New Zealand Rural Land Company Limited (NZL) Earnings Call Transcript & Summary

Good morning everyone, and welcome to the New Zealand Rural Land Company Conference Call on the 1st of March, we were going to talk about our equity rise and our FY '22 results for the shooting period, given our change of balance date. With me in the room is Richard Milsom, who is a Director of New Zealand Rural Land management; and Xavier Lynch who is an Executive and the manager. We've got a lot to cover. So I'll let Richard pack straight into it.

I'm Richard. Good morning, everyone. Thank you very much for joining us. 2 things to talk about today, and you should have seen our 2 presentations that have been released, but we'll be sharing them on screen if you haven't had a chance to look at them. Our full year results, which reflect a 6-month change in our balance date and secondly, a capital raise to finance the previously announced acquisition of the Forestry Estate at Manawatu. I'll start the presentation with the capital raise, given that it's the more material announcements today. There's quite a bit to go through. So the results part I'll just summarize at the end. Before we begin with our slide deck on the capital raise, I want to summarize 3 key themes for our capital raise presentation. Firstly, these Forestry Estates are highly accretive and a very attractive addition to the portfolio. Secondly, we've chosen the most beneficial funding options for NZL shareholders. And thirdly, we're pursuing interesting developments to further form our shareholder register, and we talked to 2 of those. I'll turn to the slide deck, which I'll get [indiscernible] to share, and we can have a look at these sort of 3 key things. If we start on Page 4. Page 4 outlines the key takeaways of the acquisition. And you can see on the left-hand side versus the right-hand side our before and after metrics. Particularly, our weighted average lease term goes up from 9 to 12.1 years. Our WALT increases by 34.4%. Next year's earnings and dividend increase by forecast 17.4%, and we've materially added to the scale of our asset base and increased our diversity, which in turn makes us appealing as a diversified pure play agricultural REIT. And obviously, with that increased diversity, having been purely Pastoral Farms in the past, exposure to the timber and the carbon expected Forestries appealing, as well as the geographical diversification. So in October 2022, we entered into an unconditional agreement to acquire the Forestry Estate, which is Whanganui Manawatu region of the North Island and the estates comprise of 5 individual properties with a total area of nearly 2,400 hectares. We have an unconditional lease associated with that property to a new tenant, which would be for 20 years as the initial term, the lease is CPI adjusted annually. So if we turn to Page 5, as we mentioned before, we've chosen the most beneficial funding option for NZL shareholders, we considered several different acquisition funding options. We've detailed this on Page 21 versus doing nothing and standing still versus what it looked like that we funded the acquisition in 3 different ways. The most compelling for shareholders was to purchase 100% of the forest, funded by 1 to 3 pro rate rights issue. The way that the rights issue will work is, everyone on a pro rata basis will be offered their entitlement. If there is any shortfall, that will be offered to existing shareholders first. If for any chance there was shortfall after that, we have interest from a recent European Roadshow that would take up any placement or rights that were left over after shareholders second has had first option. We would encourage shareholders to take up their rights. NZL considers the future opportunities in the portfolio assets to be quite high quality. We've shown NAV increasing, growing dividend yield in the past and our forecast to continue to do so. And that provides me to the opportunity to -- for attractive, both risk-adjusted returns and a really strong long-term incoming diversity profile. Finally, on this slide, what I'd add is that, we're pursuing quite interesting developments to further form our shareholder register. We've had indications, as I mentioned, from our recent European road show. So we've also mandated pro rata one to assist us in identifying a potential growth partner and what they would look like as they would purchase up to 25% of our portfolio privately as opposed to coming into NZL, it would get easy that we get a chance to recycle some capital, which I could use at the time for repaying debt, share buybacks or growth depending on what look to be the most accretive at the time. Pro rata one, that was taking a bespoke approach to the M&A and capital solution and the appropriate partner must meet specific criteria that closely align with NZL's values and strategic vision. And to date, we've had a reasonable amount of interest from people that would meet those criteria and like the opportunities.

