National Retail Properties (NNN) 2 Aug 232023 Q2 Earnings call transcript

Greetings, and welcome to the NNN REIT Second Quarter 2023 Earnings Conference Call. [Operator Instructions].

I will now turn the conference over to your host, Mr. Steve Horn. Sir, you may begin.

Ali. Thanks, welcome Quarter and Earnings NNN's to morning, XXXX Second Call. Good

Chief on Kevin the me Financial call Joining is Officer, Habicht.

growth core As quarter our this the per along X.X% in X.X% of with the slightly cash NNN's reflects year's over relationships. share with tenant FFO $XXX investments morning's press for second yield. by release, quarter The are it acquisitions over driven results, prior a million performance initial produced solid

XX.X% continued above as with position lease the These In and addition, half of that trending strong shareholder we for occupancy been results our second the historical of quarter the value portfolio into to create in renewals and high XXXX year-to-date. transition have have NNN levels beyond.

REITs, first record X of in core other this paid to a Based FFO stock U.S. our under increase our an to per public guidance increases. months making range our annual share. XXXX company including we X on increase In common August consecutive thus, XXXX $X.XX is July, to be year impressive announced of NNN accomplishment. XX companies, of $X.XX performance, XXth dividend of announced dividend XX, which have select achieved we in an our

during to current Our of multiyear increase basis. in challenging growth this reflected long-standing This economic long-term strategy share the designed per deliver guidance the discipline is backdrop. consistent on a approach is

to Turning the of quarter. the highlights

the NNN. our vacant NNN continue X,XXX XX% the XX and effort remains to long-term of Maintained nonperforming properties above department for exceptionally assets, had which end, value which of freestanding for only At occupancy of quarters, leasing XX.X% single-tenant quarter average. Our creating working consecutive portfolio levels perform result properties high X is well. our

the addition, exercise extension XX% prior an XXX% quarter during up leases renewal rent. the of were the In at that for nearly of

Moving to acquisitions.

average of cap just XX.X%. repeat that lease do invested of were X.X% we quarter, XX transactions on tenants an from cash our XX the initial north XX with rate properties relationship We in with closed and $XXX an in the duration business. million During quarter, new we of

the X.X% of $XXX million with of average invested The in and lease first rate an we XX properties an cash initial cap duration half of new XX.X. over year,

to of transactions. on be that NNN's of at the model if team. is NNN the to form is of Given the goes within sometimes and It are closed you right that the acquisition pipeline, million original on is midpoint the all NNN acquisition that of has And acquisitions a roughly business buying visibility XX portfolio, can and lot $XXX XX% itself defined targeting guidance million the coupled easier sale-leaseback acquisition $XXX bumped the our to years. NNN model. long-term effort into obtain deploying with to guidance, for sale-leaseback this There up XX lease NNN tool acquisition lease which mitigate relationship result to returns, a prides year of year. the our risk value Almost capital of deals, maintaining calling overlooked. risk-adjusted a have is

point QX expected to pricing played That are pickup and May in mentioned as regard quarter that over second With seeing out increase the the a I before. the rate versus plateau stabilize. XX started the basis in environment, quarter in acquisition to a increases call, cap as XX point we with basis

which year-over-year. cap X X.X%, first months higher was basis The is rate points cash XX

the slightly half higher in the than As I'm second initial of far XX to year, points. NNN's as cap the second XX the rates range of quarter basis seeing

X.X% a million million accretive X.X% which reinvested to vacant. cap proceeds of we $XX XX acquisitions. at now the X vacant, at were rate sold including of $XX During from we have into Year-to-date, a be also properties, raised the X quarter, rate X cap sale properties, raised of easily proceeds

X vacancies, a dollars reinvested. recapture minimal year-to-date, rent XX% TI released with Although has is had NNN and Job

will rental income sell a We continue do within time reasonable not clear frame. generate to to nonperforming we see path a assets if

banking rates are NNN market, the with interest trading along successfully. but the current a The higher XX/XX conditions waters navigating softer is

Our the remains of one sector. our strongest balance sheet in

Our XXXX strategy. credit mid-XXXX, fund plenty material is acquisition cash no strong NNN facility guidance. to viable flow a of debt free our positioned has capacity, maturities until and well disposition

for their dedication set I and closing, NNN XXXX our In XXXX to and to up thank work beyond. putting position in and want for strong us associates hard finish for

