Q1 2024 Lument Finance Trust Inc Earnings Call
Okay.
Good morning, and thank you for joining the lumen Finance Trust first quarter 'twenty 'twenty four earnings call. Today's call is being recorded and will be made available via webcast on the company's website.
I'd now like to turn the call over to Andrew Charles with Investor Relations at Bloom investment management. Please go ahead.
Good morning, everyone and thank you for joining our call to discuss limit Finance Trust first quarter 2024 financial results.
Andrew Charles: With me on the call today are Jim Flynn our CEO.
Jim Briggs our CFO.
Jim Hansen, our president and.
That's how burn our managing director and portfolio management.
On Thursday May nine we filed the 10-Q with the SEC and issued a press release to provide details on our first quarter results.
We also provided a supplemental earnings presentation, which can be found on our website.
We're handing the call over to Jim Flynn I'd like to remind everyone that certain statements made during the course of the call are not based on historical information and May constitute forward looking statements within the meaning of section 27, a M. The securities at 1933.
Section 21 E Securities Exchange Act of 1934.
Such forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements.
These results and uncertainties are discussed in the company's filings.
Reported with the SEC in particular in the risk factors section of our Form 10-K.
It's not possible to predict or identify all such risks and listeners are cautioned not to place undue reliance on these forward looking statements.
Andrew Charles: The company undertakes no obligation to update any of these forward looking statements.
Are there certain non-GAAP financial measures will be discussed on this conference call.
The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.
Andrew Charles: Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP can be accessed through our filings with the SEC.
For the first quarter of 2024, the company reported GAAP net income of 11 and distributable earnings of 15 cents per share of common stock respectively.
In March we also declared a dividend of seven cents per common stock common.
Andrew Charles: Common shares with respect to the first quarter.
Speaker Change: Great quarter.
Speaker Change: Now turning the call over to Jim Flynn. Please go ahead.
Yeah.
Thank you Andrew Good morning, everyone welcome to the Alumina Finance Trust earnings call for the first quarter of 2024, we appreciate everyone joining today.
Let's start as we enter 2024 cost a little cautiously optimistic the lending environment.
Begin to improve during the first half of the year.
We are now in early May the fed has yet to inflammation implement any rate cuts in the economic data suggests.
<unk> has remained stubbornly elevated.
The economy and labor market remained rather resilient. Despite the historically increases in short term rates that began over two years ago.
Although the fed has indicated that they don't expect future hikes. During his remarks couple of weeks ago. The consensus view of higher for longer seems prudent until the trend in economic data suggest otherwise.
Okay.
Speaker Change: The multifamily sector continue to be challenged during the first quarter was muted property sales activity, leading to limited acquisition financing opportunities.
Speaker Change: Given the persistence of elevated interest rates borrowers have also been reluctant to refinance their portfolios and less compelled to do so.
Speaker Change: Just this week, the MBA announced first quarter volumes.
Lending volume with multifamily down 7% year over year in Q1 and down 29% from Q4 of 2023.
Despite the challenging short term environment.
<unk> 500 billion of multifamily mortgage debt is expected to reach initial maturity by the end of 2025. According to MBA estimates.
When combined with the perhaps causing property sales transaction volumes to move toward a new normal level of activity, we expect to see a return of attractive lending opportunities in the medium and long term.
Multifamily is an asset class continues to outperform other CRE property types and we believe this is the reason our company provides its shareholders with a unique value proposition.
So he has a deliberate focus on middle market multifamily credit success in asset management and strong sponsorship provided by the broader limit and orix platforms.
As a result, the company has been able to maintain a stable dividend with better than average credit performance status investment portfolio and the superior dividend yield relative to many of our peers.
Having effectively fully deployed our investable capital in the second half of 2023, our focus this quarter was on proactively managing our portfolio to protect shareholder principle.
We successfully resolved the two five rated assets from our December 31.
For it and maintain a stable weighted average risk rating of three five for the quarter ended March 31, with no specific reserves recorded during the period.
We increased our available unrestricted cash quarter over quarter, and then Q1 with approximately $65 million compared to $51 million in December.
As of December 31.
The increased liquidity will allow us to maintain flexibility in achieving positive asset manage outcomes for our shareholders and provide us with the potential to deploy capital into attractive investment opportunities outside of our two existing securitization structures.
