Q1 2025 ACRES Commercial Realty Corp Earnings Call
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Speaker Change: Thank you good day, ladies and gentlemen, and welcome to the first quarter of 2025 acres commercial Realty Corp.
Operator: Good day, ladies and gentlemen, and welcome to the first quarter 2025 Acres Commercial Realty Court. Earnings Conference Call. Currently all participants are in a listen-only mode.
Earnings Conference call.
Currently all participants are in a listen only mode.
Operator: Later, we will conduct a question and answer session with instructions to follow at that time. If anyone requires assistance during the conference, please press star, then zero on your touch tone phone. As a reminder, this call is being recorded.
Speaker Change: We will conduct a question and answer session with instructions to follow at that time.
Speaker Change: If anyone requires assistance during the conference. Please press Star then zero on your Touchtone phone.
Speaker Change: As a reminder, this call is being recorded.
Operator: I would now like to introduce your host for today.
Speaker Change: I would now like to introduce your host for today conference call Brinjal.
Kyle Brengel: Kyle Brengel, Vice President Operations, you may go ahead. Good morning, and thank you for joining our call. I would like to highlight that we have posted the first quarter 2025 earnings presentation to our website. This presentation contains summary and detailed information about the quarterly results of the company.
Speaker Change: Vice President operations you May go ahead.
Speaker Change: Good morning, and thank you for joining our call I would like to highlight that we have posted the first quarter of 2025 earnings presentation to our website. This presentation contains summary, and detailed information about the quarterly results of the company before we begin I want to remind everyone that certain statements made during this call are not based on historical information and May come.
Kyle Brengel: Before we begin, I want to remind everyone that certain statements made during this call are not based on historical information and may constitute forward-looking statements. When used in this conference call, the words believes, anticipates, expects, and similar expressions are intended to identify forward-looking Although the company believes that these forward-looking statements are based on reasonable assumptions, such statements are based on management's current expectations and beliefs and are subject to several trends, risks, and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements. These risks and uncertainties are discussed in the company's reports filed with the SEC, including its reports on Forms 8K, 10Q, and 10K, and in particular, the risk factor section of its Form 10K.
Speaker Change: Institute forward looking statements.
Speaker Change: When used in this conference call. The words believes anticipates expects and similar expressions are intended to identify forward looking statements.
Speaker Change: Although the company believes that these forward looking statements are based on reasonable assumptions such statements are based on management's current expectations and beliefs and are subject to several trends risks and uncertainties that could cause actual results to differ materially from those contained in forward looking statements.
Speaker Change: These risks and uncertainties are discussed in the company's reports filed with the SEC, including its reports on forms 8-K, 10-Q, and 10-K and in particular the risk factors section it's.
Speaker Change: Thank God.
Kyle Brengel: Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Speaker Change: Listeners are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date hereof and the company undertakes no obligation to update any of these forward looking statements.
Kyle Brengel: The company undertakes no obligation to update any of these forward-looking statements.
Kyle Brengel: Furthermore, certain non-GAAP financial measures may be discussed on this conference call. Our presentation of this information is not intended to be considered in isolation or as a substitute to the financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most comparable measures prepared in accordance with generally accepted accounting principles are contained in the earnings presentation for the past quarter.
Speaker Change: Are there more certain non-GAAP financial measures may be discussed on this conference call. Our presentation of this information is not intended to be considered in isolation or as a substitute to the financial information presented in accordance with GAAP.
Speaker Change: Reconciliations of non-GAAP financial measures to the most comparable measures prepared in accordance with generally accepted accounting principles are contained in the earnings presentation for the past quarter.
Kyle Brengel: With me on the call today are Mark Fogel, President and CEO, and Eldron Blackwell, ACR CFO. Also available for Q&A is Andrew Fentress, Chairman of ACR.
Speaker Change: With me on the call today are Mark <unk>, President and CEO and allergen Blackwell ACR CFO.
Speaker Change: So available for Q&A is Andrew Sentras Chairman of ACR, I will now turn the call over to Mark.
Mark Fogel: I will now turn the call over to Mark. Good morning, everyone, and thank you for joining our call. Today, I will provide an overview of our loan operations, real estate investments, and the health of the investment portfolio, while Eldron Blackwell will discuss the financial statements, liquidity condition, book value, and operating results for the first quarter of 2025.
