Q3 2021 Ares Commercial Real Estate Corp Earnings Call
Good afternoon, and welcome to Ares commercial real estate Corporation's conference call to discuss the company's third quarter 2021 financial results.
As a reminder, this conference call is being recorded on November 3rd 2021, I will now turn the call over to Veronica Mayer from Investor Relations.
Good afternoon, and thank you for joining us on today's conference call I'm joined today by our CEO Bryan Donohoe, Piecyk Yoon, our CFO and Carl Drake head of public company Investor Relations.
Addition to our press release and the 10-Q that we filed with the STC. We have posted an earnings presentation under the Investor resources section of our website at Www Dot Aries C. R E Dot com.
While we begin I want to remind everyone that comments made during the course of this conference call and webcast and the accompanying documents contain forward looking statements and are subject to risks and uncertainties.
Any of these forward looking statements can be identified by the use of words, such as anticipates believes expects intends will should may and similar expressions. These forward looking statements are based on management's current expectations of market conditions and management's judgment. These statements are not guarantees of future performance condition or results and involve.
A number of risks and uncertainties.
The company's actual results could differ materially from those expressed in the forward looking statements as a result of a number of factors, including those listed in its SEC filings areas.
Ares commercial real estate Corporation assumes no obligation to update any such forward looking statements.
During this conference call, we will refer to certain non-GAAP financial measures. We use these as measures of operating performance and these measures should not be considered in isolation from or as a substitute for measures prepared in accordance with generally accepted accounting principles. These measures may not be comparable to like titled measures used by other companies now.
Now I would like to turn the call over to our CEO Bryan Donohoe.
Thanks, and good afternoon, everyone.
This morning, we reported another quarter of strong and stable results with distributable earnings of 37 per share continuing to fully cover our regular and supplemental dividends.
We originated $485 million in new commitments during the quarter, bringing our total year to date originations to $1 billion.
And the first nine months of the year, we have already surpassed our previous yearly record of 955 million.
At quarter end, the portfolio was $2 4 billion up 33% year over year with portfolio growth in all four quarters.
While we are seeing a surge in commercial real estate activity and improving fundamentals.
Our originations momentum also reflects the growing presence of the broader Ares real estate platform.
The Ares real estate group now stands at $36 5 billion in global assets under management with approximately 200 investment professionals and 17 offices, including Aries acquisition of the Black Creek group.
We are a constant presence in the market continuously buying selling borrowing and lending against high quality real estate throughout the top msas in the U S and Europe.
There are numerous benefits to this first and foremost is the depth of our relationships that we maintain in our target markets, which helped us drive value in our investment universe.
When you combine our relationships and the opportunities generated with the data information and experience within the Ares platform. The result is a broad funnel and a very selective investment process.
For example, we are pursuing more investments in the industrial and industrial logistics sectors, which align with the activity and conviction of the broader Ares platform.
As of quarter end, the Ares real estate platform owns over 200, industrial investments and approximately 145 million square feet of industrial space.
Acre has the opportunity to benefit from this in house product expertise, which allows us to lend earlier in the lifecycle of an industrial asset.
As our debt platform also continues to scale currently standing at 9 billion AUM across all our vehicles, we have been uneven we have become an even more attractive partner to the highest quality institutional sponsors.
This quarter, we had an almost even split between repeat sponsor business and new sponsors.
Our incumbent borrowers appreciate the reliability and efficiency of our execution and these relationships enable us to make new commitments with attractive risk return profiles.
We are also pleased to have provided financing to new relationships this quarter.
Our new relationships are with well established sponsors like shorenstein and Northwood that have come to appreciate that we can provide a broader array of capital solutions.
We continue to efficiently deploy the capital that is available to us including fully deploying the capital from our June equity offering at a consistent weighted average ROE in the low double digits in.
In the third quarter, we originated three loans for 282 million secured by class a LEED gold certified office properties with desirable amenities, reflecting the relative value that we are currently seeing in certain assets.
These loans are in our target markets, which include regions with strong demographic growth engines like e-commerce and technology or linked to national universities.
All of these bonds were for new acquisitions at post Covid valuations to well established institutional sponsors with strong track records.
Our robust activity is continuing into the fourth quarter with a deep pipeline of diversified loans.
As a result, we expect to remain fully deployed through year end, which should support our earnings.
Our originations pipeline reflects the relative value that we are finding across the spectrum.
