Q1 2022 WhiteHorse Finance Inc Earnings Call
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Good afternoon, My name is Britney and I'll be your conference operator today at this time I would like to welcome everyone to the Whitehorse Finance first quarter 2022 earnings Conference call. Our hosts for today's call are Stuart Aronson, Chief Executive Officer enjoy some Thomas Chief financial.
Officer today's call is being recorded and will be made available for replay beginning at five P. M. Eastern time, the replay dial in number is four zero to 22011 to two no pass code is required at this time all participants have been placed in a listen only mode and the floor.
There will be open for your questions following the presentation.
I would like to ask a question at that time. Please press star one on your telephone keypad, if you wish to remove yourself from the queue. Please press the pound key.
It is now my pleasure to turn the floor over to Robert Greenberg of roads and coal and company. Please go ahead.
Thank you operator, and thank you everyone for joining us today to discuss Whitehorse finances first quarter 2022 earnings results so far.
We began that would like to remind everyone that certain statements, which are not based on historical facts made during this call, including any statements relating to financial guidance may be deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Because these forward looking statements involve known and unknown risks and uncertainties. These are important factors that could cause actual results to differ materially from those expressed or implied by these forward looking statements.
Finance assumes no obligation or responsibility to update any forward looking statements.
Today's speakers may refer to material from the Whitehorse Finance first quarter 2022 earnings presentation, which is posted on our website. This morning.
With that allow me to introduce Whitehorse finances, CEO Stuart Aronson Stuart you may begin.
Thank you Rob good afternoon, everyone and thank you all for joining us today.
As you're aware, we issued our press release this morning prior to market open and I Hope you've had a chance to review our results from the period ended March 31, 2022, which can also be found on our website.
On today's call I will begin by addressing our first quarter results and current market conditions, and then Joyce and Thomas our Chief Financial Officer will discuss our performance in greater detail after which we will open the floor for questions.
I'm pleased to report a strong first quarter performance for 2022.
Q1, GAAP net investment income was $8 $5 million or 36 eight cents per share.
Core NII after adjusting for zero point $6 million capital gains incentive fee reversal was approximately $7 9 million or $34.04 per share.
<unk> per share at the end of Q1 was $14.99 representing a decrease of 11 cents from Q4 2021.
This decline was primarily due to realized losses associated with the sale of our investment in Grupo Hemo, which we noted earlier in our portfolio update press release on May three 2022, partially offset by mark adjustments from the restructuring of play Monster.
And net mark to market gains across the portfolio.
Turning to our portfolio activity for the quarter gross capital deployments in Q1 totaled $83 6 million, which eclipsed our previous record for the highest level of gross deployments in any first quarter in our history.
Of this amount $69 5 million was funded into six new originations and the remaining $14 1 million was funded into add ons of existing portfolio investments.
Gross deployments were partially offset by repayments and sales of $45 1 million, primarily driven by five full realizations and partial sales in several credits as we look to create capacity and optimize the bdc's portfolio for higher yielding credits, we're seeing in our pipeline.
This all resulted in net deployments of $38 5 million.
As a result of these deployments and repayments along with other factors at the end of Q1, the company's net effective leverage was 130 times compared to $1 three one times in Q4 of 2021.
At this leverage level, we are modestly under our $1 three five times limit and well within our target range.
As anticipated and discussed in our last earning call. Many of the Q4 'twenty one delayed repayments have begun to come through and in addition to the payoffs and sales that occurred in Q1. The company has already received an additional three full repayments totaling 45 million subsequent to quarter end.
Of our six new originations in Q1, four were sponsor and two were non sponsor with an average leverage level of four seven times, which is relatively modest when compared to other middle market lenders.
Note that all of these deals were first lien and at the end of Q1 more than 96% of our debt portfolio was first lien and 100% with senior secured.
We continue to look to add second lien loans to balance our portfolio, but it found few that are within our conservative risk return parameters.
Given the shortage of second lien loans that meet our risk return standards. Our portfolio is now approximately three 5% second lien loans compared to our target level of up to 15%.
As I shared on the last call. So long as our portfolio remains heavily concentrated in first lien loans, which have lower risk profiles, but also lower returns than second lien loans.
We expect to continue to run the BDC up to 135 times leverage in order to help the BDC consistently earn its 35 and a half cent quarterly dividend.
With that in mind, I'll now step back to bring our entire investment portfolio into focus.
