Tanger Inc (SKT) 2009 Q1 法說會逐字稿

Good morning, and welcome to the Tanger Factory Outlet Centers' first quarter 2009 conference call.

Please note that during this conference call, some of management's comments will be forward-looking statements regarding the Company's property operations, leasing, tenant sales trends, development, acquisitions, expansion, and disposition activities, as well as their comments regarding the Company's funds from operations, funds available for distribution and dividends.

These forward-looking statements are subject to numerous risks and uncertainties, and actual results could differ materially from those projected due to factors including, but not limited to, changes in economic and real estate conditions, the availability and cost of capital, the Company's ongoing ability to lease, develop and acquire properties, as well as potential tenant bankruptcies and competition.

We direct you to the Company's filings with the Securities and Exchange Commission for a detailed discussion of the risks and uncertainties.

We also direct you to the Company's prospectus as filed with the Securities and Exchange Commission on Form S4 for the complete details of the Company's exchange offer relating to our 3.75% exchangeable notes.

Reported tenant comparable sales numbers discussed today are for the Company's wholly owned portfolio and exclude the centers in Foley, Alabama, and on Highway 501 in Myrtle Beach, South Carolina, both of which underwent major renovations during the last year.

This call is being recorded for rebroadcast for a period of time in the future.

As such, it is important to note that the management's comments include time sensitive information that may be accurate only as of today's date, April 24th, 2009.

(Operator Instructions) Following management's prepared comments, the call will be opened up for your questions.

On the call will be Stanley Tanger, Chairman of the Board, Steven Tanger, President and Chief Executive Officer, and Jim Williams, Senior Vice President and Controller.

I will now turn the call over to Steven Tanger.

Please go ahead, sir.

Thank you, operator.

Good morning, everyone.

There is currently a lively debate within the REIT industry with regard to many REIT's shift in their dividend policies.

We were pleased to announce on April 9th, that our Board of Directors had approved an increase in our annual cash dividend rate from $1.52 to $1.53 per share.

We're proud of the fact that we have raised our dividend each of the 16 years that we have been a public Company.

Our budget for 2009 currently anticipates year end funds available for distribution, or FAD, in the mid 60% range.

That means our existing cash dividend is 150% covered from operating cash flow.

We do not use our lines of credit to fund our dividend.

One of the reasons investors buy REIT stocks in Tanger is the expectation of a total return, including a cash dividend.

Frank Marchisello, our Executive Vice President and Chief Financial Officer, who normally participates in our earnings call, is a little under the weather today so I'm pleased to have Jim Williams with me on the call.

I'm going to turn the call over to Jim now, who will take you through our financial results for the quarter, and then, I will follow with a summary of our operating performance and our current expectations for 2009.

Jim?

Thank you, Steve.

Good morning, everyone.

Let me take you through our financial results quickly, and then, I will take a few minutes to discuss the outstanding exchange offer relating to our 3.75% exchangeable notes.

Our current year and prior year comparative results have been adjusted to include the impact of a number of new accounting pronouncements.

The most material of which is FSP APB14-1, accounting for convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement.

Net income available to common shareholders for the first quarter of 2009, was $0.92 per share, compared to $0.16 per share in the prior year.

Funds from operations for the first quarter of 2009 increased approximately 12% to $0.66 per share, compared to $0.59 per share the previous year.

The increase in FFO was driven by our ability to increase rental rates on renewals and released space as well as incremental FFO from our new center in Washington, Pennsylvania, which opened during the second half of 2008.

Our FFO payout ratio for the first quarter was approximately 58%, and our FAD payout ratio was 69%.

We are currently budgeting to spend less than $8 million in capital projects in 2009, compared to $30.8 million we spent in 2008.

This will bring our FAD payout ratio down substantially and most likely in the mid 60% range by year end.

At these levels, our dividend is well covered and we'll generate incremental cash flow over our dividends which we plan on using to reduce our outstanding lines of credit.

On a consolidated basis, our total market capitalization as of March 31, 2009, was approximately $2.1 billion, and our debt to total market capitalization was approximately 40.5%.

We also maintained a strong interest coverage ratio of 3.34 times for the quarter.

As of March 31, 2009, approximately 77.8% of our debt was at fixed rate.

Our only floating rate debt is $188.4 million outstanding on our $325 million in unsecured lines of credit, which have an interest rate ranging from 60 to 80 basis points over LIBOR.

