Social Housing REIT plc (SOHO.L) Earnings Call Transcript & Summary

First of all, thank you ever so much, everyone, for making the effort either to come in or to dial in. We understand that there's an awful lot going on in the market at the moment, and we will try and keep this as brief as we can this morning. We have an unusually number -- unusually high number of folks dialing in today, understandably. So I would just ask, could people please mute their phone, and if possible, until the end of the presentation? And then after we finish, we'll be very happy to take questions, try and keep things orderly. So the presenting team today is, so myself, Ben; Max Shenkman, who lots of you will be familiar with, who is a partner and Head of Property Investment at Triple Point; and Isobel Gunn-Brown, who is the CFO to the REIT and a partner at Triple Point. Just in terms of the agenda, I'm just going to run through the highlights of the results and then hand over to Max to talk about some of the operational actions on the ground and engagement with the regulator and so on and Isobel will go through the financial results. Now before I kick off the -- looking at the highlights, I just wanted to talk about coronavirus and the impact that, that potentially could have and what steps are being taken to mitigate that. We expect that, that might be a question so we thought we'd tackle that upfront. So the first point is our engagement with housing associations. Two weeks ago, we started talking to and working with them to understand how prepared they were for the impact or effects of coronavirus; and secondly, to look at their policies. And it's fair to say that the range of preparedness was fairly wide as between the number of different housing associations we work with. So what we are now doing is trying to roll out what we see are the best practices that we have seen from a number of them to a more wider audience of housing associations that we work with. And just to give you -- without going into all the detail, to give you an idea, that is steps such as before the 4 members of the housing association go around to a property to carry out maintenance. It's carrying out a risk assessment to establish whether or not there is either a high risk or a low risk of residents having the virus and, indeed, if people in the house do have the virus. If that's the case, then nonessential maintenance works will be postponed, but essential maintenance works will still go ahead. But there are strict protocols about the use of personal protective equipment and other procedures to minimize contact or risk of picking up the virus. The -- and so as I said, we are sharing -- it's been quite nice to see collaborative effort across the sector, and we are now trying to share some of these ideas with other housing associations that might be less prepared. The government in the budget earlier in the weeks announced some quite extraordinary measures to help -- well, support the country but have consequences or, knock on positive consequences to the sector that we operate in. So most notably, the GBP 5 billion emergency response fund, some of which will filter down to local authorities in their support and help for vulnerable, young people. And then, of course, there are a number of different -- good morning, everyone. Sorry. Good morning, everyone else who's just joined and has just come into the room. I have just started with -- we thought we'd give an update on the impact or risk mitigation around coronavirus, and we've just talked about the steps that housing associations have been taking to deal with that. And now -- so the government as well as the GBP 5 billion emergency response fund, they put various measures in place to help protect SMEs that you will all be very familiar with. And then finally, just in terms of Triple Point as the investment manager, 6 weeks ago, we tested whether or not -- or how good we would be at all working from home at the same time. And over the last 6 weeks, we have rolled out additional infrastructure in the form of laptops to people in the business who didn't have them and have also put in place new servers, both physical and virtual, to ensure that the 125 staff at Triple Point can all work simultaneously from home. And in fact, our default position now as of today is that we've asked all staff to work from home unless they need to be in for essential purposes like this, which is why we're here. So that's probably all I can say on that at the moment. It's a fast-moving situation. But hopefully, that's helpful. I will now just move on to the highlights, the first 2 pages of the presentation, Pages 4 and 5. So as a reminder, the mission, the goal of SOHO is to provide good quality homes to vulnerable, young people across the U.K., and we do that for 2 reasons. The first is we -- providing a home in a community that gives independence produces a better tenant outcome than the main alternative, which is institutional care homes. And indeed, the majority of our tenants come from care homes. And the second driver behind doing this is there are really quite significant cost savings for the treasury and for local authorities in moving people from care homes into independent specialized supported housing. So those are the 2 drivers behind it. Setting aside the slightly volatile nature of the share price over the last 5 days, we were really delighted to present these results. So we have just continued on the trajectory we set out on, which is to buy long-term, sustainable, good-quality properties that enjoy the support of local authorities. So during the year, we purchased an additional 116 properties, which have the ability to house an additional 