Baltic Horizon Fund (NHCBHFFT) Earnings Call Transcript & Summary

Good afternoon, and welcome to the webinar of Baltic Horizon Fund. In this webinar the plan is to give the latest update on the Fund, talk about the first half of 2024. And as well, more importantly, give insight to the expected events in the second half of 2024 and first part of 2025. I'm the Fund manager, Tarmo. [Operator Instructions] I have received several questions for -- I will try to answer them during the presentation. But in case something is left then -- unanswered, then please repeat the question in the question box. As usual, we start with our strategic ambitions and strategic targets, as achieving these targets, we believe that we are able to bridge the gap between the current market price and the NAV. Yes, the market price is at the low end today, we have recognized it and continue to monitor it. The Fund is currently going through a turnaround period. And the NOI is not where it should be, but we are making progress with low occupancies. We're signing leases and we'll also discuss in more detail about it in the next slides. But I think it's continuously important to emphasize that, based on what we plan and estimate, then we are moving towards our EUR 18 million NOI goal and the plan is to achieve basically EUR 1.5 million of NOI monthly. We estimate that this month will be EUR 1.4 million, EUR 1.5 million of NOI to be during -- in the next year, as the tenants that we have signed up are moving into the properties. Our occupancy goal remains at above 90% by end of 2024. There's been a question, is this ambitious enough? Then I think, for 2024, it is, however, of course, the occupancy goal is 100%, eventually. This is clearly our internal discussions. And I can also confirm that in this webinar that 90% is, of course, not satisfactory for us. How we define occupancy is, tenants that are in our properties that are paying rent but also tenants who have signed lease agreements, not NOIs, not other agreements, but lease agreements, taking financial and other commitments to move into the properties, to invest in to fitout. So this is included in the occupancy percentage, just to clarify. When it comes to the LTV target of 50% and lower, this can be achieved by reducing debt overall in the portfolio and improving devaluations and we believe that, despite some devaluations now in midyear, we will recover some of those values by year-end, and definitely keep this as a target and find various ways how to achieve it. We want to have continuously our portfolio certified. We have currently 100% certification. We continue to renew it regularly. We still focus on disposing nonstrategic assets, even though the market is quite shallow today, and we have certain discussions ongoing. And when commercial conditions are acceptable for both sites, then we plan to consider those actions as well. And last but not least, we want to keep our sustainability benchmark at least 4 stars, the maximum is 5, and working towards a maximum target as well. I prepared this slides to perhaps give more of a summarized view of the activities in the Fund over the past 4 quarters. And these are average numbers in many cases and -- but I think it shows a bit of the trend that whatever, for example, in occupancy, we were quite at a low level on an average basis, meaning that on a monthly basis, there are some tenants coming in, some tenants moving out. So -- but gradually, the average occupancy has been increasing. And I will have a separate slide on the occupancy a bit later on. Average rent, we've been able to keep stable. But of course, it's negotiations that are taking place and have been taking effect. So many leases are above the average, but there are some also leases which are below the average, but we keep it definitely a goal to achieve, normal commercial terms for us, meaning that not renting out premises at big discounts. The main discussions with the tenants have been the fitout expenses and who covers those. In many cases, it's the tenant who covers, in some cases, the landlord also partially covers. But I think keeping the average strength in the current market, stable is also good. However, the aim is to sign lease agreements that contribute to the increase of average rent in the future. The NOI of the quarter, we had the lowest point in the last quarters and also end of last year, but are now recovering our NOI over the past months have been around EUR 1 million, EUR 1.1 million. As you know, as I mentioned, the target is EUR 1.4 million, EUR 1.5 million. We still have some occupancies in the properties and have certain also agreements with [SEB]. So we continue to believe that by latest by 2027, we are able to achieve our targets. The debt outstanding has been fluctuating over the past quarters, because at certain moments, when we have refinanced the bond, we have taken cheaper debt on board. So this given moments, let's say, double debt has been recorded. However, by 2024 July, we have also fully repaid back the bond part of the first tranche. So of the EUR 42 million, EUR 20 million has been paid back, EUR 22 million remains outstanding. We continue to monitor this very closely, have a plan to reduce the debt for that outstanding going forward and, of course, focusing on reducing the most expensive debt. Average cost of debt has been increasing. It is also partly because of the -- because of the debt that we have had in the balance sheet to pay down the bond, so more than in normal circumstances, so Euribor has continued to show downward trend slowly. So this is also to show that hopefully, the Euribor level will continue to decrease. And when it comes to the LTV, then it's been mainly affected lately by valuations, it has slightly increased and are above 60% over the past