Our wholly owned portfolio properties was 95% unencumbered.

We had no outstanding debt maturities until June of 2011.

Our balance sheet strategy has always been conservative.

With that in mind, let me just take a couple of minutes to discuss the outstanding exchange offer for our 3.75% exchangeable notes.

We're proposing to deliver to holders of the bonds, Tanger common shares.

They'll receive 27.7434 common shares for $1,000 principal amount of the notes, which is based on the current conversion price of $36.04 per share.

They will also receive the number of shares equal to $215 based on the average of the volume weighted average prices over an eight trading day averaging period, subject to a minimum and maximum number of common shares, as described in the prospectus for the offer.

In total, this represents a premium to recent trading levels on the notes of approximately 7% to 8%.

Because our stock price is relatively close to the exchange price of the exchangeable notes, our notes still have significant equity content.

We believe this is a very efficient way to reduce debt and raise equity, more efficient than incurring the market discount and issuance cost associated with a marketed or block common share offering.

We believe that many note holders are already short a significant percentage of the shares underlying the exchangeable notes.

This should reduce the selling pressure that would otherwise be caused by issuing a significant number of common shares.

This transaction allows us to match what is essentially an equity issuance with the use of proceeds targeted at the exchangeable notes.

Put another way, we're raising equity only to the extent the exchangeable notes are tendered, and thus, will not raise any more or less equity than is needed to complete this transaction.

Assuming all notes are tendered and accepted, and a volume weighted average price of $34.01, the closing price of our common shares as of last night, we estimate that our debt to total market capitalization ratio would decrease to 33.5% from 40.5%, and our interest coverage ratio would improve to 4.21 from 3.34.

In addition, we estimate that exchange of all of the outstanding notes would reduce our funds from operations available to common shareholders by approximately $0.07 per share on an annual basis.

Our ultimate goal in pursuing this transaction is to proactively address a pending 2011 maturity.

Other than these exchangeable notes, all of our 2011 maturities relate to commercial banking facilities, including a $235 million term loan and amounts outstanding on unsecured lines of credit.

I will now turn the call over to Steve.

Thank you, Jim.

I'm pleased to report that so far, this year, we have continued to see positive rent spreads on the renewal and releasing of space within our portfolio.

Our average cost of occupancy for 2008 was 8.2% of average tenant sales, which still provides us the opportunity to raise rental rates on the re-leasing and renewal of space.

We've already made great progress on our 2009 renewals throughout our wholly owned portfolio.

As of the end of March, we have obtained executed renewals and renewals in progress for 951,000 square feet, or about 63% of the space coming up for renewal during 2009, with an increase in average base rental rates on the executed renewals of 14.5%.

This compares to 493,000 square feet, representing 67% of the total square feet, up for renewal at this time last year, with an increase in average base rental rates on the executed renewals of 17.9%.

In addition, during the first quarter, we retenanted approximately 188,000 square feet, with an average increase in base rental rates of 42.4% compared to last year at this time when we re-leased 279,000 square feet, with an increase in average base rental rates of 41.7%.

Same center NOI growth during the quarter was 2.4%, compared to 2.5% in the fourth quarter of 2008.

Our overall occupancy rate for our wholly owned stabilized properties was 93.5% at the end of the quarter, compared to 95.2% last year.

Reported tenant comparable sales within our wholly owned portfolio decreased 3.2% for the rolling 12 months ended March 2009, to $338 per square foot.

Our portfolio does not have many luxury stores, which have been suffering the steepest decline in sales.

Most moderate stores did not have the robust sales increases in 2008, so they plan more modest inventory levels in 2009.

Percentage rents, which are paid by tenants once their total sales exceeds certain levels, represents less than 3% of our expected total revenues during 2009.

Approximately 93% of our total revenues are expected to be derived from contractual base rents and tenant expense reimbursements.

In addition, no single tenant accounts for more than 8.4% of our gross leasable area, or 5.5% of our base and percentage rents.

Most of our tenants have very strong balance sheets.

They're not encumbered by the excess debt layered on by most LBOs which have caused several of the high profile bankruptcies.

On January 5, 2009, we acquired the remaining 50% interest in the joint venture which owns the Tanger Outlet Center located on Highway 17 in Myrtle Beach, South Carolina.