Although we had strong net originations during the quarter the fair value of our investment portfolio was $800 million at the end of the first quarter a decrease from $819 million at the end of Q4 2021.
The decrease was a result of asset transfers to the S. Trs JV.
Partially offset by net mark to market increases in our portfolio.
The weighted average effective yield on income producing investments was nine 2% at the end of the first quarter slightly above the Q4 level of nine 1%.
We are pleased to report that as of the end of Q1, we had no debt investments on non accrual status.
This was a direct result of our decision to exit our distressed investment in Grupo hemo as well as our restructuring efforts in play monster that occurred during the quarter.
As we disclosed on May three 2022, we exited our position of Grupo Hema by a sale, which resulted in net realized and unrealized losses of $6 9 million in Q1 on a likes to date basis after accounting for both principal and interest payments over time, we recovered approximately 75%.
<unk> of the capital invested in Grupo Hema.
Resulting in a rare credit loss in our BDC history.
Although we are disappointed with the final outcome of Hema, we concluded the best option was to exit the deal.
Just a complicated situation with a number of contingent liabilities and instead focus our resources in managing our directly originated assets that make up the majority of our portfolio as well as sourcing future originations.
Regarding play Monster.
As shared during last quarters call Whitehorse in one other lender took control of the company.
Play Monster deal was restructured in Q1 with our prior loan replaced by a new interest bearing term loan in addition to preferred and common equity.
We expect the process of turning around the company and exiting to take several years and we are.
Main optimistic of our ability to generate a strong recovery over time.
As a result of the H I G capital family, we have access to HIV private equity professionals to help us manage this investment at the end of Q1 'twenty two.
We have seen some improvements, which led us to mark up the investment value to the equivalent of 75% of our cost basis from 65% at the end of Q1 'twenty one.
The vast majority of our portfolio companies have navigated supply chain and labor disruptions, well and have generally been able to paas cost increases through to their customers given the modest leverage levels that we underwrite our loans to both from an EBITDA as well as an operating cash flow perspective, we expect the majority of our portfolio.
Leo companies to be able to service our debt in this rising interest rate environment as reference rate as reference rates rise 200 basis points or even more.
Holistically, our own investment portfolio is well positioned to benefit from such rising interest rates given that approximately 99, 6% of our debt portfolio is comprised of floating rate debt investments.
We believe the conservative nature of our underwriting process, including the modest leverage levels to which we underwrite our loan investments is a key differentiator versus lenders with higher levered portfolio companies. They may experience greater difficulty servicing debts as interest rates increase.
Additionally, we continue to successfully utilize our joint venture with Str's, Ohio, which generated investment income to the BDC of approximately $2 6 million in Q1 as compared with $2 2 million in Q4 of 2021 during the first quarter, we transferred $82 seven.
Investments to the Str's JV, including six new deals five add ons and the remaining portion of three deals previously transferred.
In exchange for cash of $57 7 million as well as $25 million in kind of investments into the JV.
The fair market value of the Jv's portfolio.
Was $312 8 million as of March 31.
The Jv's portfolio had an average unlevered yield of seven 9% compared to the end of Q1 percent sorry. It was seven 9% at the end of Q1 consistent with the Q4 'twenty one average yield of seven 9% as well with the portfolio size at that time of $2 $59 5 million.
The Jv's portfolio is currently comprised solely of first lien senior secured loans.
We remain pleased with the income contribution from the JV. The JV has produced an average annual return on equity in the low teens. We believe the JV supports higher returns for shareholders and is particularly relevant given the current market backdrop.
As discussed in our last call, we closed an incremental $25 million commitment to the JV and at the beginning of Q1, which translated into approximately $62 5 million in additional investment capacity for the JV I do note. However that as we stated in our prior earnings call nearly all of this additional capacity has already been.
Put to work demonstrating the continued strength of our origination activity.
Given the Jv's return on equity we continue to consider further funding commitments to the JV as we seek to increase our exposure to this highly accretive earnings stream.
In the meantime, the market remains quite Dizzy and our pipeline for future deal flow remains strong.
The sourcing process is still competitive.
Particularly for on the run sponsored deals where pricing leverage and documentation terms have returned to pre COVID-19 levels. Despite the macro pressures such as inflation and international conflict.
Acumen, Taishan terms and EBITDA adjustments in the off the run sponsor market or the smaller sponsors are less aggressive than the on the run sponsor market.
