Baltic Horizon Fund (NHCBHFFT) Earnings Call Transcript & Summary

Good afternoon. I think we are online. So let us start this webinar. This webinar will be held in English as we have an international investor base. And this webinar is performed together with the Annual General Meeting that regularly takes place in the second half of May of every year. So to follow the procedure, my name is Tarmo Karotam, and I would like to propose for me to be the Chairman of this meeting and our colleague, [indiscernible], to be the recording secretary. With many investors joining over webinar, we have received power of attorneys to represent some of the investors. We have also 2 investors present in the meeting. In total, for this meeting, we have received a presence of investors holding, in total, 14,009,153 units, which represents approximately 12.35% of all the votes. And for this meeting to have 2 parts on the agenda, first one being the update on the funds and quarterly results, but also the latest updates on the impact of the pandemic and the economic implications. We have second thing on the agenda, which is to discuss and decide on the issue of new units during 2020. Unfortunately, we have to acknowledge that, as of today, we don't have a quorum present in this meeting to take any decisions in regards to the second point on the agenda. So in accordance to the Fund Rules Section 10.11, we are not able to adopt any resolutions in regards to the second point of the agenda. Therefore, at this point, I will continue with the first point of the agenda, which is the quarterly report review and as always, welcome any questions in this regard during the presentation or at the end of the presentation. We estimate the meeting to last approximately 1 hour, 45 minutes presentation and then some time for questions. So let me then start. I will go straight into the situation overview of the Baltic states considering the pandemic that started in March. And here are some just the facts just to put things in perspective that the quarantine period, which also impacted our retail centers very directly requiring 3 of them to be closed, started in the middle of March. And in Lithuania, the government was the quickest to act so that in mid-March the shopping centers were closed overnight. The quarantine period or, let's say, the special circumstances are only now to find its end. As of end of April, the shopping centers in Lithuania were allowed to open again. In Latvia, the dates are similar. In Latvia, the shopping centers were only closed during the quarantine period over the weekends. And finally, also, the weekends are now allowed to now to be open. And in Estonia, the shopping centers opened up beginning of May, the second half of -- second week of May. But resulting for a 6 months lockdown -- a 6-week lockdown of our 3 retail assets. Yes, there are some rent mechanisms now being discussed and in place. So let me get into that as well right away. In regards to just to show you the figures, once again, in Lithuania, what we saw was that the shopping centers that we own in the central cities that were required to be closed, the footfalls and turnovers dropped around 70%, 80% in April, and we also see that after opening in the beginning of May, the recovery has started, but also the recovery so far over the past few weeks has been quite gradual. In regards to our neighborhood centers such as Pirita center, Sky supermarket in Riga and Domus Pro in Vilnius, the situation is much better. And because of the food stores were allowed to be open, the pharmacies and as well the restaurants that could produce food takeaways. Also in our larger shopping centers in Tallinn, Riga, Vilnius, our food stores and pharmacies and in many cases, also pet stores were allowed to be opened. When it comes to government compensation, I would say it is important that the government supports not only the economy, but real estate owners in a very rational way because this situation for all property owners is quite unexpected. And we have just followed orders of the government and of course, as a diligent landlord tried to do our best to contribute to the -- to limiting the spread of this virus throughout end of Q1, but also now April. So I think overall, the recovery or the impact of the virus and the length of the lockdown followed rather positive scenario because there were chances that the lockdown may just be prolonged to several months. So -- but when it comes to then direct support for retailers that also were forced to close their stores, there was a program put in place in Lithuania, where the potential compensation of rent during the quarantine period is approximately up to 80%, considering also the contribution from the landlord, and lasts technically also up to 2 months after the stop of the lockdown. So up until June -- July. In Estonia, the response from the government was more limited towards only 1 month for June. So together with tenants, we'll have to view that how we support this from our side in a different way. In Latvia, the government support measures directly to the retailers is still under discussion. But as of last week, the request went to the government up to 40% of rental coverage for