Q1 2025 NorthWest Healthcare Properties Real Estate Investment Trust Earnings Call
Good day and welcome to the Northwest Health care properties REIT first quarter 2025 earnings conference call.
At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time this call.
If at any time during this call you require immediate assistance. Please press Star then zero for an operator.
Speaker Change: Is being recorded today Thursday may 15th 2025, I would now like to turn the conference over to MS. Elissa Berry Investor Relations for Northwest. Please go ahead ma'am.
Speaker Change: Thank you operator, good morning, everyone and welcome to Northwest first quarter 2025 conference call. Thank you for joining US today. This call is being recorded and a replay will be available on our website at triple W. Dot N. W. H REIT Dot Com. Today's discussion includes forward looking statements as always I want to caution you that such statements.
Speaker Change: <unk> are based on management's assumptions and beliefs.
Speaker Change: These forward looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. Please see our public filings on SEDAR, plus including our MD&A and annual information form for a discussion of these risk factors. Please note all currencies referenced today are in Canadian dollars unless otherwise stated.
Speaker Change: Presenting on today's call are Craig Mitchell, our CEO and Stephanie care Markovich, our CFO, Mike Brady. Our President is also here and available for the question and answer session I will now turn it over to Craig for his opening remarks.
Speaker Change: Thank you Lisa good morning, everybody and thank you for joining us today.
Speaker Change: We entered 2025 with a clear plan to simplify the business.
Speaker Change: Strengthen our balance sheet and grow earnings.
Speaker Change: I'm pleased to report that our first quarter result reflects meaningful progress on all those fronts.
Speaker Change: We increased iPhone.
Speaker Change: So unit by 15% over the same period last year.
Speaker Change: System with Q4.
Speaker Change: And marking what we believe is the new sustainable base.
Speaker Change: Our payout ratio now sits at 92%.
Speaker Change: These results reflect disciplined execution cost control and the underlying strength of our where to start.
We've also completed the $260 million in noncore asset sales year to date, continuing to execute on our capital allocation strategy.
Speaker Change: These proceeds were used to reduce debt and enhance our liquidity position, giving us greater financial flexibility as we move through the year.
Speaker Change: Operationally, we are delivering same property NOI increased by four 5% with steady contributions across all regions.
Speaker Change: This was driven by inflation index leases capital upgrades and improved cost recoveries.
Speaker Change: Our global portfolio continues to demonstrate strength at 96, 5% occupancy right.
Speaker Change: Underpinned by strong tenant retention at 89%.
Speaker Change: On a weighted average lease expiry of 13 six years.
Speaker Change: These metrics speak to the quality and resilience of our portfolio.
Speaker Change: Especially in the context of continued global uncertainty.
Speaker Change: Over the past 12 months, we've also made real progress on deleveraging.
Speaker Change: Proportionate debt is down by 1 billion, including the sale of our assure stake post quarter end.
Speaker Change: Well, we exit from the UK and a 20% premium to do that.
Speaker Change: December book value.
Speaker Change: Turning to Hill's Scott Australia's second largest private hospital, operator, northwest IL 12, or their hospitals Galaxy joint venture as.
Speaker Change: As mentioned on our call in March following sector margin pressures exasperated by its capital structure.
Speaker Change: Scott requested temporary relief from its lenders syndicate and landlords, including northwest.
Speaker Change: During the quarter the rate and helps good reached a partial rent deferral arrangement not abatement for a period from March one 2025 to 11th of May 2025, and since quarter end has agreed to provide a further partial rent deferral until July 18 2025.
Speaker Change: Totaling 3.3 million at the rates proportional share.
Speaker Change: As of today, all rent owing to the rate from health scope has been paid and he'll scope continues to meet or lease obligations.
Speaker Change: So scope has continued to an orderly transition of control to lenders, who will continue to sell presses, while health scope hospitals continue to operate with over $100 million of current cash available for operations.
Speaker Change: Our first day sell prices has begun with 10 bidders participating we will keep you updated during the sales process.
Speaker Change: Lastly, we're in the final stages of our see our recruitment the bill.
Speaker Change: Lord is working diligently and we will share more on this soon in the meantime, I'm here and will ensure a smooth and seamless transition.
