Q4 2024 Granite Point Mortgage Trust Inc Earnings Call
Diego: Good morning. My name is Diego, and I will be your conference facilitator.
Diego: Are we looking statements reflect our views regarding future events and are subject to uncertainties and could cause actual results to differ materially from expectations.
Diego: Please see our filings with the SEC for a discussion of some of the risks.
Diego: Could affect results, we do not undertake any obligation to update any forward looking statements.
Diego: We also refer to certain non-GAAP measures on this call.
Diego: Information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.
Diego: A reconciliation of these non-GAAP financial measures to most comparable GAAP measures can be found in our earnings release and slides, which are available on our website.
Jeff: Now I'll turn the call over to Jeff.
Thank you, Chris and good morning, everyone. We would like to welcome you and thank you for joining us for granite Point's fourth quarter full year 2024 earnings call.
Jeff: Before discussing our results I'd like to take a moment to remember our board member Reid Sanders, who passed away last month.
Jeff: He served as a member of our board of directors since our company's inception.
Jeff: He was a trusted advisor to granite point and a superb demand.
Jeff: We and our board will miss him greatly.
Jeff: Now.
Jeff: Turning to our business activities.
Jeff: 24 marked a year of substantial progress for granite point, and resolving nonperforming loans and collaboratively working with our borrowers to facilitate repayments.
Jeff: Both were driven by our proactive approach to asset and balance sheet management against a backdrop that continues to be challenging for the commercial real estate industry with more volatility and eventually somewhat less optimistic outlook for rates going into 2025.
Jeff: The federal reserve rate cuts, while less than anticipated did help improve liquidity in the commercial real estate market in the second half of the year.
Jeff: And there's a growing consensus that real estate prices for both sectors and markets have already bottomed out contributing to a more positive sentiment in the market.
Jeff: Liquidity has reimbursing certain sectors, most significantly for the FASB conduit and more recently the commercial real estate CLO markets.
Jeff: Meanwhile, liquidity in the floating rate transitional middle market sector.
Jeff: Proving remains less robust, particularly as regional and community banks, who had remained largely on the sidelines are just now starting to reemerge.
Jeff: We expect these banks to remain less active indirect lending compared to prior cycles, which will present attractive longer term opportunities for non bank lenders to grow their market share over time.
Jeff: In 2024, we successfully resolved nine loans totaling about $344 million in principal balance at or near our carrying value and realized about $415 million of loan repayments paydowns and amortization.
Jeff: With much of this activity culminated during the third and fourth quarters.
Jeff: So far in 2025, we resolved two more office loans totaling about $97 million for a total of $441 million of resolutions since the beginning of 'twenty 'twenty four.
Jeff: We have successfully executed on a variety of resolution strategies each fit it to the particular situations.
Jeff: We are pursuing a resolution over the remaining five rated loans most of which are in various stages of their respective processes.
We anticipate several of these transactions will be finalized through the first half of this year. So we expect some others to require a longer timeframes.
Jeff: Portfolio management approach continues to emphasize our balance between timing potential profitability book value impact liquidity and other factors with the goal of optimizing the economic outcomes for our company and various stakeholders over the long term.
Jeff: To that point, we have opportunistically deployed capital into our own securities. During 2024, we repurchased about $2 4 million of our common shares $1 2 million of those purchased in the fourth quarter, reflecting our strong belief that our stock continues to be significantly undervalued.
Jeff: We currently have about four 8 million shares remaining under our existing authorization and we intend to remain offered thomistic with respect to any future buyback activity.
Jeff: Overall market sentiment has improved over the past few quarters. Despite the disappointment, resulting from the fed pivot and rates are trending higher as.
Jeff: As the market enters 2025 with a more positive they'll still tempered outlook. We believe liquidity in transaction. Finally, we will continue to improve over the course of the year and the commercial real estate market with improving fundamentals for most property types across many markets.
Jeff: With the progress we have made in 2024 and so far in 2025, our current volume of nonperforming loan resolutions should continue to meaningfully exceed any potential future credit events.
Jeff: With these ongoing resolutions our run rate profitability should improve over time, as we pay down expensive debt and create more earning assets.
Jeff: We anticipate that with further portfolio turnover through loan resolutions and repayments, we will be positioned to return to new originations in the latter part of the year and we grow our portfolio, while improving our run rate profitability driving attractive total shareholder returns.
