Modiv Inc.

Thank you, Megan. Hello, everybody, and thank you for joining our first quarter earnings call. Joining me today is Ray Piccini, our CFO, who will cover our financial results in detail following my opening remarks. Then I will close with a few more thoughts before we open the line for Q&A. First, some highlights from the quarter. As you saw, we grew our first quarter AFFO by 33% to $3 million. We grew total revenues by 7% to $9.7 million. We are pleased with these results and the accretive acquisitions that drove them. Being cognizant of the fact that past results do not always indicate future performance and also understanding that this quarter is really the baseline for investors looking ahead, I balanced my positivity with the belief that the combination of our experienced team and the small size of our company will enable Motive to produce similarly strong results in the future as we continue to execute methodically quarter after quarter. As a management team, we have decades of real estate experience and have managed real estate through multiple economic cycles. Despite the recent extreme volatility in the capital markets, our team has been disciplined and focused on improving our company every day. We've been heads down, executing on our long-term strategic priorities, including diversifying our assets away from non-core office properties, increasing our vault, further refining our processes, and in generating long-term earnings power for our shareholders. At our core, we are a no-frills team that balances intellectual curiosity, a belief in the shareholder, a strong worth ethic, and years of hard earned experience with our character traits of discipline, prudence, and patience. The result is a team that is punching well above its proverbial weight class and achieving results typically only seen in much larger enterprises. Case in point, in only the first five months of this year, our team of only 13 individuals has acquired $133 million of properties at favorable cap rates, sold $40 million of properties as part of our strategic plan, structured a new $250 million credit facility, and listed on the New York Stock Exchange. Additionally, we are pleased to include with this quarter's results our first earnings supplement, as well as our inaugural AFFO guidance, both examples of added disclosure that are not normally associated with a small-cap REIT that has been publicly listed for less than 100 days. We are very optimistic about Motive's future, not because we are optimists, but because we know how to put in the work. Before I delve into our 2022 AFFO guidance, I want to say a few words on the current market environment. The instability and uncertainty we are witnessing in the public REIT market has also translated into the real estate transaction markets. We are witnessing delays or deal cancellations, both on acquisitions and dispositions, as market participants wrestle with a rising rate environment and a cloudy economic outlook. We've already seen cap rates gap 25 to 50 basis points on several deals, while other deals are simply getting pulled from the market without any pricing whatsoever. We don't believe that the market or cap rates have found solid ground yet, but we certainly do expect that cap rates could widen should the turmoil progress. As an adjunct, we believe Motive's share price is suffering from some obvious drivers to include, one, a broad sell-off of the net lease REIT sector over the past three months, two, the fact that our stock is extremely thinly traded, three, our legacy retail investors selling via market orders, though that is starting to decline on the margin, and four, a general lack of awareness from the institutional investor community due to natural market-driven bandwidth distractions. In total, these drivers are weighing on our share price and have created a substantial discount to NAV. Based on our recent $28 appraised NAV per share, our current trading price levels imply a discount of greater than 40%. We believe institutional investors are attracted to our name, but given that we are thinly traded, it is extremely hard to build a position. As an anecdote, Just the other day, I saw that a tiny 250 share transaction moved our stock by more than 2%. We are focused on changing this dynamic as the summer rolls along. On the bright side, nearly 60% of our legacy investors have already moved their holdings into street name, which will facilitate liquidity. And we are also responding to the reverse increase of institutional investors seeking to build a position. However, until the broader market turmoil subsides, we do not necessarily expect any immediate meaningful change in trading behavior. At Motive, we believe that disciplined patience is the right strategy at this moment in the market. We strongly believe our current share price offers a compelling investment opportunity. We also are not feeling pressured to meet any particular acquisition goal in terms of our real estate acquisition. We remain selective in choosing the right time and the right properties. This is true for both our acquisitions and our dispositions, and we are being prudent in finding the most accretive options on both sides. We also recognize that action is required at other times in a volatile market. To this end, we responded to the rising rate environment by recently instituting a swap position on our $150 million term loan that resulted in a fixed rate of less than 3.9% at current debt levels and now positions our entire debt stack at 93% fixed rate. Ray will provide more detail on this in his remarks. Lastly, a moment on our 2022 AFFL guidance. It was not without hesitation that we released guidance so early after going public. We do so with the belief that disclosure is instrumental in helping reduce our implied share price discount and helping investors make sense of our recent financial results. For the full year 2022, we are providing an AFFO range per fully diluted share of $1.26 to $1.36. To achieve the higher end of the range will require us to achieve at least another $50 million of acquisitions. The lower end range would result from a successful sale of more of our non-core assets as part of our long-term strategic repositioning plan of reducing office exposure and seeking industrial and select retail properties with annual rental growth. As mentioned previously, we remain patient, prudent, and disciplined with our goals and will not seek to chase any unbalanced results. Overall, I'm proud of how our company has navigated this turbulent market environment this year. From avoiding a dilutive IPO in February, to allowing all 7.6 million of our shares to be freely traded without lockups, and to completing significant transformational acquisitions to our portfolio that further shore up our balance sheet. All these factors solidify our ability to offer long-term accretive growth to our shareholders. I will now turn the call over to Ray Pacini for his remarks.