And I'd just add, how do we come to grow longer, will they recognize as one of the top investment banks and agri forestry deals in the world, and we were looking around for an appropriate partner to assist us in that regard. So Richard is quite right in saying that those discussions continue, look, but they take some time. And we started that process in November. So we haven't been sitting on our hands here. We have been very focused on looking at all our capital opportunities. The European Roadshow, I can talk to that because I was there doing it. [indiscernible] real interest. I mean, it shouldn't surprise anyone. I've seen it [indiscernible] they are interested in New Zealand Farm Land. The reason why we're doing with the pro rata, we've always done a pro rata. You'll remember from the IPO days, we said we'd do it pro rata. Rob and I are very firm on that as these rural land company directors that we give the shareholders the first opportunity to participate. It would have been very easy to place the things into this company and which we would -- which we are committed to do under New Zealand Stock Exchange rules. We are not doing that you are here today to get the first opportunity on terms that we think are very attractive and what the additional tariff will warrant in 2025 as well. So that's just the background there. We can take Slide 6 as read in terms of the pro rata rights issue summary, and we can move over to the acquisition rationale now.

If we just quickly touch on Page 6, in case people haven't had a chance to go through the full presentation this morning. It's a one-for-3 rights issue. The issue price is $1. We're looking to raise $38.5 million. That's close to 6% discount to the closing price. There would be one warrant issued for every 3 new shares subscribed and those new shares subscribed are 1 for 3. So effectively a 1 for 9 warrant. The warrant exercise price is $1.20 and the warrants expire on the 30th of November 2025. The style of warrant is an American warrant…

The American, so it can be exercised at any point up to the 30th of November. So not like a European where you can only exercise on expiry date. The warrants will be quoted themselves on the NZX to permit trading in them.

And so the forecast offer price is a discount of NAV per share post of a bulk of 33.2%, and the dividend yield is $0.05 per share. Our range that we're putting out is $0.05 to $0.055 per share. So between 5% and 5.5% after tax divided on the offer price for a book that's going to have a 14-year while CPI adjustments is the long and the shooter really. And just -- we'll just touch on our dividend because this is going to come up in our results. Why are we paying a dividend when we're seeking to raise $38.5 million, we don't -- we understand about returning capital. We listed what the view to be a dividend paying stock. And that's what we will continue to do, we will pay out 95% of AFFO. We are not doing a DIP on this dividend. We had actually very low take-up on the DIP and if any, you have run it, I think that links don't do a pre, they cost money and link shouldn't do a pre bottom way, but -- so we are paying out the dividend with a record date of the 7th of March and Page 8 of the [ Teams ], that's right in the middle of the rights issue for the retail period. So and these just can make their decision of what they want to do with the money. And so we're putting it back in your hands as to shareholders and we'll -- and you decide what you want to allocate as capital in this particular raise. So Page 7 talks to the acquisition rationale, the highlights and the impact. There is a substantial increase in our weighted average lease term with this transaction. There's a substantial increase in the diversity of our tenant base and the geographical and asset diversity. It pushes out nearly 30% of our leases to expire by 2043. So really long dates for the lease expiry profile. And there's a nearly 17.5% increase in AFFO per share and dividend yield per share. So a really highly accretive cash flow and dividends, any growth story there.

And by the way, if you think back to our previous acquisitions, this -- this is the most accretive transaction that we've turned up with. And we heard you the last time. We've won some dairy farms. You've seen that were very accretive, that were very accretive about NAV, when you look back at what we will be building it with the sell an evaluation process, but this is a very earnings accretive transaction. And I would say look at our history in acquisitions -- there is a really important thing to look at on where our assets have been regarded when we put across these lease structures. And I don't know whether valuers are going to sit on this forest. I know what we're tame for it. But I can tell you that we have a history of adding value and acquiring these assets with the lease structure and bind very well. So it is just not the FO accretion that one should think about.

Yes, buying and leasing well.

So Page 8 is the equity raise details. I'll leave if one can work through this by itself, and we're really happy to take calls or e-mails if anyone's got any questions after the [ Sweden arm ]. Page 9 is the use of funds and balance sheet impact, we're looking to raise $38.5 million. We will add debt to that of just over $25 million, which brings us to our total purchase pricing costs of the asset. Page 10…

