Illinois for $19 2 million with approximately 10 years of remaining lease term.
Decatur Memorial Hospital now part of the a one rated memorial health systems accounts for 95% of the property revenue.
Yeah.
At cancer infusion and imaging center in North Charleston, South Carolina for $7 million entering into a new 15 year lease for 100% of the property with Charleston oncology.
The tenant is the largest independent oncology group in the area with 11 in colleges.
91% of an MLP condominium and Munster, Indiana for $6 6 million upon closing, we assumed five leases and executed three new leases.
Listing tenants with a weighted average remaining lease term of approximately seven years.
Property, which is anchored by Midwest fine with 41% of the total.
Okay across the street from a 458 bed regional hospital owned by CHS.
A multi tenant MLB and highly of Florida.
And the sellers interest in an existing ground lease for a total purchase price of $11 3 million.
The MLP is on campus and attached to the 378 bed Hialeah Hospital, which is now part of Steward health care.
And lastly, and then it'll be in Athens, Georgia for $5 3 million the property is 100% occupied.
Tiedemann Athens regional medical center for use by their pediatric specialists.
The acquisition the in place lease had a remaining lease term of approximately three years.
Year to date, we have closed 60 acquisitions.
163 million at a weighted average cap rate of seven 5%.
And at September 32021, we had a $1 3 billion portfolio with properties in 33 states.
Our focus on acquiring individual assets has benefited us tremendously as most other investors focused on acquiring larger portfolios as.
As we continue to grow we will leverage our relationships and network to continue to source and secure deals.
That and we maintain an active pipeline of potential opportunities in different stages of discussions and currently have three properties with an aggregate purchase price of approximately 24 million under contract.
These properties are currently in due diligence and subject to customary closing conditions.
Looking ahead to the remainder of the year, we believe that we may close on $15 million to $30 million of acquisitions by year end.
Since quarter end, we sold one property for gross proceeds of $5 5 million, resulting in a gain of approximately $1 1 million.
And have entered into a contract to sell another property in Bellevue, Ohio.
Gross proceeds of approximately $44 6 million.
The <unk> transaction is subject to.
The due diligence and customary closing conditions and is expected to close no earlier than March 2022.
Although we don't actively look to sell our properties based on market conditions, we may sell properties for various strategic or opportunistic reasons.
I'd like to now turn the call over to Bob to discuss our financial results Bob.
Thank you Alfonso.
<unk> continues to benefit from a stable platform and from a strong and reliable relationships that we have built with our tenants. This.
This quarter our portfolio produced strong results and we are confident that we can continue to produce strong results through year end with respect to key performance metrics. We ended the quarter with $4 2 million of lease with total leasable square feet portfolio occupancy of 98, 9% a weighted average lease term of seven three years and a rent cut.
Ratio of four six times with two 1% weighted average contractual rent escalations in.
In the third quarter, we achieved a 19, 6% year over year increase in rental revenues to $30 million driven primarily by our acquisition activity over the past year as well as rent Escalations rent collections remained strong overall, we collected over 99% Q3 rent, including the impact of two tenants will be accounted for in our cash.
Basis.
Total expenses for the third quarter of 2021 were $24 6 million compared to $34 7 million in the third quarter of 2020.
Net of the impact of $12 6 million of expenses related to the management internalization transaction that we incurred in the third quarter of 2020 expenses were up 11, 4%, primarily due to increased depreciation and amortization expense driven by acquisitions completed over the past 12 months.
G&A expenses.
For the third quarter of 2021 were $3 9 million compared to 4 million for the third quarter of 2020 within our G&A expenses note that our stock compensation costs in the quarter were $1 2 million and our cash G&A costs were $2 6 million looking ahead, we expect our G&A expenses to be modestly above this level.
Range between four and $4 3 million on a quarterly basis, even as we increase the size of our portfolio.
Net income attributable to common stockholders for the third quarter of 2021 was $3 7 million or <unk> <unk> per share as compared to a loss of $10 3 million or 22 cents per share in the third quarter of 2020.
<unk> in the third quarter.
With 23 cents per share and unit compared to negative three cents per share in units in the third quarter of 2020 as my phone for the third quarter was 24 cents per share in unit up from 23 cents per share and unit in the prior year quarter and analyzing these year over year comparison. Please remember that our net income attributable to common stockholders in.
So the third quarter of 2020 reflect the effects of our management internalization transaction.
Moving onto the balance sheet as of September 32021, our gross investment in real estate was approximately $1 3 billion, which is up $169 million or 15% from the start of the year at September 32021, we had just under $555 million of net debt and our leverage ratio was 43%.