Speaker Change: I would now like to turn the call over to Steve Halper to discuss our portfolio activities in more detail.
Steve Halper: Thank you Jack and thank you all for joining our call. This morning.
Steve Halper: We ended the fourth quarter with total loan portfolio commitments of $2 2 billion and then outstanding principal balance of $2 1 billion with about $91 million of future fundings, which accounts for only about 4% of total commitments.
Steve Halper: Our loan portfolio remains well diversified across regions and property types and includes 54 investments with an average U P. B of about $39 million and a weighted average stabilized LTV of 64% at origination.
Steve Halper: As of December 31st our portfolio weighted average risk rating remained stable at 3.1.
Steve Halper: Our realized loan portfolio yield for the fourth quarter was about six 6% net of the impact of non accrual loans, which we estimate to be about 214 basis points.
Steve Halper: During the quarter, we funded about $60 million inclusive of $12 million of existing loan commitments and upsides as plus a $48 million loan assumption from our New York mixed use property resolution, which was treated as a new loan for GAAP purposes.
Steve Halper: We had an active quarter of loan repayments pay downs and resolutions totaling about 303 million, resulting in a net loan portfolio reduction of $243 million.
Steve Halper: So far in the first quarter, we have funded about $3 million of existing loan commitments and realized two loan resolutions totaling about $97 million of <unk>.
Steve Halper: Given our emphasis on maintaining liquidity and resolving our remaining nonperforming loans, we expect our loan portfolio balance to trend lower in the coming quarters before we begin reinvesting our capital re leveraging and Regrowing later this year.
Steve Halper: We have made substantial progress addressing the five rated loans in our portfolio with resolutions of nine loans totaling about $344 million during the year and then active fourth quarter.
Steve Halper: During the quarter, we successfully resolved four of those non accrual loans totaling about $176 million in UTD through a variety of strategies.
Steve Halper: As we mentioned on our third quarter earnings call a $33 million loan secured by an office property in New Jersey was resolved in October through a loan sale.
Steve Halper: The Minneapolis hotel property, securing a $29 million alone and the Denver office property, securing a $20 million alone where both resolved via all cash sales by the respective sponsors.
Steve Halper: The New York mixed use office and retail property, securing a $94 million alone was resolved through a sale of the underlying property with a loan assumption by the purchaser.
Steve Halper: The assumed long was modified with a reduction in the unpaid principal balance of 94 million to $48 million.
Steve Halper: Now we'd like to provide some color on the balance of our risk rated five loans.
Steve Halper: At year end, we had seven such loans with a total U P b of about $453 million.
Steve Halper: So far in 2025, we have resolved two of these seven loans totaling about $97 million of NPV.
Steve Halper: In January we took title to the Miami Beach office property, securing a $71 million alone.
Steve Halper: In February we resolved the $26 million loan secured by an office property located in Boston through a sale of the collateral property.
Steve Halper: As a result of these resolutions. We currently have five loans, Randy five with a balance of $356 million and we expect to resolve most of them during the next few quarters.
Steve Halper: The Baton Rouge mixed use property securing an 80 million dollar alone is currently in an active process that could conclude over the next few months.
Steve Halper: The sale process for the office property, securing our $80 million alone in Chicago remains ongoing and could conclude over the next few quarters.
Steve Halper: In Minneapolis hotel, securing a $53 million alone is in an active process that may conclude over the next couple of quarters.
Steve Halper: During the quarter, we downgraded a $50 million loan secured by a student housing property in Louisville, Kentucky to a risk rating of five.
Steve Halper: The property had been subject to a confidential multiyear arbitration process between the borrower and many third parties.
Steve Halper: We anticipate a longer resolution timeline for our $93 million alone in Minneapolis, given the persistent local market challenges.
Steve Halper: Resolving these remaining five rated loans remains one of our top priorities.
Steve Halper: Turning to our two Oreo assets held at December 31st we continue to pursue a potential sale for the Phoenix office property and the process remains ongoing and that process could conclude over the coming months and quarters.
Steve Halper: The office property in suburban Boston continues to perform well with a strong cash flow profile and has significant development potential which we are currently exploring.
Steve Halper: Both our REO properties remain unlevered as of quarter end and serve as a source of additional liquidity, which we may access in the coming months to further optimize the balance sheet and increase our financial flexibility.
