Q4 2021 Broadstone Net Lease Inc Earnings Call
Driven by strong same store portfolio performance.
Bust and accretive external growth as well as prudent capital markets execution and balance sheet management.
During 2021, we collected 100% of contractual rents owed and average occupancy for the year was 99, 8%.
These near perfect operating results, coupled with our best in class annual rent Escalations of 2% helped generate strong same store portfolio growth year over year.
On an external growth front, our diversified investment strategy provided the flexibility to navigate what was a record setting year in the net lease transaction market.
Despite heightened levels of demand and competition, we were able to close over $650 million of accretive acquisition opportunities diversified across all of our core property types at a weighted average initial cash cap rate of six 3% and a $15 nine year weighted average lease term and one 5% weighted.
Average annual rent Escalations.
The <unk> story truly shown through in all of our 2021 accomplishments.
We delivered on our defensive growth strategy during the year and continue to remain laser focused on best in class diversification across all facets of the business during the year.
Industrial assets led the way in 2021, comprising 47% of our transaction volume reached.
Retail assets were at 26% followed by healthcare at 23% and restaurant at 4% our top tenant exposures declined by 40 basis points to two 1% and our top 10 and top 20 tenant exposure has declined by $120 and 140 basis points respectively.
All of these statistics demonstrate that we can continue to meaningfully grow earnings per share, while not feeling pressure to overly concentrated with any one tenant or in any single sector.
Growth in 2021 was supported by outstanding execution in the capital markets, including it in an inaugural follow on equity offering a debut 10 year public bond offering and routine equity issuance through our newly established ATM program.
These actions have positioned us to continue to execute on our defensive growth strategy in 2022, as we look to deliver another year of solid results for our shareholders.
Now turning to <unk> recent performance.
During the fourth quarter, we invested $147 $5 million and 36 properties at a weighted average initial cash cap rate of 6%.
Q4 marks the first quarter since our IPO in which we acquired properties across all of our core property types, including industrial health care investment grade retail and restaurants.
<unk> include one 5% annual rent Escalations and $14 two years of remaining lease term translating into a weighted average GAAP cap rate of six 6%.
I'd now like to provide additional detail regarding our few key transactions completed during the fourth quarter.
During the quarter, we acquired five industrial facilities in four separate transactions for a total of $60 million at a weighted average cash cap rate of five 9% leased.
The leases include a weighted average one 9% annual rent Escalations and a weighted 15 three year lease term.
Included in these acquisitions are two additional investments in the food processing space that are critical to the tenants operations as evidenced by the significant renovations undertaken in the past two years by these tenants.
We are thrilled to continue to add additional food manufacturing and associated cold storage exposure to our industrial segment of the portfolio.
We have historically found strong risk adjusted returns in this space that are highly complementary to our overall portfolio construction.
We also added five casual dining restaurants in a sale and leaseback transaction with a well established and growing regional casual dining operator located in Houston, Texas. These.
These five restaurant locations were purchased in addition to the company's small corporate headquarters for $28 5 million.
All of the properties are master leased and include one 5% annual rent escalations over a new 20 year lease term.
Transaction represents our first investment in the casual dining space since the onset of the Covid pandemic, we have meticulously followed the space over the past few years closely monitoring how different concepts within our existing restaurant portfolio performed during and recovered from a period of temporary distress.
We are growing increasingly more comfortable with the space as operating and financial trends continued to recover to pre pandemic levels.
Each of the five restaurant locations purchased during the fourth quarter currently exhibit strong rent to sales and rent coverage ratios. We're excited to make a return to the investing in the casual dining space and with attractive risk adjusted opportunity.
Finally, we acquired $42 million of investment grade retail assets during the quarter comprised of 22 properties at a weighted average cash cap rate of five 8%.
The investments include three existing being all tenants and the properties are located in geographically diverse markets across Michigan, Georgia, Kentucky and Tennessee.
The leases have a weighted average remaining lease term of 10 three years and include 50 basis points of weighted average annual rent escalations.
Many of the properties were built in the last five years and include upgraded construction consistent with their respective concepts modern redesigns.
We are generally focused on growing our investment grade retail exposure over the past year. This quarter's activity includes a mix of single site acquisitions and a larger portfolio that helped bolster the results with long weighted average lease terms and annual rent escalations.
