Cebu Landmasters, Inc. (CLI) Earnings Call Transcript & Summary

So good afternoon, everyone, with 100 participants joining us on the call today. Before we begin, let me give a few reminders. So a copy of the presentation will be available at our company's website at ir.cebulandmasters.com. [Operator Instructions] And lastly, the briefing will be recorded and will be uploaded as well as in our company's website. So without any further ado, let me call on our Chief Operating Officer, Mr. Jose Franco Soberano, to start the meeting.

Good afternoon, everyone. We normally have our briefings in the morning. We just had a Board meeting to attend this morning, but it's really our pleasure to be meeting you again. The last time we met was in person in Manila. As promised, we hope to be there more often to also share our news. And thankfully and consistently, it's been good news in the past few years, and today is no exception. Can you allow me to share my video? Okay. So in the first half, which is still with challenges present, but it's really CLI taking advantage of the opportunities we have here. We continue to grow at a strong base, and we registered a 32% growth in our consolidated NIAT, which increased to over PHP 2 billion already. While our parent grew healthily from PHP 1.55 billion to PHP 1.68 billion. This is really driven by a very strong growth in revenue. Growth across all our segments, including the premium, middle market and affordable segments, a 23% growth in the first half of 2023. So that's easy for me to remember. So from PHP 7.46 billion in the first half last year, we were able to register PHP 9.15 billion in the first half of this year. And as Grant always loves to point out, there is realized revenue keeps on growing. These are revenues that are locked in, that will reflect in our books as completions and collections take place. Another very important indicator is a leading indicator of our future sales, which is reservation sales. And this is where I really applaud my team, applaud the organization because this first half is really our highest sales performance in our history of PHP 10.5 billion in 6 months, a growth of 36% from our previous half. And across all our inventory, we're 90% sold. So what does this tell me? I need to find more projects. So it's good news definitely to our shareholders and to the market in general. We want our example to really inspire the market or inspire other layers as well. So our assets have grown now to PHP 93 billion. So this is really more than 15-fold already from our IPO base. This year, we have stayed true to our commitment to help the housing industry or the market. We are launching PHP 13.5 billion in new projects, higher than the PHP 8.3 billion that we made in the first half last year. We are very bullish still about VisMin. While we announced our plans to expand in Luzon, coincidentally, I was in Luzon just yesterday, in CamSur, we are still very, very bullish about Visayas and Mindanao. We recently acquired a very nice piece of property in General Santos City. So with that, with our, probably, our CFO of the year beside me here, who will take us through our financial results. So Grant, please take it away.

