Q3 2022 National Retail Properties Inc Earnings Call
Good morning, ladies and gentlemen, and welcome to the National retail properties.
Third quarter 2022 earnings call.
At this time, all participants have been placed on a listen only mode.
So it will be opened for questions and comments after the presentation. It.
It is now my pleasure to turn the floor over to your host Mr. Steve Horn, Chief Executive Officer, Sir the floor is yours.
Thank you Alex good morning, and welcome to National retail properties third quarter 2022 earnings call.
Joining me on the call as Chief Financial Officer, Kevin Harvick.
This morning's press release reflects national retail properties performance in 2022 continues to produce strong results.
<unk> continued high occupancy impressive rent collections and a solid acquisition is driven by our tenants relationships. We are in a position to continue the performance through the fourth quarter.
Based on our year to date performance, we announced the further increase in our 2022 guidance of core <unk> to a range of $3 11 to $3 15 per share.
Also during the quarter, we announced I'm pleased to announce Elizabeth Castro are glad she has joined the board for experienced with Seaworld Entertainment Cross country healthcare and <unk> young will bring a fresh perspective and valuable insight as we continue to grow the company.
And events longstanding strategy of being selected by deploying capital and opportunistic raising capital over the years Slash decades has ended then in great shape heading into 2023.
In a time of uncertainty like today's macroeconomic conditions and disciplined.
Maintaining a solid balance sheet and reasonable acquisition volume.
Does put <unk> in good place to handle the price discovery phase the Triple net market is currently working through.
At the end of the quarter, we had under $50 million drawn on our $1 1 billion line of credit after completing over $585 million of volume through the first nine months of the year.
Shifting highlights of national retail properties third quarter results, our portfolio of 3349 freestanding single tenant properties.
We need to perform exceedingly well, we maintained high occupancy levels of $99, four which remains above our long term average of 98 plus or minus.
We also collected $99 seven of rents due for the third quarter.
On the Covid rent deferral front the repayment continues to track as expected at the end of the third quarter 82, 1% or $46 6 million of the original $56 $7 million deferred rent is being paid back which is 100% that is due at the time.
Based on the current dialogue with our tenants across multiple industries current rent collection levels and current occupancy levels. Our portfolio was performing at high levels and we expect that trend to continue.
This is a portfolio that has stood the test of time through GSE and Covid. It's been built are formed by enhanced multiyear strategy focus the luxury of selectivity and a conservative underwriting over decades by our professionals.
Turning to acquisitions during the quarter, we invested just north of 220 million 52, new properties at an initial cap rate of six in the quarter with an average lease duration of 16 and a half years.
19 of the 23 deals were from relationship tenants, which we do repeat programmatic business.
Through the first nine months, we've invested $585 million.
<unk> hundred 54 properties, which topped our 2021 volume of roughly 550.
Currently our market is in a price discovery period, but we do see the bid ask spread.
Bid ask spreads showing signs of adjusting and we will continue our thoughtful and disciplined underwriting approach and then continues to emphasize acquisition volume through sale leaseback transaction with our stable and relationship tenants.
With our Companys long duration triple net leased for them, which is more landlord friendly than the 10 31 market deals.
During the quarter, we sold eight properties raising $21 million of proceeds to be.
<unk> reinvested in new acquisitions.
Year to date, we've now raised approximately $50 million of proceeds from the sale of 26 properties, including 14 baking.
Job, one as always to re lease the vacancies, but we will continue to sell nonperforming assets. If we would not see a clear path to generating rental income within a reasonable timeframe.
Our balance sheet remains one of the strongest in our sector. Our credit facility has plenty of capacity as I mentioned earlier with only a balance of under $50 million. We also have no material debt maturities until mid 2024.
And then that is well positioned to fund the remaining 2022 acquisition guidance with that let me turn the call over to Kevin for more color and detail on our quarterly numbers and updated guidance alright, thanks, Steve and as usual I'll start with the cautionary statement that we will make certain statements that may be considered to be forward looking statements under federal Securities law company's actual future.
Results may differ significantly from the matters discussed in these forward looking statements and we may not release revisions to these forward looking statements to reflect changes. After the statements were made factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's filings with the SEC. This morning.
Press release, Okay with that.
Headlines from this morning's press release report quarterly core <unk> results of <unk> 79 per share for the third quarter of 2022, that's up eight or 11, 3% over a year ago results of <unk> 71 per share.
