Waypoint REIT (WPR) Earnings Call Transcript & Summary

Good day. Thank you for standing by, and welcome to the Waypoint REIT Annual General Meeting. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your first speaker today to Mr. Laurence Brindle. Thank you. Please go ahead.

Thank you. Good morning, ladies and gentlemen, and thank you for joining us today for Waypoint REIT's 2021 Annual General Meeting. Comprising the Annual General Meeting of Shareholders of Waypoint REIT Limited, the company, and the general meeting of unitholders in Waypoint Trust, the Trust. Due to the recent COVID outbreak in New South Wales and the precautionary public health actions by Queensland and Victorian governments, I'm attending today's meeting via telephone from Brisbane, as will our Company Secretary, Tina Mitas, from Melbourne. As it is just after 10 a.m., and I am informed by the Company Secretary that a quorum is present, I declare the meeting properly constituted and open. My name is Laurence Brindle, and I'm the Chairman of Waypoint REIT. Please take a moment to ensure your mobile phones have been turned to silent. Joining me today are my fellow directors, Georgina Lynch and Stephen Newton. Along with Waypoint REIT's CEO, Hadyn Stephens; CFO, Kerri Leech, who are present in Sydney. Finally, please welcome our auditor, Charles Christie, from PricewaterhouseCoopers, who joins us via telephone from Melbourne; and Lauren Sinton, our returning officer with our registry provider, Link Market Services, who is present in Sydney. The Notice of Meeting was distributed on the 9th of April 2021 and will be taken as read. The formal part of the meeting comprises presentation of the financial report, directors' report and auditors' report for the year ended December 31, 2020, as detailed in the 2020 annual report; along with resolutions relating to the reelection of Stephen Newton as director; the adoption of the remuneration report for the year ended 31 December 2020; the granting of performance rights to the CEO, Hadyn Stephens; and some proposed amendments to the company constitution and the Trust constitution. Before we move to the formal business of the meeting, I will provide a short address on key events impacting Waypoint REIT in 2020 before handing over to our CEO, Hadyn Stephens, to provide a brief recap on Waypoint REIT's financial performance in 2020 and also a business update. 2020 was dominated by the onset of COVID-19 in Australia and throughout the world. Although the virus had and continues to have a devastating impact globally, Australia has thankfully managed to avoid the very worst of the pandemic. While COVID-19 impacted Waypoint REIT's operating environment, Waypoint REIT's performance in 2020 was not materially impacted as most of its income is generated from long-term leases with well-capitalized tenants that all of them continue to trade and provide essential services throughout the year. The Board is particularly pleased that Waypoint REIT was able to collect 99.9% of rent during the year, whilst at the same time, supporting 7 nonfuel tenants that qualified for rent relief under the federal government's commercial Code of Conduct. Although Waypoint REIT's performance was not materially impacted by COVID-19, 2020 was nonetheless an extremely busy one for the management team and Board with key events and milestones, including a new senior management team with Hadyn Stephens and Kerri Leech commencing as CEO and CFO, respectively, January 2020 and Viva Energy Australia's sale of 35.5% security holding in Waypoint REIT in February 2020. The debt review event triggered across Waypoint REIT's $1.1 billion of debt facilities as a result of Viva Energy Australia's sell-down, which was successfully navigated at a time of significant uncertainty in global capital markets due to the onset of COVID-19; internalization of Waypoint REIT's management function, which was agreed with Viva Energy Australia in May 2020 and became effective from 1 October 2020; Waypoint REIT's inaugural USPP issuance with around $250 million of 7-, 10- and 12-year notes issued in October 2020 to 9 U.S.