Q3 2021 FRP Holdings Inc Earnings Call
Excuse me, ladies and gentlemen, we now have our speakers in conference. Please be aware that each of your lines is in a listen.
And only mode.
At the conclusion of today's presentation, we will open the floor for questions at that time further instructions will be given at the procedure to follow if you would like to ask a question.
It is now my pleasure to turn the conference over to Mr. John Baker, Sir please begin.
Good afternoon, I'm, John Baker, the third Chief Financial Officer, and Treasurer of FRP Holdings.
And with me today are David Devillier Junior our president.
John Milton, our executive Vice President and General Counsel.
John Klopfenstein, our Chief Accounting Officer, and David Devault third our executive Vice President.
Before we begin let me remind you that any statements on this call, which relate to the future are by their nature subject to risks and uncertainties that could cause actual results and events to differ materially.
Those indicators in such forward looking statements. These.
These risks and uncertainties that are listed in our SEC filings, we have no obligation to revise or update any forward looking statements.
Except imposed by law.
As a result of future events or new information.
Now, let me turn to financial highlights.
Net income for the third quarter was 352000 or four cents per share.
Versus a $5 million 455000, or 50 50.
<unk> 57 per share in the same period last year.
Some of this decrease is a result of lower interest income due to bond maturities and the fact that the mehrens permanent refinancing paid off our preferred loan to the JV. So we are no longer receiving a return on that one.
We also had an increase in interest expense relative to last year as a result of.
The stabilization of the Marin prior to consolidating the Marin onto our books our share of the merits of interest expense was included in the loss from our joint venture line rather than interest expense.
The marriage of increased interest expense is mitigated to some extent by the lower interest rate on the refinanced dock 79 one.
However, the lion's share of this increase.
It is attributable to a decrease in the gain on sale of real estate.
We sold two properties this quarter last year for a gain of $5 $73 million and there were no such gains this quarter to offset that decrease.
For the first nine months net income was 28.807 million or $3.07 per share versus.
$11 million 222000 or $1.16 per share in the same period last year.
The bulk of this is a result of the gain on Remeasurement of the Marin a 51.1 million mitigated by a $10 1 million provision of $10 1 million dollar provision for taxes, a $14 million attributable to Noncontrolling interest.
We also experienced the 0.2 4 million in amortization expense of the $4 75 million fair value of the merits of the leases in place as part of the gain on Remeasurement.
Finally gain on sale of real estate decreased by $8 524 million compared to this period last year because of one Ethernet sale last quarter with a gain of 805000 compared to sales during the first nine months of last year with gains of nine $3 million to $9 million.
I don't want to delve too deeply into operations and spoil David's remarks, but.
Wanted to touch on a few operational highlights this quarter, we completed the purchase of what we are calling our Chelsea property.
Is a 17 acre tract in Hartford County, Maryland.
We purchased in September for just under $10 million and it will be capable of capable of supporting a 250000 square feet of industrial development, which we plan on it just being one building 250000 square feet, we plan to start construction.
On that building at the end of 2022 once entitlement work is done.
This is another step in furthering our commitment to industrial development and bolstering our land bank as we move beyond our remaining developable land at Hollander.
We are now in the ended the second reporting period with a stabilizing consolidated Marin standing side by side with dock 79, and both buildings are 100% commercially at least and both buildings had average occupancies this quarter in excess of 95%.
This is also the fourth quarter in a row, where dock 79 ended the quarter with occupancy greater than 94%, which is the first time, that's happened with that building.
So I don't think it can be over overstated. How impressive. This accomplishment is given that the streak for a lack of a better term began while the Marin was leasing up at an incredibly high rate and then continued past the mehrens stabilization.
It speaks to both the desirability of the environment and the sense of place, we and our partners have created and it demonstrates that these buildings.
The sum of the two buildings is greater than the parts.
They're just better together than they are on their own.
Aggregates royalties income this quarter decreased compared to the same period last year, but it was up for the first nine months I'm, making this the highest revenue total for this segment through the first nine months and in its history.
Our revenue total of 7.198 million through the first nine months is more money than a royalty generated in any fiscal year. Prior to 2017. The first nine months is greater than any fiscal year.
Uh huh.
Prior to 2017, which I think is oh.
It's pretty incredible.
This is the third corner row, where the trailing 12 months revenue for aggregates royalties exceeded $9 5 million in prior to 2021, we had never achieved revenue that high in any 12 month period.