Kevin some on and turn and over quarterly the me call for let detail numbers more our color that, to guidance. With updated

Steve. Thanks,

with start cautionary I'll usual, statement. As a

actual will statements securities forward-looking be revisions laws. results certain from results this to disclosed greater are The to were filings matters time from differ under that forward-looking materially statements, may press we risks discussed make the these reflect federal considered the to significantly these in future actual and changes the to from time statements and that release. may in company's the after differ cause SEC made. statements morning's in detail We not could in statements expectations may company's Factors release be to for with and forward-looking

$X.XX per over first morning's per per that, prior $X.XX share, results the 'XX was share, $X.XX the XXXX results for up first year per quarter results. year And that's which That's release of share. X.X% ago results over or and X.X% the a of With Okay. from report headlines quarterly for $X.XX $X.XX year share core represents XXXX. were prior an increase of half over this press results. FFO of second increase of AFFO half X.X%

basis cash seen included XX XXXX Page the taper to provided the be release. Similarly, XXXX. rent can that press core have in increased 'XX, as Absent anticipated footnoted these XXXX have would second and note, share -- off of in the repayments of quarter first compared the that quarter, of the details XXXX, deferred in basis $XXX,XXX deferred press in on continue million of good first scheduled repayments and was our for a release, FFO of both X.X% 'XX results and termination XXXX. quarter. cash growth income, get in in lease rent in accrual the would the expectations. basis share I Page for per and the AFFO with which rent line too, Separately, this X.X% absent per But of first As repayments $X.X half the been I'll overall, on X half deferred XXXX, with we both

on. Moving

dividend for flow. the free and That's of half. and XX%, the was that AFFO after first $XX approximately payout the first for Our of cash payment XXXX ratio expenses dividends half million all approximately created of

quarter weeks -- we increase be in will XXth August after mentioned, end, we that couple Steve of and our dividend that announced paid XX. a on As our gets what annual consecutive

this first the midpoint to and revenues $XX half of of XXXX. at quarter. that million was That's was X.X% year with of is That for about quarter X.X% represents line year. our the should for prior G&A X.X% revenues, full item XX.X% the for quarter XXXX, for and Occupancy was flat $XX.X Notably, million year-end it put the guidance the and for flat end. still with us expense total XXXX. closer

June base the Lastly, as $XXX.X rent all XX, we million XXXX. for annual ended of in of quarter with leases place

funded are AFFO FFO increased top acquisition year $X.XX typical a We're of acquisitions funded end over probably XX% to than construction funded did what time was our result customer. typical. of share. range In increase of that These are bottom by invested our XX% year, we Steve XX% range the constructed, that the to range in in core to of to terms of increasing and our mentioned of mode. $X.XX The per this $X.XX guidance as acquisitions. we investment end XXXX $X.XX $X.XX dollars in the a expense total to program share. split a which is $X.XX in property guidance value type increase to we the probably more projected that capitalized of of to call that year. think pushing guidance, is smaller of dollars this doing We're interest per AFFO sort primarily gets are where increased closer of is from by

It deferred are in today's now our million XX. supporting guidance, rent in acquisition growth, repayments Page XXXX, in The the $XXX to coupled press X really noted only last of XXXX A, modest our created couple from terms year's and in per slowdown helpful million. increase growth of on a really of was 'XX bar in reflects million as overall, $XXX the being in which with high growth the is X.X% notable mind. $XXX a key But XXXX release. in were share is my XXXX things that on and the volume guidance Page change lack the XXXX more assumptions tailwinds of scheduled

profile sheet. with over leverage maintain Switching of a good balance over liquidity million $XXX liquidity. to We the and

the The markets first cash of second We million of and in for $XX of in issued flow fund million basis. of all first the half us on $XXX equity half $XX leverage-neutral property $XX $XXX of million equity XXXX. of equity the quarter first to million in million allowed quarter the was of disposition million of first totals in fairly the plus half, of free activity. This nearly $XX second acquisitions which equity half million, raise and capital of quiet modest portion terms $XX our a proceeds

line prior virtually a have interest plan of begun more navigate and environment. Consistent with comments, rockier this no bank little and plan to after a part our capital market nearly years our to usage, use of the few we rate

and Our XX among weighted longest in which average over years, is is includes bank maturity debt the that the the line. industry.

with about our is outstanding all which debt Our total line, the represents exception the of debt. bank fixed of X% rate