The net purchase price of $32 million was funded from amounts available on our lines of credit.

The property is currently subject to a $35.8 million mortgage which matures on April 7, 2012, assuming we exercise a two year extension option.

There is an interest rate swap on the loan that fixes the rate on $35 million of the loan at 5.99%, and the remainder of the loan is a floating rate of LIBOR plus 140 basis points.

The current loan to value is about 36%.

This is an A property which we obviously know very well.

This acquisition will be immediately accretive.

Gaining complete ownership of the property will allow us to capture 100% of the future upside over the long-term.

With respect to earnings guidance for 2009, based on our view of current market conditions, we believe our estimated diluted net income per share for 2009 will be between $1.35 and $1.45 per share, and our FFO for 2009 will be between $2.73 and $2.83 per share.

In our earnings guidance, we are assuming that same center NOI grows by approximately 1% to 2%.

The growth in NOI will be driven by continued increases in renewal and re-leasing spreads during 2009.

Rental rate increases, however, will be offset somewhat by what we expect will be slightly lower average occupancy rates over the next 12 months, relative to last year as we continue to fill vacancies within our portfolio.

In our guidance, we also assume our tenants will be challenged to maintain sales as increased discounting and price deflation will most likely continue in 2009.

We are projecting percentage rental revenues to decrease, which is a direct result of lower sales.

Our guidance range also reflects the accounting change relating to the recording of additional non-cash interest expense associated with our $149.5 million of outstanding convertible debt, which requires booking interest expense at 6.1%, even though our actual rate is 3.75%.

This will have a negative impact on earnings of approximately $0.07 per share.

We will not adjust our guidance for the potential impact of the exchange offer relating to our 3.75 exchangeable notes until this transaction is completed.

We plan to continue to thoughtfully use our resources and to maintain a conservative financial position.

These are unprecedented times, but our Company is positioned to get through the headwinds successfully.

Our solid balance sheet with no upcoming debt maturities in the next two years puts us in a very strong position going into 2009.

Operator, we'll now take any questions that people may have.

(Operator Instructions) Our first question comes from Jay Habermann with Goldman Sachs.

Your line is open.

Hey, Steve, good morning.

Good morning, Jay.

Certainly send my best to Frank, I hope he feels better.

Can you comment a bit just on the occupancy drop off, timing of which, in terms of impact, in terms of cash flows, was most of the drop off in occupancy reflected in Q1 or should we expect there to be additional impact in the second quarter, and can you give us a little details on the space that was vacated and what sort of segment is there?

These are obviously unprecedented times so it is difficult to project.

In the close to 30 years we've been in business, the first quarter usually drops 150 to 200 basis points from year end.

That's from seasonal temporary tenants leaving at the end of the year, and tenants that are struggling usually try to hold on until the end of the year, and then, in the first quarter, close.

We have experienced a slowdown like other people in the re-leasing of vacant space.

I think that's part of it.

The good news is that we only received back about 28,000 square feet in the first quarter from tenants.

So, that seems to be slowing down and we're working hard to fill the vacancies.

Ok.

And then, you mentioned still maintaining the guidance.

I think on the last call, you mentioned average occupancy of 95%, and still 1% to 2% same store NOI growth.

I know you've dipped below 95% for the first time in your history, but can you give us some comments of where you think occupancy shapes up toward year end?

The guidance, Jay was for 95% at year end, and we have maintained year end occupancy, at or greater than 95% for the 28 years we've been in business.

Ok.

We have dipped below on any particular quarter, particularly the first quarter, occasionally below 95%, but we have, during the course of the year, filled those vacancies.

So, our guidance is at year end, at a 95% occupancy.

Fair enough.

And then, can you give us some sense of larger stores versus smaller stores, and just different markets?

I know as you look at some of your centers, occupancy has fallen off quite a bit.

I mean even Riverhead is down a few hundred basis points, but some other centers are now in the mid 80% range.

We don't have a lot of large stores, fortunately.

The configuration of our centers is easy to re-tenant.

Most of the space is 100 feet deep.

We do not have any second level retail or odd shaped boxes.

So, it is just a confluence of a lot of smaller stores through various reasons, leaving, and we're in the process of refilling that space.

Okay.

Lastly, I just want to ask the question in terms of you mentioned some of the levered deals and how that's impacted the retailers, but have you seen any opportunities where levered transactions might create some buying opportunities for assets?