The year to date nine months core <unk> results were $2 35 per share and Thats at.
At 11, 4% increase over a year ago results.
Today, we also reported that <unk> per share was <unk> 81 per share for the third quarter, and that's up <unk> <unk> per share or 8% over prior year in Brazil.
We did footnote third quarter <unk> included $1 7 million of deferred rent repayment in our accrued rental income adjustment for the third quarter.
Which would have produced <unk> 80 per share for the quarter. Likewise in the first nine months of 2022 <unk> included $4 7 million of deferred repayments in our crude rental income adjustment.
Without which would have produced <unk> of $2 38 per share for the nine months.
2022, and that represents a 10, 2% increase over the similarly adjusted $2 16.
Results for 2021.
So as these scheduled deferred rent repayments continue to taper off from peak levels in 2021.
We're starting to see the improved results kicking in from our recent acquisitions over recent quarters and years.
Excluding the deferred rent repayments, our <unk> dividend payout ratio for the first nine months of 2022 was approximately 65% and.
And that suggests we will create approximately $190 million of free cash flow. After the payment of all expenses and dividends for the full year of 2022.
As Steve mentioned occupancy was 99, 4% at quarter end, that's up 40 basis points for the year.
G&A expense, we reported today was $10 1 million for the third quarter and Thats down from $11 1 million year ago.
Levels.
We ended the quarter with $752 $8 million of annual base rent in place for all leases as of September 32022.
That's our first time over $750 million.
Today, we did increase our 2022 core <unk> per share guidance from a range of $3.
Up to $3 12 per share to a new range of $3 11 to $3 15 per share.
And similarly, we increased the <unk> guidance to a range of $3 18 to $3 22 per share.
The guidance mid points for both the core <unk> increased by $3.05 or one 1% compared to the prior quarter guidance.
The supporting assumptions for our 2022 guidance are on page seven of today's press release, and our modest fully fine tuned from our last quarter guidance, including $25 million increase in the <unk>.
Acquisition volume midpoint.
As usual, we do not give guidance on any of our assumptions for capital markets activities, except for the general assumption that over the long term, we're going to behave in a.
Fairly leverage neutral manner.
But really the most important takeaway from all of this is that we expect to grow core <unk> per share results in 2022 by about 9% to the to the new guidance midpoint. This is a very good year for us what I would call above our target trend line of mid single digits per share growth over the long term.
Admittedly 2022 was aided by some tailwind, including some of the refinancing we did in 2021.
Notably we are doing in our five 2% preferred stock, which saved us approximately <unk> <unk> per share as well as $3 3 million.
Increase or about <unk> <unk> per share increase in our cash basis deferred rent repayments in 2022 compared to the prior year.
So and Additionally, we did have one less executive position, which generated some G&A savings in 2022.
So that will help.
2022 results those tail.
Like seemingly the vast majority of Reits, we will publish our 2023 guidance in early February when we report our year end results as always.
What are a challenge to project acquisition volume and cap rates, but in this transition period of rising capital cost pushing up cap rates, it's more difficult to make that projection today than it has been in the past.
The shifting price discovery sands.
Acquisition cap rates and capital costs as compelled us to wait until early February to publish our 'twenty three guidance.
Having said that we are still optimistic that we will be able to continue to grow per share results next year. Despite the high bar created by the 9% plus growth in our 2022 result, as well as the continuing headwind from the reduction in our cash basis tenants deferred rent repay.
<unk>, which are scheduled to decline from $9 1 million in 2022 to $3 3 million in 2023 as can be seen on the schedule on page 13 of today's press release.
One important element to support our expectation.
For continued growth in 2023 result is the position of our balance sheet and liquidity.
Third quarter was fairly quiet in terms of capital markets activity.
We were fairly active very active in the debt markets in 2021.
With that decision, we did issued $97 million of equity in the third quarter.
Via our ATM executing trades around the $47 per share level.
So, but despite acquiring $223 million of properties in the quarter and $588 million in the first nine months of the year. We ended the third quarter with only 47 $5 million outstanding on our $1 $1 billion unsecured Bank line.
And Thats, just a small increase over the prior quarters $40 million outstanding. So our liquidity is in excellent shape, our weighted average debt maturity is now approximately 14 years.
Our next debt maturity is $350 million with a three 9% coupon.
