Q2 2025 Crombie REIT Earnings Call
Good morning, everyone, and welcome to the Crosby Reach second quarter 2025 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 during this call you require immediate assistance, please press star zero for the operator.
This call is being recorded on Thursday, August the 7th 2025.
I would now like to turn the conference over to Kara, Cameron Chief Financial Officer of Crombie. Please go ahead.
Thank you and good day. Everyone. We would like to welcome you to Crombie res second quarter 2025 conference call and webcast. Thank you for joining us. This call is being recorded and live audio and is available on our website at www.cumby.com
To accompany today's call are available on the investor section of our website under presentations and events.
Joining me on the call today are Mark holy president and chief executive officer and Ari, baton Executive, Vice President, Leasing and operations.
Today's discussion includes forward-looking statements, we want to caution you, that such statements are based on Management's assumptions and beliefs. These forward-looking statements are subject to uncertainty, and other factors that could cause actual results to differ materially from such statements.
Please see our public filings, including our Management's discussion and Analysis and annual information form for a discussion of these risk factors.
Our discussion will also include expected yield on cost for Capital expenditures, please refer to the development section of our Management's, discussion and Analysis for additional information on assumptions and risks. I will now turn the call over to Mark to discuss, Crombie strategy and Outlook.
Thank you, Kara and good morning everyone. Crosby second quarter results, demonstrate the Continuum, momentum and further solidified, our position, as an essential Reit, in a dynamic Market environment. Our strategy delivered exceptional performance substantiating. Our discipline approach and reinforcing the value of our Coast to Coast necessity-based retail portfolio.
Our value creation is built on 3, pillars own and operate optimized, and partners.
These pillars guide our approach and capital allocation and they delivered solid results. This quarter. Let me drill into our performance across each pillar. First under own and operate our grocery anchored. Retail platform Remains the foundation of our success.
And committed occupancy. Reached 97.2% the third consecutive quarter of record highs.
Our disciplined and proactive approach to operational excellence and lease management continues to underpin Performance and we remain well, positioned to maintain solid occupancy levels throughout the remainder of the year.
Same asset property cach, noi, grew 2.8% with year-to-date performance at 3.0% at the top end of our target range. These results were driven by step UPS, solid renewals spreads and new leasing activities.
Our renewal spreads of 10.8%, up from 10% in the first quarter, reflect the continued demand for our properties across all markets.
These operational results, translate directly into our cash flow performance. In the quarter, with ffo per unit, growing 6.3% year-over-year and afo per unit growing by 7.1%.
Located at the center of thriving communities across Canada, our properties generate consistent traffic and repeat visits. This steady engagement makes some highly valued by retailers, leading to sustained tenant demand and contributing to our portfolio's resilience through economic cycles.
Portfolio management Marine Central to our ownership strategy, through a discipline approach to Capital allocation we continuously evaluate a portfolio to ensure our assets, create unit holder value this quarter. We acquired 4, grocery properties in Atlantic Canada totaling 146,000. Square ft for a combined purchase, price of 21.2 million,
We also sold our 140,000 square foot Main Street office property in Mohnton, New Brunswick for 8.5 million. And completed a strategic land swap at our Berrington Street development site in Halifax.
These transactions reflect our ongoing commitment to strategically, curating a portfolio that focuses on long-term stability, sustainable growth and value creation by recycling from underperforming into high-quality necessity based retail properties.
We are also focused on unlocking embedded value through targeted Investments within our portfolio in advancing entitlements and development opportunities which is objective of our second value driver, optimize,
This quarter. We expanded our investments in non-major developments. We completed 11 moderate to Advanced projects. Totaling 41.6 million with an estimated 12 million remaining to complete.
These current initiatives are expected to deliver yields between 6% and 7% and are designed to enhance asset performance. And support long-term income growth, while maintaining a disciplined and efficient approach to Capital, allocation,
Our approach to major development activities, remains thoughtful, and deliberate, which is particularly important in today's market. This quarter, we achieved several zoning Milestones across our entitlement pipeline, including, rezoning, approval for Broadway and commercial in Vancouver. And in our Toronto properties, we secured zoning approval for Toronto, East submit an application for Danforth and continue on advancing planning at macallen and Ellesmere.
our approach to Capital allocation remains flexible, yet deliberate, we maintain a structure that enables us to invest opportunistically across Acquisitions non-, major developments and major development initiatives based on return profiles
This balanced strategy positions us to remain agile and responding to Market opportunities while creating consistent long-term value for our unit holders.