Speaker Change: With that I will turn it over to Stephanie to walk through the financials.
Stephanie Markovich: Thanks, Craig and good morning, everyone.
Stephanie Markovich: Q1 marked another strong quarter of operational and financial performance. We delivered consolidated same property net operating income of $73 8 million at four 5% year over year with every region contributing positively North America up four 1%, Brazil for eight Europe.
Stephanie Markovich: She 0.1, and Australia Asia 5.3 S. P. NOI growth was driven by inflationary adjustments on rents rental life capital spend and improved operating cost recoveries.
Stephanie Markovich: Leasing performance remained strong and nearly 280000 square feet of leasing was completed in the quarter with an 89% renewal rate.
Stephanie Markovich: This speaks to tenant satisfaction and operational stability.
Stephanie Markovich: Q1, 2025, I thought, though was 11 per unit, excluding the impact of accelerated amortization of financing cost on debt repaid during the quarter following our bond issuance.
Stephanie Markovich: This compares to nine cents per quarter in Q1 24, excluding the impact of interest rate caps that have since expired.
Stephanie Markovich: Q1, 2025 F. F. O was 10 cents per unit up 15% from Q1, 'twenty 'twenty four and consistent with Q4, excluding the impact of previously mentioned interest rate cap.
Stephanie Markovich: Our payout ratio continues to trend lower landing at 92% this quarter down from 105% a year ago.
Stephanie Markovich: The increase in <unk> per unit is driven by improvements in interest expense and G&A, partially offset by lower NOI from disposition activity and third party management fees.
Stephanie Markovich: On the cost side, we're remains we're maintaining our focus general and administrative expenses, excluding non cash comp decreased by 1.1 million compared to Q1, 'twenty four driven by lower head count and a more streamlined operating structure.
Stephanie Markovich: Our Q1 G&A cost ratio came in at six 7%, reflecting the seasonal impact of certain front loaded corporate costs. Looking ahead. We're still we still expect this ratio to normalize to approximately 5.5% by year end as our efficiency initiatives continue to take hold.
Stephanie Markovich: Gross management fees for Q1, 2025, or 8.6 million consistent with Q4, but lower than Q1, 'twenty 'twenty, four where management fees were $10 6 million.
Stephanie Markovich: The decrease in management fees as compared to prior year reflects lower levels of activity based fees being earned in the current environment.
Stephanie Markovich: Interest expense decreased to $35 1 million this quarter down from $55 4 million in Q1 24. This reflects a lower weighted average interest rate and a reduction in total debt.
Stephanie Markovich: We're proud to have achieved an investment grade rating from Morningstar D. B R. S. In February this paved the way for our inaugural 500 million unsecured debenture offering with proceeds used to refinance higher cost debt, including the reached 10% series G convertible debentures, which were repaid on March 31st.
Stephanie Markovich: The REIT asset sales of over $260 million, including the post quarter sale of Assura in early April April helps reduce our proportionate leverage to 55, 9% and consolidated leverage to 48, 6%.
Stephanie Markovich: These are meaningful reductions that strengthen our balance sheet and will support earnings growth in future quarters.
Stephanie Markovich: During and post quarter, the REIT proactively refinanced and extended several 2026 debt facilities, including its revolving credit facility in Australasia and term loans as a result, our economic weighted average interest rate declined by about 52 basis points to 5% and we extended our average weighted average terms.
Stephanie Markovich: The maturity to three three years.
Stephanie Markovich: Importantly, the REIT has only approximately $96 million of 2025 maturities remaining comprised of mortgages in Canada and Europe.
Stephanie Markovich: Reached 20, twenty-six proportionate debt maturities of approximately $420 million over 50% or approximately $230 million is maturing in the fourth quarter of 2026.
Stephanie Markovich: As of today the rights available liquidity is approximately $270 million.
Stephanie Markovich: We've entered the year with real momentum our strategic repositioning is gaining traction and we're committed to driving sustained earnings growth and value creation for our unit holders. Our Q1 investor presentation, which is available on the Investor Relations section of our website provides more details on Q1 portfolio performance financial <unk>.
Stephanie Markovich: <unk> and our accomplishments.
I'll now pass it back to the operator to open up the call for questions.
Stephanie Markovich: Thank you we will now begin the question and answer session.