24, and with the exception of our small balance outstanding on our bank line all of our debt outstanding was fixed rate debt.
Our couples that net book to gross book assets was 43% that's been relatively flat for the year net debt to EBITDA was five three times at September 30 down 10 basis points from the prior quarter.
Interest coverage and fixed charge coverage four seven times for the third quarter and again Thats relatively flat with recent quarters. So we are in very good shape to produce strong core <unk> per share growth current 2022 core <unk> guidance is suggesting about 9% growth to the midpoint with some tailwind that put us above.
Our typical growth rate.
2023 should continue that growth despite the absence some of those tailwind that we had in 2022.
Our focus remains on growing per share results over the long term, we think the asset growth focused acquisition volume contest.
Many sectors over the recent past quarters and years is down shifted materially as the market.
The marketplace seeks to adjust to the new environment and appears to be getting a little more disciplined on price.
So we think.
<unk> investor focus on per share results in managing balance sheets will accrue to our benefit but time will tell.
While there is <unk>.
Currently an increased level of increase.
Economic and capital market uncertainty, we think we're reasonably well positioned for such so Ali with that we will open it up to any questions.
Thank you ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time.
We asked but where I'm posing your question. Please pick up your handset listing on speaker phone to provide optimum sand quality. Please hold while we pull for questions.
Thank you. Our first question is coming from Nick Joseph with Citi. Please go ahead.
Thanks.
What are you seeing in terms of the movement of cap rates of sale leasebacks versus just low acquisition.
Trying to get a sense of.
<unk> for each of those categories.
Yeah.
Congrats on the new role.
Yes.
So I think the cap rates, we've noticed really the last fed hike I've noticed kind of a little bit of a velocity of the cap rates increasing.
Our pricing early late second quarter early third quarter, they were still fairly low to kind of the first and second quarter cap rate.
The third quarter pricing, we've seen a 30 40 basis point move in cap rates.
So what I have in the pipeline going.
Fourth quarter first quarter Theres definitely a move for our acquisition kind of on a risk adjusted basis, all being equal and the sale leaseback side and the 10 31 market side I kind of feel they've moved up and staff, but what we find is the sophisticated owners of the real estate understand that interest rates have.
Moved and they are willing to sell at the higher cap rate currently.
Still not at the bid ask isn't as tight as you like it to be but we're definitely seeing a movement I feel better today than I did 45 days ago on the cap rate spread.
That's helpful and then.
I recognize guidance doesn't assume capital markets activity, we were able to issue some equity accretively.
Third quarter. So as you book to these acquisitions today, how are you thinking about those investments spreads just given cost of equity and cost of debt currently.
Yes.
We think about.
We think about it a little differently than kind of a typical I think spread discussion that goes on.
We want to burden our equity for purposes of deploying capital we want to burden it.
At a return that we think adequate adequately compensate.
Common shareholders.
Fluids, our free cash flow like I said, we have about $190 million of free cash flow annually at the moment.
And so we brought in that as well.
Not free.
Terry.
<unk> and <unk>.
So so that that is.
Create some opportunity for us to alleviate.
Heavy lifting in terms of needing to issue equity so.
You have a $190 million of free cash flow of call it $100 million.
Given your disposition proceeds.
That goes a long ways to sell.
Solving the equity need if you will for.
For.
A typical acquisition volume year for us and so so we don't get through that and we have on the debt front. We've communicated we've really have not used our bank credit facility in any meaningful way for several years I think the weighted average outstanding balance for the last five or six years has been like $50.
5 million $5 5 million.
And so.
Going into this into 2023, we will lean more on to that.
That facility and use it more.
In the past likely.
And so that's the plan in the short term, meaning the next five quarters tour on the debt front.
Now that I've said, all that the world will change and we'll do something totally different we do try to be opportunistic in raising capital when it's available and what we think is a well priced reasonably reasonable price.
We will respond to the market as it unfolds.
Current thinking is what I've just outlined.
That's very helpful. Thank you very much.
Thank you. Our next question is coming from Spenser <unk> with Green Street. Please go ahead.
Yes.
On the revised external growth that and so even the high end of your provided range would imply about 110 million growth.
Last quarter, so that contrasts with about 200 million run rate in recent quarters.
Walk us through your thinking on that.
Obviously, youre being conservative, but just wondering if it's driven more by compressing spread.
