Clipper Realty Inc (CLPR) 2024 Q2 法說會逐字稿

Good day, and welcome to the Clipper Realty quarterly earnings call. (Operator Instructions) It’s now my pleasure to turn the floor over to your host, Larry Kreider. Sir, the floor is yours.

美好的一天，歡迎參加 Clipper Realty 季度財報電話會議。 （操作員說明）現在我很高興將發言權交給主持人 Larry Kreider。先生，地板是你的了。

Thank you, John. Good afternoon and thank you for joining us for the second quarter 2024 Clipper Realty Inc. earnings conference call. Participating with me on today's call are David Bistricer, Co-Chairman of the Board and Chief Executive Officer; and JJ Bistricer, Chief Operating Officer.

謝謝你，約翰。下午好，感謝您參加 Clipper Realty Inc. 2024 年第二季財報電話會議。與我一起參加今天電話會議的是董事會聯合主席兼執行長 David Bistricer；和營運長 JJ Bistricer。

Please be aware the statements made during the call that are not historical may be deemed forward-looking statements and actual results may differ materially from those indicated by such forward-looking statements. These statements are subject to numerous risks and uncertainties, including those disclosed in the company's 2023 Annual Report on Form 10-K, which is accessible at www.sec.gov and our website.

請注意，電話會議期間所做的非歷史陳述可能被視為前瞻性陳述，實際結果可能與此類前瞻性陳述所顯示的結果有重大差異。這些聲明面臨眾多風險和不確定性，包括公司 2023 年年度報告 10-K 表格中揭露的風險和不確定性，該報告可在 www.sec.gov 和我們的網站上存取。

As a reminder, the forward-looking statements speak only as of the date of this call, August 1, 2024, and the company undertakes no duty to update them. During this call, management may refer to certain non-GAAP financial measures including adjusted funds from operations or AFFO; adjusted earnings before interest, taxes, depreciation and amortization or adjusted EBITDA, and net operating income or NOI.

提醒一下，這些前瞻性陳述僅代表截至本次電話會議之日（2024 年 8 月 1 日）的情況，本公司不承擔更新這些陳述的義務。在本次電話會議中，管理階層可能會參考某些非 GAAP 財務指標，包括來自營運或 AFFO 的調整後資金；調整後的息稅折舊攤提前利潤或調整後的 EBITDA，以及淨營業收入或 NOI。

Please see our press release supplemental financial information in Form 10-Q posted today for a reconciliation of these non-GAAP financial measures with the most directly comparable GAAP financial measures.

請參閱今天發布的表格 10-Q 中的新聞稿補充財務信息，以了解這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳情況。

With that, I will now turn the call over to our Co-Chairman and CEO, David Bistricer.

現在，我將把電話轉給我們的聯合董事長兼執行長 David Bistricer。

Thank you, Larry. Good afternoon and welcome to the second quarter of 2024 earnings call for Clipper Realty. I will provide an update on our business performance and some new developments, after which JJ will discuss property-level activity, including leasing performance, and Larry will speak to our quarterly financial performance.

謝謝你，拉里。下午好，歡迎參加 Clipper Realty 2024 年第二季財報電話會議。我將提供有關我們業務業績和一些新發展的最新信息，之後 JJ 將討論房地產層面的活動，包括租賃業績，拉里將談論我們的季度財務業績。

We will then take your questions. I'm pleased to report that we are reporting record operating results, including record revenue, net operating income, and AFFO, based on excellent residential activity. Rental demand continues to be strong at all our properties. Overall rents are generally at all-time highs and continue to increase and we are nearly fully leased.

然後我們將回答您的問題。我很高興地報告，基於出色的住宅活動，我們正在報告創紀錄的經營業績，包括創紀錄的收入、淨營業收入和 AFFO。我們所有物業的租賃需求持續強勁。整體租金普遍處於歷史最高水平，並持續上漲，我們幾乎已全部出租。

In the second quarter, new leases exceeded prior rents by over 7% and crossed the entire market-based portfolio led by the Tribeca house property in Manhattan and the Clover House property in Brooklyn. There were new leases were over $84 and $90 per square foot, and overall rent levels were $81 and $84 per square foot, all compared to the $63 per square foot at the end of December 2021.