We touched on this at our Investor day, but this is a this is the closest we've been in some time do an infrastructure bill becoming law.
This is already a very busy time for the aggregates industry. So.
Any additional demand like the kind, we would see should this bill become law would stretch supply when supply is already stretched pretty thin.
Which should lead to meaningful price increases.
Still yeah.
The bill has to become law, so fingers crossed.
We still retain high levels of liquidity relative to our size with over $160 million in cash and bonds as well as a $20 million of our line of credit however.
However, looking down our development pipeline.
We believe should everything go according to plan that we will be able to put all of our cash to use and return it to you in the form of new investments now.
Now if I could turn things over to David Devillier Junior to walk through.
Our segments in more detail David.
Thank you John.
And good afternoon to those on the call today.
It was mentioned during our recent investors day presentation in Washington D. C that FRP has been quietly engaged in a four pronged investment strategy of investing cash reserves with a goal towards increasing profitability and shareholder value.
To supplement the information detailed in the press release and in the 10-Q.
Like to take a slightly different approach today by providing you with a window into the four prongs of focus.
It was helped build the FRP of yesteryear and are central to our operations and balance sheet today.
That being one our in house industrial and commercial development platform.
Two mining and royalties.
Three third party joint ventures and for lending Bachelors.
Relative to our in house industrial commercial activities.
Cranberry run business Park, our 268000 square foot value add purchase and rehabilitation project was 96, 6% leased at quarter's end versus 78, 6% for the same period last year.
As of today, we're happy to report the park is a 100% leased with full occupancy expected in the first quarter of 2022.
Our multi candidate suburban office building that houses Frp's, Maryland offices was 95% leased and occupied at quarters that.
Our vacant lot in Jacksonville remains fully leased to Vulcan materials through Q1, 'twenty 'twenty six.
NOI for these three assets that make up the asset management business segment.
$468000 for the quarter versus $506000 in the same period last year. The reduction in NOI comes as a result of the sale of our Hollander spec building in July of 'twenty one.
Our two new speculative shell warehouse buildings totaling 145007 hundred square feet.
Hollander business Park near the Port of Baltimore, Our state of the art class a concrete tilt wall buildings with 28 32 foot clear ceiling heights built to Baltimore City Green building standards 60.
64% of the first a building one is pre leased and we are encouraged by the continued activity in this submarket and interest in these buildings.
Both buildings are expected to have certificates of occupancy by year end.
'twenty one.
In the second quarter of this year, we executed a build to suit lease for a new 101.
750 square foot facility.
At 1941 second Street, the last building lot in Hollander business Park.
We commenced construction on this project in September.
Back to deliver the building to the tenant before the end of calendar year 2022.
Completing all construction activities at Hollander business Park.
This last project marks the culmination of an in house development and Deborah will have included entitlements and land development of over 50 acres.
In house construction and delivery of over 410000 square feet in seven buildings with.
The development of Hollander business Park replaced a blighted former public housing complex and it has created hundreds of jobs and Baltimore City.
In order to maintain our industrial development pipeline last November we purchased a 55 acre tract of land in Aberdeen, Maryland adjacent to the Cranberry business Park for 10, and a half million dollars. This project is now known as Cranberry run business Center phase two.
And we will support up to 675000 square feet of warehouse product and a robust distribution market.
The entitlement process will take us through next year, and we have begun the design process isn't yet.
Existing landlords uses for the storage of trailers on site will help to Offsite are carrying an entitlement costs average monthly revenue from land leases for the third quarter.
We're in excess of $43000. We're hopeful we can begin vertical construction in this site and sometime in 'twenty 'twenty right.
In September of this year, we completed the purchase of 17 acres of industrial land in the pyramid section of Harper County.
Sean mentioned this purchase in his opening remarks we've.
We've begun the design and preliminary entitlement process to allow construction of approximately 250000 square foot warehouse facility and hope to commence construction here in Q2 of 'twenty to 'twenty two.
Lastly, we are under contract for 130 acre industrial tract, and Cecil County, Maryland.
Convenient to Interstate 95.
This site could support approximately 900000 square feet of industrial development.
If our due diligence warrants.
We would look to close on the purchase in Q2 or Q2, three or 2022 after entitlements are complete.
So to summarize our warehouse platform as of September 30.
268000 square feet is operating at 96, 5% leased excuse me now 100% leased to.
247340 square feet is under construction and 58, 3% leased.
930000 square feet is in the entitlement phase.
And 900000 square feet of product is under contract.
