Whitestone REIT (WSR) Earnings Call Transcript & Summary

Good morning. My apologies for a few minute late start. Technical difficulties this morning. Welcome to our 2021 Annual Meeting of Shareholders of Whitestone Real Estate Investment Trust. I'm John Dee, Chief Operating Officer and Corporate Secretary of Whitestone. We are holding our second virtual annual meeting. Last year went well, for the first time doing a virtual annual meeting. With COVID still an issue, we decided in the best interest of our shareholders to be safe this year and hold our annual meeting virtually again. While we look forward to greeting and seeing our shareholders in person at our annual meetings, your safety is more important. By using the virtual format, we are able to communicate with you, enable increased attendance and participation from any location that has Internet access, reduce cost and keep everyone safe. Also, this approach is environmentally friendly and aligns with our broader sustainability goals. Our agenda today includes the following: first, we will introduce our Board of Trustees and our associates of Whitestone who are assisting with the annual meeting; second, we will conduct the formal business of the annual meeting by reading each proposal, allowing shareholders to vote if they have not already done so, and providing the preliminary results. The formal business will be followed by a report of financial results by our Chief Financial Officer, Dave Holeman; and remarks about the company by our Chairman and Chief Executive Officer, Jim Mastandrea. After Mr. Mastandrea has completed his remarks, we will answer questions from our shareholders. Our meeting will conclude by 11:00. To ask a question or vote at our virtual annual meeting, you will need to use your computer screen. And this is a very important note. If you signed into the annual meeting as a guest, you will not be able to ask a question or vote. Only shareholders who have entered a control number on the registration page will be able to ask a question and vote. Shareholders should have received a control number by U.S. mail with a notice to vote using the Internet website of proxyvote.com. In the right-hand corner of the lower part of your screen, you will see a box with 3 words: Voting, Q&A, Materials. If you have not yet voted or want to change your vote, you can do so by clicking on the word, Voting, and you will see 3 proposals. You can vote by clicking on the buttons next to each proposal. After you make your selection for all of the proposals, click on the blue box with the words, Submit Now, which is immediately below the last proposal. You can access the proxy statement and 2002 annual report by clicking on the word, Materials, during any part of the meeting. If you are a shareholder and signed into this virtual annual meeting using the control number on your proxy ballot, you can ask a question by clicking on the word, Q&A. Type your question in the box labeled Submit a Question, and when you are done typing, click Submit. All questions that are relevant to the business of the Whitestone Annual Shareholders Meeting will be answered as time permits. We will repeat the instructions for voting and asking a question during the course of our annual meeting. I ask that the polls now be open for the shareholders to vote. [Voting]

Now let's begin our meeting with the introduction of the members of our Board of Trustees and our associates of Whitestone who are assisting with our virtual annual meeting: Jim Mastandrea is our Chairman and Chief Executive Officer. Our independent trustees are Nandita Berry, Jeff Jones, Paul Lambert, Jack Mahaffey and David Taylor. Also at the annual meeting are the following Whitestone associates: Dave Holeman, Whitestone's Chief Financial Officer; Rebecca Elliott, our Vice President of Corporate Communications; Kevin Reed, Director of Investor Relations; and Peter Tropoli, in-house General Counsel. We have many more associates of Whitestone who are also shareholders and are attending our virtual annual meeting. The next item on our agenda is the formal business. So we are now calling the 2021 Whitestone REIT Annual Shareholders Meeting to order on this May 13, 2021 at 10:10 Central Time. The notice of our meeting and the proxy statement were mailed or made available electronically on April 2, 2021, to all common shareholders of record at the close of business on February 16, 2021. Dave Holeman will act as our Inspector of Election for this meeting. He has taken the oath of office and will now provide us with his report.

On the record date, February 16, 2021, a total of 42,478,720 common shares were outstanding. The holders of 34,373,439 common shares are present in person or by proxy. Each common share is entitled to 1 vote. A total of 81% of voting shares are present or represented by proxy at the meeting, which is more than a majority of the outstanding voting shares. Accordingly, there is a quorum.

Thank you, Dave. We have 3 proposals. Kevin Reed, our Director of Investor Relations and a shareholder, will read each of the proposals as they appear in our proxy statement; and Dave Holeman, our Chief Financial Officer and a shareholder will make a second for each proposal. The first item for consideration is Proposal 1. Kevin, please read the first proposal.