the quarantine period. And over the next few weeks, the government will discuss that. So why I have emphasized this already now at the beginning of this presentation is that the government support is crucial here in order to support the retailers and especially the ones that will survive this -- the shock, I would say, of 6 weeks being closed down. The situation in the Baltics, of course, is not rosy. And when an economy is locked down, then if you switch it back on, it doesn't happen overnight. And there are several calculations now about how much the Baltic economies will drop this year. And the numbers, of course, are not final, but the expectations, given the current recovery and then the start of opening of the economies now in May, June is still somewhere below minus 10%. So it remains to be seen if that is somewhat higher or somewhat lower, but that's, I think, the scenario that we are also considering at this point. And unemployment is likely to increase also to the levels of 8% to 10% across the Baltics. It is not a secret that hardest hit is hospitality sector, business hotels, especially in city centers. And also the restaurant sector and all the related sectors -- service sectors that were really dependent on tourism. At the same time, I think the Baltic governments have never been in a position where they could actually consider various resources for aiding the recovery of the economies, in general. And one thing is, of course, reserves that have been building up over the past 10 years, but also the other topic, which is highly now debated and discussed is the ability to lend money in case necessary at negative interest rates to support the quicker recovery of the economies. Of course, the question is that where that money will be going, and I think that's, of course, a very important discussion happening now at the government levels. But once again, if we compare ourselves to the previous crisis, then the ability to at least consider supporting the recovery is much better. Of course, the end result, well, remains to be seen. Now based on all of this, I would like to go into our portfolio, which I think is the topic of the day. And Baltic Horizon Fund as of end of Q1 owned 16 properties, and you can see the breakdown is relatively divided between the countries and segments. In regards to Q1 results itself before the corona epidemic started, it was one of the best quarters the fund had ever had. And of course, that's now history, and we have to look into recovery, specifically talking about a few of our retail assets. To put it again now into perspective, in regards to Baltic Horizon Fund and of course, we are looking at it from a portfolio perspective that we have about 75% of our assets in Riga and Vilnius and about 26% of our assets in Tallinn. In regards to retail and office, it's quite equal. And now I'd like to emphasize the net operating income breakdown when it comes to our offices, it is 49% of total net operating income coming from office segment, then 5% representing the cinema building, 10% representing the neighborhood super markets and about 36% representing the 3 largest -- 3 retail assets that we have in central cities of Tallinn, Riga and Vilnius. So from this point of view, I guess, one could analyze that the most riskiest part of the NOI today is related to the cinema building and then the CBD retail properties, but I will get into details a bit later. From another perspective, looking at our portfolio from the tenants' side, what sort of tenants we have in our portfolio and what's the size of these tenants? And also what -- the analytical side of how much some of these tenants are or could be impacted by this lockdown? Rimi Baltic is a well-known grocery store operating in many of our assets across the Baltic states and they represent 9% of the rental income. Then the State Forestry company in Latvia, 5%; the cinema building, 4%; and many other office tenants, including the Lithuanian Tax Inspectorate in combined approximately 20%. And the remainder of the tenants are less than 1%, representing in total about 60% of our total tenants. Another way how to look at our portfolio is from the segments, from the type of segments. And based on our review, 58% of our rental income comes from private companies, 30% from listed entities -- listed companies on stock exchange and approximately 12% from government-related companies. So generally, we have been quite well diversified when it comes to segments and tenants with our portfolio over the years. Just -- this is a slide just to put us into perspective that our retail assets that we have in our portfolio represent quite a small percentage of the total retail stock that are in the Baltics. This is an example comparing our stock to the larger shopping centers in Tallinn. And in total, Postimaja is about 10,000 square meters in Tallinn. In Riga, the Galerija Centrs is about 20,000. And in Vilnius, shopping center Europa is about 16,000 square meters. So relatively small. But I would say that when you talk about our segments, in general, then the office segment, 49% has remained strong. And even during the quarantine period, the offices were open and yes, many companies used mixed working