Assuming a successful completion to the due diligence phase of the property under contract that would total over 2.3 million square feet or more.
Warehouse development ranging from under contract.
Operator.
It's a pretty significant.
Move back into warehouse development after our sale of four point.
Oh about 4.1 billion square feet in May of 2018.
Relative to the mining and royalties flat form John the third.
Describe the highlights of this business the business segment, so I'll move on.
Two number three of our four pronged attack.
Moving on to our third party joint ventures.
At quarter end phase one of our joint venture with St. John properties, which consists of four buildings totaling 72080 square feet of single story office and 27950 square feet of small Bay retail space in Baltimore County, Maryland remains 48, 1% leased.
And 46, 8% occupied.
Our 26.6% beneficial interest in the Delaware statutory trust or D. S. T that owns a 294 unit garden style apartment community known as Hickory Creek.
Located in Henry County, Virginia remained above the 95% occupancy level and we continue to receive our monthly distributions from operations at Hickory Creek.
On the mixed use development front.
The ox 70, Nines, 305 apartments, where 90, 594% occupied on average for the quarter and 92.8% leased.
94.8 per cent of the apartments were occupied at quarter's end, marking the fourth quarter in a row with occupancy above 94%.
Our retention rate of dock was 57, 8%.
However, rental rates continued to be flat due to government imposed restrictions on Ronnie increases due to coke.
These restrictions are currently scheduled to expire at the end of the year.
Dock 79 has fared quite well over the past year and a half despite the significant interruptions, we all experienced.
No seriously impacted by Covid with shutdowns reduced capacity canceled stadium events and general uncertainty our three retail tenants at dock 79, which totaled approximately 10 and a half thousand square feet of the 14000 square foot total retail space seemed to have turned the corner and are holding their own.
Significant headway toward normalcy with the loosening of some restrictions warmer weather better utilization of outdoor spaces and stadium events with spectators is now being realized.
In early April of this year, the remaining retail space.
Dock became leaks and we look forward to full occupancy in late spring of next year.
Dock 79 was our first joint venture with mid Atlantic Realty partners, or MRP, and we maintain a 66% ownership position.
In the second quarter of this year.
Phase two of our riverfront on the Anacostia project in Washington D C known as Marin.
Reached stabilization or 90% occupancy of its 264 apartment units and as a result of this milestone joins dock 79 in Hickory Creek, and our stabilized joint ventures business right.
At quarter end 93, 6% of the apartments were leased and 95, 5% of occupied.
Average occupancy for the quarter was 95 point buying 2% with retention rate of 71.9%.
Relative to the 6900 square feet of first floor retail, 100% of the spaces leased with 24% occupancy as of September 30, and the balance of this space is currently scheduled to open for business by the end of this year.
As with Dock 79. This is a joint venture with MRP in which Atmar FRP is the majority partner 74, 1%.
As John mentioned earlier. This building received its final certificate of occupancy at the end of March 'twenty 'twenty.
And reached stabilization of 90% in less than 12 months.
This is a testament to the quality of location and product delivered to the market and the skill of leadership on the ground balancing that day to day operations.
Revenues for the quarter for both dock 79 in Marin were five $2 million up 101% over the same period last year, primarily due to merit lease up.
Marion revenue represents 2.43 billion and dock 79 claims 2.78 million in revenue.
Which included an increase for dock at $196000 over the same period.
Total NOI at Dock, 79, Marin and Hickory Creek, which make up the stabilized joint venture business segment was $3 $1 million up 1.48 million, which is 95% over this period last year. Thanks again to the addition of Marin to this business.
Leasing success.
Moving on with our development programming are Brian Street project, a third JV with MRP has begun to move from construction to operation.
Our first building named Coda received final certificates of occupancy in April one.
Of this year for 254 apartments.
Thanks to Hercules Herculean efforts from our leasing team and despite Covid challenges coda was 95, 5% leased and 93.5% occupied at the end of this.
Well this quarter.
Chase building one be opened in August and was 48, 1% leased and 23, 5% leased occupied at quarter's end.
Chase one a will receive its occupancy certificate this month and begin its leased.
In total Brian Street Phase one will consist of 487 apartments, and three buildings and 91661 square feet of first floor freestanding in open air retail.
71383 square feet or 78% of the retail is now pre leased and expected to open.
For operations beginning at the end of this year and running into the first two quarters of 'twenty to 'twenty two.