Proposal #1 is the election of 4 trustees: Nandita Berry, Jeff Jones, Jack Mahaffey and Jim Mastandrea to serve until our 2022 Annual Meeting of Shareholders and until each of their successors have been duly elected and qualified.

Dave Holeman, please second the proposal.

I second the proposal.

The nominations are closed. Shareholders who have sent their proxy cards or voted using the phone or the Internet do not need to vote today. If you have not voted and wish to vote today, please vote using your computer. In order to vote, you must be a shareholder and have used the control number on your proxy notice to sign into the virtual annual meeting. In the lower right corner of your screen is a box with the word, Voting. Click on Voting, and you will see 3 proposals. You can vote by clicking on the buttons next to each proposal. After you make your selection for all of the proposals, click on the blue box with the words, Submit Now, which is immediately below the last proposal. I will repeat these voting instructions after we read the last proposal and before we close the polls for voting. We will give the preliminary results of the voting after we have announced the other proxy proposals. Voting submitted today during our meeting will be included in the final voting results after they have been validated by the Inspector of Election. The second item for consideration is Proposal 2. Kevin, please read the second proposal.

Proposal #2 is the approval of an advisory nonbinding vote, the compensation program of our named executive officers.

Dave, please second the proposal.

I second proposal #2.

The third item for consideration is Proposal 3. Kevin, please read the third proposal.

Proposal #3, to ratify the appointment of Pannell Kerr Forster of Texas, P.C. as our independent registered public accounting firm for the fiscal year ending December 31, 2021.

Dave, please second the proposal.

I second the proposal.

If you are voting today, you will need to use your computer to do so. In order to vote, you must be a shareholder and have used the control number on your proxy notice to sign into this virtual annual meeting. In the lower right corner of your computer screen is a box with the word Voting. Click on Voting, and you will see the 3 proposals. You can vote by clicking on the buttons next to each proposal. After you make your selection for all of the proposals, click on the blue box with the words, Submit Now, which is immediately below the last proposal. Voting done at this meeting but not reflected in the preliminary report will be included, upon validation, in the final report of the Inspector of Election. The Inspector of Election will now present his preliminary report for Proposals 1, 2 and 3.

Mr. Secretary, the following is the preliminary report. For Proposal #1, the election of 4 trustees to serve until our 2022 Annual Meeting of Shareholders and until a successor has been duly elected and qualified. Each trustee received the following number of votes for, being elected: Nandita Berry, 19,284,824; Jeff Jones, 19,519,616; Jack Mahaffey, 11,980,578; and Jim Mastandrea, 19,538,083. Each trustee received the affirmative vote of a plurality with respect to Proposal #1 as of this preliminary report. For Proposal #2, the approval on an advisory nonbinding basis of the compensation program of our named executive officers received 23,073,516 votes for and 3,298,506 votes against, passed by our shareholders in person or by proxy at the annual meeting. The votes, for, represent the affirmative vote of a majority of all the votes cast as of this preliminary report. For Proposal #3, to ratify the appointment of Pannell Kerr Forster of Texas, P.C. as our independent registered public accounting firm for the fiscal year ending December 31, 2001 (sic) [ 2021 ], we received 33,726,233 votes for, and 530,015 votes against, cast by shareholders in person or by proxy at the annual meeting. The votes, for, represent the affirmative vote of a majority of all the votes cast as of this preliminary report.