quarters. But as I will show also in the next slide, we do expect some improvements there by year-end. As I think, it's quite understandable is that one thing is the operations of the funds, considering the low occupancy and cost of debt, but there has been a need for fitouts. And here, I've summarized as well the amount of fitouts that have been needed for our CapEx that have been needed for our properties, mostly that have been fitouts for new tenants. Of course, the contribution from the tenant side has been a much larger amount than this one. When we negotiate with tenants, we try to find a good balance between rental level and fitout contribution from the landlord side. So I think so far, we have kept the fitout levels at an optimal level. But going forward, we do need still to plan certain fitouts for the remaining occupancies and we continue to look and search for reasonable financing sources for that. I would like to take a bit more time now on describing the Modern City Life strategy that we have announced, several times we have went through it several times in the presentation. And I think a summary slide is relevant here, to once again go through what do we see as a long-term strategy for Baltic Horizon Fund. And what does Modern City Life strategy actually entailed? So I think to start off with, we do believe in central locations. And despite the COVID and some, let's say, deficiencies in tourism, we believe that central locations will always be popular when we look at regionally and globally, the capital cities of the world, then there's always been value growth on a long-term basis and also footfall on a long-term basis in the centrally located areas. More and more, as you know, the trends are around how to make transportation more pedestrian-friendly, are there enough public transport routes available. And we believe in central locations that is always a topic that is there, that is improved, that is being developed constantly, to help people to visit the central locations, central cities, central part of the cities for local citizens, but also for tourists. And in addition to a car and public transport walkability and bikeability I think, is a key word. If you look at Generation Z, then many times, that's what they prefer. And when we look at what's happening with the development of the capital cities in the Baltics, then this is definitely something that the current heads of the cities are considering and planning, how to make the transportation and tax visibility more diverse. And we -- with our properties, want to be in the heart of these changes. Absolutely a key word is mixed-use communities, mixed-use properties in the portfolio and especially in the central located properties to have multipurpose spaces and we have [Roter], we have Galerija. We have [indiscernible], where we have some fashion. We have fitness. We have entertainment, we have food. And we also hope to -- and working towards to have some working spaces as well. So the trend is definitely in the work-live integration. People are multitasking, more and more are more flexible when working, when doing the daily chores, so we want to be there with our properties to offer those premises and services that are needed for these modern pedestrians, modern citizens, modern tourists. And when it comes to, again, sustainability here, I can emphasize the green leases. We're not at 100% here of all leases, including green clauses yet, but we're getting very close. And green clauses in the lease agreements to help manage and maintain also utilities in proper order, and also focus on having good and healthy environments, people are more conscious by knowing that they need to abide by certain principles. And that is, I think, has been an important element in the work done over the past years with our tenants. And more and more health and wellness facilities such as, fitness and clinics, will be and what has become and will be also bigger part of -- in our portfolio, and I will explain that a bit more in the coming slides. When it comes to the investment potential, and this is the income side mainly is we want to achieve with full occupancy, a rental yield of 7%, at least 7%. We see the potential is there. And when looking into the future, then that's the target we will, on average, have for the coming years. And in terms of value potential through indexation and asset management capabilities, then I think 3% is definitely a good target to have increasing and improving the property values on a long-term basis. Now we have also discussed that Modern City Life strategy can apply mostly to city centers, but it can also apply to certain properties which are in the neighborhoods and in B class locations. So we continue to work on our office buildings, for example, in Upmalas we have introduced also a kindergarten, a gym, where the policies continue to improve the food offering there. So in -- these are sort of mini versions of Modern City Life. And in addition to that, we aim to diversify our portfolio with long-term governmental tenants. We have several of them in the portfolio, as also seen in the next slide. So this is the current list of our top tenants, Rimi as a grocery store in several of our properties. Second tenant is Latvian State Forestry, which we have good relations with, and voiced that they will -- would like to be in the property for a long period of time. Apollo Entertainment Group with the cinema and book stores and restaurants in Coca-Cola Plaza has become a key tenant for us, and is currently moving in and fitout in the ground floor premises, and Latvian police with a long-term lease agreement currently refurbishing their premises. Also Lithuanian tax agency, then a strong company in Arbutus, who is moving into Meraki property, an international