Up slightly from the prior quarter, but down meaningfully from 52% at year end 2020.
Our weighted average interest rate during the quarter was three 4% and our current unutilized borrowing capacity on the revolver is approximately $240 million.
Overall, we continue to believe we are well positioned to execute on our acquisition and overall business strategy and look forward to sharing our progress with you when we report full year results.
This concludes our prepared remarks, operator, please open the call for questions.
Thank you we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone and knowledge in your request.
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We will pause for a moment as callers join the queue.
Our first question is from Barry, Oxford with Cold Yes. Please go ahead.
Great. Thanks, guys.
You guys mentioned that you're seeing increased.
Competition for assets is it more of the same types of investors or are you seeing new investors sort of come into the market, creating even.
Even more competition than there has been like let's say at the beginning of the year.
Oh sure so.
There's.
There is increased competition and there are more investors that have come in I think most notably.
Has been the entry into this space by large institutional capital like Nuveen.
And others that I've really hum are.
Found.
Medical office properties to be something that they want to invest in in a meaningful way. So yes. There is there's been an increase in the number of investors in.
Over the last 18 months.
Perfect Perfect and then as I'm looking forward, not where cap rates war.
We're kind of right now, but looking forward do you feel that you're going to have some cap rate compression is on acquisitions over over the next year as we go into 'twenty two.
Sure so as we've grown our portfolio and executed on our strategy our cost of capital has improved.
We always are focused on investing our capital Accretively.
And we've built a pretty strong niche finding opportunities in secondary and tertiary markets and the southern cap range. So it's a spread allows us to selectively look for opportunities in the south southern cap range.
And our goal is to continue growing our portfolio accretively.
Right exactly exactly and then last question kind of on the same.
Lines, when you're looking at acquisitions in the different property types that you guys like to invest in is there one.
In particular that has better risk return characteristics right now or.
Is it just more kind of look.
Different markets different run off opportunities.
So.
I would say right now surgery centers.
Just given the way health care has evolved and on the other side of 2020.
Surgery centers definitely seems to be a good place to allocate capital.
And I would and one of the things that we're looking to do and having discussions just to try to find.
Find ways to invest capital in them numerous surgery centers. So we're talking to.
Tenants and developers that are looking to build new surgery centers.
Perfect appreciate the color guys. Thanks.
Yeah.
Yeah.
Our next question is from a man does Pfizer with Baird. Please go ahead.
Thanks, Good morning.
Good morning, Arent on your announced asset sale can you just provide more detail on your thoughts. This time that was cheap gel specifically as well as expected pricing.
Okay.
Basically.
These sales both of them came to us, but it was it was like Oh go through Bell Creek well.
So it was more for it was a great price that they were paying with a substantial.
Profit for us.
Two it was to reduce the concentration in the top 10.
Of our facilities, so basically belt free which is a small place, but really good assay and we still have asked that in bell free, but we decided to reduce it substantially to reduce the concentration in a smaller location as an overall portfolio of work.
And it wasn't bad could take a profit and roll it into other assets that we have that the cap rate. So we sold that are you know at a low cap rate and we reinvest at a much better cap rate plus we reduced the concentration that so we thought it was good we still are very favorable about free but we wanted.
To reduce the concentration in that sort of small metro.
To not be in our top not not as high in our top 10.
And the press call Okay.
Prescott one is essentially a small operator had somebody buying them out who wanted to buy the building where they wouldn't buy them out. So if we didnt go along with the deal that made US a million dollars. We may have had a difficult time with the tenants going forward.
And we Weren.
No. It was it was a good you know opportunistic to make basically.
A million dollars on a small property and move it onto another property.
Going forward that may would fail.
Going forward with sales, we're always looking I mean people are offering us a you know out there and it's a pretty good market to sell and right. Now. So you know if there are opportunities for us to sell in you know bring our portfolio more the way, we would like but looking at it right.
Our whole portfolio as an individual so we buy sort of individually, but we look at it as a whole portfolio at once and if we need to make some corrections on our portfolio or others. We may do that in the future.
Okay that makes sense and then as you think about it.
The volume of acquisitions that you could complete next year with these sales.
In place do you expect your acquisition volume to exceed kind of that 225 historical average you've achieved.
It's hard to tell that it's the honest I mean, we're and we're starting to look with a different you know we have our strategy of doing you know the seven plus which again was very successful this year, but since our stock has gone up our cost of capital.
Substantially has come down we're starting to look at larger volume as opposed to just doing these fives tens and fifteens sometimes of 'twenty.
We're starting to look at larger projects and maybe but those will be smaller task more in that mid six range, but since it's so accretive as opposed to being possibly.