Not yet.

Ok.

Thanks, Steve.

Our next question comes from Quentin Velleley with Citi.

Your line is open.

Good morning, guys.

Just on Deer Park, I notice the cash yield looks like it has increased to about 4% annualized.

I'm just wondering whether you've revised the target as to when you expect the rates for the stabilization yield which is about 8.5%?

Again, these are unprecedented times.

Deer Park opened on October 23rd.

We couldn't have picked a more perfect time to go right in the eye of the perfect storm.

We have not executed several or many new leases since we opened.

We had anticipated in the normal environment, the lease up would have gone more rapidly, particularly since this is a high volume center.

Historically, we would have reached the stabilization within the first 12 months.

I have no idea how far out that's going to go.

It may be 12 months from now, which would be 18 months from opening, but that's just a guess.

Ok.

And just also on your Washington asset, which you recently completed, I just noticed the occupancy ticking down, just wondering if you could comment on how that asset is performing?

The asset is performing above most retailer plans.

The slight drop in occupancy is a couple of small tenants that went out.

It is not a significant number of square feet.

The racetrack across the street which has a pari-mutuel betting and a casino just opened a week ago, and it is a high-volume facility.

So, we anticipate sales throughout the summer months to grow substantially with the increased traffic provided by the casino.

We're extremely optimistic.

The property still maintains in the mid 80% occupancy level and we expect that to continue to grow.

Once again, that is a new property that opened over Labor Day, last year.

So, we really have not seen a summer season which would be more high volume yet, but we're anticipating great results.

That's great.

Thank you.

Your next question comes from David Fick with Stifel Nicolaus.

Your line is open.

Good morning, Steve.

Hi, David.

Is that really you, David?

Yes.

How you doing?

Doing well, thank you.

You didn't talk a whole lot about development.

I'm assuming that you have prudently decided to hold out for higher yields and are pushing back, given the Deer Park issues and the general market, is that a correct conclusion?

Yes.

Any thoughts on when that might change, on what you're hearing from tenants at this point?

We're in constant contact with the tenants and they will drive our decision.

If we can get the returns that meet our investment criteria and we get executed leases, we will proceed.

If not, we will abandon the project or put it on hold.

What would be an appropriate development at this stage?

David, I wish I could tell you because, candidly, I'm not smart enough to figure out our cost to capital in today's market, but it certainly would be in the low double digits, but we don't know yet.

Can you comment on the historical trends compared to today on the outlet business in general, obviously same store is down and we do appreciate your reporting that detail?

Is this a traffic issue, or is it just simply discounting in price points and the volume is still strong?

And then secondly, where are you seeing strength and weakness in terms of category, say electronics, compared to kids, compared to fashion?

Let me take one thing at a time.

Traffic levels appear to be holding down slightly.

There is price deflation in apparel and footwear and athletic wear.

Pretty significant price deflation.

So, to even break even, the number of units going through these stores is huge.

I think that is contributing to the decline in sales.

I will say that what we reported, I think when all of the reporting is done in the next couple of weeks, our numbers, even though they're down, should look pretty good.

With regard to categories, we have very little, if any, consumer electronics.

Somewhere about 85% of our portfolio is footwear, apparel, various all types of apparel and jewelry.

Some of the jewelry store sales are down.

Basically, David, it is across the board.

With one or two exceptions with robust sales increases, the rest of them are pretty flat to down.

On the electronics, I was thinking of a Bose or a Bang and Olufsen.

You have a fairly wide, standard deviation sort of top to bottom within a center with the higher end Nike, Polo at one end, and the Carter, Oshkosh and some of the footwear guys, Danskin at the bottom end.

Are you seeing more erosion at the bottom end or at the top end at this point?

It is across the board.

There's no clear definition.

We don't have many luxury tenants.

From what we understand, they suffered the steepest declines.

Our target market is the middle to upper middle class and the price points associated with that, and that has been fairly stable to down.

By the percentage end, you can see the average decline.

I can't point to one thing in one category.

Ok, so, it is across the board.

The Saks Fifth Avenue presence, how many of those stores do you have?

We have two stores, David.

One in Riverhead and the other in Deer Park, both on Long Island.

Enough said.

Thank you.

Our next question comes from Fred Taylor with MJX Asset Management.