furniture manufacturer, very well-standing company. Myfitness to complete the mix. Swedbank and State Information Authority also, to name as key anchor tenants in the portfolio today. I think with Swedbank, I can mention that they will be in our property, Lincona until end of next year. And -- but they have said that they will move into the new headquarters in end of '25, early '26. Now the rest of the tenants, so we expect to stay in our properties on a long-term basis for at least 5 years, many of them 10 years, hopefully longer. Now when it comes to the segment and country allocation, I think we're at the limit to it with Latvia's allocation, we definitely would not like to see a larger occasion to Latvia at the moment. And -- but overall, I think we're quite satisfied with our mix, retail can be considered as well as more as mixed use, because most of the retail allocation is our top central-located assets and we believe in the potential of those and offices are mostly made up of properties that either have governmental tenants or other tenants from the market. Going straight into the -- I think the most important element of our work today is getting our vacancies filled out. And I think, the biggest impact of the last quarter to the occupancy was the LNK lease termination in S27 in LNK property, this agreement was finally terminated. We are having discussions on leasing out S27 now in the coming periods. And we have had several other negotiations and new leases signed actually, in July and August, which are after the reporting period. And with newly signed leases and the LOIs, letter of intents, today the expected occupancy is at 84.7%. So this is just to show as well that the occupancy figure on a monthly basis may be fluctuating. But what we see and we continue to believe that we are showing an increasing trend as well, we believe that at least 90% occupancy of portfolio is achievable by this year. Not all of these tenants are moving in this year, but they will be moving in definitely during the year of 2025, during the 6 to 9 months of next year. So there's been -- there's a lot of work to renew also current tenants. So several leases, approximately 30 have been prolonged. And during this year, 24 new tenants have been attracted to the properties. As well the key names that we can announce as of today are written here and repeated. So the main activity of signing new anchors were in the spring now, also now expected in August and September will be the new wave. So when we look at the period from October last year when we considered our occupancy to be the lowest and we have still increased the occupancy as of end of July by 6,000 square meters in total. Now I have put together this slide, because many things have happened after the reporting period of end of June, and it was also mentioned in the quarterly report that if we have signed all the LOIs or convert them into lease agreements, then we have the expected occupancy to be already at 84.7%. And here I would just like to go through property-by-property, to explain a bit more of the activities and tenant movements in these properties. So as of -- in Lincona, we had our top 10 state information agency expanding. And now the works have started and the additional lease agreement has been signed with them. So they are expanding and taking additional floors, so the occupancy of the portfolio, according to signed lease agreements is around 88%. So the tenant will start paying rent when they've actually moved in now in the coming several weeks. But at the moment, we have recorded an increase in occupancy in Lincona. We continue to search for tenants for the remaining vacancy also in Lincona, especially on the second floor and on the ground floor there. Sky had no major changes over the last quarter, some tenants have been -- a couple of very small tenants have been actually replaced, but overall, the occupancy has remained at the maximum level. In the Cinema building, since we have signed new leases now with Apollo, we have some premises in the minus 1 level, when it comes to storages and dressing rooms and some of its premises also in the top floor, that we have identified could be rented out, and these discussions are ongoing currently. So we hope to achieve the renting out of these small premises also by during this year, around 589 square meters. In Europa, the decrease in occupancy has mainly been because of the change of tenants there. There's been also a question that what exactly will happen on the ground floor of Europa, and we have opened the Alloga food hall, and we see the demand for additional premises, additional food outlets and refurbishment has been in the process. So all the ground floor facing [indiscernible] avenue, that side will be converted into restaurant space with terraces as well opened up to the [indiscernible] side. We have signed leases and LOIs expected completion is the short-term and that's where we also see the occupancy starting to increase in Europa when the tenants have moved in into the premises, which are currently vacant because of the fitout works. There are 2 anchor lease agreements in negotiations as well in Europa. So if we sign those, then estimated occupancy of Europa will reach 98%. In Open Aspiro currently, the anchor tenant there is police and some other smaller office tenants, but we have a kindergarten now moving in and also the gym and have one negotiation for about 1,500 square meters of office space in Upmalas. So these are under these negotiations, column, these are active discussions and that we currently have. So we aim to reach by signing those tenants up and occupancy above 80% in Upmalas in this coming period. In Pirita, we have leased out some smaller vacancies. It remains to be well-performing property actually, and is