as -- so did we. But the situation with the office segment hasn't given us any surprises also, I think, considering the type of tenants that we have. And in regards to retail, there has been a lot of now discussions on tenants who are, of course, having issues with their shops being closed down. And it's been quite an active dialogue between the tenants and understanding how the government support works in Tallinn and Vilnius shopping centers. So it's been quite hectic in that way around. And currently, those negotiations are still ongoing. And I think from the Fund's position, it is our internal policy that we are not giving, on average, more than 50% relief to our tenants during the lockdown period because we expect as well that the government and the tenant themselves would contribute to the expenses related to the lockdown period, which now fortunately ended. This slide is, again, an interesting slide just to compare because this is a presentation of also Q1 results, how our portfolio performed during Q1, and these numbers are already somewhat taking in account a few provisions made in Lithuania in the end of March. But generally, the fund had a like-to-like rent increase of approximately 2.8% compared to last quarter. This was due to some indexation of rental contracts based on inflation rates, but also some improvements in occupancies. I think some key percentages here to take away what sort of cost base we have in the fund today? And the fund administration expenses from the net operating income from about 15% of the total income coming in. External interest expenses, mainly meaning the debt cost and the interest payments, but also the bond coupon payments form about 23.9%. So the total of what we consider the majority of our fixed cost is 38.9% of the net operating income. I think considering all the craziness what happened after March and especially April when the lockdown was in full force, lots of questions, lots of uncertainty, the fund remained cash flow positive. We also have a cash buffer that has been there since the end of last year. So generally, the liquidity position of the fund is good. And just to have a few more comparisons of Q1 to the previous levels, our loan-to-value decreased a bit. The interest cost remained the same, about 2.6%. In regards to the dividends, after Q1, of course, it was a very difficult discussion what to do with the dividends, whether to pay based on Q1, as it was a very good quarter, a full dividend or to keep a higher cash buffer. We also discussed potential dividend postponement, but I think what we understand and what we've always had a goal for is that we are a quarterly dividend-paying real estate group, and that's our #1 goal. So yes, it's important to keep a good cash buffer and maybe even increase the cash buffer, but we figured after some discussions also with our internal peers that we should rather decrease the dividend and keep a reserve. And the good thing about Baltic Horizon is that we can pay out a dividend again every quarter. So if there is uncertainty, like there was after quarter 1, we could reserve that dividend for the next quarters to be paid out. And so we will, of course, monitor the situation around the fund in the second quarter and the third quarter and then make final decisions on the dividend payouts at the moment. And as you know, dividend decisions are also published over stock exchange, and they follow a financial calendar that is also available on our website and on the stock exchange. So we will monitor now every, I would say, quarter the situation and then make respective decisions. However, of course, the work around the fund and the tenants is ongoing on a daily basis. So a few more words on the Q1 result itself, that Q1 ended at end of March. Yes, we had a big increase in the fund size. We made 3 acquisitions last year, 2 office buildings in Vilnius and 1 retail center in [ old ] town of Riga. I think it's important to note on this slide that our rental income increased 49%. And yes, we also had some increase in financial income and financial expenses. But administrative expenses were -- had a smaller increase that, for us, shows that the fund, when it has grown, has become also more efficient when it comes to managing the administrative side of this vehicle. And yes, in addition to just growth in rental income by new acquisitions, we had our current properties, last year at the same time and this year in Q1, deliver an income of approximately 2.8% higher. The fund's assets are currently valued at EUR 373 million. And of course, it probably is a question already that what about the valuations of our assets? And it is still quite uncertain situation, and we have spoken also to the valuators and what the valuators are saying is that it is a frozen market. And so far, there hasn't been any transactions during -- notable transactions in the commercial real estate segment, which are -- which can be compared to any of the assets of the large real estate groups working here in the Baltic states. So what is maybe a good thing about now -- about the situation compared to the financial crisis in 2008 and '09 is that there is a lot more equity that is in the system. The banks have been