-based debt investors; and finally, $325 million of bank debt facilities refinanced during the year. Furthermore, 2020 was a pivotal year for Waypoint REIT in terms of both its corporate and ESG strategy, which are closely related and at least partly a result of a significant shift in the way the world views ESG-related issues, particularly climate change. Our strategy reset acknowledges that there are long-term mega trends that will increasingly impact fuel and convenience operators and landlords over time, with the most obvious trend being the transition away from traditional internal combustion engine to alternative fuel. Although the time frame for this transaction is highly uncertain and is more likely to be a case of evolution rather than revolution, we believe that now is the right time for Waypoint REIT to begin preparing for it, with the focus on, firstly, supporting our tenants as they evolve and adapt their offerings over time; and secondly, ensuring that we own the right sites in the right locations through active portfolio management. Implementing a capital management strategy that is in line with our portfolio strategy is also an area of focus for Waypoint REIT, and we are actively considering a range of initiatives on this front to enhance returns for securityholders. In relation to ESG. Waypoint REIT aligned its key areas of focus during 2020 with the United Nations Sustainable Development Goals, and ESG matters will receive an increasing level of attention in relation to Waypoint REIT's operations going forward. As the landlord rather than the operator of our sites and the triple-net lease nature of our portfolio, Waypoint REIT's ability to directly influence the sustainability of our sites is limited. However, we are in active dialogue with other stakeholders across our portfolio to identify ways we may be able to assist them to improve efficiency and reduce emissions. And we are also seeking to better understand our own ability to unilaterally improve performance in this area. As the owners of Waypoint REIT, our securityholders are naturally focused on the financial returns of the vehicle. And in this respect, I'm pleased to report that 2020 was another very strong year. Distributable earnings per share growth for the year was 4.25%. And Waypoint REIT has now delivered compound annual growth in distributable earnings per share of 4.5% since IPO in 2016. Waypoint REIT delivered a total return of 8.4% in 2020, which was 12.9% higher than the S&P/ASX 200 REIT index, with the reliability of income from Waypoint REIT's essential services tenant base being highly valued by investors in the context of the uncertainty caused by COVID-19. Waypoint REIT's consistent and growing distributable earnings per share has also underpinned significant outperformance by Waypoint REIT since IPO, with a total return of 60% to the end of 2020 being approximately 4x higher than the S&P/ASX 200 REIT index. Despite Waypoint REITs relative performance moderating since the beginning of 2021, the total return performance since IPO is still significantly higher than the index. I would like to extend my thanks to the Board and the management team for their continued commitment to the success of Waypoint REIT; and to our investors, we thank you for your continued support. I'd now like to invite Hadyn Stephens to address the meeting.