Yes. Thank you, Franco. So as my partner, Franco, has very ably already set me up for this one, I'm really proud to share the numbers behind our performance in the first half of 2023. So here, we could -- our results are still driven, of course, by the sale of our real estate, our turnaround business of selling homes as well as office space, to a small degree, but mostly really it's house and lots and homes. And through the continued progress completion of those projects that we have substantially sold out using a percentage of completion method, we were able to recognize this PHP 9 billion worth of revenue. So that's a 22% growth year-on-year. And as we keep reiterating, this is, of course, a lagging indicator. This is simply a recognition of sales that we have closed with our buyers some periods ago, and we are just now proportionately and progressively recognizing these revenues. But across our other business segments, whether it be hospitality, leasing and even management fees that encompasses our property management business, they are all up and they're growing. You should -- I will just add it here, and I know Franco will expand on this later, that in the next 12 to 18 months, you will see some significant improvement in these numbers as we start opening up more of these recurring income assets to operations. So right now -- later, we'll update you on how these operational assets are coming along in terms of getting online, getting ready. But these are things and these are seedlings we have planted several years ago, and we're starting to -- we're going to start seeing the real results and operational results contribute to our numbers within this year. We've managed to grow our revenues while maintaining our -- in fact, improving our margins slightly. So if you look at how we were able to drive that growth, you could see that we maintained or, in fact, improved our operating margins on gross EBITDA and net income margin compared to last year. We have been saying that there will be challenges in terms of some headwinds that might -- that will exert some downward pressure on our margin with the inflationary numbers as well as higher interest costs. And we maintain that this is still a risk that we are actively managing that. But we should see a very stable type of margins in the quarters to come. Operating expenses and other expenses are pretty much in line with what we expected. And that leads ultimately to a bottom line for a growth to the CLI Group was 32% on a consolidated basis. And the net income attributable to the parent to the shareholders, clocks in at PHP 1,683 billion or a 9% growth year-on-year from the same period. This growth is driven, as I mentioned earlier, by the continued delivery of percentage of completion progress of our projects. So you can see here, we are pretty much on track to once again outperform our numbers from last year. So the change here indicate the performance metrics per quarter. So from the same period last year when we achieved this kind of revenues in the first and second quarter, we have already grown by 23% year-on-year for the same period. And we have done this while still on a net basis, increasing our reservation sales. So if you think about my unrealized revenue as what I have in the back or [indiscernible] revenues that I'm warehousing for future recognition, at the same time that we are harvesting and taking out record-breaking revenue numbers in the first half of 2023, in fact, the net amount has grown, although not as much already. Again, this represents -- because we're coming from a very high basis as we go up with this. You could see that our revenue contributions are becoming more diversified as we spread it across not only a market segment, you could see that it is our premier masters, garden series and economic housing sector, all contributing more or less at the same rate. So it's a very well-balanced portfolio coming from all business sectors. It does show that the recovery in real estate in the markets where we're operating is very broad-based. And these revenues are coming from jurisdictions outside of Cebu already. So not only have we diversified across market segments, but also across geographies. A very important leading indicator, of course, is our reservation sales. Or just to remind, reservation sales are the actual value of the contracts that we closed with our buyers in the first half of 2023. So most of this PHP 10 billion -- PHP 10.539 billion worth of contracts that we have closed are contracts that are not yet contributing to our revenues. Our collections have only begun and only started on these contracts. So this basically adds to my warehouse revenue that I will be recognizing in the next few years. Here, this is a matter of time. You could see that there's still strong contributions across the board. But in this period, it was the Casa Mira brand or our flagship affordable housing brand that really sold and moved well. Just breaking up a little bit of nuance as well that's not on this slide, a lot of the sales that transpired were actually also from launches and inventories that we had since last year. So what this means is that there was a lot of pent-up demand in locations where we launched our projects, but only materialized as reservation sales this year. And so we're -- that will drive the long-term sellout rate of our projects. These sales numbers are coming very diversified across Visayas and Mindanao where we operate. And of course, our Palawan project is contributing quite significantly. Our balance sheet continues to be healthy and continues to be, what I feel, very good that we manage. Although some might note that we have been leveraging our balance sheet, that leverage has always been a company buying future collections. So it's the best kind of assets. These are assets that are on their way to be monetized and liquidated. So if I can draw your attention here, if you look at the box -- sorry, the box is offsetting correctly. But if you look at the receivables right here, it's at PHP 2.78 billion. Contract assets are at PHP 38.8 billion. These are essentially contract assets are a type of receivables that are not yet due. That's how they're defined according to our accounting standards. So if I add both of that, -- if I add both of that, I already have close to PHP 59 billion worth of collections on my balance sheet. Then if I add the PHP 29 billion worth of unrecognized revenues, remember when I mentioned that we have unrecognized revenues worth PHP 29 billion not yet in the financial statement, so if you add all 3 of these numbers, all 3 of these, these represent the uncollected value for now of the contracts we have secured. They make -- these contracts are made up of about -- I know I count this every day -- every week, we monitor this. This is across approximately 34,000 live buyer contracts, all in different stages of collections, all across projects in different stages of delivery. So if you add that, that is close to PHP 80 billion worth of contract sales that we will deliver on in the next few years. So compared to the other side of our ledger of our liabilities and our payables, representing how much we have levered our balance sheet, how much we've drawn from our backlog in order to finish the projects as well as our pending payables in order to finish those projects, we are more than covered. And this is what I meant by we are sitting on a balance sheet that can come where -- you can comfortably see how every side of the balance sheet obligation can be met and addressed very comfortably. I wanted to highlight our debt maturity profile and how we're managing this. So in the last couple of rounds, we have -- periods, so to speak, we have gone on capital leasing exercises, and this is the result of it where we've managed our debt maturity power such that we're pushing them a little bit on the longer end in the curve. And right now, with cost of debt going up, we are -- any debt measures that we are looking at will have a very strong element of a liability management exercise. And what I mean by this is with the yield curve inverting for a high capital expenditure project -- high capital expenditure company like real estate that requires capital, it probably now makes a lot more sense we're essentially being compensated to borrow at longer rates rather than keep in short. So these are strategies that we are considering in the company to optimize our capital structure. Now for the business update as well as updates on our operations, I'll turn it back over to my colleague, Franco.

