Q1 2024 Peakstone Realty Trust Earnings Call
Operator: Greetings and welcome to the Peakstone Realty Trust first quarter 2024 earnings webcast. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Makeda Lynch. Thank you. You may begin.
Greetings and welcome to pick some Realty Trust first quarter 'twenty 'twenty four earnings webcast.
Operator: At this time, all participants are in listen only mode.
Makeda Lynch: A brief question and answer session will follow the formal presentation.
Makeda Lynch: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Operator: As a reminder, this conference is being recorded.
Makeda Lynch: That much I joked to introduce your harsh Macheda Lynch. Thank you you may begin.
Makeda Lynch: Thank you. Good afternoon, and thank you for joining us for Peakstone Realty Trust's first quarter 2024 earnings call and webcast. Earlier today, we posted an earnings release, supplemental, and updated investor presentation to the investors page on our website at www.pkst.com. Please reach out to our investor relations team at irpkst.com with any questions.
Makeda Lynch: Thank you good afternoon, and thank you for joining us for peaks don't Realty trusts first quarter 'twenty 'twenty four earnings call and webcast earlier today, we posted an earnings release supplemental and updated investor presentation to the investors page on our website at Www Dot P. J S T dot.
Makeda Lynch: Kam.
Makeda Lynch: Please reach out to our Investor Relations team I R. A T K S T dot com with any questions.
Makeda Lynch: Please note that the use of forward-looking statements by the company on this webcast. Statements made on this call may include statements which are not historical facts and are considered forward-looking. The company intends for all these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are making these statements for purposes of complying with those safe, Furthermore, the forward-looking statements reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions, and changes in circumstances that may cause actual results to differ significantly than those expressed in any forward-looking statement and will be affected by a variety of risks and factors that are beyond the company's control, including, without limitation, those contained in our most recent annual report on Form 10-K or quarterly report on Form 10-Q filed with the SEC.
Makeda Lynch: Please note that the use of forward looking statements by the company on this webcast statements made on this call may include statements, which are not historical facts and are considered forward looking the company intends for all these forward looking statements to be covered by the safe Harbor provisions for forward looking statements contained in the private securities.
Makeda Lynch: Litigation Reform Act of 1995 and are making these statements for purposes of complying with those safe Harbor provisions.
Makeda Lynch: Furthermore, the forward looking statements reflect our current views about future events and are subject to numerous known and unknown risks uncertainties assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed in any forward looking statement and will be affected by a variety of risk.
Makeda Lynch: And factors that are beyond the company's control, including without limitation those contained in our most recent annual report on Form 10-K, our quarterly report on Form 10-Q filed with the SEC.
Makeda Lynch: We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors of new information, data, or methods, future events, or other changes after the date of this call, except as required by applicable law. Additionally, on this call, the company may refer to certain non-GAAP financial measures, such as funds from operations, adjusted funds from operations, EBITDA RE, and adjusted EBITDA RE. You can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP numbers in the company's filings with the SEC. On the call today are Mike Escalante, CEO and President, and Javier Bitar, CFO. With that, I'll hand the call over to Mike. Good afternoon.
Makeda Lynch: We disclaim any obligation to publicly update or revise any forward looking statement to reflect changes in underlying assumptions or factors of new information data or methods future events or other changes after the date of this call except as required by applicable law.
Makeda Lynch: Additionally, on this call the company may refer to certain non-GAAP financial measures such as funds from operations adjusted funds from operations EBITDA Ari and adjusted EBIDTA Ari you can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP numbers.
Makeda Lynch: In the company's filings with the SEC on the call today are Mike Escalante, CEO, and President and Javier <unk> CFO with that I'll hand, the call over to Mike.