And average asset size of approximately $2 million, coupled with tenant and geographic diversification makes this a highly attractive opportunity to add significant investment grade exposure without taking an outsized concentration risks.
Acquisitions completed during the fourth quarter, bringing total volume for 2021 to $654 7 million at a weighted average cash cap rate of six 3% consistent with the midpoint of our last guidance update for the year.
2022 is often an exciting start and is currently on pace to be one of the strongest beginning to a year with respect to acquisition volumes in our nearly 15 year history of investing in net lease real estate since.
Since quarter end, we've closed $32 9 million of transactions and currently have over $200 million of opportunities under our control, which we define as under contract are executed letter of intent I'm pleased to announce our initial 2022 acquisition guidance range of 700 to 800 million, which reflects approximately 16% growth over our <unk>.
Year, ending gross asset value at the midpoint of the range.
Our asset base relative to many of our larger peers allows us to generate meaningful growth in results at highly achievable levels of acquisitions, our diversified investment strategy will continue to provide flexibility to source accretive opportunities without sacrificing our underwriting standards in 2022.
Ryan will provide additional detail regarding further guidance updates in just a few moments.
During the fourth quarter, we sold six properties for $15 8 million. These sales continued to reflect our disposition strategy, primarily focused on risk mitigation and included three vacant property sales and the disposal of three lower performing automotive retail sites at a seven 5% cap rate.
We continue to monitor the portfolio closely with heightened level of focus placed on the current macroeconomic outlook.
That could impact our tenants.
And class diversification by property type industry tenant and geography Act as a natural defense of hedge.
Expectations of both rising inflation and interest rates are.
Our portfolio has been deliberately constructed and is uniquely positioned to weather any singular tenant credit event.
Diversification has proven beneficial throughout many challenging economic environments, including most recently the Covid pandemic.
In addition, our best in class portfolio weighted average minimum rent escalation of 2% helped generate better same store growth during a period of higher inflation relative to many others in the net lease space.
As of December 31, 2021, all but two of our properties are subject to a lease and our properties were occupied by 204 different commercial tenants with no single tenant accounting for more than two 1% of ABR.
I'll now turn the call over to Ryan to provide additional detail on our Q4 and fiscal 2021 results recent capital markets activity and our initial guidance for 2022.
Thanks, Chris during the fourth quarter, we generated <unk> of $58 7 million or <unk> 34 per share, which represents 3% growth on a per share basis quarter over quarter.
Our fourth quarter results were largely driven by revenue generated from late Q3 acquisitions as well as acquisitions completed within the quarter.
Please note that a $134 6 million of acquisitions were closed during the month of December many of which were closed in the final weeks of 2021, we expect these acquisitions to act as a tailwind for our Q1 2022 results during the quarter, we incurred total G&A expense of $8 5 million, which <unk>.
<unk> seven 5 million of cash expenses.
Now turning to our full year 2021 results, we generated <unk> of $216 million or $1 31 per share.
Which as Chris mentioned represents growth of nine 2% over our annualized Q4 2020 results Lanny.
Landing at the midpoint of our last guidance update.
During the year, we incurred $36 4 million of total G&A expenses, which includes $4 7 million of stock based compensation and $1 3 million of one time severance costs, resulting in $34 million of cash expenses.
Full year cash G&A came in just above the low end of our last guidance update.
As for capital markets activities during the fourth quarter, we sold approximately one 1 million shares of common stock at a weighted average share price of $26 26 per share for total net proceeds of $27 3 million through our ATM program, which was established in the third quarter of 2021.
We view the ATM as an important component of our overall capital market strategy and expect to continue to utilize the program to match fund acquisitions and control our leverage profile and efficient manner.
Subsequent to year end, we also amended and restated our revolving credit facility upsizing the capacity to $1 billion extending its maturity date to March 2026, and reducing the applicable margin to 85 basis points based on our triple B or <unk> two ratings. The amendment also.
Provided for our $500 million supplement for Canadian dollar and other foreign currency borrowings, which we expect to utilize to primarily fund potential future acquisition opportunities.
Canada.
As of year end, our net debt was approximately $1 7 billion, resulting in a net debt to annualized adjusted EBITDA of five one times.
We continue to target a conservative leverage profile of less than six times on a net debt to annualized adjusted EBITDA basis.
Our liquidity profile remains highly robust with only approximately 10% of our $1 billion revolver utilized as of yearend.
