Q3 2023 Alexander & Baldwin Inc Earnings Call
Speaker 1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Steve Sweat, Investor Relations. Please go ahead.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone to withdraw from the question queue. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to keep Swett Investor Relations. Please go ahead.
Speaker 2: Thank you. Aloha and welcome to our call to discuss Alexander and Baldwin's third quarter 2023 earnings.
Speaker 2: with me today for our earnings call, our A&B's Chief Executive Officer, Lance Parker, and our Chief Financial Officer, Clayton Shunt.
Speaker 2: We were also joined by Kit Millen, Senior Vice President of Asset Management, who is available to participate in the Q&A portion of the call.
We're also joined by Kim Nolan Senior Vice President of asset management, which are available to participate in the Q&A portion of the call.
Speaker 2: During our call, please refer to our third quarter 2023 supplemental information available on our website at investors.alexanderbaldwin.com forward slash supplemental.
During our call. Please refer to our third quarter 2023 supplemental information available on our website at investors Dot Alexander Baldwin Dotcom sports last supplemental.
Before we commence please note that statements in this call that are not historical facts are forward looking statements within the meaning of the private Securities Litigation Reform Act of 95.
Speaker 2: Before we commence, please note that statements in this call that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by irrelevant forward-looking statements.
Involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward looking statements.
Speaker 2: These forward-looking statements include, but are not limited to, statements regarding possible or assumed future results of operations, business strategies, growth opportunities, and competitive positions.
These forward looking statements include but are not limited to statements regarding possible or assumed future results of operations business strategies growth opportunities and competitive positions.
Speaker 2: Such forward-looking statements speak only as to the date statements were made and are not guarantees of future performance.
Forward looking statements speak only as to the date statements were made and are not guarantees of future performance.
Speaker 2: forward-looking statements are subject to a number of risks, uncertainties, assumptions, and other factors it could cause actual results and the timing of certain events to differ materially from those expressed in or implied by the forward-looking statement.
Statements are subject to a number of risks uncertainties assumptions and other factors could cause actual results and the timing of certain events to differ materially from those expressed in or implied by the forward looking statements.
Speaker 2: These factors include but are not limited to prevailing market conditions and other factors related to the company's REIT status and the company's business, results of operations, liquidity and financial conditions, and the evaluation of alternatives by the company related to its materials and construction business, as well as other factors discussed in the company's most recent Form 10-Q and other followings with the SEC.
These factors include but are not limited to prevailing market conditions and other factors.
Related to the company's REIT status and the company's business results of operations liquidity and financial condition.
And the evaluation of alternatives by the company related to its materials <unk> construction business as.
As well as other factors discussed in the company's most recent Form 10-K Form 10-Q, and other filings with the SEC.
Speaker 2: The information in this call and presentation should be evaluated in light of these important risk factors.
The information in this call and presentation should be evaluated in light of these important risk factors we.
Speaker 2: We do not undertake any obligation to update the companies for unlucky statements.
We do not undertake any obligation to update the company's forward looking statements.
Speaker 2: Management will be referring to non-GAAP . Financial measures during our call today, please refer to our statement regarding the use of these non-GAAP measures and reconciliation included in our third quarter, 2023 sub.
Management will be referring to non-GAAP financial measures during our call today. Please refer to our statement regarding the use of these non-GAAP measures and reconciliations are included in our third quarter 2023 supplements.
Speaker 2: Lance will open up today's presentation with an overview of the quarter and provide an update on real estate operations in Clayton to discuss financial matters.
Lance will open up today's presentation with an overview of the quarter and provide an update on real estate operations, and then Clayton will discuss financial matters.
Speaker 2: Lance will return for some closing remarks, whereupon we will open it up for your questions. With that, let me turn the call over to Lance.
Lance will return for some closing remarks, where upon we will open it up for your questions with that let me turn the call over to Lance.
Thanks, Steve and Aloha, everyone are.
Speaker 3: Thanks Steve and Aloha everyone. Our high quality commercial real estate portfolio of retail, industrial and brown lease assets again generated strong results in the third quarter, continuing our momentum from the first half of 2023.
Our high quality commercial real estate portfolio of retail industrial and ground lease assets again generated strong results in the third quarter, continuing our momentum from the first half of 2023.