This property is located in a designated opportunity zone, which allows us to defer a significant tax liability.
Our fourth mixed use joint venture product with a project with MRP called the birds at 1800 half Street in southwest Washington D. C. Just a few blocks down river for Marin and Dock 79 was 45% complete of quarters out.
The 10 story structure will have 344 apartments, and 11246 square feet of ground floor retail and is scheduled for completion in Q3 of 2022.
This project is also located in an opportunity zone.
Relative to our two joint venture projects with Woodfield development.
These are located in Greenville, South Carolina.
But first called Riverside is a 200 unit three building apartment project.
This project began pre leasing August one and at quarter end was 34.5% leased in 'twenty, 2.5% occupied.
The second project called for a weight Jackson, It's a 277 unit multifamily development, including 4700 square feet of retail space construction is currently 70% complete.
It should open in Q3 of 2022.
So to summarize relative to our third party joint ventures and mixed use developments. We are currently invested in six projects totaling 1827 apartment units with 127000 square feet of retail at.
At quarter end dock 79 Marin.
Riverside and one of the three residential buildings with Bryant Street.
Total totaling 923 apartments were up and operate.
10500 square feet of retail tenants occupying their respective spaces and paying rent.
Remaining requirements and retail spaces will be completed.
And coming online from now through the next 12 to 15 months.
Moving onto our lending ventures, we have two ongoing at the moment.
One lending venture called Amber Ridge is located in Prince George's County, Maryland, where the principal capital source for this project with a total commitment of 18 and a half million dollars <unk>.
Investment includes a charged 10% interest rate and a minimum preferred return of 20% above which a profit induced waterfall determines the final split of proceeds entitlements are complete.
Land development is fully underway and two national homebuilders are under contract to purchase all 187 lots after completion of the infrastructure development.
At quarters end. The first set of 16th finished lots were delivered to the purchasers returning over $4 million at preferred interest and principal back the FRP.
Our newest lending venture is called Presbyterian homes and is located in Hartford County, Maryland.
Were the principal capital source for this project with a total commitment of $31.1 million.
The project will consist of approximately 340 building lots like Amber Ridge. The investment includes a charged 10% interest rate and a minimum mum.
Return of 20% the strategy is to advance the project a record plat then upon a binding contract or contracts with a homebuilder initiate the horizontal development stage to create finished lots, which upon completion would be transferred to the homebuilder in place.
COVID-19 is still warrants mention in any company update.
<unk> had a productive and busy summer despite the arrival of the Delta Blackberry.
Our retail and restaurant tenants operate in full swing and life is showing more signs of normalcy every day.
Our warehouse tenants seem to have never skipped a beat in our base is growing constantly as evidenced by our rapidly Suffolk Cranberry run and continued strong activity at Hollander. So far we have dealt successfully with increasing material costs and delays on construction projects and we have continued to power through land development.
Assesses we've been extremely fortunate that our employees and partners have remained healthy throughout the pandemic.
Operationally, we have been forced to pivot multiple times to accommodate new restrictions regulation or common sense measures to prevent the spread of COVID-19.
From an investment perspective, our warehouse platform is performing quite well construction materials needs have given rise to record mining revenues and we continue to identify new opportunities despite rock as competition for deals.
<unk> for construction and delivery of several of our multifamily and mixed use project has allowed us to capitalize on a reemergence of activity due in part to our unique features in strategic locations. Notwithstanding all the good news, we do expect to see the continuation of limited retail and office leasing there's some business.
Borys remain uncertain amidst a unique regulatory and public health climate, we are cautiously optimistic but also realistic about the velocity of certain real estate products.
We now have employees back in the office collaborating and interacting on a regular basis.
FRP is feeling more like itself again and.
And we're looking forward to a return to daily operations that are more recognizable than over the last 19 months all.
All the while we remain grateful that as a company and a group of professionals, we're solidly grounded and uniquely prepared to progress as an organization oil to our mission and has served us well both before and during COVID-19.
Thank you and I'll now return the call back to John.
Thank you David now at this point, we're happy to open up the call for any questions that any of you might have.
Thank you Sir.
If you would like to ask a question by pressing star one on your telephone keypad. If you are using a speaker phone. Please make sure. Thank you Amit function is turned off to allow your signal to reach our equipment.
On the phone might indicate when your line is open.
Be sure to state your name before posing a question.
Again that is star one to ask a question.
Our first question.
Hey, good morning, It's Curtis Jensen can you hear me.
Hey, Curtis how are you doing.