Thank you, Laurie. Firstly, I'd just like to touch on some financial highlights from 2020, which was clearly a challenging year for all as a result of COVID-19. However, the nondiscretionary and everyday needs focus of our tenants meant that Waypoint was relatively unaffected by COVID-19 and was able to collect 99.9% of rent during the year. It was a strong endorsement of our business model that we were not only able to maintain our guidance through the worst of COVID-19, but we were also able to upgrade guidance during the year. To that end, Waypoint delivered distributable EPS for the year of $0.1515, representing 4.25% growth on 2019, at the top end of our revised guidance range. Net tangible assets, or NTA, per security as of 31 December was $2.49, representing an 8.7% increase for the year. The increase in NTA was underpinned by $177 million of gross valuation uplift during the year, with Waypoint's weighted average cap rate reducing from 5.81% in December 2019 to 5.62% at the end of 2020. Strong valuation gains during the year also saw Waypoint's gearing fall to 29.4%, which is just below the bottom end of our target gearing range, which we have now revised to 30% to 40% to better reflect what we see as a sustainable gearing moving forward. It was a very busy year in terms of capital management, particularly the first half, as we dealt with the implications of Viva's sell-down of its 35% interest and the resulting debt review at a time of significant COVID-related uncertainty in global markets. The review event was successfully navigated by the team. And during the year, we also refinanced $325 million of debt and completed Waypoint's first USPP issuance. At the end of the year, our weighted average debt maturity was 4.3 years. Waypoint invested $51.3 million across 5 acquisitions and 12 fund-through developments during the year, with the majority of this being settled or committed in the first quarter and lower volumes for the rest of the year as we digested the impact of COVID-19 and focused on liquidity, capital management and future strategy. As foreshadowed at our half year results, noncore asset disposals now very much a part of Waypoint's strategy moving forward, and we exchanged contracts on 2 sites in 2020 for $5.5 million or 14.3% premium to June carrying values. Waypoint's investment proposition remains strong with secure rental income with embedded growth underpinned by long-term leases to top-tier tenants. After taking into account acquisitions and disposals, at the end of 2020, Waypoint owned a network of 470 fuel and convenience properties, with a total book value of $2.9 billion, weighted average cap rate of 5.62%, occupancy of 99.9% and a weighted average lease expiry of 10.8 years. The portfolio is tenanted by world-class operators focused on everyday needs and serves as essential economic infrastructure throughout Australia but with a strong weighting towards metropolitan locations along the eastern seaboard. I'd now like to provide you with a brief update on Waypoint's business year-to-date. Turning to Page 10 of the presentation. I'm pleased to inform you that Waypoint has now resolved all 5 of the leases set to expire in 2021, including 3 fuel leases with Viva Energy and leases with 2 smaller nonfuel tenants. Terms have been agreed on all 5. However, Caboolture and Halfway Creek remains subject to formal approvals and documentation with Viva Energy. The overall result represents a positive rental reversion of 3.5% across the 5 leases, with a 3.8% uplift across the 3 Viva Energy leases. 99.5% of fuel income is now contractually secured until May 2026, with only 2 fuel leases expiring in this period. As I mentioned earlier, noncore asset sales are a key part of Waypoint's strategy moving forward. And as summarized on Page 11, we have now sold 3 smaller metropolitan assets for a combined price of $8.1 million. representing a 22% premium to their prevailing book value and reflecting continued strong demand for fuel and convenience assets, particularly those with long-term leases to strong covenants. As stated in our 2020 results, we intend to sell $20 million to $30 million of noncore assets in 2021, the majority of which are 2026 lease expiries. And we continue to work through our portfolio to identify further noncore assets for potential disposal, seeking to take advantage of the strong current market conditions. As outlined on Page 12, Viva Energy and Coles Express have continued their strong performance seen in 2020 through to the first quarter of calendar 2021. Despite a fall in fuel volumes relative to the same period last year, Alliance volumes continue to improve and reached 61 megaliters per week in March. Retail fuel margins remained strong and premium petrol sales were up 11%, now representing almost 1/3 of total petrol sales. Coles Express delivered same-store sales growth of 6.3% for the quarter, driven by the core convenience categories such as food-to-go, drinks and confectionery and double-digit growth in coffee sales on the back of the rollout of self-service coffee machines across the Alliance network. Finally, before I hand back to Laurie for the formal part of the meeting, I would like to reiterate Waypoint's priorities and the outlook for 2021, as summarized on Page 13. With the resolution of the 5 leases set to expire in 2021, our focus for the core portfolio turns to leasing 2 small nonfuel tenancies in the portfolio, and we continue to discuss potential capital reinvestment opportunities across the portfolio with Viva and Coles. Although we remain on the lookout for high-quality acquisition opportunities that will improve the overall quality of our portfolio, the strength of the direct market at present and the lack of compelling acquisition opportunities means that Waypoint currently has a disposal bias, with our 2021 guidance currently assuming no acquisitions and $20 million to $30 million of disposals during the year. Prudent capital management is also an integral part of Waypoint's strategy, not only in terms of exploring opportunities to diversify funding sources and term-out our debt and swap books, but also on making sure that our gearing and liquidity positions are aligned with our portfolio strategy. To this end, I'm pleased to announce that we've recently secured a new $100 million 4-year bilateral debt facility. Our debt -- our total debt capacity remains unchanged as Waypoint's 2022 expiry was fully repaid, and Waypoint's 2023 expiry was partially repaid earlier this week. Waypoint now has a weighted average debt maturity of 4.2 years, and no debt expiring until June 2023. We are currently investigating options to further extend our debt book via the Australian MTN market in the second half of the year. We're also investigating options to potentially return capital to investors given our current assumption of $20 million to $30 million of noncore asset sales and our selective approach to acquisitions. We will update the market if and when any decision is made in this regard. Finally, our 2021 earnings guidance remains unchanged, with target distributable EPS of $0.1572, representing 3.75% growth on 2020. As always, this guidance remains subject to no material change in market conditions and no other factors adversely affecting Waypoint REIT. I'll now hand back to Laurie.

