Front Yard Residential (RESI) 1 Mar 182017 Q4 Earnings call transcript

Good day, ladies and gentlemen and welcome to the Front Yard Residential Corporation Fourth Quarter and Full Year 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call maybe recorded. I would now like to turn the conference over to Robin Lowe, Chief Financial Officer of Front Yard Residential.

begin. may You

Corporation. Good us Zakia. I and you Yard thank the Thank My morning, name joining Residential Front of today. Financial and is for Chief you, Officer everyone Robin am Lowe

slide Before we begin, log access available information want slides to on To may to accompany remarks. useful. slides, at investors presentation www.frontyardresidential.com. provide that our These remind to the is you I a please our find website additional

results future forward-looking X, period laws. our statements. in risks the a involve to could presentation the maybe or may As statements indicated cause certain of Securities use the by pursuant Safe Company’s contain actual Federal identified terminology on These differ Provisions discussed that Harbor Slide to uncertainties to that forward-looking the forward-looking and results may of statements by the from materially reference forward-looking

an and For to December may XX, such and the end today. Forms Securities as refer a including quarter XX-K, the our Form please release filings earnings with that filed well difference, XX-K disclosure our year that elaboration and XX-Q Exchange first, XXXX third of XXXX Commission, second in Company’s XXXX our the as risk our cause the we factors Form statement

website If our via using to filings the e-mail, you SEC alerts Investors receive materials of would e-mail like and please the other our releases, news page register on button.

Chief Front Executive for George. the of Residential. to Ellison, me would is to Officer George now turn over Joining call today’s presentation I Yard like

and everyone. Thanks, good morning Robin

Altisource Residential Residential. Front is the announcement First our on name Yard of today now the change, company’s is agenda

to that preferred warmer, to run we rental our to we looking name and homes. to families more in the wanted the something choice affordable for single-family and our to housing, As grow our size change something speaks mission become

should a yard taken, family are in smell the is people, rental pictures the children a garage where are the cut space, decides yard, all that concepts parent’s tested differences to a many your where they their privacy, many and to garage made. dog, driveway and year. an single-family Spoke last apartment a many with play be put home with of and bikes larger considered own One names, over between grass key more living the frustrations

very are too. images it name our happy it We with We hope new that like and evokes. you the

footnote, remain RESI. a ticker As NYSE will our

let’s the Now, get Please turn into Page to numbers. X.

mentioned from our on homes acquisition As XXXX in previously increase. last just purchase at grew portfolio is announced to the stabilized rental on of end of the X,XXX rental properties closed end of stabilized. ‘XX, of portfolio XX,XXX the are our of homes now of XX% the XX% and under XXXX, we In Amherst. by portfolio quarter’s our the call, final rental XX% from a

excellent XXX% year-over-year end being front, stabilized X.X% in strong The over Residential. fourth the was an stabilized X for fixed quarter, remains duration in FFO our was was $X.XX at rate, XX% share core of revenue On funding at around in with the and year. Front right XX% leased for and rent X.X% X.X% Turnover full year. Yard all-in-all of At ‘XX, rentals income, increased were portfolio Rental rental the quarter quarter year. the in operating the for the margin the year end. XX.X% XX% Stabilized fourth year were quarter. for quarter per NOI the fourth operations years of for increases net XXXX, XX% blended and the XX% of stabilized the fourth

recap we Page of our show books achievements the on first X on X. Robin wanted to I and we and As the our story years, closed which team the

the moved loan our NPLs. from away completely Ocwen, with relationship of we First, servicer our

we then our over that’s that a management, and part business sold. done. sales fit made REO to We left accelerated didn’t and portfolio of Next, own in another of XXX them only REO complete first rental in we end and the already year our XXXX XXX the commitment sell property NPL almost This is with homes our of exit diversified strategy. year

quarter numbers we rental As associated target. reached stabilized noise on the FFO assets these exit We $X.XX XX,XXX up a hit core we that and then homes our as well. clears found we per when

our to added changed extended these our have target as to X and new NOI last delivered, of has results made XX% of We promises to goal. we a our have years. We set and duration the And announced We margin consistently funding and team lenders name. our XX% that matter. hit stakeholders

bottom we some So on the listed goals do slide, of of for go from the we here the future. our where

need the REOs. we cleaning few to First, finish remaining up

every effectively Next, to we the to appropriate pruning need our location targeted key for critical markets. We portfolio our metrics. concentrate our rental or beginning non-strategic in and operate are locations. Having process us of is portfolio non-target into at skill our