第二季度，新租約超出先前租金超過 7%，並跨越了以曼哈頓 Tribeca 房產和布魯克林 Clover House 房產為首的整個市場投資組合。新租約價格超過每平方英尺 84 美元和 90 美元，整體租金水準為每平方英尺 81 美元和 84 美元，而 2021 年 12 月底的租金水準為每平方英尺 63 美元。

The results of stabilized rent property at Flatbush Gardens, are also strong. Since last July, we have operated under the 40-year operating according to the Article 11 of the Private Housing Finance Law for New York City Housing Preservation Development, which eliminated real estate taxes at the property and provided for enhanced rental revenues, rental recovery use for assisted tenants, which are beginning to receive meaningful amounts.

弗拉特布什花園 (Flatbush Gardens) 租金穩定的結果也很強勁。自去年7月以來，我們根據《紐約市住房保護開發私人住房融資法》第11條的規定，在40年的經營期限內進行運營，該法取消了該物業的房地產稅，並規定了增加租金收入、租金回收用途對於受援助的租戶來說，他們開始收到可觀的金額。

As a result, we are aggressively fulfilling our commitments for property improvements and assistance in higher wages. Operationally, we are very pleased with our new ground-up development at Pacific House, at 1010 Pacific’s in Brooklyn, after a year of full operation, it's fully stabilized and is contributing to cash flow. It is now 100% leased and yielding the projected 7% cap rate as projected.

因此，我們正在積極履行改善財產和幫助提高工資的承諾。在營運方面，我們對位於布魯克林 1010 Pacific 的 Pacific House 的新開發項目感到非常滿意，經過一年的全面運營，它已完全穩定並正在為現金流做出貢獻。目前該項目已 100% 出租，預計資本化率為 7%。

At the nearby 953 Dean Street ground-up construction is proceeding ahead of schedule. We completed the superstructure ahead of schedule. Expect to complete construction in time for 2025 leasing season, utilizing the $123 million construction loan we entered into last year.

附近迪恩街 953 號的地面施工正在提前進行。我們提前完成了上層建築。利用我們去年簽訂的 1.23 億美元建設貸款，預計將在 2025 年租賃季及時完成建設。

We bought the land in 2021-2022 on which to build a nice story, fully amenitized residential complex with 160,000 residential square feet, 240 total units, 77 free market and 30% affordable, 8500 commercial rental square feet.

我們於2021 年至2022 年購買了這塊土地，用於建造一個漂亮的故事、設施齊全的住宅綜合體，住宅面積為160,000 平方英尺，共有240 個單元，77 個自由市場和30% 的經濟適用房，8500 平方英尺的商業租賃面積。

At 250 Livingston Street, where as we received the flow of New York City notified us of their intention to vacate in August of 2025, we are seeking solutions and pursuing up to opportunities supported by cash flows from other properties. Of course, we will keep informed as of our progress regularly.

在利文斯頓街 250 號，當我們收到紐約市通知我們打算於 2025 年 8 月搬出時，我們正在尋求解決方案，並尋求由其他房產現金流支持的機會。當然，我們會定期通報我們的進展。

At our other New York City office property, 141 Livingston Street, we are actively negotiating a five-year extension to our current lease that expires in December 25, but we cannot assure that this will be completed favorably. Also, we have begun thinking about recycling properties at our portfolio to maximize performance and improve cash flow.

在我們位於紐約市的另一處辦公大樓（利文斯頓街141 號），我們正在積極談判將目前的租約延長五年，該租約將於12 月25 日到期，但我們不能保證這會順利完成。此外，我們已經開始考慮回收我們投資組合中的房產，以最大限度地提高績效並改善現金流。

As such, we have begun preliminary marketing activities for some of our other properties, including 10 West 62 Street, while potentially resulting in some loss compared to book value will allow us to achieve better overall returns going forward. We will announce any definitive arrangements promptly as they arise. As for the continuing high interest rate environment, we believe the higher rates make for higher tenant demand for our rental product versus the purchase option.

因此，我們已經開始對包括西 62 街 10 號在內的其他一些物業進行初步行銷活動，雖然與帳面價值相比可能會造成一些損失，但這將使我們能夠在未來獲得更好的整體回報。一旦出現任何最終安排，我們將立即宣布。至於持續的高利率環境，我們認為較高的利率會導致租戶對我們的租賃產品的需求高於購買選擇。

We are also butchered by the relatively long duration of debt at our operating properties. Our operating debt is 91% fixed and average rate of 3.87% and average duration of 4.9 years is non-recourse, subject to limited standards of car amounts, and is not cross-collarized.