Looking at our third value creation pillar partner. The Empire relationship remains our foundational partnership and continues to be a significant Advantage. We are pleased to have deepened, our relationship with our Acquisitions in the second quarter. Additionally, our investments in modernizations with Empire, improve asset, quality, increased rental income, and create a halo effect that extends to other tenants at these properties.
As I discussed last quarter, we've been expanding our Partnerships Beyond this Foundation. Through our new joint ventures with Montes and Halifax and West group. In Greater Vancouver, these programmatic Partnerships deliver immediate value stabilized, cash flow through management, and development fees, secretion to ffo, and the ability to unlock value from high potential assets without constraining, our capacity to make core retail Investments,
These Partnerships, contributed 2.4 million to revenue from management and development services in the quarter. We expect this Revenue stream to contribute at similar levels. Each quarter over multiple years, providing a solid Baseline of recurring cash flow.
Last night, we announced a 1 cent increase to our annual distribution. This important Milestone reflects the stability of our platform, the discipline of our strategy, and the strength of our balance sheet over the years, croi has maintained steady distributions through a range of economic Cycles. While growing ffo and afo and meaningfully reducing its payout ratios.
Commitment to Dependable, long-term growth.
Our prudent approach to Capital, allocation investing in grocery anchored. Retail optimizing our portfolio and deepening. Our existing Partnerships will forming new, ones continues to generate a creative growth for our unit holders, which is underpinned by our financial strength and our commitment to people and culture.
With that, I'll turn the call back to Kara to walk through our financial results.
Thank you, Mark. Our second quarter of financial results reflect this strength of our platform, and the consistency of our execution,
The numbers tell a clear story. We continue to deliver on our strategic priorities while maintaining disciplined capital allocation and a strong, flexible balance sheet.
Let's start with quarterly earnings.
Funds from operations per unit, grew by 6.3%, year-over-year and adjusted funds from operations per unit.
Increased by 7.1%.
This growth was driven by strong leasing Performance, Rents, escalations and recurring revenue from our strategic Partnerships.
We also benefited from the full-year consolidation of the Davie Street residential property this quarter versus Q2 of last year, following our acquisition of the remaining 50% interest in the fourth quarter of 2024, as well as lease termination income.
Property Revenue increased by 6.4% and the second quarter supported by Acquisitions, new, leasing activity, and contributions from both lease terminations and the Davie Street residential consolidation. As previously mentioned,
Building on Mark's comments, we continue to see healthy demand for well-located grocery anchored retail and our leasing team has done an excellent job at capturing that demand.
Revenue from management and development services totaled $3.3 million in the second quarter, bringing our year-to-date total to $4.4 million.
Approximately 2.4 million in the quarter was directly attributable to our Montes, and West group Partnerships.
We expect these programmatic relationships to contribute at similar levels, each quarter throughout the entitlement process with potential upside Beyond this Baseline as additional projects Advance with our partners.
The management and development service Revenue, over and above the amount related to these Partnerships. In the quarter was generated from various projects with Empire.
During 2024, we recorded 2.1 million in deferred revenue, related to development Management Services provided to a third party.
Our performance obligations were completed subsequent to the quarter and the full amount will be recognized in our third quarter.
Joint venture earnings were a bit softer this quarter, primarily reflecting higher operating expenses at Bronty related to Sweet, turnover repairs, and bad debt.
These pressures were partially offset by lower Finance costs. Following the CHD financing we put in place last year.
Performance at leuke remains strong with stable, occupancy, and solid rental performance.
Across the residential joint venture portfolio. Rental rates had held steady and the app is continued to perform well in the respective markets.
Turning to expenses GNA represented 5.3% of Revenue, consistent with the first quarter, excluding employee transition costs, and unit-based compensation.
DNA was 3.9% compared to 3.8% in the first quarter of 2025 reflecting, a normalized run rate.
Returning to finance costs, interest expense was higher year-over-year, primarily reflecting the net issuance of senior unsecured notes in 2024.
this increase was partially offset by lower interest on our credit facilities driven by reduced, average loan balances
overall, our financing strategy continues to support our growth while maintaining discipline on spending
our balance sheet, remains strong and flexible.
That is to Eva stands at 7.84 times. While our payout, ratios are 66.5% for fso and 75.1% for afo.