Sellers in particular segments that you like.
I'm just curious what your thoughts are.
If you recall.
Second quarter earnings, we updated our acquisition by slightly albeit.
The fourth quarter as you know.
Lumpy I wouldn't get caught up quarter to quarter acquisition value. We've had a fairly past few quarters, our robust acquisition activity our pipeline. It feels really good right now, but as you know on the transaction market don't count your chickens until they are closed.
Actually given the capital markets and just the equity market volatility in the debt market.
Yes, we feel good about our acquisition guidance through the.
Remaining of 2022 and it could just be timing, but until they are closed we werent willing to update our expand our guidance.
Okay, and then you mentioned in your prepared remarks that if necessary you would sell some properties. So I'm. Just wondering do you currently have any assets that are earmarked for divestment or.
Like what are the criteria that you're looking for when identifying depression.
Yes, I mean, I don't remember the Spencer, saying, we would sell properties, but.
The question is we are always looking to.
Sell assets and strengthen our portfolio and when we sell assets it could be offensive really because we've had discussions with the tenant or just the property level analysis of high risk asset upon renewal. So we will sell it don't tell anybody that because otherwise we can't sell too many assets in the 1031 market.
We sell vacant assets went after we tried to re lease some.
And we're just not finding its taken too long and then we also have a third of our portfolio that we sell because somebody finds the asset.
Not much of a value that we do.
At the end of the day year to date the assets the income producing assets that we sold we sold at a five nine cap after the quarter. It was a five eight cap. So we are recycling some capital with our dispositions and strengthening our portfolio at the same time.
Thank you that's very helpful.
Thank you. Our next question is coming from Wes Golladay with Baird. Please go ahead.
Yes, good morning to everyone I just wanted to get an update on your relationships that you've established this year or you're exceeding expectations and then also where you see some of your older relationships come back people that may have left you with pricing got aggressive and now they are finding out those new partners, who are no longer available.
Hey, good question.
The new relationships. They are right on track, where we kind of task our acquisition drove to develop new relationships over the year.
It's no different 2022% in 2021, but a lot better than 2020.
So going forward I expect the same cadence and the same cadence of what we would call relationships falling off meaning they outgrew lost their cost of capital draw.
Dropped lower than we're willing to provide it and we cheer that we'd like them to find cheaper cost and us.
Strengthened their balance sheet we're.
We're not find in a material amount of our relationships coming back because we're still on that price discovery mode. I think we may find one or two will work their way back to us because we werent. They were kind of like in the place I would say looking for 10 or 15 basis points cheaper than we would.
But because of our certainty and reliability of our landlord they'll come back to us a little bit.
Got it and then when we look at that maybe 2023 and 2020 for let's say a whole lot of your major relationships have plants in motion you really can't call. It at this point is there a natural lag between when the economy slows cap rates expand with sale leaseback transactions may moderate would this be more between 2004.
That youll stay elevated like they are.
Yes.
Pipeline.
Is.
As robust today as it was last year and we're not seeing a slowdown just because it's a real estate transaction and it does take a fair amount of time to get permitting and <unk>.
<unk> started and we're not hearing any external growth slowdown as far as new property development, one thing I am noticing in the market as the M&A market is definitely slowing down and if it's the <unk>. There is still appetite out there, but we're not feeling as many.
Calls on M&A activity as we were six months ago.
But we also don't rely on the M&A activity alone to hit our volume numbers.
Got it I guess, just one last one for Kevin going back to that $190 billion of free cash flow did you give that 1% to 8% cost of equity targets that we're looking at.
Yes, so that's what I was suggesting is that I think sometimes company. Thanks.
Unquote free equity if you will and so anything you are on that.
It is accretive.
And I understand why they might go down that path, but we really try to for purposes of deploying all capital no matter how resources.
Including that free cash flow, we really want to put a charge or a return on equity hurdle on that to make sure we're safe.
Taking care of shareholders that were what we think are adequately compensating shareholders for deploying new capital.
Great. Thanks, everyone.
Thanks, a lot.
Thank you. Our next question is coming from Joshua Federline with Bank of America. Please go ahead.
Yeah, Hey, guys.
Just a quick question on G&A.
Obviously you have one.
<unk> positioned.
I filled right now how are you thinking about kind of G&A as you head into next year is that something you want to fill another executive role or kind of is kind of the run rate should be thinking about.