Just on the gearing, 36.3%. We -- when you think back to when we listed, we were saying 30%, we have the facility with [ Rabo ], that allows us to go to 40%, the Board as we've worked through growing the company has amended the policy, so we can be up to 40% gearing, we understand the current environment and the rising interest rates and things like that. We will be working to lower that gearing over time and as we can back towards the 30%. I can say that to you front as a Director. But we think equally we had the challenge of continuing to try and grow the company and then to challenge between equity and [indiscernible]. So Page 10 just shows the pro forma balance sheet use of funds and the balance sheet impact. Page 11 talks to the equity raise timetable. I'll leave you to look through the detail of the on the equity raise timetable. Page 12 and beyond show the -- Page 13, 12, 13 and beyond, show the pro forma portfolio, so you can see the growth in geography and the diversification by Forestry. And even Page 14 shows a pro forma tenant concentration, lease profiles that you can see tenant concentration of decreasing days of lease expiry is going up quite some way. And then Section 3 provides timber and carton market outlook, and then we move into a key risk section. So at that juncture, what I might do is open up for questions if anyone has any on the -- on the equity raise presentation. Okay, Arie?

Good morning. First question is just on the Forestry transaction. So just first one -- you can't hear me? I'm not on mute.

Is your volume -- is your volume low?

Can you hear me now?

No. Next one [indiscernible], see if anything can come?

So you can't hear me?

Yes, are you -- Arie, can you -- we just unmuted you now, can you -- are you speaking? Just be with us for a minute, while we will through…

Hello, can you hear me now?

[indiscernible].

Sorry, I can hear you, and you can hear me?

Yes, we can hear each other. We could have a conversation between the 2 of us.

Yes.

Hopefully, they figure it out.

Yes, yes.

[indiscernible] Yes, I can only hear. Can you hear us now? So we are having trouble hearing you. So we will hear [indiscernible] questions and will answer the line. So the first question is from Craig Tyson. While warrant is an attractive feature, how can it be such valuable warrants if you continue to raise equity at a large discount to NAV? Hopefully, any raise done in the discount to NAV and I'll note that this is done at a less than 10% discount to NAV. I suppose what I would -- my answer to that would be that past history is anything to go by, there might be and there may be further NAV accretion or increase to be had. Secondly, we think that the AFFO accretion profile of this acquisition will make the -- we are a small company and so we have overheads that do -- that are flexed in today's accounting, et cetera. And so the more income fall to the bottom line, especially when you're talking about an 8% cap rate, we think that, that might have a positive impact on share price and investors appetite. And so there is an element of doing an accretive deal is to increase share price and increase NAV. So it's trying to balance especially at a small discount to the -- what we think might be the accretion of both the free cash flow and the NAV profile. So hopefully, the borrowing remains worth a reasonable amount. Sorry. Just a question from -- and this is just a question from one of the participants. Can you consider a revaluation holiday for acquisitions besides 3 years? This would be a net gain for the company management co and shareholders? Unfortunately, we are required to revalue the assets every 3 years, every 1 year, I'm sorry. And so -- but that's something that I'll go away and look at and come back on this specific question, but I don't think we are limited to do that. I think we moved away under IFRS, if you remember in the old days, that companies didn't revalue their assets and then revenue their assets every 5 years or 3 years. And now because of IFRS, we are required to revalue our assets every 1 year. But naturally, I will check that. There's another question about the option to divest the farms under core arrangements. And at some point, the strike price of those gets towards the valuation of the farm, because at the moment, we own those to calls for much less than the farms actually worth, and it would make sense for the tenant to eventually exercise the call as opposed to our book. That particular tenant has had quite a favorable ruling in a dispute that they had with [indiscernible], we would expect in 24 months or thereabouts that the tenant might call that farm because it would make sense. We continue to talk from about. They just want to see that finally end of the litigation and possibly a big cash payout on their way. Otherwise, they're, of course, able to refinance it because one of the farms, they would owe us about $13 million for $20 million farm. So we think that might be an 18 to 36 months, profile time profile on it. Craig Tyson has a 39% discount to NAV pre raising, yes, you're right, it's a 32% discount post raise, and that is absolutely be true, I suppose, might add 1 for 3 that's the people not participating, that would be a less than 10% dilution to NAV or a over 17% at accretive transaction if the -- if we are able to add any value to this transaction by buying land and treating it, adding a tenant and leasing it well that increases the value, some of that net dilution would be offset. And I suppose it's really important to compare that with the base case, which is doing nothing at all. And so doing nothing, not raising any capital, not buying as far as repricing capital, or looking at one of the other options when you compare them, and that's why we detailed it in the presentation is, we believe that this is the better option overall in terms of not buying a forest or buying half or buying 100%. And then we're looking at different funding options, the balance of a sub 10% NAV dilution to a 17% or over 17% annual accretion and some potential uplift, we believe, struck the balance, but I am totally cognizant of your comments. We've got a question. Do I understand correctly that the new forest tenant pays the replant of trees upon harvesting? Absolutely, if they harvest the trees, they pay to replant them like our other leases. There's reasonably onerous terms under which someone would be to be able to harvest the harvesting practices they must adhere to attracting the maintenance so that we have a lot of say and a lot of input into that. But that is unlikely to get intensive them wanting to harvest the trees because they are in the business of harvesting carbon. Yes. Well, they do both, but the highest economic benefit at the moment and is forecast to be so the trees will likely stay in trees with some regeneration -- a lot of regeneration of native underneath them. Any further questions from anyone in the Q&A section? If not I will turn to our results presentation and then ask for -- and I ask for questions following that. Xavier, if you'd share the results presentation.