Speaker 3: Quarterly CRE revenue was up 3.7% compared to last year, driven primarily by higher base rents, and SAME store NOI was up 6.3%.
Quarterly CRE revenue was up three 7% compared to last year, driven primarily by higher base rents and same store NOI was up six 3%.
Speaker 3: While the economy in Hawai'i continues to demonstrate its resilience, the human and economic impact of the Maui wildfires continues to be felt.
Well the economy in Hawaii continues to demonstrate its resilience.
Human and economic impact of the Maui wildfires continues to be felt.
Speaker 3: Much of Mali is open. However, certain areas of the island, particularly those directly impacted by the fire, remain closed.
Much of Moly is open however, certain areas of the island, particularly those directly impacted by the fire remain closed.
Speaker 3: In the wake of the wildfire, Maui has seen an expected decrease in tourism, while activity on the other islands has increased.
In the wake of the wildfire Maui has seen an expected decrease in tourism while activity on the other islands has increased.
Speaker 3: Although total statewide visitor counts in September 2023 were lower than 2022, year-to-date numbers are still up compared to last year.
Although total statewide visitor counts in September 2023 were lower than 2022 year to date numbers are still up compared to last year.
Speaker 3: Most reports estimate limited spillover to the broader economy in Hawaii.
Most reports estimate limited spillover to the broader economy in Hawaii.
Speaker 3: This is supported by the fact the state's unemployment rate at the end of September was 2.8% compared to 3.5% a year earlier.
This is supported by the fact, the states unemployment rate at the end of September was two 8% compared to three 5% a year earlier.
As we have said before our portfolio is generally community based and less dependent on tourist activity.
Speaker 3: As we have said before, our portfolio is generally community-based and less dependent on tourist activity, but tourism supports the state's overall economy. Turning to our...
But tourism supports the state's overall economy.
Turning to our CRE portfolio leasing metrics same store leased occupancy at quarter end was 94, 5%.
Speaker 3: Same store, leased occupancy at quarter end was 94.5%. 10 basis points lower than 12 months earlier.
10 basis points lower than 12 months earlier.
Speaker 3: Same-store retail-least occupancy was 70 basis points higher at 94% in same-store, least industrial occupancy was 130 basis points lower than the third quarter of 2022 at 96.7%.
Same store retail leased occupancy was 70 basis points higher at 94% and same store leased industrial occupancy was 130 basis points lower than the third quarter of 2022 at 96, 7%.
Speaker 3: For comparative purposes, same store industrial lease occupancy in the third quarter of 2023 was 90 basis points higher than the second quarter of 2023.
For comparative purposes same store industrial leased occupancy in the third quarter of 2023 was 90 basis points higher than the second quarter of 2023.
Same store economic occupancy at quarter end was 92, 8% down 30 basis points from 12 months earlier same store retail economic occupancy was up 60 basis points to 91, 9% and same store industrial economic occupancy was down 170 basis points.
Speaker 3: Same store economic occupancy at quarter end was 92.8%, down 30 basis points from 12 months earlier. Same store retail economic occupancy was up 60 basis points to 91.9%. And same store industrial economic occupancy was down 170 basis points to 95.8%.
95, 8%.
Speaker 3: Annualized base rent attributable to the F&O leases at quarter end was $3.1 million. This compares to $2.5 million 12 months earlier and $3.1 million last quarter.
Annualized base rent attributable to an old leases at quarter end was $3 $1 million. This compares to $2 5 million 12 months earlier and $3 $1 million last quarter.
Speaker 3: During the third quarter, we executed 62 leases in our improved property portfolio for approximately 150,000 square feet and achieved blended spreads of 11.2%. The spreads for...
During the third quarter, we executed 62 leases in our improved property portfolio for approximately 150000 square feet and.
And achieved a blended spreads of 11, 2% with.
Spreads for industrial leases excuse me.
Speaker 3: 4.1% and spreads for retail leases at 13.8%.
Four 1%.
Spreads for retail leases, a 13, 8%.
Speaker 3: This activity included 14 leases related to properties located in Kailua, including Ikahi Park Shopping Center, totaling approximately 25,000 square feet of GLA and $900,000 of ABR.
This activity included 14 leases related to properties located in Kailua, including I caught you Park shopping center totaling approximately 25000 square feet of GLA and $900000 of ABR.