843 individuals, bringing the portfolio total to 388 properties and beds of 2,728 and over really quite a diverse and broad range of the country, so within 149 different local authorities now. We -- as we have talked about many times previously, we are very focused on additionality. So we think the main purpose of this business should be bringing a new bed into the specialized supported housing sector that was not previously there. So less focus on sale and leaseback transactions and just moving existing beds around. We want to introduce new beds, which will go some way to helping alleviate the problems around shortages. And part of the additionality focus is our work in forward funding and building out new properties. That's working with developers at the point of a whole suite of contracts, signed agreements to lease and planning permissions in place and so on, and we will work with them to build new properties. We have so far done 22 forward funding deals, 11 of which have completed, and the rest of them will complete through 2020. And as they complete, they will start to generate income, and that will start to contribute towards the dividend cover, which Isobel will talk about in more detail. In terms of the valuation of the portfolio, as you can see middle of Page 4, we've had -- the overall valuation uplift is just over GBP 32 million against an initial invested funds of GBP 438.9 million, so a 7.5% uplift, and that has come about as a consequence of our origination strategy. So as well as then focus on additionality, we work with developers to bring new beds into the marketplace. And by working with developers, we can purchase off-market and at a discount. So our average net initial yield is 5.91%. It's gone up by 2 basis points actually since the interims -- or sorry, since the year before. So having -- buying at discount means we get a nice uplift in the portfolio. I would say that the downside of working with developers and buying off-market is you do a lot of transactions. So we bought 116 properties last year, and that was covered by a huge number of individual transactions. But that is the -- but if you're prepared to do that granular level of work, there is a benefit to shareholders. So just turning on to Page 5. So we have been on this very clear path of deploying all the equity we've raised into the business and all the debt we've raised into the business. We were very pleased in October to extend the Lloyds' RCF from GBP 70 million to GBP 130 million, and we brought NatWest into that deal, a well-priced deal. And of that additional GBP 60 million, GBP 29 million left to draw and deploy, which we expect to happen over the coming months. Just want to talk about the -- oh, I'm so sorry, I lost my page. The -- just overall performance then. So the NAV from last December to this December has grown to -- from 103.65p to 105.37p. And of course, that is in addition to the just over 5p dividend that was paid during the period. Finally, the 2020 dividend target will increase in line with CPI, which is pegged to the February CPI number, which broadly matches the underlying leases that we have with the individual registered providers. And that inflation number, I believe, is posted by -- is posted in the next couple of weeks. So we will inform what that dividend target is in due course. And then finally, since the year-end, we've acquired a further 7 properties, 91 -- capacity to house 91 people for GBP 19.3 million. So overall, we're very well deployed. We haven't got much cash left to spend. We're really pleased with the quality of the portfolio and its performance, and Max is now going to talk in much more detail about other operational concerns.

Well, thanks, Ben, and good morning, everyone. I'm going to kick off the operational overview part of this presentation by talking you through some of the investment highlights of the last 12 months to do 2 things. Firstly, to show you some of the schemes we're most proud of, but also to talk you through how SOHO's portfolio has evolved and developed over the last year. So starting at the bottom left-hand side of this page, you can see in April that we started work on a flagship scheme in Edinburgh, and it's a flagship scheme for 2 mandates. Firstly, it's our first Scottish project. And secondly, when completed, it will be reflective of the highest quality of accommodation available to vulnerable adults through supported housing. It was commissioned directly by Edinburgh City Council. It's going to cost over GBP 5 million to build. And when built, it will contain 24 individual one-bedroom flats that will house young adults with learning disabilities and often also physical and sensory impairments. Now we're working on this scheme with HB Villages. That's the developer that we know really well. We've been building schemes with them for 5 years, and they typically produce a fantastic end product. We're obviously monitoring construction closely. It's due to complete in December. And at which point, it will be commissioned by the local MSP. In May, we bought a portfolio of 10 properties located in London. Now in London, as you can imagine, newbuild sites were in relatively short supply, and so what we've done here is buy existing properties and then adapt them to make them suitable for supported living, and that does 2 things. That opens up or creates much needed homes for vulnerable adults in the capital whilst also increasing our portfolio's exposure to the south of England. In September, we bought an existing operating portfolio of assets. Now that, as Ben was suggesting, is unusual for us because, normally, we like our investments to be additional, i.e., creating new social housing stock. But