From larger loans with top sponsors to efficiently partnering with nimble sponsors on portfolios of loans in thematic investments, where the macro tailwind are significant.
Good examples of these loans would be self storage and industrial related assets.
While continuing to target opportunities in the Sun belt and states benefiting from tax migration.
We are seeing opportunities in gateway cities, where values in certain sectors have reset lower.
These cities are now attracting strong capital positions out of the equity side and given our limited exposure to these areas pre COVID-19, we can provide moderate leverage at these reset values at attractive targeted returns.
Our loan book continues to be well positioned with approximately 98% invested in senior floating rate loans and approximately two thirds of our loans collateralized by multifamily office industrial and self storage properties.
We continue to be underweight hotels and retail exposures.
And the credit quality of our portfolio remains stable.
Before I turn the call over to chase to discuss our financials in further detail I want to note that we declared a regular 33 cent per share quarterly dividend and our two cents per share supplemental dividend in the fourth quarter.
We expect to more than fully covered both our regular and supplemental dividends from our distributable earnings for the full year 2021.
With that I'll now turn it over to Tae sik.
Great. Thank you, Brian and good afternoon, everyone earlier today, we reported GAAP net income of $10 million or 21 per common share in distributable earnings of $17 5 million or <unk> 37 per common share.
This brings our total distributable earnings for the first nine months of the year to $1 14 per common share well in excess of $1.05 per common share that we have paid in dividends for the comparable period, including six six per common share in supplemental dividends.
Our earnings this quarter benefited from strong momentum in originations accompanied by sub due to prepayment activity, which resulted in a record portfolio of $2 4 billion in loans held for investment at quarter end.
In addition, we continue to benefit from LIBOR floors, which had a weighted average rate of 1.17% at quarter end.
Our leverage remains modest with a debt to equity ratio of 2.5 as of the end of the third quarter, excluding seasonal reserve.
Our CSO reserve was at $24 5 million at the end of the third quarter.
A net increase of $6 4 million from the previous quarter.
The $6 4 million net increase in seasonal was primarily due to recognizing initial reserves against the $485 million in new loan commitments for the quarter as well as extending the expected maturities of a few loans.
As a reminder, changes in seasonal reserve does impact our GAAP net income with a net $6 4 million change this quarter, representing approximately 13 cents per diluted common share.
Changes in seats of reserve. However are added back from GAAP net income as part of calculating our distributable earnings.
We had no material changes to our overall portfolio wide risk ratings with our weighted average portfolio risk rating remaining at 2.8.
With 92% of the loan portfolio right at a three or better on a five point scale.
And similar to past quarters, approximately 97% of our loans made a contractual debt service payments for the third quarter.
We did however at a second loan this quarter to non accrual status.
It is a small $14 million senior loan backed by a residential property located in Los Angeles.
Despite its non accrual status. However, we believe that the loan is protected through sufficient collateral values and have not taken an impairment on this loan.
Together with the one other senior loan backed by hotel property outside Chicago.
The total balance of the two nonaccrual loans represent less than 2% of our overall total portfolio.
Finally, before I turn the call back over to Brian Let me touch upon a question that we have been recently asked from several shareholders about.
The impact of potential higher interest rates on our earnings.
As we have discussed previously we believe materially higher short term rates will positively impact our distributable earnings as the vast majority of our loans pay us interest based on LIBOR.
While the majority of our loans have LIBOR floors that are currently in the money or most recently originated loans, particularly those in 2021 do not have significant LIBOR floors, and we'll benefit from material increases in short term rates.
At the same time early this year, we had a significant portion of our floating rate liabilities. So that increases in LIBOR won't have a basis point by basis point increase in our funding costs.
So with that let me turn the call back over to Brian for some closing remarks.
Great. Thanks, so much tae sik.
In summary acre delivered another strong quarter of stable distributable earnings.
The portfolio was at a record $2 4 billion.
Our origination activity is at record levels, and we continue to find opportunities to achieve consistent all in yields.
It's what we believe are higher quality assets than available to us pre COVID-19.
We have the opportunity to continue to optimize our balance sheet efficiency, and we are well positioned to benefit from a rising interest rate environment.
With that I'll ask the operator, please open the line for questions.
At this time, if you would like to ask a question. Please press Star then one on your Touchtone phone.
If you would like to withdraw your question. Please press Star then two.
The first question will be from Doug Harter of Credit Suisse. Please go ahead.
Oh, Thanks just.