Speaker Change: To join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request.
Speaker Change: If youre using a speakerphone please pick up your handset before pressing any keys and Swift draw. Your question. Please press Star then two.
Speaker Change: And our first question will come from Frank Lee with BMO. Please go ahead.
Frank Lee: Good morning, guys morning, Frank.
Speaker Change: I just want to firstly tartare, how school I believe it yourselves playing to prevent the business culture of wall exploring for potential new buyer, Craig probably yeah, you'll probably have the best knowledge of Austria House carrier system that any of US here do you think any operator in Australia would be interested it too.
Frank Lee: By at least a portion of their hospitals.
Any cases do you think the Garvin will stop in to keep the hospitals.
Frank Lee: Ronnie.
Brian: Brian Thanks for your question.
Brian: Firstly, yes, the hospitals.
Brian: Staying open and their operational and there's over 100 million of liquidity.
Brian: To ensure that in addition to that.
Speaker Change: As lenders have taken control they will provide another $100 million facilities if required so all the halston all 38 hospitals are staying operational.
Brian: To your second question.
Brian: Yes, it's a very very good portfolio and round one bids came in a couple of weeks ago and they were 10 active bidders in that in that round.
Brian: We know a lot of those.
Brian: They are Australia and operators and they are very interested in whole or part of the portfolio.
Brian: And the whole portfolio.
Brian: And the part would following the part includes all of our portfolio.
Brian: Got it so so I mean that means like there's there's a high possibility that the hospitals will stay open and then it's just us changing hands.
Brian: Why is that.
Brian: Yes.
Brian: That's exactly right. The Austin's will stay open and there'll be a change of <unk>.
Speaker Change: <unk> ownership.
Speaker Change: Away from the Brookfield sponsored fund.
Speaker Change: Two a new lineup.
Speaker Change: Alright, and then probably Easter and we probably expect that to be by sort of Q thinking about around Q3, and it will take three to four months for that process to play out.
Speaker Change: Right and I assume theres wouldn't be any changes to the in place leases because of the seasons our longer long term lease right now.
Speaker Change: I think that we have contractual rights and we will ensure that we protect our contractual rights.
Speaker Change: Got it.
Speaker Change: So like to.
Speaker Change: Endorse that says the.
Speaker Change: The deferral, what's what's the total amount of Oh why are you guys are generating on a proportionate basis from a H S. L. I don't have a hyper focus out of revenue, yes. So on an annualized basis is about $24 million.
Speaker Change: Which is our proportionate share.
Speaker Change: We're a 12 month period.
Speaker Change: So yeah, we provided 2.3 million deferral.
Speaker Change: Of which we get back on the 31st of October to be repaid.
Speaker Change: Right and other obligations are there currently.
Speaker Change: The fully con.
Speaker Change: The range on the first of May.
Frank Lee: Perfect clarity here, Thank you Frank.
Speaker Change: Thanks, just a couple falling question stuff quickly, probably Stephanie has better knowledge of us. So I mean as Q1 I guess.
Speaker Change: G&A side should calm down a little bit for this year I know you noted a five 5% of all three but all of a dollar value basis.
Speaker Change: So I guess.
Speaker Change: Whats kind of the run rate for the year, because that always fluctuating a little bit quarter over quarter.
Speaker Change: And yeah and.
Speaker Change: Not going to speak to a run rate per se I think that the 5.5 percentage is to clarity I want to give back that is a reduction of cost and coming cost coming down.
Speaker Change: And head count, which is driven by head count reductions and inefficiencies.
Speaker Change: Right and then.
Speaker Change: In terms of Streetlight, Ryan INO I noticed there's always pick up in Q1, so I assume it's going to burn off throughout the year as you know.
Speaker Change: Thank the Q1 straight line rents is fairly consistent with our run rate Yeah, I don't think there's anything abnormal in there.
Speaker Change: Okay got it okay perfect. Thank you guys I'll turn it back.
Brian: Thank you Brian.
Speaker Change: The next question will come from Dean Wilkinson with CIBC. Please go ahead.
Dean Wilkinson: Thanks, Good morning, everyone, maybe just sticking on the H S L, which I imagine is going to be a common theme.