here, we knew the care provider/owner's portfolio really well. They're high-quality assets. And more than that, by buying these assets, it enables us to separate out the provision of care from the provision of accommodation. And that's really important because that's something that the regulator of the care sets, the CQC, is really hot on because if anything goes wrong then with the care, and there's nothing to suggest that anything will go wrong, but if it were to go wrong, you can then just bring in a new care provider without having to further destabilize these vulnerable tenants by also making them move home. And then the last point on this slide is that, as Ben said, we bought an extra GBP 60 million worth of capital at the end of the last year for extending our RCF. And that's important for 2 reasons, for the reasons that Ben mentioned around gearing and dividend cover. But also certainly, from my point of view, this capital enables us to continue to develop brand-new supported housing homes, which in turn means that we can take people out of institutional care environment and give them the dignity and independence of having their own homes, putting them back in the community. And the point is that without this capital, it's hard to see how these new homes and these better tenant outcomes were being unlocked because there isn't really much grant funding available for this type of accommodation. And the large housing associations that can build up the right balance sheet don't tend to want to focus on supported housing, and that's why we believe that private capital has a vital role to play in ensuring that the U.K. can meet ever-growing demand for supported housing. So if you turn to Slide 8. This slide shows the process by which that capital finds its way into high-quality properties. I'm not going to go through it step by step, but what I do want to -- but the point I want to make is that the social impact that these properties have is inexplicably linked to the financial underwrite and the returns they generate. Because if you buy a really high-quality asset that's been developed in response to identified local authority demand and that asset is adapted for the individual requirements of the tenant it's going to house. And it's once you get those tenants into those properties, you make sure that the RP maintains that property to a high standard, and the care provider provides these tenants with the support that they need. Then you'll begin to unlock fantastic tenant outcomes in terms of independence, in terms of better health and in terms of their ability to engage and interact with the community. And if you do that, you'll drive long-term demand and long-term occupancy of this asset. And it's that, that underpins the sustainable returns that these investments generate for our investors. So turning to Page 9, you can see Cornmill House, and that's a really good example of this in action. So Cornmill House is actually the first property that the REIT acquired back in August 2017. Again, it was a newbuild asset. It contained 16 individual one-bedroom flats that was opened by the Lord Mayor of Leeds back in August of that year. Now we routinely inspect all of our properties from a sort of physical asset point of view. But what we also decided to do here was a couple of years after we acquired the asset, go back and interview the tenants to see if this property was having the impact on their lives that we hoped it would when we acquired it. And in the annual report, you can see a fuller transcript of those interviews. But here, we've obviously just had to include quotes but also photos of Lee, Rachel and Steven. And if you read the interviews, and also you can see it in this these quotes, there are some common themes. So there's a common theme of independence, of this accommodation, enabling them to do things they didn't previously think possible where they were previously housed. There's a really common theme of them being able to put down roots and create a long-term home which is reflective of their personality. And then finally, and really importantly, there's a theme of them receiving the support they need in order to become increasingly self-reliant. So of course, for us, it's incredibly gratifying to see the impact that these properties are having on the lives of the tenants. But what we want to do going forward is emphasize the human element of our investments more and more because so often, it can get lost in the priority and focus on financial return. And going forward, we will be reporting and measuring the social impact that our properties have. So if we turn to Slide 10 now. At the interim results, I talked about the political backdrop to supported housing, and I made the point that this asset class benefits from cross-party support because, as Ben was saying, both better for the tenant and cheaper to government. That cross-party support remains, and it manifests itself in the transforming care programs that put statutory pressure on local authorities to move people out of institutional care and put them back into the communities, put them back into independent living opportunity. And it's that pressure that's driving excess demand for this asset class. So by 2025, there's forecast to be 45,000 people or vulnerable tenants who could benefit from supported living but who don't have best spaces, who don't have enough of this type of stock in the U.K. But what's changed since 6 months ago when we gave the interim presentation is that in the U.K. now, we now have, putting sort of current events to one side, a lot more political certainty. Obviously, Boris Johnson won a decisive victory back in December. And what that means