Net charge by as Net numbers. All June mortgages. properties are and the was by was XX. was assets of debt EBITDA second coverage debt gross June Interest quarter. to owned to coverage fixed of book XX. at X.Xx X.Xx XX.X% unencumbered for NNN Couple

in to The elevated we're in yes, feel -- pretty mentioned, acquisition to what this primary track shape business measure and of re-leasing, disposition to and Steve our view the share remain grow and per rates. for navigate closing, be results, fundamentals, occupancy, year. good success. to which like So we economic volumes able to we're We in good as capital shape, renewals, as a good and be market cap uncertainties of continue the on seems

questions, Ali. to open it we'll any that, up With

Instructions]. [Operator

is Heffern RBC. Our from with first question coming Brad

you. for couple a Kevin,

So on total and mentioned obviously AFFO acquisition end trending I went the guide, think guidance, things towards last the were of high the new you up. quarter,

about out. that's on in Correct that. the prepared of I me talk higher? the interest, that the you can know So moving but the I think kept remarks, guidance wrong offset backed I'm capitalized from what was high mentioned if you end

Yes.

talking about or you're core guidance the So FFO both? or AFFO

Just the AFFO.

is year this been a what's that scheduled while. deferred AFFO, driving the a the for of there bit little that's Really is things piece a is but equation, yes. which accrual back basis two repayments, out

So are out creates really calculating We of interest more split-funded -- AFFO. that's acquisition capitalized we're done program, capitalized in back It's piece what and not being capitalized changing the our that we because investments call interest. interest much. more

of that's years. to our a AFFO So this a bit drag relative for prior year on

generally, is see AFFO our I -- more would our back core AFFO basis, our say, would on if you generally, pre-pandemic, than go normally round numbers. $X.XX you FFO, a quarterly

there. of a hand-grenade And way quarter. a $X.XX pre-pandemic this close typical kind back our came year, so We're quarter, maybe working levels. kind year. $X.XX $X.XX a of That's We

think Our of $X.XX. I mean, we XXXs like AFFO, were to $X.XX. from $X.XX I rounding

$X.XX. to went it rounding, one just So

line the a little term. And so the a interest think our of AFFO currently, on weight it's expense expectations. our of we short in largely in capitalized bit still But it's incremental number with because

issuing doing used cost as line more, mentioned like And Okay. of the plus you obviously a loan. it seems be term then wide X% would I latest what or the with get on you could by being credit the of think hike, Got it. that that is Fed bonds

your what's that float desire continue So out? let terming to to it versus

XX% -- I not is of you're which our prefer Yes, that think to line the a question. we comfortable capacity. at to fair which up a That's not -- about Yes, probably bank we're line It's now, line bank right the about getting right. X% cross. cost is

debt, So better the which, obviously be think some line not currently we looking priced you a I is. thinking to well, time take know, if about little in it's that bank with longer-term than period, as as would out

out with markets So fair that, we'll to whether capital our comment equity. it over yes, activities. guidance give look But we that capital on and/or debt time, yes, take don't longer-term be

next is from Dennerlein Our with coming of question Joshua Bank America.

on Granath Farrell Dennerlein. is behalf This Josh of

been your So I question the what's had debt and especially bad increase. already with maybe a assumptions quick incurred about in year-to-date, guidance

Yes.

we rent assumption, the -- debt bad every virtually year. assume And years. or think typical we're last sorry, I that's year our going X% every basis our So of XXX -- would we to or points of number lose for

any assume basis we've about assumed used being in prudent basis is probably position, and do. XX half out And we perfectly, behavior don't we to not was to our so do I anything have that very not we're don't besides typical the of meaning -- needed XXX of say, closer so points. now that, work loss. it to though much points, would everything it's terms what rent all. will it of normally of XXX -- in assume expectation we even basis at our we guidance points We've of elevated. and decided seeing think tenants' Currently, over their what just We years, we we

this still like far up. kind they're zone way things of year, say normal that I would to we're shaping in going be look so the And

wanted think And list, the about saw tenant or in also, on watch health Walgreens. news I touch tenant to maybe I I

stores last Walgreens closing Some touched on had & as Beyond. Bed well quarter, we Bath as

So you can give an if I'm update. curious

So the was of and & for tenants stores that our size you know, quarters. note yes, largely unchanged globally, from filed I annual credit view bankruptcy. X.X% I as Bath recent We base Bed of list, would shape specific X as It watch our had guess, rent. overall, The mentioned, with them. you Beyond, I the

stores. be -- We will back those getting X X

was are relates the -- one leases so about, it And to those And asked you what that as other sorry? then -- projected.