We continue to have significant off the run sourcing advantages in the marketplace due to our presence in 12 regional markets.
Consistent with prior quarters. There was also less competition for non sponsored deals where we continue to source attractively priced transactions at modest leverage levels.
We can.
We expect our pipeline activity levels to remain high we generally have a cautious approach and continue to underwrite to conservative downside scenarios, including a potential recession in the next 12 months.
Thus far into Q2 the company has closed two transactions and currently has visibility for over eight additional mandated new deals and add on transactions. Although there can be no assurance that any of these will close.
This exceptional pipeline growth and these mandated deals are enabling the BDC to drive portfolio growth and expand our investment in the JV, which will ultimately lead to higher income and greater coverage of our dividend.
I know however that the platform has more origination activities in the BDC can accommodate and given our goal to source higher yielding loans.
Some of these deals in pipeline may not make it into the Bdc's portfolio as we continue to manage our leverage level at a targeted Max of 135 times or below.
To that end the BDC has turned down for origination opportunities during the first quarter due to capacity constraints.
In closing, we are well positioned to continue executing our three tiered sourcing approach and rigorous underwriting standards for the remainder of this year and beyond and we're highly focused on sourcing higher yielding opportunities to generate additional investment income to further support our dividend.
Our portfolio as a whole remains very high quality and healthy at.
At the conclusion of the first quarter, we are very optimistic looking forward.
While we do remain cautious about cyclical industries, the lingering effects of the pandemic.
More in the Ukraine as well as the competitive state of the credit markets. We believe we have built a very strong team and a solid sourcing and underwriting process further the additional capital we raised late last year and the incremental contribution to the JV and the full effect of earnings from the deployments in Q1 provide a strong tailwind for our financial performance.
<unk> moving forward.
With that I'll turn the call over to Joyce for additional performance details and a review of our portfolio composition chosen.
Thanks, Stuart and thank you all for joining today's call.
During the quarter, we recorded GAAP net investment income of $8 5 million or $36 eight per share. This.
This compares to $7 5 million or $33 one per share in the fourth quarter of 2021.
Core NII was approximately $7 9 million or $34 four per share after adjusting for a <unk> 6 million capital gains incentive fee reversal.
This compares to Q4 2021 core NII of $10 3 million or $32 <unk> per share and a quarterly distribution of $35 <unk> per share.
Q1 fee income increased slightly quarter over quarter as <unk> 5 million <unk> 3 million in Q4 <unk>.
The increase was due to higher prepayment and amendment activities during the current quarter.
For the quarter, we reported a net increase in net assets, resulting from operations of $5 $7 million, which is a $2 $6 million increase from Q4 to 'twenty one.
Our risk ratings during the quarter showed that 91% of our portfolio positions carried either a one or two rating consistent with the prior quarter.
As a reminder, a one rate indicates that company has seen its risk of loss reduced relative to initial expectations at two rating indicate accompanied performing according to initial expectations.
Regarding the JV, specifically, we continue to grow that investment.
Eric mentioned earlier, we transferred six new deals five add on transactions and the remaining portion of three previously transferred deals aggregating to approximately $82 $7 million in exchange for a net investment in the JV of $25 million as well as cash proceeds of approximately $57 7 million.
As of March 31, 2022, the Jv's portfolio optimizations in 33 portfolio companies with an aggregate fair value of $312 8 million compared.
Compared to <unk> 28 portfolio companies and a fair value of $259 5 million in Q4 'twenty one.
The investment in the JV continues to be accretive to the BDC earnings as we've noted in prior calls.
Yield on our investment in the JV may fluctuate period over period as a result of a number of factors, including the timing and amount of additional capital investments.
As an asset yoga and the underlying portfolio as well as the overall credit performance of the <unk> investment portfolio.
Turning to our balance sheet, we had cash resources of approximately $21 $3 million at the end of Q1, including $18 8 million and restricted cash and approximately $51 2 million of undrawn capacity under our revolving credit facility.
During Q1, we amended the terms of our revolving credit facility.
Similarly, upsize the credit facility to a total commitment size of $335 million.
This provided us significant flexibility as we accounted for timing differences between anticipated prepayments and originations and we still have a remaining accordion feature outside of the credit facility totaled $375 million should we so choose.