for this fund is that there is increasing clarity around what this government's housing policy is going to look like over the medium term, and there are 2 things I want to draw your attention to. Firstly, it looks like that they're going to pledge ongoing support for increases in housing benefit, which is obviously really helpful for the social housing sector as a whole and all of the housing associations that manage social housing properties. Secondly, and this was announced, obviously, in the budget of this week, they're going to put GBP 12 billion to work through an affordable housing building program that's due to ramp from April 2021 for 5 years. That is a lot of money, but the focus of that expenditure is going to be on promoting home ownership and also reducing the number of people on homelessness registers in U.K. And so it seems to us that there will remain a very clear funding gap in the supported housing sector. And as I said on the first slide, we feel that private capital is ideally placed to bridge that gap. And that's why we continue as a manager to engage with treasury; to engage with department of housing communities and local government; to make them aware of the capital expenditure and operational savings that our model unlocks for them; to get their feedback on their structure; and I think probably most importantly, to speak to people responsible for making sure there's enough supported housing in the U.K. to make sure we're building the right properties in the right places. So looking forward, we're going to continue to engage with ministers, MPs and civil servants. And we've also commissioned -- we're about to commission what we hope will be the largest ever data gathering exercise supported housing market has ever seen, and I'll talk a bit more about that later on in the presentation. And then the only other point to make on the sort of political horizon is that the government is due to publish a long overdue social -- white paper on social care. And we suspect that in that, they will advocate increased financial support for some of the most vulnerable members of society, which is really important because, ultimately, it's the local authorities that contract with the care providers and pay for the care that our tenants receive. On Slide 11, you'll see that we've continued to steadily deploy more capital into high-quality supported living assets. As Ben said, this is predominantly done by working with developers and acquiring individual assets. I think it's really important to recognize that we remain highly selective. So we've turned down over GBP 600 million worth of deals that sat within our investment criteria, but rents that were too high or lacked commissioner support or the assets were of too low a quality for them to be attractive to us. Going forward, we're at the stage in the sort of deployment cycle where we have relatively little capital left to deploy. We've spent most of the equity raises and the debt raises we put in place. So we've now only got about GBP 40 million left to spend that Ben was talking about. And as a result, we have pared back significantly our pipeline because we don't want to, a, overcommit to developers and then let them down by not having the funds to complete our proposed acquisitions; but also, secondly, we don't want to rack up huge amounts of costs on properties that we ultimately don't end up buying. On the next slide, Ben talked a bit about forward funding. I guess the sort of additional points to make here that we've got GBP 34.7 million worth of capital committed to ongoing schemes. As a fund manager, we've been forward funding infrastructure and property developments for well over a decade now. So we're pretty well versed in terms of what you need -- what protections and structural construction you need to put in place to mitigate construction risk. So that's why we only operate under fixed price contracts. We defer development profit until the end, and we make really effective use of both internal and external surveyors, and those mitigants are paying off. We've had no major issues on any of the schemes that we have worked on over the last 2 years. And in fact, quite the opposite, we're beginning to see the fruits of our labor, and you can see fantastic schemes being delivered here in the second half of that slide. On the next page, you can see the various adoptions you might find in one of our new build properties, and they're pretty all encompassing. So you've got everything from sort of the obvious, such as wheelchair, ramps and non-stick flooring, into the much more technical, such as hoist systems and full wet rooms and height adjustable countertops. All of these adoptions are focused on promoting greater self-reliance for our tenants. On Slide 14, you can see a breakdown of our portfolio by geographical spread. You'll notice that the vast majority of investment that we've made over 80% or over GBP 380 million has been in the midlands and the north of England. And this is obviously very much in keeping with the current political agenda to see private investment, not just focused on London, but it's now spread evenly throughout the whole of the U.K. On Page 15, you can see the portfolio split out by approved provider or housing association. We haven't increased the number of housing associations we leased through this last 12 months. We've instead chosen to strengthen our existing relationships. And if you turn to the next slide, I think that's kind of reflective of what's happened in the housing associations on Slide 16, housing association market overall in the last 12 months. We've seen the businesses that we work with focus on consolidation, focus on portfolio