Next goals operating and maximizing is of this the important efficiencies. need and turn to most continue our inward one we

built. our but and sure we how are of to to consolidate pleased down far with need stock are come we we growth, and make ourselves take We pause optimizing what take drill a we

time. debt floating continue strengthen extending we risk over to by Next, and sheet balance strategically monitor de-lever need further duration, fixed to our our

to now the allocation capital reaching beginning size principles. of that show on is need are a we As classic our maintain to scale, finally focus benefits we

grow expenses to with keeping Yard the the focus need G&A and Management on while asset allows our real ratio and we a agreement is eye others major Asset management of among Next, with Altisource revisit that an estate assets. Front create to continually that to one to construct

market to believe this for accomplished. within continue size, we it to ratio to we our be as acceptable need We adhere this are can is levels but currently and grow, critical we

back we to property turn monitor the we the to price to continue of ensure to need we excellent but efficient company. for it we currently optimize need will the at we our to Rob. to the maximum continue are effectiveness coverage function cost as Obviously, have Finally, I most to structure management property management, grow. families our getting now

are reporting Thank in XXXX XX. on to a disposition decline. were full $XX.X the X% legacy the increased XXXX month the and to million XXX you, one from full fourth the fourth and XX% an third for $XX.X million, leaving quarter, quarter quarter year third X,XXX Today for quarter the We George. and November net acquisition fourth over loss improvement XXXX respectively. quarter impacts million of REOs revenues year, as sold rental REOs. over $XXX.X XXX GAAP million revenues of we the XX% the of for homes XX% continued legacy of Fourth sequentially reflecting a increase $XX.X asset quarter Amherst of impacts Total the non-rental

sale quarter XX.X% for of million. the XXX quarter were leaving the books million, the closed only also fourth value on XXX loans, XXXX. $XX.X our Expenses loans with fourth the mortgage lower We approximately $XX.X of of carrying than

million. in $XXX.X were remaining our As revenues the quarter FFO REOs. REOs third reduction XX% were was was operating $XX.X than were stabilized of asset-related more we $XXX,XXX non-rental a properties hurricane-related million quarter XXXX we as bringing fourth over by lower fourth continued to year-on-year. Expenses in quarter total purchased Full X,XXX XXX% the costs the recovery up Rental as homes and of of and portfolio the X-month maintain are expensive the was the expect to the higher XX% disposition hurricanes lower net Core our property on non-rental XX% offset a compared assets. depreciation X.X% Amherst. of than the on of to rental XX.X%. impact NOI margin recoveries year legacy to the mainly non-rental XXXX. to for average in In we quarter, XXX% million, expense complete portfolio full million, and impact XXXX OREOs, insurance the compared driven reducing X% $X.XX the a the to last by of trend revenues property operating recognized seeing expected the we are There further we year in rental $X.X cost disposition this up reduction rental despite $X.X are now in towards from homes.

and On further $XXX,XXX. breakout We continue a we $XXX,XXX real our deck, earnings could assets. of in provide range of insurers work of estate the with to XX to our recoveries Slide see potential

earlier, of quarter last our XX% noted real we to from as are up portfolio, I rental estate non-rental As XX% the REOs. assets divest now continue in

rental In XXX addition to locations. have the that XXX remaining strategic legacy assets for REOs, not in are we identified sale

non-strategic in Stabilized rental earnings Slide assets. NOI prune rental XX.X% premiums year stabilized repair improved XXXX Going the to quarter financials XXXX to of lower deck compared for fourth portfolio. costs. quarter of will XX by to of continue we the XX.X% margin XX.X% in primarily maintenance in basis, XXXX NOI and XXXX. full in portfolio from margin our forward, XX% fourth a the driven improved of lower to and the insurance provides On

of Moving Slide quarter $X.XX, stabilized Stabilized XXXX. XXXX XX, $X.XX rental fourth our $X.XX in XXXX. fixed has from maturity are ago XX% a XX% X.X financing now a rate. shown years longer, for the for up rental core the on full up the XX, third quarter quarter XX% Slide year or $X.XX from and of FFO of to up and the was funding year in of Details core flat our fourth is to from FFO was debt

forward. duration and potentially on higher focus rate to continue going will debt a We component extending fixed