close to 100% let out. So only a small -- some small premises on the ground floor remain currently vacant. And when it comes to now the third, let's say, property, which needs our major focus is S27. LNK has moved out. So we have signed also an LOI with a new tenant. It cannot be announced yet, but we are moving towards lease agreement negotiations. So we have believed that the lease agreement can be signed. The goal is to sign it during the third quarter. And there is potential also to lease out the whole property by year-end. So that's all I can maybe say at this point, about S27, but there's definitely movement. Vainodes and Postimaja remain fully let. And then the focus is on Galerija Centrus. Currently, the premises that are vacant are part of the third floor and part of the fourth floor. We are in discussions with two tenants. One would -- each which would take on one floor. So if we sign those lease agreements, then the occupancy that we will reach is 95%. So there is a lot of events currently happening and sort of very -- let's say, clear discussions ongoing in these properties. Clearly, the goal is to rent out the vacancy as soon as possible. And at this commercial terms, it is always a discussion on the rent level versus fitout and who will cover the fitout and so forth. In many cases, the tenants are fully willing to cover part of the fitout, in some cases, even the full fitout. But in some cases, we also see more reasonable for us to cover the fitout expenses in order to achieve optimal rental conditions. But again, these events give us belief that 90% plus occupancy by year-end is achievable. And that we're moving towards the target of EUR 1.4 million, EUR 1.5 million of net rental income when all tenants have moved in, in order to achieve the EUR 18 million of NOI. Coming back to the second quarter results. So in overall, in retail, the rental levels like-for-like improved in office and in the cinema property, it worsened because -- mainly because of the vacancies in -- especially in S27. And because Apollo is still moving into the -- or fitting out the premises and currently not yet paying rent. We do expect these numbers to improve in the coming quarters. And this is part of the reasons also, that we had our valuations reviewed, but I have a separate slide for that. So the balance sheet of the Fund remains intact. Yes, the LTV is around 61% today, despite that we have been decreasing the debt that amount, but the aim is to improve valuations by year-end. We have paid the bond of EUR 20 million now fully back to the investors, we have refinanced Meraki with the bank loan, used those proceeds to pay down the bond and also to finance the -- some of the fitouts in Meraki, especially, as tenants are moving in. A separate slide on valuation. So just to explain the reasons why our valuator considered, in some cases, an increase in some cases, a decrease in Lithuania and Estonia, the valuations remained relatively stable. In many cases, in Latvia, especially the WACC, the discount rate was increased. There are not too many transactions in the market. So the -- but the valuators need to benchmark their valuations on something. And as well because of some of the vacancies in Latvian properties, the valuations were affected. As well -- we continue to invest into the fitouts of the properties and valuators have explained that their methodology includes discounted cash flow method, where CapEx and fitout expenses are considered. So in case these fitouts are completed, they expect the values to recover by those amounts. And in -- to current market conditions they have also indicated that certain things such as, expansion potential cannot be considered. Yes, we have discussed these things quite thoroughly with the valuators and have found finally a consensus. But overall, I think we continue to recover the value by year end, by getting the properties filled out. And as well prove to valuators that we can sign certain leases at higher rental levels than the valuators have currently assumed from a conservative perspective. Exit yields have also been, in many cases, increased, which has affected the valuation. So our work continues to be on the tenants, on the lease agreements, and that's something that we can best control. Let's see if the market shows some more transactions now in the coming months, probably it will. So, we continue to discuss these with valuators as well, during the coming months and especially when the final official valuations are coming out at the year-end. Now moving on to the debt side. So currently, we have fulfilled our -- so far, we have just continued to fill all the obligations of -- in front of our debt holders and prolonged many of our loans, including as well Galerija, it was not prolonged at the end of June. But we are in good discussions with our debt holders, and when it comes to the bond, then yes, the EUR 8 million bond is not there anymore. It has been refinanced with the Meraki loan, which is currently not in this list. But overall, yes, we continue to look for ways how to reduce our debt burden and -- especially when it comes to the most expensive debt that we have. Our hedges are expiring during this year. And some of the caps we still have until next year by 2025. We are looking again into the market, whether new hedges would be reasonable to assume in order to immediately improve our debt cash flow, debt service coverage ratios and our cost of debt. So that, I think, has been a change compared to the last quarters. We're evaluating the reasonability of this. So overall, yes, the cost of debt is high and it can remain high only for a limited period of time. And we have a plan how to reduce the debt. And at the same time, improving the income of the Fund also helps greatly. So as a summary, these