And for leases at Queens marketplace totaling approximately 12000 square feet of GLA and $400000 of ABR.
Speaker 3: four leases at Queens Marketplace totaling approximately 12,000 square feet of GLA and $400,000 of ABR. We are pleased with the continued pace of leasing activity.
We are pleased with the continued pace of leasing activity.
And pipeline of active deals.
Our refresh at manure marketplace, the only grocery anchored neighborhood center in the Manila area was substantially completed in the third quarter with only final punch list items remaining.
Speaker 3: A refresh at Manoa Marketplace, the only grocery anchored neighborhood center in the Manoa area, was substantially completed in the third quarter, with only final punch list items remaining.
Speaker 3: With bid-ask spreads and higher interest rates limiting transaction activity, we will remain disciplined when evaluating capital deployment options as we identify opportunities that drive long-term growth in cash flow and value.
With bid ask spreads and higher interest rates limiting transaction activity, we will remain disciplined when evaluating capital deployment options as we identify opportunities that drive long term growth and cash flow and value.
Speaker 3: And now I'll turn the call over to Clayton for financial details. Clayton, thanks Lance and Aloha everyone. Starting with our consolidated metrics on table 7 of our supplement.
And now I'll turn the call over to Clayton for financial details Clayton.
Thanks, Lance and Aloha, everyone, starting with our consolidated metrics on table seven of our supplement.
Speaker 3: For the third quarter of 2023, net income available to shareholders was $14.6 million, or 20 cents per diluted share.
For the third quarter of 2023 net income available to shareholders was $14 6 million or <unk> 20 per diluted share.
Speaker 3: FFO was 21.1 million or 29 cents per diluted share.
<unk> was $21 1 million or 29 cents per diluted share.
Speaker 3: Core FFO was $21.8 million, or 30 cents per diluted share.
Core <unk> was $21 8 million or 30 cents per diluted share.
Speaker 3: Each of these metrics for the third quarter of 2023 benefited from collections of amounts reserved in previous years of approximately $500,000 or a penny per day-looted share.
Each of these metrics for the third quarter of 2023 benefited from collections of amounts reserved than previous years of approximately $500000 or a penny per diluted share.
Speaker 3: For comparative purposes, in the third quarter of 2022, collections of amounts reserved in previous years was $400,000, or a penny per diluted share.
For comparative purposes in the third quarter of 2022 collections of amounts reserved in previous years was 400000 or a penny per diluted share.
We expect collections of previously reserved amounts to decrease to normalized amounts in future quarters.
Speaker 3: We expect collections of previously reserved amounts to decrease to normalize the amounts in future quarters.
Speaker 3: For additional details on our results in comparison to prior periods in 2022, please see our earnings release and supplemental information path.
For additional details on our results and comparisons to prior periods in 2022, please see our earnings release and supplemental information package.
Speaker 3: Let me now turn to our commercial real estate, Result Plenty 8.
Let me now turn to our commercial real estate results on table eight.
Speaker 3: For the 3rd quarter, series revenue increased 3.7%.
For the third quarter CRE revenues increased three 7%.
Speaker 3: or 1.7 million over the prior year quarter to $48.2 million.
Or $1 7 million over the prior year quarter to $48 $2 million.
Speaker 3: This increase from a year ago quarter was driven primarily by higher base rent this year as compared to last year. speakers are
This increase from a year ago quarter was driven primarily by higher base rent this year as compared to last year.
Theory operating profit increased.
Speaker 3: $300,000 or 1.5% to $20.6 million.
$300000 or one 5% to $26 million.
Speaker 3: Theory, same store, N-A-L-I increase 6.3%
CRE same store NOI increased six 3%.
Speaker 3: For 1.8Million dollars to 30.8Million dollars compared to the same period last.
Our $1 $8 billion to $30 8 million compared to the same period last year.
Speaker 3: As I previously mentioned, collections of amounts reserved in previous years had a minimal impact to same store NOI growth in the third quarter, and we expect the collections of amounts reserved in prior years to normalize in the coming quarter.
As I previously mentioned collection of amounts reserved in previous years had a minimal impact to same store NOI growth in the third quarter and we expect the collections of amounts reserved in prior years to normalize in the coming quarters.