Steve Halper: We will continue to prioritize maintaining higher liquidity for more optionality, which as we resolve these assets will allow us to begin originating new loans during the second half of 2025.
Steve Halper: I will now turn the call over to Blake to discuss our financial results and capitalization.
Blake: Thank you Steve.
Blake: Everyone and thank you for joining us today.
Blake: Turning to our financial results for the fourth quarter reported GAAP net loss of $42 4 million.
Blake: Negative 86 cents per basic common share, which includes a provision for credit losses of $37 2 million or negative 75 cents per basic common share mainly related to the collateral dependent loans.
Blake: A bit of a loss for the quarter was $98 2 million or negative $1.98 per basic common share, which includes write offs of $95 2 million or a negative $1.92 per basic common share.
Blake: Write offs were related to four nonaccrual loan resolutions that Steve discussed earlier.
Blake: Our book value at December 31 was $8 47 per common share.
Blake: Represents a decline of about 78 cents per share for Q3.
Blake: It was primarily due to the provision for credit losses, partially offset by the accretive share buybacks opportunistically executed during the quarter.
Blake: We estimate benefited book value by about 13 cents per common share.
Blake: Our aggregate seasonal reserve at December 31 was about $201 million or $4.12 per common share as compared to $259 million last quarter.
Blake: $5.18 per common share.
Blake: The $58 million decline in our <unk> reserve was driven by $95 2 million of write offs related to four resolutions.
Blake: Partially offset by an increase of provision for credit losses of $37 2 million.
Blake: Approximately 77% of our total allowance for $155 million is allocated to individually assessed loans, which implies an average estimate of loss severity of about 34% down those assets.
Blake: But the two resolutions that occurred subsequent to year end, we expect to recognize a realized write off of approximately $24 5 million, which were previously reserved for in our allowance.
Blake: I believe we are appropriately reserved for further resolutions should meaningfully reduce our total seasonal reserve balance.
Blake: As of yearend, we had about $453 million of principal balance and seven loans on non accrual status.
Blake: All seven of these loans are on cost recovery.
Blake: The incoming interest is applied to reduce loan principle, rather than being recognized in earnings which is estimated to be about $2 6 million in the fourth quarter.
Blake: We anticipate the run rate profitability of the company to improve as we continue to resolve non earning assets repay expensive debt and reinvest our capital over time, though the exact time and the magnitude remain difficult to predict and will also be dependent on the volume of loan repayments and the level of short term interest rates.
Blake: Turning to liquidity and capitalization, we ended the year with about 88 million of unrestricted cash and total leverage remain unchanged at two point to relative to the prior quarter.
Blake: Funding mix remains well diversified and stable and we continue to enjoy continued support from our lenders highlighting our long standing relationships.
Blake: We expect to expand our financing capacity once we return to originating new loans more actively.
Blake: Adam a few days ago, we carried about $75 million of cash that we expect to increase in the near term from further loan repayments and the potential financing of our Unlevered Oreo assets.
Blake: I will now ask the operator to open the line for questions.
Thank you and at this time, we will be conducting a question and answer session.
Blake: If you would like to ask a question. Please press star one on your telephone keypad.
Blake: Confirmation tone will indicate that your line is that the question to you.
Blake: You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Speaker Change: Our first question comes from Doug Harter with UBS. Please state your question.
Blake: Yeah.
Thanks Hope.
Blake: You could go through a little bit more detail on the new five rated assets that resulted in the incremental provision.
Blake: And.
Blake: Just.
Blake: What kind of help give us comfort as to the current.
Blake: Kind of.
Blake: Less than five rate better than five rated loans today, and whether there'll be no comfort as to whether there'll be incremental downgrades a need for provisioning in coming quarters.
Steve Halper: Hey, Doug Good morning, it's Steve I'll part thank you for joining the call.
Steve Halper: The first thing I'll say, which maybe was the second part of your question is that we go through all the risk ratings every quarter or two.
Steve Halper: Cecil every quarter so with the information we have now we feel we feel comfortable with that with the risk rankings in the reserves.
Steve Halper: As far as the two new fives that we talked about.
Steve Halper: During our prepared remarks.
Steve Halper: The the Louisville student housing property.
Steve Halper: During the fourth quarter as we mentioned, we downgraded that one from a risk rating of four to five.
Steve Halper: I think we said that that property had gone through a.
