Q1 2022 Ladder Capital Corp Earnings Call
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Okay.
Okay.
Good afternoon, and welcome to ladder capital Corp's earnings call for the first quarter of 2022 as a reminder, today's call is being recorded.
This afternoon later released its financial results for the quarter ended March 31 2022.
Before the call begins I'd like to call your attention to the customary safe Harbor disclosure in our earnings release regarding forward looking statements.
Today's call May include forward looking statements and projections and we refer you terminals recent Form 10-K for important factors that could cause actual results to differ materially from these statements and projections, we do not undertake any obligation to update our forward looking statements or projections unless required by law.
In addition, later will discuss certain non-GAAP financial measures on this call, which management believes are relevant to assessing the company's financial performance. The company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP Steve.
These measures are reconciled to GAAP figures in our supplemental presentation, which is available in Investor Relations section of our website.
At this time I'd like to turn the call over to ladders, President Pamela Mccormack.
And good evening everyone.
This time last year, we described our goal for 2021 to.
To restore our earnings back to a level that comfortably covered our cash dividend by deploying the outsized cash we built in 2020.
While loan payoffs during that tumultuous year confirm the strength of our underwriting and real estate valuation skills.
Our ample liquidity with limit earnings until those payoffs were replaced with new investments.
Our disciplined deployment of that capital led to successive earnings growth in each quarter of 2021 and full dividend coverage by the fourth quarter.
Today, 75% of our balance sheet loan portfolio is now comprised of newly originated loans.
We expect our strong loan originations momentum accompanied by significant improvements in our capital structure to benefit our shareholders in the quarters and years ahead.
For the first quarter of 2020 to ladder generated distributable earnings of $31 $5 million or 25 cents per share.
We continue to drive letters earnings and portfolio growth with another strong quarter of balance sheet loan originations.
In the first quarter, we originated $732 million of loans, including 19 balance sheet loans totaling $677 million with more than 25% of those originations made to repeat latter borrowers.
80% of first quarter originations were either multifamily or mixed use assets with a significant portion of the mixed use assets, having a multifamily component.
We also continue to have a strong pipeline of additional loans under application.
As both Paul and Brian will discuss in more detail later is positively correlated to a rising rate environment, both by way of our large and growing portfolio of floating rate loans as well as our significant base of fixed rate liabilities.
Our balance sheet loan portfolio continues to be primarily comprised of lightly transitional middle market loans with a weighted average loan to value of 68% and a weighted average yield of five 4%, 5% excluding exit fees.
Further as a result of the significant loan payoffs, we received our hotel and retail concentrations in the balance sheet loan portfolio is now down to five 5% and five 6% respectively.
As for our real estate portfolio. It continues to produce double digit returns on equity from net operating income primarily generated from our net lease portfolio.
Our distributable earnings in the first quarter was supplemented by a $15 million net gain from the sale of two net leased assets.
Presenting a profit margin of over 20% over our underappreciated basis in these assets.
As of March 31, our securities portfolio totaled $663 million down from over $700 million in the fourth quarter as we continued to reallocate capital into our balance sheet loan business.
As of quarter end, we have total liquidity of approximately $700 million and our adjusted.
Leverage stood at one six times net of cash.
38% of our total debt is comprised of fixed rate unsecured bonds and 79% of our total debt is comprised of unsecured bonds and nonrecourse financings.
We continue to maintain a differentiated approach to our capital structure within the commercial mortgage REIT space through our strategic use of unsecured corporate bonds and ongoing pursuit of becoming an investment grade rated company.
In conclusion, we believe ladder has a simple and compelling story that offers somewhat unique value proposition to our investors. So I want to leave you today with a few key highlights.
First we have a strong and conservative underwritten portfolio of balance sheet loans with more than half of the portfolio comprised of multifamily and mixed use loans.
Second after demonstrating our strong credit skills and asset management skills through robust payoffs over 75% of our $3 9 billion balance sheet loan portfolio is now comprised of new loans originated in the last 12 months with fresh valuations and business plans.
Next we are beginning 2022 with a significantly enhanced capital structure with the vast majority of our debt comprised of unsecured or nonrecourse debt as we continue on our path to becoming an investment grade company.
And finally, we have positive earnings momentum from strong loan originations enhanced by a rising rate environment.