Your line is open.

Hi, Steve.

I think the exchange offer is a great idea.

Thank you, Fred.

Even though we're two years away, any thoughts on the bank maturity in 2011, and the mortgage maturity in 2012?

Might you start thinking about a refi later this year or into 2010?

We're thinking about it.

The first step is to successfully complete the exchange and I appreciate your positive comments.

Once that is off the table, we have already met with several, if not most, of our banks that are in the facilities that you mentioned.

Right.

And we're a little over two years away, probably 26, 27 months away from maturity.

So, we're going to do the exchange first, and then, we're going to go talk to the banks, probably this summer to early fall.

Ok.

That's all I had.

Thank you, sir.

Thank you, Fred.

Our next question comes from Gregory Holstrom with Good Samaritan.

Your line is open.

Yes, about Deer Park, are they going to add more tenants in the coming years?

Our plan is to add more tenants.

Which ones are they talking about?

We only announce tenants once leases are signed.

Are they the same stores as Riverhead or maybe some different ones?

Once leases are signed, we'll announce them.

These are two different properties serving basically two different markets.

There is some overlap in tenants between the two, but there is a lot of unique tenants in each center.

Since Deer Park opened, I know it has been a really good area for it.

I'm sorry.

I didn't understand your question.

Since Deer Park opened, it turned out to be a really nice one.

Thank you.

Is Riverhead still going to have more tenants coming in, too?

That's our plan.

That's all I have to say.

Thank you.

Goodbye.

Our next question comes from Michael Mueller with JPMorgan.

Your line is open.

Hi, my question has been answered.

Thank you.

Thank you, Mike.

Alright.

(Operator Instructions) Our next question comes from Rich Moore with RBC Capital Markets.

Hello, good morning, Steve.

On ICSC that's coming up next month, what is that looking like for you?

How would you characterize the interest in tenants meeting with you versus previous years?

We fully support ICSC.

We think it is a good use of our time to bring our group out there and talk with our tenants.

So far, we're about a month away or three weeks away.

The tenant meeting schedules are pretty much comparable to what they have been in previous years.

So, we're expecting to have a full calendar as we've always had.

Ok.

Great.

Thank you.

And then, as you look at 2010 leasing, I'm sure you are already well underway looking at 2010, what are you seeing as you think about leasing for 2010?

Are we seeing more of the 2009 sort of caution by the retailers or is that beginning to loosen a bit?

We don't have that much focus on 2010 yet.

Most of the tenants are still focusing on the balance of 2009.

Most of the tenants we work with do not have their capital allocation for 2010 yet.

Ok.

Then, as you look at the leasing that you're doing, are concessions prevalent?

Are there a lot of requests for concessions or is that abating as well?

Concessions are not prevalent and they are abating.

Ok.

I noticed that the expense recovery ratio was down slightly from a year ago and a little bit below what we had anticipated.

Is there anything in particular on the expense recovery line that's occurring?

Jim, you may want to take that.

Rich, I don't think there's anything in particular that stands out, other than a slight decrease in the occupancy rate, having an impact on that line.

Okay.

Were there some true ups as well, Jim?

We had some true ups.

Ok.

Thank you.

Then the last thing I have, you talked to the lenders, even though I realize you don't have to have the deep negotiations yet.

How would you characterize the conversations with them?

I realize that you're getting done what you're getting done, and if you don't have anything, you're not necessarily getting anything done, but the tone is what I'm looking for versus say six, seven months ago.

How would you characterize where we are today?

My grandfather taught me you never go to a bank if you really need money.

We're going there with a pristine balance sheet and very robust cash flows, and the metrics in our business are still extremely positive and the banks appreciate that.

We're having positive and constructive conversations with them.

We have not entered into, because it is premature, definitive conversations about extending our lines of credit or extending the term loan.

Ok.

It sounds like your grandfather was a pretty wise man.

Thank you very much, Steve.

Our next question comes from Jay Habermann with Goldman Sachs.

Your line is open.

Steve, just one follow-up.

Back to Dave Fick's question on the different segments within retail, can you comment a bit about some of the more traditional mall tenants?

Are you seeing the Coaches of the world?

Are they still going to expand, given the sort of low occupancy cost that the outlets offer or are you seeing risk of those sort of stores closing too, sort of the more traditional mall tenants?

