Armada Hoffler Properties (AHH) 2 Nov 232023 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler Third Quarter 2023 Earnings Call. [Operator Instructions] This call is being recorded on Thursday, November 2, 2023. I would now like to turn the conference over to Chelsea Forrest. Please go ahead.

Good morning, and thank you for joining Armada Hoffler's Third Quarter 2023 Earnings Conference Call and Webcast.

On the call this morning, in addition to myself, is Lou Haddad, CEO; Matthew Barnes-Smith, CFO; and Shawn Tibbetts, COO. The press release announcing our third quarter earnings, along with our supplemental package were distributed this morning. call call available through the conclusion after of the of December replay will shortly be the A X, XXXX. access to earnings numbers the provided are The in press release. replay the

this listen this call. the the who initial made as and earnings X, are today, herein remind updated will those For not remarks rebroadcast of be you presentation, to that November XXXX, of we subsequent to

and financing currently statements, advise our of and These factors, are any difficult development expectations, the including of this our guidance events account SEC. change result listeners factors distributed to the cause our statements and the expectations, performance disclosure to which the and activities position, make call, review documents information in in beyond generally materially During as and or cautioned disclosed predict differ performance available. These our we and on of current we expectations our of control. uncertainties to our not which morning known based that the may actual program, and business, statement can with many as forward-looking filed press furnished or to a forward-looking are from as acquisitions we our comments of that and statements beliefs, risk outlook. release to this possible the risks forward-looking assumptions are portfolio, mezzanine we our upon pipeline, and results have all may assumptions taking impact that well into future portfolio our our related dispositions, is and construction Listeners are beliefs, management's liquidity

Lou. the normalized to, of turn GAAP package, measures at measures, not available limited non-GAAP which supplemental FFO. as now reconciliations our to non-GAAP is are to also including, measures comparable will FFO discuss certain in call armadahoffler.com. I'll included quarterly most over as well financial the on Definitions the We these but website and

Thanks, we $X.XX Good consistent joining for morning, us. Today, with quarter Chelsea. you share. year our with of our and thank guidance. per line FFO for normalized third reported In everyone, full and the expectations

can spreads income release, company-wide the from maintaining growth continues occupancy portfolio operating re-leasing high and in positive our see As same-store while XXs. you in the to press deliver

at We metrics. I'll model. yield most just to key there continue well is of or best-in-market a maybe to economic that you of details Matt of of few favor. results externally on their Shawn properties particular take and the in under will prove and as any to sector Well, examples state minutes the the out a diversified impressive pressure and the advantages the financial as operations a quarter current climate. few it's mercy business highlight having whether give

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substantial with landlords commitments. rent like to As have case lease who asked in in take to order hold reductions we, been leases all their preserve point, WeWork

Carolina. we know, vibrant Center this and urban total with buildings in class Atlanta, and Midtown Interlock mixed-use As you locations. have may Durham, at One portfolio X tenant the in in the West North walkable trophy are leases City new Both

just help impairing who, good good lease our should and in the backfill, for very patch. willing either these tenants to space. We're be reclaim to business. of with we comfortable below-market We have prospects despite the rough prime always are efforts a no may going faith assets for interest through choose That's

and holdings material remains expect year, next that office Development WeWork as within will the on division, strength that are tenant majority continued to leases our Shawn growth the the across are locations vast of and compromise not give a few you dividend robust portfolio or retail assets. a and will that of possess. with our to activity guidance we smaller Construction an we irrespective XXXX assert we the outcome vacancy Due handful of year we that earnings superior we challenges or face full in low-yielding of of we other assets. unchanged of either small in amount update well comfortable However, the a leasing seeing as

versus us. to in $XX estate, purchases. The away been X will transactions. Yet the interest details endangering we shying commitments, continue to future be is ever, Matt million allow debt we commercial level from credit of that XXXX. without another to and end multiple expectation are of risks benefit advantages rating and time results construction to derivative an major highs real elsewhere earnings fill program, a backlog, able comes a in we in potential and at are low is fee elevated to increasing proactively third-party of income second next Through profit further with years. expect banks for growth. all for achieved repurchase receive and in with similar additional that the you narrowly credit a most and a lines, successfully and of lock issues our most portfolio us These At year have these development accrued on growing XXXX operations which all-time focused through share from finance. relatively BBB to the our flexibility profitable our rates of on and dealing mitigating track when is record stable large activities, diversity area The yields continue decades-long extend significant our successful and we've business initiate lenders development companies we've that that result continue