We maintain ample liquidity with $678 million in available capital and $3.9 billion in unencumbered assets.
As of June 30th, 98% of our debt, Carriage fixed rates.
61% of our debt was unsecured and our weighted average term to maturity was 4 1/2 years.
During the quarter, we received a credit rating upgrade, which reflects the strength of our balance sheet and our disciplined approach to leverage and liquidity management.
This upgrade, enhances our long-term funding flexibility, and supports our ability to access Capital at a attractive rate.
Further reinforcing our commitment to prudent financial management.
This was a strategic objective we set for ourselves, and I am very pleased that our team's focused execution delivered. This important milestone.
As Mark mentioned, we were active on the acquisition and disposition fronts during the quarter.
Let me flag a few key accounting items related to those transactions.
Strategic land swap at our barington street development site in Halifax, resulted in a 5.4 million gain. As the fair value of barington, Street lands, exceeded its cost.
The Main Street office disposition in Mohnton generated 8.5 million in proceeds with 3.8 million provided as a zero interest. Vendor takeback financing repayable over 3 years.
This disposition had a positive impact on occupancy in the quarter of approximately 20 basis points and had minimal impact on our noi.
As announced last quarter, the Milestone sale into our joint venture with montev was completed in the second quarter.
and with that, I'll turn it back over to mark for a quick opening remark
Thank you. Carol, looking ahead. We remain focused on executing the fundamentals, that drive long-term value, growing ffo. And ffo through operational excellence.
And discipline leasing maintaining High occupancies across our portfolio and delivering attractive return on invested capital.
We will continue advancing our entitlement pipeline investing in a non-, major development initiative pursuing, strategic Acquisitions that strengthen our essential retail portfolio and expanding Partnerships that create value, while preserving Financial flexibility.
Prior to closing. I'd like to highlight the release of our 2024, environmental social and governance report last night. Our latest reports reflect the depth of our commitment to sustainability and our people
With that, we'll open the lines for questions.
Thank you, ladies and gentlemen, we will now begin the question and answer session. If you do have a question, please press star. Followed by 1 on your touchtone phone. You will hear a prompt that your hand has been raced. If you wish to decline from the polling process, please press star followed by 2. And if you're using a speaker-phone, please. Lift your handset before pressing any keys.
1 moment for your first question.
Your first question comes from Sam demianiuk.
Thank you. Good morning everyone. Uh, congrats everyone on a good quarter. Um, yeah, just, you know, the leasing commentary, obviously sounds, uh, you know, still very, very up, very positive, just wondering if there's any change in tone in your Leasing.
We seem discussions in your outlook uh, since uh, since last quarter. And if there's any any new retailers of concern on your watch list,
Good morning Sam, it's Ari. Uh, I would say that the uh General theme over the last quarter continues to be the same as it was last quarter, demand is still strong, uh, our tenant conversations indicates that there's still many tenants and growth mode and expansion mode. And, uh, we're looking to see how we can fit those into our portfolio, uh, with respect to our tenant watch list. Um, we said before we actually see that as more of a benefit, uh, I think about the uh, landforce Peavey Mart uh uh disruption that actually left us with uh tenant uh replacement with zero, rent Interruption and uh more than a 6 Figure uplifting Andy on that particular 1. So like we say like,
Some of these, uh, potential, uh, tenant watch outs are are great for our portfolio. Um, there's a number of tenants that have been on our watch list. Claire's, uh, announced yesterday for us. That's a 1 location. Tenney, uh, at Avalon Mall and, uh, we've got plenty of interest there. Uh, should they leave? Uh, we understand it's 1 of their better stores. Uh, so again we monitor, uh, these uh, Tendencies. But there's nothing of note, uh, since last call,
All right, thanks. All right. That's, uh, super helpful. Um, and just on the the lease termination fee income, 2.7 million and a quarter. I didn't catch if there was some, uh, some detail behind that if it was 1, ten or a bunch of smaller smaller, uh, amounts,
Um so it was uh actually a bit of deferred revenue uh that we had on the balance sheet that we were actively pulling down over time in relation to the lease term. And then when we sold the property, we relieved, the balance sheet of that deferred revenue, which led to that uh termination income increase.