Michael J. Escalante: Good afternoon, and thank you for joining our call today. April 13th was our one-year anniversary as a listed company. As we mark this occasion, I am proud of the progress we have made executing on our strategic plan aimed at bolstering our balance sheet and optimizing our portfolio to further align with our long-term growth objectives. In alignment with this plan, during the first quarter, we advanced the elimination of our other segment, driven by effective disposition and leasing strategies and sustainable tenant relationships. At the close of the quarter, our other segment now only accounts for 13% of our ABR in our portfolio.
Michael J. Escalante: Good afternoon, and thank you for joining our call today.
Michael J. Escalante: April 13th was our one year anniversary as a listed company.
Michael J. Escalante: As we Mark this occasion I am proud of the progress we have made executing on our strategic plan aimed at bolstering our balance sheet and optimizing our portfolio to further align with our long term growth objectives.
Michael J. Escalante: In alignment with this plan during the first quarter, we progressed the elimination of our other segment driven by effective disposition and leasing strategies and sustainable tenant relationships.
Michael J. Escalante: At the close of the quarter. Our other segment now only accounts for 13% of our a b are in our portfolio.
Michael J. Escalante: Our high-quality industrial and office segments continue to provide stability with a combined WALT of 7.3 years, minimal near-term rollover in the next three years representing 7.5% of the ABR for these two segments, significant credit tenancy, and newer buildings with minimal capital requirements. Moving on to leasing activity, in this evolving market environment, we had strong lease execution, securing three lease extensions in our other segment, which sets the stage for successful sales of these assets.
Michael J. Escalante: Our high quality industrial and office segments continued to provide stability with a combined wall of seven three years minimal near term rollover in the next three years, representing seven 5% of the a b are for these two segments Cigna.
Michael J. Escalante: Significant credit tenancy and newer buildings with minimal capital requirements.
Michael J. Escalante: Moving on to leasing activity.
Michael J. Escalante: In this evolving market environment, we had strong lease execution, securing three lease extensions in our other segment, which sets the stage for successful sales of these assets.
Michael J. Escalante: These leasing accomplishments in our non-core segment underscore our team's agility, market acumen, and the potential for further success within our core portfolio. We secure lease extensions totaling approximately 241,000 square feet with minimal or no leasing costs and strong weighted average gap and cash-free leasing spreads of 27% and 13%, respectively. These leases consisted of a five-year, 81,000-square-foot lease extension with MGM in Las Vegas, Nevada, with a 33% gap and 26% cash-releasing spread, a five-year, 99,000-square-foot lease extension with Northrop Grumman in Beaver Creek, Ohio, with a 23% gap and 5% cash-releasing spread, and a 5-year, 61,000-square-foot lease extension with Owens In addition to this leasing activity during the quarter, our previously executed 15-year, 100,000-square-foot lease commenced at our Nashville, Tennessee office segment property. Turning now to our Dispositions.
Michael J. Escalante: These leasing accomplishments in our noncore segment underscore our team's agility market acumen and the potential for further success within our core portfolio.
Michael J. Escalante: We secured lease extensions totaling approximately 241000 square feet with minimal or no leasing costs and strong weighted average GAAP and cash re leasing spreads of 27% and 13% respectively.
Michael J. Escalante: These leases consisted of a five year 81000 square foot lease extension with MGM in Las Vegas, Nevada, with a 33% GAAP and 26% cash re leasing spread.
Michael J. Escalante: A five year 99000 square foot lease extension with Northrop Grumman and Beaver Creek, Ohio.
Michael J. Escalante: With a 23% GAAP and 5% cash re leasing spread.
Michael J. Escalante: And a five year 61000 square foot lease extension with Owens, Corning, and Concord, North Carolina, with a 17% GAAP and 5% cash re leasing spread.
Michael J. Escalante: In addition to this leasing activity during the quarter. Our previously executed 15 year 100000 square foot lease commenced at our Nashville, Tennessee Office segment property.