$XXX George. the will addition cash, turn to and $XX of assets now legacy back I million unrestricted over equity call In around remaining estimate we million. of to

that metrics, to continue answering as new all questions these results some promise to while want to after look of matter. you our quarter. Thanks, a our And We any conclusion, deliver, operating quarter you where next. Rob. discussing may along the outlining this we emphasize judiciously excellent and strokes In to grow company forward the have. in forward past just we put make we We name, continue company goals with will on we broad maintaining drive already calls our with we

questions, open turn now back please. to will for operator the We and it up

comes [indiscernible] Thank Our the from first Credit you. line of Instructions] of Suisse. [Operator question

now Your open. line is

guys. Hi,

side. from So my the question it comes expense

you that portfolio So portfolio. of achieved know the home XX% now of rental the total I guys

how convergence the in transition, reconcile we so So, to final segment, XXXX? capital my is the whether the the some sort kind of think like million, G&A we of I the wondering X.X was convergence in DX of stabilized $X.X as should allocation, rental that expect was kind question we I was overall can metrics trying about in and/or about are million but from stages of so

Yes, great you, Thank question. that’s Sam. a

asset So But roughly average our actually the home at look for this at fourth quarter, the was quarter Amherst our maybe the for from we count X,XXX count if quarter. homes. bought right by homes average of you the end XX,XXX the

probably can and to we So equity, somewhere between homes. get XX,XXX if with you think our existing XX,XXX

you two, take it’s the the percentage simply about If XX%. of

And about by we so home value allocating terms the as are was from way. count as XX%, just well it

allocating about FFO of the We allocable cost to the G&A and XX% are portfolio.

to when words other will So, get your XXX% converge. point to of to that XX,XXX homes we in XX,XXX

have allocated to FFO the portfolio. XXX% to the costs allocable We will

helpful. Great, okay, that’s really

So you are out trying update my guys terms you the next question pipeline was and could in? in acquisition of on to the seeing build in presence an markets cap what rates your you are provide the

low out is are yes, a there in I in are think to couple they about the folks I so than pools in of large – coming there are or few X,XXX those along the there nicely, and few past would building X,XXX out used be. particular that are is there to have those still of mentioned pipelines a thousands I we Well, three then But large there still most a we there active. a mentioned we is that a are quarters couple mean were selling less that aware and back. still is And say

steady, to XX, bear pretty sort month. of X, And so XX a are starting those That’s fruit.

Amherst and show so We last a homes. slow a in to focus bit Amherst know so us we to have X And continues the year trades ‘XX X,XXX, us has closed been ASP has gone Obviously, those little because that. homes, show XXX closed just our on large. on were as you

So I we are of different would say in the some a it’s, little other of sector than remember bit SFRs.

good supply this very And we where there broadly a is speaking XXX,XXX XXX,XXX. in sector play, homes to of so

people space. in there is demand, you building know aren’t As that enormous

so And all news. good pretty it’s pretty positive,

so much. Thank you it. Got

Sure, Sam. Thank you.

Instructions] Thank question line Anthony JPMorgan. comes Paolone the from next you. Our [Operator of with

open. now is Your line

and Thanks good morning.

Now you last will Amherst in as that do first have a sense this acquisition? that homes, pulled you you think to be have on of wave year the what yield

we our we in expectation below what expectation, is so our buy that’s X% say, driving bought we towards portfolio. that always XXXX. still but slightly we of that’s to very as yield, Tony, Yes. are a that, that Maybe

along to you will then to And do the of XX,XXX end how XXXX? XX,XXX be Okay. think far you that by

be it’s mean, As some get again I the pretty of – I to be know, would you things binary. fall if right year in first we the we It surprised price. to have could place. half if

So there buy if yield, a get we we scenario get to the hitting successful that things where can’t pretty then but to. is to we going been we have not right we the there, if are can’t wanted numbers

a try modeling of manner. are I would year, big part so it so this say would asking. be do to out And why don’t I conservative it over think chunk of that the in – we year, I – say to I’d in first but the would in conservative, the very could terms is a you in I be it splice

So, I that? by last say completed will and what and into be year anymore to end. end price it XX,XXX get would agree I year on to you We the be Do by will that’s to to with XX,XXX equity depending the of model need don’t amount would tap spent. us

Absolutely.

then in at you what of point I what’s non-core number that to of of non-core well, this guess of you homes either as or either And dollars magnitude markets? end non-core as mentioned Okay. the as some and/or calling homes think terms

that which homes have, maybe market We XXX are the we said right as another…. what on non-strategic now,

XXX.