In the meantime, we have heard relatively attractive returns on our cash deposits given the elevated short term rates.
Our portfolio continues to be financed with long dated secured financing that is not subject to mark to market margin calls.
That's all one CRE CLO, we closed back in 2021 is now beyond just reinvestment period and has begun to delever with repayments of its collateral.
We continue to explore opportunities to refinance the portfolio.
As of quarter end the cost of funds for Fr. One plus software plus 157 at an effective advance rate of approximately 82%.
Levels. This is believe are still attractive relative to other portfolio of financing alternatives available in the market.
Yeah <unk>.
Transaction, we executed mid last year.
As the remaining reinvestment periods that extend through July 2025, and we fully intend to reinvest capital as liquidity within that structure becomes available.
Speaker Change: With that I'd like to turn the call over to Jim Greg.
We'll provide details on our financial results.
Yes.
Thanks, Jim Good morning, everyone last evening, we filed our quarterly report on Form 10-Q.
Provided a supplemental investor presentation on our website, which.
Which we will be referencing during our remarks.
Mental investor presentation has been uploaded to the webcast as well for your reference.
On pages four through seven of the presentation, you will find key updates an earnings summary for the quarter.
For the first quarter of 'twenty four we reported net income to common stockholders of approximately five 8 million or <unk> 11 per share.
Speaker Change: Also reported distributable earnings of approximately $7 6 million or <unk> 15 per share.
Speaker Change: There are a few items I'd like to highlight regarding activity during the period.
Speaker Change: Our Q1 net interest income was $13 million compared to $9 1 million in Q4 of 23 to.
The sequential increase was primarily driven by higher exit fee income.
Greater quarter over quarter payoff activity with the <unk> portfolio.
And $3 million related to the resolution of two defaulted loans, one collateralized by an office property located in Columbus, Ohio, and which we reduced our carrying value to zero and the other collateralized by multifamily property located in Virginia Beach, Virginia, which was modified during the quarter with among other things previously pass through interest being brought current.
Payoffs during Q1 totaled $97 million as compared to 43 million in the prior quarter associated Q1 exit fees.
Approximately 825000 as compared to 210000 recognized in the prior quarter.
The majority of loan payoffs, we experienced were driven by borrowers either refinancing with a lot of another lender.
Selling the underlying properties as a reminder, when one of our loans are refinanced with a permanent agency loan provided by an affiliate of our manager the.
The borrower exit fee is waived pursuant to the terms of our management agreement niche instances, we do however received a credit equal to 50% up to wave to exit fees against our reimbursable expenses due to our manager.
Credit for rate waived exit fees was flat quarter on quarter.
Speaker Change: Our total operating expenses were $4 3 million in Q1 versus $2 7 million in Q4 of 23. The majority of the sequential increase in expenses was driven by the accrual of incentive fees due to our manager which.
Our prudent payable on a quarterly basis equal to 20% of your excess of core earnings.
As defined in our management agreement and over an 8% per annum return thresholds.
<unk> can be used synonymously with core earnings in this context.
Outside of that operating expenses were largely flat quarter on quarter.
The primary difference between reported net income and distributable earnings to common was approximately 1.8 million attributable to the increase in our allowance for credit losses, all with respect to our general reserves.
Property acquisition volume continues to remain depressed leading to limited visibility in the market with respect to valuation and cap rates.
The increase in general reserves reflective of changes in the macroeconomic forecast, including current higher rates for longer sentiment as well as cautiousness in our modeling as it relates to CRE pricing during this period.
As of March 31, we had two loans risk rated five for default risks.
One is a 17 million dollar loan collateralized by a multifamily property in Brooklyn, New York and risk rated five due to eminent maturity default.
Their asset has a 20 million dollar loan collateralized by two multifamily properties near Augusta, Georgia. It is risk rated five due to monetary default.
Both of these loans have been placed on non accrual status while both of these although both of these loans have since made their April interest payments, which will be recognized in income on a cash basis.
We evaluated both of these five rated loans individually to determine whether asset specific reserves for credit losses are necessary.
After an analysis of the underlying collateral determined that none were necessary as of March 31.
As of year end, the company's total equity was approximately $243 million total book value of common stock.
It was approximately $183 million or $3 50 per share up from $3 46 per share as of year end.