Yes. Thank you again, Grant. So I'd like to report that our land bank, while we are launching 15 projects a year on average, we're able to really replenish and grow our quality land bank. The newest member of the land bank is an acquisition in General Santos City. We see a lot of progress. We see a lot of good demand-supply dynamics in that city. You can also see here that a lot of our land bank is a mix of horizontal and vertical projects, 63% horizontal, 37% vertical. So the vertical land bank are really located in the prime urban areas. Next slide. So as reported earlier, we are targeting PHP 13 billion in CapEx for this year. So far, we've utilized around PHP 5 billion, but we are really geared up to utilize up to PHP 13 billion. 78% of that in residential development, 11.8% in Lot acquisition, 9.2% in investment properties. Next. So this is a source of pride for us every time we show this, knowing where we're coming from. But we're already approaching around 115 projects in our portfolio comprising 86 residential, 6 offices, 10 hotels, 10 mixed-use and 3 townships. So I'll update you on each business segment. Next slide. This is an important stat here. Across our 34,000 units were 90% sold out, which is a very strong indicator not just on new launches, right? In real estate, for those really monitoring the industry, even when the projects are finished, you might see a lot of inventory, but this is where CLI does a very good job of really cleaning out its inventory as projects mature. Next slide. So this is that slide where we now have over 36,913 units grant from our City Board that we reported in the last half and we are 90% sold, which includes the completed projects. So this is what I want to highlight: where CLI is good at is really, I would say, supporting the project until it's finished. This is where we're able to turn around because all our completed projects are really at the 98% rate. Even those that we are still constructing, whether this is the second year of construction or about to turn over, we are, on average, 94% sold. And that is -- that shows an investor about how well we follow through, followed through on our projects. And even those that we recently launched just in the last 1 year, from 2022 to early 2023, already 71% sold. Actually, we can report to you what we've achieved in the first few months of the second half. We already disclosed that a project of ours in Davao sold out in just 1 week. So we sold over PHP 2.5 billion in 1 week. So this would immediately increase the percentages here as we move towards the second half. So total sales value bringing to our economy and market over PHP 102 billion in real estate value. So just a quick update or breakdown, next. So these were the recent launches, still very VisMin dominated, and why not? Why not? Because it's a market that's developing. I've always asked why here, it's a market where you have a good combination of reasonably priced land in well-located areas with a population that is increasing in purchasing power. That's an OFW market that is resurgent. So these are actual performances sold out in Palawan, the Calle 104, the Davao project. And this really is good news to our shareholders and even our buyers who we work hard for. Next slide. So the construction in progress are very exciting as well, exciting because as we speak, there are probably 15 projects where I have different completions, sources of what we call loan takeouts or balances to collect, but they are already 90% to 100% done in construction. So namely 38 Park Avenue here, we are already turning over up to 26 floors. Casa Mira Iloilo, we just started turning over 2 months ago. So I think we have 20 houses that we already delivered. So this is a fast project. We just started this in 2020. In Bacolod, we held a blessing ceremony there, which I personally attended. So we turned over the first 2 towers already. So this gives CLI that confidence not just in sales, but also in cash conversion and in cash flow management because we are competing a lot of projects, a lot of sold-out projects. Next slide. And as I mentioned, the completed projects are growing in size and quality as well. To name a few, these are some of our completed projects. Next slide. We are going to move to our recurring income business, which we basically just started 6 years ago. Just after IPO, we made a strategic move to aim for a long-term sustainability. So that's by adding recurring income portfolio, which now includes over 30,000 of completed spaces, the net resource base, which will grow to 200,000 with what we're doing under construction and in the pipeline. What's important to note are -- is the leasing growth. We're growing 41% in leasing revenue with our new retail areas coming online and taken up by tenants. Next slide. So we're quite excited for the coming months. We are completing projects where we have our major retail portfolios, Astra