Wanted to get your thoughts around around the leverage going forward, you know two and a half times seems relatively conservative versus some of.
Your peers, but you kind of commented that you were kind of relatively fully deployed in terms of capital. So I'm just kind of wanted to get your thoughts on leverage.
Sure Doug This is Casey. Thank you very much for your question no Youre absolutely right you know our long term targeted leverage rate for our company is three point O.
And obviously prior to the pandemic does with the type of levels that we were able to maintain.
During the pandemic, we obviously emphasized liquidity and so took our leverage down as low as the low twos and we have been building up from there. Fortunately, we have been able to more than maintain our earnings more than able to cover our cover our dividend with lower levels of leverage.
But it is our intent it is our goal to take it up to approximately three point out on a longer term basis, some periods, you'll be lower than that some periods will be slightly higher than that.
But we do think it'll be hovering right around three point now, which really means you know versus September 30th 2021 that we have about half a turn of leverage which is around 350 million of additional capacity.
Do you want to put onto the balance sheet largely in the form of debt capital to get us to that three O 300 leverage ratio.
Yeah, just I guess just to be clear on that I mean, I guess are are you comfortable in today's environment kind of getting up to the three point O level versus kind of the conservatism you've shown in the post Covid world.
<unk>.
Yeah.
Brian has begun as well in terms of the credit quality, but certainly.
One of the things that we've always always have emphasize is that not all debt is treated equal. So for example, when we lever our loans are using CLO debt collateralized loan obligation that we.
So we feel very comfortable actually taking it above three point out when in fact, the two CLO that we have today.
Closer to four to one debt to equity leverage ratios and that is because of the type of assets that are included in those CLO as well as the type of debt being non mark to market being match funded.
It really gives us more comfort to take on more leverage than the average 3.1 on the other hand, when we're leveraging a loan by loan using some of our warehouse lines. Other forms of financing oftentimes, we will be below three point out. So I think really to answer your question. It is more of a loan by loan.
Financing by financing.
Decision in terms of risk and reward.
But yes, I would say Brian will comment further, but I would say we are comfortable given the type of quality assets that we have today in the overall balance sheet today. The fact that we have almost 60% of our liabilities in the form of nonrecourse match funded debt that we are comfortable at that three 300 level and.
I would just add Doug I think this is more of a timing issue more win than in F. I think.
There's ample liquidity in the space today, and being a part of the Ares platform and reduced borrowing costs that come alongside that.
We think this will be something that will add further results over the next couple of weeks and months.
Great. Thank you.
Thank you Doug.
The next question is from Stephen laws with Raymond James.
Hi.
It seems like I guess first the comment on the the Oreo asset revenue was up looks like you know margins are profitable.
<unk> has increased over the last few quarters can you can you talk about the outlook there as well as the seasonality, we should think about them that ASUR.
Sure No absolutely Steven I think COVID-19 much for your question Yeah, No I think our hotel our we're very pleased with its performance.
Clearly it was impacted just like I think almost every other hotel during COVID-19.
Do think a couple of things that have benefited us one is.
Some of the competition in the immediate area have either shut down permanently or on a temporary basis and have left a fewer competitors fewer choices and we've also been very much benefiting from a focus that we've had.
To put in.
Some some necessity workers.
They've been a very strong user and we're very grateful for that.
But we are very much focused on group business and and.
That has created a lot of tailwind for us.
I think it is that we've we've always mentioned that we.
We have very strong asset management capabilities. This is not something we outsource to a third party servicing companies or is it not something that we deferred to someone else. This is something that we have in house as part of our asset management business.
Real estate asset management business here at Ares and so we actively manage this hotel throughout throughout Covid to make sure we're optimizing both revenues and expenses and so on the expense side. In particular, you know we have really been running this hotel quite efficiently.
In terms of the type of amenities the type of services, we absolutely want to provide our guests as many amenities and services as possible, but at the same time being very judicious about costs and expenses. So you can see that operating costs are variable with revenues, but that we're able to maintain a positive operating margin.
And what we're seeing is that as travel comes back and especially as business travel comes back we're starting to see more and more pickup in activity and seasonally as you mentioned fourth quarter is a pretty good quarter generally.
We always find that first quarter is generally the heart is coming out of winter. If it is northeast corridor, but fourth quarter tends to be a pretty positive quarter.
We expect the hotel to continue to show improvement in performance.
Great I appreciate the color Tae sik.
So your question, Brian can you talk a little more about office.