我們的經營物業的債務期限相對較長，這也讓我們陷入困境。我們的經營債務91%是固定的，平均利率為3.87%，平均期限為4.9年，是無追索權的，受汽車數量限制標準的約束，且不是交叉抵押。

We finance our properties on an asset-based basis and not cross-collarized. With regard to our second quarter results, we are reporting record quarterly revenue of $37.3 million NOI of $21.1 million. Today, we have a vote of $7.1 million as a result of a strong leasing and cost reductions I just mentioned. These results represent improvements over the second quarter last year as JJ and I will further detail.

我們以資產為基礎而非交叉擔保為我們的房產提供融資。關於我們第二季的業績，我們報告了創紀錄的季度收入 3,730 萬美元，NOI 為 2,110 萬美元。今天，由於我剛才提到的大力租賃和成本削減，我們獲得了 710 萬美元的投票。這些結果比去年第二季有所改善，JJ 和我將進一步詳細說明。

I will now turn the call over to JJ who provided an update on operation.

我現在將把電話轉給 JJ，他提供了最新的營運情況。

Thank you. I'm pleased to report that our residential leasing at all our properties is very strong and continues to improve. At the end of the second quarter, our residential properties were over 99% leased and rents were at record levels and still recording increases over previous levels.

謝謝。我很高興地報告，我們所有物業的住宅租賃都非常強勁，並且持續改善。截至第二季末，我們的住宅物業出租率超過99%，租金創歷史新高，且仍較前期成長。

Overall, new lease and renewal rental rates in the second quarter exceeded previous rent by over 7% at our residential properties. We expect leasing to remain strong in the foreseeable future as demand remains high and the overall rental housing supply remains constrained as widely publicized.

總體而言，我們的住宅物業第二季的新租約和續約租金率比之前的租金高出 7% 以上。我們預計，在可預見的未來，租賃將保持強勁，因為需求仍然很高，而且整體租賃住房供應仍然受到廣泛宣傳的限制。

As of the end of June, Tribeca House had leased occupancy of nearly 100% rent per square foot of $81 and new rent of $84 per square foot. The Clover House property had leased occupancy of 97% average rates of $84 a foot and new leases of $90 a foot.

截至6月底，Tribeca House的出租率接近100%，每平方英尺租金為81美元，新租金為每平方英尺84美元。 Clover House 物業的出租率為 97%，平均價格為每英尺 84 美元，新租約價格為每英尺 90 美元。

Our recently completed Pacific House property consisting of a blend of free market rentstabilized tenants had leased occupancy of 97%, free market rents of $76 per square foot, and new free market rents of $76 per square foot.

我們最近竣工的 Pacific House 物業由自由市場租金穩定租戶組成，其租賃率為 97%，自由市場租金為每平方英尺 76 美元，新的自由市場租金為每平方英尺 76 美元。

This property is now fully stabilized with operating cash flows achieving the projected 7% cap rate in the original underwriting. Our other residential properties at 10 West 65 Street, Aspen, and 250 Livingston Street continue to perform at record levels with average lease occupancy above 98% and new rents and renewals 11% higher compared to previous leases.

該物業現已完全穩定，營運現金流實現了最初承銷中預計的 7% 上限。我們位於阿斯彭西 65 街 10 號和利文斯頓街 250 號的其他住宅物業繼續保持創紀錄水平，平均租賃入住率超過 98%，新租金和續租比之前的租賃高出 11%。

Lastly, at the large Flatbush Gardens property, we continue to be pleased with our performance operating under the new Article 11 agreement made with the Housing Preservation Department of New York City in June of last year. Using the full abatement of real estate taxes beginning last July, we are completing the capital projects we committed, aggressively dealing with maintenance issues and placing formerly homeless residents.