As of March 31, 2022, the company's asset coverage ratio for borrowed amounts as defined by the 940 Act was 173, 4%, which is above the minimum asset coverage ratio of 150%.
Our Q1 net effective debt to equity ratio after adjusting for cash on hand was 130 times as compared to 131 times in the prior quarter.
Before I conclude and open up the call to questions I'd like to highlight our distributions on.
On March 3rd 2022, we declared a distribution for the quarter ended March 31, 2020 to $35 five per share to stockholders of record as of March 25.
EBITDA was paid on April four 2022 marketing the company's 38 consecutive quarterly distribution.
This speaks to both the consistent strength of the platform as well as our resilience deal sourcing capabilities and be able to create a well balanced portfolio generating consistent current income.
Finally, this morning, we announced that our board declared a second quarter distribution of $35.05 per share to be payable on July 15 to stockholders of record as of June 28 2022.
This will mark the company's 39 consecutive quarterly distribution paid since our IPO in December 2012, with all distributions consistent the rate of $35 five per share per quarter.
We said previously we will continue to evaluate our quarterly distribution both in the near and medium term based on the core earning power of the portfolio. In addition to other relevant factors that may warrant consideration.
With that I'll now turn the call back over to the operator for any questions operator.
At this time, if you would like to ask a question. Please press the star and one on your Touchtone phone you may remove yourself from the queue at any time by pressing the pound key once again that is star Antoine if he would like to ask a question and we'll take our first question from Mickey <unk> with Ladenburg. Your line is open.
Yes, good morning, or good afternoon, Stuart and choices.
Want to start by thanking you for the depth of your prepared remarks, Stuart because it allows us to focus on the bigger picture without having to ask all these housekeeping question so without a mine.
Given your.
The long track record in the credit markets I'd really be interested in hearing your outlook.
For the rest of this year and going into next year in terms of the default environment, considering all the headwinds that we're facing in the credit markets.
Yes, Mickey good day, and a great question.
It's a complicated question I would tell you that there are.
Numerous headwinds that everyone is aware of rising labor costs rising raw material costs rising transportation costs.
Anything with oil as an endpoint is impacted.
While we have no direct exposure into Russia or Ukraine.
It turns out one of our company's uses a type of cooking oil that primarily came out of eastern Europe .
And prices of the cooking oil have been impacted.
By the war, so theyre now switching to different cooking oils.
And trying to deal with that so there are many headwinds, but what we're seeing across our portfolio.
Almost every single company is that those rising costs and headwinds are being absorbed by price increases that are being pushed through.
So I do believe we are in a.
Inflationary spiral.
I don't see it slowing down yet based on what's going on in our portfolio.
We have one portfolio company in the food business.
It is currently pushing through its fourth price increase on.
The price increases are involved in a reasonably significant.
At.
Whitehorse Bay.
Based on the insights that we get from our parent company H I G.
We do think that there is real risk.
Of recessionary environment.
Both Europe , and then ultimately the U S. Although Europe seems to be ahead of the U S. In terms of that ahead, meaning more pressure in Europe .
And we are underwriting all of our transactions to the possibility or even likelihood.
Of a recessionary environment within 12 months.
That means that since others are not doing that and others are not doing that.
We are at the moment.
Uncompetitive on companies that are cyclical or even moderately cyclical.
A lot of those deals come in.
Where is the leverage we offered was significantly lower than what we're seeing going on in the marketplace.
So we are surprised that some number of our competitors.
Do not seem to be underwriting to a cyclical downturn.
Even though we are right.
Right now we are focused on doing companies that are non cyclical.
Or likely cyclical.
And we have a solid pipeline of those transactions and then importantly in the face of the pressure of rising interest rates.
The average leverage we put on our deals historically is in the mid fours on an EBITDA basis in the mid fives on a cash flow basis, and so whether LIBOR or sofa is at 50 basis points or 350 basis points for those companies in general should be able to serve.
Our debt with no problem.
It's companies, who take on leverage of 657585 times that have a lot more exposure to rising interest rates. So we think our strategy of modest loan to value modest leverage and again leverage not only on an EBITDA basis, but on an operating cash flow basis.
<unk> has been preparing us well for what we see going on right now and what we expect to happen in coming years.
In terms of defaults linked to inflation.
There is nothing that we see on the horizon right now.
Companies in our portfolio are dealing with their individual credit realities.
But in the case of inflationary environment.
Again virtually every company has had success in passing through price increases.