I can talk about the exact name another secondary yes currently we have four executives.
And I probably.
The immediate future.
Second rule, but kind of a low.
Second half of the year I could foresee on the executive role.
And the rest is G&A I can let Kevin handle.
Yes, I mean, yes, G&A, there's nothing notable.
Happening within that obviously, there is a little bit more.
Price pressure going on just given the inflation environment, but nothing nothing notable.
On in our G&A line item.
Okay Awesome, that's it for me guys. Thank you.
Thanks.
Thank you. Our next question is coming from Ronald Camden with Morgan Stanley . Please go ahead.
Hey, a couple of quick ones from me just starting with tenant risk maybe can you just give us an update on what that data is looking at all alike.
You know what what sort of.
What are you baking into the guidance now.
And then maybe in some of the more topical whitewood or theaters or anybody else that youre looking at just where do we stand there.
Yes, yes.
Doesn't feel like it's changed a lot and from our mind in terms of the kind of credit profile. If you are the credit watch list if you will.
We've typically assumed 100 basis points of rent loss for any given year.
Did that in normal times, and that's really still where we think.
I put our minds as we think about the future of that kind of a central rent last week, we've frequently don't experience a 100 basis points of rent loss, its usually much less than that but.
We tend to be a little conservative and so thats what we.
Pencil in but at the moment.
The names that are.
Most prevalent in.
The credit.
Discussions if you will the Regal theaters, we only have one.
Now everybody says this but we really do like that property.
And so it's.
And a good location and the rents are low and so we kind of like our odds on that one.
Bed Bath and beyond is increasingly.
Struggling it appears again, we only have three stores, 2% of our rent. So again, it's not it's not.
A big number in our rents per square foot or.
<unk> are good and so we're not worried about that so I would say generally there are feeling about the portfolio and our tenant profile has not changed.
And we are not changing our our kind of rent loss assumption around any concerns there.
Great.
And then I think the second question is if I just think about this environment.
Our higher debt costs higher financing costs.
And in that relative to the to the rest of the peer set.
Great balance sheet, a lot of a lot of the debt are a lot of the acquisitions internally funded with free cash flow in some ways you guys should be positioned better than everybody else right as youre thinking about sort of next year and in 2020 for I guess the question really is like as you're as you are.
Thinking forward you sort of see this as a time to sort of show why your strategy is differentiated and our timing.
And putting up good numbers or.
How are you guys sort of thinking about the messaging.
The peer set.
Fair question I mean, we don't focus too much on exactly what everybody else is doing but yes, no we think that.
Without us changing our strategy much that we may shine brighter if you will relatively.
Then what.
<unk>.
<unk>.
Sometimes referred to as <unk>.
The huge acquisition contest that we've had for the last seemingly two years, where I don't think we.
Signed as bright I think we're entering an environment where.
Duane executing the way we typically executed.
And driving per share results.
Having some dry powder and.
Just trying to poach per share growth that focus I think will.
Look relatively better potentially in the coming quarters, but time will tell like I said, but.
In some sense is a better environment. If you will and I think that's kind of to your question relative for us relative to others and so.
We would probably agree with that.
We'll see how it plays out.
I'm, assuming the fed's going to maintain its new found religion.
But who knows tomorrow. They may decide that are maybe not tomorrow. Later this afternoon. They may decide to.
Totally change and go down a different track I don't think they are but.
But we think we're really well positioned I guess is what you're saying.
Great and then if I could sneak a quick one in you guys raise the acquisition guidance.
You talked about cap rates going up.
Is there a way to sort of put some numbers around that.
Could we see 25 50 basis points over the next 12 to 18 months of cap rate rising and given their programmatic relationships.
Is it sort of a fair assumption that volumes continue to be healthy for you guys.
Over the next 12 to 18.
Yes.
Our line of sight as you know on acquisitions as always.
<unk> hundred 90 days out.
And we feel comfortable of where we're sitting with our pipeline and relationships.
I mentioned earlier.
$25 40 basis points I've seen that jump in the last month or so so I feel comfortable that our cap rate has increased by that amount.
Into the fourth quarter and I see it continuing at least at that level for the first quarter, maybe the second quarter and if rates sustain which it feels like they're going to you.
I think you can start seeing 50 75 basis points.
In the second half of next year, but as far as acquisition volume.