We will be closing the voting poll very soon. If you are voting at today's meeting, you will need to use your computer. In order to vote, you must be a shareholder and have used the control number on your proxy notice to sign into this virtual annual meeting. In the lower right corner of your computer screen is a box with the word, Voting. Click on, Voting, and you will see the 3 proposals. You can vote by clicking on the buttons next to each proposal. After you make your selection for all the proposals, click on the blue box with the words, Submit Now, which is immediately below the last proposal. We'll give just a few more moments for shareholders to vote, then announce the outcome for each proposal and continue with reports from Dave Holeman and Jim Mastandrea. There is no further business to come before the meeting. All proxy cards and ballots have been voted, and the virtual voting has been completed. Therefore, the polls of Whitestone's 2021 Annual Shareholders Meeting are now closed. Based on the preliminary report for Proposal #1, Ms. Berry, Mr. Jones, Mr. Mahaffey and Mr. Mastandrea have been elected to serve as trustees until 2022. For Proposal #2, the shareholders have approved on an advisory nonbinding basis, the compensation program of the named executive officers. For Proposal #3, the shareholders have ratified the appointment of Pannell Kerr Forster of Texas, P.C. as Whitestone's independent registered accounting firm for the year ended December 31, 2021. We would like to thank our shareholders for their support, for their proposals and for voting. This concludes the formal business of our meeting, and the annual meeting is adjourned at this time. Next on our agenda is our Chief Financial Officer, Dave Holeman, who will provide us with a report of our financial results. Dave will be followed by our Chairman and Chief Executive Officer, Jim Mastandrea, who will share remarks about the company. Finally, we will answer questions submitted by shareholders. In order to ask a question, you must be a shareholder and have used the control number on your proxy notice to sign into the virtual annual meeting. You can ask a question by clicking on the word, Q&A, in the right corner of your screen. Type your question in the box labeled, Submit a Question. And when you are done typing, click, Submit. Now Dave Holeman, our Chief Financial Officer, will give us a report of Whitestone's financial results.

Thanks, John. I will give a financial report for Whitestone REIT for 2020 and the first quarter of 2021. Please note that some statements made during my remarks, and Jim's remarks to follow, are not historical and may be deemed forward-looking statements. Actual results may differ materially from those forward-looking statements due to a number of risks, uncertainties and other factors. Please refer to the company's filings with the SEC, including Whitestone's most recent Form 10-Q and Form 10-K for a detailed discussion of these factors. Acknowledging the fact that this call may be webcast for a period of time, it's also important to note that this call includes time-sensitive information that may be accurate only as of today's date, May 13, 2021. The company undertakes no obligation to update the information. Also during this presentation, we may reference certain non-GAAP financial measures, which we believe allow investors to better understand the financial position and performance of the company. Included in the SEC filings are reconciliations of non-GAAP measures to GAAP financial measures. The tragedy of the COVID-19 pandemic has had a profound effect on the lives of millions of people around the world. The threat of the disease, related casualties and governmental-imposed restrictions to daily life has forced all of us to quickly adopt different ways of working, learning and connecting with each other. Given the severe economic pressures caused by the coronavirus during the past 15 months, our portfolio has performed quite well. While many of our financial and operating metrics have been impacted by the pandemic, our portfolio has performed very well relative to the U.S. public shopping center industry. Our total revenue for 2020 was $118 million, flat with 2019 total revenue. During 2020, our revenue was positively impacted by a full year of revenue from our 2019 acquisitions contributing $2.5 million positively to the year-over-year change, and also positively impacted by an increase in our recoveries of reimbursable expenses from our tenants of $650,000. During 2020, our revenue was negatively impacted by incremental bad debt uncollectible reserves of $5.4 million, inclusive of $1.2 million in straight-line rent write-offs and lower average occupancy of 0.8%. Our same-store net operating income was $76.2 million, a decrease of 4.4% from 2019, comparing very favorably to the industry average decrease of 9%. Funds from operations core was $40.1 million in 2020 or $0.93 per share, compared to $45 million or $1.06 per share in 2019. The incremental revenue