Walgreens?

Yes, that thing. yes. all in most rent. to I important at guess not store ability that's list. announce pay I'm worried their closures, none Walgreens, did the ours about They are of

It a those properties. any And investors, so -- at folks, we that closes change even all did rents the on store, for a And tenant their if concerns the even pay have obligation doesn't first. front. reminder, us to just don't to a rent

particular this And don't but any -- have -- list. so closed their we stores on and case, Walgreens, closure

we the Walgreens. really a primarily did a fourth the on follow-up transaction year. Just That was quarter last in

was to that there Walgreens process sign leases. self-selection through So went XX-year a

Great. few Cinemas. And you if Regal comments a on also, have

Yes.

bankruptcy maybe, very actually I Regal just yesterday exited, So guess, recently.

an with the so them. exchange, We come outparcel rent we that ability to property And only had to We're on there. out small reduction, going up property. offered got one a fine in but develop

be very of we an this down reduction rent, exposure, road, in for were. and So I the think A. when And B, reasonably the even it a very rent was property, much dust in modest settles to was develop located. But outparcel where terms the we'll a offered is well ability under we exchange it on up of think pretty small X.X% which

note. our and we But any that. So kind of won't like all yes, of on impact odds it have bottom line our

Our next question is Wolfe Eric coming Citi. from with

the was done, of the in quarter? rate If there I north look how wide was around that? And cap anything your quarter at X.X%, CapEx in say, of the range

You say up of me. that on kind you Can broke last part again?

Well, is, X? cap the how north think end just you're wide the of quarter? anything done Like was to of top there -- trying just buying range an where like I'm understand about rate I with was if the how

So the bandwidth tight. X.X% on cap in that is rates our fairly

midway As fee. through a kind it's split priced funded mid-Xs. of did We're we of probably I that the we was overall had the of cap deals last kind couple legacy deal list, high rate deals Xs. dragged looking that just -- kind at of that year their we highest And the we in

bandwidth. tight So it's pretty

a -- a in getting underwrite mean, relative I any bit And guess, call profile. why it. stressed, more income all spite you're reason the seeing was level of capital rise curious the just type bit maybe causing you how little of seeing that sort to I to normal yields more similar I the less you access you're little those it mean the are pockets of acquisitions. be acquisition I then Got a I you the of acquisition market risk a if asked Yes. immediately. think where was the I split I'd talked there about question to curious

Yes.

As And essentially far were movers first our decade. doing identify relationship, we've of risk primarily underwriting, tenants like as to We're the the there's the no We they'll bank. for because taking that do REIT split industry current the funded not the like the NNN in acts site. one a of profit developer development. We where split-funded them. deals we it been the a use in

NNN's and aligned are keep to tenants rent the So low. interest

So that's like. one part we'd

spread the lease. that still lease. It's of basis Historically, is split point a there's we a spread Again, we're an due baked XX basis seeing in. But to because NNN developer And not times, funded. lower XX, of point recent market. always profit no It's XX XX, over typically a rent compressed. had in then form spread kind kind the

So deals. there's those a into goes lot of risk mitigation that

these Yes. on And note simple, the relatively things. just projects smaller of a scheme in side are that,

are These go so in years. are these -- for these typically. don't measured projects on And months

get And so quickly. pretty developed they

And so holding period, on will. that, kind we're very we during of the the comfortable construction pricing that that if said you

or And the reason, rent as for window they one got close do mitigants if not. to have those building do and commence of has on if we leases, the say, some in the -- to unknown we've we we is drag complete

a think Yes. under, more to back while I might -- not only just risk make I the be greater, higher, stressed is rate for rates solve rate is likely the the opinion. great That acquisitions. succeed cap means It which for risk cap I'm broaden the was raising us, rate. opportunity the rent for cap at an which the the in tenant our is there's because is that thought true, the higher, higher bit, And way to to related question -- meaning your want means get tenants the problem lens little a the is to that an to less that a tends cap and And higher going of because to element location.