We ended the first quarter with an unrestricted cash balance of $65 million and our investment capacity through our two secured financings, where it's effectively fully deployed.
Speaker Change: Well now turn the call over to Jim Henson to provide details on the Companys investment activity and portfolio performance during the quarter.
Jim.
Thank you Jim.
I will now share a brief summary of the recent activity in our investment portfolio.
During the first quarter L F T experienced $97 million of loan payoffs.
Fortunately these loan payoffs related to the defaulted loans discussed by Jim Briggs earlier.
We did not acquire any new loan assets during the first quarter.
Speaker Change: As of March 31, our portfolio consisted of 81% floating rate loans with an aggregate unpaid principal balance of approximately $1 3 billion.
100% of the portfolio was indexed to one month so far.
Speaker Change: And 94% of the portfolio was collateralized by multifamily properties.
An analysis of our net interest income sensitivity to shifts in terms over appears on page 12 of the earnings supplement.
Our investment portfolio continued to perform well during the first quarter and we ended the period with slightly more than 77% of the loans and portfolio risk rated a three or better.
Marking a slight improvement versus the fourth quarter of 2023.
Our weighted risk average rating remains stable at three 5% sequentially.
Our five rated aggregate loan exposure decreased to approximately $38 million this quarter versus $46 million as of year end.
At the time of our last earnings call. We had two five rated loans that have now been fully resolved.
As expected we received additional insurance proceeds in the amount of $13 $5 million on the default alone on the property in Columbus, Ohio.
Speaker Change: Reducing the carrying value of this loan to zero.
And after taking into consideration legal and other costs, resulting in the recognition of one time income of approximately $2 $5 million.
During the first quarter.
The other five rated asset at the end of 2023 was a defaulted loan on a multifamily property in Virginia Beach, Virginia.
Speaker Change: We entered into a loan modification with the borrower.
And received a $3 $6 million.
Partial principal pay down during the first quarter.
Last week, the borrower repaid the remaining loan balance in full in accordance with the terms of that loan modification.
We are very pleased to have achieved positive asset management outcomes for these loans, thanks to deep deep experience and diligent efforts of our team.
Speaker Change: With that I will pass it back to Jim Flynn for closing remarks and questions.
Thank you Jim Thanks Stu.
James Peter Flynn: Our attendees and your interest and operator, please open the call for questions.
James Peter Flynn: Thank you ladies and gentlemen, we will now begin the question and answer session. So do you have a question. Please press star followed by one and you will hear a pump, but the hand, that's been raised circulation declines from the polling process. Please press star followed by two and if you are using a speaker phone. Please. Please go ahead.
James Peter Flynn: <unk> said before pressing any keys.
James Peter Flynn: Our first question comes from the line of Christine Love from Piper Sandler Your line is open.
Thanks, Good morning, So no new.
The investments in the quarter, but you did have some pay offs. So can you just speak to some of the drivers.
Patients going forward.
A quarter with lots of opportunity cautiousness in the market or anything else you would call out and then just how would you expect new investments to compared to pay offs in the coming quarters.
Thanks.
James Peter Flynn: So.
Speaker Change: Yes go ahead, Sir to me about that okay, yes. So.
As noted in the call earlier.
Fell one which is our 2021.
<unk> is out of its reinvestment period.
New investments previously we're often.
Speaker Change: Reinvestment of that securitization.
So right now we're.
Basically our capacity given that F. L. One is out of the investment period and LMS.
The 2023.
Speaker Change: Financing transaction is at capacity.
<unk>.
Speaker Change: We do have 60 plus million of cash.
It's just a matter of.
Strategically looking to refinance at the old one.
<unk>.
And.
Planning with that excess cash accordingly.
There's something to consider over the next couple of quarters as <unk> continues to deleverage but.
Over the near term.
Over the next quarter to two quarters.
I don't know that we'll see.
F L. One.
Speaker Change: Refinanced, but that'll all be market condition dependent.
Right.
The answer is yes.
You know were effectively fully deployed.
With with obviously the elevated cash so.
In answer to your question I would expect to.
Be able to to fill any reinvestment capacity that we have.
Reasonably.
Unless it's Ed.
Very end of the quarter, we will be able to.
Despite the rare.
The relatively slow market there are lending opportunities.
