Rexford Industrial Realty (REXR) 1 Nov 172017 Q3 Earnings call transcript

Greetings, and welcome to Rexford Industrial Realty Third Quarter 2017 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. to Relations. call like Smith] to now Investor with would turn over the [Karen I

like thank call. would third We to quarter Rexford us XXXX Industrial's for earnings conference you for joining

yesterday statements, and In the today's at forward-looking posted quarterly may Relations defined results package addition supplemental www.rexfordindustrial.com. section answers call, the questions Private our closed, additional contain on the press distributed On a details to with to in in we your after as Litigation XXXX. release on have remarks Act Reform market management's Investor website our Securities of

Forward-looking use potential, anticipates, plans, as statements words and identified are intends, seeks, projects, usually such by expressions. predicts of words may, similar expects, estimates, the variations such will, should, of believes, or

matters uncertainties forward-looking of income revenue, that risks to or to results actual financial address to that cause include from subject those today. and differ guidance. operating those related are statements discussed may statements Examples Forward-looking

assumes estimates. SEC. reminder, forward-looking We to a As detailed the in review in the these statements the the with forward-looking discussions encourage contained Industrial statements to filings company’s future. listeners forward-looking more management’s current update any to statements related Rexford no represent obligation

Khan. some an The this and with will package, present Chief In the reconciliations Rexford your call and believes Howard release on together the Frankel Co-Chief of Officer, website, call company’s yesterday Michael such the the available we presented explanation conference Adeel the were financial why financial afternoon, measures. Executive to addition, and GAAP investors. released Today’s certain call is information information non-GAAP measures company’s Industrial’s which then represents They of hosted company prepared by to on questions. financial and open measures earnings non-GAAP supplemental and are make appropriate useful are Schwimmer for remarks, will Financial Officers,

Michael. call Now, over I’ll to the turn

activity. and and begin our a Thank Rexford earnings summary call. details you sheet will XXXX operating more Industrial’s our of financial with will results, our quarterly an will then our for to XXXX. guidance quarter provide results. and I follow with overview and Adeel transaction welcome balance on our Howard of third markets

of are third basis. external in-fill and We our We NOI on business constrained the achieved model and The market. reflects growth on value-driven X.X% quality our GAAP with the of internal basis extremely strength property and quarter industrial our a on a results. Southern very value-added pleased same cash growth of focused California XX.X% supply

of value-add million consolidated XX feet repositioning Our vacant held includes and REIT. XX.X% square foot is for square XX.X% XXX,XXX space occupied portfolio which

Our stabilized activity. portfolio and was signed XX.X% were evenly split new leasing approximately feet X.X square which leases between occupied. We million of renewal

achieved on we a XX.X% XX.X% we basis and basis. GAAP leasing X.X% GAAP leasing grew leasing We are double-digit able And are pleased again set another leasing a new that new a cash a on volumes once only to on very quarterly leases we and spreads on Rexford’s On spreads. activity. And report cash spread for exceptional on renewal of achieve to leases record XX.X% our basis.

we approximately by that footage and year over X.X X.X times acquired million by footprint our So same for have X IPO expanded far, have and this square portfolio times we period. To-date feet XX%. our have since million square by NOI our increased increased we our $XXX

for the share to quarter company’s As a the by compared prior FFO result of of the XX% year quarter. third core grew strong activity

repositioning low quarter ample On XX.X% We per sheet about year-over-year have top leverage project our maintaining embedded in-place of growth we still the for capacity. with also balance share a FFO of while core generated strong in increase to the is growth major NOI from of assuming asset. portfolio NOI million another this derived XX% growth About our or almost buy within we $XX embedded half projects.

with in-place market. is the for end well with currently square million next NOI we on feet year X.X growth as rents portfolio of XX% expiring be about through the about positioned Our in-place also for capitalize our estimated

expertise a key repositioning differentiator. Our has value-add

For and respectively. X% projects recently resale XXX,XXX Boulevard on high-quality Valley similar of tenants example, quality X.X% trading yields at to of instore feet these and investment currently cap unlevered repositioning plus location and rates. achieved and Western we at is similar square our a of low total announced the context, strong yields reached Avenue Put X.X% into products A

to infill the intensive to marketed Southern better our to XXXX research off-market is us over we our than wealth core California billion directly substantially source within lightly market limitless yields generate are allows and mining a or close With better square X of market feet that value-add additional of ability through and Our result work than our opportunity. transaction. prior

singular California substantial value an and as us expert Our the focus at has infill sharpshooter Southern create to enables advantage.