Steve Halper: A fairly lengthy.
Steve Halper: Confidential arbitration process between the borrower a bunch of third parties.
Steve Halper: That concluded during the quarter.
Steve Halper: That was really the driver of moving from a four to five.
Steve Halper: The arbitration award came in a bit lower than expected.
Steve Halper: Also during the quarter, we we extended that loan.
Steve Halper: Out to Nov.
Steve Halper: November 2025, and we're continuing to work with the sponsor on a resolution.
Steve Halper: Which are still early but could include a sale of the property.
Steve Halper: The other one was the Miami Beach office asset.
Steve Halper: We mentioned that we took title to that property during the quarter.
Steve Halper: During the first quarter.
Steve Halper: A very high quality prop.
Steve Halper: Property in Miami Beach is a strong vibrant market.
Steve Halper: The issue there was really related to the prior owner.
Steve Halper: Who is under capitalized and they were not investing.
Steve Halper: Into the property. So we've taken that back it's early days, but it's a good property and good market and we'll have more to talk about in the coming quarters.
Steve Halper: Yeah.
Steve Halper: Got it and then you guys mentioned the possibilities.
Steve Halper: Putting on some leverage against the Oreo.
Steve Halper:
Steve Halper: What would be the need for that liquidity.
Steve Halper: Are there kind of other kind of significant liquidity.
Steve Halper: Drags or usage.
Steve Halper: The moment, you know kind of what would what would be the rationale to to kind of.
Steve Halper: Put that leverage on.
Steve Halper: Hi, Doug. Thank you for joining us this is Jack.
Steve Halper: Our still earn a maintaining and building liquidity mode. As we work through the resolutions. We don't have anything targeted that we see that's coming that we say we need to have this liquidity for but it is a means.
Steve Halper: For us to maintain our liquidity bring it up higher than it is we expect.
Steve Halper: Through some repays and some other stuff will have more liquidity here on the cash side in a.
A matter of weeks, but it's just to maintain the flexibility if we put leverage on it will maintain the flexibility for us it's not that we're anticipating.
This particular set of problems that will absorb it.
Great. Thank you.
Steve Halper: Yeah.
Speaker Change: And our next question comes from Steven Delaney with citizens JMP. Please state your question.
Steven DeLaney: Good morning, everyone. Thanks for taking the question we're hearing very.
Steven DeLaney: Positive comments about the state of the CLO market, both in execution and.
Steven DeLaney: Buyer demand I'm curious with your you have two CLO 2021 vintage.
Steven DeLaney: Gotcha, what three plus years old.
Steven DeLaney: Is there any opportunity.
Steven DeLaney: As we go into 2022.
Steven DeLaney: In some way refinance combined is there any transactional opportunity for you to it too.
Steven DeLaney: Improved that.
Steven DeLaney: The financing from a cost standpoint, or potentially even extract more.
Steven DeLaney: Funding in other words improved the leverage on those on those CLO. Thank you.
And Steve. Thank you for the question this is Jack.
Steven DeLaney: The answer's, yes, but not in the very near term. We welcome this acceleration of CLO activity, which even in December people were predicting a far smaller amounts and they are now and.
Steven DeLaney: We believe that this.
Steven DeLaney: Market as I've said in the past.
Steven DeLaney: As a independent non arbitrage reason to exist and that's being manifested in its resurgence now.
Steven DeLaney: We intend to take advantage of that but on the <unk>.
Steven DeLaney: As you recall, what we did in the past with our first two fellows as we refinance them into a repo lender.
Steven DeLaney: That's a possibility and also for the F. L. III F. O. Four that's also possible to take a portion of the assets that are in F. L. III NFL for the ones that you're referencing.
Steven DeLaney: And then with new originations and existing assets to refinance into the CLO market.
Steven DeLaney: That won't be.
Steven DeLaney: And the next quarter or two but it could be towards the end of the year and.
Steven DeLaney: We intend on taking advantage of the CLO market on a going forward basis.
Steven DeLaney: That's great to hear.
Speaker Change: One follow up for <unk>.
Speaker Change: Steve Albert's comments, you were talking Steve, but the five rated loans and you mentioned four rated loans, but I missed how many four rated loans that you currently have or that you had at year end.
Speaker Change: Biggest that bucket.
Speaker Change: Sure Hey, Steve.