Speaker Change: Right, Okay that makes sense I appreciate that and then <unk>.
Question for me just can you just give us your views on credit in the portfolio provision increased a bit here credit metrics were stable in the regulations, we're going to stay but but are there. Some other competitors have been having temporary speed.
Experiences as of late.
Anything on credit that you're seeing would be helpful. And then they might think you might be.
Speaker Change: Performing better than some of the peers in the space here.
Well you know.
The honest answer is I think we've done a very good job of putting together a quality portfolio.
And.
We've had good sponsors who have worked with us to come up with.
Resolutions two challenging situations.
We feel pretty.
Tal today and comfortable that we will continue to be able to do that.
The existing portfolio.
We've had.
The structure of our of our loans.
<unk> always had rig counts we've had milestones for <unk>.
The draw down of new capital in terms of.
Rental increases in Nashville.
Yeah business planned milestones.
We have provided opportunities to work with sponsors sometimes sooner in the process.
That others may have been able to.
In General I think I think you were you were.
Speaker Change: Did a good job on the front end and have very very good asset management and portfolio management group.
Spend a lot of time at the assets and with the sponsors and making sure that we're.
Finally on top of issues.
This does.
There's not something more secret than that other than I think we have a really good credit team.
Great. Thank you Jen I appreciate you taking my questions.
Speaker Change: Thank you.
Our next question comes from the line of Jason Weaver from John's Cindi. Please go ahead.
Hey, good morning, Thanks for taking my question.
Jason Weaver: First of all.
Jason Weaver: Polk to this in the last question regarding <unk>.
The wind down of Bethel, one I was curious.
How much credit spreads have tightened in here quarter to date and over the first quarter.
Jason Weaver: The opportunity is more immediate two to pursue that refinancing and where youre seeing.
Generalized spreads out there.
So I mean on the credit side.
From at 80, 82% and 157 over.
There is no opportunity, that's really even close to that.
I'd, rather private or public.
But.
As you pointed out.
As time goes by and we continue to Delever.
Jason Weaver: The cost of those phones will increase.
Yes, you asked the media, where we're evaluating it.
We have been and continue to do so.
Depending on how you define immediate.
Jason Weaver: We think that there is potential this year or early next year.
Potentially refinance that but it's really going to be dependent on.
The capital markets, obviously, we can get it done.
Thank you.
I should say I shouldn't say obvious, but I think you can get a refinance them in the public markets I think there's other structures with.
Private or non capital markets transactions that would provide for refinancing but today.
Frankly, they're economically not as attractive.
To to pull the trigger.
Jason Weaver: In our opinion, but we're getting closer to.
To that and we are working with our banking partners.
<unk>.
<unk>.
The failure of ways, we might refinance that portfolio in a way that does make sense.
Perhaps sooner.
Then later, but.
The short answer is we feel comfortable with the financing.
Jason Weaver: Today.
And want to continue to.
Take advantage of that.
Relative cost of capital and frankly higher leverage.
Jason Weaver: So we might otherwise achieve outside of <unk>.
Update a new deal, but it is something we're continuing to do every month.
Look at the market look at what we can.
Got it and compare.
Long term, what we're getting.
And I'll also note I mean, we said that I mentioned, the 500 billion of maturities coming up.
So.
We're already almost halfway through 2024, so that number is.
We've been pushed into 'twenty five already with expenses, we just don't have that data in the market yet.
So the opportunity is coming.
We're already seeing more for sure, but it's nowhere near where it's been.
A couple of years ago.
So.
Jason Weaver: That's also a consideration just in terms of.
Taking advantage of refinancing and creating more more capacity.
We want to make sure that we have attractive investment opportunities at that time as well. So that's part of the equation as well.
Yes.
A direct answer but thats our thought process.
We talked about it internally and with the board every time, we meet.
No that's still very helpful and I was also curious.
With the liquidity build that you've seen to date and taking into your answer into account with what you're likely to see on more repayments any change in your posture towards how youre thinking about possible share repurchases.
Okay.
It sounds like it's been on the table with the board.
Yes.
One of the there's obviously a number of issues right the size of the <unk> being a big one.
It's certainly something we consider.
But it's weighing the benefits.
Liquidity future investment capacity.
Jason Weaver: Okay.
The immediate kind of benefit to shareholders.