quite conservative when lending. And that means that people that will immediately get into trouble due to their high risk taking, for example, like last -- everybody remembers that last -- during last crisis, you could lend up to 100% from the bank. And now the levels are between 50% and 70%, so much lower. That, for me, indicates that higher sales are not expected really in the short term in the market. And -- but we could see some of that happening in the second half of the year now, depending on how quickly the recovery of the economies and the segments are taking place now. But all in all, about valuations, again, it's quite early to say. In the past, we have -- the main valuations what we have is at the year-end. And these are also important for our creditors, for our banks. But if somebody will ask me a question about valuations, then I would only answer what one of the valuators told me that today I can give one value and in 2 weeks I can give another value. So the volatility could be very high. And the other problem is that there are lack of transactions in the market. So as we have seen, the residential segment has also stood quite solid. The expectations are still very similar on prices what they were before the crisis. Of course, this may change. And I think the monitoring of the summer months, how the economy is doing, but also how some of our segments are doing, how tourism is rebounding, it's key. And as well, shopping centers how they come back from the lockdown, it's important to really monitor that. In Estonia, many of the shopping centers had very surprising results during the first weekends. In Lithuania, the comeback maybe wasn't that fast, but is gradually also improving week by week, whereas we have seen -- but then again, it's too early to say how quick the recovery will be. However, when it comes to hotel segment and the related segments, I think it's also clear for everybody, it could be -- it would be a very tough 12 months, if not 18 months, ahead. So this is a slide on the equity part, and I think nothing really extraordinary here. The occupancies, of course, stayed quite well in Q1 at a similar level, improving even. In Europa, we started to already book some provisions. But once again, current work is now to finalize the discussions with the tenants for -- mainly for April because those -- that was totally locked down for all tenants that how do we manage to support now our tenants during this shock together with the government. I would say also something important from our analysis is that the retail tenants, about 5% are the ones that currently we estimate in our larger shopping centers, not to survive. But it's quite interesting that these are the tenants that were actually already having trouble before the crisis. One way or the other, they were in debts or lagging out the payments. So this is, I think, the current initial impact, I would say. So we estimate it's about 10 tenants across our larger shopping centers, which is about, yes, 5% of our retail center net operating income. Equally important is to, again, look at the financing summary. And we have an LTV of roughly 57%. We don't have any amortization of our bank loans, as many of you know. So we didn't have to ask from the banks any kind of moratorium of amortization. We have continued to pay the interest and we have continued to pay the coupon of our bond investors. And the average cost of debt still remains at 2.6%. And I think most importantly, none of our loans are coming for refinancing this year. Two of our loans, G4S and Sky, smaller loans, are coming for refinancing 2021 the second half. And when it comes to our bond, the term of the bond is 2023. In regards to covenants, generally, we feel quite comfortable. We have, I think, one covenant in one of our retail centers that could potentially be triggered in the third quarter of this year, what we have estimated. But we have been in touch with our financiers and they have agreed to waive any covenant breaches if there will be any. And once again, we are hoping for the best, but preparing for the worst. So we are trying to run all kinds of scenarios. And these scenarios basically mean a much longer lockdown, but also a potential revaluation of our portfolio at year-end. But as I said, we see really one known agreement being riskier because when we issued the bond, we paid down some of the -- actually, all of the loans. So our loan-to-value with the banks is anywhere between 35% to 40% of the value. And yes, we have bonds then in between and bond investors are also the ones that we are -- have been discussing now due to potential other scenarios. And I'm sure many of you have questions about what will happen during this year. The answer is that there are several scenarios. There is a positive scenario that the tourism will start to come back, at least in half. Of course, many Estonian retailers and companies are looking for Finnish tourists to start finding their way to Tallinn again, and same goes for Riga and for Vilnius. And if the government support measures are also strong enough, then, let's say, the impact may be confined mostly to the hotel sector and some service sectors. But if it -- and I think for us, it