capital expect Southern we strong on an Additionally, well progress Post. suppressed year. you the prices they Shawn us are especially will important reduce be as This at as in our update remain that activities ventures leverage equity development a as about term. joint X the Harbor to Point occurring activity completed give of longer give at for significant will pre-leasing source to once a

the For properties years, our mixed-use in we process, been integration important our as are class well advantages platform all vertical best-in-class value development of asset model, the and diversification, have our proposition. factors describing of environments as business

the despite reducing which equity. substantial of last values we estate ability understand to growth with XX estate, focus has the to dominate our years pandemic undervaluing investors While asset its REITs, real the sector, challenges over approach XX of has real our disfavor single class in impacted current projects submarkets making, consequently unique the some the property This and and our is multi-use multiple produced on own advantage. commercial years the

performance can respectable by no While means viewed by many, as it's to satisfactory be us. this

to Our its to remains of of property highs goal and and growing equity environment, both safe worth superior demonstrate macro the and the while the regardless a solid dividend. and return previous providing interim assets, to true human, returns value

dividends to earnings to XXXX wait and the continue intend we we adding for recognize Before to in market as outperformance. superior

continuing review versus resiliency of next the as years, separate strategic now metrics. peers to diversified that For to addition X we -- the operating to that to the and X well turn to growth, measurable the make intend of our platform. I'll our flexibility, call over foundational next Shawn the reinforce further strength in trajectory our as over moves should

high-quality Armada corporate while the with constructing safely purpose. accordance operating buildings, by Thank disciplined important I that We, real properties operating contains noteworthy as highlights. focused and of estate, few to the supplemental The you, intentionality recap metrics our The stabilized the sustained all foundation on of with package occupancy value contributing at Armada a remain of are portfolio. Quarter running Hoffler serves and managing within active being than currently note We call highly X.X of to continued cash combination commercial basis the activity contemplated. X, execution on would was Lou. feet on on XXX,XXX Hoffler during our efficiently all basis. developing on the and in NOI our high out and to growth a our playbook and creation the model. basis. like across quarter. which of a values has year-over-year less same-store feet that X.X% was XX% on X.X% robust positive Leasing third spreads GAAP million re-leasing year-over-year was square stabilized segments in is X% space the commercial leases XX.X% positive portfolio. commercial Quarter of were executed cash X the GAAP X.X% on basis of and deals a portfolio a It's vacant, a and over square our

a trophy of Our of and multifamily perform sustainable the superior to location consistent manner portfolio continues result in assets. quality a as and the

intend at Southeast at also the throughout retail NOI as grow XX.X% pace. optimal to time. footprint our continues a mid-single-digit to outperforming replicate is portfolio performance The We team this over occupancy. expands Our

leasing LEGO at active flagship Center activity our over a celebration As call, Tomorrow, hold retail foot grand I with quarters has mentioned their few elevated our the in continued million past portfolio. X levels store location. new the for been of very earlier throughout opening Town will square

We capitalizing within this on other in ecosystem. for are Town high-profile momentum currently space discussions our and tenants with credit are Center

Although our remain office leased to portfolio highly and broader not continues consistent the with narrative, occupied.

feet. XX.X% continue Led to the are In office our rents of demand that within by terms percentage to occupancy product trophy leasing of tangible and both This value market. The additional XX.X%. quality office significant present footprint. our leased of experience at in terms strong is of adding activity, office broader our nearly Center in flight we buildings XXX,XXX of submarkets for the headwinds the despite geographic ultimately the at square in collected sits Town the

other remained in and space past few also earlier, progressing. so Durham on focus list touched watch former & of suitors on notable remained over I Bath a top with Our Beyond that list has Bed discussions of will inclusions. The tenant WeWork for the Lou are consistent mind short quarters. has

the to in cost to have fit As Virginia programmatic narrow last best the location, opportunity equation the options mentioned Beach we our quarter, used strategy.

tenants only are the toward pleased status. At in portfolio, Rowe completion Baltimore, progress very to continue of global list XXX significant headquarters, in to Harbor make in the out over quarter are third watch our be Price we delivered on T. Point that of We the scheduled of XX XXXX.