Speaker 3: As a result, we expect our same-store NOI growth to normalize from the outside's increases experienced in the period of economic recovery post-povest.
As a result, we expect our same store NOI growth to normalize from the outsized increases experienced in the period.
Of economic recovery post Covid.
Turning to land operations presented on table 18.
Speaker 3: Turning to land operations presented on table 18.
Speaker 3: Adjusted deep at that was $2.9 million in the third quarter of 2020
Adjusted EBITDA was $2 $9 million in the third quarter of 2023 compared to a negative $1 $3 million in the same quarter last year.
Speaker 3: Compared to a negative $1.3 million in the same quarter last.
Speaker 3: Change was due primarily to the increased sales of unimproved property in the third quarter of 2023. There were no such sales in the third quarter last year.
The change was due primarily to the increased sales of unimproved property in the third quarter of 2023.
There were no such sales in the third quarter last year.
G&A is highlighted on table three.
Speaker 3: For the third quarter of 2023, GNA expenses were 7.6 million compared to 9.6 million in the third quarter of 2022.
For the third quarter of 2023, G&A expenses were $7 6 million compared to $9 6 million in the third quarter of 2022.
Speaker 3: The GNA reduction was due primarily to lower personnel related expense.
The G&A reduction was due primarily to lower personnel related expenses.
Speaker 3: We reported income from discontinued operations of 3.9 million in the third quarter, primarily related to Grace Pacific.
We reported income from discontinued operations of $3 9 million in the third quarter, primarily related to Grace Pacific.
Speaker 3: Grace remains in discontinued operations as we work to complete the sale of the entity.
Grace remains in discontinued operations as we work to complete the sale of the entity.
Speaker 3: We continue to make progress on the school, but we cannot provide additional details at this time.
We continue to make progress on the school, but we cannot provide additional details at this time.
Speaker 3: Perman to our balance sheet and liquidity metrics in table six.
Turning to our balance sheet and liquidity metrics in table six.
At quarter end total debt outstanding was $507 $6 million.
Speaker 3: At quarter end, total debt outstanding was $507.6 million. And we had total liquidity of $429.7 million made up of approximately 11.8 million in cash.
And we had total liquidity of $429 $7 million made up of approximately $11 8 million in cash.
Speaker 3: and $417.9 million available on our revolving credit facility.
And $417 9 million available on our revolving credit facility.
Speaker 3: Approximately 84% of our debt is fixed. And given the continued high interest rate environment, we are taking proactive steps to increase our percentage of fixed rate debt, as well as ladder on the truth.
Approximately 84% of our debt is fixed and given the continued high interest rate environment. We are taking proactive steps to increase our percentage of fixed rate debt as well as ladder our maturities.
Net debt to trailing 12 month consolidated adjusted EBITDA was four four times.
Speaker 3: Net debt to trailing 12 months consolidated adjusted EBITDA was 4.4 times.
Speaker 3: Net debt to Trilling 12 months consolidated adjusted deep at the excluding land operations was 5.1 times at the end of the quarter compared to 4.9 times in the third quarter of 2022.
Net debt to trailing 12 month consolidated adjusted EBITDA, Excluding land operations was five one times at the end of the quarter compared to four nine times in the third quarter of 2022.
Speaker 3: During the quarter, we repurchased approximately 92,000 shares of stock at an average price of $16.72 per share.
During the quarter, we repurchased approximately 92000 shares of stock at an average price of $16 72 per share.
Speaker 3: As we have said before, our share repurchase plan provides an additional capital allocation tool which we may use from time to time.
As we have said before our share repurchase plan provides an additional capital allocation tool, which we may use from time to time.
Speaker 3: With respect to our dividend, we paid a third quarter dividend of 22 cents per share on October 4th.
With respect to our dividend, we paid a third quarter dividend of 22 per share on October four.
Consistent with our normal practice, we expect our board to declare a fourth quarter dividend in December.
Speaker 3: consistent with our normal practice, we expect our board to declare a fourth quarter dividend in December .
Speaker 3: We are pleased with our results and are again raising guidance for the year.
We are pleased with our results and are again raising guidance for the year.
Speaker 3: We expect CoreFFO in the range of $1.13 to $1.16 per diluted share due to better than expected GNA for transition-related costs.
We expect core <unk> in the range of $1 13 to $1 16 per diluted share due.