Okay. Thank you, Hadyn. I'd now like to move to the formal part of the meeting. Before we consider each item, there are a few procedural matters I'd like to run through first. Firstly, this is a securityholder meeting and only securityholders, proxies, powers of attorney and authorized company representatives are entitled to vote or speak at this meeting. Today, we will be going to a poll on each of the items of business that requires a vote. In case some securityholders need to leave before the end of the meeting, I will formally open the poll on all 6 items now, and the poll will be open until the meeting is closed. I will outline the poll procedure now. I appoint Lauren Sinton from our registry provider, Link Market Services, to act as returning officer. Eligible securityholders or their duly appointed proxy or corporate representatives are entitled to vote and have been issued with a yellow voting card at the reception desk. Blue cards are for those entitled to speak but not to vote. Visitors holding a red card are not eligible to vote or speak, but of course, you are most welcome to listen. If you believe you do not have the correct card, please see staff at the registration desk now. Before voting on each resolution, the results of proxy voting received at the close of voting at 10 a.m. on Tuesday, the 11th of May 2021 will be shown on the screen behind me. When you complete your card, please indicate the manner in which the votes are to be cast by placing a mark in the for, against or abstain box for each resolution. I advise the meeting that I intend to vote all discretionary votes given to me in favor of the resolution in the polls. When the floor is open for questions, if you have a question, please make your way to the stationary microphone set up in the room. When called upon, please give your name and who you represent, present your yellow or blue admission card. Please place your completed voting card inside the ballot boxes held by the share registry staff located near the exit of the room before closure of the poll. Are there any questions on the poll procedures? Okay. We'll now move on to the items of business for this meeting as set out in the Notice of Meeting. The minutes of the previous AGM were approved by the Board and signed by myself as Chair. Copies are available should any member wish to see them. There are 6 items of business. Details of each item was set out in the Notice of Meeting. First item of ordinary business is consideration of the combined annual financial report for the company and the Trust, including the directors' report and financial statements for the year ended 31 December 2020, together with the independent auditor's report, all of which was sent out to securityholders on the 29th of March 2021. A copy is also available on the company's website. As mentioned earlier, Charles Christie from PricewaterhouseCoopers, our auditor for the 2020 year, joins us on the line from Melbourne. He sends his apologies that he could not attend in person. Please direct any questions that you have for the auditor through me. As you will notice from your polling cards, there will be no vote on this item. It is a discussion item only. Securityholders can ask questions and make comments about the reports and the management of the company. We received the following question from a securityholder prior to the meeting. The question is, what is the company's strategy regarding the current/future development of electronic vehicles to allow the company to stay competitive and relevant? The answer to the question is as follows. The energy transition is clearly a key long-term strategic consideration for Waypoint REIT and its tenants also. The issue rightfully gets a lot of attention in the media, and there are widely divergent views out there as to the speed and impact of the transition. We believe that the risk of alternative fuel is significantly impacting our portfolio remains a long-term run -- one for Waypoint REIT. Noting that electric vehicles take-up to date has been very slow, with the lack of government support being one of the key reasons. We also note that the CSIRO's central scenario forecast predicts that only 25% of the Australian vehicle fleet will be fueled by alternative fuels by 2040. So despite the fact that we believe we have a relatively long runway on this issue, we have formulated a strategy that we believe will mitigate the risk as much as possible. It is important to remember that we are not the operator of the sites and merely own the land and the buildings that are then leased to operators on long-term leases, and they have quite enjoyment rights. Accordingly, our portfolio essentially -- our portfolio strategy essentially consists of 2 components. Firstly, we'll be supporting our tenants to evolve and adapt their offerings over time as the energy transition accelerates. This could range from simply providing consent for installation of EV charging stations to more complex site repositionings and redevelopments, where we will act as capital partner. Secondly, we'll proactively managing our portfolio through noncore asset disposals and highly selected acquisitions. Our aim here is to own the highest quality sites we can that are able to not only thrive and survive in the near to medium term, but that are also positioned to remain relevant over the long term as the fuel and convenience retail landscape evolves. Finally, it is important to remember that we're also somewhat protected from the energy transition through our staggered lease profile and our portfolio diversification with 470 assets spread across Australia, all of which will be impacted in different ways and at different times as the energy transition plays out. Are there any other questions in relation to the financial reports or the operation of the company?