roster Point luxury the significant to completion making be similar we retail Roswell, above now Allied, the these LOI the of rents. Additionally, XXX-unit in a corporate high-credit of under XX% mixed frame. time are forma will into as use Harbor couldn't office the is progress of well well more high-end Post dining projects. In apartment delivered Georgia, the completion realize We tenants excited commercial and with of and offerings experiential a project toward of ecosystem be and or integrated benefit project. pro as space leased Southern

Additionally, Chandler end put the of already Southern submarket units Residences, seeing XXXX. list multifamily demand with are be to These at of the are people. a and over Post, is high service prospect high-quality the XXX project at XXX-unit strong beginning positioned in February expected

estate real our portfolio, our will strategy high-quality company delivering on of focused is that significantly therefore, team the long-term construction our Our and, thereby serving expand shareholders.

We of have is pipeline according and backlog nicely shadow and robust. Portfolio contracted to is these investments $XXX a currently equity preferred robust over progressing that positions anticipate third-party we of plan. payoff million our looks

the are now given call residential one to As appropriate discussed space. And at in opportunity, target especially partners to those in if previously, proximity would will we, assets our the love our to Southeast. I over price, given Matt. turn the the best-in-class their markets of the own

well morning, you, adverse continues to extraordinarily macro The backdrop and economy. even broader on Good the team against thank the Shawn. perform

analyst FFO diluted and in consensus. normalized $X.XX diluted guidance we per For range per XXXX, maintained and share, $X.XX at $X.XX FFO of our quarter line of to of normalized diluted recorded share third We share. $X.XX both with per of guidance FFO accordingly the

Interlock leverage range quarter, this in connection incurred year. leverage is the which stabilized is X.Xx with consistent When due to ancillary acquisition earlier slightly with target the our asset debt X.Xx our of last debt quarter. this metric Our included, is was our above

the back on few earnings As flow. start over metric previous pipeline range development as is grow. to anticipated EBITDA increase decrease continues this The next until will assets to into in the our articulated leverage temporarily producing our cash the call, periods target

yield above maintaining team's debt to charge fixed sheet The X.Xx respectively, past continued were service and level and this debt and just far for economic coverage cycle. adverse market weighted ability X.Xx, and will the quarter. these strategy X% our execute average cost coverage with its ratio manage of conditions our benefits Our balance ratio

debt to adequately than position remaining can with XXXX cover pipeline development at liquidity means roughly to million, that support well-structured portfolio team investments. $XXX maturity strong the preferred more equity This, for our the requirements and ample objectives. continues Our our ladder combined our our achieving in cash growth be we

either would fixed-rate expected we the indicated On or derivative debt placement layer ensure I call convert our to new environment the in long-term we quarter, to that last set ahead mature. positions the and higher hedge in variable XXXX monitor year. debt market maturities private that in derivatives discussed were the and rate interest first quarter next With positions of replace when our expiring rates this moved be year for the quarter last current of of we and the longer, to the

With debt XXX% or term. the our is fixed intent that in hedged short close maintain to to the

the Our X we that most short-term debt end, interest rising on our risk intent entered continually efficient Point. Harbor associated of partnerships is in manner. To in into with to mitigate the swap our portion of construction the also joint venture locks rates

earlier, mentioned our exit we appropriate we may assets the to positions As these at time. look in

allowable initiated and repurchase daily program in In recall, Board for late all program. took period. X-day September, back will you As purchasing our of a authorized our limit Directors conditions share we advantage a June, the market of

time, this range. of price a stock weighted a average $XX total at back common XXX,XXX in we nearly low gross purchased of During the shares

Given monitor our tool to markets, continue the call use biased authorizing appreciate over posture now to increased Shawn. will we uncertainty intend towards preservation, discretion. I program this market we the Whilst back our in Board our the against pass Directors is of conditions. to capital capital to conservative

Matt. Thanks,

Hoffler. Finally, of to behalf continuously shareholders. individuals It is quality produce for a to talented Board who detail harnessing power thank our of focus and for ready create poised you value for estate that a value the Thank you and to with Directors to Armada to in decades team, our results executive come. the team you to session. a do. Operator, we of ultimately at team of group that is our leadership for are work On all real question-and-answer appreciate we your attention are that pleasure the