Lifestyle Mall, which is in the heart of Mandaue, and Patria in downtown will really boost our retail, our mall portfolio. So you will see this going up there, including our carefully curated list of tenants. Next slide. Yes, a little bit of good news also, Cebu Landmasters delivered Cebu City's first 5-star BERDE-certified building. There's already another 5-star BERDE building in Mandaue, but we're the first to claim it in Cebu City with our project, the Latitude Corporate Center. So we're very proud to be working with the Philippine Green Building Council here. And hopefully, it will inspire more developers to embrace sustainability, not just talk about it, but really do something about it. Next slide. Hotels, so this is probably for a lot of the business travelers here attending, you know the market is obviously -- flying disruptions or even fully booked hotels, and it reflects in our results actually, 74% growth in revenues. So while these guys were the ones really badly affected during the pandemic, these are the guys now smiling. I have my hotel manager, every time I visit him, he's smiling at me. We're -- I think in July, in Cebu, in our Ascott property, we are more than 90% occupied on average. So this is a good indicator. But what's even better for CLI is, next slide, we have 3 properties coming online this year. And so with the pad, our co-living brand, Citadines Bacolod and Life. So hopefully, we are opening these in the last quarter and will contribute immediately to our hotel performance. And this will be followed by our other showcase brands, our first property with the Radisson Group with Radisson RED next year. Davao actually next year. Mercury Hotel also next year, and then you'll have our Jewel properties with Abaca and Sofitel in 2025. So collectively, over almost 2,000 keys, and one of the best hotel portfolios under a single developer in our region. Next slide. Of course, our townships. So CLI has entered this arena of townships. Next slide. Just showing you some milestones. So this is a photo -- a recent photo by Davao global township, highly celebrated township in Davao, catering to the largest residential area and downtown area of Davao in Matina. It's where there is a very popular night market, and we're building the first mall components here. This was awarded as the best township in Asia just 2 years ago. And we are pressured to really deliver as promised here. And next slide. We inaugurated the township just last May, attended by our President and Senator and top officials of the city. We are very proud and it's a Cebuano company that was able to help realize this with our partners from Davao, or the [ Velmiro plant ]. So, please visit. I'll just go straight to significant milestones, and I'll let Grant handle most of the Q&A here. Another good indicator are there are really untapped markets even in Cebu. So CLI was able to launch a 6.8 hectare property in the city of Davao, in the very industrial city of Davao. That is really becoming more mixed use and is attracting a lot of investors. So just a month after launching, we are already 90% sold there with over 600 housing units. So this is why as a developer in this region, there are still untapped areas in cities, even like Cebu. Next slide. This is a project close to our hearts. This is actually a tenement condominium as part of our socialized housing compliance. We made a direct investment route that allowed us to build 90 units for informal settlers displaced by a fire in Mandaue City. And look how nice that looks. It doesn't look like a home for low-income families, it looks like a decent home that they deserve. And it's even going to have a green building certification. And this is done by Cebu Landmasters in -- for the city of Mandaue and for the hardworking and deserving Mandauehanons. We are going to finish this, this year. So strengthening VisMin leadership. We announced our Mindara, Davao, and we already disclosed that this sold out already in just 1 week. We have our Velmiro Heights Davao upcoming. We are in the final steps of securing the necessary permits. Same as our Costa Mira Mactan, we are in the final steps of this year. East Village as well and new housing expansion in Casa Mira South and another new untapped area Consolacion Cebu. And this will be a new significant housing project in Velmiro Consolacion. Next slide. Of course, our CFO here received on behalf of the company, our award as one of the top 10 developers in the country. I believe it was our fifth straight year to be part of this distinguished list. And we won a bronze award for achievement in corporate social responsibility. So at this point, once again, I'd like to thank our team, first and foremost, for the excellent results. We are really driving a strong momentum that we want to -- that we are carrying into the second half. And we hope to do our next briefing in Manila, so that should be by November.