Hi, Curt is good.
Hey, guys just a few questions first on <unk>.
Mining royalties.
The Vulcan Lee said Fort Myers.
It looks like in your presentation that expired.
April.
Of this year do you know if that was renewed I know there was like a 15 year option for them get them, but that they exercise their renewal option.
No surprise.
And you know just given sort of the growing demand regionally.
Are there any prospects for some of the other properties that are leased but not currently being mined.
To to start mining.
Are you asking.
If the so I think right.
Uh huh.
Yes.
Yeah, I think you've got three three properties with a lease to Vulcan and wanted to semi fix and theyre not.
Currently being mined, but there's a lease on them and you're getting royalties and.
I just didn't know if there was some prospects for.
Those properties to you know for the for the tenant to come in and start mining.
The most.
It was kind of eminent one of those.
You know to start in the next year shows the Sim X they've.
It took a long time for that site to get permitted and then as part of <unk>.
Their permitting that <unk>.
Improve our county road and connected from.
One part of the county to another and then build a plant yeah.
Part of the reason that the aggregates industry is is so attractive in terms of the ability to raise prices in and keep them up is that it.
It's hard to get permitted and semi ex and and what they've gone through down Lake Louisa is proof positive of that so.
Long story short.
Uh huh.
But they will get around to it.
Some of the other sites like a lake sand.
Vulcan are at least as another part of the land adjacent to ours and or reserves for a mechanic and you need to.
A special type of.
Dragline to get and and it has reserves, which.
Requires getting it down there in and is capital intensive and so they are basically mining you know the rest of the the reserves are before they turn around and and get into ours. So.
That one is that going to be the man arms for Awhile Forest Park up in Georgia.
Has a ton of reserves underneath the plant, but they also have a lot of reserves.
Hum.
Just haven't gone to obviously, there they're not going to move the plant until.
Until they absolutely have to and yeah, that's just where are.
Our portion of those.
Reserves are hum.
Again, a long walk for a short drink of water like always is going to be the one ah that that gets mined first lakes and well eventually get mind and Forest Park, absolutely will get mind I'm trying to think of the edits as maryann areas done.
The variance done and then I don't know about aircraft, but they still have reserves or if it if they're completely done but.
That's it.
Okay and is Vulcan at Manassas, I know they sounded like they have shifted some of some things and.
Are they going to return to kind of step in and operating back to where they were.
Yeah, it's the.
The property line kind of goes right through the middle of the pet so.
It's just part of the mining mining there.
You started bouncing around from site to site, but the you know I I don't think there's a renewal on on that lease and there's.
There's a meaningful amount of reserve, but there and.
You know in order to J Reid, who got a long way to go in a short time, they get there they're going to have to they're going to have to mine that they have every incentive to mine. It so there'll be back on that land.
Uh huh.
Probably accretion.
Okay, and then and then just shifting over to I don't want to dominate the questions here, but a couple more.
At dock and Maryann I guess, the NOI was for the quarter was $3 1 million.
If you look out to 2022 and you assume your retails at 100%.
You get a little bit of a rent bump you know starting maybe.
Q2 or something.
Your financings stable, obviously, what I mean.
Have you guys started to think about.
What kind of budget NOI you would have for.
2022 there.
Yeah.
We obviously have but.
But that's a you know we don't want to speculate on it in and then be wrong.
Which is not helpful to you, but that's just been kind of all right. How we did.
Did that.
And then okay, I'll actually I'll just shift over.
Just something to Johns comment card is the good thing is that that restrictions will be lifted.
By the by the government, we weren't allowed to do anything with the rental rate increases or rate more or where we allowed to evict somebody that though just money.
And that's going to be up here shortly but we fall about 60 days behind just by virtue of the lease up program. So we're hopeful.
But you know you don't know market's going to dictate those actions.
But were kind of hopeful that that will.
We'll do that we'll do certainly do as well if not better than we did this year.
Okay, and then you mentioned a new lending venture.
Yeah, I guess was that funded after the end of the third quarter.
Or is it starting to be funded or.
Yeah, we we've it's a.
It's a long term project. These things can go four to five years from the beginning all the way up through <unk>, but it's a $31 1 billion dollar commitment.
And it's going to be doing it the same way, we did with the Hyde Park, which was which we sold and got all of them.
<unk> made a pretty nice profit and Amber ridge, but this is the newest one and we have a deposit in for the property and we're actually patent parallel going through some entitlement work with the necessary government agencies, we don't have to buy the property until we get some most of the entitlements doggie dog.