optimization, focus on improving risk management and focus on increasing financial strength. And this period of consolidation and slower growth comes off the back of several years of really quite accelerated growth for some of these businesses. Now it's important to recognize that, that growth was driven by increases in local authority demand, which in turn was driven by the statutory pressure that local authorities are under to build or to find more of these assets to take people out of institutional care. But unfortunately, in a minority of cases, the increase in the size of the portfolios managed by these housing associations was not reflected by a corresponding increase or improvement in governance, compliance and risk management. And so the regulators see fit to issue judgment and notices in relation to a small minority at housing associations that operate the lease model in the specialized supported housing sector, and I'll talk a bit more about the regulator on the next slide. But for now, I want to make the point that housing associations are absolutely sitting up and listening to the increased regulatory scrutiny they are under. Certainly, they have the associations that we have largest exposure to have made real tangible improvements over the last 12 months, such as appointing 46 new Board members, such as diversifying ownership structures, such as focusing on occupancy and property management. But there is still work to be done, and a number of the housing associations in this sector need to make further improvements over the next 12 months. So we can expect further commentary from the regulator. And we, as a fund manager, will continue to work with those organizations to help drive change and drive improvement. Turning to Page 17. Just talk a little bit about our engagements with the Regulator of Social Housing. So we engage with all levels of the regulator of social housing. We recently met with the CEO, Deputy CEO and the Head of Strategy. The regulator has made it quite clear what risk they are most concerned about and what risk they think that investors and housing associations should be conscious of when either investing in or operating this model. And it's our job to work with the regulator to help them get under the skin of the sector to understand the nuance and the detail of their concerns. So again, that we can drive change within the organizations that we work with and also that we can reflect on our model and see if there's anything we can do to adapt it to accommodate some of these concerns. So before I hand over to Isobel, I'll just sort of sum up. So it's clearly an evolving sector. There has been quite a lot of change in the last 12 months. So it's really important that we, as a manager, ask ourselves, well, what are we doing to respond or to adapt to this change? And the first one I want to make is that we've been investing in social housing and supported housing for 5 years now. We are one of the first equity investors into specialized supported housing, and we've always had the view that you learn from every investment that you make. And so our due diligence process is constantly iterating, it's constantly evolving. We have a due diligence tracker that encapsulates everything we need to review, analyze and check before acquiring a property. It now has well over 200 line items, and it will continue to increase in breadth as we continue to learn from the investments we make. As I said, we've commissioned what we hope will be the largest of a data gathering exercise on the sector. That will evidence the size of demand, the health benefits and also the cost benefits to government. And we will use this report to, I guess, further our understanding of the sector in terms of locating where there is most need for these assets, but also to advocate the benefits that private capital can bring and also the benefits of supported housing to the MPs, civil servants and ministers and also the regulator who we'll continue to engage with. We've also looked at how we can evolve and adapt the lease. And so we have included a tenant call option, which means that after the initial term, the tenant can choose to extend for another 20 years. Because one of the issues the regulator had was, well, what happens at the end of these leases? We don't want the social housing assets falling out of the sector because we know that there is growing demand for this asset class, and so we've looked to mitigate that concern by allowing an extension of the initial term. We've also included a change in law clause, which means if there's a material change in housing benefit policy, then there's a potential for that to be reflected in the income generated by the leases. And of course, hopefully, as suggested, we'll continue to engage with the regulator and consider what further evolutions we make -- we could make to that lease. And I guess the final point to make is that we've now spent mainly all of the capital that we've raised. And so our focus over the next 12 months is very much going to be on portfolio optimization, and that's going to be achieved by regular site visits, by picking up on any physical asset problem they might be in and making sure that housing associations fix those problems and sometimes working with housing associations to fix those problems. As I said, working with the housing association and regulator to drive improvements and performance, working with care providers to make sure they provide high-quality care into our tenants. And then finally, engaging with local authorities to make sure that the properties that we own are meeting their needs. So I'm going to hand over to Isobel now, who will run through the financial sections.