XXX. to XXX

said over as proven time we will total was previous the I have I think methodology you loans. know XXX, as be buying the

created less with XX, still have you MSAs what but homes was so proper the ended XX up X. that were the And cities that kept yields, are or and with

on homes didn’t that have are to last go. sections to this the call, about rise, two stuff going out example, So there a be got for could has are that we hard. St. St. Unless It homes could many to ago Louis, the be on pretty we that. talked Louis that year and

small not want Providence, it’s think and Louis where I we have I we to to numbers example So, where to get opposed or to able Providence. think the an XX as as say St. Rhode the XX have where homes, the are cities depth in going be Island, grow, we be we penetration

more up and who some Providence in is will there of and there, homes to reach who we folks Providence somebody find managed will plenty to people smaller portfolio. we So, so out sell

So, to going while we that’s are I growing. you other some time think say but take the numbers, hand by same drops to at maybe that’s I’d whole because time, got hit the XXX, the thing right on the

be? leverage it. net do you mean of or your the do just of you target LTV And about maybe the think Got about where given maybe you think EBITDA talked to I to a company how or you want as the perhaps how leverage, viable, debt because to way do size then right not it

Yes.

talked in we – and like the talked anniversary and this was rapidly as is hitting X we rentals have are we the in we have we about years, pretty journey about we have when arrived that so so things now this XXX here changing there and XX,XXX, are We dramatically. obviously pretty I now the think last something past

excuse up brought have to of as growing, about the now growing I we that. little me deck it’s as leverage thinking we higher the we that start in so we are And section gold pressed think it are a speech the time or

think that we about are as to maybe starts And maybe that so purchase now. the I Tony, So, company the then of I a I everyone in maybe a think we will to XXs next game portion touch on turnaround think talk the higher. goes and And we peak this. around and

I think it’s time it. to start thinking about

with turn on fixed. the last X-year, can’t deal X% you the deal you leverage I the was dime, If a make a think someone

we if So could, you that chunk that I mean would to renegotiate you example to for can’t that. have LTV but a lower change

are peak. you to is So, say it’s what we starting to to trying

peak lot Now, depends where there it modeling want. types what start up. you down, are, into to different folks the to REIT equity down up, of see, we of And as of and your want A is owners say that and to on the of dialing purchases really for they leverage as to owners it’s the what The end it’s raise this it we but that all homes. less the come type as to know, next so model starting next new time to depends value to it would as investors, god, homes next well question. obviously are about folks dramatically, on do we of we aren’t use you go what it’s our you buy will now care cater ends pure time who obviously start as and now able that pretty this as phase to story sensitive you back please where set we I’d have quite investors

trying but what thinking it’s to start it that’s out, and it’s down. we bringing modeling signal to about to back to people, are top So starting time now

there? Okay. do And about revisiting what’s question a just how you as strategy you asset that or the goal last the mentioned contract management go

what talk imagine. When one the works boards doesn’t it, in both but boards April as of and talk redid Yes. we ‘XX, work about pretty we to you last we both openly to about can

it? exists the is And three management but main issues And lot might just has with in the issues, brought mean, companies a you management. the the it this is two external in one to expenses but it of XX, by that different to there a cost up And about have and in are around as comments. we discussed And more of are external IH this more now XX, boards exist and and divided down, so we not management? structures Does have Does talked and issue it to one more a XX, written internal four is driving grow so topic. is lot as about I do your that. you got there looking cost talks efficiency more had there that that certain or and to I the and other this with at whether be have and level been XX, bought has and more. things or And but know XX,XXX you everybody expenses, both should other with everybody other come down it on all XX at issue REITs of external that external, space, and I we places, assets

live if have not standard. the to should have it external money or amount really as what I about. by same to am that management, that’s think we So, I of it’s in internal same interested external care costs shareholders

excellent line but were, at with skewed starting we is to to friendly are folks excellent calls it’s two, are track but tweaked tests comes those or to that’s expenses first So, continue out being to down by that we when all it fare this and or the it and issue then it’s out and the it have mean, come we you whether for excellent with know of Green we of the already in want the of and argue the is something built, out about be contract what AMH is spent balance, are what all to I got things that friendly with a the by And normalized there And is that have And Tony, leave but watch other, to contract it and sometimes, could external. down. I internal make team shareholder boards trying the all sure answer both, people to there think book? regardless think XX,XXX right are we model talk about, in some it we is that’s is and on are the divided Rob I to line make IH assets, other because is is or terms sure in shareholder in number to Street to that lot expenses, think external. or was one I we that it assets, have to I expenses what on I things to and way expenses, people as time be those where is And two terms one, of we divided so continues. think well. that, internal of G&A,