Thank you, Aaron. Hello, everyone. I will now discuss our first quarter 2022 operating results, provide an update on our portfolio, and cover our balance sheet, recent capital markets, transactions, and liquidity. As mentioned, first quarter AFFO increased 33% to $3 million, or $0.29 per diluted share, from AFFO of $2.2 million, or $0.25 per diluted share, in the first quarter of 2021. The primary drivers of the increase are our recent accretive acquisitions and the rent bumps of the portfolio. Given the relatively low denominator due to our current size, it is reasonable to see meaningful increases in AFFO as we continue to acquire assets. Total first quarter revenue increased 7% to $9.6 million from $9 million in the year-ago quarter, reflecting growth in our portfolio. The revenue increase largely reflects the rental income contribution from the four property acquisitions made during the second half of 2021 and January of this year, partially offset by the decrease in rental income from five dispositions during 2021 and four dispositions in February 2022 associated with our long-term strategic reduction in office. On the expense side, G&A costs were $2.1 million in the first quarter, down from $2.7 million in the first quarter of last year. This reduction is intentional as we are mindful of G&A and are focused on maximizing the value of every dollar of expense. The year-over-year decreases primarily came from reductions in marketing, legal and consulting fees, and technology services, resulting from our exit from the crowdfunding business and our continued process improvements now that we are a listed company. Our property expenses were 2.8 million in the first quarter, an increase from 1.8 million in the prior year period. The increase in property expense reflects higher property and other taxes during the current year quarter as our portfolio grew, although most of these expenses are offset by tenant reimbursements included in revenue. The increase in property expenses also includes a one-time write-off of approximately half a million dollars related to the canceled acquisition of 10 properties leased to Walgreens given changes in market conditions and the failure to obtain the mortgage servicer's approval prior to the contract termination date of February 18th, 2022. Our first quarter results also included a one-time non-cash goodwill impairment charge of $17.3 million related to our legacy crowdfunding business, which we acquired in 2019 from our former sponsor. We closed this crowdfunding business as a result of our listing event in February. The impairment charge, taken in accordance with GAAP, resulted from the current market value of the company's common stock being materially below both the historical net asset value and the book value of our equity. Now turning to our portfolio. Before discussing the first quarter, I'd like to take a moment to provide some history on our strategy. During 2020 and early 2021, we were focused on repositioning our portfolio and monitoring the potential impacts of the COVID-19 pandemic. In mid-2021, with the portfolio stable, we began to ramp up our acquisition activity. We have also repositioned our portfolio to focus on properties primarily in the industrial sector and also in select retail assets, while continuing to execute upon our long-term strategic plan to reduce our exposure to office properties. In January of this year, we invested $77 million in two properties at an average initial cap rate of 5.8% and a weighted average cap rate of 7.5%. The first acquisition was an Upreet transaction for one of the three largest Kia auto dealerships in the US, located in the 405 freeway in Carson, California, on the way to LA. This transaction resulted in 32.8 million of equity being issued at $25 per share. The second acquisition we completed in January was an industrial property in Minnesota, leased to Calera Inc, a company that performs indoor vertical farming at an initial cap rate of 7% and a weighted average cap rate of 8.9%. Subsequent to quarter end on April 19th, we acquired an eight property portfolio leased to Lindsay Precast for a total purchase price of 56.1 million at an initial cap rate of 6.7% and a weighted average cap rate of 8.5%. Lindsay is an industry leading precast concrete manufacturer and steel fabricator. and the portfolio has properties in Colorado, Ohio, Florida, and North and South Carolina. Including this transaction, our year-to-date acquisition activity totals $133 million at a blended weighted average cap rate of greater than 7.9%. We have a strong pipeline of potential acquisitions under review, and we will continue to patiently pursue accretive opportunities subject to both market conditions and balance sheet disciplines, as the year progresses. Now I'll provide some color on our portfolio management activities, which are a key component of our ability to generate long-term returns for our shareholders. During February, we sold three office properties and one industrial property for $40 million and net proceeds of $16.9 million after repayment of the related mortgages, commissions, and closing costs. These proceeds were redeployed into the Lindsay acquisition via a 1031 exchange. Taking into account these recent acquisitions and dispositions, as of today's date, our portfolio consists of 44 properties located in 16 states. The portfolio is comprised of 20 industrial properties representing approximately 46% of the portfolio based on an annual base rent. 13 retail properties representing approximately 19% of the portfolio, and 11 office properties representing approximately 35% of the portfolio. Six months ago, our non-core office exposure was 50%, and further reductions are planned over future quarters. Now turning to our balance sheet and capital markets activities. On January 18, 2022, we obtained a $250 million credit facility, We use this facility to refinance $108 million of our property mortgages, refinance a $36 million mortgage on the Kia Auto dealership, which we acquired on the same day, and refinance the $8 million balance of our previous credit facility. An additional $22 million of mortgages were repaid in connection with our February asset sales. After taking into account the new credit facility, the two acquisitions in January and four dispositions in February this year, The company's pro forma leverage as of March 31, 2022, was 34%. We define leverage as debt as a percentage of the aggregate fair value of the company's real estate properties, plus the company's cash and cash equivalents, which conforms with the definition in the key bank credit agreement. Over the next 12 months, we are targeting a leverage ratio of approximately 40%, although we may exceed that if we identify attractive acquisition opportunities in advance of completing dispositions or raising capital. Once we achieve greater scale of roughly $1 billion in AUM, we expect to reduce our leverage ratio to be increasingly more in line with our larger peers. As of March 31st, 2022, we had total cash and cash equivalents of 25.3 million and 166 million of outstanding indebtedness, consisting of 45 million in mortgages and 121 million outstanding under our credit facility. Following the Lindsay acquisition, where we drew 44 million under the credit facility, borrowing capacity on the credit facility today is $36 million. In May, we also executed a five-year interest rate swap on our $150 million term loan, resulting in a fixed interest rate of 3.858% when our leverage ratio is less than or equal to 40%. Based on the current balance sheet, approximately 93% of the company's indebtedness now holds a fixed interest rate. As previously announced, our board of directors declared multi-month cash dividends for our common shares of approximately 9.6 cents for the months of April, May, and June, representing an annualized dividend rate of $1.15 per share of common stock. Based on our recent trading price, this dividend equates to greater than a 6.5% annual dividend yield. As Erin mentioned, we have introduced 2022 annual AFFO guidance in the range of $1.26 to $1.36 for diluted share. In future quarters, as our company becomes more broadly followed by the institutional investment community, we will explore expanding both our guidance and disclosures to even further align ourselves with industry best practice. I will now turn the call back over to Aaron. Thank you, Ray.

