LXP Industrial Trust (LXP) Q4 2022 Earnings Call Transcript

LXP Industrial Trust (NYSE:LXP) Q4 2022 Earnings Conference Call February 16, 2023 8:30 AM ET

Company Participants

Will Eglin - Chairman, Chief Executive Officer, President

Beth Boulerice - Chief Financial Officer

Brendan Mullinix - Executive Vice President, Chief Investment Officer

James Dudley - Executive Vice President, Director of Asset Management

Heather Gentry - Senior Vice President, Investor Relations

Conference Call Participants

Anthony Paolone - JP Morgan

Todd Thomas - Keybanc Capital Markets

Jon Petersen - Jefferies

John Massocca - Ladenburg Thalmann

Operator

Good greeting ladies and gentlemen and invited to nan LXP Industrial Trust 4th fourth 2022 net telephone and webcast.

At this time, each participants are successful a listen-only mode, and please beryllium advised that this telephone is being recorded. After nan speakers’ prepared remarks, location will beryllium a mobility and reply session. If you would for illustration to inquire a mobility during this time, simply property star, 1 connected your telephone keypad. If you would for illustration to retreat your question, property star, 1 again.

Now I’d for illustration to move nan telephone complete to Ms. Heather Gentry, Senior Vice President of Investor Relations. Ms. Gentry, please spell ahead.

Heather Gentry

Thank you Operator. Welcome to LXP Industrial Trust’s 4th fourth 2022 net convention telephone and webcast. The net merchandise was distributed this greeting and some nan merchandise and quarterly supplemental are disposable connected our website successful nan Investors conception and will beryllium furnished to nan SEC connected a Form 8-K.

Certain statements made during this convention telephone regarding early events and expected results whitethorn represent forward-looking statements wrong nan meaning of nan Private Securities Litigation Reform Act of 1995. LXP believes that these statements are based connected reasonable assumptions, nevertheless definite factors and risks, including those included successful today’s net property merchandise and those described successful reports that LXP files pinch nan SEC from clip to time, could origin LXP’s existent results to disagree materially from those expressed aliases implied by specified statements. Except arsenic required by law, LXP does not undertake a work to update immoderate forward-looking statement.

In nan net property merchandise and quarterly supplemental disclosure package, LXP has reconciled each non-GAAP financial measures to nan astir straight comparable GAAP measure. Any references successful these documents to adjusted institution FFO mention to adjusted institution costs from operations disposable to each equity holders and portion holders connected a afloat diluted basis. Operating capacity measures of an individual finance are not intended to beryllium viewed arsenic presenting a numerical measurement of LXP’s humanities aliases early financial performance, financial position aliases rate flows.

On today’s call, Will Eglin, Chairman and CEO, Beth Boulerice, CFO, Brendan Mullinix, CIO, and Executive Vice President James Dudley will supply a caller business update and commentary connected 4th fourth results.

I will now move nan telephone complete to Will.

Will Eglin

Thanks Heather and bully greeting everyone. Our 4th fourth operating capacity was bully crossed nan committee pinch notable accomplishments successful leasing, dispositions, and equilibrium expanse management.

We proceed to person tremendous occurrence connected nan leasing front, raising business guidelines and rate guidelines rents connected renewals astir 38% and 43% successful nan 4th fourth respectively. Industrial leasing measurement was exceptionally beardown successful 2022 pinch 4 cardinal quadrate feet leased during nan twelvemonth astatine guidelines and rate guidelines rental increases of astir 31% and 26% respectively. We are presently successful discussions pinch galore of our tenants whose leases expire done 2024, which we judge bodes good for beardown tenant retention pinch nan opportunity to raise rents arsenic statement rents proceed to beryllium good beneath market.

Moving forward, a slowdown successful wide leasing that is much successful statement pinch pre-pandemic levels is expected, but we judge nan prospects for continued business rent maturation are bully arsenic wide vacancy remains low.

We realized astir $50 cardinal of proceeds from dispositions successful nan 4th quarter, including nan waste of 2 business properties. These business income are accordant pinch our strategy to dispose of assets successful non-core markets that do not fresh our maturation objectives. Further, we continued to shrink our agency associated task during nan quarter, disposing of 3 assets weighted astatine astir $37 million. Subsequent to 4th end, we sold different associated task plus successful Houston for $82 million, which generated nett proceeds of astir $8 cardinal for our 25% interest.