Speaker Change: Good morning, everyone and thank you for joining our call today I will provide an overview of our loan operations real estate investments and the health of the investment portfolio, Oh, Eldon Blackwell will discuss the financial statements liquidity condition book value and operating results for the first quarter 2025 of course, we look forward to your questions.
Mark Fogel: Of course, we look forward to your questions at the end of our prepared remarks. The Acres team continues to execute on our business plan by developing a pipeline of high-quality investments, actively managing the portfolio, and focusing on growing earnings and book value for our shareholders. Loan payoffs during the period were $115.9 million. We closed one new commitment of $15 million and funded existing loan commitments during the quarter of $12 million, producing a net reduction of the loan portfolio of $109.6 million. In addition, we sold two loans during the period, including a loan reported as held for sale at December 31st, 2024 for $31.7 million in proceeds.
Speaker Change: At the end of our prepared remarks.
Speaker Change: The acreage team continues to execute on our business plan by developing a pipeline of high quality investments and actively managing the portfolio and focusing on growing earnings and book value for our shareholders.
Loan payoffs during the period, where $115 $9 million.
Speaker Change: One new commitment of $15 million and funded existing loan commitments during the quarter of $12 million producing a net reduction of the loan portfolio of $109 $6 million.
Speaker Change: In addition, we sold two loans during the period, including a loan reported as held for sale at December 31, 2024 or $31.7 million in proceeds.
Mark Fogel: The weighted average spread of the floating rate loans in our $1.4 billion commercial real estate loan portfolio is now 3.67% over one month term SOFR rates. The portfolio generally continues to perform, demonstrating sound and consistent underwriting and proactive asset management. Company ended the quarter with $1.4 billion of commercial real estate loans across 48 individual investments. Our weighted average risk rating was 2.9 at the end of both Q1 2025 and Q4 2024, and the number of loans rated 4 or 5 decreased by 1 from 12 at the end of last year to 11 at the end of this quarter.
Speaker Change: The weighted average spread of the floating rate loans and a $1 4 billion dollar commercial real estate loan portfolio is now $3, 67% over one month term so for rates.
Speaker Change: The portfolio generally continues to perform demonstrating sound and consistent underwriting and proactive asset management.
Speaker Change: The company ended the quarter with $1 $4 billion of commercial real estate loans across 48 individual investments.
Speaker Change: Our weighted average risk rating was two nine at the end of Q1 2025 in Q4 2024, and the number of loans rated four or five three decreased by one from 12 at the end of last year to 11 at the end of this quarter.
Speaker Change: In March we sold a $26 million loan at par and an underperforming self storage facility in Miami.
Mark Fogel: In March, we sold a $20.6 million loan at par on an underperforming self-storage facility in Miami that had a 4-risk rating. This quarter we also had a charge off to EAD of $700,000 or 10 cents per share related to a loan we sold on an underperforming hotel in Orlando that was reported as held for sale at December 31st. We continue to manage several investments in real estate that we expect to monetize at gains in the future. These anticipated gains will be offset by deferred tax assets. We will provide updates in future quarters on the monetization of these assets.
For risk rating.
Speaker Change: This quarter, we also had a charge off to a tee up $700000 or 10 cents per share related to a loan we sold on an underperforming hotel in Orlando.
Speaker Change: That's held for sale at December 31.
Speaker Change: Continue to manage several investments in real estate that we expect to monetize the gains in the future.
Speaker Change: These anticipated the gains will be offset by deferred tax assets.
Speaker Change: We will provide updates in future quarters on the monetization of these assets.
Speaker Change: As we exit our real estate investments in the loan portfolio continues to amortize, we expect it to redeploy the capital.
Mark Fogel: As we exit our real estate investments and the loan portfolio continues to amortize, we expect to redeploy capital into an attractive CRE loan. As always, we will seek to optimize our portfolio leverage in order to drive equity return.
Speaker Change: Track of CRE loans.
Speaker Change: As always we will seek to optimize our portfolio leverage in order to drive equity returns.
Speaker Change: During the quarter, we closed a new $940 million financing facility with JP Morgan.
Mark Fogel: During the quarter, we closed a new $940 million financing facility with J.P. Morgan. The facility includes a two-year reinvestment period that will provide for reinvestment of principal proceeds from asset repayments into qualifying replacement assets. The facility allowed us to refinance collateral from our two 2021 CRE securitizations to pay off a majority of the balances on our warehouse line.
Speaker Change: Facility includes a two year reinvestment period that will provide for reinvestment of principal proceeds from asset repayments into qualifying replacement assets.