At Motive, we continue to be relentlessly committed to pursuing our long-term strategic goals. Although the market and the economy has thrown some curveballs this year, we have proven ourselves to be flexible, innovative, and laser-focused on our priorities. Our share price has not been immune to the recent downturn in the market resulting from inflationary fears and rising rates. And we understand that this can be a stressful time for investors. However, we would point out that our underlying real estate assets are solid. We undertake significant due diligence and look for resilient businesses and locations when choosing our acquisitions. Our tenants are in good health and have emerged from the pandemic stronger than ever. And our monthly dividend is well covered, providing a steady stream of cash and returns to our investors. Thank you all for participating today, and I will now turn the call over to the operator for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please, while we pull for questions. Thank you. Our first question is from Brian Mayer with B. Reilly Securities. Please proceed with your question.

Great. Good morning, Aaron and Ray. Thanks for all those prepared comments. A lot of information. Also, you guys are the first ones in this earnings season of the companies I cover to kind of acknowledge that there's some kind of market or transaction issues out there with cap rate fluctuations, etc. Can you talk a little bit about what you're seeing in a little bit more detail as it relates to what you're looking at, you know, how the cap rate changes are maybe, you know, relative to maybe your new expectations with higher interest rates. And when it comes to industrial purchases, are we to assume that those are going to continue to be more on the manufacturing side as opposed to logistics and distribution? Sure, Brian.