equal. While trends infill And we long-term the shoulders national believe markets in fairly positive and not head that’s Southern and many rest terms industrial of industrial remain California supply are above fundamental. all in demand location,

and to X% reflect submarkets markets Los position of estate record trade continues Pacific over unique the container of well continues as overall continue the compared between prior e-commerce operate to Rim. operating to port we through port and as of some Core at volume After And an real feel of same reported a to Beach infill Our is nexus to game. the our increased activity below of major volumes the drive XXXX United incremental vacancy reported the the below X.X% period. demand X% X.X% September Angeles [game] Southern at vacancy. Long States California year year-to-date increase

and California Angeles Long Southern Los end from of containerized see channel. increase We with retail movement that at are bypassing between in Beach. increasingly the imports benefit dramatic the the at our to XX% our consumption boxes users in market ports as States a the population being magnitude of the entire infill No will to but United the warehouses same through largest continue and over e-commerce infill of nation travelling

Our by robust despite leasing year’s sold of also in growth a with growing reflects and leasing impact demand about and are new large driven XX% e-commerce e-commerce activity rents of that with activity XX% this land is the higher in it nearly five next leased new due build and to of or for scarcity the average high cost products impossible to largest markets than construction. the the industrial nation, part of

continue product In alternative it as lose fact, we to leasing. industrial is converted

and at beginning envision that that we the not Rexford look with business a excited we our substantial is in IPO. As it of be more could stages great building nearly

possible. team I to am business as future performance call turn We have over with very Rexford the which gratitude to we driving the we And our the that to pleased for outstanding making best our growth in entire be believe Howard. are

on and our the utilizing us for quarter discuss you thank market Michael data brief robust. recent with a to infill third fundamentals joining market. Thanks our with Southern be CBRE acquisition, start and look and remain California In I’ll market, strong everyone disposition pipeline which today. from activity update

Excluding the Inland a from at versus increased and occupancy XX.X%, ago, Empire on third the average down year East, rents ended quarter. X% weighted one XX asking basis basis point

CBRE infill couple rental our over growth which years. the projects of markets continue of to continue experience next to strong All

of investment this park stage an million core Moving Pacifica complex on X.XX quarter. million. $XXX.X this [success is transaction acquisition $XXX quality build We at of activity. the quarter square on acres our completed additional industrial The third recent industrial positions] fix the properties and largest in of or totaling to value-add feet industrial million Rancho XX

below the renewal this increased completed better in We market. submarket. top. feet on As our scale our we square estimated stated, rolling yield already low three project, on XX% in operating are years, lease the just a or X% over and acquisition we previously high first ways in are achieving XX% with the stabilize where place outperforming next vacancy process over meaningfully to strength Rexford's margin of demand self-grade and well

of foot grow $XX.X we leased Inland submarket to over project us freeway. industrial within and the is this million leased, just submarket interstate warehouse leased XXX building the in yield in of approximately million. this $XX initial square West X% [indiscernible] initial Additionally, transaction located place over enabling the The square below just the market Inland to is view, and is Empire acquisition X.X%. X.X% King's In for over X.X%. market the XXX,XXX we’ve in expanded completed purchase was acquisition XX% located in The Empire a has foot complex XXX% tenant, stabilize under permit yield modern furnace approximately off which two full in brand projected of feet XXX,XXX

initial South in expect leased to property rents X% under existing. X.X%. acquired to of for in leased We for single today down foot $X.X two and the investment me were deal the or yield stabilize the acquired be million. market foot of this September is submarket X.X% is enabling San projected acquisition in foot required rental We for temporary million. are submarket The on foot increasing Los million property tenant drive property tenant place. West in billion. program year-to-date, $XXX is fully for building XX% [indiscernible] square XX,XXX-square constructed for is completed X.X% place is $X.X this Valley were Inland transaction, a four we to XX,XXX-square side renewal and initial $XX.X visible with The approximately yield us for just but in kind. Angeles our single industrial market Bay we’ve newly rates Now, below submarket as million. yield the building XX we The In lease a of [indiscernible] yield an upon [indiscernible] is finally, units estimated And market constructed industrial move enroll purchase fully the which was let was Gabriel foot X% X%. road industrial the Rexford XX,XXX-square XXX,XXX below land XXX,XXX-square $XX.X tenants projected square on initial back initial Empire