Facility allowed us to refinance collateral from our two 2021 CRE securitizations.
Speaker Change: Also a majority of the balances on our warehouse lines.
Mark Fogel: As a result of the financing, we incurred a nonrecurring charge of $1.5 million, or $0.20 per share, related to unadvertised debt issuance costs at the two CRA securitizations.
Speaker Change: As a result of the financing we incurred a nonrecurring charge of $1 $5 million or <unk> 20 per share related to unamortized debt issuance cost at the two CRE securitizations.
Mark Fogel: In summary, the Acres team continues to be focused on the overall quality of the investment portfolio, including investments in real estate, with the goal of improving credit quality and recycling capital into new investments to enhance shareholder value.
Speaker Change: In summary, the acres team continues to be focused on the overall quality of the investment portfolio.
Speaker Change: <unk> investments in real estate with the goal of improving credit quality and recycling capital into new investments to enhance shareholder value.
Eldron Blackwell: We will now have ACR CFO Eldron Blackwell discuss the financial statements and operating results during the quarter. Thank you and good morning, everyone. Gap net loss allocable to common shares in the first quarter was $5.9 million or 80 cents per share diluted. Gap net loss for the quarter included $5.6 million in net interest income and net loss on real estate operations of $2 million, which included depreciation of $1 million. We saw a decrease in current expected credit losses, or CECL reserves, of $1.7 million, or 23 cents per share, as compared to a decrease in CECL reserves during the fourth quarter of $1.2 million.
Speaker Change: We will now have ECR, CFO elder and black well discuss the financial statements and operating results during the quarter.
Thank you and good morning, everyone.
Speaker Change: GAAP net loss allocable to common shares in the first quarter was $5 9 million or 80 cents per share diluted.
Speaker Change: GAAP net loss for the quarter included $5 $6 million and net interest income and net loss on real estate operations of $2 million, which included depreciation of $1 million.
Speaker Change: We saw a decrease in current expected credit losses, or seasonal reserves of $1 $7 million or 23 per share as compared to a decrease in seasonal reserves during the fourth quarter of $1 $2 million.
Speaker Change: The first quarter 2025 reversal and seasonal of $1 $7 million was primarily driven by loan payoffs.
Eldron Blackwell: The first quarter 2025 reversal in CECL of $1.7 million is primarily driven by loan payoff. The total allowance for credit losses at March 31st was $31.1 million and represented 2.26% or 226 basis points on our $1.4 billion loan portfolio at par and comprised $4.7 million in specific reserves and $26.4 million in general reserves. Earnings available for distribution for EAD for the quarter 2020 for the first quarter of 2025 was a loss of 86 cents per share as compared to earnings of 48 cents per share for the fourth quarter. Quarter over quarter, EAD saw a $0.41 decrease in net interest income, a $0.10 decrease from the realized loss on a loan held for sale, and a $0.09 decrease from real estate operation.
Speaker Change: The total allowance for credit losses at March 31 was $31 1 million and represented two 6% or 226 basis points on a $1 $4 billion loan portfolio at par and comprise $4 $7 million in specific reserves and $26 4 million and general reserves.
Speaker Change: Earnings available for distribution or <unk> for the quarter.
Speaker Change: For the first quarter of 2025 was a loss of <unk> 86 per share as compared to earnings of 48 per share for the fourth quarter.
Speaker Change: Although over quarter saw 41 set decrease in net interest income.
Speaker Change: The decrease from the realized loss on the loan held for sale.
<unk> decreased from real estate operations.
Eldron Blackwell: The decreases in net interest income were driven by loan payoffs, SOFR declines, and the aforementioned DDI accelerations related to the refinancing of our 2CRE securitization. The decreases in real estate operations are primarily due to seasonality in operations. Gap book value per share was $28.50 on March 31st versus $28.87 on December 31st. Additionally, during the quarter, we used $4.4 million to repurchase 220,000 common shares at an approximate 30% discount to book value on March 31st. There were approximately $426,000 remaining on the board approved program at quarter F. Available liquidity at March 31st was $87 million, which comprised $66 million of unrestricted cash and $21 million of projected financing available on another asset.
Speaker Change: The decreases in net interest income were driven by loan pay offs, so for declines and the aforementioned DDI acceleration related to the refinancing of our two CRE securitization.
Speaker Change: The decreases in real estate operations are primarily due to seasonality and operation.
Speaker Change: GAAP book value per share was $28.50 on March 31 versus $28 87 on December 31.
