Invitation Homes Inc. (INVH) Earnings Call Transcript & Summary

All right. Good afternoon, everyone, and welcome to the 2:45 Nareit panel discussion with Invitation Homes. My name is Sam Choe from Credit Suisse, and it is my pleasure to introduce Dallas Tanner, CEO; Ernie Freedman, CFO; Tim Lobner, EVP of Operations Support; and Marnie Vaughn, SVP of Operations Support. We also have Scott McLaughlin, VP of Investor Relations, in attendance here today. I will now pass it over to Dallas for opening remarks before we go into our Q&A session. Dallas, the floor is yours.

Thanks. Appreciate it, Sam. Thanks, everyone, for being here. We appreciate the opportunity to present at Nareit. Really kind of a few high-level comments. I want to give just a brief update on kind of our view of the business. First, I hope everyone had a chance to look at our May update. The business really couldn't be running any better from a perspective of the last several years. We continue to see acceleration around rate, May over April, with our new lease rates approaching 16%, our renewals in the low double digits. We're blending close to almost 12% right now for the month of May. Occupancy continues to remain elevated at 98%. We're learning a lot more about the customer as the portfolio matures and seasons. We're seeing customers stay with us longer and longer. We're seeing rent-to-income ratios of around 5.5x. That's much further ahead than where it was at our IPO, which was around 4.5x in 2017. So as you think about the macros in terms of how the business is behaving, we feel really good. The fundamentals that center around the balance sheet, I think we're equally as optimistic about. When we went public, we had over 11x net debt to EBITDA. Today, that number is much closer to 6. So we've got all of our maturities, for the most part, about 97% of those are fixed with no maturities really due until 2025. So we can be opportunistic over the next couple of years as we look at extending out some of those maturities. And I think, lastly, and I believe the business has shown this kind of through at least the pandemic. We haven't had necessarily a traditional down cycle. But if we are facing some sort of a slowing growth environment between the embedded loss, the lease that currently sits in our portfolio, rising mortgage rates which may push decision-making to go into the sidelines on new home purchasing, we think the business is set up really well to capture a lot of that demand. We've seen retention rates go from 35% in our IPO into the low 20s today. We're doing things around ancillary revenue and other sides of our business that are making a more impactful experience for the customer, and we're finding ways to also how can we bring down costs and other cost categories for the customer. I mentioned before that with our rent-to-income ratios approaching 5.5x, the customer is probably spending somewhere around 17% or 18% of their monthly income on our rent. Average customer today or the household kind of information is around $130,000 on an annual basis. So we have a little more qualified resident today through screening and getting better at how we underwrite that process. We have a customer that's experienced a bit more wage inflation. And as a percentage of the monthly spend, we have a percentage that's actually going down. So we feel like we're in a really good position, Sam, in terms of kind of as we finish out, say, the back half of the year and as our prospects look forward towards 2023. So spending a lot of time thinking about capital allocation, how do we want to be ready in case there are real opportunities to grow.

Great, great. So let's kick off our Q&A session. Dallas, going to stay with you. 2019 Analyst Day, you guys showed off those green shoes and said you guys are ready to run. You guys weren't kidding. You guys ran hard and strong during pre-pandemic, during the pandemic. And post-pandemic, you're set up very nicely. So I'm wondering, and I would like to hear your take on what has gone better than expected, what has been just as expected and what still needs improvement?

Well, I mean, maybe we'll start with occupancy. As we went -- as we took the business public in '17, we always said that we viewed this is a 96%-, 97%-plus occupancy business, it was just going to take time for us to get our efficiencies in place and our customer service side of our business in place. I don't think we could have anticipated occupancy staying at 98% as long as it has. But then again, with that being said, the service level of what we're offering today in 2022 is far different from what we're offering in 2017. And so I think as we continue to innovate there, think about how can we use the scale and the power of the platform to drive down costs for our customers and other categories, I wouldn't be surprised if occupancy does stay a bit more elevated a bit longer than perhaps we had thought. I think the ability to grow ancillary, I think we talked about it at our Investor Day, when we had that Investor Day, our ancillary income numbers were basically 0. This year, we'll hit somewhere around $45 million, of which about $35 million of that is just true income. So it's a capital-light business. It's customer-friendly in terms of the services it provides. We can drive down costs around things like pest control, landscaping costs, things like that, that people are going to spend money on anyway. And through the efficiency and the maturation of the company, we're actually getting better at some of those. And we've got a lot of work still to do. I think there's a lot of opportunities there. So I think we're still running. We're pushing ourselves pretty hard. We have a high ceiling we try to put for ourselves. We think about our annual objectives and kind of corporate priorities. We know we've got work to do along environmental. We want to figure out how can we do things within the home that are repeatable for homeowners. We've done some of that with smart technology. And we're looking at things around water and some of these other categories that could be interesting over time as the technology develops. We're investing in companies like Fifth Wall that are doing some of those things. So we're getting more and more exposure to where maybe the residential experience could go. And I think what's been validated along the way is that the return profile, the customer and -- not only the customer but the expected kind of growth profile of that cohort of people between the ages of 35 and 40 marks for a pretty compelling story.