do the talk it? how So, You do We to boards it. time. about all the update them we

that and issue, but think a think I We about in meetings and be bit have herring But will will companies to then next see a we two goes. is expense think I think and I to it’s improved rest Both red internal, The can of where whole pass We and sure shareholder I it those will this be both that is, improved If work, continues noise. it sides wanted and it’s on with make answer every friendly of it this external. week. little to I both talk it so board think to I does, can continue to it which if think it meeting. tests. we be it it can we tweaked has

new Thank you the on and it. color congrats for Got name. the

Tony. Thanks,

Thank you.

Our next question of comes from KBW. Jade Rahmani

now open. is line Your

two is in AMC merge AMC of the not fully the be just participate companies remove the upside profitable, and Since one RESI Thanks. let aligned to overhangs? in not why one,

I there you over people Jade, in on on said, in these are we companies. I think cows went think no I sacred company say, the based or hope believe X, stuff this Let’s Page

whether would started first XX, of any would would back ever in – I of I any those when – at been half been have being the people where could have showed list, look think some you up I do believed have don’t them. we when those that things ever and We done, think Rob talking of go have we and of

hit – if sounds we dogma it It’s operating was idea. external is property there metrics. So, excellent management, complicated like could management believe issue, but property a that’s not that – it a fine

Okay. Well, proved we just that.

that won’t it internalizing some So, but mean day. we that look at doesn’t

but As doing it much different that. is there do relates it? to do ways situation, talk internalizing complicated, we about to AMC complexities more There of and is RESI, very that,

totally other solve the but there about too. this, talk to are is way appreciate – ways We it. I it That’s solve We thoughts. one to

So, I are table Everything we that’s the is or no companies continue think and anyway in the and investors what one investors signal become is the folks table we The right, off for prudent not practical, to the right that’s trying shape to will cows. company do what’s building to form. both we is to sacred long-term what’s what’s is this we think and size table what potential want. of on thing and and there off it isn’t something growth

investors that look solution continue the weren’t us things so it any give care those contemplated. you if even that’s right Page are And met of is the return make lot all a the the folks right getting we we homes our cost helps of sure when service that to at being about. doing to first and in right And the X,

an with your ideas a and lot as on take to well. excellent So we idea is of other consideration one that will

guess various have moved M&A reduction front, competing feel anything factors about to the the you you in portfolios, diversify the and do space up, that away that sizable you a you dependencies be there directly prior appreciate And comment for I market overall seen the we the of potentially deal landscape? is ball I initiatives deal from some to have a that with, have you pick RESI, just if suddenly RESI shares in there is and is have the on can bought if on to there could do entrants new M&A competitors Altisource, so the on Thanks. appreciate flow so you I how done forward, have

and Obviously, us feels different at the friends a market that’s as our just the I very, [ph]. Yes. listen IAH when bifurcating, AMH two The calls is – it of very sort to market. of to

particularly question, of of a blocks I chatting the that couple size that. don’t to so I space, X,XXX and they the well so whole met homes. lot we and about a large people in so have. with are the a with listen of we we will problems I And finding who with know first some are X,XXX have a feel folks our who to lot as to so Texas Louis, We in agree is still seen bit And competition do you, that’s little okay. in type we said – in out in have in dynamics and there St.

X,XXX. have careful living big small We programs all to the with million last it’s that I not in plenty because are rentals, to mentioned. we are are there – think there last we go XX I – those there do us some is families and pools out that step in take could single-family having finding around homes there to is of trouble flow

right flow we know the very, the more I sure on making want think So we hard the purchasing buy spending kept don’t very, people line X,XXX And pay very or very another we If yield. last the trouble the is bless, you good. M&A plenty equity as and to supply of God are amount will any have X,XXX that that, seeing have of the than get homes. to we we

could the of growth going of year? of including what’s in seem say am City, I about so terms what’s a issue guess Oklahoma overall, but you that to for your market, in sure what that markets compatibility, also not if there rent trends on exhibit weakness Memphis a is and potentially I the it’s for growth, rent In couple outlook