Most of the companies are as short as Jason indicated performing pretty darn well.
I appreciate that.
Explanation of stored it's really helpful.
To follow up on your answer you have three companies, whose debt investments, which seem to be on credit watch PG Centaur Crown brands and <unk> is there any.
Anything thematic amongst those three related to your comments about inflation in cost inputs or are these more idiosyncratic issues to those three companies.
PG dental.
Dealt with.
Issues during COVID-19.
And is.
Still dealing with labor issues.
The owners of the company, who are trying to resolve.
The owners of that company has continued to support the company with additional equity.
And so we feel good about the ownership and their support.
Crown.
Serves commercial kitchens.
Restaurants are of course doing much better, but they also serve the commercial kitchens of hotels and cruise lines and hotels and cruise lines have not returned to normal yet.
So that company continues to have.
Pressure on the cash flows although they are doing much better than they were during the depths of COVID-19. The owner. There is also supported the company with.
With increased equity commitment.
As recently as the first quarter.
Sure fit.
As a company that sells through brick and mortar retailers.
And has had some supply chain issues.
They have pass through price increases as I indicated virtually all of the companies have.
But they are dealing with supply chain.
Limitations on timing of product arrival.
And that has had some impact so one way or another it all relates back to Covid supply chain.
Labor.
But they're very different situations among the three.
I understand.
Again, thank you for the explanation my last question relates to your comment about second the lack of second liens when we think about.
The broad H I G platforms are there opportunities that the BDC, perhaps to add another.
<unk> it could be things like.
Equipment, finance or ABL lending or even investing in CLO equity.
<unk> tends to be generating very high cash flows right now.
Is there any likelihood of those things occurring or are you just going to stick to your knitting and wait for the market to come back to you.
Well Mickey.
Largely out of investing capacity in the BDC.
So any new initiative that was targeted at putting a lot of assets on the books would be very difficult.
<unk> lending.
Well, we don't think that the returns are particularly attractive.
In those sectors right now from what we see.
Theres plenty of competition and pricing has been been bid down.
We see the best ROE that we're getting being the JV.
We are getting low to mid teens returns out of the JV and as the BDC is full.
We are no longer putting any assets with 500 pricing $5 $55 75 is not going into the JV.
JV at all and the JV is now positioned to take on higher returning assets with spreads from LIBOR 600 to LIBOR 650, So if anything I would say if we have available capital we may allocate a little more capital into the JV and increase the JV cash.
Those which as you've seen have grown strongly and has been a stable source of increased earnings for the BDC investor.
Yes, they certainly have and congrats on that performance.
Those are all my questions. This morning, or this afternoon. Thank you for your time, Thank you Vickie.
Well take our next question from Bryce Rowe with the Ham D Group. Your line is open.
Thanks, good afternoon certain choices.
Hi, Bryce.
Alright.
One maybe maybe just a follow up too.
The.
And around the JV and obviously, it's growing growing as a percentage of your portfolio.
I certainly appreciate the ROE is there is there a level at which you start to get uncomfortable.
With with the size of the JV relative to the overall portfolio.
The JV is well diversified the JV is all senior secured assets.
So the JV as an investment vehicle.
Is very consistent with the investing philosophy of the BDC. The only thing that is ultimately a pressure point is the 30% bucket for assets of that type that aren't compliant with.
The.
Overall guidelines of BDC investing.
And as a result.
There is a little more money because we want to leave a big cushion.
Theres, a little more money that we'd be willing to consider.
Putting towards the JV.
Probably something in the range of $15 million to $25 million.
But after that we'd leave the rest of that as cushion for the 30% bucket.
But again the JV as an entity is very consistent with our investing philosophy and very accretive for the shareholders of our BDC.
Okay Yep.
Makes sense.
Okay.
And then maybe shift to the to the rate environment and the impact on the BDC.
When you when you look at your portfolio can you can you remind us where the weighted average floor is.
The portfolio and at what point do you start to see some positive impact from higher rates.
Jason Thats all yours.
Price as it relates to the weighted average floor rate right now in the portfolio.
Consistent over the last couple of quarters to just above 1% at 131, 4%.
And the way to think about this I think Keith.
Every 100 basis points increase.
We will look to have that net interest income contribution of about $4 9 million.
So that is obviously inclusive of the additional accretion.
Additional interest income earned on our portfolio net of additional interest expense on our credit facility.