Got it. Got it. Now let's stick with the running metaphor. You guys have been running strong. And now we're facing storm clouds of rising interest rates, inflationary pressures and the fears of a looming recession. So I guess when it gets raining, people are concerned. So how do you believe Invitation is positioned in such environment?

Well, I'll offer some thoughts, and then, Ernie, feel free to jump in. First, I would say what markets are you in and why? We're in the highest household growth formation markets in the country in terms of the Sun Belt and the Southeast. So I like our prospects in terms of what's naturally going to happen based on demographics, shifts in priorities in terms of where people want to live, the work remote factor. People are chasing sunshine and more favorable tax climates, and I think all of that plays into the portfolio we own today. I think mobility, flexibility is something that we've seen in a lot of our survey information and things that we gather as both people are moving in and as they're moving out of our portfolio, what they liked about the experience. So I think offering additional flexibility over time and distance is something that the consumer actually wants. If you look at our business today, we have probably 250,000 people living in our homes. 2/3 of our surveys on the inbound suggest that these customers could own a home if they wanted to, and they're kind of split into 2 camps. One is a transition -- how do you say that, transitory, transitory gap where there's some life event going on. Maybe they got married, maybe they just got a first job or they're moving from New York to Texas or whatever it is. The other half is preferential. And so that preferential bucket is also one of the reasons we raised the joint venture around the higher price point homes because we see a propensity for additional services, ancillary opt-ins, things that I think can actually promote a better leasing experience.

Okay. Good. Ernie, you want to...

Yes. I guess, Sam, at a higher level, I guess what I would add is, and a lot of folks in the room have seen recessionary environments in the past, where real estate companies can get in trouble in a recessionary environment is also when you have an issue of oversupply, and maybe your balance sheet is not where you want it to be. And I think across the REIT world, balance sheets are very stronger today. Private operators have stronger balance sheets today than they certainly did during the last recessionary environment, during the global financial crisis. And at least on a relative basis, we feel like we could be a little more insulated than maybe other product types because supply is such a challenge, not just across the entire U.S. market, but even more specifically in the markets where we are today. You add on top of that the demand generators that are pretty strong, and we're dealing with lives and beings, so that, that won't go away necessarily like it could in other spots. It does feel like we might be a little more insulated from a recessionary environment if one were to happen relative to other commercial or residential real estate types that are out there. So -- and the balance sheet is well prepared for it. And then lastly, specific then to Invitation Homes, we're not getting to market rate -- market leases right now in terms of market rents. We have a loss to lease that we talked about at the end of March that was approximately 20%. And so with that, it probably provides for a little less volatile -- if there's a deceleration in the growth rate, it will probably be less volatile for us than it might be for others in the real estate business.

Got it. Why don't we stick to the leasing side of the business? It was great to see those strong leasing trends continuing to May. Anything notable in the early months of peak leasing season? Or is it just business as usual right now?

I'd say business as usual. I mean, the curve feels pretty similar to the leasing curve we would experience kind of pre-pandemic, wouldn't you say, Marnie? And I would also add that while the rate is much higher, obviously, we're coming in with renewals that are much lower, and some of that is just by our own decision-making. So we look at where pricing is on a market basis. We've had customers that have been really loyal for a long period of time. We're certainly not going out with full market pricing on all our renewals. I feel like it's the right thing to do, and we're getting candidly enough rate out of the market as it exists. So feels pretty normal. I think retention is a little higher, as I mentioned before. I don't know if you want to add something to that.