good to property be we is years, increase over to increasing we've proceeds cap address us, the so cap a the invested what do a the way And better and prefer reduce push And and found in not, not would rate is approach a materially. and the to risk. for rate what

way, a likely go more easy succeed. Tenant so can with you And that the up be. the more investment. whoever we extent way rent think easily to lower We property in Less doesn't more at be rent. means that the end next that's the it. tenant, To succeed, by might the proceeds tenant replaced -- safer that

go just differently. we at a so And it little

So mitigant, the rate will. approach. think we run, think if a run -- but don't a cap risk short see long-term we when don't out We as works there, raise that we I'm to in don't sure, great that's you

you. Thank

next from with question Green is Our coming Allaway Street. Spenser

Maybe questions. just cap rate following up on those

in we've now has Just XQ, that of credit now curious that or we're pricing this into industry somewhat retail either quarter? moved anything by through terms changed

So the from remarks, prepared the us not we're the XX primarily. it coming primarily, C-store that kind to just the in quarter. point I'm deal the in higher flows expecting seeing auto service of for And kind category, pricing is I third of resistance. any mentioned what given increase basis XX

with tenants Fed understand increase. rate the and hike, the cost increasing. yes, deal just we're any given we they sophisticated is of So recent seeing But capital not significant

pass that. some to able of through So we're

Yes.

you more that sense. makes little cap disclosed, guys believe? rate And your then bit if And again, sorry remarks, can if That in but I it. provide sorry a missed missed X.X% disposition Okay. just this I on the I color again, you prepared

or weighted X So were average of because the vacant. X.X% them overall was the assets assets X of X the

that. counted not we're So in

we opportunistic. So were

thought a Somebody lot NNN saw thought valuable that they some was. than land was it more

cap So there there's did but the cap cap, we low weighted to in then that in were a were barbell willing Xs there, to We sales that some down the depart rate. rate. bring it's approach to X.X% a a X.X%. couple at extremely we had But defensive in average

with Tsai is question Jefferies. from Linda coming next Our

other think easier. growth a last capitalized repayments rent being headwinds to will and year, you isn't about Comparison consider? backed slowdown earnings AFFO. a growth, out as scheduled rent talked to are much headwind? 'XX? in Or items 'XX Do How repayment headwind. of be in nearly capitalized interest You the you remains The are of XX% thinking interest about there

we is on Still as Yes., put we at changing guidance like get out yet, feels of it normal in it of good there, presumption what to and need my capital through the would the I we'll But in back to adjust think it's some out worked any and will items, a more but we early our haven't more, for 'XX. cap way headwinds I I opinion. this yes, and really my think world know -- be feels a markets And have point, 'XX XXXX. like, bad some and onetime cadence. rates fast, the lot should both

share And we back more kind growth. per think as hopefully, to mid-single of can so of of of kind normal what a we cadence digit get

It is interesting.

of If X-year as at came in per XXXX at kind we're of to a mid-single-digit X rate. happened But that you growth in of years, of not and what our it's lot of look of look our the a much growth that 'XX. rate. combination goal just XXXX be right it It at average to of and kind period, kind in think so spot share if of we the you long-term sweet XXXX

split-funded This will at much interest all happens approach. pretty be moment because The feels Like closer a be probably. us. doing deferrals just deals elevate XXXX I normal year XX% continue more to so than split-funded still said, And XX%, -- behind we're historically. year like of us to capitalized investments our the more XX%, is for is the may

on see. time. We to so that hard it's me I for with think so don't visibility But my And any on thoughts have that. with very will normalize really be that, probably we'll definitive

expect acquisition XQ? be XQ evenly and balance in volumes, volumes And the do to you distributed then the of terms year between for of

more business. third than sit here We're on yes, a Q. I as even have the given a visibility I little today, guess the just lumpy would I historically, very But

Instructions]. [Operator

Our question Feygin next Baird. is Alec coming with from

are any first difficult? lending you either relationships that now are acceleration retailer seeing or conditions one is, in new developer The the more

always to talk we what we and much developers, a our is And split-funded of as to can market above with interest, there's in bit M&A we're our organically. that's grow the and talking result find our we're little So a about is the tenant. market, in program lot averages. but usually capitalized historical And not of a a retailers still want

sites. they're So finding good redeveloping opportunities existing

So that's it historically. of we've leaned into kind a little more than why bit

far can term. they But you're and typically when because developer of now don't hold look because developer because a they long no, as as new developer -- from lot deals negotiating risks doing away there's is lease, the to the get the shied those it we