最後，在弗拉特布什花園 (Flatbush Gardens) 大型房產中，我們對去年 6 月與紐約市住房保護部簽訂的新的第 11 條協議下的表現感到滿意。從去年七月開始全面減免房地產稅，我們正在完成我們承諾的資本項目，積極處理維護問題並安置以前無家可歸的居民。

We have begun to meaningfully obtain the enhanced reimbursement under Section 610 of the Private Housing Finance Law for tenants receiving assistance as we fill vacancies with formerly homeless residents and renewal leases with assisted tenants. These benefits have amounted to nearly $500,000 so far this year and should steadily increase over the next couple of years and facilitate profitable improvements to the property.

我們已開始根據《私人住房融資法》第 610 條，為接受援助的租戶切實獲得更多補償，因為我們用以前無家可歸的居民填補了空缺，並與受援助的租戶續簽了租約。今年迄今為止，這些福利已達到近 50 萬美元，並且在未來幾年內將穩步增加，並促進房產的盈利性改善。

We are also getting increases for non-assisted tenants where increases have been permitted under the Rent Guidelines Board for the last couple of years at a 3% level per annum. As a result, together with the Section 610 benefits for assisted tenants, overall average rents for the property have risen to $28.10 per square foot at the end of the quarter versus $26.38 at the end of the second quarter last year.

我們也為非受助租戶加價，過去幾年租金指導委員會允許其每年加價 3%。因此，加上為受援助租戶提供的第 610 條福利，本季末該物業的總體平均租金已升至每平方英尺 28.10 美元，而去年第二季末為每平方英尺 26.38 美元。

Rent collections across our portfolio remain strong. The overall collection rate in the second quarter on all residential properties was 98%. Collections at Flatbush Gardens have been at historically high 97% levels for the last two quarters without the benefit of the ERAP payments as in prior years. We are responsibly and steadily working through the court system to minimize arrears.

我們整個投資組合的租金收入仍然強勁。第二季所有住宅物業的整體回收率為98%。在沒有像往年那樣獲得 ERAP 付款的情況下，過去兩個季度，Flatbush Gardens 的收藏率一直處於歷史最高水平 97%。我們正在透過法院系統負責任且穩定地努力，以盡量減少欠款。

Looking ahead, we remain focused on optimizing occupancy, pricing, and expense across the business, expeditiously completing our development projects and fully implementing the Article 11 transaction to best position ourselves for growth.

展望未來，我們仍然專注於優化整個業務的入住率、定價和費用，迅速完成我們的開發項目並全面實施第 11 條交易，以便為我們的成長做好最佳準備。

I will now turn the call over to Larry who will discuss our financial results.

我現在將把電話轉給拉里，他將討論我們的財務表現。

Thank you, JJ. For the second quarter, we achieved record results on three measures important to us. Revenues increased to $37.3 million from $34.5 million last year, an increase of $2.8 million or 8.1%. NOI increased to $21.1 million from $19.2 million last year, an increase of $1.9 million or 9.9% and AFFO increased to $7.1 million from $5.5 million, an increase of $1.6 million or 29%.

謝謝你，傑傑。第二季度，我們在對我們很重要的三個指標上取得了創紀錄的業績。收入從去年的 3,450 萬美元增至 3,730 萬美元，增加了 280 萬美元，即 8.1%。 NOI 從去年的 1,920 萬美元增至 2,110 萬美元，增加了 190 萬美元，即 9.9%；AFFO 從 550 萬美元增至 710 萬美元，增加了 160 萬美元，即 29%。

For the second quarter, residential revenue increased to $27.7 million by $2.1 million. This increase was due to the strong leasing for all properties as previously discussed. Occupancy and rental rates were at all-time highs in the quarter. We further benefited in the quarter from $400,000 of Section 610 rents, which are now beginning to meaningfully contribute. We expect this revenue source to increase steadily over the next few years. Commercial revenue was flat in the quarter compared to last year.

第二季住宅收入增加了 210 萬美元，達到 2,770 萬美元。這一增長是由於前面討論的所有房產的強勁租賃所致。本季入住率和租金均創歷史新高。本季我們進一步受益於第 610 條規定的 40 萬美元租金，這些租金現在開始產生有意義的貢獻。我們預計這一收入來源將在未來幾年穩步增長。該季度的商業收入與去年持平。

On the expense side, key year-over-year changes quarter-on-quarter were as follows. Property operating expenses increased by $2.2 million year-on-year, $1.8 million at Flatbush Gardens working within the Article 11 agreement to fulfill so-called prevailing wage requirements to refurbish units for our new formerly homeless residents and to focus on general repairs and maintenance.