No further questions here, Laurie.

Okay. Thank you. This concludes our consideration of the financial reports. We now move to the substantive resolutions for the meeting. Item #2 is the reelection of the Director, Mr. Stephen Newton. Mr. Newton is eligible to stand for reelection, and Mr. Newton's biographical details are set out in the Notice of Meeting and the annual report. The Board, with Mr. Newton abstaining, recommends Mr. Newton's reelection. Mr. Newton was first -- was last elected in May 2018. Mr. Newton is the Chair of the Audit and Risk Management Committee and is a member of the Nominations Committee and the Remuneration Committee. The Board considers Mr. Newton to be an independent non-executive director. The Board believes that Mr. Newton continues to make a valuable contribution to the Board. I confirm that Mr. Newton has the unqualified support of his fellow directors for his reelection. I'll now ask Mr. Newton to provide the meeting with a brief statement in support of his reelection. Stephen?

Maybe I might just give a bit of background as to who I am, and -- maybe if I just give a background as to who I am, what I've done and where I've come from. So by background, I'm a chartered accountant. I moved then into real estate at a reasonably young age. And I spent the next 23 years with Lendlease in various roles across retail, commercial, industrial property development management and investment. The last 17 or 18 years, I've had my own real estate investment management business, investing capital on behalf of major institutions into shopping centers, office buildings and industrial facilities. Since about 2008, I've taken on a number of external third party Board appointments. And I've been on the Board of entities like Australand, Gateway Lifestyle, which was a manufactured home manufacturer. And I'm currently on the board of Stockland, Waypoint and a technology business or communications business by the name of BAI Communications, which is a global business. I think I bring a lot of skills to the Board in terms of real estate, investing in particular. And just as an aside, as a very young person, my grandfather owned a service station or a couple of service stations actually. So I know how the pumps operate. I know how you dip the tanks. And I know when you know if you've got a leaking tank, to some extent as well. So by way of background, that's who I am, and I think that background brings a vast array of skills to the Board.

Okay. Thanks, Stephen. Are there any requests -- any questions in relation to the reelection of Stephen Newton?

No questions here, Laurie.

Okay. Thank you. I now move that Stephen Newton retire by rotation under clause 8.1(f) of Waypoint REIT's constitution and, being eligible, is reelected as a director of Waypoint REIT. Open proxies in favor of the chair of the meeting at the time of this meeting will be voted in favor. The resolution and the proxy position are now on the screen. And I would ask you to please now mark your voting card for item #2. [Voting]

Item #3 is a nonbinding advisory vote on the remuneration report. Under the Corporations Act 2001, listed companies are required to include as part of their directors' report a remuneration report, includes specified information in respect of directors and key management personnel. The directors have prepared a remuneration report for the year ended 31 December 2020, which is included in Pages 28 to 37 of the annual report. The Corporations Act also requires companies to put to securityholders a nonbinding vote to enable securityholders to voice their opinion on matters included in the remuneration report. The Board will consider the feedback from securityholders when reviewing the company's approach to remuneration going forward. I note that voting exclusions apply to this resolution as set out in the Notice of Meeting. The Board recommends the adoption of the remuneration report. Are there any questions?

Sorry. Thank you, Mr. Chairman, for taking my question. My name is Ray Wheeler. I'm the proxy representative from the Australian Shareholders' Association. And today, I am representing 22 shareholders and carrying 241,000 votes. Could you please explain to shareholders why the total reward opportunity for the CEO has increased by 28% in 2021 compared to the level that attracted the CEO to the role in the first place? Thank you.

Okay. Thank you, Mr. Wheeler, for the question. Well, a lot has happened in the last 12 months, in particular, the transition of management from Viva Energy Australia to an internalized management structure. Along with that has -- new remuneration governance has been established within Waypoint REIT and an opportunity to review the entire remuneration policy that we think will best suit the business going forward. So by way of broad context, that is the background to some of the decisions that have been made in respect of remuneration in the past 12 months. Present in the room there is Georgina Lynch, who is Chair of the Remuneration Committee. And I'll pass the question to her so that she can answer the particular specific issues that you've raised.

Thanks, Laurie. And thanks for the question, Ray. As Laurie indicated, we saw the internalization as a good opportunity to have a very comprehensive look at the rem structure that we had in place in -- within -- for management. We undertook a review, which included looking at market practices, insights and trends in relation to executive rem, which we obtained from external rem consultant. And following that review, we determined as the Rem Committee that adjustments in rem were required. We actually think our revised structure provides a better outcome for shareholders. We have better alignment with shareholders now. We have reward for performance. And importantly, we have an encouragement of retention, which we think is very important. We, as a Board and a Remuneration Committee, believe we have a very good team, and we want to retain them. And bringing in an equity-based LTI structure and a deferred component to the STI structure, which wasn't in place before, provides that alignment of interest and ensures good encouragement of performance and retention. So we think those key elements that we've introduced will actually be a very good pathway for shareholders to have the certainty of continuity of a very good management team going forward.