Subsequent to year end S&P global ratings reaffirmed our triple B rating with a stable outlook.
Now turning to our initial full year guidance for 2022.
We expect to report <unk> per diluted share between $1 38, and $1 42, which represents an implied growth rate of six 9% at the midpoint of our guidance range when compared to our 2021 full year results of $1 31 per share.
Our initial 2022 guidance range is based on the following key assumptions acquisition volume between 700 $800 million representing growth of 14, 6% over our 2021 gross acquisition volume at the midpoint of the range.
Disposition volume between 75 and $100 million consistent with our 2021 disposition volume.
And total cash G&A.
<unk> 31, and $33 million representing growth of approximately 5% over our 2021 cash G&A at the midpoint of the range.
As a reminder, our per share results for the year are sensitive to both the timing and amount of acquisition disposition and capital markets activity that occur throughout the year.
Finally at our board meeting held on February 17, our directors declared a $26.05 dividend per common share and <unk> unit holders of record as of March 31 payable on or before April 15th.
We will continue to evaluate future increases to our dividend with our board on a quarterly basis.
With that I will turn it back over to Chris for closing remarks.
Thank you Ryan I want to reiterate how pleased I am with all we accomplished in 2021 and how we are currently positioned to continue to deliver strong results for our shareholders in 2022.
I'm confident that our robust pipeline of diverse accretive acquisition opportunities and our expanded access to multiple capital sources will only help propel our momentum in 2022. Further. This concludes our prepared remarks, operator, you can now open the line for questions.
Operator can you. Please start the questions if you'd see theres a few in the queue for ready to participate.
Okay.
Yes.
Hi, everyone. It's Chris here apologies, our operator has dropped we're trying hard to open up the line for questions. Unfortunately, it's outside of our control we definitely can see there's a few and also wanted to ask questions and we're.
And in communication with the AR.
Congress folks, but just give us one more second I apologize, we'll we'll get it open as quickly as we can.
Absolutely. The first question is from the line of John Kim Jeong. Please proceed.
I was worried there was the labor shortage on operators.
The first question I appreciate it.
What Sandra.
Yeah.
It's tough times.
Has there been any impact on pricing or.
Yes, certainly either for your guidance for the market overall on what's happened in the market, so far as far as interest rates and and REIT share prices for net lease companies.
Sure.
I will probably sounded like a little bit of a broken record on what you've heard from some of the other net lease folks in the last couple of weeks, but.
Where we sit today, just sort of being 45 or 50 days into some of the.
Call it new year's adjustments that we seem to share prices and rising debt cost, we haven't seen a meaningful change I'd say from our perspective cap rates.
Stabilized a little bit towards the end of the fourth quarter and into this year. So there wasn't that persistent downward March.
But at the same time, we haven't seen any any widening out of pricing at this point.
Again.
Thank you probably heard before but I think a very true for us today, the lag in which we're negotiating transactions.
As a real thing and it takes a while for the market to catch up and logically. It seems like there should be some widening out to come at a calc for.
The changes in cost of capital that the space has experienced.
But you know things that we're closing now we were actively working on in October and November timeframe. So.
Some of that is just going to take a little ways to work its way through the system in.
Certainly the competition on the private side still remains pretty pretty robust so for us at the moment, we haven't seen any meaningful change in the pricing, but we continue to monitor it.
Focus on our spreads on a on a daily basis to make sure we're in a good spot.
Hey, Chris can you quantify what the portfolio portfolio premiums are today.
Our industrial and whether or not you'd see the same.
Same impact in health care and retail.
Sure I'll actually let John jump in on there and he can talk a little bit about that.
Sorry, John can you repeat that I'm, having an audio problem too.
Illinois.
Portfolio premiums were seeing it in industrial but I'm wondering if you're also seeing it in health care and retail and other asset classes. If you look at anything you can quantify what those petroleum premiums are.
Yes, no absolutely, we're certainly seeing portfolio premiums.
Some of them we've been talking about the last few weeks at our investment committee in terms of our strategy for the year looking for opportunities, where we can focus on one off both on the retail <unk> and other places, where we arent going to be seeing that.
Terms of quantifying.
That's a little harder.
<unk>.
What sort of asset class, you're talking about but.
From.
20% to 25% even up to 50 basis points of premium on our portfolio would be.