Instructions] Stevenson from comes [Operator from Our first Janney. Rob question

current little on talked about rent? they bit Are still You a WeWork. their

said is our concessions. that not -- just preserving And -- now, expectation locations that the -- interested in those Rob, of to seeing. activity amount as earlier, of there of that as As going current but is they're we're I for asking be in lease we're with we're

leases is you there through thrown there and but into the mean, in out move to done coming just you that you out that to them value the unsecured play guys WeWork of in value so -- mean, them I space have which and past, don't pit. bankruptcy, news to the I and back to any this any and let the and get now wait is be are do have to pretty you now letting ahead Or go that, guys? that's just that, months is here play quickly of on? the months for months out

It's that's proceeding. There irrespective that, you the It's to very as amount they that owe assuming of continue of them, In might is time when fluid will between with operate, possible then a bank be they believe difficult in to that to to now if rent It's say any respect, we continue say. value and they'll file. to Rob. going difficult expect. situation in

said to move with and those make great turns right going our for earlier, year. growth next expectation out locations are we're in There for properties. strong So is as WeWork properties of irrespective the I whatever

I'll add. by looking Rob, at be to for a not property. this one-size-fits-all the may Lou's property It we're point, right? locations, So

and we're dynamic situation, a over all it. So

to with tenants? or local get some to you in likely all continue out office to is back re-leased space there is co-working? guys two space ripped built-out partner normal be markets, those if operate Or an and sort Okay. multiple option you just the as directly mean straight-out to for I of as it that

table. on options Both are the

really wrong out seem be option. there They're doesn't going I there's don't to co-working frankly, model. to believe appointed. the And -- anything be with a However, well rip that

other I a of think just the our that of WeWork problem buildings a couple there's in is others, unique but are several to maybe fine. or are which couple there are operators, doing

as just are there's in going side, the market usual some looking space. So keep tenants opportunity we'll to an nice be There business the co-working trophy for on see. also may that but

of So the confident thing. the in we're of side any other on this outcome respect,

I construction Hoffler shadow for said that Shawn, you other robust. versus business stuff Armada of And think pipeline is How much is the Okay. company parties?

Yes.

to So the what in shadow is third-party referring piece. the we're

So that it's least seeing We're out Obviously, XXX% party. on third feel same run. I that be years at still it maintaining in comfortable activity short was of for what level the forward, ago, not a the would there. mentioned go at pipeline X we But instance. strong

any at new given see brings types of decisions? multifamily you the before even to Or are those what sense making to ground cost put the are for Okay. point waiting making in And of shovels you this developments, 'XX capital? guys

Thanks the Yes. Rob. for question,

As looking off their the we're ground. and countless seeing you for potential are smaller any expect, developers might get landowners opportunities to projects way as

the As bar might expect, you considerably. we've raised

or So going not the we to in unless is anytime soon. yielding growth the year. next avenues something single for have we're for comfortable low be the with trigger We're high pulling double-digit range

thing opportunity prudent up. is want the think tremendous pass you I to tight for to don't sit a So but just that

me. Okay. last for then And one

else basically question not whether the redevelopment a on size, some be multiple other there? that et just -- at just or whether use or and tenants is re-tenant one up of still parcel table it's it Or for that a I the into multiple guys Beach is the touched the just redevelopment a to sounded think Bed is in whole little that and the scale some but terms Virginia one portfolio. of plays re-tenanted, the be bit you going narrowing on -- Bath in or apartments re-tenanting broken that something Durham It like a that space, it's options, of is cetera?

Yes, two different things there.

over portion. the But acres being Regal we'd Cinema. Bath available, next piece roughly being any reuse and quarter that's other seen. that there right Regal site, of there's Bed that not -- at that, if and parcel or the hope point, we're know, few bit total continues As be would in of new-to-market essentially or a now, be -- probably with that announcing to the Bath part Bed retail. Cinema like whether that remains the program of with XX multifamily becomes to a little dealing to that is or high-end go so. be And on retailers half the half you some a if that -- the the But will be box of

And doing think is thinking outparcel the that Madison? moment? movie to on James theater? I it what that Is about -- multifamily theater be board? about what the you movie that at the just thinking are you a is that on? drawing Okay. were going about Is still guys that How

Regal advantage to again, be Well, is options. take to seem remaining going fine. their just They of doing

another As far $XX victim million were piece doesn't what to return just the that, $XX out there. that right million multifamily of us as Rob, or it's throwing about, justify now and we talking

and we'll coupons just probably back sit So foreseeable the collect for most future.