Okay, Okay, and Jason is the is the impact.
Lagged so.
This move above <unk>.
Love Your average floor here in the second quarter that will that will get reflected.
Starting in the back half of this year.
Yes, I think the way to look at it.
The a good portion of our portfolio does reset on a quarterly basis.
Okay. Okay. Okay.
I think I think that's it for me I think I appreciate all the commentary steward in Georgia.
Again, we.
Try to get feedback from all of you to understand what you want to hear from us.
Please continue to let us know so we can include.
As much transparency as possible in the public comments.
And once again that is star in corn, if you would like to ask a question.
Our next question from Robert Dodd with Raymond James Your line is open.
Hi, guys.
Repayment activity, obviously last quarter, you talked about elevated prepayment income in the first half of the year, obviously that didn't happen in Q1 with the market volatility et cetera. Some of that seems to have happened in Q2, you've already had $45 million in repayments do you expect kind of.
The same amount of prepayment income you were previously thinking which you didn't give us the number but conceptually cons.
Concentrated in Q2 or do you think the.
The environment is going to result in some people some borrowers waiting.
Or just sitting on that talent structures adult <unk>.
Prepaying a tool.
Given given where the market segments.
I think its the latter we have seen.
Several transactions.
Some private market and some involving specs that have unwound.
Due to market conditions.
And I think the pace of.
Prepayments that we might have seen in 2022.
Will be muted.
Compared to what they might have been.
Based on.
Series of things that are going on in the market right now that are leading to less stability.
I think we're going to still have a normal repayment stream.
And in a normal year.
30% of the assets in our pool repay and so I think I think that is a guess, but a decent guess for what we'll see over the course of 2022.
Got it got it thank you for that.
I'm kind of following up to prices question before it gets much more conceptual.
On the <unk>.
The NII sensitivity.
From your car you still receive that.
First income less interest expense Delta. So does that sensitivity that you gave that full point does that not include the potential impact of.
Increased income from the JV, which obviously structurally is the same with <unk>.
To the BDC.
A benefit.
If rates were to lies at the level of forward curves.
Two.
Robert That's correct. So this is looking at the BDC portfolio and not necessarily underlying to the JV.
It would be for their kind of access when looking at the JV portfolio relative to me.
Credit facility and then obviously in terms of just the timing to get that income.
Patriot it up to the BDC.
Got it got it I appreciate that last one if I can.
Yes.
So on the <unk> outlook, obviously includes the possibility of a recession.
Thank you for all the detail on that so if I could when you look at the full which is I mean, it's come back a little bit, but it certainly doesn't appear to be.
<unk>.
Forecasting any any material reduction.
<unk> 22, a year or anything like that what do you think.
The possibility is that we get to 'twenty three sometime there is a recession and the fed has kind of round tripped.
Fed funds at 50.
Well, we look like we guided by year end here.
Last question.
Any color would be appreciated.
Robert we recognize that there are forward curves.
But the forward curves accuracy is.
Sure.
Sporadic.
And so we are underwriting to a conservative downside.
We believe that the investors in the BDC.
Don't want volatility, which is why were in senior secured first loans lien loans for 96% of the portfolio.
And we are trying to make sure we manage we've always underwritten to a potential.
Repeat of the great recession within a couple of years of doing a deal. It's just we think we may be closer to that now.
Then we have been in prior periods and so we are modeling those in <unk>.
As soon as next year.
That happens will deferred change its policy.
It depends on what we're seeing with inflation.
There have been articles out that I've read about the risk of stagflation.
And that is certainly.
A downside risk we're aware of.
But of course, they are hoping does not happen.
But all I can say is.
We don't we don't take the forward curves.
Has anything more than one possibility for what may happen and we tend to take a more conservative view than the forward curves Mike.
Otherwise.
Implied.
I appreciate that thank you.
We have no further questions on the line at this time I will turn the program back over to our presenters for any additional or closing remarks.
Great.
Thank everyone for taking the time to listen in and ask questions and as always as we prepared remarks for future quarters. If there are things that you'd like to hear as a part of the prepared remarks, please let us know before the call.
That's both to the analysts into the public investors.
We're working hard to build a stable safe portfolio that earns the dividend on a quarterly basis, and we will continue to do our best to deliver to our shareholders. Thank you very much.
This does conclude today's program. Thank you for your participation you may disconnect at any time and have a wonderful day.
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