Speaker Change: Additionally, during the quarter, we used $4 $4 million to repurchase 220000 common shares at an approximate 30% discount to book value on March 31.
Speaker Change: There were approximately $426000 remaining on our board approved program at quarter end.
Speaker Change: Available liquidity at March 31 was $87 million, which comprised $66 million of unrestricted cash and $21 million of projected financing available on level of assets.
Speaker Change: Our GAAP debt to equity leverage ratio slightly decreased to two nine times at March 31 from three times at December 31, primarily resulting from loan payoffs and all.
Eldron Blackwell: Our gap debt-to-equity leverage ratio slightly decreased to 2.9 times at March 31st from 3 times at December 31st, primarily resulting from loan payoffs. And our recourse debt leverage ratio increased to 2.9 times at March 31st from 1.1 times at December 31st, primarily as a result of the liquidation of our two CRE securitizations and the closing of our new financing facility.
Speaker Change: Our recourse debt leverage ratio increased to two nine times at March 31 from one one times at December 31, primarily as a result of the liquidation of our <unk> Securitizations and the closing of our new financing facility.
Eldron Blackwell: At the end of Q1, the company's net operating loss carry forwards were $32.1 million or approximately $4.44 per share.
Andrew Sentras: At the end of Q1, the company's net operating loss carryforwards were at $32 $1 million or approximately $4 44 per share and with that I will now turn the call to Andrew <unk> for closing remarks.
Andrew Fentress: And with that, I will now turn the call to Andrew Fentress for closing remarks. Thank you, Eldron. As previously discussed, the small portfolio size, seasonal expenses, one-time DDI charges related to the recent refinancing of FL-1, FL-2 securitizations, and seasonally slow hospitality drove negative performance in the quarter. We expect Q1 to represent a trough on the portfolio sides. Our plan is to utilize capital from recent low-rate payments, proceeds from asset sales, and available equity from our lending partners to ramp up securitization in the second half of the year. The investment landscape is attractive. We're actively closing new loans across the Acres platform.
Andrew Sentras: Thank you Eldon.
Andrew Sentras: As previously discussed the smaller portfolio size seasonal expenses onetime DDI charges related to the recent refinancing of that fell one that fell through securitizations and seasonally slow hospitality drove negative performance in the quarter.
Andrew Sentras: We expect Q1 to represent a trough on the portfolio size.
Andrew Sentras: Our plan is to utilize capital for recent low repayments.
Andrew Sentras: Receipts from asset sales and available liquidity from our lending partners.
Andrew Sentras: <unk> securitization in the second half of the year.
Andrew Sentras: The investment landscape as attractive proactively closing new loans across the acres platform.
Andrew Sentras: As has been the foundation of our philosophy credit quality of the current portfolio remained strong and we continue to monitor each of the names for any changes to our underwriting.
Andrew Fentress: As has been the foundation of our philosophy, credit quality of the current portfolio remains strong. We continue to monitor each of the names for any changes to our underwriting. We look forward to your questions and speaking with you over the coming weeks.
Andrew Sentras: We look forward to your questions and speaking with you over the coming weeks.
Andrew Fentress: This concludes our opening remarks.
Andrew Sentras: This concludes our opening remarks, I'll now turn the call back over to the operator for questions.
Operator: I'll now turn the call back over to the operator for questions. Thank you. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing Star 2. Once again, that is star 1 to ask a question. We'll pause for just a moment to allow questions to queue. Thank you.
Speaker Change: Thank you at this time, if you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: You may remove yourself from the queue at any time by pressing star Q1's.
Speaker Change: Once again that is star one to ask a question, we'll pause for just a moment to allow questions to queue.
Speaker Change: Thank you our first question will come from Matthew <unk> with Jones trading your line is open.
Matthew Erdner: Our first question will come from Matthew Erdner with Jones Trading. Your line is open. Hey, good morning, guys. Thanks for taking the question. Could you talk a little bit about more of the portfolio and the payoffs that occurred during the quarter? You know, were those expected to come through or were some of them early?
Matthew: Hey, good morning, guys. Thanks for taking the question.
Matthew: Could you talk a little bit about the more of the portfolio and the payoffs that occurred during the quarter.
Matthew: Are those expected to come through or some of them early.
Matthew: Hey, Matt this is mark.
Mark Fogel: Hey, Matt, this is Mark. No, those were expected to come through. We had. We had five loan payoffs, four through refinancing into permanent vehicles. One of them was an asset that was sold. And then, as we indicated, we had one note that we sold, actually two notes that we sold during the quarter. And that really represents the entire amount of the payoffs, but none were non-expected.