is also very key to see how the summer months develop in this regard. And then I think the most important -- one of the most important moments this year is probably August-September when people should be returning from their vacations back to the cities with the children going to school, how that will impact shopping, how that will come back as it was before. So yes, there is still quite a bit of ambiguity during the next few months. And of course, the big question is that how much this quarantine period -- lockdown period of 6 weeks -- 6, 7 weeks impacted the behavior of people? And for us, we have, as you know, office segment and retail segment. We see that the impact -- the trends that were already there will be speeding up. For example, in office segment, the flexible working and let's say, 4 days in the office, one day at home will definitely be accommodated by more companies. However, as we have all noticed that, in many cases, to live and work only from home, it is -- it creates additional issues and may as well reduce productivity. In some cases, it's also about adhering and keeping the corporate culture. So it's -- we do estimate in a base scenario that when it comes to large tenants, and -- then, yes, they will look for flexibility, but we estimate the office segment to stay strong. Now neighborhood supermarkets, I think, have performed well everywhere, unexpectedly well even. And it is important to mention that there has been a lot of discussion that what's the percentage of online trading now? And yes, it has increased. But if you have also heard many of the retailers have said that this only forms 5% to 10% of our expected sales. So there are issues with online retailing, especially from the retail side and many retailers were not ready for this in such a massive scale. It's also very costly for retailers to do online shopping or to, let's say, sell goods online because they have to hire additional people. So there's a lot of issues still to be sorted out. But that being said, I think after the lockdown, we saw that when people were rushing back to the shopping centers that it remains a good question how much did it really impact the behavior -- long-term behavior of people? But I guess that still remains to be seen. So this is once again a summary of the loans that we have and first loans to come for refinancing are end of 2021. Everybody is also talking about potential second wave. And I think the virus -- I think many of us understand that the virus, COVID-19, has come to stay. It will not disappear totally. So we have to start to understand how to live with the virus. Of course, for us, owning the 3 shopping centers in central areas, it's important to understand whether this would also mean another lockdown of tourism, another lockdown of shopping centers in general? Currently, what I've understood from the government discussions are that perhaps that's not needed, but then again that remains to be seen. And hopefully we can manage the -- and we have more information to manage the second and potentially the third wave of this virus much better than the first one, which took everybody with a very big surprise. On a more positive note, we have -- we are still ongoing with our expansion project in Vilnius. This was started at the end of last year, and we have secured already 3 tenants. We have continued with the construction and are searching for the anchor tenant, and we understand that office tenants, especially the large tenants, not only in Vilnius, but also in Riga, either they are in the financial sector, in the IT sector or government sector, they have continued their tender processes to search for the new premises. Yes, they are now discussing about a little bit more flexibility. Big question is that whether everybody needs [ assigned ] seats in the office, but definitely, the tender processes from the tenant side to find new office premises has continued throughout the crisis. So that's also an interesting sign that offices sign -- offices are still, of course, very important for companies to continue their efficient growth. Now in regards to this development opportunity or expansion, we are taking it step-by-step, and it's important to also understand what sort of financial needs there are. And so we are committing the capital that we raised last year for this project in very small increments and also monitoring at the same time the development of our fund throughout the crisis and now after the lockdown period. And again, we have remained cash flow positive regardless of our overheads during the lockdown months, and we're expecting some recovery also now in May-June. But it's again too early to say to what extent. So it could be positively surprising, but it could be also the base case scenario that the recovery will be slower. And last but not least, we have prepared a slide for our investors who are also investing on stock exchange just to show how our unit price has traded in the stock market vis-à-vis the general stock exchange developments and vis-à-vis some of our peers. So I think we've done, let's say, above average. Here, you can very easily see that Citycon, who has the most retail assets in their portfolio, in Tallinn, 2 assets