Out of the question on some of these things. So that's why we continue to think that the diversified investment strategy, focusing on granular assets and having the opportunity to be able to go after.
The small retail.
Strategy as well as some of the smaller health care and industrial assets in health care assets that don't fit within some of our peers.
Strategies, just given the volumes that they're looking to do things as we.
We think is a real differentiator for us our ability to hit our goals for the year.
And on your cold storage investments are there anything about the lease structures, where you would take on.
Additional operational or Capex risks risks versus your standard industrially.
No they fall right in line with the standard industrial lease our cold storage assets are pretty different from some of the pure play cold storage folks.
You know really more owner operated there the type of assets that Chris talked about in his remarks relative to the food production and distribution space.
But a lot of times just to build on that the cold storage spaces, a proportion of the building where food processing might be happening in 50%, 50% might be cold storage as well for the longer term storage. So it's a little bit of a different mix, but but an incredibly important part of the industrial chain.
Yes.
I appreciate the color. Thank you.
Thanks, John .
Thank you Mr. Kim.
The next question is from the line of Caitlin Burrows with Goldman Sachs. Please proceed.
Hi, Good afternoon, maybe just on acquisition volumes, the $700 million to $800 million of assumed acquisition volumes for 2002 is up about 15% from last year. So can you go through what you expect the team will do differently. This year in order to achieve that and speak to your confidence for example have you hired people plan to focus on larger deals less competition.
Or what could just helped drive that increased activity.
Yes, Kevin I think a lot of it has to do with the team sort of settling into roles. We went through some changes last year and how we were focusing on new opportunities.
The team itself has had.
Over a year now of getting back into the swing of things as you recall from leading up to the IPO, we were out in the acquisitions market for about a year before then so.
There was a little bit of getting back into the flow of things and sort of Q4 of <unk> 19. In Q1 Q2 of 'twenty. One excuse me of Q4 of 'twenty in Q1 Q2 of 'twenty one.
So now we feel like we're hitting on all cylinders, the sort of average quarter for us over the last four quarters is in that $190 million range. So we feel very comfortable about what this team can do.
Team, we think can easily do up to $1 billion in a year. So we think we're a little short of that in terms of our overall goal, but we certainly could expand from there.
And so I think it's just really sort of flowing with the team is gelling, a little bit better as.
As we've had more opportunities and then if you look at the individual strategies, we continue to be looking at the portfolios, but we love the ability to add some scale will go through the portfolios, but we want to be mindful of the portfolio premiums that are out there. So as much as we're chasing the larger portfolios and those opportunities we really like some of the larger singles.
Assets that are out on the market and continue to be right in our wheelhouse in the industrial and health care space and then we also really like the opportunity to go really granular.
<unk> focus on the individual retail and those <unk> assets that we have.
And I think all of that culminates into what you see as a strong pipeline heading into Q1, and then looking at that sort of call. It 175 million for Q2 through Q4 from there.
Got it Okay, and then just in terms of timing I know single year doesn't necessarily matter, so much but I know periods in the past have pointed out that a given year's earnings can be heavily impacted by the pace of acquisitions.
And that <unk>, often being the most active but looking at your 'twenty one activity. It doesn't look like acquisitions necessarily built over the course of the year and I think you guys. Even just said that <unk> was off to kind of a stronger start than you may normally think for <unk>. So.
Just wondering what your experience has been with seasonality of acquisitions in pace.
Or not and what kind of pieces assumed for this year.
Yes, I think the seasonality is something that we're actually trying to combat a little bit and we certainly in our past saw that a lot where a huge portion of our acquisition volume happened in the fourth quarter and as you just pointed out Caitlin that wasn't the case this year.
We started focusing on Q1 acquisitions and about the November timeframe with the intention of trying to smooth that out. So we didn't have the same type of seasonality that you would traditionally see where the big huge corp, fourth quarter and a very light first quarter and that's something that we're starting to do now the first quarter for us is.
Pretty well baked in terms of how we think it is going to shake out and so we've already have started a couple of weeks ago shifting our focus with our acquisition folks and with our investment committee to thinking about alright, what are those things that we can hit early in Q2 and throughout Q2, and we will continue that type of cadence throughout the entire year looking to make sure that we're constantly taking that 90 to 120 day outlook.
Carrying it through and trying to smooth that process out a little bit and avoid what had been historically some of that seasonality.