November or if not November, for sure, our full year -- when we do our full year ones and we have that significant...

So it can be a November briefing with an advanced Christmas part for analysts in Manila.

Yes, possibly. Yes. And we have some big things lined up. I really -- we can't speak too much about it now, but I think the market will appreciate the things that we are already working on, not only on, of course, not only on our business operations, but also overall our corporate strategy.

Yes. And which we will update soon as these materialize. Once again, we're very thankful for the support. We're honored to be delivering consistently good results to you, our shareholders. So thank you very much, and we're now open for your questions.

Thank you, sir Franco and sir Grant. We have a couple of questions here in the Q&A box.

I will read this first question. I think this is for sir Grant. From John Ruel Prado, do you think our stock price is still under valued? Will there be any buyback program to boost the price up?

Yes. Thanks for the question, John. When they say, you never ask your barber if you need a haircut. You also don't ask your CFO if the stock is undervalued because I will always say, yes. But joking aside, I think I'm being very objective when I say that we are very undervalued. Despite -- I mean, operation and the graph, I think both on the fundamentals as well as just the returns that we are driving for the market, we do believe that we are undervalued in the market. If you think about it, we are #1 market share in Visayas and Mindanao. We have gained this market share as we've grown. We've not only gained the market share, but we gained market share by growing off of a growing pie. So the demand is -- continues to be very strong. It has proven to be stronger in the pandemic. We are expanding and diversifying our real estate portfolio. Again, as Franco mentioned, we're soon to launch more hospitality projects, more office projects. We continue to deliver products that does outstanding results. And these products are -- when the market is snapping up, again, on average, Franco mentioned that we're 90% sold out. But I think a more significant measure there is, on average, as soon as the project is completed or as the projects mature to completion, we're 98% sold out. So the 90% is a blended average. But as more of our projects become completed, as more buyers see the products we are bringing to the market, you can actually see -- we're actually seeing very strong sales take-up numbers. So we know our inventory will get sold out. We're paying out cash dividends. We're growing double digits on compounded annually, yet, our valuation of earnings is less than, at this point, less than 4x PE. We're trading below both. So obviously, if I were an analyst, just on the fundamental basis, I would say that we're very much undervalued. And you don't -- I don't even have to just say it myself. This is a conversation I've had many, many times with many analysts and researchers covering us. So yes, I do believe we are. The second part of your question is, is there a buyback program to boost the price up? We've had buyback programs already, I think 3 in the last -- in the recent years. And even the founding shareholders have bought back a significant amount of shares. This is all publicly disclosed, of course. We just have to balance the results because we might inadvertently not even cause the price to go up because one of the things that what we want to do is we want to enhance trading liquidity and volume trading in our stuff because that is one -- absolutely one of the factors that investors are asking us to take note of. So just as an advance answer to the next question, it is one of the things we are working on in terms of how we can foster a more active trading environment for our stock that allows our investors the proper environment to take an entry position and take an exit position should we want to, so that our valuation can finally be realized or where I feel it should. Thanks for the question.

Thank you for that, sir Grant. For the next question, let me read this question from Rastine Mercado, he is the Head of Research in China Bank Securities.

By the way, thank you for the coverage.

He just recently covered [indiscernible]. So on listing, what is the total GLA you're expecting by the end of the year? And related to that, what is the occupancy rate of your existing portfolio as of end quarter?

Yes, thank you. Maybe on the leasing, currently, we're at over 30,000 net leasable area, but we are expecting to reach plus 47,000. So around 77,000 in 6 months' time. Retail-wise, we are above 90% for retail leasing. For office leasing, we are mirroring the market. We know that vacancy rates are sales over 20%. And so that's where CLI is as well. But the good news for office leasing is there is really renewed interest. There is stronger interest because we see some new BPO players who took floors in our buildings. So I think it's about time where the work-from-home trend will be overridden by the need to have secure office facilities, which will prevent any data privacy concerns. I think that's always the concern with big BPOs. They realize that having people work from home to do key transactions will always be a threat. So we see renewed interest in office buildings, but I would really point out that the newer office buildings will be taken up first because these offer the greener facilities, more technological provisions, captured it correctly.

There's a second part of the question that I think I'll update. Clar, do you want to -- could you help me read for our audience?

So also from Rastine, sir, on gearing. Given your gearing ratio, our remaining CapEx program and long-term plan, are there any developments and potential capital in these exercises to help fund future growth?

The quick answer is absolutely yes. I wish I could give a longer answer, but sufficient to say that we are working diligently -- not only exploring our options, but working on those options already. And the hope is that we can get to a point in this process where we can disclose something to the public. Of course, when we work on something like this, we need to be sure about what are -- not only our intention, but also if we announce anything, it should be a little bit more definitive. So the quick answer is yes. But I guess to give a preview or some idea, there are many ways by which we can address this matter. It's a capital-intensive industry and one way to get capital, for example, is to partner with institutions or entities that can infuse land into our projects. So that's a noncash. Another is to invite a private investment speak to the company in bringing their investments respectively. And finally, I think I've been very transparent about the third one is that we do have medium- and long-term plans eventually do or -- that might be -- I know that's something that's been asked before, but that is absolutely something that has a tremendous effect on our balance sheet. So we're simply executing this importance. What we know we need to have a good operating track record of any recurring income assets that we wish to spin off into our REIT and, therefore, get and recycle back the capital to CLI as equity. So first, we want to launch and deliver these units. We want to perfect, learn from these operations. We want to give a good operating track record, show you occupancy rates, show you our hospitality assets, and then start laying the groundwork for our REIT. And hopefully, again, with 3 or 4 years' time, that will happen. And given the cycle of real estate, right, from acquisition to turnover of our real estate cost development, it's a multiyear cycle. This is at least from our time perspective. It's going to happen pretty soon. So we're very clear with our intentions in terms of time and in order to maximize the value for CLI and shareholders.