We're talking to all tenants, including the mall tenants.

Coach, that you mentioned, is still doing very well.

They're increasing the size of their footprint in our successful malls.

Okay.

So, you are seeing more demand as the occupancy costs as the driver?

The outlets are, for most of our tenants, the most profitable distribution channel, and as such, it provides most of our tenants with the highest and fastest return on their invested capital.

So, we're seeing a lot of interest in space from people that we had not talked to or opened stores before, and that continues.

Ok.

Thank you.

Our next question is from David Fick from Stifel Nicolas.

Just a quick follow-up.

Can you talk a little bit about tenant concession request, number one?

And number two, what you expect out of ICSC next month, both in terms of traffic and deal volume?

We have received requests for occasional rent relief from tenants.

We ask the tenants to fill out a highly detailed questionnaire and have it certified, showing us exactly their cost structure, and once we request that, most of the asking for rent relief stops.

But when a tenant can prove to us that they do need relief, we will consider, based on the tenant and the location, a short term, usually through the end of the year, some modification to try to help both of us.

Help us maintain occupancy and to help the tenant, but they have to prove to us, as opposed to just asking, because they feel they should.

Second, what we hope to get out of ICSC.

There is never a downside if we can meet with a couple of our tenants face to face.

Good things always seem to happen, it is a very efficient use of our time in three, four days to meet with a broad spectrum of our tenants.

Why do you think so many of your peers have decided to fly out of Las Vegas?

Dave, I think you'll have to ask them.

Thank you.

Our next question comes from the line of Harvey Shore with East West Investments.

Your line is open.

I know it is a little early, but do you think the fires in Myrtle Beach will have any effect on traffic, going forward down there?

First of all, Harvey, I'm glad you asked.

Our hearts and prayers go out to the hundreds of families that have been displaced.

Thank God the fires appear to be under control.

They did not damage any of our properties.

As far as Myrtle Beach, to my knowledge, hasn't really hurt any of the tourist attractions, and it is early.

So, I don't anticipate that this one event would lead to any downturn in the tourism.

That's good.

Also, regarding your stock, it seems interesting that your occupancy rate is remarkable in the mid 90s, but you seem to be lumped in with commercial real estate.

When there is a downturn in it, they think that your properties are in commercial real estate, and/or recently some of the retail malls, one specifically filed for bankruptcy and so your stock took a hit.

I think if you could do a better job in delineating out your Company.

It has nothing to do with those other properties or categories, and the fact that you increased your dividend when most companies are decreasing or eliminating their dividends.

So, I was wondering whether or not you have noticed that as your stock moves up and down with categories that you don't really fit into?

We long ago stopped trying to figure out the stock market movements.

We are in a business with long-term assets, with long-term strategy, with long-term financing, and over time, the markets will reflect the shareholder value that we're creating.

This market doesn't really take notice of good news too much, but we are happy for you to spread the word, and thank you for your kind comments.

Ok.

Thank you.

Our next question comes from Ben Yang with Green Street Advisors.

Your line is open.

Hi, good morning.

Steven, the overall occupancy in your portfolio is definitely healthy, but you do have a handful of centers with low occupancy levels.

Is co-tenancy an issue for low outlet centers?

We have, so far, not had any co- tenant issues and we don't anticipate any.

But, is it written into some leases at your centers?

Occasionally there are, but they're at sufficiently low levels that it is not an issue.

Keep in mind, Ben, most of the co-tenant issues that are gaining attention of the analyst community today, have to do with the large department stores and regional mall formats or in power centers or other types of formats, not ours.

So, even though there are operating co-tenant clauses in some of our leases, we are substantially way above it.

But, couldn't occupancy in certain of your centers fall below a certain break point to the point where those tenancy issues become relevant?

You have a center at 78% percent occupancy and another one at 58% occupancy as of the end of last quarter.

Is that not an issue for those centers in particular?

The one you're talking about is a small center in Commerce, Georgia, which has been open for over 20 years, and right now, that does not appear to be an issue.

The other one is 78% is substantially above any co-tenant issues.

Great.

Thank you.

(Operator Instructions) We have no further questions at this time.

I want to thank everybody for participating and your questions today.

We're always available to answer anything in more detail after the call.

Thank you again, and have a great day.

Goodbye, now.

This concludes your conference call for today.

You may now disconnect your lines.