Matthew: No those were expected to come through we had.
Matthew: Only five loan payoffs for through refinancing into permanent vehicles.
Matthew: One of them was an asset that was sold.
Matthew: And then as we indicated we had a one note that we sold.
Matthew: Actually two notes that we sold during the quarter and that really represents the entire amount to the payoffs, but none were not expected.
Mark Fogel: Got it. And then, you know, as kind of a follow-up to that, you know, fully extended, it looks like there's $101 million for the remainder of the year. You know, should we expect a little more kind of maybe towards the back half, you know, some early payments, I guess, so to speak? And then, you know, as that occurs, you know, what should we expect in terms of portfolio growth? You know, because spreads kind of tighten there in terms of, you know, I guess, and just kind of talk about where you'd like to see the portfolio to get that securitization off.
Matthew: Got it and then I was kind of a follow up to that fully extended it looks like there's $101 million for the remainder of the year.
Matthew: Should we expect a little more kind of maybe towards the back half.
Matthew: Early payments I guess, so to speak and then.
Matthew: As that occurs you know what should we expect in terms of portfolio growth.
Matthew: Because spreads kind of tighten there in terms of I guess multifamily lending so.
Matthew: So I guess what are the opportunities you guys are seeing now and just kind of talk about where you'd like to see the portfolio to get that securitization off.
Matthew: Okay.
Mark Fogel: Yeah, great question. Look, I think payoffs are good. It shows that we have a healthy portfolio and we do expect that there will be more payoffs throughout the year through refinancings or sales of assets. You know, the multifamily market is very healthy and I think because of that you're going to see sales and refinancings across the board with all lenders. We expect to grow the despite the payoffs. As I indicated last quarter, our expectation is that through the end of the year we'll have net growth in the portfolio somewhere between $300 million and $500 million.
Matthew: Yeah, Great question look I think payoffs are.
Matthew: Good it shows that we have a healthy portfolio and we do expect that there will be more payoffs throughout the year through refinancings or sales of assets.
Matthew: The multifamily market is very healthy and I think because of that youre going to see sales and refinancings across the board with all lenders.
Matthew: We expect to grow the portfolio, though despite the payoffs as I indicated last quarter. Our expectation is that through the end of the year, we will have net growth in the portfolio somewhere between $300 million and $500 million.
Mark Fogel: There's certainly opportunity in multifamily, but, you know, we don't limit ourselves to just that asset class. We are looking across the board at assets like student housing and self-storage and retail. But multifamily will continue to be the bulk of what we do on a go-forward basis.
Matthew: There's certainly opportunity in multifamily, but we don't limit ourselves to just that asset class. We we are looking across the board at assets like student housing and self storage and retail.
Matthew: Multifamily will continue to be the bulk of what we do on a go forward basis.
Matthew: Got it that's helpful. Thank you guys.
Matthew Erdner: Got it. That's helpful. Thank you guys. Thank you.
Speaker Change: Thank you. Our next question will come from Chris Muller with citizens capital markets. Your line is open.
Christopher Muller: Our next question will come from Chris Muller with Citizens Capital Markets. Your line is open. Hey guys, thanks for taking the questions.
Chris Muller: Hey, guys. Thanks for taking my questions. So I wanted to start on the loan sales and I think I heard Mark I think you said that one of the loans were sold at par, but I didn't catch the other allowance or was that solid below par and just any details you could give us would be helpful.
Christopher Muller: So I wanted to start on the loan sales. And I think I heard Mark, I think he said that one of the loans was sold at par, but I didn't catch the other loan. So was that sold below par? And just any details you could give us would be helpful. Yes, yes, the one was sold at par during the quarter. The other one was on a non-performing hotel property where we were offered 94 cents on the dollar. We took a $700,000 loss on that asset. And it was. In my view, the right thing to do as opposed to letting the asset continue to not perform within our portfolio.
Chris Muller: Yes, yes, the one was sold at par during the quarter. The other one was on a nonperforming hotel property, where we were at all were offered 94 cents on the dollar we took a $700000.
Chris Muller: On that asset.
Chris Muller: <unk>.
Chris Muller: And it was it was.
Chris Muller: In my view, the right thing to do as opposed to letting the.
Chris Muller: The asset continued to not perform within our portfolio.