No.
You know it just very accretive for US. It also grows are you sized. It grows you know it starts to get us to compress where I think we are under valued because of size and liquidity in the market. It starts to get US. There. So we are looking at larger projects with less cap rate you can't find.
80, 100 million dollar projects in the sevens that make a lot of sense, sometimes we do but you don't get that many.
Yeah. That's helpful. And then last one for me you've commented on prior calls that you historically see stronger transaction volume between kind of the September to December time period have you seen that volume come to the market or is it more a function of being disciplined on pricing.
Uh huh.
Hard to say I mean, I would say it and big picture, yes. It this year and it's going to be very busy and I think when.
When the data comes in and the deals get closed I think youre going to see a market wise it's.
A number similar to the last several years.
There's been this.
This year has been notable with a number of portfolios that have.
Come to market and then our or we're.
Getting closed.
And so I you know I don't think this yearend is gonna be different than others. So it's gonna be pretty busy.
That's helpful. Thanks Al.
Our next question is from Jordan Sadler Saddler with Keybanc capital markets. Please go ahead.
Thank you and good morning.
Good morning, I wanted to morning, I wanted to just touch base on the acquisition guidance for the full year I think.
Oh I'm, sorry, you mentioned another 15 to 30.
By year end.
And if so does that sort of is it 15 to 30 plus the 163.
Year to date is that does that put us kind of in the lower half of the original range for full year guidance.
And up into the 175 to 200 range and get the right way to think about it.
Yeah, I mean, that's that's how we.
Framed it correct yes.
Okay.
And you would said and commented I think on the last call and more recently than just volumes.
The.
The market was sort of moving at a frenetic pace you know I think you talked about volumes being up 50, 60 70 per cent.
In terms of transactions and so they're just sort of clarifying it it's.
The competition is there is there sort of increased competition around those assets as well, there's a lot coming to market, but there are a lot more competition. These assets are just harder to close or is it just not the stuff that you guys are looking for.
You know historically the.
The bulk of the market.
Is that is traded.
At a cap rate, that's lower than what makes sense for us.
So you know it hasn't.
Like in 2021 that has.
Gotten more competitive for us slightly but I mean, historically, it's always the bulk of the market has always traded at a lower cap rate.
What what I would say has happened this year is yes.
Yes, there's been more investors that have come in.
Not just large investors, but also smaller ones as well.
There's a lot of funds that have been started and has really made the segment of the market that is looking for.
Call it low to mid five caps very very competitive.
And when I talk to people I mean, it it definitely.
It's become a very very Ah at that that part of the market has become very competitive.
And you know, but you know what that's done is it's really added competition across the you can call it the cap rate yield curve.
So in our segment as well, it's gotten more competitive but you know we've.
Built a very good track record and have as continued finding deals.
And we're leveraging the fact that we've got a very good process and a very good team that get these deals done.
Efficiently and are you now.
And the most frictionless way possible.
But you know what we've always had a focus on us investing our capital Accretively as we can and you know we're always looking to balance them.
Opportunities in the market with.
What we're trying to do as a company and our and trying to grow this company as prudently as we can but you know in short I'd say look it's definitely gotten competitive.
But.
You know our company has gotten bigger our cost of capital has gone down and we have more resources and we've got a good track record.
We have more range of motion.
And you know where where you know you still are finding a good investment opportunities.
We're having a lot of conversations with them.
Our relationships our tenant base.
We have a pretty good pipeline.
The activity and you know well.
We'll continue doing what we have in the past which is.
<unk> continue to grow our portfolio in the best way we can.
That's helpful. And then I just wanted to circle back to Bell free.
Hum.
Right.
Yeah, I think I got the logistics of how that came about.
But did you guys mentioned pricing valuation, maybe maybe sort of the expected IRR.
Bob do you want to give them.
Yeah sure. So I think it's a what can work caf cafe exit cap rate.
Sorry, I didn't get broken up.
No I was just saying maybe the exit cap rate. If you don't want to be out of our handy yeah. Yeah, six 2% I think is the exit cap rate.
Pairs to.
We set our basis in the property is just under understood.
And just this one building, it's just under 30 million so called.
Call it $15 million gain against against that.
Okay.
Could return.
And then not only.
I just wanted to so I can say.
The the return was important to us we calculate it out the reinvestment of the money was good for US all of those types of things, but it also to move the sort of and often not big market or meet you know, it's really small of a market that was doing really well the main center for them.
What a while and we still have an asset there, but not have so much concentration in there was attractive to us that was actually probably the number one reason.
Yeah.
Okay.
Hum.
And then.