Oh, got it. Okay.
okay, last 1 for me just on Broadway and Commercial, I mean that I think it's been an active file this year, anything, anything, new or you know in terms of your plans what you plan to do with that particular project,
Hey fam. It's Mark. Um, hi. We are pretty proud that we were able to get at, uh, zoning approved. Uh, that happened in the quarter. We still got a little ways to go, though, to get it enacted as we called out. We have about, you know, 6 months plus to go to get it enacted. We continue to work with our partner. Uh, the good news is the asset continues to
Generate revenue for us as it's on the ground bucks.
The grocery store on it. So at this point, we're evaluating, uh, we're working on some underwriting but, uh, we're definitely not shovel ready at any point, uh, in the near future because we still have a bit of ways to go here. So, uh,
nothing to
Super. Thanks very much. I'll turn it back. Thank you.
From Lauren.
Thanks. Good morning. Um maybe just on the development fee side obviously great to see it bump up this quarter and and uh based on your commentary sounds like it's going to stay there for a little while. Um, I think the last quarter you talked about the um development fee increases being offset by GNA and 2025 is that still the case or now with the higher revenues? That's that's no longer the case.
Hey Lauren. It's Mark the
We did talk about.
Order that we were taking an increase in the GNA and Kara talked about on the prepared remarks that, you know, we've reached the spot where we're running in around just above 5% and that is reflective of the extra expenses, we're taking on as those employees were once being capitalized for the project are no longer will be able to because they're within the joint ventures and we're performing services for those joint ventures. So what you're seeing now is probably a good run rate to carry for the rest of the year.
Okay, perfect. Thank you for that. Um and then you guys had a little bit of an uptick in uh in rent growth on the leasing side, this quarter. Um obviously 1 quarter is make a trend, but do you guys think you can keep pushing higher or is sort of the, you know, 10 11% levels where you think you're Tapped Out?
Hi Lauren. Um, obviously for us, the last number of years, historically we've been more in the mid to high single digits. Uh, very proud of what the team's been able to push through. I would say that it's one of the current signals as to how the market's doing. Um, we believe that just given today's, uh, discussions, we can stand out for, uh, some time. How long that lasts? We don't know. But like I said, right now, all indicators are that, uh, tenants have a healthy appetite for our space.
Okay, that's very helpful. And then um just lasts 1 for me on the acquisition side, you guys managed to tuck in a couple of this quarter. What's the outlook for the balance of the year in 2026?
We were able to acquire 4, grocery properties all with an Empire Banner on it, which we're pretty proud of its, you know, made in acquisition of about 20 million dollars, back to that sort of allocation of capital and where we can invest in coral and we're going to um, as we look, you know, back into the rest of 2025 and look forward to 2026.
We'd like to acquire more grocery anchored. Uh, there's a lot of other folks that would like to continue to acquire crochet anchored. Um, so we're being selective making sure it fits into the portfolio effectively, making sure that there's a potential further upside. Once we acquire it through modernizations and intensification.
We're, you know, the acquisition team is out there and trying to uncover opportunities for us. So we continue to work on it. It's a focus for us we'd like to do more.
Okay, that was very helpful. I will turn it back.
Your next question comes from. Brad Sturgis with Raymond James, please go ahead.
Hey, good morning. Um, just following on uh the line of questioning their just on Acquisitions just with uh what got completed in the in the quarter with the 41 Canada, just any more color in terms of the going in cap rate or um comments around uh at least term and and rents versus in place, runs versus Market would be helpful.
Roc cap rates, that's generally reflective of where these landed and so, we're pretty proud of what we were able to get there. There'll be a creative to ffo right away. Uh, they support our strategy of grocery anchored.
And we've called out. These are these locations are, uh, only 1 building and they're only occupied by a ger. And so, our view is, we're agnostic to where that is in the country because of the relationship that we have with Empire and some of the insights that we're able to do through modernizations and intensification. We think there's further upside on All 4 over time, we'll be able to reinvest through modernizations.
Um, so, in terms of contractual rents step UPS, they're fairly consistent with the rest of our portfolio term, commitments fairly consistent with our Walt. Uh, they have renewal options and so, yeah, we were able, we're pretty happy that we were able to tuck these in.
Okay. Um my other question relates to uh the distribution increase decision uh, good to see. Um,
Just wanted to maybe get a little bit extra color in terms of the boards uh decision-making. In terms of what factors were at play at landing at the new distribution rates and and ultimately deciding now is the time to increase the distribution.
Yeah, we're pretty happy. We were able to put that out last night. Uh, definitely distributions has been a part of our consideration over the last couple of years. Um, what I would say is the strategy, if you step back, what are we strategically focused on and we're focused on growing ffo.