With that I'll turn the call over to Paul.
Thank you Pavel as discussed in the first quarter ladder generated distributable earnings of $31 $5 million or 25 cents per share our originations and pipeline remain very strong and our capital structure remains anchored by a conservative combination of unsecured corporate bonds nonrecourse yellows and mortgage debt.
Our best in class capital structure had been recognized by the rating agencies with corporate credit ratings, one not from investment grade from two of the three rating agencies.
As of March 31, we had total liquidity of $698 million and our adjusted leverage ratio stood at one six times net of cash.
Further 85% of our capital structure was comprised of equity unsecured bonds and nonrecourse non mark to market, though.
Our three segments continued to perform well during the quarter.
$3 $9 billion balance sheet loan portfolio was 93% floating rate diverse in terms of collateral and geography with less than a three year weighted average remaining maturity.
During the first quarter loan origination activity outpaced payoffs as we added a net $306 million in balance sheet loans.
The portfolio continues to perform well and we continue to feel positive about the underlying credit of our freshly originated loan portfolio.
As Tom will discuss.
75% of our balance sheet loan portfolio was originated in the last year floor set at the time of origination.
Therefore, our interest income directly benefit from any rise in interest rates has.
Benefited complemented by our liability structure of which over 50% was fixed rates, including $1 6 billion of unsecured corporate bonds with our nearest maturity in October of 2025.
Yes.
$1 $1 billion real estate portfolio continues to perform well and includes 158 net lease properties, representing approximately two thirds of the segment.
Our net lease tenants are strong credits primarily investment grade rated.
We're committed to long term leases with an average remaining lease term of over 10 years.
As Tom will discuss the sale of two net lease properties. During the first quarter produced a net gain of $15 million and generated a combined IRR over 16% during their respective whole periods.
Turning to our securities portfolio as of March 31, $663 million Securities portfolio was 86% AAA rated 99% investment grade rated with a weighted average duration of approximately two years.
93% of our portfolio is floating rate and.
And therefore also positively correlated to a rising interest rate environment.
Further the portfolio continues to benefit from strong natural amortization, and therefore liquidity as the majority of the positions of front pay bonds.
As of March 31st our unencumbered asset pool stood at $2 8 billion and 77% of the pool is comprised of first mortgage loans and cash, thereby continuing to provide us excellent financial flexibility.
During the first quarter, we repurchased 55000 shares of common stock at a weighted average price of $11.13.
We have $43 $5 million remaining under our $50 million board authorized stock repurchase plan.
On depreciated book value per share was $13 52, a quarter end or GAAP book value per share was $11 81 based on $127 2 million shares outstanding as of March 31.
We declared a <unk> 20 per share dividend in the first quarter, which was paid on April 15.
And for more details on our first quarter operating results. Please refer to our earnings supplement which is available on our website as well as our 10-Q, which we expect to file tomorrow.
With that I will now turn the call over to Brian .
Thanks, Paul.
We're happy with the results from the first quarter seeing a fourth consecutive quarter of increased distributable earnings as credit spreads widened starting in the fourth quarter of 2021, we took full advantage of prevailing market conditions and focused on originating mortgages secured by newer and higher quality real estate assets at the most attractive yields we've seen in <unk>.
Ours.
Assuming the fed does move ahead with the market narrative several increases to the fed funds rate over the next six months, we would expect our earnings per share to continue to rise in the quarters ahead ladders earnings are positively correlated to rising one month indices for LIBOR and so forth.
During the first quarter. The one month LIBOR index moved up from 10 basis points to 45 basis points, while the fed hike the fed funds rate by just a quarter of a point.
Well two additional consecutive 50 basis point hikes in the second quarter was nearly unimaginable just three months ago. It now seems likely.
If one month LIBOR were to follow that logic and rise by 1% to 145% by the end of June rough math would indicate that our third quarter net interest margin should also increase by about <unk> <unk> per share.
It's also helpful to note that just four weeks into the second quarter. One month LIBOR has already increased by 30 basis points to 0.75%.
Moving onto our products, we feel particularly confident in our inventory, having essentially recalibrated our asset base over the last two and a half years, because we had shorter maturities going into 2020, we received $2 5 billion in bridge loan pay off since the first quarter of 2020.
This figure speaks volumes as to how strong our credit skills are.
Okay.