I you that the deck, so NOIs we time, of XX we added Page last asked On not question. I the am sure Yes. similar had think because

watched our managers we of actually of changes there. OKC, personnel some made one some – our So

top try know time. or our are to go the lot there a so markets bit you another XX be focus through the us there Oklahoma on XX so, of on we as on to is is or we just little are of people NOI this XX over behind oversupply, playing is to City, over but is pressure there So is hot going you way. and What and And going in a rents.

average negative good But X, So highest in the blended it’s not you thing. at look if a obviously rent, NOIs page. negative change OKC on of one the

have still lot are one Memphis our in we OKC second. confidence a So of and of

also NOI. has the strong it So

term don’t if pretty Alecia we things spun So runs top managers too obviously watching we around jump on Mason Randall help with operations get longer the of the are on quarter-to-quarter who from the sits it. rent, off closely.

and and we it NOIs so everything And are but we the watching in see follow stuff are this it, so we strong. weekly

okay So, list. we are with this

Are markets NOI growth positive or but income the those NOI in for the operating those understanding going is actual up net that are high, companies? margins seeing two down

front I a months moved think lots lot, I don’t don’t of whole of they Jade. me. have in

I front to contributors. think the it’s I that biggest not the exact remember represent a me, we changed actually one have last, but being of but I’d of wouldn’t if are having are in strong. ton, the don’t hard, dramatically it’s they go data check it I

rent You growth. asked about also

what pretty XX, out think about I to again, I city/MSAs, XX we XX, X.X whole, about much talking X.X model are a about. is you it’s think talk think we

we about modeling for would we if X.X. asked when what you buying. inflation take and are I’d out that’s is I what that, you X.X are model said of X.X to just that we X.X so in to say you will think that’s expenses but I think what add prediction have is to of when with the agree And we that, year, kind out

Okay.

afford can So, a that you month think median rent? extra your in like an renter $XX

hands homes I’d house probably when house. of things to mean, getting you credit from there talking but more transfers a lot some are about XX,XXX buying to to others, watch is issues to another I say change SFR families, lot than

we pretty watch so And that all of closely.

So, average the is In think guess that. even than of it’s the portfolio, I that stronger might answer on cities, across number definitely doable a I I be definitely doable. is think it kind some

cost on repairs are And for what experiencing can is? that for what maintenance you per for the about homes a and talk and you turn CapEx return basis property

tenant our XXX charge-backs XXX about about costs to Yes, our repairs Jade, recurring of XXX. turn CapEx, is maintenance and XXX, net is and

year XXX to turn? XXX per per

yes. Yes,

a that it So if to something would $XXX X-year duration? was be like turn

Correct.

me companies Those space. numbers knowing candidly other just seem to private your low in pretty

you do them and you deferred about if there you being to that but turnover ratio is I the is later low. of risk how or do how turn, on plan guess aren’t think So, worry your address maintenance about addressed the issues

So, we kind seeing of rates? are not really normalized the expense

Yes, we them, acquire all we into them spec. when we when our properties or turn renovate

don’t Jade. than I anything, is of of price think deferring Remember homes we point the somewhat So, price point the firms. other that our are less

I am these a numbers low, that So, we if you have. are little is this sorry, we find what but have. the

it it on but advantage, thesis lot much homes? actually maybe costly your price seems is have there at a shouldn’t items is based mean, incorrect, CapEx less items CapEx that those Okay. – forth home put or some actually thesis I HVAC XX,XXX it XXX,XXX could could be so the and that the whether is same numbers in have a which is cost that people point that these the lower

I be of it a one size think reasons, right. is could couple Yes, for

the were area tops, we and of be wouldn’t a are kitchens or be less. also just I marble a point an definition foot price average system think kind lower are lower necessarily in this right, tops put at area expensive. probably smaller the put less the for going square that into a example, that by depends so HVAC everything on for should think smaller finishings is to costs a tends we granite it So, about in But you hub like to even properties service if be that

much for Okay. Great. the so questions. taking thanks Well,

Thanks Jade.

no time. I over remarks. am I for the to company to you. back the call like questions turn further this closing would at Thank showing

joining day. for you. have Thank everyone call and our a great Thanks

you. Thank

participation thank in and Ladies you gentlemen, your today’s program. conference. today’s for This concludes

You may now disconnect. day. Everyone, a great have