Yes, well answered by Grant. And so that was a definite yes on our capital-raising activities. And once there are definitive developments, we will ask on that one.

Thank you for that, sir Grant...

Especially I think for the analysts or for real estate players there putting in lease CLI has earned that place in its leadership in our region. So of course, groups have taken notice, groups understand that we delivered on results that are unprecedented, growing during the pandemic. So I feel it's really about time. And that is something where management in CLI, especially our Chairman and CEO, Mr. Joe Soberano, is always going a step ahead, always looking forward to grow the company the best way possible with his years of experience, especially we are very diligent Board who is guiding us along the way. So thank you for that very good question. And on the second question on residential launches, at the start of the year, we announced that we are launching PHP 29 billion of residential sales, but we've launched just close to, I would say, 13.5 so far, of which we sold PHP 10 billion with the new launches and some existing projects. So for 13.5, I have PHP 16 billion of launches to go to keep me busy and my team busy. And just to remind the audience, it's our 20th year. So we are really coming out winning as we celebrate our 20th year this September. On Luzon strategy, maybe you can ask the question.

Another question from Rastine here on Luzon strategy. Are there any new updates in your upcoming mainland Luzon?

Yes, I just arrived from Luzon yesterday, took a day trip. We were in CamSur, in Naga City. So we're looking at several very good opportunities. We really like CamSur. And then once we have something definitive, we will announce it. As you know, CLI moves very fast. We are really hoping to launch our first Luzon project launch, meaning bring to market by next -- early next year.

We think -- thank you, sir. There's an interesting question here from Gaylord Tingzon. So he is asking if you are planning to develop a township in GenSan and where is it located exactly?

Yes, good thing I know who this guy is. He's from the brokerage community. I know he's excited for us to be in GenSan. It's going to be a housing development. We're bringing our award-winning Casa Mira brand to GenSan. So it's just around 15 hectares approximately. So that's over 1,000-plus units to be brought to GenSan.

Maybe you can provide insights, sir Franco, why just in GenSan and others from the -- among the other sites?

Yes. I mean GenSan, we've been wanting to be in GenSan since 2019. There are just a combination of factors. We're very strict about our due diligence process. So if there's one thing wrong with a property, we won't push for it. But I would say it has a very strong local economy, of course, from the agri with the poultry, with the food businesses there. And they are moving these outside the city. They are really emerging. You have a lot of big malls there. There are no -- not so many condos yet there, maybe 1 or 2, but when we -- when CLI will position ourselves there, so we are ready to help urbanize city as well. What's great is a good governance. We have an investment promotion team from the LGU, was just here in our office...

I should -- I was about to say that, that they came to visit us, so that delegation came to us here in Cebu to essentially be proactive and entice our investment there. So we know that it is an environment -- they're laying the groundwork environment that is conducive for economic development starting from housing.

A business-friendly view will always be a plus, right? Because we have the same shared goals, wanting to help them with their tax revenues, also help them with their employment. So it's always win-to-win. And there are several very good LGUs out there.

That was the last question...

Okay. So that's all for today?

Yes. We have a total of 83 people...

So on behalf of the team and Franco, I want to thank everyone who attended this call. So it's just the first half. I thank you for monitoring and keeping track of CLI. I'm actually very excited for the second half because, god-willing, we'll have some very significant announcements to make. Again, I'm actually -- I'm personally quite giddy, and we're working very hard in the background to do this. some of these questions, I couldn't address or I couldn't give much more details. But just know that your team, your management is hard at work not only to execute the strategies we have laid out to deliver on the projects that are already fully sold, but also to address all those concerns that are facing us and your company. And we know exactly how we're going to do it. And these are things that we look forward to sharing with you in the next few months of this year. Thank you very much for following CLI.

That's well said by Grant. I'll also end here. Thank you so much. It's our honor to be sharing our good news to you. Have a great afternoon.

Okay.