Over just the last 14 months, we've originated approximately $3 $3 billion in Newbridge loans, just as rates begin to began to rise in inflation started to rates higher and we started to sort out the post pandemic economy in the so called new normal.
Our origination efforts were supported by our highly enhanced capital structure.
Today, we are far more loans on multifamily and mixed use properties than we have had in the past with less retail and hotel loans.
Our securities portfolio has been greatly reduced and it's paying off rapidly while our highly curated real estate portfolio has shown incredible resilience under difficult market conditions.
If rates do rise as expected, we think our sales of real estate may slow down after the second quarter and but our net interest income from our increased loan portfolio is ready to step in as the workhorse of our earnings engine.
To wrap things up today I'll, just say that the fed is in a tough spot these days and an incredibly volatile world.
Given their dual mandate and then the economy supporting the lowest unemployment rate ever in the <unk>.
Highest rate of inflation in 40 years, it would seem that the fed has little choice, but to raise rates into a slowing economy.
With that backdrop, and our large component of long dated fixed rate liabilities ladder is positioned to benefit greatly from rising short term interest rates.
Rate hikes from the fed should increase at the earnings at ladder and by extension allow us to distribute more of our earnings to our shareholders in the quarters ahead.
If we get any help at all from the loan securitization business that will just add to what is already a very positive earnings picture.
I'll now turn the call over to Q&A.
Yeah.
Thank you at this time, we will be conducting a question and question and answer session.
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One moment, please while we poll for questions.
Our first question is from Jay Cumani Offtake EW. Please go ahead.
Thank you very much.
Just curious about your view on the state of the commercial real estate market.
Overall do you expect borrowers in the current market to be able to handle.
Higher rates as they face debt maturities. This year typically there's about 400 billion of commercial mortgage debt maturing each year, just wondering your thoughts on the likelihood.
Potential uptick in commercial real estate loan defaults.
Thanks, Dave This is Brian .
Think that they will be able to handle it I mean, I think I don't think.
The world was existing in a place where thought interest rates were going to stay at extraordinarily depressed levels for an extended period of time.
That said I do think that there are some changes that are that we've undergone in the sector.
There I believe theyre not its not.
Broad brush against commercial real estate, it really depends what kind I don't think apartment.
Loans coming due should have any problems unless there.
Rent controlled maybe.
Doesn't make a lot of sense, but I think that theres a lot of delinquent rents there due to the eviction moratoriums and those could become problematic. If a maturity date comes up and the tenants in the building have nine or 10 months of rent that they haven't paid but other than that like newer apartment buildings that are not rent control around stable.
I shouldn't have any problem at all because.
The tailwind from the inflation side of that as a shelter costs or just rising and as housing prices rise apartment rents rise with it a couple of exceptions, so that certain cities.
And it's almost like a grid at this point hotels should be doing okay.
Too many people are leaving the country, although as gasoline goes up in costs, sometimes that can affect that part also I think the office market is trying to find an equilibrium point between being.
Being leased and cash flowing and being used and occupied and I think that theres going to be.
A hybrid version of that which so the office market should probably be okay.
I am a little concerned about the ancillary businesses away from the office markets, such as the delicatessen pizza place and and the drugstore downstairs in some buildings. So it really will.
There will be winners and losers here.
I think the grocery store has gone up in value and most people understand the utility of it as opposed to just delivering everything through.
And Amazon van so.
At this point rates are not terribly high so they should be okay.
The fed the fed has two mandates as I said, one is unemployment and they've got the lowest unemployment ever so thats fine and the other one is price stability and they are not even in the neighborhood of having prices under under control. So if they really do attack that.
With short term interest rates, then I think there is going to be another part to this answer down the road a little bit because when I look around the general public and they always say the consumer is fine, but I don't know who the consumer is the consumer if he is rich is fine or feeling the housing spine or a stock portfolio, but if he is not very wealthy and doesn't.
On the home and rents and has a car that goes to work.
Things that are really bothering me as far as their abilities to hang in there will be energy prices gas gas food and rent and there I know the headline of inflation of eight 5%, but I think all three of those are significantly higher than eight 5%.
Thank you very much in terms of the economic outlook, there seems to be a decent probability of a recession over the next say 18 months have you adjusted any asset management policies increased surveillance increased dialogue with borrowers how do you overall think the company would be positioned.