Okay.
And maybe just the last one that I know that office hasn't historically been part of your kind of core target acquisition types, but in the quarter you guys did do a small restaurant portfolio with their office. So just wondering if you could talk about that a little and to what extent you think that office property being part of the portfolio limited potential other.
<unk> and how that does end up working out well for broad stone and maybe.
To what extent you think there are other opportunities like that out there in restaurants or otherwise for an office might be lumpkin.
Hey, Caitlin it's Chris.
It's interesting I continually gave the example that we might do an industrial portfolio with a small office mixed enjoyed it.
A wrap a restaurant deal that has a corporate office sitting on the same thing across the parcel from forbid. So I guess you should ever be able to predict too much is what will happen, but I.
I think from our view on the office front.
There is still the opportunity to have certain examples like we had in the fourth quarter.
Sort of a mixed sale leaseback, where you might pick up in office that you underwrite the entire group it hasn't happened quite as much as we expected during the year, but.
Was a differentiator for us in that transaction with the as the restaurant operator in.
Nearly everybody was focused on that piece of it and our willingness to be creative and rapid into the master lease and have that exposure was was important for us.
I think here and there it can continue to prop up and then if there was a larger diversified portfolio that would also be fine in.
In General we did take a hard look at the office space again, and leading up to our board meeting and our real estate investment Committee.
Hadn't hadn't really seen anything that particularly.
Was attractive.
Relative to the broader opportunity set and some of the other property types and we obviously are continuing to be cautious. So we didn't want to make we want to make sure we weren't missing anything but.
Didn't really find anything that was a particularly good fit there and then as we just continue to look at our own portfolio. We would expect one office sale later in the year.
We'll talk about that when we get there.
But otherwise just continuing to monitor the utilization levels and the tenants that way. So that's where we are in office at the moment.
Got it okay. Thanks.
Yes.
Yes.
Thank you for your question.
The next question comes from the line of Kim bin Kim Chin. Please proceed.
Thanks, Good afternoon.
So Chris coming out of IPO over a year ago.
I mean it.
Guys hit your stride in the cost of capital when you moved in one direction improving.
And lately and obviously that kind of reversed so.
The new public CEO I was wondering if you had any high level observations are lessons learned and how you think about.
The funding your business.
And the reality of where your cost of capital isn't as quite isn't quite as attractive.
Yeah, absolutely I mean sort of talked about it a little bit earlier, I mean from our view.
There is always a very intense focus on on the risk adjusted spreads that we're investing it in <unk>.
Really that changes each and everyday depending on what's going on with with share price and whether we're issuing equity or where the debt markets are and whatnot.
And you know who've seen some spread compression there I think where we sit today we.
Feel like some of the choices, we made to maintain a low leverage profile and have a lot of flexibility there to be you know what.
Five one times this quarter and still having the ability to go to our target in the mid fives.
Gives us that cost of capital flexibility and having capital on hand to continue to invest in and then.
As we move forward, we really need to.
Continuing to think about and make sure that the spreads were putting on the board for Q1, and Q2 makes sense both from a risk adjusted perspective.
And from a.
From a capital markets perspective, so it's really about using all those tools that we gained by coming public and adjusted on the on the in real time, and that's a big part of what our acquisition team and John and the investment Committee are always focused on is is not only where our capital was priced when we raised recent blocks are aware, where we are going to be investing that 98.
120 days out and so it's a dynamic process and one that we continue to adjust to.
And we feel good that where we are today and where our equities acquisition opportunity set lies in resides that we can hit those acquisition goals based on what we see in the market without taking any outsize risk and changing our acquisition parameters and so that gives us some good confidence going into the year.
And implicit in your guidance are you assuming leverage.
Stays relatively flat.
I'll, let Brian jump in there.
Sure.
I'd say, we're assuming that leverages is in about the mid fives.
Okay.
Last one from me.
Our coverage ratio for your restaurant.
<unk> declined a little bit just wondering if you can provide some details around that.
Sure.
I had a conversation with our credit team on that.
Really what we saw just during the quarter and the numbers Youre seeing printed there just as a reminder, our because there's a lag in reporting our Q3 numbers from the tenants.
And really what we saw was a little bit of a reversion from the fast food or casual or quick service side, there with those guys were running.
And in aggregate more of like a four times coverage, which is astronomical and some of our experience and I think they just.