在費用方面，主要同比環比變動如下。物業營運費用比去年同期增加220 萬美元，其中Flatbush Gardens 的營運費用增加了180 萬美元，符合第11 條協議的規定，以滿足所謂的現行工資要求，為我們新的前無家可歸居民翻修公寓，並重點進行一般維修和保養。

Our utility gas expense also increased somewhat in the quarter from an underestimate in the first quarter. We expect expenses for refurbishment and repairs and maintenance expenses to decrease over time as we achieve the benefits of our capital spending.

本季我們的公用事業瓦斯費用也比第一季的低估增加。隨著我們實現資本支出的效益，我們預計翻新、維修和維護費用將隨著時間的推移而減少。

Real estate taxes and insurance decreased by $1.3 million in the second quarter year-on-year due to $1.8 million from the elimination of real estate taxes at Flatbush Gardens, partially off of a $400,000 for the routine increases in real estate taxes at the other properties and $100,000 for insurance cost increases.

第二季房地產稅和保險年減 130 萬美元，因為取消了 Flatbush Gardens 的房地產稅，減少了 180 萬美元，部分減少了其他房產例行增加的房地產稅 40 萬美元保險費用增加 10 萬美元。

General and administrative expenses increased slightly by $63,000 in the second quarter year-on-year primarily due to higher legal fees. Interest expenses increased by $407,000 in the second quarter year-on-year due to the additional $20 million of borrowings at 1010 Pacific Street in the third quarter last year.

第二季一般及行政費用較去年小幅增加 63,000 美元，主要是因為法律費用上漲。由於去年第三季太平洋街1010號新增2,000萬美元借款，第二季利息支出較去年同期增加40.7萬美元。

With regard to our balance sheet, we have $20.3 million of unrestricted cash and $16.5 million of restricted cash. In the second quarter, we had no new debt activity other than draws under the Dean Street property construction loan, which closed in the third quarter of 2023.

就我們的資產負債表而言，我們有 2,030 萬美元的非限制性現金和 1,650 萬美元的限制性現金。在第二季度，除了 Dean Street 房地產建設貸款（該貸款於 2023 年第三季結束）提取外，我們沒有新的債務活動。

Today we are announcing a dividend of $0.095 per share for the second quarter the same amount as last quarter. The dividend will be paid on August 22, 2024, to shareholders of record on August 15, 2024.

今天，我們宣布第二季股息為每股 0.095 美元，與上季相同。股利將於2024年8月22日支付給2024年8月15日登記在冊的股東。

Let me now turn the call back to David for concluding remarks.

現在讓我把電話轉回給大衛做總結發言。

Thank you, Larry. We remain focused on officially operating our portfolio. We look forward to the current operating improvements to continue to 2024 and 2025. We look forward to optimizing Flatbush Gardens' Article 11 transaction on 953 Street developments and other growth opportunities. Managing the New York City leasing issues at Livingston Street properties and to capitalizing on other possibilities that may present themselves. I would now like to open the line for questions.

謝謝你，拉里。我們仍然專注於正式營運我們的投資組合。我們期待當前的營運改善能持續到 2024 年和 2025 年。管理紐約市利文斯頓街房產的租賃問題，並利用可能出現的其他可能性。我現在想開通提問熱線。

Thank you. The floor is now open for questions. (Operator Instructions).

謝謝。現在可以提問。 （操作員說明）。

Buck Horne, Raymond James.

巴克·霍恩，雷蒙德·詹姆斯。

Hi, good afternoon, guys. Just kind of want to start with the office properties and kind of the situation there with the leasing arrangement or I guess with the notices provided by the City of New York there that there. Maybe, start with 250 Livingston, is my understanding that the, correct me if I'm wrong, if the revenue and the cash flows from 250 Livingston are those going directly into an escrow account for the lender's benefit at this?

嗨，大家下午好。只是想從辦公物業和租賃安排的情況開始，或者我想從紐約市提供的通知開始。也許，從 250 Livingston 開始，我的理解是，如果我錯了，請糾正我，如果 250 Livingston 的收入和現金流是直接進入託管帳戶以獲取貸款人的利益？

No, not at the [present] plan.

不，目前的計劃不是。

Okay. I'm sorry, I couldn't hear that. Is there a point at which if that leases, I mean, well, is there a risk at the revenues from that building east to flow to the company?