We are aware of that and we do believe that will happen the word recession needs to have some degree of attached to it. We don't think at this point, we're expecting a severe recession, which means if you're under 45, you probably don't know what I'm talking about unless you've been reading a lot of books.
A refreshing isn't necessarily a bad thing.
If it's a normal part of our business cycle and I think it's finding growth shrinks or goes negative for a few quarters.
Not terribly problematic I don't I don't think of this recession when it may come as.
As an echo to 2008 or an echo too.
The pandemic downturn that we saw so I think the one before this was really around 1998 1999.
One I would look at so I don't think a recession is something that should be feared but yes. It is something that should be dealt with I think equity returns in a recession don't do as well, but that returns tend to do pretty well.
Thanks for taking the questions.
Sure.
Thank you. Our next question is from Ricardo Chinchilla with Deutsche Bank. Please go ahead.
Hey, guys. Thanks for taking the question I was wondering if you could please comment on how your conversations with the raising your coffee bar over the last couple of months and what are the main milestones towards that goal that you guys have all become investment grade.
Sure. This is Paul.
We have ongoing conversations with the rating agencies pretty frequently these days and specifically with two of them Moody's and Fitch.
Our upgrade considerations are primarily quantitative in nature and it generally means more unsecured corporate debt on or as part of our liability structure. So we're a big believer in the use of unsecured corporate debt for the flex flexibility reasons and various other reasons. So.
It's primarily quantitative in nature of the upgrade considerations and they also like our internal internalized structure and significant insider ownership are aligned we are with that with shareholders and bondholders. So the conversations with all three rating agencies I'd like to say continue to go on and go up.
Perfect. That's very helpful. Thank you Caroline.
Yeah.
Yeah.
Ladies and gentlemen, just a reminder, if anyone would like to ask a question Youre welcome spray Star and then one.
Our next question is from Eric Hagen of <unk>. Please go ahead.
Hi, Thanks, Good afternoon harping on a little later.
A couple from me.
First just regarding underwriting and credit what variables would you say your most discerning with respect to right now which is maybe.
A little different or wishes evolves.
Overtime.
And then in the net lease portfolio can you remind us if theres any embedded rent increases in there.
Okay, I'll start the answer, but I'm going to Rob parameters on where those asset management, so I'm going to ask him about the net lease.
And I think that's going to be a combination, but as far as the underwriting goes and how we are originating at this point.
We.
We felt in as the CLO market was moving very comfortably in 2021.
We felt that multifamily.
Loans were being bid to aggressively buy.
By originators targeting close around the fourth quarter that changed and spreads began to widen and I think a lot of people thought that.
Okay.
That was just a year end phenomenon with some supply side concerns.
Didn't feel that way, we elected at that point to make a decision to deliberately target what we had not been targeting we werent avoiding multifamily, but we werent targeting it either but in the <unk>.
Fourth quarter of 'twenty, one as well as the first quarter 'twenty, two and including the beginning of this quarter. We have targeted a good part of our effort into originating newer products apartment and apartment like meaning mixed use building with a downstairs retail, but apartments upstairs and I think we actually originated about 85.
5% of our loans.
With that kind of a profile, which is starkly different than the prior three quarters in 2021.
But anytime you go into a recession and we've been through plenty of them you have to really kind of look at replacement value and get back to basics.
Dollars per foot matter.
Alternative use and also how much land is available around you.
And also the underlying economics, I think right now we're dealing with big city economics that need to be seriously considered.
Before we simply assume that the cities of San Francisco, Los Angeles, Chicago, and New York are going to be able to elevate ranks as as they see fit and <unk>.
And so until they get some of the social questions out of the way I think that that's a cautionary tale too. So I think we've always started with the big filters, Eric I don't know if you are that familiar with us, but the underwriting process at ladder hasnt changed other than perhaps the assumptions going forward have changed.
So, whereas we might have done an 80% loan to cost acquisition before it's probably 75 now.
Where we might have done a hotel expecting it to do very well we might avoid that completely at this point because we feel like it's the most cyclical of the product types.
We avoided malls.
For years and years and they are hitting a point now where I wouldn't say, we don't do malls, but I would say, we're a little more comfortable with necessity based retail and that certainly as indicated in our ownership of triple net properties.