So, you know, look, always a fully transparent shop. We've been, you know, actively looking at selling assets, and we've obviously been continuously putting out LOIs. And I'd say that about, I don't know, maybe six weeks ago, around there, we started to see, you know, a slight change. And give you the context before, this was fourth quarter, certainly into January and February, I mean, we were seeing multiple bidders, multiple rounds, tighter and tighter on the purchases. And the first signs we saw were deals were getting delayed, that the brokers would say, hey, we've got a package coming next week. And then we'd say, OK, where is it? And they'd be, they're waiting. And it would be two weeks, three weeks. So we're seeing some that have never even come out. We've seen some that came out right on the cusp, and they'd be talking. You know, their price talk was we think it's going to be low mid-sixes, low six to mid-six. And we're like, we don't like that, not in this current rate environment. And so we would just sit along and wait. And then we've seen a lot of those, like last week they saw one that came back a month later, and they're talking, we're talking 675 to 7 now. These are all industrial deals, so what I'm referencing right now. And so we've seen that gap out. We've seen deals get awarded to other bidders and then they've come back. We've not gotten real clarity as to why they fell out, but you could presume the primary reason is going to be the debt markets. When they come back, they're not holding to that old price guidance. We've seen that on the purchase side. Um, and, uh, and on the sell side, you know, we've been, you know, we're always sort of actively looking to sell our office. We've had some sort of pocket listings out there that we thought, you know, test the market and, you know, the ones we sold in the, in the fourth quarter and the closing January, you know, um, bids, I wouldn't say we've had more bidders for the assets or less bidders. Uh, but I'd say that, uh, The bidders now have really been slow. We had a deal for one of our Florida office assets that we were going to sell. They came in and they bid a respectable cap rate. I want to say it was like a seven and a quarter. Then they came back and said, no, no, no, it's going to be seven, seven, seven. We're like, well, we're not selling. um yeah so i i've seen it on both sides i think uh and the broker talk when you when you have someone who's you know got the uh you know trying to get it sold for you or or the ones who are trying to sell assets you know they're primarily pointing to the two factors one is it's the debt market but two i think what we're seeing is you know in in certainly in the industrial to answer your second part of question yes mainly industrial manufacturing nearly exclusively and i'll tell you why in a second but in that that's a fairly um you know a lot of p shops traffic that right the p buyers and what we're seeing anecdotally we've been told is a lot of times they might be they're getting retraded on other sides so they're going back and retrading on on there so like they might be selling an asset and they're getting a retrade and so they're going turning around and they're retrading on their purchases And clearly, you know, at a levered IRR play, you know, debt markets really matter. And so we think that's probably, you know, the slice we're seeing. You know, I think I read the transcript from Jackson at Spirit, and I think he, you know, he was seeing things delay. And then someone I saw made a comment that it'll be really interesting to see is after some of these listing agreements that you have for people burn off, so they're 90 to 120-day listing agreements, Will things even get priced then or will they gap out then later when you don't have to pay that broker or commission necessarily? So it'll be interesting to see. On industrial manufacturing side, why we like industrial manufacturing, look, it tends to be you have to really do your credit work on those, but it tends to be very sticky, right? So the example that I've given in the past is we close on Arrow True Line in Archibald, Ohio, so it's not a major market, but it's germane to this company. you know, 100% of their revenue comes out of this building. They've been there since the 70s. They control 27% of the garage door parts market, which is, you know, these are not going to be structural from a lot of obsolescence, and so they're high demand. So we like that. They got, you know, two-ton stamping machines in there. It's really hard to relocate. On the distribution side, you know, where are our cost of capitals, and we're not competitive, right? So if I'm going to go try to bend on a tilt-up concrete distribution center with the right door heights and stuff like that, you know, that cap rate is going to be too low. The other thing is the ones that we couldn't buy, which are, you know, they suffer from the ability to get easily re-tended if they were ever to go dark. And so I'm trying to buy things that are sticky long-term. I like the manufacturing. I like the concept of onshoring. Again, you know, we've seen supply chain issues. I think, you know, a modicum of inflation is probably here to stay because supply chain is going to come increasingly back on to the shores. And so we're looking for things that are sort of long-term sticky, you know, built here in a way that are distributed here. And so there's a continuous loop of demand. That's helpful.

The second question for me is when we think about your financing of acquisitions, maybe it's a question for Ray. Should we assume it's a combination of cash, credit facility, and disposition proceeds? And what are your thoughts on replacing any of your credit facility with mortgage debt? And maybe what would those interest rates look like?