And over the last few years, we've really pushed that we're giving healthy numbers. Uh, we're, you know, we see good growth in that our payout ratios. Now, in the mid-60s for ffo or at a really, uh, healthy level that allowed us to increase the distribution, to do a distribution increase. Um, and you know, when we step back and look at our allocation of capital, we think this is a good use of capital uh, to return that unit holders. But we also look at other parts of how we deploy the capital so buying 4 grocery, anchored locations is also part of that strategy. So that was some of the thinking that went into it. Uh, it definitely is, uh, a part of our, our view as we consider our allocation of capital
And in terms of just distribution policy, uh, going forward is that the plan, as you continue to grow ffo to become more of an annual distribution increase. And then is that, uh, ffo payout of mid-60s. Is that kind of the target you have in mind going forward.
There's no internal policy on distribution increases uh Brad. But what I can say is,
Uh, based on the trends that we've been seeing with our ffo growth and the payout ratios, a distribution increases is absolutely a part of the consideration each year.
Great. Thank you.
Your next question comes from Michael Marketo with BMO please. Go ahead.
Thanks operator. Um, good morning everybody. Just wanted to Circle back. I know this is last quarter's news but just, you know, the Strategic Partnerships that you've got both on Montes and West group. Um, it's quite clear what the benefits are in the in the near term to Crosby just with respect to Urban Development fees and and sharing of the capital expenses. Um, maybe if you could just circle back and
give us some more color in terms of the longer term opportunity costs and what the uh partner is is gaining, um, that you're sort of giving up in exchange for those benefits in the near term. Thank you. Hey, Michael, um, look, we to your point. Uh, we're proud that we were able to stand up those 2 Partnerships. We've talked about Partnerships as 1 of our strategic pillars,
They're in Atlantic Canada with Montes, there's 3. Um, we were able to sell 50% of an active development construction site. And from that, you know, we're able to take some proceeds in, we're able to clip some fees today and then they'll share, obviously in the, in the upside as we lease it up and, uh, get it stabilized for bington and Brunswick. We're going to lead those those development uh initiatives. So we're going to get paid as you've called out as through fees. The upside for them is that they'll be able to participate. If we decide to pull the trigger in advance into the development. And so the, uh, advancement for Montes is now they've got interest in 3, CP retail, uh assets, our residential assets in around our retail platform,
In a development that they otherwise would not have been able.
To get access to. And for us it's all the benefits we've talked about in the past.
so these are providing flexibility optionality, uh,
Bringing higher and best use value to these properties, while we continue to hold them on our balance sheet.
Uh rental income. Uh we're being mindful of our strategic partner with Empire, making sure that we do the right things in terms of when they're going to redevelop the site. So there's a lot of benefits near-term and long-term
Okay, thanks for that. And then just if if let's say you don't build and you decide to monetize, does that mean the partner benefits from 50% of the density value?
There's formulas in the, the contracts that, uh, if we decide to pause on putting a shovel in the ground, maybe because market conditions are not right? Or if 1 party would like to advance versus the other, uh, can't go into the details of it. Michael. But there are uh, mechanisms that uh, the partner or either partner can uh
Uh, walk away. It is not at the fair value of what it is.
uh, going to be entitled that or the value that is
created at it.
if there's some form,
Of land in it, that protects Crombie.
Okay, thanks for that. I appreciate it back.
From.
Hi, good afternoon or good morning, sorry, still. Um, I just again, on the Partnerships. What sort of, uh, due diligence, are you doing, um, on the prospective Partners, uh, particularly financially before you sign these things?
Good morning tal. Um,
Extensive due diligence.
Um, we have a very robust process.
Risk profile.
You know, involves all aspects within our business from uh, the marketing team to the people and culture team to our Leasing and Ops Team Finance team. Uh, we also
Uh, support from a financial institutions outside that helped us validate, who these partners are. And so, as we called out, we use Scotia Bank for Atlantic Canada and beimo for western Canada.
And we went through a very rigorous process. Looking at who's out there, what activities have they been in the longevity of their platform, the people behind it, their strategic intents, or do they line up with our cultures and our values?
What? I'm trying to illustrate. It was exceptionally extensive and
uh which took some time um and we we weren't in a rush so we want to be very selective on on who we picked and we landed on Montes and West group and um
we're really excited that we're forming Partnerships with them because we think they're Best in Class.