好的。抱歉，我聽不到。我的意思是，如果出租的話，是否存在某個點，東邊大樓的收入流向公司是否有風險？

Yes

是的

Okay. All right. And is there any notice of, and I know you're in the process of negotiating or negotiating that at least at 141 Livingston, but that cities already given notice at 250 that they're leaving? Have they provided any formal notice of their intention to leave 141 at this point?

好的。好的。是否有任何通知，我知道你們正在談判或談判，至少在 141 利文斯頓，但那些城市已經在 250 發出通知說他們要離開？他們目前是否已正式通知他們打算離開 141？

Larry?

拉里？

Well, no, the city -- well, maybe JJ, --.

嗯，不，是城市——嗯，也許是 JJ，——。

Yes, I'll take on this. On the contrary, they're actually looking for an extension. So when the midst of negotiating an extension with them, that's what we mentioned in the call that there's a conversation around the five-year extension.

是的，我會承擔這件事。相反，他們實際上是在尋求延期。因此，當與他們談判延期時，我們在電話中提到，圍繞五年延期進行了對話。

Okay. If there is an extension, my understanding is that building may require some significant upgrades or CapEx to refurbish it for any potential new leasing or extension or a new tenant. What kind of CapEx requirements do you think would be needed to extend that lease?

好的。如果有擴展，我的理解是，建築物可能需要一些重大升級或資本支出來翻新它，以適應任何潛在的新租賃或擴展或新租戶。您認為延長租約需要什麼樣的資本支出要求？

The extension that the city is looking for is not a CapEx type of extension. It's pretty much as is.

該市正在尋找的擴展不是資本支出類型的擴展。幾乎就是這樣。

Okay. And in terms of the thought process around marketing, 10 West 65 at this point, I guess, what is the need to sell that property at this point? Are you looking to raise liquidity for any other particular reasons?

好的。就行銷的思考過程而言，10 West 65 此時此刻，我想，此時出售該房產的必要性是什麼？您是否出於其他特殊原因尋求提高流動性？

There might be some better opportunities for the value in that property that we could achieve by selling it. So something we're looking at right now. So we're testing the market to see what kind of a price we might be able to achieve. And so several interested approaches. Once that thing is crystallized, obviously, we'll come back and invite the market at that. Right now, it's just in the preliminary stages of testing the market.

我們可以透過出售該財產來實現其價值，從而獲得更好的機會。所以我們現在正在研究一些事情。所以我們正在測試市場，看看我們能夠達到什麼樣的價格。等等一些有興趣的方法。顯然，一旦這個事情具體化，我們就會回來邀請市場。目前，仍處於市場測試的初步階段。

Okay. And is there any progress or thoughts on terms of extending or refinancing the mortgage on 1010 Pacific? I believe my notes are correct, that the mortgage is coming due in about a year's time. Any thoughts on refinancing 1010 Pacific?

好的。 1010太平洋的抵押貸款延期或再融資方面有什麼進展或想法嗎？我相信我的筆記是正確的，抵押貸款大約一年後到期。對 1010 Pacific 再融資有什麼想法嗎？

1010 Pacific, I mean, when the mortgage is getting a little bit closer to maturity, obviously we would think about refinancing it and seeing what levels of interest are available at that time but I would say Freddie Mac or Freddie may mortgage or with existing lenders is something that we will look at a bit later on. As we do expect that the overall rental markets will fix as the fixedterm mortgages are about to decrease as is noted by the Fed. (Technical difficulty)

1010 Pacific，我的意思是，當抵押貸款接近到期時，顯然我們會考慮對其進行再融資，看看當時的利息水平是多少，但我想說房地美或房地美可能會抵押貸款或與現有貸方合作我們稍後會討論這一點。正如我們確實預期的那樣，隨著聯準會指出的定期抵押貸款即將減少，整體租賃市場將趨於穩定。 （技術難度）

Okay. We have no further questions in queue. I'd like to turn the floor back to management for any closing remarks.

好的。我們沒有其他問題了。我想請管理階層發表結束語。

Thank you for joining us today and we look forward to speaking with you again soon. Good night.

感謝您今天加入我們，我們期待很快再次與您交談。晚安。

Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation

謝謝你們，女士們、先生們。今天的電話會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與