Yeah, I mean, in the near term, I think we'll be using the credit facility primarily. You know, we still benefit from relatively low rates on the short end. But as we look longer term, we may very well use mortgages. We feel good where we are right now, having locked with the swap at just under 4%. We also want to control our leverage ratio. We're trying to keep it at 40% or below, which is where we are today. We're only 34%. But if we find acquisitions that we really like, we may temporarily go up to you know, just under 45%, um, which would increase the, uh, the rates by about, uh, 10 dips on the revolver and the term loan.

And we, I think that, that, you know, if we were to find something that was really compelling, we'd pull it down on the line and then we'd probably roll it into, um, a mortgage possibly as a way to, you know, we we've gotten, we've got a couple of lenders who would certainly provide us, um, you know, sort of five year paper, no prepay. a fixed rate that we think would you know would work for accounts capital so we're thoughtful about that i think generally saying speaking though we try to match funds so any of i think as it relates to our guidance in that 50 million just to be you know perfectly clear we need no equity to do that uh it's just a really a matter of finding deals um and it would be and and the rate of that would be a comp to your point would be you know successful sales a line of credit and cash on hand but being mindful of those leverage targets as well.

Right, and that just follows into my last two quick questions. To get to the 136 FFO, that's $50 million of acquisitions from here, correct? And to get to 126, that assumes what? No acquisitions and some sales? Yes. Okay, and then lastly, you mentioned an NAV of $28,000. in your prepared comments. Is that the one from January from Cushman and Wakefield, or has there been a new NAV done since then? That's the January one, correct. Thank you, Brian.

Yep.

Thank you. Our next question comes from Garuv Mehta with EF Hutton. Please proceed with your question.

Yeah, thanks. Good morning. Following up on your comments on the transaction market, I was wondering if you could comment on how should we view about your appetite to continue to lower your office exposure to sales in a market where cap rates are expanding or are expected to expand?

Yeah, so as it relates to office sales, we're going to be opportunistic. Ultimately, we want to reduce exposure, but I don't want to give it away. Um, and right now we have, you know, on that one deal, I mentioned Florida off cap rates, gap, wider others, you know, some are, are, are not, they're, they're in the range, you know, a couple of reference points we're looking at is we're thinking about, uh, um, you know, reproduction and reproduction of the FFO, right. So on the margin, how much, uh, loss of, of what we have is we sell something. So for instance, if I sell something at a seven and a half and all I can buy is at a six and a half. and I've got a loss and I got to be thoughtful about that. The other part is, you know, relative to our NAD, which is, you know, getting further and further in the mirror. I'm cognizant of that, but looking at where our values were and adjusting them for the debt market markets. So on the office, I think, you know, we'll look to sell on an idiosyncratic basis. If that property, we think we don't want to own it, we'll get it sold, even if it's a slightly wider cap rate. That being said, and all things being equal, they all have rent bumps for the most part. They've got term on them, and so there's no quality or concern about the cash flow. And so I'm getting paid to be patient. I recognize that it may be a drag on the overall story, and people are sort of against holding the office, but we don't have any multi-tenant office And we have a very short list of them. And so I think we'll look to execute there as makes sense. And that's, again, to the question that Brian asked earlier, that's the driver that if we sell those and we don't buy anything else, that would drag us down on earnings. As it relates to purchases, you know, we're certainly seeing cap rates be able to purchase wider. We're under... contract right now, but it's not hard, so we're not just getting disclosed, but it's a wider cap rate than what we saw before. It's a small deal, so it's very small, but we're being patient, we're testing the markets. Since we know we have finite amount of capital to deploy this year, and since we're not anticipating raising any equity, we're going to pick our spots and not rush to go get it deployed right away. beauty of not having any acquisition guidance because I've certainly seen deals where I can only surmise is that they have already raised prior. They had done ATMs and they had their money and they gave out acquisition guidance because some of the bids we've seen from some of the competitive REITs just don't make sense. I mean, they're bidding like they were bidding on a fourth quarter. And there's just a couple of those, but I think it's because they have to hit a number for the quarter. And I suspect when you're buying 20 of them, it's blended, right? For us, one deal can move the needle. So we're being thoughtful about that in terms of cap rates. But generally speaking, right now, they look like they'll be wider than they were previously on the margin.

Great. Just to follow up on your guidance, on the lower end, you said you're assuming some dispositions on the $1.26 AFFA number. Is that right?