A majority of your three key originations were collateralized by office assets.
Can you talk about what Youre seeing there why are you guys believe that's the most attractive risk reward to deploy capital today and kind of your outlook for that asset class over the coming quarters.
Yes, absolutely I think we found some unique opportunities again, given our clean allocation to some of the gateway markets going into Covid.
And then we remain extremely particular about the type of office that we will seek to finance and even taken another step.
Specifically, what sponsors we want to partner with on those capitalization. So.
What attracted us to the deals that we invested in during the quarter was really a reset basis. So New York Office for instance, down somewhere between 15% to 30%.
We did not have an allocation there so when we think about that from an historic basis.
There was certainly some attractive macro parts to the story at the types of investors. We partnered with we mentioned on earlier on the call I think that type of intellectual capital.
Something that was really important to our underwriting and then the types of buildings, we mentioned the LEED certification I think that.
We'll provide some defensive nature to our investments from just anything that might come up over the future such as carbon taxes and the like and that was certainly a big part of our analysis, but these buildings, we were fairly provincial about what we like in the office sector, but we think these buildings in particular will be actually a recruiting tool and b.
Outside of the beneficiaries of a return to work environment that we're seeing really in New York on a weekly basis.
Great. Thanks for that color, Brian appreciate you taking my questions. So that absolutely. Thank you.
The next question comes from Jade Rahmani of K B W.
Thank you very much a big question investors are thinking about is the sustainability.
EPS, considering the runoff of loans that have high LIBOR.
So that in terms of deploying the capital you raised you were able to achieve.
Distance are we in your commentary is characterized the earnings are stable.
37, distributable EPS rate as such.
Sustainable.
Number to think about.
A J. Thank you again for your question Yeah, No I think we are we.
We feel very good about our earnings certainly this quarter.
We are very focused on as you mentioned the run off eventually run off of our LIBOR floors frankly, it's occurred.
A little slower than we had anticipated we only had two loans for example run off this quarter.
And therefore, we're pleased with where our portfolio sits today I.
I guess on your question about sort of go forward earnings again as you know, we don't give specific guidance on.
On our earnings.
Right now.
Looking ahead to 2022.
Are we planning on doing is recognizing that we'll continue to have run off of our LIBOR floors, I think what it'll be very important to do is to make sure that we can pull every lever possible. So.
So that we can continue to optimize earnings so one of the things that we've done is obviously.
First half of this year, we raised.
About 200 million of new capital that significantly increase our capital base such that you don't want. It then as we've talked about is with further scaling of our business, we should be able to scale our expenses and so you saw that this quarter in particular third quarter, which is our first full quarter of having this additional capital.
Our expense load on on capital was probably one of the lowest that we've ever had was under 30 basis points for the quarter. So even if you annualize that you can see that the run rate is much more efficient.
The other as we mentioned is that we do plan on using a bit more leverage so we've been able to generate the type of earnings that we had more than fully covering our regular and supplemental dividends for the past three quarters.
It's significantly less leverage low to mid twos and again I think the optimized model really looks at something around a three point range as we mentioned.
Third is I think we continue to see pricing of our liabilities go down.
We experienced certainly that with our latest CLO.
Earlier, this year and we'll continue to see that.
As you know we're coming upon the maturity of our term loan a.
And suffice to say, we would feel very comfortable saying that as we look to.
Refinance that term loan or put in a new type of financing that we do expect to achieve material savings on interest expense on the term loan so long winded way of saying.
While we won't have a permanent benefit of LIBOR floors, we do expect to offset some march of that of that run off of LIBOR floors with other ways that we can optimize our business model.
And then maybe importantly, as we mentioned on our opening remarks should interest rates rise again, no one knows but should interest rates rise and if you look at today's LIBOR curve. There is some built in expectation of increasing LIBOR.
We think that is something that can help us as a further tailwind.
Because we've hedged.
Casual portion of our liability costs and <unk>.
Certainly the new loans that we booked in 2021 have LIBOR floors that are not significantly or materially in the money.
Increases material increases in LIBOR will benefit us and I would say for example, if you look back at our earnings in 2018 2019.
You can see that full year earnings distributable earnings were $1 40 or so.
Which would have covered.
Our 35 cent dividend for the year and of course that was done in a higher interest rate environment, where LIBOR was.
Closer or right at that 2% average mark for those years. So I think there are definitely ways too.
Again run our balance sheet run our company more efficiently to offset the the law.