are the simple and clear goals that we have for us to improve the cash flows of the Fund. And currently, we are in a challenging moment, where our income has not yet picked up. It's around EUR 1.1 million in terms of NOI. Many of our tenants, including Narvotas and Apollo and several other tenants are expected to move in over the next 3 to 6 -- and, let's say, 6 to 12 months. So we expect, and I think it's also a reasonable expectation of the investors, that the NOI will continue to slightly and gradually increase now over the coming quarters. Now we have discussed the situation and the plans with the investor base, and for us to quickly increase the occupancy then we have discussed that it would be reasonable to approach investors for a capital injection. We have received in the 6 August general meeting and approval in order to move forward with the idea. So the management currently has the mandate to increase slightly the capital base of the Fund. And what I can say is that, if we complete the private placement successfully, then we are confident that we will reach our goals by next year, including all the fitouts completed, as well lowering the cost of debt and debt amounts. And at the same time, we are also refinancing still some of our bank loans, that are more optimal terms. Again, in order to have better amortization schedules and in order to reduce some amortizations or potentially also the bond further. So this is definitely also on the discussions. And I think last but not least, we are in a market to sell potentially one or two of our nonstrategic assets. So these discussions are also ongoing. So the key focus right now is definitely on cash flows. As one can imagine, on getting the tenants into the properties and improving terms with our debt holders. So I think, the work has definitely got out for us in our estimations and our sort of view. The DSCR of 1.2 in the coming period is definitely achievable, and by, when we have completed these previous actions.

So let me see if I have questions here. I have a question here. Actually, three questions. So first question is that, do we consider issuing new shares at a discount, so to be in the best interest of the existing unitholders? So we are -- we have analyzed that from many perspectives. And at this point, in order for us to really being a strong position going forward than a small capital increase is important, in order for us to do the -- to execute the plans that we currently can execute with tenants, without too much -- let's say, stress or financial burden. So we believe it is on -- in the long-term interest of the unitholders. And to take the Fund into a stronger position when it comes to the balance sheet, reduce also the perceived risk. I think that currently still is among our unitholders about the future of Baltic Horizon. So considering all the options that we have, yes, I think the answer to that question is yes. Can you confirm -- the question is, can you confirm that based on the management estimates, the NAV reflects fairly the value of funds net assets. That's a good question. I believe that if one would sell all the properties in today's market, then probably the valuations are more or less more or less reflecting the market or the prices that can be obtained. Of course, real life can be plus/minus, but I think considering the discount rates that are being applied and the exit yields currently, then that's probably what the investors will -- are looking for, when investing into new properties, whether we believe that the long-term value of the portfolio than then it is a function of, of course, discount rates and occupancies and the rental levels. So I think, we believe that in terms of valuations, there is more upside than downside potential considering the current -- the latest valuations now that happened during the mid of the year. Then there's a question on management fees on the funds. And we have received that question several times. And this is an ongoing discussion as well within the management company. The management fees are currently calculated as 90% of the NAV. Yes, the NAV has reduced and so has the -- also the management fee by approximately 30%, 40% compared to 2019. Further, I think discussions are happening. So I cannot give you more of an answer today other than that. We're looking at what is the best solution for the management company and for the investors, considering the current market environment and as well, where the Fund is in the current stage. So I think that's the answer I can give at the moment. Then there is a question on Meraki occupancy and why it decreased by a certain percentage in Q2. The answer there is that one tenant that was -- that moved in into the property as one of the first ones actually went to -- went into insolvency. So one tenant had to be replaced currently another tenant is moving into the fitted out property -- fitted out premises. So that's the reason why Meraki occupancy fell slightly in the last quarter. So the market is, in that sense, turbulent, maybe not the right word, but it is still dynamic that new tenants are coming in, but there are tenants that either, for some reason, are reducing their business or having difficulties. So, we continue to work with these tenants and find the replacements as soon as possible. Then there is a question about prolonging our debt still this year. So when it comes to Galerija loan that has been prolonged already. And when it comes to LNK S27 and Vainodes loans, then these discussions are ongoing with ECB Bank, we have good relations and we expect to also prolong them. Of course, the bank is monitoring the process quite closely with Vainodes, with a long-term tenant of Latvian State Forestry, it will be prolonged quite as a regular process, we expect this