have suffered the most because of uncertainty. Then overall, the Tallinn Stock Exchange, the index has developed quite in line with our fund slightly better, so has Stockholm index. And Eastnine, which is a real estate company investing into -- mainly into offices in Vilnius and in Riga but having a bit of a mixed portfolio, has done slightly worse than us in terms of recovery. And EfTEN, our local competitor here, has done the best at this point. I think also important to mention here is that year-to-date turnover of Baltic Horizon Fund on both stock exchanges has been close to EUR 11 million that's 4.5 months. So the trading has been quite active just to compare Merco, one of the construction companies, approximately EUR 8 million turnover and LHV Bank about EUR 17 million turnover, and EfTEN for example, EUR 4.5 million turnover. So we are -- one would probably say that we are quite well-priced to the market because the trading has been active and I would say about 65% of the trading has happened in Tallinn Stock Exchange in euro and about 35% of this year's trading on stock exchange has happened in Stockholm -- in SEK. So that concludes my presentation for the time being. I think I will see if I have any questions here that I could answer.

So the only ongoing construction that we have is Meraki. But as I said, it's in stages and in very small stages that we control this construction also based on the tenant interest. We hope to have some good news there soon. When it comes to our expansion projects, as many of you know, we have also the expansion project of Postimaja and cinema building, which is ongoing. We are aiming to get the final construction permit end of this year. We have already received one construction permit to join the underground parking. So yes, this is in full motion. And we're also fine-tuning the concept now, also trying to understand the impact of this virus. But it is -- I think it's definitely fair to say that we have not stopped that, and we're very much looking forward to, on a long-term basis, having favorable construction prices also early next year to continue with the expansion and build the 2 buildings together. So that's Postimaja and Coca-Cola Plaza. Yes, and on the other hand, the Europa shopping center reconstruction project is also in full-motion. We're exploring their additional building rights as well as the concept change to become more of a service center to the commercial area there to the catchment area, which mainly constitutes of people working in the offices. So yes, these are definitely ongoing, but on a smaller scale. We don't have yet tenants who have gone bankrupt, but we are estimating roughly 10 tenants not to survive this crisis. And well, I guess, I can say that we're really trying to work hard with the tenants that we think that will be -- will have long-term potential, but there are some tenants that we are terminating the lease agreement ourselves in order to protect ourselves as a creditor towards those tenants. So it's very much case-by-case basis that we look at our tenant portfolio. But I think overall, the names that we have in our portfolio are long-term tenants, and we expect them to survive this shock still quite well. No. Cost of debt has increased at this point, and we don't expect it to increase. So as I mentioned, our covenants are quite far away with maybe 1 or 2 exceptions that we are monitoring closely, but they will really be at risk to be triggered probably only at the end of the year. And I think the situation has to go much, much worse for those covenants to be triggered. But the banks are -- they are acting differently also this time around, they -- I think it's publicly known information that they also in their REIT residential sector are mostly very friendly towards the lenders because, again, they don't want to become real estate owners unless they really have to and that's really the worst what they want. So what they have said overall to the market to everybody that we are willing to waive any covenant breaches if there will be any. Once again, we don't see any immediate covenant breaches in our portfolio. And we are continuing to pay our interest as charged, also bond coupon and I think that the cash flows from our portfolio allow us to do that quite comfortably. Time line of the government support measures is probably now -- right now in Lithuania, May-June in Lithuania; June, hopefully, July in Estonia; and summer months in Latvia. Hopefully, there would be support. I think the Q2 report and the Q2 will again be much clearer in this regard, but that's what we foresee for the time being. Acquisition plans. I think we are ready to, of course, monitor the market for opportunities. And like -- the funds like us, we always are talking to investors that are out there and have found the Baltic states an attractive investment location. And I guess it's fair to say that we are continuously discussing with these investors. And a little bit of ambiguity now and uncertainty is something that we hopefully also can capitalize on. And if not through new acquisitions, we will monitor the market closely, I think the second half of the year, but definitely lower construction prices that are