Thank you, Max. If I can ask you to turn over the page to the financial highlights. We're pleased to present a very strong set of financial results for 2019. Contracted rental income was GBP 25.4 million and including forward funded and exchange properties not yet income generating was GBP 27.8 million. Today, contracted rental income is GBP 26.7 million and including those assets is GBP 28.9 million. Our IFRS valuation of GBP 471.6 million compared to invested funds of GBP 438.9 million. This represents a valuation uplift of around 7.45% and a yield compression of 64 basis points. This is as a result of being able to acquire good properties at a discount of market. Our earnings per share of 6.75p includes the fair value gain on investment property and the EPRA earnings of 3.39p per share, representing dividend cover of 66% for 2019. EPRA earnings have increased with higher rental income as a result of continuing deployment. Dividends have been paid in line with our target IPO of 5p plus inflation. We have declared our final 2019 dividend of 1.285p per share that will be paid on the 27th of March. The dividend for 2020 will increase with February's CPI, in line with our anticipated growth in property rental income. IFRS and EPRA NAV of 105.37p, if you add back dividends paid of 5.06p, has provided a return to shareholders for the year of 6.78p per share. If I can ask you to turn over to the statement of comprehensive income. So revenue has increased by 84% since last year from GBP 11.5 million to GBP 21.1 million. Expenses have increased from GBP 4.5 million to GBP 6 million, which is due to an increased management fee in line with deployment as we do not take our fees on cash. This also explains the increase in our ongoing charge ratio from 1.58% to 1.63%. The weighted average annual management fee since IPO in August 17 is 0.85% of net asset value. The fair value gain on investment property predominantly relates to acquisitions made during the year, and our finance costs is in relation to the loan notes with MetLife and the RCF with Lloyds, which I'll discuss later in the presentation. Looking at the graph on the right-hand side shows annualized rental income at an annualized dividend cover at the December 31. Annualized rental income includes those forward funded and exchange properties not yet income generating of GBP 27.8 million. This represents a dividend cover of 89%. Today, rental -- annualized rental income is GBP 28.9 million, representing a dividend cover of 94%. To reach full dividend cover, rental income needs to be in the region of GBP 30.5 million. And based on our expectations for deployment, we expect to have a fully covered dividend by Q3 2020. If I can ask you to turn over to the statement of financial position. Our gross assets were GBP 544 million, which includes investment property of GBP 472 million and cash of GBP 67 million, of which GBP 24 million was committed to existing schemes at the year-end. Today, as Ben and Max has said, we have GBP 10 million of uncommitted cash, an undrawn remaining facility of GBP 29 million, meaning that we have GBP 39 million of funds left to deploy. Our total return for the year was 6.5%. This includes our NAV growth and dividends paid of just over 5p. Borrowings drawn at 31st December were GBP 169 million, which represents a loan-to-value of 31.1% against gross asset value. If you can turn over. I've already talked about the growth in NAV being represented by earnings less dividends paid. There is also a small adjustment for share buybacks of 450,000 shares purchased at an average price of 83p. These shares are held in treasury and do not participate in earnings or dividends. Looking at our property valuation again. The IFRS valuation is represented by a blended yield of 5.27%, including purchase costs of 6.06%. The portfolio premium valuation has a yield of 5.1%. It assumes a single sale of the portfolio and issuance purchases cost of 2.3%. Final slide on the financial results is looking at our debt overview. As discussed, we've got 2 facilities now. We've secured the MetLife loan notes and the RCF with Lloyds. Total is GBP 198 million. In October 2019, the RCF has extended to GBP 130 million, providing additional funding of GBP 60 million, of which GBP 31 million was drawn by the year-end. We expect to draw the remaining facility by the end of Q2 2020, in line with our pipeline. At the 31st December, loan-to-value was 31.1%. And fully drawn, this will be in the region of 35%. Thank you. So back to Ben.

So thank you, Isobel. And thank you, Max. Just before we take any questions, in terms of outlook, as you've heard, we're very close to being fully deployed and out of capital. So our attentions will, first of all, move to deploying that remaining EUR 40-odd million into more high-quality housing at the types of off-market yields that we've discussed, but then really the attention being asset management and working with housing associations and care providers to make sure that these properties are operating at the very highest standard. And that's -- so that's at a very sort of operational level. But then big picture, the facts are there is a national shortfall in specialized supported housing. The benefits of it are widely recognized. And the shortfall is growing year-by-year, to Max's point, of shortfall of 45,000 by 2025. Policy objectives support the build-out of specialized supported housing, And there has also been noted, there is a shortfall of other types of available funding for specialized supported housing, whether that is lack of grant money or the lack of the large housing associations operating in this space. So we have to work at this and come up with a solution to find a model that satisfies the regulator, satisfies our investors and satisfies housing associates that we work with because we do need more of this. So we will -- much of our energy will be continued spent with the likes of the DHCLG, who we met earlier in the year, the treasury, the regulator, and trying to publish more data that decisions can be based off. Thank you ever so much for your time for joining us. Enjoy your weekend, and best of luck over the next few weeks. Cheers. Bye now.