That what I would say, Dallas. I think the one thing that's been a surprise, has been a positive surprise, Sam, is we continue to run on a year-over-year basis, turnover being lower than the year before. And we're already running at pretty low numbers. Last year, our turnover ended up around 23%, which is extraordinarily low. And right now, we're trending to do better than that in 2022. And we did not project that at the beginning of the year. So it just does feel like, especially with recent events, that the customer does have a little bit more of a propensity to renew than they were before, and that's certainly helping us on the top line and especially on the bottom line.

Great, great. So let's kind of shift over to the renewal side, which we did kind of cover. The loss to lease continuing to be around 20%. You guys made the deliberate move to be more balanced and resident-friendly with the renewals. I'm just curious why you guys believe that is the right approach and how it helps with the longer-term revenue outlook.

I'd just say, look, first, if you think about some of our customers, think about our customer in Phoenix, they've been with us 2.5, 3 years. They've probably experienced somewhere between 30% to 40% [ rent-free ]. And we've -- we appreciate and acknowledge that the cost of everything is going up, whether it's fuel, food, whatever. We're all seeing it in our own life. So just striking that balance feels more or less like the right thing to do in kind of a turbocharged environment. It's -- on the new lease side, if something goes vacant, we're pricing it to market. And that's been our approach really since day 1. On the renewal side, we just feel like pricing has been so elevated. We can afford to leave a little on the table, so to speak. And look, I think you get the benefit of customer loyalty through some of that process. I think internally, we've had some good discussions. As customers get the renewal news, on occasion, we'll get phone calls asking about rate, and our property management teams can actually walk them through where market pricing is happening in their neighborhoods and ZIP codes and actually show kind of the embedded loss to lease or the discount that they're receiving on the renewal. So I think it's been a value add in terms of retaining customers.

Got it. Got it. Can we touch on the demographic characteristics within your rental portfolio with regards to the household income level and the rent-to-income ratios and how you're thinking about the rent collections in the current environment?

You want to take that?

Sure. Yes, Sam. So we've reported -- and these are numbers as of the end of the first quarter, we update them on a quarterly basis, that the average income across our portfolio is almost $130,000. With rent levels approaching $2,100 a month, that gets you to a rent-to-income ratio of about 5.4x, almost 5.5x. Average head of households -- and that's grown pretty significantly over the last -- certainly the last few quarters. We're seeing that grow a little bit more quickly than where rents are. I think as Dallas talked earlier about, we would typically -- prepandemic, we were running in the high 4s from an income-to-rent ratio. So it's been an interesting outcome over the last, say, 5 or 6 quarters. So that's accelerated a little bit in terms of the improvement. Average households, 1.7, 1.8 earners. Average head of household age, and this is an important differentiation with the multifamily product, is somewhere between 39 and 40 years old. So it's an older renter. From a demographic perspective, it's often almost 2 earners with children, importantly with pets, which is an opportunity on the ancillary side as well for us. And that really -- other than the income going up, that hasn't changed a whole lot for us over the last few years. Importantly, from the demand side, what I would tell you is that the -- just on average, the oldest of the millennials are now aging into the place where they want more space. They want to be in a place that maybe has better access to better schools and things like that. So the millennial generation, that's going to be coming our way; the Gen Z, right behind it. From a demand perspective, you certainly feel like you're in a good spot in regards with lives and beings. And again, when you think about the markets we're in, that just feels a little bit better still.

Got it. Got it. I wanted to spend a few minutes talking about the external growth opportunities. Can you guys talk about your multichannel strategy to growing the portfolio and what type of yields you believe you can achieve through each vertical?