we We and of market of new opportunity our have discover see LOI platform in track $XX and approximately core our on and to feel are fast deal strong. continue to opportunities million

has on have what the to value million fourth for incremental in the million completed to our growing market $XX close today. submarket. expected So, on Year-to-date disposition $XX million been at of quarter. is this, within – in close we California Southern and portfolio able $XX the assets. approximately we’ve Lease our deferred we disposition sale are Of to

pipeline. growth project In our acquisition activity our feeling addition to successfully internal repositioning disposition in to unlock we and continue

square company quarter a tenant third we of a – building single X.X% REIT an foot asset program year-over-year. at XX our completed for [indiscernible] the renovation located a lease including in new for signed in August, submarket. building industrial a positioning – area. positions office luxury completed [indiscernible] five-year triple XXX,XXX choosing for rent hand the In loading XXX,XXX the [indiscernible] new square We extensive feet. During we’ve a park exchange

and we portfolio not building completed found also western XXXX, April investor these in a avenue, but always markets transaction. XXX,XXX-square the We repositioning on desktop foot just

to this As out continues deliver office business, of With value turn a a mentioned, XX-year signed a industry these Adeel. and the now the no that’s portfolio completed cosmetic million be opportunity and in strong to including original and realized existing further the with functional of October engineering that yet areas, our - two drive growth we We have framework for as where lease supply $XX.X in streamline other renovation ability part of our lease full improvement. in I growth and a result over This locked from in increases products firm. includes million at in to our already annual a NOI portfolio. in cost. $X to industrial drive of and on a call the lease deliver rent end California, total our infield demand is to commence Scarcity which we increasing assets. to the in X% yield I’ll repositioning year Southern projected we virtually to expected X.X% and deals

seasons of quarter, Howard. reveal on guidance approximately diluted our net diluted and operating XXXX. to today, And was our summarize financing $XXX,XXX recent the third results activities. compares quarter $X.XX my a stock operating you, $X.X basis for finally, This And income I’ll balance Beginning In attributable comments sheet common for Thank I’ll the first you I’ll update the then XXXX. results. or holder of quarter the fully for to or third fully for the share. million XXXX, with

strong XXXX XX, $X.XX company was million For third property growth for $X.XX compares increase to XX $XX.X the offset the count. acquisition the million quarter XX.X in million Core was partially and which property XXXX, XXXX. fully compares $XX This $XX.X fully which to share higher or third share. higher X.X%. in NOI diluted in increased past the months or by per and portfolio diluted million months September an diluted interest same was completed FFO the a FFO same $ Same share of share in ending quarter per of core shares quarter activity for to three

Our revenue a by same X.X% year-over-year. NOI same rental a basis, XX.X% property a increase driven operating property by total was and NOI expenses. increase X.X% was cash On in in increased

Turning now financing activity. to and our balance sheet

a new the share prior healthy maintain a shares programs our per a of in a approximately third at July both supports our program growth matured exhausting July, a of were price under in million common $XX.XX providing in approximately stock We of during interest In issued X.XX% proceeds net $XXX continue $XXX that million private launched X.X flexible and million. weighted $XXX we sheet September after of quarter program. to bear $XXX which million average in balance we objective. issued notes senior guaranteed the quarter, placement million XXXX. Also In which

of million was $XXX with credit the cash $XXX and on As of a we activities $XX and availability result quarter facility. other available million these ended our

We $XXX on of also available have capacity $XXX program. a million our million cost ATM

Board to As our of near-term the with XXXX XX, on debt declared to growth unitholders position share a XXXX. our of regard just record strategies. $X.XXXX $X stock for to XX, liquidity our continue common of dividend cash we fund October believe XX, and of on to from payable dividend, well XXXX, million quarter XXXX of a Directors per prospective With December on January fourth maturities

payable fourth XX, $X.XX of to on XXXX of dividend on December our approximately preferred the our declared for Additionally, stockholders December cash share XXXX Board XX, XXXX. quarter Directors a of per

to like outlook update I’d XXXX. our Finally, for

capital Our any as been not and which AFFO portfolio our or transactions, not just guidance assumptions refers does have only announced. to of today, acquisitions, include for dispositions

to For metric. to for note the calculated does of typically our $X.XX XXXX, end FFO or this a we’re while share, previous not tightening guidance acquisition include of $X.XX core our $X.XX. that are FFO $X.XX other costs per increasing low to core that guidance our but range range costs for Please includes in and

is supported factors. guidance several Our by

our we're and We’re tightening on also our year XX% of increase our end is XX% occupancy low our same range an We're property occupancy which year expectation updating to other end. the for year-end stabilized to same operating of metrics, NOI growth range property previous tightening X% a guidance to XX% of XX% the guidance lower to we're same from a X.X% an increasing of XX% on XX% range to for is X.X% which property to end of the to increase for X%. portfolio