And how that might impact the long term.
Okay.
Okay. Thank you very much for taking my questions.
Okay.
Our next question comes from the line of Stephen Laws from Raymond James. Please go ahead.
Hi, good morning.
Nice start to the year.
Number out of the gate.
To get the two five rated loans resolved.
Stephen Albert Laws: Can you touch on the resolution paths for the new five rated loans I know you.
Said, both paid April and a specific reserve. So so good updates there, but can you talk about timing of resolution path on those too.
I guess two loans, but three assets.
Yes exactly.
Yes.
Yeah, I mean, I think that that is.
It's very real time conversation.
I don't think were prepared to share the exact resolution path at present.
But just like what you've seen from us in the past.
Yes, thats involved.
Yeah.
Hands on active management negotiation.
Stephen Albert Laws: With the sponsors.
Push towards quick resolution.
Okay, and then to circle back to the CLO is I guess.
I saw one specifically looking at Q4 that spread was was $1 55, and only increased even with 70, some odd million dollars of Prepays to $1 57 is it.
Can you help me with the math, there how I think about that going forward.
Pro rata pay structure in some way or I was little surprised with that level of prepays at that financing cost didn't increase by more than two basis points sequentially.
Yes, I mean, what I'd say is that.
The 2021 securitization.
And with the Big AAA and then.
Pretty flat.
Stephen Albert Laws: Read down the stack.
Meaning that this isn't a 600 basis points.
<unk> spread.
I don't have exactly offhand, where the triple D is but I want to say its in the 300.
Youre only seeing Marshwan crease in.
Spread from that Triple H hanged out it is the AAA is paying down it's not a.
Pro rata.
The other tranches.
Just mechanically.
What the numbers it will shift up as the AAA continues to pay down but.
Not excessively frankly the.
The larger issue there is just the deleveraging right. The fact that you have less debt on.
Stephen Albert Laws: On your equity.
And that will be the primary driver of the nature of Covid ultimately.
Okay I appreciate that.
Yes, and its size.
It's a bigger securitization and the other ones to that.
Sure.
It will in our smallest of Triple T. The tripoli's that tied it probably stays pretty attractive FERC for some time.
I guess.
Think about incorporating other financing structures you mentioned I mean would you look at bank lines and along those lines where spreads on new investments for what you see as you look at opportunities and how did those spreads compare with.
You know, what what bank lines, but banks are charging these days.
Stephen Albert Laws: If you were to go that route and kind of considering a lower advance rate on those facilities.
Fully levered ROE look like if he chose a path like that to open.
Stephen Albert Laws: Open up the growth opportunity.
Speaker Change: Well I think there is so there's I think there's two.
Two questions. There are two answers one is.
The refinancing of the if we were to refinance.
Yes.
With us.
Turns out bank lines.
I think you're asking.
Stephen Albert Laws: That spread in that leverage would.
It would be negotiated and I don't think.
It would certainly be.
Yes.
Related correlated to a market, but it wouldn't be the same as our new warehouse setting.
Those spreads so new asset spreads are.
There is a wide range because of the credits there is a wide range.
Stephen Albert Laws: Yeah.
You have a high quality new construction deals.
Better that are coming out of construction into lease up.
Relatively low leverage.
Pricing in this in the mid to high two hundreds low three hundreds depending on where.
What.
You have extended.
Plans for Briggs.
Bridge loans.
Have taken longer and are maybe getting recap.
With the new sponsor same sponsor.
Stephen Albert Laws: For an extra couple of years there.
Probably more in the three hundreds.
Stephen Albert Laws: <unk>.
And then you probably have some and then you can go into that.
You know, maybe higher leverage different markets above that which we're not typically see too much but.
Those are so the asset spreads as we're trying to balance.
Some of the credit risk versus the.
Stephen Albert Laws: The return obviously as we've done so we will have a balance of those opportunities.
And I think warehouse and bank spreads when you're when you're thinking about what those look like in the market, which we don't have LST, but the sponsor obviously, we do.
Those those credit spreads and leverage relates to the asset side. You said, so you have I would say in the high one hundreds.
Low two hundreds purdue deals newly originated deals.
Stephen Albert Laws: And leverage.
70% to 75% is pretty pretty.
Market I would say.
<unk> or Andrew or any way you guys have more to add there, but I think thats about where things are.