The progress on Marina towers, any update there or maybe even.
The other couple of assets that you're.
Youre working towards bottling.
Yes sure George.
You know again.
Joining me to work with the tenants as they progress through their brain bankruptcy and it's it's a it's a slower process.
As they work through.
Their own issues.
The update from a financial perspective is that we did receive the.
The Q3 numbers include about $400000 from the tenants and we've received.
80000 or so.
So far in the fourth quarter.
But it's there's just uncertainty related to how they're emerging from bankruptcy and it's you know there's a lot of back and forth that can go on and that's growing that goes on in that process, it's difficult to say, specifically, how they're going to they're going to perform I think what we're doing from a strategy perspective as you know we're we're reclaiming the building you know the portion.
As you know as we can and are looking at actively.
Working with prospective tenants to two two.
To fill that space and has gotten strong interest in the space as well. So you know I think that's kind of part of the process. As we are here in Q4 and into into Q1 two.
Work with them as they if they emerge and try to.
We don't monetize the most that we can out of it and at the same time I.
Look to add new tenants into the facility and that that's that's going well I mean, I think that we're long term optimistic about how we how.
We are at those tenants into the space.
So just to clarify they they affirmed the original lease or are they downsizing.
Yeah, they're they're downsizing.
From from from from where they were.
And and while they did you know affirmed the original lease what we talked about previously, but they weren't really they weren't performing under that that affirmation and and so.
Is that process continued.
It evolved and so we're looking to.
Additional arrangement that maintains our rights as well as.
Our ability to.
Collect on the on the yeah.
I'm at least that exist that they have and then also to bring in the new tenants to our to the building and say.
They can.
Also their strategy from their bankruptcy.
Okay. Thank you for the color.
Yeah.
Our next question is from Juan Sanabria with BMO capital markets. Please go ahead.
Hi, Good morning, I was just hoping you could maybe talk a little bit more about.
The acquisition of volumes and strategies.
Can you kind of seem to be shifting here the volumes, maybe felt short of expectations for some of the smaller <unk>.
Order yielding assets.
You seem to be kind of.
Hinting that you're you're moving.
Up the quality curve towards bigger assets with lower cap rates, but.
But I would think that those are even more competitive and harder to find so I'm just.
A little confused as to.
The trend going on but.
Let me talk about it a little bit.
Good to talk to you.
We have a solid business its more competitive than it used to be in a in the secondary markets.
But we we do find our niche.
And you know, we we do find our niche and in this type of market. You know, we think we really did quite well getting a 7.5 cap them. We've been very sort of strict on where we are there are opportunities we find in our niche of the market.
That could be bigger that are not necessarily attracting the quick money or the the.
The big money.
And.
So so we're opening up our.
Look so our main look right now.
This has all to do with the cost of capital coming down substantially.
So you know at one point, our cost of capital really was like almost a point and a half 150 basis points above where we are now and we were buying in the mid Sevens and now where it is right now.
We we are taking a look at larger.
<unk> assets that.
Our instilled the secondary markets or the suburbs of the primary markets that don't attract unnecessarily attention of the big guys.
What are some possibly because we have not bought those but are possibly lower caps in the mid sixes or so, but we're still looking to average into the sevens. So I looked at it as more of an average, but it could add to our volume a year ago, we made.
And two years ago, we made some choices to try to move up our volume by going into the multiple tenant area and the multiple tenant area has really been a godsend. This year because we're finding more of those it is a much more competitive market right. Now there is a lot more money out there.
So we are just managing where we are right now in reality is you know you get more we do have.
You know assets that we look at that used to be 100% ours that somebody else bids some people bid without even visiting or looking at it.
In this sort of I consider it a bubble when they start to buy things without really even carrying what it is.
Or spending any due diligence time. So you know we're going to work through that market, but I have in mind right. Now I also want to go for some size because we get some advantages on our cost of debt and also compressing the price of the stock giving more volume in.
Others.
We get some advantages with size.
And we're very accretive also in the mid sixes, if we could pick up a I'll just give an example of 100 million dollar project with multiple buildings or something in our type of market in the mid sixes, where the people are not doing in the seventh or anything. So we are looking at that I'm, not saying, we're going to find that.
Out there, but where we're actually trying to find other ways to increase the amount that is much more competitive than it was a year or two years ago.
Okay. That's helpful and then my dad.
Just following up on a.
Guess I'm. Prior questions is is the I guess shortfalls I'm not sure. If that's the right word to use relative to the rich not.
Not in guidance.
Is it just a timing issue there or are you because you seem to be talking about a good pipeline are you should we expect more deals in the second.