$XX.X take For non-cash G&A, of $X we’ll we’re million increasing line compensation. to remarks. of to including questions. to $XX.X our prepared completes our any million With guidance Operator? open million, That that, equity about the range company-wide

time, be At Instructions] we’ll this you. conducting you. session. question-and-answer Thank [Operator Thank

Korchman coming is with from line with Our of first proceed Citigroup. Manny question. question your the Please

Is what in it looking July serve at you of and Looking was it quarter acquisitions, a like, really year. at into same the of to than contract, it busy picking sort that of read to the of next beginning up in your growth little going really, and but more what's pace sort like the there what’s at pipeline and this bit it year. sounds coming just again pick looks slower is up you're then to or that’s now under the

increasing. frankly to been has and $XXX very, for you almost start as through Manny product week, month month acquisition is about tracking year, the that is joining But you of by is catalyst depth year pipeline there as activity, pipeline, last to beginning a robust we predict markets we've year not the forward acquired XX%. The looking to but activity important I information increased single in know increased this very much today. weeks its activity we is on in footprint as have our that down the most advantage our opportunities so few think already have reach week to only the robust in driving cumulative of footprint and the if Each but every in we abating. thing by slowdown remember XXXX, year. is so of Michael and -- us reflect the our research of the call growth our do is we see XX%, ever way our thanks full it since or those our that of weak only And the what terms not strong always our increasing any million the opportunities do and slow no reflect we've

growth magnitude portfolio the think important think is X you our you not I grown And X but growing I see the IPO by the most quality. that is times. see NOI times having about thing since growth about just NOI, but

that’s So business. really our key to

increased, that big this G&A The specifically? year. driving What’s at of seems it point the

Hey Manny.

projected increase a did increase see So, much up. year. maybe time that cash bonus the year to early for we year the might we year to is payout the XXXX. on have but this can potential G&A match Again, the we full in the visibility wrap don’t around also how last start And

to the those have employees is the a mechanisms is the disclosed and this obviously in, initial but to to payout the board in this weigh this still executive targets. what true-up has company. then the true-up this are involves max into to employees and So, proxy and was as underlying -- weigh projected all key And obviously in [indiscernible] named to the still in measurement

that correctly? I fundamental the to of maintain that offset think was better guidance providing sort if So to about

you so to fact obviously is $X.XX prior don’t quarter full part was a guidance quarter the here FFO lot is this things. this the next but there’s that a the quarter so the that increased share issue did obviously per keeping The That see stock of in of it. $X.XX. couple quarter impact We that is of ATM the from the

to even maintain end So still the $X.XX be if a this at in high were can we quarter. we right just

piece definitely are that it. seeing of you So,

part expiring the worth leases there is guided, in other G&A other is have The about of obviously already store QX. the feet XXX,XXX another think we so have and that and still you is noting XX% same which piece we that talked I or of square XX%.

there to feel optimistic. quarters very is seen have that very to that for. we three last and optimistic be we quarters budget we and But naturally some need productive very the been. there is have about similar what exposure to going But So still think still

Our question line of Please question. the Guinee from next with your is John Stifel. with proceed

we Hey the noticed Refresh property primarily to increases Manhattan just our memory multi-family how with your of in the quarters in your big assets? couple as of property taxes work last of world portfolios. part a tax lot

you? We here [decreases] which called are essentially how tax. your John, Hey XX] have [Crop something

Your sale your tax only annual allows maximum X% and is increase. a on price based of for

in So, our of tax a transactions the the the older about valuations. versus more have income the to current lot portfolio have of we reflect newer of bottom-line advantage assets of having that some

Okay.

going are tax the values a X% increase? much XX% are up property you at property pretty So, capped year

correct. That’s

was site? that to And what I you I question exactly land yield. right. expand what Inland if do day Can build then think What X.X a is to to the you that got this going something you side you second heard build I age, in can current with cause and you say about on

South it’s port, right in has Beach paid the so Long on freeway actually fully investor a the has building the Bay a and small it. proximity to sight That’s of Yeah. that

for just outside if deal. storage rent would I So, That container and that renewed didn’t to industrial leave light needs lease, the happen was notably that five-year their road actually think a around it down tenant would really or it storage. we just the tenant

several yield has increases for lease X.X% years. that the So, walked in and has in

no is FAR cetera? additional there But, et

but Well were market. build be, they that sometimes parking don’t are worth there sizes land on to a in that container -- for could are actually more we these land paid building as than

Not in Indianapolis?