<unk>.
And the last one industrial yes, we're very comfortable as is everybody else with that product types, but that that too will get overbuilt at some point so for the most part do you think.
Doesn't really matter, where we are today and that is where we are in three years. When the loan comes due so we have to look ahead and as we've indicated we do see a mild recession. We believe next year. So we're a little more conservative than we were and so far expressing it in terms of shorter maturities lower ltvs.
Now if you look at our portfolio LTV it might be a little higher than that keep in mind is mostly multifamily now so that would be an explanation for that and.
We're just not doing too many stories, where execution is at a premium we're really underwriting basic real estate right now and Thats, usually the rate move as you go into a bit of a slowdown.
And Rob do you want to try to handle that another one of our pumps.
Sure Eric This is Rob Perelman.
The Triple net book is there.
<unk> in rents up.
About half the book.
Annual rent steps and in the half.
Flat to stepping every five years under certain leases.
Yeah.
That's really helpful. Thank you guys very much.
Sure.
Anybody else operator.
Hello.
Sure.
Hello.
Yeah.
Yes. Please standby our next question comes from Matthew Howlett with B Riley.
Yeah.
Okay.
Hey, Thanks for taking my question, Brian here with <unk>.
<unk> basically two fed meetings here.
During the quarter, it made spectation or 50 bps each.
What what's not to prevent.
From latter raising the dividend.
<unk>, maybe more sense.
In the second quarter.
There's two questions. There one has to do with the direction and the other has an amount of that.
Yes, the second one I won't communicated dividend policy on an earnings call but.
To the extent that the fed does move 50 basis points in May and <unk> in June , which I actually think will happen what would stop us obviously I have to ask for the board's approval to raise the dividend in.
And I would imagine a nuclear bomb.
Stop that request, but other than that I would imagine we're going to try to start adding on to some of our distributions.
Yes.
So you should think of.
Adjusted EPS the dividend tracking adjusted EPS.
Lag a little bit by the or time, it's got equal it.
Yes sure Ryan.
We are shareholders and then we try to be shareholder friendly we thank our shareholders and very patient with us and our conservative.
Maneuvers that we've taken in the last two years strengthening the plan we laid out two years ago. It was almost exactly where we are today.
So we are now covering and we expect the fed to raise interest rates. Our net interest margin has been rising quarter. After quarter I think it was I don't know if its $56 million this quarter top line.
And obviously, we have that big.
Liability set which is fixed and rate, which should benefit us as floating rate rates rise. So yes, I would anticipate it obviously there is other things going on in the world. Besides the.
The fed moving interest rates, but we're having a little bit of a handoff session right now and our multifaceted earnings Division and.
We've been taking some gains as interest rates were low from real estate I'd imagine that will slow as time goes on and rates go up as you would expect but we expect we expect to handoff.
Earnings per tonne to the bridge loan portfolio, which is in terrific shape handle it right now and so we're very and we haven't really.
Mentioned, the conduit business much in a very long time, and I don't know that we shouldn't be mentioning it now either.
Because of that long duration fixed rate loans, but that used to be a very big moneymaker.
Later, and if the yield curve steepens as we expect that I think that can easily get back on stage here.
Certainly be interesting to see how that develops I know <unk> seen the.
Spreads are wide right now I would love to hear you.
Mentioned, the CLO market that you set up that cooperated that could even be better for you guys. Just walk me through the cash unrestricted cash is coming down which is a great thing how you look about how you look at.
Liquidity really is.
Grow your portfolio in the next.
Couple of quarters here at the CLO market doesn't cooperate if it does just walk me through how things progress.
Well I think that.
It's.
It's a complicated question, we're not overly concerned about the CLO market right now and the reason why is because we sort of switch the federal home loan bank out for the CLO market. We did two CLO one in June one in November so that is match funded for a reasonable period of time call. It a couple of years.
And we have we've added to our unsecured debt back at last year, where we now have despite the fact that we have 1 billion $6 50 coming due the earliest of which is the Duke of late 2025, the lowest rate.
Obligations, we've got outstanding are $2 $650 million one due in 2007 and the other during 2009. So that's about $1 billion three at an average rate of about four 5% and if the fed or inflation continues that's just going to turn into a big asset for for years to come.
Five six years.