Speaker Change:
Speaker Change: Stephanie in the 229 of the equity accounted investments how much of that figure is is specific to your 30% ownership.
Speaker Change: And in the trust.
Speaker Change:
Speaker Change: Give me a second here.
Speaker Change: Okay. So about $160 million about 160, Okay, and I guess, just because what has been going on in and its influx.
Speaker Change: You didn't need to take any charge against that or how should we be thinking about that going forward.
Speaker Change: Yes.
Speaker Change: We had the.
Speaker Change: In Q1, we had all the 12 properties desktop appraised.
Speaker Change: By values.
Speaker Change: It sits in our books and about 400 million with a cap rate of about five 3%.
Speaker Change: So at this stage, it's been softening a bit zane, but there's been no material change.
Speaker Change: Okay.
Speaker Change: And then I guess under.
Speaker Change: New ownership structure, how would your involvement in that look would you go Parry pursue one that 30% would you have to come up with equity or.
Speaker Change: Just how does that sort of going to work.
Speaker Change: Yes. So there is no change and so there is no equity we would put in.
Speaker Change: So that 30.
Speaker Change: 30% would stay said, we put no equity.
Speaker Change: We would just negotiate.
Speaker Change: And work out who the new new owner of the businesses. So there's no equity injection for us.
Speaker Change: Okay. So really its just a change to the 70%.
Speaker Change: Oh no.
Speaker Change: It's because the 70% is GIC, 30% is off so the fund doesn't change it just becomes the HSI whoever who is our current relationship would be another party who is.
Speaker Change: Okay.
Speaker Change: Gotcha whoever that would be.
Speaker Change: That will come in time, okay perfect.
Speaker Change: Last one just.
Speaker Change: Just on the sale of the <unk>, the Assura units and I assume not.
Speaker Change: Not wanting to wait for a potential bid taking the cash makes sense.
Speaker Change: We're able to shelter that gain or do you think that there may be some form of a distribution that has to come with a with with the lift that you got there.
Hi, Deane and yeah, we don't anticipate there was no cash tax payable by the REIT as a result of the gain realized through our holding structure and we don't anticipate having to pay any special distribution as a result.
Speaker Change: Perfect I like no special distributions, it's easier to model.
Speaker Change:
Speaker Change: Good for me I'll hand, it back thanks. Thank you.
Suraj: The next question will come from Suraj for any Geneva with core Mark Securities. Please go ahead.
Speaker Change: Thank you operator, good morning northwest.
Speaker Change: Sure.
Speaker Change: Greg This is probably a question for you.
Speaker Change: Back last year your guidance was essentially around mid twenties. When he fires when you are looking to kind of transition.
Speaker Change: Considering that student that leadership search phase right now.
Speaker Change: I think that I meant ships for you.
Speaker Change: No it doesn't.
Speaker Change: I'm still looking to step down in mid 2025, I'm also still.
Speaker Change: Enjoy a seamless transfer to the new C C.
Speaker Change: So we're still on track for that timing.
Speaker Change: Yeah.
Speaker Change: Fair enough and maybe just broadly on the transaction market, but there you know slowly adding indoors until middle of the yard and maybe them towards the end.
Speaker Change: We see a lot of transactions takes place and you know are you seeing opportunities now Waldorf and comparatively defense that you saw last year.
Speaker Change: U S economy will always go round the world with that question.
Speaker Change: The only market that seems to be opening up and things have some transaction would be Europe side, there seems to be interest in Europe.
Speaker Change: Okay and is that something you'll probably look at it in terms of opportunities.
Speaker Change: Look too early to say, but I suppose what is interesting with the Shaw transaction when catch you off with a 100% bid.
Speaker Change: They've been a 5.2 cap or cash so that sort of underpins.
Speaker Change: That increased activity in Europe.
Speaker Change: And maybe just go into that just so part of the transaction and you know what.
Speaker Change: Let people one questions.
Speaker Change: The assets that you don't currently own.
Speaker Change: 48 hospital portfolio are there hospitals that you could probably think about bidding for.
Speaker Change: No I mean, there are some great hospitals in our portfolio that way down on that.
Speaker Change: With our exposure with 12 hospitals I can't see it naturally at.
Speaker Change: At this stage increasing that exposure.