Due to better than expected G&A or transition related costs.
Speaker 3: We expect same-store N-Y growth within a range of 2.75% and 4.25%.
We expect same store NOI growth within a range of 275% and 4% to 5%.
Speaker 3: and same store NOI growth excluding prior year reserve reversals within a range of 5.75% your
Same store NOI growth, excluding prior year reserve reversals within a range of 575%.
Six <unk>.
5%.
Speaker 3: With that, I'll turn the call over to Lance for his closing remarks.
With that I'll turn the call over to Lance for his closing remarks.
Thanks Clayton.
Speaker 3: The 3rd quarter again demonstrated the strength of our outstanding team and the quality of our retail industrial and ground.
The third quarter again demonstrated the strength of our outstanding team and the quality of our retail industrial and ground lease assets.
Speaker 4: Before we conclude our prepared remarks, I would like to take a moment to acknowledge the devastating wildfire in the town of Lajaina and Maui. The island where our company took root more than 150 years ago.
Before we conclude our prepared remarks, I would like to take a moment to acknowledge the devastating wildfire in the town of Lahaina on Bali the.
The island, where our company took route more than 150 years ago.
Speaker 4: None of our assets were physically damaged from the wildfire, and we are thankful that our employees are physically.
None of our assets were physically damage from the wildfire and we are thankful that our employees are physically safe.
Speaker 4: However, the tragedy does hit close to our hearts with losses that include lives, homes, and livelihoods of members of our extended family.
However, the tragedy does hit close to our hearts with losses that include lives homes and livelihoods of members of our extended family.
Speaker 4: The immediate and continued selfless response to the Maui community continues to reinforce my belief that Hawaii's people share a deep commitment to each other and to the islands we call home. With that, we'll novel-
The immediate and continued selfless response to the Maui community continues to reinforce my belief.
These people share a deep commitment to each other and to the islands we call.
With that we'll now open the call up to questions.
Speaker 1: We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw from the question queue, please press star then two. The first question is from Connor Mitchell of Piper Sandler. Please go ahead. Hey.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw from the question queue. Please press Star then two.
The first question is from Conor Mitchell of Piper Sandler. Please go ahead.
Hey, thanks for the time.
Speaker 5: So thinking about a big picture, during the pandemic, there was a lot of residents that were moving from the mainland to the islands. You guys see maybe a constant stream of this or has it slowed a bit since the original pickup in the movement.
So thank you had a big picture during the pandemic.
There's a lot of residents that are moving from the mainland to the islands do you guys see maybe.
Maybe a constant stream of this or has it slowed a bit fits the original.
Pick up in the movement.
Speaker 4: Hey Connor, it's Lance. You know I would say it's
Hey, Conor it's Lance.
I would say it's.
Speaker 4: Probably slow. I mean, there was a lot of people that were moving either from a more of a transient basis for a period of time during COVID or more on a permanent basis. But we really haven't seen a major demographic shift, if you will, in terms of inflow of population from other areas.
Probably slowed I mean, there was a lot of.
People that were moving either from a more on a transient basis for a period of time during COVID-19 or more on a permanent basis.
But we really haven't seen it.
A major demographic shift if you will in terms of.
Inflow of population from from other areas.
Okay.
Speaker 5: And then you've touched on tourism a little bit. And I know it's been a topic on previous call up in discussions. So since Japan has lifted some restriction, travel restrictions, I think it's back in May. Have you seen any of the uptick in Japanese tourists or maybe signs of morticom?
And then you touched on tourism a little bit.
And I know, it's been a topic on previous calls and discussions.
So since Japan has lifted some restriction travel restrictions ease back in May.
Have you seen any uptick in Japanese tourists or maybe signs of more to come.
Speaker 4: Yeah, you know, I would say that Japanese tourism, if we compare it to 2019 pre-pandemic timeframe, still down about 67%. So still down significantly.
Yeah, I would say that.
Japanese tourism, if we compare it to 2019 pre pandemic.
Frame still down.
About 67%, so still down significantly.
Speaker 4: But if we look at just September numbers, 2023, compared to September of 2022, they're up about 2.5x. So we're starting to see a really big improvement in the Asian tourism market. And just given how far it's still down from 2019, the bright side of that is that there's still plenty of room to go.