Okay. Thanks, Georgina. Are there any other questions?

No other questions in the room, Laurie.

Okay. Great. There being no further discussion, I'll now move that the remuneration report for the year ended 31 December 2020 be approved by passing an ordinary resolution as set out in the Notice of Meeting. Open proxies in favor of the chair of the meeting at the time of the meeting will be voted in favor of the resolution. The resolution and proxy positions are now shown on the screen. And I would ask you to please now mark your voting card for item number 3. [Voting]

Okay. Item #4 is the grant of performance rights to the CEO. The company is seeking approval to be given for the grant of performance rights to the CEO, Hadyn Stephens, as his annual long-term incentive grant for the year ended 31 December 2021 on the terms described in the explanatory memorandum to the Notice of Meeting. Are there any questions?

No questions in the room, Laurie.

Okay. Great. There being no further discussion, I will now move that the grant of performance rights to the CEO be approved by passing an ordinary resolution as set out in the Notice of Meeting. Open proxies in favor of the chair of the meeting at the time of the meeting will be voted in favor of this resolution. The resolution and the proxy position are now on the screen, and I would ask you to please now mark your voting card for item #4. [Voting]

Okay. Let's move on to Item #5, which is amendments to the company constitution. The company is seeking securityholder approval to amend the existing company constitution. The specific amendment to the company constitution was set out in the Notice of Meeting. Also, a copy of the company constitution, marked up to show the proposed changes, is available on Waypoint REIT's website. The rationale for the changes is to provide the company with greater flexibility to use technology in its general meeting to facilitate greater investor engagement, especially in the circumstances we faced last year and, to a lesser extent, today, due to the pandemic. Last year, the AGM was held via webcast only, with only directors; Link Market Services, our auditor; and company executives attending in person. Just incidentally, we have the largest turnout of investors who dialed into that meeting compared to previous in-person meetings. So by way of engagement, it was reasonably successful. Are there any questions?

Thank you, Mr. Chairman, for taking my question. My name is Ray Wheeler from the Australian Shareholders' Association. This is more a statement, I think, than a question. The ASA supports the changes that will allow Waypoint to hold a hybrid meeting next year, and we encourage you to do so. Thank you.

All right. Thank you for your statement, Mr. Wheeler. Are there any other questions?

No further questions in the room, Laurie.

I will now move that the constitution of Waypoint REIT Limited be amended in the manner set out in the explanatory memorandum accompanying the Notice of Meeting by passing a special resolution. Open proxies in favor of the chair of the meeting at the time of the meeting will be voted in favor of this resolution. The resolution and the proxy position as at 10 a.m. last Tuesday, the 11th of May, are now shown on the screen. And I would ask you to please now mark your voting card for item #5. [Voting]

I'll now move to Item #6, which is amendments to the trust constitution. VER Limited is seeking securityholder approval to amend the existing trust constitution. A summary of the key changes to the trust constitution as proposed by the resolution is set out in the Notice of Meeting. Also, a copy of the trust constitution, marked up to show the proposed changes, is available on Waypoint REIT's website. These largely reflect the amendments to the company constitution as explained above. Are there any questions?

No questions.

Okay. Thank you. There being no further discussion, I will now move that the constitution of the trust be amended in the manner set out in the explanatory memorandum accompanying the Notice of Meeting by passing a special resolution. Open proxies in favor of the chair of the meeting at the time of the meeting will be voted in favor of this resolution. Resolution and the proxy position as at 10 a.m. Tuesday, the 11th of May, are shown on the screen. And I would ask you to please now mark your voting card for Item #6. [Voting]

So please complete your voting cards now as they will be collected shortly by Link Market Services. I'll just pause a moment to allow you to hand in your cards. Hadyn, just let me know when you're right. Hadyn, how are we going with the collection of cards?

All cards have been collected, Laurie.

All right. Great. Thank you. So all cards have now been collected. I now declare the poll closed. The results of the meeting will be provided to the ASX by close of business today and also posted on Waypoint REIT's website. Thank you all for your interest. We appreciate the time you've taken to attend today. We look forward to your continued support in the coming year. I now declare the meeting closed. Thank you once again.