Yes. Apologies for -- Sam, I think it starts with markets. Where do you want to invest capital and why and how do you think about that allocation? And I think from the very beginning of the company, there was a big focus on being in kind of the highest growth, typically higher barrier-to-entry parts of submarkets, so identifying areas that had access to greater schools, transportation corridors, maybe walkable, some amenity level kind of characteristic to it, not always the case but definitely anchoring in on the right ZIP codes in terms of schools and proximity to transportation and job corridors. I think from there, it was how do you find the right types of homes and what will ultimately be your highest and best use of capital. And we made some mistakes in the earliest years doing things like replacing carpet and doing -- and CapEx decisions that were made in these homes. But I think as you start to think about how we can grow the portfolio, it quickly evolved into we're not afraid to buy one-off. And to this day, we still aren't. Last year, we bought several thousand homes one-off. We also sold a couple of thousand homes back into the end user market. We've created really strategic partnerships in our merchant building programs. We have preferred partners like Pulte Homes that we actually get under the hood a couple of years in advance on future developments, and we can structure transactions that can provide us new quality housing in neighborhoods that we have firm belief in. We're active in M&A. We have a history of having done quite a bit of M&A with our transaction with Colony and hitting the synergies that were really important to us as part of that transaction. And I think anything that you do should be additive to your scale discussion in SFR. Our business has gotten better over time and will continue to get even more better with scale. We can run 13,000 units in Atlanta as efficiently as we can run 3,500 units in Seattle, but you can actually offer more services. And you can actually differentiate through your vendor allocation in the markets where you have a bit more scale. And so I think look for us to continue to be opportunistic along the builder lines. We haven't taken that risk on balance sheet today. And I think in an environment like today, it makes a lot of sense to have a lot of land on balance sheet. But I think we can do business with a lot of different builders in a variety of ways. We thought about on the capital allocation side having strategic partners for when cost of capital doesn't make a ton of sense for the company. And so having those different slugs available to you to add incremental units into the business, it's kind of like the saying of, "Rising tide will lift all boats." We can get better margin performance out of the existing business by continuing to do so. So...

I think at a high level, Sam, I can talk about what kind of cap rates and yields are for the different channels. So right now, if we're buying off the MLS, one home at a time, which is predominantly where we're growing, we haven't seen any change in cap rates. We're buying, on average, between 5% and 5.5% for the typical product we're putting on our balance sheet. But what we're going to do in our new joint venture for the premium homes, we expect those cap rates are going to be more in the 4% to 4.5% range. That's one of the reasons why we chose to do it in a joint venture because we can improve our returns with property management fees and asset management fees because they're only going to be a small piece of the equity capital there. With our builder partnerships, Sam, depending on the market, the premium we get, we get a higher cap rate, anywhere between 25 and 75 basis points. So it's a little bit better still than buying off the MLS. The one area we've seen some change in cap rate over the last 3 to 4 months is around portfolio opportunities. There aren't a lot of portfolio opportunities in our sector. I mean, you typically see maybe 3 to 6 a year have popped up over the last period of time. Last year, we saw those deals trading at really premium cap rates as much as into the low 3s. Now part of that was because of embedded loss to lease. Part of that was because you could finance them really inexpensively in the private markets, and a lot of the private players were successful in closing on those. As you price off, you keep track of us. We didn't close on any of those last year. We've seen cap rates for those types of portfolios for deals that have been shopped so far this year maybe increase about 50 basis points, and I think a lot of that is because of the cost of debt. And in some cases, we've seen deals just come off the market because there was going to be more of an opportunistic seller, and they couldn't quite hit the bid that they might have been able to hit last year. So -- and they didn't have to sell, so they may have chosen not to do that. So we're not seeing any change in cap rates as we think about buying one-off homes. But on a portfolio basis, for high-quality stuff because of the cost of capital changing for everyone on the debt side, especially for the private buyer, they're not as competitive as they were last year. So maybe that turns into an opportunity for us later this year if other people think about portfolios.

Great, great. Tim, want to hear your lovely voice and tap into the ancillary side of the business. Can you explain to the audience what Invitation Home has achieved on this front during the pandemic and the upside potential to the new initiative you're planning?