reserves negatively impacted FFO core by $0.12 per share. Our 12.6% FFO core per share decline also compares favorably to the industry average decline of 16.1%. In 2020, we signed new and renewal leases representing 982,000 square feet, 3% higher volume than 2019, with a weighted average rental rate over the term of those leases that is 8.9% higher than the previous average rental rates. At year-end, our total assets were slightly over $1 billion, flat with 2019. And during 2020, we improved our debt leverage by reducing our net debt by $12 million. Now turning to our financial results for our most recent quarter ended March 31. Our first quarter is an encouraging start to 2021 and underscores the resilience of our forward-thinking, well-crafted business model and the strength of our strategically chosen high-growth markets. First, let me provide a little more perspective on the strength of our markets. Our targeted geographic focus on top MSAs in the Sunbelt continues to produce great results. Texas and Arizona continued to see significant population migration and corporate relocations producing jobs from other areas of the country. This is best evidenced by our first quarter leasing activity, occupancy levels, leasing spreads and average base rent per leased square foot. Our leasing activity in the first quarter was very strong, with 46 new leases representing 117,000 square feet of new occupied square footage. This level of new lease square footage was 90% higher than our average quarterly lease volume for the previous 3-year period and 21% higher than the highest quarter over the past 3 years. On a total lease value basis, the first quarter was more than double our average quarterly lease volume for the previous 3-year period and 38% higher than the highest quarter over the past 3 years. Regarding occupancy, our operating portfolio occupancy stood at 89.1%, up 0.5% from the fourth quarter and down only 0.6% from a year ago, with our Austin market leading the way with an almost 4% increase in occupancy from Q4 2020. Weighted average rental rates over the term of the leases signed in the first quarter were 5.3% higher on new leases and 9.6% higher on renewal leases. Our annualized base rent per square foot on a GAAP basis at the end of the first quarter grew 1% to $19.71 from $19.58 in the previous quarter, and is basically in line with our pre-COVID ABR levels. Funds from operations core in the first quarter was $0.23 per share compared to $0.24 per share in the prior year. Our tenant collection of rent continue to trend towards normal pre-COVID levels with 95% of our contractual rents collected in Q1. Our 3 largest tenant categories: restaurants, grocery and financial services were at 95%, 100% and 99%, respectively. During the quarter, we had minimal deferrals of rent, representing only 0.5% of our total contractual billings. Same Store net operating income was down 4.3% for the quarter versus the prior year quarter, and we expect our same Store growth to resume as we move through the balance of the year and into 2022. Reflecting the continued improvement in the portfolio, our reserve for uncollectible revenue was $529,000 or 1.8% of revenue, an improvement from $1.2 million or 4% of revenue in Q4 2020. To put this into further perspective, our reserve in the first quarter equates to only 9% of 2020's full year reserves. Our interest expense was 8% lower in the first quarter than a year ago, reflecting $15 million in lower average debt and a decrease in our overall interest rate from 3.9% to 3.6%. Turning to our balance sheet. Since early last year, we have implemented various measures to strengthen our liquidity and navigate the economic pressures caused by the pandemic. At quarter end, we had $23.3 million in accrued rents and accounts receivable. Included in this amount is $16.9 million of accrued straight-line rents and $1.8 million of agreed upon deferrals. The balance of our agreed-upon deferrals is down 18% from year-end, reflecting tenants honoring their payment plans. Our total debt as of the end of the first quarter is $632 million, down $17 million from a year ago, and our liquidity, representing cash and availability on our corporate credit facility stands at $30 million at quarter end. We continue to make progress on our publicly stated goal of reducing leverage. And during April, we paid down an additional $10 million on our corporate credit facility. Currently, we have $140.5 million of undrawn capacity and $26 million of borrowing availability under our credit facility. We are in full compliance with all of our debt covenants and expect to remain so in the future. As I stated earlier, 2021 is off to a very promising start. These results are a testament to the resiliency of Whitestone's business model. We are encouraged by the recovery and we look forward to reengaging our growth strategy and our continued delivery of value to all of Whitestone's stakeholders. I will now turn the presentation over to Jim Mastandrea, our Chairman and CEO.