Michael J. Escalante: Again, our team's experience, industry relationships, and proactive tenant engagement initiatives drove the successful dispositions of four assets in the quarter for nearly $80 million. These sales meaningfully reduced the size of our other segment and improved our overall portfolio metrics. In the other segment, we sold two non-stabilized office properties holding 389,000 square feet. The properties were sold for a total of $23.4 million. We also sold one manufacturing property totaling 660,000 square feet.
Michael J. Escalante: Turning now to our dispositions again, our teams experience industry relationships and proactive tenant engagement initiatives drove the successful dispositions of four assets in the quarter for nearly $80 million. These.
Michael J. Escalante: These sales meaningfully reduced the size of our other segment and improved our overall portfolio metrics.
Michael J. Escalante: In the other segment, we sold two non stabilized office properties totaling 389000 square feet.
Michael J. Escalante: The properties were sold for a total of $23.4 million.
Michael J. Escalante: We also sold one manufacturing property totaling 660000 square feet. This property was sold to the existing tenant for $26 $1 million pursuant to a fixed price purchase option.
Michael J. Escalante: This property was sold to the existing tenant for $26.1 million pursuant to a fixed price purchase option. In our office segment, proactive communication and collaboration with Corteva, the tenant of our 184,000 square foot property located in Johnston, Iowa, resulted in the sale of this building to Corteva for $30 million. At the time of the sale, the lease had 2.8 years remaining. To facilitate the closing, we issued a one-year note for one-half of the disposition price.
Michael J. Escalante: In our office segment proactive communication and collaboration with court Teva the tenant of our 184000 square foot property located in Johnston, Iowa resulted in the sale of this building to court Teva for $30 million.
Michael J. Escalante: At the time of the sale the lease had 2.8 years remaining to facilitate the closing we issued a one year note for one half of the disposition price.
Michael J. Escalante: I am pleased with the disposition and leasing activity in the quarter. Overall, our innovative and experienced team continues to be a differentiator. With that, I will turn the call over to Javier to review our financial results.
Michael J. Escalante: I am pleased with the disposition and leasing activity in the quarter overall, our innovative and experienced team continues to be a differentiator with that I will turn the call over to Javier to review our financial results.
Michael J. Escalante: Javier.
Javier: Thanks, Mike.
Javier F. Bitar: We would first like to highlight the continued reduction in leverage for our consolidated portfolio, which resulted in a 6.2 times net debt to normalized EBITDA RE ratio at the end of the quarter. Moving on to our financial results, total revenue for the quarter was $59.2 million, and NOI was $47.6 million. Net income attributable to common shareholders was approximately $5 million, or $0.14 per share. This result is inclusive of two non-cash impairments, a $1.4 million impairment relating to a pending sale in our other segment, which was classified as held for sale at quarter end, and $4.6 million relating to Goodwill associated with our other reporting segment as a result of first quarter asset sales.
Javier: We would first like to highlight the continued reduction of leverage for our consolidated portfolio, which resulted in a $6 two times net debt to normalized EBITDA ratio at the end of the quarter.
Javier F. Bitar: Same store cash NOI was approximately $44.8 million, a 0.7% increase compared to the same quarter last year. However, for the commencement of a rent abatement in the 11th year of an existing lease, same-store cash NOI would have grown by 1.5%.
Javier F. Bitar: Moving onto our financial results total revenue for the quarter was $59 $2 million and NOI was $47 $6 million net.
Javier F. Bitar: Net income attributable to common shareholders was approximately $5 million or <unk> 14 per share.
Javier F. Bitar: This result is inclusive of two noncash impairments.
Javier F. Bitar: A $1 4 million dollar impairment relating to.
Javier F. Bitar: Through a pending sale and our other segment, which was classified as held for sale at quarter end.
Javier F. Bitar: And $4 $6 million relating to goodwill associated with our other reporting segment as a result, the first quarter asset sales.
Javier F. Bitar: Same store cash NOI was approximately $44 $8 million, a 7% increase compared to the same quarter last year.