LIBOR floors.
And we will see about what happens with actual interest rate, but I think those are the.
Those are really the factors that will play into what our what our future earnings look like.
Thank you very much are you expecting for the fourth quarter pickup in repayments and on the funding side would you expect something similar to the third quarter.
Yeah, maybe I can start with a repayment and I'll turn it over to Brian on the on the funding side. So a.
Third quarter, we certainly experienced less runoff than we are than we originally anticipated.
So far for the fourth quarter, we have not had any repayments any material repayments, but we do expect I would say more to a more normal level of repayments towards the end of the year. As you know seasonally there is a lot of transactional activities that happen in the fourth quarter, particularly right at year end.
And we are closely monitoring and working with a number of our borrowers where we do expect some.
Mature repayments that happened towards the end of the quarter, obviously given that lead time, we are very busy building up our pipeline.
And so I'll turn it over to Brian to talk further about that.
Yes, I think tae sik covered it pretty well, but I think this is one thing I'd add to the equation here Jay does that.
The active asset management and constant dialogue, we have with our borrowers gives us as much insight as possible to the timing of repayments. So we'd like to try to understand what that looks like 45 to 60 days in advance and then we will certainly manage the pipeline as well as the warehouse facility to make sure that we can maintain as best we can.
Dan efficient deployment of our capital base so.
As we sit here today, we feel pretty confident in the pipeline to effectively replace those assets that will run off during this quarter and subsequently.
And then lastly could you just say if you expect net portfolio growth.
In the quarter, which some of your peers have commented.
Yeah.
I mean, it's tough to predict it down to the quarter, obviously were running something that we think about as more of an annual business or even longer term so tough to predict exactly when the.
The repayments and then redeployment of that capital will occur, but if you look at the net portfolio growth over the past couple of years that certainly the trend would support for further growth and I think probably been echoed throughout the <unk>.
Earnings calls of some of our peer set I think the activity in our space is extremely robust and there is no sign of abatement there. So.
Again tough to predict quarter to quarter, but over the long term certainly feel pretty comfortable about portfolio growth.
Thank you for taking the questions.
Thank you.
The next question is from rich Shane with J P. Morgan.
Hey, guys. Thanks for taking my question this morning.
I just wanted to talk about the origination environment obviously.
<unk> been asking a lot of questions in general about.
Spread compression floors rolling off.
I am curious when you look at the dynamics with repayments and repricing with base rates being lower and floors getting struck lower is there an opportunity to pick up a little spread and are you starting to as you think about higher rates.
Going to require some sort of hedging on behalf of your borrowers.
Our overarching I would say that the environment is very positive for the lending community right now and we talked about ROE is being maintained in that low double digit realm.
Typically what happens in our space as base rates decline spreads do widen.
That can be especially true as we near the end of the year just typically speaking I think.
While we don't necessarily directly compete with insurance companies and banks a lot of the equity allocation that these firms would have received in the first quarter have largely been deployed so just the supply of capital, especially when you. When you think about how constrained. We all are from a human capital perspective, you could expect to see some.
Spread widening.
That's a function of underlying base rates as well as just available liquidity and when you combine that with the borrowing costs I referenced that we benefit from both as a real estate platform, but also within the broader Ares.
Our family of companies I think that that net interest margin really is our focus and again the ROE that we're underwriting to our consistent with with past performance as well.
Terrific. Thank you so much.
The next question will be from Steve Delaney of JMP Securities.
Hi, Brian and taste that can congrats on a very solid quarter.
You've covered pretty much.
Everything I was interested in leverage repayments et cetera, I guess, the only thing I would come back to on the hotel and thanks for your your.
Your comments on that Tae sik from an asset management standpoint.
It's certainly nice to see it breakeven not a shock there given the world reopening et cetera, but if we think about that I mean, that's a $37 million asset first question. If you don't have any financing on that property at this time do you.
Yeah.
Steve We do we do Oh, okay.
We have about 28 million of our financing on it nonrecourse financings. So are our net equity position.
As you know right around 13, I'm, sorry, right around $11 million for this asset.
Okay. So.
We need to think of it closer to 10 or 11 as far as if you were able to.
Transfer that off to someone else as far as your net pick up of investable capital.
And obviously it would be a better return I'm sure on the 11, if you could fund new loans at three times leverage then that Youre seeing now but.
Okay, well, perhaps on I guess basic with the play.
<unk> B.