Thank you, Dave, and thanks for sharing such great financial performance that we had, particularly during a difficult time. And thank you all for joining us at our 2021 Whitestone REIT Annual Shareholder Meeting. We recently came through an unprecedented year of complex challenges for businesses worldwide, and at Whitestone, our challenges were no less complex. We acted decisively and with tremendous focus, resilience and determination to ensure that we placed our shareholders' interest first and continued to deliver value. We stayed the course with our business plan, capturing the value of our real estate from entrepreneurial tenants who throughout the year met the services and essential needs of consumer and in doing so, continued to operate and pay rent. While some tenants were granted rent deferrals, abatements were not provided. While the pandemic certainly was a challenge, my view of 2020 is that it provided an opportunity for us at Whitestone to benefit from the safeguards we had in our business model and implement our crisis management skills, and make improvements where necessary within the company. Needless to say, our operating team performed very well and delivered on results while our financial team managed our liquidity. In March of 2020, as the economy turned sharply, our acquisition team paused and our operating team shifted to a crisis management plan. Together our acquisition, operating and finance teams maintained our business operations with 75% of our employees working from home and our senior management team guiding the tactical strategy through Zoom communications, visiting properties and meeting with tenants. In March, our acquisition, operating and finance teams were back together and reinitiated our long-term business strategy. The pause in 2020 seemed more like a decade rather than a year. And what we lost in time, we gained in technology advancement, fully Zooming our virtual meeting conferences and artificial intelligence and property customer traffic surveillance. The payoff was our financial results and investment returns that rank Whitestone at or near the top of the retail shopping center industry in rent collections quarter-over-quarter. For example, in Q2 2020, Whitestone had 81% collections and our peers collected 73%. In Q3 2020, Whitestone collected 90% and our peers collected 88%. And in Q4 2020, Whitestone collected 95% and our peers collected 93%, remarkable. In addition, our leasing spreads for new and renewal leases blended, increased significantly by 8.9%, occupancy stabilized at 88% to 90%, and rental collections continued relatively unchanged. Our shareholders benefited from our consecutive dividend payment for the 127th month. Whitestone's approach to creating value is not unique. We take a long-term perspective rather than a short-term approach. This is consistent with the ownership, leasing and management of brick-and-mortar, better known as real estate. As Ray Dalio has identified in his approach to creating long-term value, it is important to avoid the first order consequences in making decisions, and instead make decisions based on the second and third order consequences. Our first order consequences are to avoid buying properties in highly regulated states and leasing to tenants whose interest are not mutually aligned with enhancing Whitestone's property values as they enhance their own value. Instead, we buy properties in states where regulations and taxes encourage real estate ownership, and there are fewer distractions towards creating significant long-term value. We lease to tenants whose interests are consistent with ours. Focusing on the long-term trends, short-term cycles and multiple patterns created by the consumer in the marketplace has led us to stable, predictable and increasing cash flow, resulting in higher property values and thus enterprise value. We expect in 2021 to make a difference in attracting investors back to the commercial retail real estate that was decimated by the Internet. Being on a path to lower our cost of capital, Whitestone pipeline of potential acquisitions with lower dividend payout ratios are significantly accretive. Properties that we buy, we lease and operate. Our vertical integration has continued to outperform the neighborhood competition and, as an added bonus, benefit from the heavy migration of people relocating to Arizona and Texas. Whitestone is benefiting from a tailwind that includes the recovery from COVID, energized e-commerce-resistant entrepreneurial tenants, operating in states with fewer legal regulations and incoming migration. Armed with a strong balance sheet and financial flexibility, we intend to capture investment opportunities in quality real estate, in great markets and operate them as we play a role in the transformation of open-air lifestyle properties into institutional investment quality properties. Our high-quality communities feature tenants such as groceries, pharmacies, entertainment, health and education enterprises and restaurants that provide essential services and meet daily needs, based on a personal delivery system which drives 18-hour traffic, 7 days a week to our properties. Whitestone's story continues to evolve as we grow, and our financial results confirm our strategy. Our markets are strong, our properties are high quality, our tenants are creditworthy and consumers continue to frequent our properties. Our story has 2 parts. Part 1 is how we perform as a real estate company. And Part 2 is how we are understood in the marketplace as a public company. In the long run, I believe that decisions based on second and third-order consequences will outperform those made on first-order consequences. Our real estate is showing second and third order results and in time, will translate into our enterprise market value. Our Whitestone team is dedicated to delivering exceptional financial investment results while achieving high environmental, social and governance standards. In doing so, I remain committed to my service to God first, and through him to our employees, shareholders and all stakeholders. And I thank you, and thank you for being here today with us.