So as mentioned at the start, there's quite a bit to go through this morning, so I'll just summarize the second presentation, which is the results, which has also been announced. This is a somewhat technical change, just being a change in balance date. And of course, we revalued our portfolio 6 months ago. All of these valuations are done by an independent valuer using comparable market transactions. What we've seen pleasingly is just a modest 1% uplift in value, which against the backdrop of where interest rates are, we're taking in commercial property. We're not surprised with, but it's pleasing nonetheless. If we turn to Slide 4, so the key highlight change in balance date, which is to -- next Slide 5. If we turn to Slide 5, the key highlights from this result of the change in balance date, which is a desire to have our financials and year-end process complete, if we were to buy or sell any assets in the June year, it means that it's cleaner from a banking perspective. And the agriculture time line perspective, as I've mentioned, we've got just under $300 million worth of assets, and we saw an approximately 1% increase in value from our June balance date. Our net growth per share when you're looking at it in 12 months periods, which is probably the appropriate way to look at it, especially with post reform, as you get one group of comparable market transactions to look at, has been just over 20% and where you would have the resilience of the portfolio, and I think it demonstrates a bit of quality against the market crop. From Slide 5 on it, there's quite a bit of detail, so I'm just going to hit the high notes on each slide and then we can get into questions about the results. So if we just keep collecting through that the acres up from the last period. On the next slide, you can see that P&L is positive, but it's down in the last period because of the last period, obviously had the revaluations that we saw. So in terms of cash earnings and lease income, that's all increases, the last 6-month period. We keep moving on balance sheet. We're seeing approximately a $4 million growth in total equity, which is attributable to a small increase in our portfolio of assets. Our debt summary, so this is probably something to just touch on. We are just about 35% in terms of our gearing average, our gearing ratio, our weighted average cost of interest is 5.6%. Now we do have our -- we do have a hedging profile that you can see on the bottom slide. So debtor facility expiring, debtor facility expiry date in terms of our hedging profile, we have put in the center or hedging roughly rolling off 25, 26, 27 -- and our margin is about 2% to our marginal cost of borrowing at the moment as BKBM plus 2%, keep moving through. In terms of total returns, you can see on a NAV per share at from listing, it was just below 10%. And then from December '21 to December '22, it's just under 22% per share, plus on top of those net per share growing numbers, we can see our growing dividend profile as well, which we expect to continue to grow. We are currently forecasting about an 18% growth in lease income starting in July 2024, which is when the first batch of our 3 yearly CPI rent increases kick in. The important aspects about a different asset class, especially is a slightly more specialized one than past farms is, it comes with a annual CPI rate increase versus a 3 yearly ones. So that's another attractive part of the forestry acquisition. If we keep moving on. This is the portfolio -- this is the portfolio, this is the thing that obviously we've touched on that earlier in terms of how the portfolio changes is the tenant concentration as at 31st of December, and you can see the lease expiry profile. As Richard just said, [indiscernible] the CPI increases start to kick in from '24 onwards on the initial farms that we bought. And in terms of just going through here, we're into the next section on the operational update. And so can you just scroll through and we'll talk about this. As Richard touched on it, in terms of [indiscernible] we've engaged in, we engaged them back in '19 back around looking for a long-term partner for us, and I stress the long-term nature that is a very bespoke opportunity, and this is what [indiscernible] specialize in. And so they continue to work on that. We continue to have discusses look, maybe [indiscernible] between capitalistic you guys know that as well as I do. But I'm quite optimistic in that process over the next 6 months, given the initial conversations that we have had. And on the coupon side, at least material matters, but we continue to map our current portfolio and there are some areas of marginal or non-productive land that we can as harvest carbon creates for, it's not going to materially move the needle than it is just incremental earnings. All the tenants are compliant and in lots of cases, well in excess of our key tenant covenants so the amount of equity cover we like to see the amount and mandated on their leases and also the interest cover terms are very profitable. They are turning on a lot of cash at the moment. And so that's pleasing to see, especially in an environment where there's a bit of cost inflation. I think no major health and safety effects for any of our tenants and all that properties are unaffected by the recent storms in New Zealand and our Forestry acquisition was [indiscernible] back on flow about 10 days ago. In terms of the outlook, I won't labor this point. I've touched on July 24 we see the first round of CPI lease increases of about 18% based on financials. We think that, that will be an easy way for tenants. Our AFFO forecasts previously announced was between 4.9% and 5.4% without the Forestry acquisition on a like-for-like basis, we'd remain within this range. Post the Forestry acquisition, we obviously would see a material upgrade to that. The FY '23 after-tax dividend is forecast to be between $0.04 and $0.045 and the 24 after tax developments forecast between $0.05 and $0.55 per share. I've touched on the CPI rental review part of the slide. We've got 40% of our debt hedged at the moment. And we've shown a new slide that details our cost of borrowing, we would look to hedge further debt with the Forestry acquisition. We will hedge 100% of the Forestry acquisition, just for your clarity. And so in summary, just to pretty run back to the base case, well NZL provides exposure to really favorable industry dynamics. There is a track record of value-add in terms of buying well and leasing well. The total returns that we've been able to achieve to date in terms of net growth and dividend, which both which still growing have been attractive, especially on a risk-adjusted basis. Our current 9-year wallet is appealing that would stretch to a over 12-year wallet with the Forestry acquisition, which we think is quite long, especially in a hard asset class like only land being an ground resort and there is a significant growth opportunity for NZL, especially with the type of asset and type of leases we're buying, and we continue to have a reasonable amount of interest from foreign investors both on NZL and there is a minority holder and assets themselves. And with that, I will take further questions. Sorry, unfortunately, we can't get sound going out, I don't know what's happened to the systems. So if you can just type in any questions. So first question from Arie is, on the Forestry transaction, outside of the increase in base management fees in the new minimum of costs [indiscernible] to absorb post getting the Forestry assets. We've seen some decent post-acquisition revaluations previously post the acquisition. What are your expectations on how the Forestry assets will value up our stake position, so we should -- so we -- so should we expect performance fees in FY '23 post the acquisition of around 10% of that? Richard?