Javier F. Bitar: But for the commencement of a rent abatement in the 11th year of an existing lease same store cash NOI would have grown by one 5%.
Javier F. Bitar: FFO as defined by Nareed was approximately $21.2 million or $0.54 per share on a fully diluted basis; excluding the non-cash goodwill impairment, FFO for the quarter would have been 65 cents per share. AFFO was approximately $27.8 million or $0.70 per share on a fully diluted basis, and G&A was approximately $9.7 million, a 3% improvement compared to our normalized 2023 quarterly run rate Moving on to our balance sheet, as of March 31st, 2024, we had $436 million in cash, a $44 million increase from year-end 2023, and $160 million of available undrawn capacity on our revolver for total liquidity of nearly $600 million. A significant portion of our cash is being held in money market accounts, earning interest in the 5% range, which generated approximately $4 million of interest income in the quarter.
Javier F. Bitar: F O as defined by NAREIT was approximately $21 $2 million or <unk> 54 per share on a fully diluted basis.
Javier F. Bitar: Excluding the noncash goodwill impairment F F O for the quarter would've been 65 per share.
Javier F. Bitar: <unk> was approximately $27 $8 million or <unk> 70 per share on a fully diluted basis.
Javier F. Bitar: And G&A was approximately $9 $7 million, a 3% improvement compared to our normalized 2023 quarterly run rate.
Javier F. Bitar: Moving onto our balance sheet.
Javier F. Bitar: As of March 31, 2024, we had $436 million in cash a $44 million increase from year end 2023.
Javier F. Bitar: $160 million of available Undrawn capacity on our revolver for total liquidity of nearly $600 million.
Javier F. Bitar: A significant portion of our cash is being held in money market accounts, earning interest in the 5% range.
Javier F. Bitar: Which generated approximately $4 million of interest income in the quarter.
Javier F. Bitar: Regarding our consolidated debt, we had approximately $1.4 billion outstanding, consisting of $950 million on our credit facility, with the balance being secured mortgage debt. This quarter, we reduced our mortgage debt by paying off our $11.4 million Highway 94 secured loan, in connection with the sale of the manufacturing property in our other segment and paying down $10 million of principal on our AIG secured loans. After deducting for cash, net debt was approximately $985 million, for a $65 million reduction compared to our year-end net debt.
Javier F. Bitar: Regarding our consolidated debt, we had approximately $1 $4 billion outstanding consisting of $950 million on our credit facility with the balance being secured mortgage debt.
Javier F. Bitar: This quarter, we reduced our mortgage debt by paying off our $11 4 million dollar highway 94 secured loans and.
Javier F. Bitar: In connection with the sale.
Javier F. Bitar: The manufacturing property in our other segment and paying down $10 million of principal on our secured loans.
Javier F. Bitar: After deducting for cash net debt was approximately $985 million.
Javier F. Bitar: Or a $65 million reduction compared to our year end net debt.
Javier F. Bitar: As a result of this activity, our net debt to gross real estate improved by 200 basis points from 40.2% to 38.2%. And, as I previously mentioned, our net debt to normalized EBITDA RE ratio is 6.2 times. Regarding our total outstanding debt, approximately 86% of it has fixed rates inclusive of our interest rate swaps, which limits our exposure to near-term interest rate volatility, including the effect of these interest rate swaps, whose maturity of July 2025, the weighted average interest rate was 4.16%, and taking into account the recent exercise of our 19-month credit facility extension.
Javier F. Bitar: As a result of this activity our net debt to gross real estate improved by 200 basis points from 42% to 38, 2%.
Javier F. Bitar: And as I previously mentioned.
Javier F. Bitar: Our net debt to normalized EBITDA ratio is six two times.
Javier F. Bitar: Regarding our total outstanding debt approximately 86%. That's it has fixed rates inclusive of our interest rate swaps, which limits our exposure to near term interest rate volatility.