But if we look at just September numbers 2023, compared to September of 2022, they were up about two five X. So.
We're starting to see a really big improvement in the Asian tourism market and just given how far it is still down from 2019.
Right side of that is that there's still plenty of room to grow.
Speaker 5: Okay, and then Clayton, you touched on the guidance increase. And forgive me if I misheard you, but it sounded like it was primarily due to the lower GNA. Does the higher base rent and the healthy spreads you guys saw in this quarter have any impact on the guidance? Maybe that's in the CRE NOI increase as well.
Okay.
And then you touched on the guidance increase and triggered.
Forgive me, if I misheard, you, but it sounded like it was primarily due to the lower G&A does the higher base rent and the healthy spreads you guys saw this quarter have any impact on the guidance.
That's it.
CRE NOI increase as well.
It does yeah, yeah Conor.
Speaker 3: It does, yeah, Connor. But the guidance that we had provided the updated guidance for same-store NOI does reflect the better than expected year-to-date performance. And that also flows through into CoreFFO. But as I did mention in the call CoreFFO, the increased guidance is also reflective of, I guess, better than... ...and the guidance that we had provided the updated guidance, I guess, better than expected year-to-date performance.
The guidance that we had provided the updated guidance for same store NOI does reflect the better than expected year to date performance and that also flows through into of course F O.
But as I did mention in the call <unk>. The increased guidance is also reflective of.
I guess better than expected.
Speaker 3: GNA overall, and so it's contemplating both the theme store as well as this GNA effect.
G&A overall and so so it's contemplating.
Both the same store as well as the SG&A effect.
Speaker 5: I appreciate that. And then maybe one last one for me as well. You touch, Lance, you touch on the transaction market, the bit asked being a little bit wider. And then...
Okay I appreciate that and then maybe one last one for me as well.
You touched Lance you you touched on the transaction market.
I'd ask being a little bit wider and then.
Speaker 5: You guys also talked about the stock buybacks. So think about capital allocation going forward with the higher rates and some debt-bred sharing in the next year. How do you guys think about your capital allocation strategy with the tighter transaction market, rising rates and then maybe increasing stock repurchase programs?
You guys also talked about the stock buybacks, so thinking about capital allocation going forward with the higher rates and from some debt maturing in the next year. How do you guys think about your capital allocation strategy with the tighter transaction market.
Rising rates have been.
Maybe increasing our stock repurchase program.
Speaker 4: Yeah, I would say that, you know, clearly the high interest rate environment has not helped availability of opportunities and certainly hurdle rates as well. And so that's put a damper a little bit in terms of external transactions.
Yeah, I would say that <unk>.
Clearly the high interest rate environment has not helped.
Availability of opportunities in certain certainly hurdle rates as well and so that's put a damper a little bit in terms of external transactions.
Speaker 4: But really for us, capital allocation is really sort of across the board. And so given the current environment, I think we're gonna continue to lean toward internal opportunities where we can control timing and also get higher yields that are accretive to our cost of capital. So whether it's
But really for US capital allocation is really sort of across the board and so given the current environment I think we're going to continue to lean.
Toward internal opportunities, where we can control timing and also get higher yields.
You know that are accretive to our cost of capital so whether it's.
Speaker 6: repositioning of assets like when the market plays, whether it's continued foldable tech within our portfolio, or to the extent that our stock is underappreciated in the market, that will be another opportunity for us to invest. Thank you, Beth.
The repositioning of assets like Minoa marketplace, whether it's continued.
Photovoltaic within our portfolio or to the extent that our stock is underappreciated in the market that will be another opportunity for us for us to invest.
Yeah.
Okay I think.
That's all for me thank you.
Thanks, Great. Thanks, Scott.
Speaker 1: This concludes our question and answer session. I would like to turn the conference back over to Steve Swebs for closing remarks.
This concludes our question and answer session I would like to turn the conference back over to Keith Sweat for closing remarks.
Speaker 2: Thank you, Kate. And thank you all for joining us today. If you have any follow up questions, please feel free to call us at 808-525-8475 or email us at investor relations at abhi.com. Aloha.
Thank you Kate and thank you all for joining US today. If you have any follow up questions. Please feel free to call us at 8085258 for seven five or email us at Investor Relations at <unk> Dot Com Aloha and have a great day.
Speaker 1: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.