I focus so laser was why think That’s California. and we’re

with The next of Bank Jamie Feldman question. your the line America. proceed with question comes of from Please

XX, page under want same-store repositioning. you. Thank footnote you Great. on excluding probably focus on talk Adeel, two where about I to portfolio

line, a can a it you you this remind then looks just that us was on talk how like basis is calculate So, on about basis. and metric? also this fixed GAAP cash And

Jamie. Sure,

so on number using that the call, comparable of the anything same-store in is footnote yes So, was remind is GAAP of part that is our disclosing to of everybody pool. and terms the just definition same-store ownership on the period ownerships

potential have being ago efforts We number starting what that added to reflects. repositioning that ancillary that’s comparable period point going last couple of data impact in any points the from out strip on and that’s

X.X% the a disclose for and footnote the the disclosed for X.X%. months it was there X% months not X%. months So, months in ending it the was ending basis for nine I’ll now for on three which number ending reflects right was the and nine What’s was three ending cash

that’s not only thing the that’s So, there.

the And on then to redevelopments. see these the rates as start submarkets? talk continue it cap yields And about higher or rate cap somewhere to stabilize submarkets. cap in talking Howard through Okay. rates of higher the maybe to see to the come was some yield you difference should that more we as in maybe go start Can

about about yield Just the as think location you how do think your balance of pipeline? versus quality you versus

a of markets deals few that that seen A Jamie. still go But just we’ve not the between one here the but sales down is tight, interesting enough thing X% spread in think B it’s is seeing there occurring sub quality or seen narrowing product. building. the Sure, Class extraordinarily those market institutional is we’re overtime now Yeah, I We’ve and that the Yeah. larger A a for, fee, rates cap range. key is

hard come on of the buy is markets seeing County the buy that lot could Class there Diego one put focus to people but San market would terms know less in rates, or we’ve terms of terms a don’t we number that of moving than of in really of Southern its are guidelines other. from be Orange the I occasionally say cap the change up, California something all-in-all polls on like pulling today the we’re A want some not horizon anything is and you to product in terms of in choice in think demand really because the where one seen a that are a those when focus strict we markets. those markets The cap of our the buy in higher we [England] we of that bit in really up acquisitions, where the more smallest Empire County, and much in and than new there Greater meet will and that rates Terra LA

Okay, your then say like did that’s potential into pipeline heading and helpful you we’re what as current looks high ’XX?

about plus worth billion Well one typically monitoring time. of we’re or $X minus a product any

under You I think We’ve it now. I few we’re other or is right had elevated fallout know QX. $XX of some million into mentioned got which right transactions, contract circling that we and a now quite was

of from. XXXX. So, deals very like the a lot doing I in we lot optimistic There that of have pipeline research of about a work we’re -- mentioned is lot we’re a the earlier

terms moment. So, be we of of the expect going that different at any we’ll deals are what really able don’t kind in pipeline dramatic change forward and buy to

is Please Mueller question. Michael JPMorgan. with with Our next question your from proceed

Yeah it as more selling, what’s making properties spend on properties minute talking that the tapped its a about just types or you of stuck to you different hi, is color that can bit disposition you’re little non-core, down just pool, are it a that?

outperformed cap dispositions the done values. were really the we’ve Mike, in Howard. significantly a rate lot past that hi Sure, its our intentionally of assets Yeah,

we creative was in San a in IRR. quarter residential we sold mid-way converted the is Diego property we recall sell and to and are a a might company office that and had asset were about on You going start redevelopment where to XX% first it and now to that

high those advantage So to buildings well a sell is rates. little rate of product in as X% little the management advantage multi-tenant and a in us of selling and type of lot low now per opportunities and of fury and from off sold more taking a the we’re portfolio are intensive few smaller management low of the eyeing and for that where cap couple that for and that cap projects teams we’re demand marketplace really for significantly our we a we a take a multi-tenant we’ve have right the located

are one create sell say opportunistic a tenant trade those efficiencies has let’s asset. our management and to or and terms lot XX two a a of in tenants the it building, in building quite as and operating basis be to able you into multi-tenant to with of our well tenants in know So teams XX the that do cost

we’ll assets multi-tenant deals So a we probably look see continue probably expect or more this portfolio go and next year few to selling. that non-essential to might at