So the CLO market is not terribly important to us and I think right now where we have unencumbered assets with close to $2 8 billion.
So we could.
Could enter the CLO market now obviously, we do enter it three times with $3 $900 million with three nine hundreds, but we also are paying a lot of attention to those rating agencies on how they feel about.
The mix of our secured versus unsecured and if we do want to become an investment grade credit.
Then I think we're going to have to keep to about a three times leverage.
Scenario, where I think a lot of our competitors have significantly more levered than that.
So this would be if we.
We did go in that direction, we would just issue another very large unsecured.
Bond offering, but we would keep those unencumbered assets just that way because thats really what that market entails.
I would also point out Paul mentioned with Fitch and Moody's that was their analytically, we understand what we would have to do to get there, but also the third one S&P.
Put us on positive watch yesterday.
And I think that's as a result of those unencumbered assets.
That's certainly encouraging.
The securities portfolio was can we just going to run down over time, just curious on that on that side of it yes, no. We don't needed at all I've said, a few times I think that goes to zero there occasionally in a world like this where the business.
Whipsawing market with people in the office and out of the office, sometimes you can pick up some pretty attractive.
Pieces of that and obviously with a total of about $700 million, it's not a lot.
But we have received I know $70 million in pay offs in the last two months and in that portfolio. So it is really short at this point I don't right now they are LIBOR based primarily because they're from 2019 most of them.
And right now.
We would like to see LIBOR catch up with where the two year Gallup Doctor and we suspect that will happen in a couple of quarters here.
Great. Thanks, Brian appreciate it sure.
Thank you. Our next question is from Chris Manuel of JMP Securities. Please go ahead.
Okay.
I don't know guys not transmitting to the other side here I don't know if you can hear us, but we can hear you.
Okay.
Oh.
Hello, I heard that you guys can hear me now.
Yes.
So I have a slightly different one on the dividend.
It's obviously, great to see distributor borrowings back to covering and exceeding the dividend, but I wanted to ask how the board thinks about the real estate gains when they are considering it are these more of a.
Consider it a recurring item or nonrecurring when theyre looking at the level to set that out and Bryan your comments on the real estate sales slowing in Tokyo or helpful of where you think that.
The earnings power is going to shift to ourselves.
Yes the board.
It looks at the entire business in its entirety and based on the amount of capital we have allocated to real estate or securities or cash for that matter.
But yes, I think that we we don't view.
The distributable earnings differently, if some of the gains come from real estate unless it's the end of our real estate gains, which we certainly don't think we were at.
We think we have extensive amounts of gains in that portfolio and we haven't done a full on sale to show the market that book, but I think for several quarters in a row here I think last year on May 26, $27 million in real estate sales I think will probably exceed that this year.
Don't know exactly where we are now but.
Second quarter, I can see a little bit into and I think we have a couple of sales here, but keep in mind, we're not actively trying to sell that we can refinance that portfolio as it comes due we like that portfolio and that is a very stable and recurring.
Income stream that generate double digit returns without having to recycle all the time so.
I would call us a very reluctant seller at times.
And so we so the board looks at the earnings of the company on a go forward.
We had an unnatural.
Distribution.
Natural gain that was a one timer then I don't think that we would obviously wouldn't wouldn't factor that into the go forward on dividends, we want to we don't want to be bouncing the dividend around at all we want to be just moving it in a single direction thats quite understandable and predictable so that no one's getting surprised by too much.
Great very helpful. Thanks for taking the question sure.
Yeah.
Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back to Brian Harris for closing remarks.
Yes ill just close by saying.
It's been.
Interesting time and coming out of what I consider are coming out of the pandemic, who knows if the virus like that but.
We indicated I think a long time ago, we thought this would take a couple of years and it did and I.
I would say that all of our higher rate financing that we entered into during the pandemic is going to be over with now that'll be another tailwind to earnings I think we singled that we signaled that in the past. So we look forward to a very very positive and the rest of this year, we do believe the fed will.
<unk> raising interest rates and we have positioned this company not just to survive it but to actually benefit from it we.
We are positively correlated in that direction and we are really looking forward to what lies ahead. So thank you again for staying with us and we hope to make you all very happy of this year.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
Thank you.
Okay.
Hum.
Yes.
Okay.
Yes.
Okay.
Okay.
Thank you.
Okay.
Yeah.