to happen. In S 27, as I mentioned, there are some movements there, and we believe that when we have signed a new lease agreement in -- for that property, then we will be able to prolong also the S 27 loan as per our plans. Then there's a question on the private placement timing. And as announced also previously, we have a mandate to consider completing this private placement during 2024, assuming that, of course, we have interest from the investors. And we believe, as I said previously that when accomplishing this small private placement, the Fund will have a considerably stronger balance sheet to go through these plans that we currently have, and execute them as soon as possible in order to increase the NOI of the property and the overall financial performance and cash flows of the operations. I think -- as we have mentioned, this is a private placement. So it goes under certain rules, interested investors have been contacting us and are welcome to contact us. We will probably make a more specific announcement when we are closer to the actual transaction. And we expect this to take place during the autumn. So there's not many, many months left now in 2024. But I think the final schedule will be agreed with, with the investors interested. And as I mentioned, welcome to have any kind of discussions around that, in case there is any interest from the investors to participate. And yes, once more, let me confirm that in the occupancy figure, we include signed leases. But many of these tenants are moving in over the next, let's say, 6- or 3- to 12-month period. So we expect income to kick in, in the coming months, especially at year-ends, and beginning of next year and also early spring next year. It's just how -- sometimes it works that the fitout works take time. Planning takes time, especially like in Apollo's case, the lease is 10 years. And they want to do it right. They want to have a proper design, proper fitout, and it takes a bit of time until the tenant are able to move in. So it's not all the time, the cases like this that tenants only start paying when they move in. There are cases when tenants are already paying and they haven't been able to move in. But yes, that's what we expect for the next 6 to 12 months. Then there's a question on, how do we structure our rent reductions? We don't make any rent reductions, currently. Well, not as we used to or we had to during COVID periods, to give some relief for tenants that were affected by lockdowns. So I think, our approach to any kind of discussions is that always the utilities expenses have to be covered. And as well, all kinds of debt has to be covered before we can discuss any kind of temporary support or reductions in rent. And our approach has been that even in case we do offer some kind of solution or some temporary reduction. We always want to get something in return, either it's lease agreement prolongation, or a premature termination rate, so that we if we don't believe in the long-term business of the standard ourselves, we will continue to -- or we will find a new tenant for the premises. And maybe hopefully, that answers this question. So then the question comes on, are we selling currently any of our assets? So we have considered and have had some discussions. We continue to have, I think, throughout the discussions, to potentially sell some of our nonstrategic assets. But achieving terms that are acceptable for both parties has been, I think, a bit difficult. So we're not selling anything at unreasonable levels, or we're not here to make any fire sales. And there's also been a question that, why don't you liquidate the whole portfolio? Then I think in today's market, that will be a fire sale at property prices, which I think, are not reflecting the long-term value of these properties, especially considering that, I think beginning of this year, and probably this year will be the -- or is currently expected to be the long point of the market. Plus selling portfolio entails all kinds of costs. It entails also time. So it will take several years, actually, probably to exit the portfolio of this size. And that's not in our plans. And as I said, we don't believe that selling at NAV today or close to NAV today is the long-term value of what we can achieve this portfolio over the next, I'd say, 3 to 5 years. So that's what we believe in. So there's a question on Meraki. And yes, Meraki, we have refinanced Meraki with a bank loan, and we used most of those proceeds to pay down the remainder of the bond, but also we have financing for Meraki fitout from the new mortgage holder, new bank who is financing Meraki. And we look for ways how to refinance some of our loans as well in case we can achieve better terms continuously, as this is one thing that we can do as a fund management company. And no, there has been no proposal to buy all the assets of the Fund. So over the past years, yes, we have been approached on a selective basis to buy certain assets. But at price levels, we don't believe it's reasonable to sell at the moment. And that's especially when we see potential in filling in our properties with new tenants, long-term tenants. So -- and this is what we continuously aim to prove for the market, for the investors and for ourselves. As management company has also a long-term investor in the Fund, me personally, including so that's what we believe today. Okay. Thank you for the questions. So hopefully, this was informative. We continue our work. And we aim to keep you informed and deliver improved results now in the coming quarters. And I hope I have explained it in these terms, what to be expected over the next quarters. So stay tuned. And in case of any question, any other discussions or interest, please contact us directly. Thank you once again. Have a good weekend.