Sure. As you mentioned, Sam, we started our ancillary program in 2019 with our Analyst Day or Investor Day. We announced -- at the time, we had no revenue coming from our ancillary program. This year, we are looking to grow it year-over-year by about 35%. Last year, we were at about $32 million; this year, probably around $44 million to $45 million. It's an area of our business that we're really excited about. It's, as Dallas mentioned, capital light, but it's also something that creates a stickiness or a level of loyalty with our residents because we're offering a lot of things that they really want. We know they want it because we survey our residents, and they tell us the things that they want. I'll tell you a few of our programs that continue to grow. One is our smart home program. We are in 60% of our houses now with subscribed customers, and they love it, allows easy access to the house, remote control, remote access for the doors, remote access of thermostats. We've also rolled out a Ring Video Doorbell program, and that is in 70% of our markets. It's something we are going to be earning into over time because we're just doing those change-outs at the time of turn. So we're excited about the long-term opportunity there. We also have our air filter delivery program, which we think is fantastic for breathable air for families, and we are in 70% of our houses delivering quarterly air filters -- high-quality air filters, makes it really easy to be lease-compliant and also we believe will reduce our long-term HVAC expenses. We've got some other things that we have rolled out. At our last conference, we talked a little bit about Terminix, our pest control program. That has had a nice uptake, and we are in all markets offering that. And this is the time of the year, obviously, if you own a home, you know that pest control becomes more important. TaskEasy is our partner on landscaping, and we have rolled out to all of our markets. And that's another program that we anticipate a lot of earn-in as we sell that at the point of turn, so we're really excited about that. I think where we're going is the big story. We hope to grow this to a $100 million book of business within the next 3, 4, 5 years, and we're excited about some pilots we have going on right now. One of them is a furniture rental program. One of the things we've learned from our residents is that they certainly need furniture, it's a house, but that they may not want to buy furniture for a rental house. And so we've got a program where they can lease with the option to buy. So we think that's going to strike a need with our resident base based upon what they've shared. So we're also looking right now at a high-speed Internet package and video package that would offer [ a gig of ] service to homes at a very reduced price. Our goal is to create a really, really easy move-in experience. So when they move in, they don't really need to set anything up. They can come up and -- come in and just enjoy the leasing experience, enjoy the house and live their life. So again, $100 million is our target, could be more. The real opportunity is leverage our buying scale, right, our power to buy a lot at a discounted price, pass that on to the resident and create a simpler lifestyle for them.

Great. So I'm going to go back to Ernie. I know you mentioned the strength of the balance sheet, but how is Invitation thinking about the sources and uses of capital over the next 12 to 18 months?

Yes. So from where we sit today, we got a little bit ahead of our capital needs. As we finished out last year, had a large cash balance on our balance sheet at end of the year; similarly, a large cash balance at the end of the first quarter. To be in a position that if we thought there will be still a good opportunity to buy, we want to have capital available. Certainly, our cost of capital today, Sam, isn't what it was 7 or 8 weeks ago. It certainly where it wasn't as we went through last year. And so we generate each year roughly about $300 million of free cash flow. We would anticipate selling on a typical year anywhere between, say, $200 million and $400 million worth of homes. We have a little capacity, but not very much if we want to use some leverage to help grow the business, but we continue to want to keep our leverage targets where they are or bring them down. So that would just be a little bit of marginal leverage there as our EBITDA continues to grow. So starting -- and then, of course, we have joint venture capital, which is highly levered from the perspective we can grow faster with only a little bit of our equity capital because we're using other people's equity capital and potentially some leverage in those vehicles as well. So that puts us in a position in the near term, Sam, that we can hit our growth objectives certainly and maybe not get to the end of the year but get certainly into the later part of the year without having to do anything on the capital side. And we'll just have to see then if the opportunity to grow continues to exist externally, which we think it will. Let's see what the most advantageous cost of capital for us at that time. We're very focused today on finding other potential sources and potentially using JV capital or looking for other opportunities. We're not going to wait till we run out of cash to be thinking about that, and we'll just have to see in a few months where things play out and put ourselves in a position to try and marry up an opportunity to grow externally with a cost of capital that allows us to do that the right way accretively for shareholders.

That's great color. So I did want to touch on this. Are there any regulatory risk concerns at the federal, state, local level that you guys are currently monitoring?

Yes. I mean, we've had our fair share of getting picked on a little bit at the federal level. We continue to work with the subcommittee on the coronavirus, and we share information. At state and local issues, I think we've actually made some progress. There's been good legislation passed in the last year in states like Tennessee and North Carolina and Florida, where they've been a little bit more friendly to the single-family rental industry. We had the qui tam issue out of California, which we continue to monitor and we've responded to officially, and I think that will go through summer on our motion to dismiss. Hopefully, we get some feedback here at some point, middle, end of summer there. But beyond that, I think we continue to work locally on the projects that we have in front of us. There's been good dialogue. I was in D.C. last week, met with a number of sitting senators, talking about the industry, continuing to help educate on who we are and what it is that we actually do. So I expect that we continue to make good progress. I think the most important thing is that every state operates a little bit differently. So making sure that at the state and local levels, you're continuing to work with the leaders in those different municipalities to help educate, help them understand what it is a single-family rental is. A lot of our companies are doing a lot of development, so they happen to be in and out of city offices, doing [ P&C ] and things like that. So we'll just -- we'll continue to monitor and keep updated. It's an election year, so I would expect things are always a little spicy in an election year. But we can only control the things we can control, which is continue to try to run a great business, focus on buying a great product and providing the services Tim talked about.