Total 2022 consolidated disposition measurement of astir $197 cardinal astatine charismatic 5.6% GAAP and rate headdress rates produced favorable pricing successful a twelvemonth wherever headdress rates increased. Our 2023 disposition scheme contemplates trading for waste up to 7 business assets successful definite non-core markets, including St. Louis, Detroit, Cleveland, Kansas City, and Philadelphia.

Continued challenges successful nan agency income marketplace delayed nan disposition of respective consolidated agency assets primitively slated for waste successful nan 4th quarter. While we still intend to dispose of nan remaining 4 agency assets, excluding our Palo Alto property, arsenic soon arsenic practicable, this portfolio continues to nutrient beardown rate travel pinch annualized NOI of astir $11 million.

Moving to nan equilibrium sheet, astatine twelvemonth extremity we settled our $16 cardinal communal stock guardant equity transaction utilizing nan proceeds to repay amounts outstanding connected our $600 cardinal revolver, which was afloat disposable astatine twelvemonth end. When adjusted for 2022 stock repurchases, we issued a nett 3.9 cardinal communal shares astatine $13.53 per communal stock successful relationship pinch that transaction. Leverage declined from 7.1 times astatine September 30 to 6.4 clip nett indebtedness to adjusted EBITDA astatine twelvemonth end, good wrong our existent target leverage scope of six to 7 times.

As we look up to 2023, we expect improvement walk of astir $125 cardinal to beryllium funded pinch waste proceeds, rate connected hand, and statement draws. We whitethorn utilize immoderate excess superior to trim leverage further while maintaining immoderate capacity to deploy superior into our onshore slope and different investments, should charismatic opportunities arise.

Finally, we’re excited to make further advancement pinch our ESG programme successful 2023 arsenic we hole to taxable to GRESB for nan 3rd time, heighten our model transparency, grow our resiliency reporting, and instrumentality a decarbonization program. We besides look guardant to sharing much specifications successful our 2022 firm work report, which we will people later this year.

With that, I’ll move nan telephone complete to Brendan to talk investments successful much detail.

Brendan Mullinix

Thanks Will.

During nan quarter, we funded astir $53 cardinal successful our six ongoing improvement projects. We completed building of our antecedently leased installation successful Greenville-Spartanburg successful nan 4th fourth pinch nan tenant occupying nan 800,000 quadrate ft installation upon nan building’s completion. The larger of nan 2 remaining properties successful this task is expected to beryllium completed successful nan first quarter, and nan smaller spot is slated for transportation successful nan 2nd quarter. Total 2022 improvement walk was astir $255 cardinal for nan six ongoing projects and nan stabilized Greenville-Spartanburg spot I conscionable mentioned.

Moving to Phoenix, we expect completion of nan lease installation and our spec improvement task later this quarter, pinch nan 2nd installation apt finishing successful nan 2nd quarter. Also successful Phoenix, arsenic discussed past quarter, we crushed leased 100 acres astatine our 420 acre Woolf Farms onshore parcel to a information halfway personification for 20 years. The first yearly crushed rent of $5.2 cardinal pinch 4% yearly rental increases is simply a awesome result that is expected to nutrient an first 5.2% yearly return connected our original acquisition price.

Subsequent to 4th end, our Ocala and Indianapolis projects reached important completion and we expect our South Shore, Florida task to complete successful nan 2nd quarter. Lastly, successful Dallas we expect closing connected a $15 cardinal guardant acquisition of a 124,000 quadrate ft spec built building successful nan first half of 2023. The task is being developed by nan aforesaid developer who completed our [indiscernible] installation successful Dallas, which is adjacent to this project. We are actively trading nan abstraction for lease and person recovered tenant request to beryllium beardown for this size facility. Additionally, we proceed to spot progressive tenant inquiries astatine each of our ongoing improvement projects.

With that, I’ll move nan telephone complete to James to talk leasing.

James Dudley

Thanks Brendan. Rent maturation successful our target markets grew connected mean astir 20% year-over-year done nan 4th quarter, while mean vacancy declined marginally. Compared to nan 3rd quarter, this represents a flimsy summation successful our target markets’ rent maturation contempt a broader humble leasing deceleration.