Second or first half of 'twenty, two that maybe it spilled over from the first year that they could see a good start to 'twenty two or is that not necessarily the case.
Well I mean, so every quarter.
Yeah, No every quarter.
The volume.
Yeah.
Quarter, Youre going to see a lot of volatility in terms of volume and I mean, it's not the first time we've had.
A large quarters, followed by a quarters that are more quiet. So I would say in general yes, I mean.
Yeah, it's hard to have a consistent number every quarter I guess said another way like.
Some quarters are less and some quarters are more and it's unpredictable.
Paul.
We try to have a larger pipeline as we can at all times and we always have a lot of conversations and.
Sometimes.
Your you know your.
Some things work out and some things don't and it's not in our control.
And you know part of what we have to do is stay disciplined and have kind of firm convictions around valuations and what that means sometimes as you know we don't get the deals that we're chasing them and sometimes we do so it's inherently unpredictable.
And you know.
So some quarters are more than others and that's you know that's just the way the market works.
Understood and then just for my support for me should we think of any other markets out there that you may want to exit or prune.
As it relates to some of the dispositions.
You noted in the press release.
I'm not sure I have anything.
Oh go ahead go ahead.
Yeah, No I think I mean part of it how we tried to frame it in the prepared remarks as you know we're.
But you know the sales that we've done thus far have been opportunistic.
And it's been a.
A case by case and there've been compelling reasons to sell them. So you know that continues to be how we're looking at dispositions is it.
Cause very selectively very strategically.
So in a case by case.
Thank you.
Once again, if you have a question. Please press Star then one on your telephone.
Our next question is from Bryan Maher with B Riley Securities. Please go ahead.
Yes. Good morning, most of my questions have been asked and answered but the two that I have your last one kind of housekeeping one bigger picture on the housekeeping, Brian I noticed you guys didn't use the ATM in the third quarter just want to make sure that that's still.
Still in place and what the availability is there.
Yeah, Brian it's still in place and there's 20.
$23 million expense, that's still left on the current ATM.
Okay, Great and then kind of a big picture.
Yeah Big Picture question. Your Bloomberg ran an article I think it was on Tuesday about Fresno medical care.
Planning to cut 5000 employees are basically based upon you know patient deaths related to Covid impact on dialysis patients are you seeing anything out in the marketplace that gives you pause as it relates to <unk> impact on this industry.
Kind of aside from what we saw last year with you know kind of tenant stress.
We have not.
You know where are you.
One of the ways of being in this business for a long time collecting rents you start seeing it in the delay of branch and other things that has not happened to us in the industry are our niche in the industry themes.
Seems to not be that affected also the main strategy, we have which is a coverage ratio that they have to be making a good amount of money and not buying those that are just you know two to one or two and a half to one but trying to stay at an average you know for four to five.
Coverage ratio, so they're all profitable.
It is very important and a general strategy for if they have tough times, they're not ready to cut so much.
We don't see that happening in our our portfolio.
You can see that happening in certain types of portfolios.
Out there, but not really what we buy.
Okay, and then kind of drawing on some of the questions earlier.
And your answers related to kind of going you know bigger asset maybe down cap rate a little bit versus going higher cap rate you know down market you know more secondary more tertiary kind of like community Healthcare Trust. It seems like you know the competitive nature of the lower cap rate you know buyers out there.
And what we saw with community Health care Trust their acquisition pace really kind of slowing.
Does that alfonzo maybe.
Lead you to reassess.
Reassess your ability to make acquisitions in size, you know north of two or $300 million in a year.
Cause you know kind of pressure on both ends or do you remain confident you can kind of do you know maybe 200, plus you know in 2000 22023.
Yes.
So yes, our our what we've always tried to do is a couple of hundred million 200 million per year.
And you know that that's that's the target that we've been striving for and and continue to strive for so you know we've done a very good job of.
Balancing capital markets with the real estate market I always keep in mind that.
For the quarter it it's it's hard to know.
The market.
Evolves quarter by quarter end.
You know there are seasonality to it.
And you know so it's hard to really.
Have.
It's really hard to kind of predict kind of where things are going to be a in a year or two and but I would say that you know where we've done a very good job of.
Leveraging our resources and.
Our range basically yeah.
Managing our resources and finding opportunities and leveraging our relationships to continue to find deals.
Now going forward I mean that that continues to be our target and one that we feel pretty good about the reaching.
Okay. Thank you very much.
Yeah.
This concludes the question and answer session I would like to turn the conference back over to Jeff Busch for any closing remarks.
Well I like to thank everybody.
We had a great quarter are we expect to have a great year in 2022, and thank you very much.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Okay.
Hmm.
[music].