guess, Okay. -- lied, other And then I just one. I one one

anything do new completely to portfolio, start you where penciling fund And need of there a be sort or mezz project returns out? today? to the for to guys your On partners with

So well. might again, raised you been as as has bar that expect,

us with unless get then have balance sheet pro are deploy we going they in to see so returns high project we on their And that our And single-digit ultimately, if equity. can gives they healthy, that our partners room bring the to funded. the forma

is same not to ton the them a where the opportunities saying and what It's are the board they in need just portfolio. that earlier our and vast of stay drawing I with where out are, boat with that on put rates in there. there of they majority Now costs was

from Peter comes question Abramowitz Jefferies. next from The

developments. on seeing you're yield want what then you're I and to on I for a hoping yields kind question the or anything IRRs if right comments you or side, those? whether appreciate on in guess, multifamily the seeing market the similar not acquisition entice now you're of retail would the I ask and potentially

Peter.

moved a So moved cost are But somewhat. Those of rates on to bit materially as and know, grocery have capital of kinds be have as high we'd transact but cap well-located the cap credit has widened our retail you rates unfortunately, essentially willing that well. stores.

redevelopment growth more bit there we probably like raising marginally appears little we of pass value the think we sort sure in far shopping new if if in that's right But to one of see acquisitions. Again, up So own, as can capital development that additional a centers player. us at as our transact. spread that a and real be may is there. much preservation see looking solid be continue now, But of as grocery-anchored don't the markets can something to just too good target opportunity gotten internally on of not as you'll then a to you interested or has some were we're the well or do us we already I add transact dividend side, making

it. monetizing And talked then you've potentially the Rowe T. Got about headquarters.

seen Just in comps of kind thinking any there? how wondering relevant any you've doing that it type transaction deal potentially terms a if of and product for of office in of markets impacts your your

right thanks the not trophy It's anybody of represent building transact we the to worst any now. is that there Maybe I'd or assets there. But the Again, somewhere. aren't interesting. trying X largely, those say see absolutely for It's that of X any. aren't kind time. transactions There with there's out quality question.

discount shove, So a XX direction and the idea bit normalized things where of balance on bring to that's back cash in out assets we sheet. that is from balance the things But direction, to that sheet. the comes to now, go understood, you get for may us, great cost if wanted everybody we asset. bring type right months In push should make right fond the those go sure the alternative, real -- well price hope on to I have the now, right equity can in that don't of our obviously, value of a capital the

last then one Got it. me. And for

of this expenses potentially estate tailwind particularly of little side, in contesting You've generally? as estate just future could those kind a had some year. well that be in a any real on quarters? for elevated taxes we growth multifamily, And about office you tax growth how real think the Are should bit on

yes, I efforts. one thinking that should think one our make by to practice we apply of about is contesting all try where But to nearly and are the mean it industry assess them. them generally. should sense we I of be our

a in We that lot good had vendor and assist us regard, of that third-party have we've a there. success

So early the up are coast, on Southeast. and we throughout push and obviously, and But seen relatively those down municipalities Mideast, have often different down Mid-Atlantic back the yes, good success there.

So to we something focused do it's Obviously, we -- environment we to plan for, that. continue and something the to on. watch macro we're can't control it's

Our next question comes Baird. from from Wes Golladay

Can tough in about of and whether any the tough supply pressure lot that? Are or had you multifamily. peers environment talk some fraud. quarters it's of you the A outlooks, leasing seeing

normalize. specifics Shawn are can while digits. the that to let seeing Shawn, going it mid-single double-digit that? into But quarter-over-quarter we back to seeing People got normalize you growth answer things there. be specifically. on I'm used are for a We're

Yes.

are saying We've multiple forecast I go think Lou hit mid-single which the that's back head. where the nail quarters what the they things we to digits, on been that's we for and think and sit. We now.

and trophy in I is assets, maintain happening, high-quality locations, our us, pressure you the part that's when about where a think as is And flight-to-quality which view we we best turns on. formula, there's board, trade-outs were X% It's would the let's of across especially be quarter X around in let's thought the Our be. good. for our know,

team good continued, again, not but we're speaking, about double-digit of maybe strength we think, heck our about feeling see job generally managing set we're our is good and I doing our product, location, a growth, of products. a feeling

we've comfortable what underwritten. we're with So

at a this think take lot of Yes, people growth I would point.