As of nan 4th fourth for leases expiring done 2028, we estimate our business portfolio’s in-place rents to beryllium astir 21% beneath market, pinch these in-place rents forecasted to turn astir 34% connected mean aliases 24% nett of contractual rent escalations based connected independent brokers’ estimates. Forecasted rent maturation is apt to beryllium slower going forward, which is much successful statement pinch nan leasing situation pre-pandemic, arsenic Will mentioned. We judge our mark-to-market opportunity remains beardown for value assets successful cardinal markets pinch entree to an charismatic tenant base.

Our business portfolio grew to 99.5% leased astatine twelvemonth end, a flimsy summation erstwhile compared to nan 3rd quarter. There are only 2 remaining 2023 lease expirations which are presently being addressed. Year to date, we person astir 6 cardinal quadrate feet of business abstraction expiring successful 2024, which provides america pinch a awesome opportunity to summation rents. We estimate 2024 expiring rents to summation 20% to 30% based connected existent negotiations and 3rd statement agent estimates.

During nan quarter, we extended nan 2023 lease expiration of our 510,000 quadrate ft business installation successful Dallas for 3 years pinch 4% yearly bumps, for an summation of 43% complete nan anterior term’s rate guidelines rent. Additionally, we leased nan remaining 81,000 quadrate feet astatine our business installation successful Grier, South Carolina for conscionable complete 5 years. Annual rental bumps of 4% and a starting rent of 17% supra our original underwriting assumptions is simply a awesome result for this space.

Subsequent to 4th end, nan tenant successful our 742,000 quadrate ft business installation successful Indianapolis exercised their fixed complaint action to renew for 5 years, expanding nan yearly rent 2% per twelvemonth for nan extended term. The renewal extends nan lease done January of 2029.

With that, I’ll move nan telephone complete to Beth to talk financial results.

Beth Boulerice

Thanks James.

Revenue successful nan 4th fourth was astir $81 cardinal pinch spot operating expenses of astir $13 million, 90% of which was attributable to tenant reimbursements. Adjusted institution FFO for nan 4th of $0.17 per diluted communal share, aliases astir $48 cardinal brought our 2022 adjusted institution FFO to $0.67 per diluted communal share.

Fourth 4th G&A was astir $10 cardinal pinch afloat twelvemonth G&A of astir $36 million, excluding definite advisory costs. We expect 2023 G&A to beryllium wrong a scope of $35 cardinal to $37 million.

During nan quarter, we recognized $37.7 cardinal of trading profit from income type leases. This chiefly related to nan nickname of an finance successful a income type lease for nan 100 acre crushed lease successful Phoenix that Brendan mentioned. This crushed lease is classified arsenic a income type lease versus an operating lease nether GAAP. In accordance pinch nan guidance, we derecognized nan land, measured nan finance astatine adjacent value, and recorded an finance successful a income type lease connected nan equilibrium expanse and recognized a time 1 gain.

This morning, we announced 2023 adjusted institution FFO guidance wrong a scope of $0.66 to $0.70 per diluted communal share. This guidance considers nan timing of improvement lease-up and income volume, amongst different items discussed connected today’s call. Our aforesaid shop business portfolio was 99.8% leased astatine twelvemonth extremity pinch aforesaid shop business NOI maturation of 6.7% quarter-over-quarter and 5.3% for 2022. We expect our 2023 business aforesaid shop NOI maturation will beryllium successful nan 4% to 5% range. At 4th end, astir 96% of our business portfolio leases had escalations pinch an mean yearly complaint of 2.5%.

We settled our guardant communal stock income statement successful December pinch aggregate nett proceeds from this transaction of $183.4 million. As of December 31, 2022, we had afloat readiness connected our $600 cardinal unsecured revolving in installments facility.

We proceed to acquisition minimal vulnerability to rising liking rates. At 4th end, consolidated indebtedness outstanding was astir $1.5 cardinal pinch 91.4% of this indebtedness fixed. Our full consolidated indebtedness had a weighted mean liking complaint of 3.2% and a weighted mean word to maturity of 6.5 years astatine 4th end.

Finally, astatine twelvemonth extremity our unencumbered NOI remains favorable astatine complete 93% of our full NOI.

With that, I’ll move nan telephone backmost complete to Will.

Will Eglin

Thanks Beth.

I will now move nan telephone complete to nan Operator, who will behaviour nan mobility and reply information of this call.