With a little bit of a slowdown in drive thru business was came back to like a little bit of a high threes zone and that saw the portfolio adjustment at.
By the.
0.3 that you referenced in.
From our perspective 332 times coverage is still exceptionally strong and we'd be.
You've been comfortable below that but that was just a little bit of change that we.
You heard from our tenants during the quarter.
We talked a little bit about sort of cap rate compression I guess I just wanted to do many on the industrial space specifically thanks.
Mhm.
Hi, John .
Right I would yeah I would say.
We continued to see at least in terms of the type of industrial that we traditionally have gone. After we're looking at been fives overall in terms of the industrial space, They're still continues to be some opportunities.
In a high Fives Love sixes, we also look at some things in the low five but overall I'd say sort of the average that we're looking at for the types of things that we we go after them like rock portfolio, it's probably more than I said <unk> mid five ranch.
Right and then you know the other question was you know obviously, you've talked about looking different asset classes.
You know I thought of before that Youre doing but would you also look at ground leases is that something that you guys have looked at in the past that you would consider just curious what your thoughts on on on ground leases.
Yeah, we've done a deep dive on ground leases it actually was a topic at our board meetings and investment Committee recently.
It's something that we think it's really interesting, but it's one for US right now that we are really only looking at on an opportunistic basis, we have a handful in the portfolio already but nothing significant.
It's a material to talk about there, but you know as we come across potential opportunities. We certainly are looking at them, but it's not something that we're currently thinking about is something more programmatic.
Right that's it for me thanks, so much.
Thanks right.
[noise], Thank you Mister cabinet.
Once again, ladies and gentlemen to ask a question. Please press dark televise morning.
Again to ask a question I start.
[noise], Yeah, no problem up questions on the line a kitten burrows.
Please proceed.
Hi, again could you just go through you mentioned the split of property types for acquisitions and 2021 was over 50 per cent industrial maybe like mid twenties for retail in health care with just a little restaurant Kid goes to you. How you expect that to change this year and what will drive it is it just where the opportunities are cap right.
Differences or something else.
[noise] yeah, absolutely. So we were as you said about 50% industrial I would probably expect it to be reasonably in line I mean.
By virtue of some of the industrialized that's being a little bit chunkier on a on a perhaps like basis.
That that sounds that shows through pretty well restaurants was pretty low at 4% that probably move.
Moved its way up with just some of the things that we've been thinking about in the pipeline and whatnot and then as we continue to be focused on sort of a small one awesome retail investment grade program that that could also have a little bit of movement. There at the moment John reference that we're definitely focus and looking for more health care opportunities but.
But don't have any specifically in the pipeline so that could be a laggard and I think that's that's probably more of a supply issue on that front with sort of our unique focus I'm I'm I'm a few different verticals. There. So I would expect industrial to be consistent health care to perhaps be a little bit on the low side in restaurants, and retail maybe climbing a little bit.
And then just on the dispositions I know you mentioned earlier that you could dispose of an office property. This year, maybe he could you go through the other potential dispositions that are anticipated and guidance and would you say that it's more a function of kind of portfolio management, rather than necessarily funding acquisitions.
And maybe that is correct, yes, sir.
Characteristics, Yeah, that's <unk>, you're gonna have that absolutely. So no I agree I agree. It's it is more of a portfolio management exercise uhm, so embedded in our thinking and disposition plan for the year is that went off this asset and then kind of consistent with 2021, a few restaurant assets that.
<unk> and master releases that might be on the weaker side, an opportunity to type nose up and and bring our coverage ratios up a little bit further and then we're also looking at selling two of our vacant assets as well and so those would sort of round out the with this bill plan is where the where the teams. That's today and then we continue to think about others.
But I think that company purposes, the guidance range, we gave you.
Got it okay. Thanks.
Yep.
Thank you for your service.
Yeah, no additional questions waiting in the queue I will now pass the conference at two Christopher Nikki for closing remarks.
Wonderful. Thank you so much I appreciate everybody, taking some time to hear what was a very exciting and fulfilling your here I brought stone at least we're very excited about where 2022 is go in and look forward to seeing you all soon.
Either in person on some of the conferences or on the queue wanderings call and they will talk to you soon thank you.
Ladies and gentlemen that concludes the Boston at least fourthquarter countries call enjoy the rest of your day.