XX the watch quantify on as is to that of that there list, to Turning are ABR? way tenants any the percentage a

ask did I'm question. work hoping glad that, We you would asked someone that question. on some the

Lou a let's net about separate ABR So about Essentially, $X.X it talk because of situation. WeWork, about is that's talked the million. total WeWork

manage that. the that. some not handle We for tenants, see successes some obviously We'll that's we So certainly, us, there. make can can XX it. folks over And may

that spaces, of significant majority at up vacant opportunity as take However, indicated, kind to I those the the have a of spaces least slack.

So it and able both the if, office, being good retail frankly, our that becomes fact, the stabilize we're submarkets, and to we activity, an in about about excited issue. feel in the in

And more normal XX at for for the watch context, I you Just prior on years? guess, it some watch list. the adjusted are it context little bit versus is maybe the tenants when just on current the a portfolio, on that the having about worse? list, is size XX Is look better? the Or you

pretty Certainly, removed. come with we took the been past I of where our Obviously, numbers over think we're numbers, go. have years. Bath consistent folks out Bed few already and we the it's

we size consequential. are. So about that magnitude, that's frankly, we about yes, and or where not that's on we're be. basis the of an should in I the where looking at And tenants individual But think terms of number, the terms in

follow The basis. reserve on there that. to just total Wesley, with is Yes. what an on annual for bad we value up debt line in

not I decision. going along interested really rent. said half real in to not an much So it's issue And just paying as We're limping make estate at the folks right earlier, there. we're

be those look will on. if things up hopefully, moving So for not, tenants. And we'll

Our next question from [indiscernible] America. Bank comes from of

on one there? nature? in Or in any Just decline your renter question. expand occupancy follow-up seasonal in are was an on you more starting the portfolio? And see versus existing to a in quarter earlier this multifamily behavior changes new Can you more the bit dynamics

time, mention tenants. just that back inflow coin, side of just part aren't want and about answer I to in rates the other over do mid-XXs but Shawn we'll let of we We the I'll again, that sustainable expect be [indiscernible], specifically, kinds fully of talk our that of the the of occupancy portfolio. that, the and Yes, across XX%, those because outflow XX%

we multifamily, is keeping again, of line. terms for somewhat back how rents to boost trade-off center will we are But not programming believe the in seasonal. of And to able We much course, go XX% time, in Shawn? the occupancy. not the were versus that same the in things we are So higher the occupancy in decrease at leased next year. is

Yes.

eye is some We that, software. extend are very I out looking basis. But ways to point, I to in Lou's add seeing the rent some aggregate now, take to occupancy, dip. maintain the and we XX% efficiently the and ways we and love think property did toward to continue right, to on for can. have essentially, to it's we NOI inefficient income supply/demand kind running occupancy that think to XX%, up, an The use with to as would to as obviously, use enhancing of maintain profitably to that. that the back. driving difficult we're balance an ensure We it's And We're the X% optimization do And emotion as frankly, we occupancy. NOI. We're healthy mid-XXs that climb. we're in the the there's terms of -- extra in pretty

I we comfortable So feel think here.

a in macro. and haven't We dynamic But still the above X% again, other comparative we quarter, market than me a in trade really last quarter where heard seen the a shift nearly we're ago, on that's you second were say out previously.

the good growth. about So we feel continued

on follow-up that one just Actually, point.

you of this the are drive have do you're is how platform, Or to said control the guess you I AI -- inputs help much like of You that over? pricing. using outsourced? like

pricing a our market, and is it point can that. broader that to what's want mousetrap the We in in what sensitivity uses how mid-XXs not third-party that organic, mousetrap, environment control of We market trying achieve. market are and run platform. taking what's we some do best to use a We at understand on between you rent We're look submarket at hit shoot We you maybe kind a set And feel we up, enhance to inputs do broader target. achieve like best way where -- it. to it's now better occupancy the to and for. that kind occupancy in but we control level, current what can can say happening occupancy desired inflection this to to can the there's to the certainly be does that going be the this more be trade-off to ratchet a imagine need would I kind specific of where of

to appear conference There the I'll no to questions. the speakers. back be further return

and Thanks very morning. attention this much time your for

day. hope to the have the care. end and year, between will and further announcements We -- great now we everybody, have a Take of

conclude does for today's conference This you participating. call. Thank

lines. now may disconnect all You your