Got it. You mentioned the qui tam. Is there any new news to share regarding the qui tam issue?

No new news from our front. We filed -- just for you to be aware, we filed a motion to move to federal court because, as we understand, the federal courts are better at dealing with false claim acts. We filed a response, which is public information. People can look that up. I believe the plaintiffs have a certain amount of time to review that and respond back, and then we have time to respond to it. And then ultimately, I believe that lands with the judge that's been assigned to, and then they'll look at our motion to dismiss and provide a number of different varying feedback. So we have to kind of wait and see how that plays out.

Got it. Got it. I guess we might have a few minutes for the audience. But before we wind down our planned Q&A, what are the main takeaways you would like the audience to leave here with today?

Look, I think as you look at housing fundamentals, Ernie talked about something earlier that I think is a really important point. One, we've had a lot of questions today around mortgage rates and what's our view on kind of overall housing fundamentals. First, you got to remember, 90% of probably people who own homes have locked in a mortgage at a rate that was far different than what's happened in the last 90 days. Second, the homeowner today has a lot of embedded equity, generally speaking, in their home. It's not a similar situation to the downturn experienced in '05 or '06 -- sorry, '06 or '07, where a lot of that was real-estate-led. And it doesn't -- to me, just my own view is it just doesn't feel like this is a real-estate-led issue right now. This is really an overall inflationary environment. There's a lot of macro things that are going into that. I feel like single family is still going to suffer from the undersupply issue. I think if there's something you'd walk away with today, I think we can't underestimate or under appreciate the lack of inventory that has been built in the last 10 years coming off the last housing crisis. And that's just fact pattern. And so as you start to think about where is that new supply going to come from, builders, to Ernie's point, are in a better position with their balance sheets today than they were before. They're not going to have to take as much measured risk. As we talk to homebuilders, it sounds like, yes, they're starting to feel some of the impact from mortgage rates, but things still look pretty good. And that will take time to play itself out into lowering land prices and things like that. So I just don't see a world where all of a sudden housing gets really cheap. I think pricing likely stays elevated. I think there'll be some opportunities for companies like ours to be innovative. We've done some of that with Pathway Homes, which is kind of a unique angle in terms of -- the single-family environment has started to shift and change, whether you look at the way iBuyers stepped into the space and started to digitize the transaction, or if you look at companies like Divvy or Pathways that are offering a rent-to-own category that's much more in line with some of the programs you've seen in Europe. So we've wanted to be part of that story and understanding it. I think there's a huge opportunity in the sale-leaseback space. As people age in place that they can unlock equity but -- structure long-term leases and do things that are really unique to the living experience. So I think these things typically take time to play themselves out in the macros, but you're seeing companies innovate, which I think is a really good thing for the consumer. Now if you look at the homeownership rate today, at 65%, it's pretty healthy. And if you step back, and we've kind of -- we appreciate this because a lot of people in the room are living the day-by-day CNBC alert that hits your phone, but 5.5% money is still relatively inexpensive money. So the credit markets are resetting. It'll take a minute for equity and home prices to kind of correct and correlate, but we're not talking 7% or 8% mortgages. I came off the last meeting, and I talked about the first home I bought in 2002, and I paid 6.25% on a 30-year fixed. And I can do it a lot cheaper today. So I can get more house and generally a better-designed house for my niece today. I think paying attention to those things, watching what's happening with millennial preferences and shifting demographics, paying attention to what happens with regulation in kind of our markets, specifically do the Sun Belt markets stay much more business-friendly than other parts of the country, those are the things I think we spend a lot of time thinking about. I rambled for a second. But I saw that I had 3 minutes, so I thought let's get as much in as we can.

Ernie, do you have anything to add if you...

After what Dallas -- I think he summed it up really well, and we're getting the red light, Sam, so I'm not sure I'm even allowed to. But other than -- thank you, everyone, we appreciate your support. And, Sam, I'll let you...

Not a problem. Thank you, everyone, for coming.