So we do think that the -- we do think by the time we've got the lease and such a long-term lease and quite an attractive rate on top of the BLM trees that we're buying. We do think we'll see a valuation uplift. We think it could be in the realm of $5 million to $10 million on base cost of 63.7 by the time you include costs. So if you bought $5 million worth of value increase with the lease, but we're not 100% sure on that. And yes, you would -- there would be a performance fee payable in shares at a 10% of that. On your hedging question, about $40 million for each of 2022, how long, how much hedging in 12 months? So we've got 11.4% of our debt or $12 million worth of debt is due for expiry in May '24, 17.1% of debt or $18 million of debt is due for expiry in May '25 and another $11.4 million worth of debt is due for expiry and 31 May 2026.

So Arie again, a question, equity raised in European Vista process. Can you clarify firstly on the equity raise. If there is a meaningful shortfall on rights issue. What of the following is most likely? You buy 72% of the forest, you exercise put options for $20 million of 2 DRI funds. You place shares to European leases at $1 with warrants. Look, I mean there's a material -- there's a meaningful shortfall on the rights issue when in place the shortfall to investors, whether they be domestic or European. As I said, we have strong indications out of Europe that people are interested in this. In terms of the next preference would be or the next option would be. We always build into what the safety ball with our tenant that they could -- that we could call them to buy up to 48% of the asset. Now they actually -- I think this is quite an attractive asset. We would just work down through on Page 21 of the equity raise. We would just work down from the most attractive option to least attractive options. So you can see in terms of earnings accretion versus dilution of the most attractive options to buy 100%. So that would mean that we would place the European investors at $1 of the warrants as the first option if there was a shortfall. Second option would be to buy 52% of the forest. And the third option wouldn't really come into play because we have that underwrite from the tenant through who would like to own New Zealand [indiscernible].