Javier F. Bitar: Including the effect of these interest rate swaps, which with a maturity of July 2025.
Javier F. Bitar: Weighted average interest rate was 4.16%.
Javier F. Bitar: And taking into account the recent exercise of our 19 months credit facility expansion.
Javier F. Bitar: The weighted average term to maturity will be approximately 2.5 years, leaving no significant debt maturities until the end of 2025. Finally, for the first quarter, we paid a dividend of 22.5 cents per common share on April 18. While the company expects to continue paying dividends on a quarterly basis, all future dividend decisions will be made by the Board of Trustees. Overall, we ended the quarter with ample liquidity and balance sheet flexibility, which positions us well to advance our business. Now, I will turn the call back to Mike for his closing remarks. Thank you.
Javier F. Bitar: Weighted average term to maturity will be approximately $2 five years, leaving no significant debt maturities until the end of 2025.
Javier F. Bitar: Finally for the first quarter, we paid a dividend of 22 and a half cents.
Javier F. Bitar: Our common share on April 18.
Javier F. Bitar: While the company expects to continue paying dividends on a quarterly basis, all future dividend decisions will be made by the board of trustees.
Javier F. Bitar: Overall, we ended the quarter with ample liquidity and balance sheet flexibility, which positions us well to advance our business plan.
Javier F. Bitar: Now I will turn the call back to Mike for closing remarks.
Michael J. Escalante: Thank you, Javier. Our outlook on the industrial market is positive. We are well positioned to capture past and future rent growth, which translates to strong rental yields. Our industrial properties generally have modern specifications, are strategically located, and are central to the business operations of our tenants. Given these attributes, we expect the slowdown in industrial construction to benefit our assets. Furthermore, we believe that all office portfolios are not created equal. The limited near-term rollover in our office segment being less than 5% over the next three years and the relatively young age of these assets are key differentiators that provide stability while the markets reach equilibrium. We're confident in our ability to navigate the evolving market, unlock opportunities for growth, and maximize shareholder value. We will now turn the call over to the operator to take a few questions from analysts. Operator?
Mike: Thank you Javier our outlook on the industrial market is positive we are well positioned to capture past and future rent growth, which translates to strong re leasing spreads our industrial properties generally have modern specifications are.
Michael J. Escalante: Our strategically located and are central to the business operations of our tenants.
Michael J. Escalante: Given these attributes we expect a slowdown in industrial construction to benefit our assets.
Michael J. Escalante: We believe that all office portfolios are not created equal.
Michael J. Escalante: The limited near term rollover in our office segment being less than 5% over the next three years and relatively young age of these assets are key differentiators that provide stability, while the markets reach equilibrium.
Michael J. Escalante: We are confident in our ability to navigate the evolving market.
Michael J. Escalante: <unk> opportunities for growth.
Michael J. Escalante: And maximize shareholder value.
Speaker Change: We will now turn the call over to the operator to take a few questions from analysts.
Michael J. Escalante: Operator.
Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. Your first question comes from Josh Dinnelein with Bank of America. Please go ahead.
Speaker Change: Thank you, we'll now be conducting a question and answer session.
Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Your first question comes from Josh <unk> with Bank of America.
Speaker Change: Please go ahead.
Unknown Executive: Hi, this is Val Granath on behalf of Josh. Good afternoon. I was wondering if you could give a little bit more color on the rent abatement in the industrial portfolio.
Speaker Change: Hi, This is <unk> on behalf of Josh.
Unknown Executive: Good afternoon.
Unknown Executive: Was wondering if you could give a little bit more color on the rent abatement in the industrial portfolio.
Unknown Executive: Yeah, sure. This was one of our leases in the 11th year, so we back-ended the rent abatement, and it happened to occur in this last quarter for one of our industrial properties.
Unknown Executive: Yeah sure. This was one of our leases that are in the 11th year. So we back ended the AR.