Question-and-Answer Session

Operator

[Indiscernible] your statement is open, sir.

Anthony Paolone

Oh, okay. Thanks, bully morning.

First question, tin you supply immoderate colour connected what nan output connected nan improvement delivered successful nan 4th quarter, possibly nett of immoderate possibly promote, and besides possibly conscionable springiness america an update connected wherever you deliberation nan wide pipeline arsenic it stands coming will extremity up being. That would beryllium great.

Brendan Mullinix

Okay, sure. It’s Brendan.

The improvement output connected nan stabilized plus that delivered connected a rate ground is successful nan mid-5 range, 5.5. Just arsenic a refresher, we are processing that successful a associated task pinch a merchant builder partner. Promote, if any, will beryllium calculated erstwhile nan 3 buildings are 80% stabilized, but that is nan improvement yield.

With respect to nan equilibrium of nan portfolio, we’ve guided to akin yields successful nan debased to mid-5s. With that said, location whitethorn beryllium opportunities to transcend that, conscionable based connected rent maturation that’s occurred during nan improvement process and successful a rising headdress complaint environment, nan promotes would beryllium expected, each different things being equal, to nan little original summation [indiscernible] beforehand yields.

Anthony Paolone

Okay, sewage it. Then connected nan disposition side, you mentioned trading 7 business properties this year. Any bid of magnitude? I don’t cognize if you mentioned nan dollar amounts aliases not.

James Dudley

We did it. The NOI from that [indiscernible] was astir $18.3 million, Tony, truthful we want to person capable assets successful nan marketplace to screen our improvement walk this year, and hopefully we tin support moving our leverage down a small spot too. But I deliberation we person to hold and spot successful position of giving guidance to valuation, and I would expect those dispositions to astir apt beryllium back-loaded arsenic nan twelvemonth progresses.

Anthony Paolone

Okay, and past I conjecture my past 1 possibly relates to still dispositions. You mentioned nan tougher agency situation successful position of sales, but I deliberation 1701 was going to a condo converter aliases a resi converter of immoderate sort. Did that autumn out, aliases is it conscionable taking longer? What’s happening there?

Will Eglin

I would qualify that transaction arsenic having fallen out, contempt media coverage, truthful that plus is afloat leased and providing a batch of rate travel to us, which we’re happy to collect, and we’re surely unfastened to--you know, if that transaction comes backmost together, which is surely possible, we’re happy to transact or, arsenic I said, conscionable proceed to cod nan rent and spot what different options are disposable to us.

Anthony Paolone

Okay, great. Thank you.

Brendan Mullinix

Thanks Tony.

Operator

Thank you, and conscionable a reminder, ladies and gentlemen, star-one please for immoderate questions.

We spell adjacent now to Todd Thomas of Keybanc Capital Markets.

Todd Thomas

Hi, thanks. Good morning.

Just pursuing up first, I conjecture connected dispositions, tin you stock nan headdress complaint connected nan Houston agency disposition that was completed aft nan extremity of nan year, and past conscionable astir immoderate of nan delays that you mentioned regarding further agency plus sales, recognize nan marketplace location is simply a small spot fluid, but tin you conscionable possibly supply america pinch an update connected nan timeline much mostly for further agency plus sales? Just looking for a spot much colour there, perhaps. That would beryllium helpful.

Beth Boulerice

Hey Todd, it’s Beth. On nan Houston sale, nan headdress complaint location was 7.9, and that’s some rate and GAAP headdress complaint connected that one. We’re moving nan sale. In this environment, it’s tougher than we had anticipated. We had hoped to beryllium retired by nan extremity of 2022, but we’re hopeful to make advancement this twelvemonth pinch nan remaining 4 that we have.

Todd Thomas

Okay, and past pinch regards to nan $11 cardinal of yearly NOI connected those agency assets, I recognize that you don’t person immoderate lease rotation successful ’23. Are you expecting NOI--any alteration successful NOI successful that bucket of assets passim nan equilibrium of nan full period, aliases do you expect that to beryllium comparatively steady?

Beth Boulerice

It’s comparatively dependable for nan twelvemonth if they’re not sold, truthful arsenic they get sold, that number will travel down.

Todd Thomas

Sure, right. No, understood. Okay.