And is there a like on a ballpark basis share? can you blended that cap rate

we’ve varies, five all the yields. have I it assets think sub Well mean typically been of in I where terms those sold,

Okay I'm just looking.

the make really of probably have would deal. I rental been rate associated the cap that midway a asset, mean could we which to on with value three on wasn’t there one, but, that so it, range we coloration have I taken, mean was a more obviously the

Securities. line from your of is Our next National the question question. Please with John proceed with Benda

talk So what put mix. currently operating, decision about NOI you dives the repositioning to one can driver into really repositioning two-large car these of into either property a or etcetera, [tenants] increases that’s the quickly repositioning acquisition

stabilize from not it's buying once Sure, we a and we’re own really decision we typically plan other words a late made its have in significantly create to higher value those than continue typically thinking and cap can revenues drive about we're market assets we we is Rexford and buyer, as a not how to it property, rents game, rate. in rate in cap that’s something, a emphasize, the

examples that stabilize assets, to tenant on XXX,XXX those and on those building link the what yields just call our of the mentioning that, took get one, will we give of two a today and you be, out the a value. XXX,XXX Let X.X% me couple and X.X% the on and while create of going to day them and were was knew plan from that

there last what we it So, bit of mature construction upside, our space process. to X decline down, it really size the managing of bring market really portfolio. way, team a that that are will you would focus lot and department look business at place on one that a way from from its--you're a building the third our upside construction planning and right we try And everything in doing is we is and to internally here do people that our our, name party asset size continue on plan is value strong have more with we our to a

those about what trends of it's unlevered cost. if our we’re a activity is cost more, that that look deals the and aggregate spending the and beyond and on value dozen against the the John the yield six six the anywhere cash that on the quantify X.X% that value subsequent at you throughout space to under and And $XX not unleveraged that I cost a is stage our is months repositioning that driving flow. total that and good since that other doesn’t dollars thing we and the go typically I yield, and and to but And there repositioning to that’s stage try page, vacant of Michael at least about a where of capital add business. recall, yield, incremental to we’re has it supplemental just Rexford portfolio, return about return Howard on ones on investing, yield excited and really from our at acquisition little just the think and on for repositioning extensively investment beyond referenced to use million, page, that’s for XX% properties on main working I CapEx deals increasing heart mentioned including it go few forward, key deals supplemental, is making substantial months. repositioning on total you space but think about we're total for way and for the us improvement And the and down make consistently just add its the and look look deals property take gets I that make or eight

more us Thanks I again think helps you that giving in So, for hopefully today. color. joining

question. simply. then just Yes, second And quickly

now two XX% below that think paying dividend a FFO there most is you of seems to front like or guys for and core dividend the likely under the On have I pay room be more recently ratio. been announced it

had talk the with you how guys with have core and in increases play about you NOI FFO dividend? et the cetera, FFO can we all and So,

Adeel. it’s for recall that And the was we just the to X.X% increase QX increased dividend level. Good everybody prior John from in Hey question. ‘XX and about

will value quarter we’ve for each and set and FFO are per quarter next $X.XXXX this growth and evaluate a current fourth really and that in share growth at yes, board year in productive the the quarter. had obviously we NOI So,

them of fundamentals making But very will in yields terms and we certainly think now use coming returns know the and these as in capital is thirdly that quarter is are Michael’s every you very, an and of and So, earlier back. point Howard’s interest. factors the to being we but that presented to to as all soon done. evaluates quarter be a I to point based soon sleep on that going we discussion is and terms there next there what as let we live repositioning back will as look and and of again, that’s going and the good does the Board it

At I remarks. turn to back call this time, for management closing the will

in This and guys Dodgers! the and is to company we next like We'd And for call. everybody on you talking look to the quarter Adeel. Go the joining call thank your focus

Thank you. today’s This concludes teleconference.

your time. lines at Thank you your You may disconnect participation. for this