Arie, yes, the 2 dry funds under production, they will be unwounded at some point in the future. What the time frame is on that is slightly unknown at the moment, but I think it happens sooner rather than later and sooner they -- in the next 12, 18 months.

His second question was, what's the process to sell down 25% of existing assets to a cornerstone investor? What are your bottom lines on this with regard to price, you'd be willing to transact that versus book values on the assets? Is it cherry picking? Or is it all of the assets? How will the deal be structured with regard to fees paid by outside investors? Is there any consideration being given to how -- to how [indiscernible] manager being considered as part of the transactions that would see assets sold. So I'll work through those one by one. The bottom line is in terms of this year regarding price would be that the starting point would absolutely be current valuation or book value, although we would have to consider the value to shareholders at the price we in that transaction forward. Starting point is obviously at or premium or small discount to current valuation. No, it's not cherry picking any assets. That's 25% of all of the assets and 25% of further assets they have the right to participate in. How will the deal be structured with fees paid by outside investors? So in fact, the investors would pay fees themselves for their 25% and NZL will just continue to pay the normal fees that they do on at 75% bearing in mind that would have because fees NZL is charged on a net asset value basis. and on deal by deal, you're just charging on a smaller net asset base. It's not like NZL would be left with a fixed fee and I need 75% of the income. Everything scales down on a pro rata basis because it's all done on NAV. Last question, 18% increase from the 1st of July 2024, appreciated visibility on the end of tenants P&Ls, but can you stand by your confidence and stability of farmers to its old CPI? You're over halfway through that inverse first to what discussions are you having to ensure they are prepared for high double-digit rental growth and what they say? So every 6 months, we have to check with that. I suppose to be an official thing about our tenants [indiscernible] large interface, so they have -- we could ask by them every year when they're doing their budgeting and planning what CPI, can I just confirm that cause and so we know that they are forecasting only 3 and 5-year plans, they keeping an active tally of what current CPI growth is going to look like for the leases. So we're confident they are across that. Secondly, we're confident with the margin that they have between the cost and milk price. If you want to mention the milk price is, $8.50 for example, is almost $0.30 of stock trade stock income per farm. So with milk prices $8.50, the farm had a $9 income or leases where approximately $1.35 to $1.50 per kilogram of milk solids, in some cases, they were lower, what we'd expect to see with an 18% increase it moves to $1.72 per kilogram of milk solid, of the revenue that is eaten up by the lease, that's less than 20% of their income that's eaten up by lease it might move from 15% or 16% to 19%. But based on the margins, the free cash flow at the moment and especially in an inflationary cost environment that we expect will start to take a breath and we think they've got plenty of buffer and we know that they're planning for it.

I think anyone else would like to teach me through some questions and this is -- this from [ Mathias ]. Are you allowing shareholders to subscribe for extra shares beyond their entitlement? The answer of course is and for rental business, there is -- you can subscribe online by the link or so that is going live today or is going live soon. And there is over -- just like we did last time, there's no subscription option there. On the institutional side, there are -- and the forms that we have seen or are sending, there is a applied sort of restriction in that. So everyone is getting a chance to apply beyond their retirement and express an interest, and we will look at the numbers and come back to everyone. In terms of a question again on European investors, and what is the impact on [ RIR ] rules, you'll see in the back of the results presentation right that where we put it in the edits. So I put it there. By the way, every time. So if you're always interested in this number as at the 31st of December, our foreign ownership is 22.41%. So as you know, with the list of vehicle like ours, we can have up to 49.9% ownership. So we have to paste the -- to take in European investors and diversify our shareholder base. I've got no more questions on the text. Are there any more questions from anyone anything. And feel free to teach me, my mobile is 021928262. For those of you that don't get it, 01920262, and I'm really sorry we can't hear you today.

Yes, we are too much right at the 45 mark to run as well. We haven't had any more questions come up on the Q&A. But like Rich said, really happy to take questions, I think, on the announcement, both of our phone numbers and e-mail addresses are on there, really happy to talk to anyone and appreciate everyone joining the call this morning. Thank you very much.