Okay, um, and then I appreciate you giving, you know, there are some a little bit of, uh, outlook there on fees going forward. I guess one of the things that I'm just interested in is exactly like what are the triggers for fees being earned? Are these, you know, like milestone payments? Is it just an ongoing, you know, monthly payment? Or, uh, is it billable hours? How do these fees get recognized? What are the triggers?
Um hi it's Cara. Uh these are ongoing paid for performance Arrangements. Um and so as we actively work through the entitlement process or the construction process in uh the case of the marlstone um it is more of a continuous payment plan.
and that would be based on invested capital, or just
Uh, pay for performance. So pay for service. Yeah. Okay. Got it. Um, and then uh, just on the credit rating upgrade. Do you have an estimate of like, what you think the savings are that you can, uh, achieve now. And do you think it opens up?
You know, materially makes a difference in terms of uh data availability for Grammy.
Uh yeah, good question. I think uh, we were already uh, achieving some of the benefits.
Out to the market for our dementia raises. You know, there may be some tightening, uh, there that we will be privileged by, uh, but really, it is about achieving unsecured pricing on our bank lines. Um, so that upgrade allowed us to have pricing more, similar to what we were getting, uh, from a secured basis pre-upgrade. Um, so what is the amount? I mean, we've kind of said within the 25 basis point, uh, spread uh, differential on some of that. So, um, that EBS and flows. Obviously.
Um, and the additional thing, I think that you asked to is, we really have, uh, a low amount of floating rate depth. So we're at the 2% Mark right now. So there's, you know, the upside will be uh, more in the future. We don't have a lot to draw on right now.
And then lastly, I guess this is probably a question for Mark. Um,
are you interested in pushing the board towards a distribution policy?
Uh, not to push them towards a distribution policy towel, but
You know, we're we're happy that we were able to get the approval to proceed with 1 last evening. We're happy where we are on the capital allocation strategy between acquisitions
Uh, between non- major Investments. Major Investments, rfl payout. Ratios are in a great spot healthy
Not forcing or pushing. Uh, but it is definitely part of the considerations each year.
Okay. Yeah, I just add you know I think investors appreciate their being sort of a spelled out, you know, something that they can uh victim to expect and that tends to be more when they when the stock price gets rewarded for it.
Yeah, a fair comment. I'll definitely something. We'll take into consideration.
Okay, thanks very much.
Ladies and gentlemen, as a reminder, if you do have any questions, please press star 1. Your next question comes from Pammy, Brie with RBC Capital markets, please go ahead.
Thanks, good morning. Um, just looking at some of the changes in the joint venture asset. The fair value change from q1, can you maybe just comment on what the components of that increase were, um, I think some of that might be just from, uh, the additional assets transferred into the JV. But I'm also curious. If there are any increases tied to the rezoning approvals, um, at broadwing Commercial and Toronto East
Uh, yeah, thanks for the question. It's Kara you're bang on. It was the movement of of the marlstone um as well as uh some right to develop payments were in there as well. Um the um it recognition of entitlement uh, was nominal uh, to the overall fair value change.
Okay, so I think with Broadway and Commercial, I think you mentioned.
Q or I think it was early 2026 in terms of the enactment of the bylaws. So is that sort of the expectation as to when there could be a a bigger Mark there or is that just not really being contemplated at the moment?
Uh, so, um, we recognize entitlement value on stages. And so each time we hit a specific Milestone. We take a fair value, um, upgrade, um, and each 1 of those stages. There's not big jumps, so it's it's fairly moderated throughout the process. So we're not anticipating a large movement, in Fair Value. Overall,
Okay. Uh, last 1, just coming back to those 2 projects again, is it um you know, as they get I guess in the final stages of um resoning here is it um are these now perhaps more likely candidates to monetize or, um, not really are still too early in the process.
Too early in the process, Tommy, we're got to get it through enactment.
Market conditions are part of that assessment where we are on our our investment profiles. So too early to tell at this point.
Okay. Thanks very much. I'll turn it back.
Thank you. There are no further questions at this time. I would now like to turn the call back over to Kara Cameron for any closing remarks.
Thank you, Pam, and thank you, everyone for joining, our second quarter Financial results conference call. We look forward to speaking to you all on our third quarter, Financial results conference call in November.
Ladies and gentlemen, this does indeed conclude your conference call for today. We thank you for participating and ask that you, please disconnect your lines.