To the extent that you could find a buyer as the hotel industry continues to recover find a buyer at your basis, you would say goodbye or is this something that you see.
A more strategic investment.
Worked hard to get it where it is do you want to potentially hold onto it and realize larger gain.
Steve No really good question no our goal as a lender obviously is to recover our capital recover our loan basis.
And we will actively manage and do all of the asset management possible to do that obviously on the equity side of the Ares real estate.
We own very similar hotels to tutors property. So we know how to matches from both an equity perspective and that perspective, but now the answer is we're not here to maximize value for the last dollar we're here to fully recover our loan basis and put the dollars back to work in our primary.
Only business, which as you know as a lender.
Yep Yep, I think Thats certainly the right answer for our commercial mortgage REIT.
Thanks for the comments I appreciate it thank.
Thank you Steve.
The next question will come from Tim Hayes with BTG.
Hey, good afternoon, guys a lot covered clearly just one follow up kind of wrapping that all together.
Look I know, it's a board decision and it's tough to give forward guidance, but you mentioned being able to cover the.
Or.
Your expectation that Youll cover the total dividends paid including supplemental this year. Just wondering if you can provide any comments on how you think about next year. You know 37 cents of earnings. This quarter you are hedged against rates next year and your outlook does seem pretty positive in terms of.
Growth although.
I mean, no one has a crystal ball, we don't know where repayments are are going and when they can pick up but given just your comments I'm just curious what headwinds to your ability to continue paying kind of 35.
Total dividends.
That you foresee and how we should think about that heading into next year. Thanks.
Sure Tim. Thank you. Thank you for your question.
Absolutely you know its certainly our goal is to.
Hey, a consistent and growing dividend for our company and for 2021, you know as we announced at the outset of this year, we absolutely did want to share with our shareholders.
Some of the benefit that the company is derived from LIBOR floors.
And we certainly felt very comfortable at the beginning of this year too.
Basically say that our outlook would certainly feel very confident that we would be able to pay the supplemental dividend throughout 2021.
We did not get really any much guidance about what would happen thereafter, we certainly didn't say we will continue and we certainly didn't say we wont continue.
But we said we felt very comfortable throughout 2021, and certainly with the declaration of the fourth quarter dividend Hasnt been paid yet obviously about what the declaration of a fourth quarter dividend we will have.
Kept up to what we said we would do.
Maybe it puts.
Some parameters some bookends on kind of how we think about this is it is a number of factors clearly wanted to factors will be is how much further run off that we could see on our LIBOR floors like we said for the third quarter.
We saw much less runoff than expected so far.
Early part of the quarter, but as of today, we've had no additional run off of any loans in the portfolio, but as we did say, we do expect a meaningful repayments for the for the before year end and so that will certainly be a.
And part of the equation and the other important parts of the equation is what we talked about before getting a little bit more optimized in terms of leverage.
We're already benefiting from scaling of expenses well.
We will see where LIBOR is some of it is again I don't want to over complicate that message will also we will see kind of what happens with LIBOR, which sulfur and other indices, taking taking into effect as well.
We will see where the markets are in terms of spreads and origination, but so far things look good so I.
I think we'll be in a position much better position on our next earnings call to cover our fourth quarter earnings and a little bit more outlook on 2022 to provide more specificity and certainly with a little bit more passage of time, we will be able to do that but.
But right now I would say very much stay tuned I think it's a little bit of a the evolving situation and story, but certainly our goal is to is.
As to continue to share with our shareholders.
The benefit of increasing earnings and cash flow from our business.
Yes makes sense.
Regardless I appreciate you.
Walking through that and well look forward to more commentary on that next quarter.
Fantastic. Thank you.
And this concludes our question and answer session I would now like to turn the conference back over to Bryan Donohoe for any closing remarks.
Thank you so much and first and foremost just want to thank the entire team for their contribution this quarter and say how great. It is to be.
Back together in person, but thanks to everyone for joining to get today. We appreciate the continued support of acre and look forward to speaking with you again in a few months. Thank you.
Ladies and gentlemen, this concludes our conference call for today, if you missed any part of today's call an archived replay of this conference call will be available approximately one hour. After the end of this call through November 17th 2021 to domestic callers by dialing one 870 734.
475 to nine and to international callers by dialing 141 to 3170088 for all replays. Please reference conference number 1015987 to an archived replay will also be a.
Available on a webcast link located on the homepage of the Investor resources section of our website.
Okay.
Yes.
Yeah.