Speaker Change: And we had four loans rated four and the <unk> was a little under $170 million.
Speaker Change: Great. Thanks for that and just a comment to close.
Speaker Change: <unk> very much the buyback I think at stock below 40% of book, it's something that needs to be done yet obviously have to balance that against liquidity and other opportunities, but do applaud the.
Speaker Change: The effort there that youre, making on behalf of the shareholders.
Speaker Change: Oh.
Speaker Change: Smoother sailing in 2025, then Ben maybe than we all saw in 2020 for wishing the best.
Speaker Change: Thank you. Thank you very much.
Speaker Change: Thank you and a reminder to the audience to ask a question at this time press star one on your telephone keypad.
Speaker Change: To remove yourself from the queue press start to once again ask a question press star one.
Speaker Change: Our next question comes from Jade Rahmani with K B W. Please state your question.
Jade Rahmani: Thank you very much.
Speaker Change: The Kentucky deal has been on the books since 2017 and just looking through.
Jade Rahmani: The presentation.
Jade Rahmani: Your last SEC filing.
Jade Rahmani: Plenty alone that are pre 2020 vintage and yet there's only four loans that are risk rated four.
And then there's the risk rated five that you went through so well, it's such an old vintage and legacy in the portfolio you really need to provide investors with some sense of how active your asset manager.
Jade Rahmani: <unk>.
Jade Rahmani: And how you know we won't be surprised by these credit downgrade and large.
Jade Rahmani: Reserves. In addition to that I mean, the loss severities that G. PMT has been taken on quite substantially higher than many peers not all of the peers, but many of them.
Speaker Change: I guess on the Kentucky, if you could just provide some sense as to why the downgrade happened now since this is such an old vintage and then talk more broadly to the level of asset management, that's going on.
Jade Rahmani: The risk one through three rated loans.
Jade Rahmani: So Jay Thank you.
Speaker Change: Uh huh.
Speaker Change: The question that I'll address what I'll say is.
Speaker Change: There's a lot that you have in there.
Speaker Change: We've been doing a lot of asset management across the portfolio, including the one through three and the vintage.
Speaker Change: Nominal vintage if you will.
Speaker Change: Is not the full story.
Speaker Change: Been a tremendous amount of loan modifications paydowns et cetera over the years that have brought these.
Speaker Change: Deals largely to a more current state if you will because they've been reworked so much some of that is the proof is in the pudding and that we've had a significant amount of prepayments throughout this period running at for 'twenty two 'twenty three 'twenty four at very high levels.
Speaker Change: The mid Twenty's to high twenties.
Speaker Change: Including a proportional basis of office loans.
Speaker Change: And in the high teens in 2024, which we expect will continue.
Speaker Change: On our predictions are through the course of this year. So the age of the loans is pre COVID-19 or Covid vintage and then we've reworked them secondly, with respect to the.
Speaker Change: Okay.
Speaker Change: Asset in Kentucky.
Speaker Change: Steve mentioned this but it was very complex we were in.
Speaker Change: We're not party to this.
Speaker Change: Litigation arbitration slash mediation that that grew over time, and we were not party to it and just to put it.
Speaker Change: Some range around that it was between a highly reputable very skilled.
Speaker Change: Owner developer.
Speaker Change: And a group of 26 Counterparties.
Speaker Change: Various contractors and insurers. This was a confidential process that have as many people who've been involved in arbitrations what else.
Speaker Change: Can be dragged on for years as new evidence develops et cetera, and that's what happened here. So that went on and we were not allowed to be part of that process. We weren't part of the process. So we should put it on.
Speaker Change: A long time ago, as a potential downgrade and unfortunately, the arbitration resolved in a way that was not meeting expectations of the sponsor so.
Speaker Change: In defense of that possibility, we had built up a large reserve.
Speaker Change: Ah is a four rated asset found it very difficult to speak in any more detail about about this given the confidential nature nature of the process and not wanting to affect the process.
Speaker Change: So what we ended up with is a.
Speaker Change: A small incremental increase to the.
Speaker Change: Reserve them out over what we already had even though it was a large nominal amount.
Speaker Change: Okay, I guess in that case I understand each one of these things each one of these deals is it.
Speaker Change: Its own Rubik's cube, that's true.
Speaker Change: Commercial real estate, they're all stories like that but the fact that this happened now so long after the origination is very surprising.