Yes, that's spot on.
Well, that's great color and I really appreciate you walking through those those numbers for me.
Thanks for the comments this morning.
Our next question comes from the line of Christopher Nolan from Ladenburg Thalmann. Please go ahead.
Hi, Thanks for taking my questions. The Brooklyn, non accrual is that a rent stabilized buildings.
Zack do you have the exact answer I'm sure. There's some that are.
Yeah check on it.
Stephen Albert Laws: Alright, it's primarily market rate.
Okay to be clear.
Yes.
I will state.
It's very likely that that is not an issue this et cetera.
Stephen Albert Laws: Value is not an issue on that one stay that okay, and then for the loan portfolio in general do you have any interest only loans.
Well, they're all equal.
Yes, I mean sort of a floating or stuff that's all interest only.
Stephen Albert Laws: Which is the portfolio I mean, the bridge portfolio is interest only there are rebalancing requirements that would require principal paydowns and those exist.
And of the funds.
Speaker Change: Okay, and then a question of a recap.
Speaker Change: Of.
What these underlying bridge loans are there theyre typically there are two or three year terms.
Speaker Change: Floating rate and interest only did you have interest rates.
Caps.
Speaker Change: Which are purchased by the sponsors.
But the bridges.
Primarily you know, whether it's us or.
Competitors in the space they are interest rate interest only loans.
Speaker Change: And I guess given that.
How does that affect your reserving methodology, just because these borrowers sort of how the larger balloon payment at the end of normally.
So.
I'll, let I'll, let Jamie and Greg speak to that.
So the process, but just in general I mean.
When we look at our when we do an asset by asset analysis of our portfolio.
From my perspective.
The actual process, but the key metric we're looking at the start.
Speaker Change: Is what's our basis our loan to value.
Speaker Change: And so.
That's the that's the primary driver so weather.
In some cases, we obviously have assets that maybe started at 70.
Theres LTV it might be 75 or 80 today, that's not the case.
Yes.
Loss value, but our credit position is pretty good so that's where that's where we are.
Kind of evaluating and then obviously we're looking at.
Market in the comps.
So we're doing it through asset by asset analysis on whether we think there's an impairment or risk of loss on the.
General reserves on the FIFA side that is a.
More macro market driven analysis in Ireland.
That is less focused on.
The specifics of our portfolio and we're focused on.
Industry.
And macro trends.
Yes.
We've generally taken we'll take a pause or concern.
Yes.
It is going to be a combination.
Both Cecil requires a look forward on what the macro environment and the forecast is going to be.
We choose the one year period for that.
But to Jim's point.
Collateral value and Ltvs.
That is a big driver.
As well and.
Youre seeing that in our in our general reserve rate I talked about our general cautiousness in this period as we must at all where theres not a lot of activity getting done and the observer ability of cap rates and valuation.
That's sort of speaking to ltvs right collateral value. So the same drivers that Jim talks about is going to be a big driver of the reserve.
There is going to be this macro.
Speaker Change: Economic look as well because it's expected losses over the life.
And we need to be.
Forecasting.
And we saw that macro for us that that macro forecast move.
Two or more of we're not going to see rate cuts.
Soon as we thought we.
We're gonna in dogs, they're going to come later in the year potentially so.
Speaker Change: It's a combination of both but I would say that LTV is is going to be a driver there and what's the driver of the reserve.
Thanks.
Speaker Change: Okay. Thank you.
And then I guess a reminder is first to ask a question. Please press Star Alliance.
Speaker Change: Our next question comes from the line of Greg Lang.
UBS. Please go ahead.
Good morning, Good report.
The recoveries on the commercial building I guess to me sort of looks like an extraordinary gain.
If we strip out that gain what do distributable.
Income per share numbers look like.
Speaker Change: Okay.
Speaker Change: Did those more of those those one timers work out to be about <unk>.
Speaker Change: Okay.
For the one timers and I spoke about the incentive.
So that's sort of going the other way for about <unk>.
So, but the one timers in particular, where we're about <unk>.
Thank you very much.
There are no further question at this time I will now turn the call over to our presenters. Please go ahead.
I want to thank everyone for your time and interest and look forward to catching up again next quarter. Thank you Sir.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
Yes.
Okay.
[music].
Sure.