estimated for the years to come now. So -- but it's a bit too early to say. I think that if there are any opportunities in the market for new acquisitions, they will be in the second half and not during the summer. A question about cinema. So finally, they are allowed to open as well on 1st of June. That's good news because, first, they were -- discussions were about 1st of July. First of June -- we're meeting them tomorrow to discuss the opening. There is this famous movie coming out in July called, Tenet. I think all Estonians are looking forward to it. Richard Nolan (sic) [ Christopher Nolan ] made some -- made a movie last year in Tallinn. So hopefully, that will be a good boost for the cinema business, but we still expect the recovery in cinema to be relatively slow. Now I think what we -- what I can emphasize here only is that we believe we have the strongest cinema operator in the Baltic states, belongs into a large global group listed in many stock exchanges with capital sources leading to China and their group also owns cinemas across the Nordics, Finland. So I think we definitely have a global player under a solid, let's say, lease agreement. So we hope for a quick recovery for them, and we do as much as we can to support that. There is one more question. There is a good question about, has our view changed midterm when it comes to the segments that we would like to invest in? And our strategy has always been targeting capital cities, Tallinn, Riga, Vilnius, office segment, which has been supported by the growth of international and local tenants, but also supermarkets as part of our retail portfolio and then centrally located shopping centers. So I think the diversification is there. And I think it's a bit, of course, unexpected that the -- let's say, the most affected currently are our 3 centrally located shopping centers. But we definitely see long-term potential on location still. And I think when it comes to logistics, then potentially, yes, but we have been monitoring logistics as well for a long time. In logistics, what could be attractive is brand-new buildings with brand-new tenants because they have the biggest competitive advantage. The risk with logistics has always been that you can copy-paste logistics quite easily. And you don't have really something unique about every logistics center unless it's been absolutely built to modern standards. So potentially, logistics could be something that we would -- could look into more, but it's, I think, a bit too early to say. Hotels is probably -- it's probably difficult to look at right now, even though this could be on our radar screen. I think overall, we still believe in what we are doing in regards to our offices and retail centers. This year, from the beginning of the year, we have been targeting office buildings to strengthen our office segment because ideally, we would like to have our office segment to be higher than just 49%. So we may get there as we have a few targets still in mind. But I think we are not making any major changes in our strategy, at least in short term. And we are rather focusing on completing our expansion projects and take advantage of erecting good quality new buildings for our tenants instead. So lots of expansion projects. And majority of the focus we expect to go there next year when we have all the construction permits hopefully in place. So again, this is a long-term business plan. We look at it with a very long-term perspective. So it's been exactly 1 hour. Once again, this was the first agenda point. The second agenda point, which was discussion and decision about the new unit issues for new and current investors. This year, we did not have a quorum in place. There possibly would be a second general meeting. We have 2 weeks to consider whether to bring that together. So if there is no more questions, then we can declare this meeting closed. In regards to just from a corporate governance point of view, the audits of the fund, both last year and also the Q1, they were all completed. We have almost completed all the audits of our SPVs, our property companies. That is expected also in the next week. And I would have to say that -- there are no surprises there, everything has been in good order despite, of course, the impact of crisis management has increased the workload considerably for our team. But -- as well the depositary bank, Swedbank, has given us a conclusive report on the analysis of our fund as everything being in order. So -- and yes, thank you, Robert, our largest investor from Church Pension Fund also being present in the webinar today. So we hope to give you news about the fund development as soon as we can. And I think next time to look out for some news is, if not sooner than mid-June when we are publishing our end of May NAV, and we will look how much commentaries we can give as well based on our tenant support conclusive measures and hopefully, some positive news about recovery of our retail tenants in the larger shopping centers in the city. So once again, thank you very much from our side. And in case there were questions that you still have, I'm always available over e-mail. If I can answer, I will always answer in as much detail as possible.