Speaker Change: And then I understand but let me say the catalytic event. If you will was the mediation arbitration coming to the conclusion during the fourth quarter.
Speaker Change: With a result that was not what the.
Speaker Change: Older had wanted.
Speaker Change: Predicted or desired so that was the catalytic effect, which then as soon as we were aware of that.
Speaker Change: We were able to.
Speaker Change: Take action with the greater information that we had.
Speaker Change: Okay.
Speaker Change: I guess the next question is a bigger picture strategic question and it has to do with capital management.
Speaker Change: You know.
Speaker Change: Barry It sounds like though it says don't drink Youngblood you know.
Speaker Change: I'd say the dividend is five then to share in your normalized earnings ex all of these items was minus 6%.
Speaker Change: And you say like Youre getting closer.
Speaker Change: Why not cut off the dividend.
Speaker Change: Rather than pursue entering any debt.
Speaker Change: Number one number two why not be an aggressive lender and take a lot more into Oreo and participate in the turnaround and upside in these assets, which would be the best way to potential value creation, rather than spending money on stock buybacks just to.
Speaker Change: Partially offset the sharp reductions in book value that we're seeing I mean book value still went down sharply even though there was a.
Speaker Change: Dennis.
Speaker Change: The buyback it still went down a lot more than that so you know I think that you should maybe consider pivoting.
Speaker Change: Pivoting no dividend.
Speaker Change: And be aggressive and take assets into Oreo and maybe you could manage them better.
Speaker Change: And what's going on and that could give some upside to investors.
Speaker Change: So let me talk about the dividend first it's something that we discuss with the board.
Speaker Change: And.
Speaker Change: And it's their decision.
Speaker Change: There's a variety of reasons to sustain it given that we expect that was very hard to predict when we will be able to start covering the dividend and that will be dependent upon resolutions and prepayments and candidly the start originations, which will be sometime in the latter half of <unk> as we've said of 2025.
Speaker Change: Secondly, the.
Speaker Change: If you look at our credit performance as percentage of Oreo.
Speaker Change: Combined with <unk>.
Speaker Change: Our reserves, we have a much larger reserve number because we haven't taken this washington to Oreo, but we're basically running with a substantial number of competitors that are about the same level of Oreo plus reserve numbers now we.
Speaker Change: <unk> found that we've been able to.
Speaker Change: Borrower has lost the problem, but as part of the solution and even if there and we've maintained excellent relationships even if they are in.
Speaker Change: And out of the money situation or belief that there's substantially or are there risks, we will work with them and in many cases I don't want to save money, but multiple cases, we've taken in the with such a borrower we've worked very intensely with them.
Speaker Change: And we have acquired.
Speaker Change: A percentage of the upside.
For future recovery, so what we've addressed it in a different way.
Speaker Change: Lee.
Speaker Change: <unk>.
Speaker Change: Some of these situations maintaining good liabilities right instead of replacing it with what it would be say for distress office asset much more expensive liabilities, we've been able to maintain very valuable liabilities by not taking it into Oreo keeping the asset and as I said.
Speaker Change: In some cases cheaper a percentage of the upside. So we we acknowledge what you say that we have a.
Speaker Change: Les <unk> as a percentage of more reserves, if you will because we carry.
Speaker Change: These loans, but we have been taking properties back when it's been like Miami situation, where the borrowers certainly wasn't part of the solution.
Speaker Change: And and then other situations like the suburban Boston, So just kind of a complex answer but that's our view on it is it is preserved preserving liabilities that are quite valuable and in many cases getting a percentage of the upside.
Speaker Change: Okay. Thanks for addressing that really appreciate it.
Speaker Change: Thank you chip.
Speaker Change: Thank you and there are no further questions at this time I'll now hand, the floor back to Jack Taylor for closing remarks.
Jack Taylor: Well, thank you operator.
Jack Taylor: Really want to thank everybody, who has joined us on the call today and for your time and attention. Neither supported the company, but also a big thanks to our team for accomplishing so much this year and all the hard work that went into it.
Jack Taylor: And finally I'd like to thank the board of directors and a big welcome to our two new Board members, Patrick culture, and Lazard Nicholas.
Jack Taylor: And we wish you a very nice day and holiday weekend. Thank you.
Jack Taylor: Thank you and that concludes today's call. All parties may now disconnect have a good day.