Speaker Change: Alright, Thank you I'll turn it back thank you.
Speaker Change: The next question will come from Giuliano Thornhill with National Bank Financial. Please go ahead.
Giuliano Thornhill: Hey, guys good morning.
Speaker Change: Just going back to Asia, So I'm.
Speaker Change: I'm just wondering Craig if we could I have your thoughts on where do you think the issue is with the Australian health care kind of structure. It now like what could the Australian government do though would help operators and what would kind of resolve the current kind of profitability.
Speaker Change: Profitability.
Speaker Change: Fuel situation that's there.
Speaker Change: Well thanks for that question if I go back before Covid, the health insurers were paying roughly 90% of the.
Speaker Change: Fees are getting from members to the private hospital.
Speaker Change: Industry.
Speaker Change: During COVID-19, the 90% dropdown at 82%, so effectively that will giving increases which were below inflation.
Speaker Change: However, during Covid and post Covid, the cost base with nurses and consumables were increasing above inflation that saw a negative squeeze.
Speaker Change: There's a lot of pressure.
Speaker Change: On the.
Speaker Change: Insurers to increase up 82% 84, or even the size of 86%.
Speaker Change: And that Delta from 82 to 86 as an example, another $1 billion worth of revenue into the private hospital market. So that's where the pushes.
Speaker Change: The center less government was in.
Speaker Change: Was the government in Australia, we just had an election they won by a landslide. So we are seeing a consistent political view on that basis, and that's where I think we'll see some some more revenue come from the health insurers into the <unk> market.
Speaker Change: And so the only way to kind of get from that 82 to 86 889 area would that just be health care reform or tax reform to kind of change the structure.
Speaker Change: How much yeah, it'd be more health care reform is more putting pressure on the insurers.
Speaker Change: To to basically give them money to the private hospitals that process has started so I'll skip ahead of quite a few wins.
Speaker Change: Late last year, and some increases as high as 10% from insurers and that will continue I believe in 2025 and beyond so there's not really a reform.
Speaker Change: Whether it happens or not the health Minister affect you said is if the industry doesn't come to its own positive solution. The government will stop putting some mandates in place. So that's what they've publicly said whether they do it is an interesting question.
Speaker Change: But that's where the pressure is coming from.
Speaker Change: Okay. Thanks, and then of the 10 bidders how much of those are operators versus P.
Speaker Change:
Speaker Change: That's right I don't want to come back.
Speaker Change: No I'm thinking I think eight similar to <unk>.
Speaker Change: Seven write like a majority who operates.
Speaker Change: Hi.
Speaker Change: And do you have much a lot of say in who takes over the operations of your of your portfolio.
Speaker Change: So are you involved a lot in the in that process.
Speaker Change: Ultimately, it's not a decision, but yes weird influenced that and we are talking towards the operators.
Speaker Change: And how they bid.
Speaker Change: Okay and then just.
Speaker Change: My My last question just how are you weighing the bids the benefits of keeping.
Speaker Change: I guess the portfolio intact.
Speaker Change: Like your portfolio intact versus.
Speaker Change: Potentially breaking it up and to different operators, but potentially keeping fair values the same of.
Speaker Change: On one hand, you might have lower rent by keeping it intact to one person, but on the other hand or at least fair value stay the same but it's split up no very good question.
Speaker Change: We're modeling as you appreciate we're looking at all scenarios.
Speaker Change: Third World Z. All came together that we are considering the the latter as well to make sure we're clear.
Speaker Change: Okay.
Speaker Change: Thank you yes.
Speaker Change: Thank you.
Speaker Change: The next question will come from Pamela <unk> with RBC capital markets. Please go ahead.
Speaker Change: Good morning, everyone just.
Speaker Change: As the lenders worked through this the sale process now what's your sense of or have they provided a timing or a timeline on the process over the next few months.
Speaker Change: Nothing pardon me nothing hard.
Speaker Change: CIT, but they're sort of talking about round two bids in.
Speaker Change: Mid July so.
Speaker Change: I'd expect July and final bids in that Q3. It says next next quarter or two.
Speaker Change: But there's no hard.
Speaker Change: No hard deadlines yet.
Speaker Change: Okay.