Then complete to nan development, tin you conscionable talk a small spot astir nan request for nan assets that are--you know, nan improvement assets, they’re each expected to beryllium benignant of completed present complete nan adjacent mates of quarters. I’m conscionable wondering if you could talk a small spot astir nan gait of leasing and nan timeline for rent commencement and conversions to nan operating portfolio.

James Dudley

Sure, this is James. It’s a small spot of a mixed container by market. The velocity successful Phoenix is highly strong. I deliberation we expect having a leasing result location successful nan reasonably adjacent term. The Columbus plus besides has rather a spot of activity. The different assets are a small spot slower. That’s not to opportunity that location isn’t a agelong pipeline of imaginable tenants successful nan market. I deliberation nan awesome alteration that we’ve seen successful nan marketplace precocious is conscionable location was a feeding frenzy successful ’21 and nan opening of past twelvemonth for tenants concerned astir not having space, and that gait has slowed immoderate and it seems to beryllium a small spot much methodical, truthful location continues to beryllium a batch of interest, it’s conscionable a small spot slower moving.

I deliberation mostly crossed nan board, it whitethorn takes america a small spot longer, location whitethorn beryllium a six to 12-month downtime connected immoderate of nan assets, but expect to person a mates of affirmative outcomes connected nan 2 assets I mentioned, hopefully overmuch sooner than that.

Todd Thomas

Okay, truthful those two, we mightiness expect to spot immoderate NOI travel online successful ’23, but for nan equilibrium of nan portfolio, it sounds for illustration it would beryllium later ’23 aliases into ’24?

James Dudley

I deliberation that’s a bully generalization.

Todd Thomas

Okay. All right, great. Thank you.

Operator

Thank you Mr. Thomas. Ladies and gentlemen, conscionable a speedy reminder, star, 1 please for immoderate questions.

We’ll spell adjacent now to Jon Petersen astatine Jefferies.

Jon Petersen

Great, thanks. Maybe connected nan stock buybacks, you guys did a small spot successful nan 4th quarter. Can you talk to america astir nan determination making location connected erstwhile you propulsion nan trigger connected buybacks?

Will Eglin

Sure Jon. It really reflects our position of NAV much than thing else, but we’ve besides wanted to support an oculus connected our leverage and person a scheme wide for nan buyback to beryllium leverage neutral, truthful having that guardant equity transaction disposable to america provided america pinch immoderate elasticity astir nan buyback past year, and besides nan opportunity to commencement to bring our leverage backmost down.

We did bargain a small spot of banal astatine a debased value astatine nan opening of nan quarter, but since past nan stock value has been grinding steadily higher and we haven’t been chasing nan stock value arsenic nan marketplace has recovered.

Jon Petersen

Got it, each right. That’s helpful.

Then I guess, wherever are you seeing backstage marketplace headdress rates move to, possibly for Brendan? I deliberation nan past clip we said past quarter, it surely seemed for illustration you guys consciousness you’re getting amended returns connected improvement than acquisitions, but pinch headdress rates rising, what are you guys looking for successful position of headdress rates to, I guess, jump backmost into nan acquisition marketplace and position that arsenic much attractive, and conscionable astatine a precocious level wherever person you seen those headdress rates move to?

Brendan Mullinix

Yes, I’ll opportunity first that we’re still very overmuch successful a play of value discovery, truthful it’s difficult to generalize astir headdress rates. What different group person said earlier and others person commented on, astir apt nan biggest facet is nan mark-to-market opportunity, truthful nan shorter nan lease and nan amended nan mark-to-market opportunity, you’re going to spot a smaller effect connected headdress rates comparative to wherever we were before, contempt liking rates.

Prior to nan move-in rates, we talked astir crossed our much superior markets to immoderate of nan yieldier ones, nan marketplace being benignant of successful nan debased 3s to 4s, and I deliberation coming it’s benignant of successful nan 4s and 5s, if that’s helpful. But again, it’s difficult to beryllium excessively specific. The little yields would beryllium nan much successful that range, nan much superior markets, and each 4 alternatively a very speedy mark-to-market opportunity.

Jon Petersen

Right, okay. Yes, that makes sense. Then conscionable a constituent of explanation - connected nan ’24 maturities, you said a 20% to 30% summation is expected. Is that connected a rate aliases a GAAP basis, and what benignant of marketplace rent maturation are you expecting betwixt now and past to guidelines those assumptions on?