Speaker Change: Got it that's helpful. And then I guess looking at the income statement you guys touched on this a little bit in your prepared remarks, but it looks like the real estate expenses John.
Mark Fogel: Got it, it's helpful.
Mark Fogel: And then I guess looking at the income statement, you guys touched on this a little bit in your prepared remarks, but it looks like the real estate expenses jumped and REO is kind of a drag on first quarter or first quarter earnings. Can you talk us through that dynamic? Is it mostly seasonality? And then just a second part of that question, should we expect to see any REO sales in 2025? Or is that looking too far ahead? Yeah, the drag is in Q1, I think if you went back to last year, you'd see the same dynamic.
Speaker Change: With kind of a drag on first quarter or first quarter earnings can you talk us through that dynamic is it mostly seasonality and then just the second part of that question should we expect to see any Oreo sales in 2025 or is that looking too far ahead.
Speaker Change: Yeah, the the drag is in <unk>.
Speaker Change: Q1, I think if you went back to last year you'd see the same dynamic it's a seasonality issue with respect to the hotels that we own.
Mark Fogel: It's a seasonality issue with respect to the hotels that we own. You'll see, I think, as we go forward in Q2, 3 and 4, that that will flip over to sort of a flat or positive number versus a loss on REO operations. As far as sales of assets go, we are actively in the market with several of our real estate investments. I don't have anything to report right now, but my expectation is that the next of America. Yeah, very helpful.
Speaker Change: Youll see I think as we go forward in Q2, three and four that that will flip over to sort of flat or positive number versus a loss on Oreo operations.
Speaker Change: As far as sales of assets go we are actively in the market with several of our real estate investments I don't have anything to report right now, but my expectation is that in the next.
Speaker Change: Good quarter.
Speaker Change: Maybe the following quarter, we will have something more to report.
Speaker Change: Got it very helpful. If I could just squeeze one more just on your comments for the last question.
Mark Fogel: If I could just squeeze one more just on your comments for the last question. So I guess with the expectations of three to five hundred million of growth in 2025, how's the pipeline looking and have you seen any impacts on the pipeline given some of the recent market volatility? No, in fact, I-Blind has been stronger than ever. I think. There's a lot of opportunities out there. We are quoting deals more so than ever at this point. I think, in fact, the volatility has caused some of the lenders to move to the sidelines and wait, which is pushing a lot more deals our way in the ways of those that are continuing to be active.
Speaker Change: So I guess with the expectation of three to 500 million.
Speaker Change: Growth in 2025, How's the pipeline looking and have you seen any impact on the pipeline given some of the recent market volatility.
Speaker Change: No in fact, the pipeline has been stronger than ever I think.
Speaker Change: And there's a lot of opportunities out there we are quoting deals.
Speaker Change: More so than ever at this point I think.
Speaker Change: In fact, the <unk>.
Speaker Change: Volatility has caused some of the lenders to move to the sidelines and wait.
Speaker Change: Is pushing a lot more deals are way in the ways of those that are continuing to be active so we.
Mark Fogel: see a lot of really good opportunities and we are absolutely quoting three to four deals a day and I expect that growth will not be a problem along the lines of what I mentioned earlier. It's great to hear.
Speaker Change: We see a lot of really good opportunities and.
Speaker Change: We are absolutely quoting.
Speaker Change: Three to four deals a day.
Speaker Change: Expect that growth will not be a problem along the lines of what I mentioned earlier.
Speaker Change: Got it that's great to hear and look forward to seeing the story play out this year and thanks for taking the questions.
Christopher Muller: I look forward to seeing the story play out this year, and thanks for taking the question.
Speaker Change: Okay. Thank you.
Speaker Change: And once again as a final reminder, that is star one if you would like to join the queue. We will pause for just a moment.
Operator: And once again, as a final reminder, that is Star 1 if you would like to join the queue. We will pause for just a moment.
Speaker Change: And it appears we have no further questions at this time I will now turn the program back over to our presenters for any additional or closing remarks.
Operator: And it appears we have no further questions at this time.
Operator: I'll now turn the program back over to our presenters for any additional or closing remarks. Thank you everyone for joining our call. We look forward to gathering again in Q2.
Speaker Change: Thank you everyone for joining our call.
Speaker Change: Forward to gathering again in Q2.
Speaker Change: Yes.
Speaker Change: Thank you ladies and gentlemen. This concludes today's event you may now disconnect.
Operator: Thank you ladies and gentlemen, this concludes today's event, you may now disconnect.
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