Alright, and last question I'll turn it over is you know if you. If you think about your build out at Hollander, you add Aberdeen Hartford announced Cecil County.
You know over the next two to three years I mean are we is that.
Because there was a comment in the press release about using up all your cash I mean is that kind of do you think that could absorb another 50 to 100 million over the next three years or something or.
Well, it's what.
Obviously, when we when we start but as I said in my mind.
It's my narrative.
We have.
You know we have a warehouse platform.
Pipeline it could be as high as $2 4 million square feet and then it would we'd really need to determine the appropriate time market conditions and that sort of thing to see when they are when they would develop but we'd like to think that market stays where it is.
Would be under full development and then that's where we that's where we would be heading.
Yeah Curtis.
The you know.
Spanning our land bank and and developing more warehouses will be part of how we use our cash and.
Phase three phase four.
The site, where Vulcan is now in the Anacostia River at there's gonna be Barry you know.
Big uses of cash for a for us as well and then there's the potential for Brian Street Phase two.
Right.
And you know potentially additional devote development in Greenville, So we.
We are.
Yeah.
<unk>.
It's gonna be.
Spread across all of our different platforms.
But it sounds like there's pretty productive use for your cash over the next call. It three to four years.
Better.
Yeah.
Well that's exciting thank you.
Thank you absolutely. Thank you Curtis.
Thank you.
Again to ask a question please press star one.
Yeah.
Austin.
Okay.
Hi, Steve Farrell here can you hear me.
Yes.
Yeah.
I'm doing well and they just have a few quick questions in regards to the two industrial buildings at our Hollander business Park that are being completed this quarter our construction loss.
With the last building are you seeing pressure there.
Oh, well, they're almost done so a lot of the purchasing was done you know we were able to we were able to do to solidify a lot of them.
The more expensive.
<unk> materials early on but there there's it's it's a little bit more expensive than the last one yes rents are a little bit higher too.
Okay, and if you look at the industrial Python you have the you mentioned, the 930000 square feet and entitlement Ts.
Another 900000 under contract.
Yeah, you know we go through with development involved that is it correct to assume that you would earmark about 140 to 160 million to developers.
Well it depends on what the depends on what the construction pricing is at the time a lot of factors determined what you know how we how we move forward but.
I would say yes.
Okay. Thank you and.
And you just mentioned earlier and the U S and the potential for <unk> ataxia Phase three Brian Street Phase two.
Do you expect to over the next three or so years to be able to fund all of these projects from cash or would you consider financing and some of them.
Industrial projects.
Well, we have you know historically, we have built the warehouse facilities out of cash and we because of the joint venture nature of these mixed use programs, we have gotten construction loans and then one properly stabilize we moved to permanent financing.
I mean, that's been yeah.
Gone through and that's not to say that we wouldnt change, but its probably the direction. We would go going forward yes.
Yeah, Stephen and and part of that as a result of we do these warehouse projects you know entirely in house on our own and so there's no partnership no one else's capital.
Constraints to consider and we've got the cash to do it and on the multifamily stuff are usually.
You know partners, but with people on these deals and.
That's sort of the name of the game with the what the multifamily as you know you you put debt on them. So.
Sort of going along to get along.
In that regard.
Okay. Thank you and then last question and you sort of alluded to it earlier.
We don't know exactly when the rent freezes will be up but if they do expire at the end of the year do you expect to be sort of aggressive in raising rents or are you going to.
Focus on keeping occupancy where it is in a more gradual rent increase.
We look at the.
Our property management company at the nose to project with most of them. We have a software project program that literally looks at those E. Every apartment every day and so we obviously.
You know look to expand the rent the best we can.
And there was caught about I guess, there's a lot of.
Equilibrium there you don't want to have you don't want to have.
Our renewal rate, that's higher than say 55, or 60% because if you do you're wondering if you shouldn't be raising the rents, but we also want to keep heads in beds too. So it's a it's a balance.
But we feel pretty good about where we are today and hopefully we can do a little bit better than that in the upcoming months.
Great well. Thank you guys. That's all I had.
Thank you. Thank you.
Speakers at this time there are no further questions in queue.
Alright, well that's it we really appreciate you all the continued interest in our in the company and we're going to get back to work and I tried to make some money.
Thank you again.
Thank you ladies and gentlemen.
Today's teleconference. Thank you for your participation you may now disconnect.
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