James Dudley

Yes, that’s connected a rate basis, and that benignant of includes escalations aliases marketplace rent maturation that’s connected mean astatine 6.5% for ’23 and 4.2% for ’24.

Jon Petersen

Okay. All right, that’s helpful. That’s each for me, thanks.

Operator

Thank you Mr. Petersen. Again ladies and gentlemen, conscionable a last reminder today, star, 1 please for immoderate further questions. We’ll region for conscionable a moment.

We person a mobility now from John Massocca astatine Ladenburg Thalmann.

John Massocca

Good morning. You benignant of mentioned connected nan disposition broadside of things, you’re looking to extracurricular of a mates of markets. I conjecture maybe, wherever benignant of--just reasoning astir geography, nan halfway markets you spot successful nan portfolio coming and possibly what makes those charismatic comparative to either benignant of larger gateway markets aliases immoderate of nan markets you’re looking to exit?

Will Eglin

Yes, nan ones that we’ve identified arsenic imaginable disposition exits are markets wherever we only person 1 aliases 2 assets, and wherever we haven’t been adding successful our astir caller portfolio repositioning. As an example, we mentioned a mates assets successful Detroit that we were looking astatine exiting, 1 of which closed. The superior differentiators would conscionable beryllium wherever we spot nan astir imaginable for NOI growth, and that’s wherever we’re focusing successful position of markets, those markets that person nan champion entree to increasing populations and beardown logistics halfway attributes.

John Massocca

Then I conjecture maybe, is location a differential successful nan headdress complaint situation betwixt immoderate of those markets you’re exiting versus areas wherever you’re either doing improvement aliases possibly moreover longer word charismatic from an acquisition perspective?

Will Eglin

Yes, we would expect that exiting a smaller marketplace pinch little favorable rent maturation prospects would [indiscernible] successful nan marketplace astatine higher yields, but we do deliberation it’s important to proceed to attraction nan portfolio successful wherever we spot nan strongest maturation opportunities.

John Massocca

Any benignant of brackets astir wherever that headdress complaint differential is, or--?

Will Eglin

I deliberation that it’s--there successful particular, I mentioned earlier that we’re--there’s conscionable been truthful fewer transactions successful nan market, it’s really difficult to peg it. I deliberation that that benignant of divergence betwixt markets is peculiarly tricky correct now. I deliberation it’s a small early.

As we activity connected reasoning astir nan disposition plan, we’ll springiness further guidance.

John Massocca

Okay, that’s fair. That’s it for me. Thank you very much.

Operator

Thank you. We’ll return a follow-up mobility now from Anthony Paolone astatine JP Morgan.

Anthony Paolone

Thanks. Just 1 follow-up point connected nan information halfway lease, nan onshore lease. Prior to that, was that onshore basis, were you capitalizing liking against that, aliases was that just--is this conscionable purely incremental successful position of nan rent?

Beth Boulerice

It’s nan rent. It wasn’t--it was conscionable successful onshore before, location was nary rent coming successful before, immoderate benignant of incoming.

Anthony Paolone

Okay, and so--great, truthful past it sounds like, particularly pinch nan GAAP accounting connected income type lease aliases finance type lease, I conjecture it is, it sounds for illustration that adds astir apt a mates pennies to earnings? Is that fair?

Beth Boulerice

Right, yes. On a rate basis, it’s going to make $5.2 cardinal a year, and connected a GAAP ground for 2023, it’s going to make $7.4 million.

Anthony Paolone

Okay, sewage it. Thank you.

Operator

Thank you. Ladies and gentlemen, it appears we person nary further questions this morning. Mr. Eglin, I’d for illustration to move nan telephone backmost to you for immoderate closing comments.

Will Eglin

We admit everyone joining america this morning, and please don’t hesitate to sojourn our website aliases interaction Heather Gentry if you would for illustration to person our quarterly materials, and successful addition, arsenic always, you whitethorn interaction maine aliases nan different members of elder guidance pinch immoderate questions.

Thanks again.

Operator

Thank you Mr. Eglin. Ladies and gentlemen, that does reason nan LXP Industrial Trust 4th fourth 2022 net telephone and webcast. We’d for illustration to convey you each truthful overmuch for joining america and wish you each a awesome day. Goodbye.