Unknown Executive: Rent abatement and it happened to occur in this last quarter.
Unknown Executive: For one of our industrial properties.
Unknown Executive: And.
Unknown Executive: when saying the 11th year is the end of their lease. The ending of
Unknown Executive: One thing the 11th year is this.
Unknown Executive: The ending are pending.
Unknown Executive: Pending of their lease.
Unknown Executive: Since the ending of the original term, they've opted for a five-year extension.
Unknown Executive: The ending of the original term.
Unknown Executive: Opted for a five year extension beyond that.
Unknown Executive: Okay.
Unknown Executive: And I also wanted to ask about the cap rates coming in on the dispositions. Is it possible to walk through cap rates on things that closed last quarter?
Speaker Change: And I also wanted to ask about.
Unknown Executive: The cap rates.
Unknown Executive: Coming in on the dispositions is it possible to walk through cap rates on things that are closed last quarter.
Michael J. Escalante: Hello, Farrell. It's Mike Escalante. Hopefully, we can see one another out of Neri.
Unknown Executive: So Hello, Phil It's Mike Escalade take hope.
Michael J. Escalante: Hopefully can see one another out at NAREIT.
Michael J. Escalante: So, you know, we generally don't comment on them on a one-off basis. We've been keeping track since the beginning of last year of the stabilized assets that we have sold, so those are properties that have some remaining terms, as opposed to being vacant or nearly vacant. So over that entire time frame, our stabilized assets have, I think. The weighted average cap rate is now 7.8%. I think as of last quarter, Kimwood was 7.6%, something like that, a little bit higher.
Michael J. Escalante: So you know, we generally not a con.
Michael J. Escalante: Commented them on a one off basis.
Michael J. Escalante: We've been keeping track since the beginning of last year of the stabilized assets.
Michael J. Escalante: We have sold so those are properties that have some remaining term.
Michael J. Escalante: As opposed to being bacon or nearly vacant so over that entire timeframe, our stabilized assets I think.
Michael J. Escalante: The weighted average cap rate is now seven 8% I think as with last quarter. The cumulative was seven six something like that.
Michael J. Escalante: A little bit of it.
Unknown Executive: Thank you for that. I guess just when thinking about the construction of the portfolio and the split between investment grade and sub-investment grade assets, how are you thinking about that when it comes to the ability to sell sub-investment grade assets at a stronger cap rate? I guess you are thinking about your capital recycling.
Speaker Change: Okay. Thank you for that and I guess, just when thinking about them.
Unknown Executive: The construction of the portfolio and the split between investment grade and southern gross investment grade assets.
Unknown Executive: How are you thinking about that when it's coming to the ability to sell southern gross investment grade.
Unknown Executive: At a stronger cap rate or I guess thinking about your capital recycling.
Speaker Change: I'm not sure I fully understand your question, but you know.
Unknown Executive: We have a legacy portfolio that has been very heavily weighted towards investment grade tenancy.
Michael J. Escalante: Yeah, I'm not sure I fully understand your question. But you know, we have a legacy portfolio that has been very heavily weighted towards investment grade tenants. Our industrial segment, I think it is 74% taking into consideration the three components of arriving at that, and our office segment is nearly 70% itself, so the industrial and office segments, which are more of our core holdings, are just under 70% combined. We are a more active seller in our other segment, and that segment is only 42% investment grade across the properties that remain.
Michael J. Escalante: Our industrial segment I think is 74% taking into consideration the.
Michael J. Escalante: Three components of.
Michael J. Escalante: Of arriving at that and our office segment is nearly 70% itself. So industrial and office segment, which is more of our core holdings or just just under 70% combined.
Michael J. Escalante: We are more active seller in our other segment.
Michael J. Escalante: And that segment is only 42% investment grade.
Michael J. Escalante: Cross the port the properties that remain.