Speaker Change: And just I guess withheld scope the lenders I suppose here will mean, we will be making some forward, we'll need to make some concessions the insurers need to step up on the reimbursement, but how do you see or what sort of concessions do you think yourselves or perhaps other landlords involved in this whole process might need to make whether it's with <unk>.
Speaker Change: Scope or with other potential tender.
Speaker Change: Tenants.
Speaker Change: Very good question don't know the answer to that and I think really that just can be a negotiation. So I'd rather have that negotiation on.
Speaker Change: On a speaker phone.
Speaker Change: [laughter].
Speaker Change: Got it.
Speaker Change: I guess, if you look back in past circumstances, maybe not with northwest, but when there had been tenant issues.
Speaker Change: These types of health care.
Speaker Change: And in situations, what sort of range have you seen in terms of the rent.
Adjustments that have been made.
Speaker Change: I realize this is gonna be a very big range, but yes really.
Speaker Change: We old Navy law.
Speaker Change: About the rent affordability.
And ideally what we're looking for is on a long term <unk>.
Speaker Change: Main basis of rent is between 40 and 50% of EBITDA all of the individual hospital.
Speaker Change: So that's what we're kind of working towards and trying to understand.
Speaker Change: And then.
Speaker Change: And then so we'll look at that and then we'll also look at the lease structure as well, we look at the duration of lease.
Speaker Change: We'll look at the fixed bumps, whether open open CPI or the cap will look at whether its market reviews in caps and collars. So there are the ranges.
Speaker Change: But I can't think of an example, where we've actually.
Speaker Change: Cut the rent.
Speaker Change:
Speaker Change: At all to be honest I mean, just trying to think off the top in the last seven years.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Last one for me just in terms of the the disposition side can you maybe just comment on how much you're looking to sell.
Stephanie Markovich: Apps over the next one to two years as you continue to work toward your leverage targets, Yes, sure. Let me pass over to Stephanie for that one.
Speaker Change: Hi.
Speaker Change: So yeah, we have about $58 million of assets held for sale sub quarter. We sold about 12 of that so that's the identify things I think theres. Another you know two to 300 million of.
Speaker Change: Ive assets that we would look to either dispose ever fell into the fund over the coming year or two but that will also be at the decision now.
Speaker Change: Whoever is next in charge.
Speaker Change: Okay, and then looking through forget, though our leverage closer to 50% on a proportionate basis and so that's the that's the target.
Speaker Change: Okay and is that spread across some of the geographies or.
Speaker Change: More specific to one.
Speaker Change: It's somewhat spread.
Speaker Change: I would rather not comment at this time.
Speaker Change: Doesn't mean specific balmy I think.
Speaker Change: The balance sheets in great shape, we've got the investment grade rating that the debt duration.
Speaker Change: Of that medium term, we'd like to see that proportional debt down a couple of hundred basis points more.
Speaker Change: And that to do that there are various flavors, if you'd be do you see asset sale lever, that's kind of a 300 million ish in sales.
Speaker Change: And that leaves it depend on the market the way, we can get the best pricing.
Speaker Change: So we don't have any.
Speaker Change: <unk> dilution.
Speaker Change: Thanks, very much Greg I'll turn it back thank you.
Speaker Change: The next question is a follow up from Giuliano Thornhill with National Bank Financial. Please go ahead.
Giuliano Thornhill: Hey, guys I just had one follow up on a what's the ATRA. So rent coverage right now and how is that compared to the Australasia segment as a whole.
Speaker Change: Okay.
Speaker Change: So the coverage you'd probably I'm going to told me in the 60% range in the sixties. So it is it is above that range that 40 to 50 range.
Speaker Change: If I look at the Australasia.
Speaker Change: And if I split in New Zealand and Australia, New Zealand is now.
Speaker Change: Within that range I think it's like.
Speaker Change: Well I don't see it to just under 50 and I think Australia is now sort of mid fifties says is starting to come down. So we had a trough for a mid last year from an earnings perspective, and the earnings is picking up across the board all of our hospitals.
Speaker Change: So we're coming back into that range of where we're very comfortable.
Speaker Change: Okay.
Speaker Change: This will conclude our question and answer session as well as our conference call for today.
Speaker Change: Thank you for your participation you may now disconnect your lines and have a pleasant day.
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Sure.