Yes.

okay great um all right that's all i had thank you thanks thank you our next question comes from john masoka with laydenberg salmon please proceed with your question good morning bye john so maybe even some of the the color you've given on the deal market today i mean with the kind of buyer seller disconnect how is that impacting Um, your pipeline timing, both on the acquisition and the disposition side. I understand you have that kind of tangible, small transaction that you're working on there, but I mean, should we expect, um, you know, deal flow this year to be more backend loaded, maybe because of the macro environment?

Uh, good question. So two comments. One is on the near term, I think it's caused a lot of volatility, the pipeline. So things are on, things are off, brokers are delaying. And so, you know, normally you have this clip where, you know, every week or so you're seeing something. That's definitely slowed down. Or they're coming back or they're talking about it, but they don't show it. So it's been a little bit sort of disruptive in the near term. But that being said, I mean, our pipelines were, you know, hundreds of millions. So if it can, you know, it can go from $200 million pipeline to $100 million pipeline, it's still fine because, you know, our acquisitions are going to be less than that. I think what our gut is in our reading, we could be way wrong, is if it's going to slow, it's going to stay slow until maybe, normally you have a little surge after Memorial Day sometimes, but then I think it's, you know, I think, you know, the markets are just, you know, kind of sideways. And so I don't think we're going to see a ton of acquisition volume, pipeline, excuse me, until maybe late summer, early fall. That's typically when you see a surge anyway. But, you know, I think right now we've certainly seen softer deals. The one thing I've been thinking about, and this is, again, sort of germane to the industrial space, is, you know, as PE shops' cost of capital go up, and I'm talking about the actual PE shops that buy the company, will their acquisition volume slow down? And so will we see different volumes in sell-lease packs? On the retail side, we obviously have retail assets. People kick the tires on that sometimes for us. We're seeing that there's still a lot of demand for sort of the plain vanilla investment grade retail names that people like. And so some of the cap rates don't necessarily to me make a ton of sense in terms of, I've seen flat leases and people are still paying what I argue to be late 2021 pricing. And it seems to me that they should be shipping out, but I think there's just so much demand to buy them. And it's just, it's an easy underwriting process for them. So I think acquisition volume, near-term is volatile, and I hope it comes back strong later in the year, but it's still plenty strong enough for us.

Okay. And then given some of the comments around share trading liquidity, how should we think about utilization of the share repurchase program?

Yeah, we've been very... We've been very metered with it. We're cognizant that motives cannot make a market in terms of size. The share we purchase is not that big. So we're not trying to do too much with it. I think in the disclosures, I think we purchased just under 2.7 with it. So it's very little, right? And we're being, you know, we're picking our spots. The way I look at the share repurchase, quite honestly, is what's the equivalent yield I'm getting on that? And how is that compared to a cap rate that could find a deal? You know, because my job is to be creative with dollars. So we still have plenty of powder. You know, we've treated it like a, since we're in such this period of time, we've done full on 10B5. one so it's been sort of programmatic um with ranges and so we still have plenty of room um and you know are just mindful of it um but we're we're not trying to create a floor okay i appreciate the color that that's it for me thank you thanks thank you there are no further questions at this time

I would like to turn the floor back over to Aaron Halfacre for any closing comments.

Thank you all very much for joining us in the call today. Clearly a volatile time in the markets. Clearly, you know, this is our second earnings call publicly, really the first one with results that are for this year. Yet this is still a quarter where we had, you know, halfway through the quarter we had a listing. So as I look forward to next quarter, we'll certainly see more results, and I think we'll get more of a trend. In terms of one of the points I said on the call, number four, about institutional investor attention bandwidth, it's a crazy market now. We understand it's hard for investors to pay attention. We're a $130 million market company. We're small. Even though we're a qualified team and we've been in the REIT space for a long time, we're just small. We understand that. It's going to take some time. You know, we're going to be attending some investor conferences here soon, including NAIRIT. That'll be our first step. We have really not taken any efforts to date to speak too much to institutional investors other than a reverse inquiry. And we'll start that in earnest as the summer rolls along. We're very patient. We understand that it's painful for a lot of our existing investors. You know, my base is Sun I think I've got, I don't know, $1.2 million of cash in the name. It's twice this trading price. So I feel it like them. But I'm patient. The company's never been in a better financial position. And we're just going to keep working at it. It's sort of break rocks, carry water, dig holes. You put your shoulder into it, and we will execute. Thank you all very much.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.