a there's lot difficult are very lease. of risks to So unknown that that underwrite within

of So we'd there. opportunities find and like lot tenant relationships our to a go good back to

we be there interest Is capitalized on drag of onetime items the forward? or should any FFO. being quarter other the of aware in a Outside going

topic. of like of on deferred ongoing are an which the And on all -- be -- rent quarter but in that release, that. and was the said, No, mentioned kind XX was kind can that's mean, give Page thing. beyond you nothing in I lumpy, numbers the press of fit which the it the was I of income kind detailed then amount, second. termination repayments, That print elevated the lease not and the the I first

is But I the to see are no, broad think elements. really And forward. pluses any the so your we onetime going those or minuses don't answer question

from question with a Stanley. Kamdem Ronald have do We Morgan

Sorry, I little jumped on a late.

bad back, you it's maybe big guidance update give haven't an step that's would sort just any watch particular, And or on how into other Just the baked great? exposures any year-to-date? list, Bath already of the and that's the touched a take be Bed you of trended -- us can just debt sort whether

not XXX points or think So is our assumption yes, you That's we'll tenant we basis rent probably our guidance points meaning in XX beginning -- year that typical over of to trending assume year our guidance. of other X.X%, be know, will the in some rent, our XX related I level. X% less. lost basis scope reason lose points. it's issues. Historically, the of rent will would the say terms our I to be at as for the of loss normal, it Normally, be of is we've assumption closer basis this the year, realize that probably or to

unusual regard. so that in nothing And

And that I would already, nothing big of X is of watch credit changed terms you to that there. and the any exited, bankrupt exited feel say if in quantity changes doesn't We've alluded list, not there's the It brewing have but bankruptcy or the were will. bankruptcy like quality tenants -- close.

Beyond So Bed and Bath is gone.

of had our So X there, stores was that X.X% rent. we and

So those are vacancies, that will, new if you will release.

were $XX, mentioned I think foot. square on properties $XX a I've in prior calls, those the rent

a to create So replace. that think challenge something will big we that's

Regal exit It has in list on changed not create There's Rite those still the I believe, won't but And still our has my have revenue AMC recent or And that question mark, in their then drug. have on notably property. opinion, restaurants any -- mark. one, did yesterday. on impact question Cinema bankruptcy, bottom we some Regal line. Aid quarters. But its fridges, notable

keep those And so deal whatever we'll just watching comes them and with up.

It's the of they XX% tenants years, bankruptcy look leases. up that average, assuming as end we our for back on filed interesting, over

even in the the if bankruptcy end lost we But revenue necessarily. for term. get short property So the incremental then, It's rejection that no creates the the the or we TI again, the to next world able to is tenant. back of some the and lease we're potential it, the of the dollars try do re-lease And with vast that recoup to with we majority rent of that not CapEx. little

arena. in in of on the And we're watch so loss good all, we shape think credit kind all pretty rent still

people market, last there X And the forth. acquisition just on just unchanged? compared is for months right, in the ago. right? trying activities needing one, pause ago, doing pipeline capital? and so which to to sale-leaseback of quarter X were obviously the evolving $XXX million X commentary building how some more then get to then just rate today sense just a would of cap Is to who sort helpful. obviously, get months more a there Is X But things distress, call so But -- are this versus be And

bump are and acquisition was to to distressed distressed not stronger as sale-leaseback robust. volume, want -- a We're our do X because X Yes. still Based The today on fairly it. being the it guidance months sale company is we on has pipelines leasebacks ago. than seeing don't market with in the just do to little business

accelerating we as the We're no, they As getting and were picked But second of the results of XX share half as good of second second range last the quarter. over forward. at far definitely, not year. points deals. far basis the feel points in the stabilize, of we're as NNN shape the in our quarter quarter about starting the rates, pipeline. it's in XX to quarter, to its going we kind acquisitions fair rate But first cap over XX good our third on hitting basis up

Thank you.

time. have questions in further no We queue this at

comments. back to will any Mr. So Horn it I closing hand for

XXXX XXXX. and deliver in well NNN, stated, in I remainder we're good shape position of As the ourselves to

to for this at Enjoy forward the seeing as summer day. season. morning. look down, we thanks joining you the of person So conference us winds many And fall in

participation. your you for and Thank you time. this your disconnect We you. thank concludes This may at today's lines conference,