Is that all that is you Kevin kind of touched on it with our focus on <unk> growth. We don't focus so much on volume, we focus where we can grow our per share results volumes.
Volumes never an issue cap rates the problem. If I wanted to go by 575, I cut and do as much as we can but yes overall I feel comfortable where we are sitting as far as our relationships and potential deals going into 2023.
Great. Thanks, so much.
Yeah.
Thank you. Our next question is coming from John Masako with Ladenburg. Please go ahead.
Good morning.
Morning, Jeff.
Sorry, if I missed this in your response to Spenser's question, but it.
It looked like disposition guidance came down quarter over quarter or is there anything specific driving that or is it just kind of the price discovery environment. We're in today.
We don't need to sell anything.
Currently and we had a couple of deals that got a little rocky and they wanted to re trade the price. So we weren't willing to do that.
So theyre not going to close here in the fourth quarter and then we have another large transaction out there for timing reasons.
I don't know if its going to hit the fourth quarter or first quarter.
Not really really small numbers, John as you know so I'm not really too focused on it.
Okay that makes sense.
And then on the balance sheet side as you think about maybe the debt funding needs going forward, how should we think about <unk>.
Term loan debt versus kind of unsecured debt I know historically, you've been an unsecured issuer, but it seems like the pricing differential you can get on.
On those different types of debt has widened a lot in kind of recent months. So just any thoughts there.
Yes, I mean, we're not.
Don't foreclose ourselves to doing a term loan.
In many respects not materially different than unsecured bond deal.
So if that will just be a game time decision for us.
What path as appropriate when we need it at the moment it doesn't feel like we need to tap either of those markets.
In the coming quarters. So so we will wait and see how things shake out over the next six 912 months.
And then make a game time decision, but both are very viable alternatives for us we enjoy good support the banking community.
A lot will depend on just investor appetite at the time, we want to go to market.
Bond market investor appetite versus bank lending appetite.
We'll make a game time decision.
I know, but is there a specific maybe spread you have in mind between the two that would make one more attractive than the other just given.
I think the historical preference for unsecured issuance.
No.
Yeah.
We're kind of absolute rate people.
All in cost of the debt and Thats, what we will evaluate one against the other and so.
As it relates to our term loan anything that.
We are sensitive to variable rate debt versus fixed rate debt. So.
Thanks.
Went down something with more of a variable rate and we'd want to kind of lock that in.
And get some protection, there, but but no.
There's no magic to the I don't know how the spread in mind.
Okay.
That's it for me thank you very much.
Thank you once again, if there are any remaining questions or comments. Please press star one on your phone at this time.
Our next question is coming from Linda Tsai with Jefferies. Please go ahead.
Hi, good morning.
For a slowdown in the economy, how much would you expect occupancy to fall I know, it's never gone below 96, 5%, but just wondering if a more durable tenant base would help support that higher.
Yes, I mean, our tenant base is large regional operators theyre not the mom and pops, they've been that'd be per investment grade rated but they operate thousands of retail locations.
And geographically, we're highly diverse industry wise, we're highly diverse.
But we are in retail so things happen within retail.
But if the economy slows down I don't see a drastic change in our occupancy level, given the credit quality credit worthiness of our tenant base.
They would have to be a pretty substantial macro event.
And whether this is Kevin and then it's not really directly answering your question.
I'm not implying that but.
It's funny over the long term, meaning over a couple of decades, which I know nobody really thinks about.
We've always kind of said our occupancy is 98% plus or minus one.
And that's just kind of the ZIP code that we've lived in for many years.
And we're at the top end of that range right now we have.
Some time.
Resolving some vacancies in the last couple of years and so.
Reduce the number of vacancies in the portfolio, but.
But no we don't see anything that's pricing like I said it goes to my comment earlier about.
Our rent loss assumption has not changed at all even.
From recent years so.
We don't we don't feel like we're particularly exposed.
A material occupancy issue ahead of us.
Great. Thank you.
Yeah.
Thank you.
As there appear to be no further questions on the queue I will hand, it back to Mr. Steve Horn for any closing comments.
I appreciate your time and energy to spending on national retail.
Look forward to seeing many of you I guess in person in the upcoming NAREIT conference on the web.
Just any questions feel free to give Kevin or myself a call. Thank you.
Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your lines at this time and have a wonderful day.
Their participation.
Okay.