Michael J. Escalante: You can, I think, see that on slide five of our presentation. I think it's in our IP, you know, so that's where we've been more active on the sales side. So I don't, I don't know that it's been it has assisted the potential buyers in getting an attracting community and regional banks for purposes of arranging debt on the buy side, if I think of that, that answers your question. If not, Do you have a follow-up? So that's great.
Michael J. Escalante: I think see that on slide five of our.
Michael J. Escalante: I think it's in our IP.
Michael J. Escalante: So that's where we've been more active on the sales side. So.
Michael J. Escalante:
Speaker Change: I don't.
Michael J. Escalante: I don't know that it's been.
Michael J. Escalante: It has assisted the potential buyers and getting and attracting community.
Michael J. Escalante: And regional banks for purposes of arranging debt on the buy side I think of that.
Michael J. Escalante: Answers your question if not do you have a following.
Unknown Executive: No, no, that's great. Thank you. That's it for me.
Speaker Change: No no that's great. Thank you that's it for me.
Speaker Change: Thank you.
Unknown Executive: Thank you there are no further questions at this time I'll now hand back to Michael for closing comments.
Operator: Thank you. There are no further questions at this time. I'll now hand it back to Michael for closing comments.
Michael J. Escalante: Thank you, Operator, and thank you everyone for attending the call. We greatly appreciate your support and attendance. Just trust that our team is very much engaged in maximizing value for the portfolio, and we've got the right team to be engaged in this particular marketplace, and I think the performance that we've achieved, both on the leasing and the disposition side, the ability to raise cash and improve the makeup and composition of our balance sheet, all sort of proves the abilities of our team. So thank you for this time and for attending the call.
Michael: Thank you.
Michael: Greater and thank you everyone for attending the call. We greatly appreciate your support and following and.
Michael J. Escalante: Just trust that our team is very much engaged in.
Michael J. Escalante: Maximizing value for the portfolio.
Michael J. Escalante: And we've got the right team to be engaged.
Michael J. Escalante: In this particular market marketplace and I think the performance that we've achieved.
Michael J. Escalante: Both on the leasing on the disposition side, the ability to raise cash and.
Michael J. Escalante: Improve the makeup and composition of our balance sheet, all sort of proves up the abilities of our team. So thank you for this for this time and.
Michael J. Escalante: Attending the call we will see.
Speaker Change: See on the next turn.
Michael J. Escalante: Operator.
Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
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unknown: Hum.
unknown: [music].
unknown: Mhm.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Yeah.
unknown: [music].
unknown: Yeah.
unknown: [music].
unknown: Yeah.
unknown: Yeah.
unknown: Yeah.
unknown: [music].
unknown: Uh-huh.
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: Uh huh.
unknown: [music].
unknown: Hum.
unknown: Mhm.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Yeah.
unknown: Okay.
unknown: Yeah.
unknown: [music].
unknown: Uh-huh.
unknown: [music].
unknown: Oh.
unknown: Hello.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: Hmm.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: No.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Yes.
unknown: [music].
unknown: Uh-huh.
unknown: [music].
unknown: Oh.
unknown: Uh huh.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: Hum.
unknown: [music].
unknown:
unknown: Uh huh.
unknown: [music].
unknown: Mhm.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Mhm.
unknown: [music].
unknown: Uh huh.
unknown: [music].
unknown: Yeah.
unknown: [music].
unknown: Oh.
unknown: Uh huh.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: Hmm.
unknown: [music].
unknown: Okay.
unknown: Uh huh.
unknown: [music].
unknown: Hum.
unknown: Mhm.
unknown: [music].
unknown: Uh huh.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Oh.
unknown: [music].
unknown: Uh huh.
unknown: [music].
unknown: Uh huh.
unknown: [music].
unknown: Huh.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Oh.
unknown: Uh huh.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Hum.
unknown: [music].
unknown: Okay.
Speaker Change: Oh, Oh Oh.
unknown: [music].
unknown: Okay.
unknown: [music].