[Audio Gap] answer questions submitted by our shareholders and complete our meeting by 11:00. You can ask a question by clicking on the word, Q&A, in the right corner of your screen. In order to ask a question, you must be a shareholder and have used a control number on your proxy card to sign into this virtual annual meeting. Type your question in the box labeled Submit a Question, and when you are done typing, click Submit. It seems we have our first question from a shareholder. We'll start with this one. We received the following question from a shareholder. He noticed that in our Proxy Statement, page 37, which was mailed together with our 2020 Annual Report and Voting Instruction Form, the board decided to reduce the annual cash incentives payable to each of the named executive officers to the target level of 100% rather than 200% of the target level of their annual cash incentive award. He comments, "that, I am sure, all shareholders find commendable". He goes on to say that on page 4 that 95% of the 4th quarter 2020 contractual rents have been collected, and you also state on page 35 that Whitestone entered into rent deferrals representing 3% of 4th quarter 2020 revenue. With all these positive actions occurring on behalf of Whitestone management, the question is why can't we now return to monthly dividend of $0.095 per share that the shareholders were receiving until March of 2020? Jim, would you like to take that question?

Yes, John, thank you. First of all, thank you for your comments and question, and a very thorough reading, I might say, of our Proxy Statement. During the onset of COVID the government mandated shutdowns. One of the proactive measurements our [indiscernible] took, but not the only one, was to reduce the monthly dividend to preserve liquidity and protect all of our shareholders' long-term value. We did not eliminate Whitestone's dividend, as many other companies did. And recently, we increased the dividend in March of 2021, reflecting our strong performance in navigating the economic crisis caused by the pandemic. Our Board will continue to monitor our dividend level, taking into account our dividend requirement as a REIT, our cash flow and our dividend rate. One of the ways we evaluate our dividend is by comparing our dividend to our adjusted funds from operations and our dividend yield compared to our share price, and benchmarking these ratios against the industry. Our dividend as a percentage of AFFO, again, adjusted funds from operation, was 57% in the first quarter of 2021 compared to the industry average of 65%. And our current dividend yield is slightly under 5% compared to the industry average of approximately 3.5%. Our dividend distribution of 57% of AFFO is conservative compared to our peer group, which means we are providing a safe dividend, while at the same time, our dividend is providing a better yield than our peer group. Any excess funds are allocated to providing the best long-term return to our shareholders. Be assured that we are working every day to grow long-term value and increase the total return to our shareholders, which includes both dividends, which you would ask about, and our share price.

Dave, it seems like the question from our next shareholder is directed to you. The shareholder was very impressed with the first quarter leasing activity and would like a few more details. So if you could really quick go back over the performance for the first quarter and if you have anything else to add.

Sure, John. Thanks to the shareholder for the question. As I did state in my remarks earlier, we're very pleased with the start to 2021. I think it was highlighted by the amount of activity we had on the leasing side. Really, our leasing activity, as I reported in my remarks, was higher than -- significantly higher than any quarter we've had over the last 3 years. We also had an increase in our rate of just about 8%. And then from a lease value, which represents all of the activity across the lease term, that was also well above our 3 years. So leasing activity is a great indicator of the rebound in our markets, which we're seeing be very robust. Maybe just a little color on the types of tenants we're seeing as well. So one of the things we saw in the first quarter was, strong operators and strong tenants have figured out a way to do business in a very different and creative way. And so we've seen a great amount of demand in our portfolio from operators of restaurants that have successful multilocations and are looking for additional locations, so -- and then really some of our more impacted tenant segments, such as entertainment, we saw a rebound in the first quarter versus '20. So on the leasing side and activity side, I think we're seeing great trends to start off '21.

Thank you, Dave. Possibly, a shareholder has asked, could we comment on our markets and Whitestone properties, how they were impacted by the pandemic and what trends we see post COVID? We could go on for quite a few minutes if we got into that question. Jim, what do you think?

I'll just give you some brief comments on it. Our markets are selected by design. We have assembled this portfolio starting with a blank canvas, looking at the trends. We follow the statistics very closely. We look at demographic movements. We look at sociographics, in terms of how the population is shaped around the properties, and we look at where the general economy is going. We look for low-tax environments, such as Texas has no income tax. Real estate taxes in Arizona are roughly 1%. So we shape our product around that. What that does is it gives the entrepreneur who is in that market an opportunity to succeed. What we've realized since January of this year is that there is a tremendous migration into Texas and Arizona. And our data shows the 5 leading states where it's coming from is California, Minnesota, Illinois, Colorado and surprisingly, Florida. So not only have had we had our model, that really accommodates that, we wish we were -- we wish we could say that we knew this all along and that was coming, but our shareholders will benefit from that tailwind, John, particularly the properties we have.

Thank you very much, Jim. We're looking at the queue. It appears that we have answered the shareholder questions. Jim, any final comments before we end the meeting?

Well, thank you, John, for putting this together. We've been together for a long time, our team, particularly with David and yourself and other members of the Whitestone team. And we get excited about coming to work every day. I just want to say that we have a tremendous Board of Trustees who are very supportive of our business model, and we work very closely with them. So I thank you all for being shareholders, and I wish you a good day.

For the shareholders that have attended today, thank you very much for your [Audio Gap]