Ladies and gentlemen, my name is Joanna and I will be your conference operator today. At this time, I would like to welcome everyone to Artis REIT's 2019 annual results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question- and- answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by two.
Today's discussion may include forward-looking statements, which include statements that are not statements of historical fact and statements regarding Artis REIT's future financial performance and its execution of initiatives to deliver unitholder value. Such statements are based on management's assumptions and beliefs. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from those statements. Please see Artis REIT's public filings for a discussion of these risk factors, which are included in their annual and quarterly filings, which can be found on Artis REIT's website and on SEDAR. Thank you. I would now like to turn the meeting over to Mr. Armin Martens. Mr. Martens, please go ahead.
Thank you very much, moderator. Good day, everyone, and welcome to our Q4 year-end conference call. Happy Friday to us all. Again, my name is Armin Martens, President and CEO of Artis REIT. With me on this call is Jim Green, our CFO, Kim Riley , our EVP of Investments, Jacy Koenig, our SVP of Accounting, and Phil Martens is joining us today as well, EVP of U.S. Operations. Again, thanks for joining us, and we'll start as always, I'll ask Jim Green to review our financial highlights, and then I'll wrap up with some commentary as well, and then we'll open the lines for questions. Go ahead, Jim.
Thanks, Armin, and good afternoon, everyone. Going back to our third quarter earnings press release in November of 2018, that seems like it was a long time ago, but it's been a busy time since. We've announced a series of new initiatives at that time for the REIT, and we're now over one year into that plan, and it's been a very busy time executing on the strategy. The impact of executing that strategy continues to impact our metrics and will for a few quarters yet to come. We are nearing the end of it, but we have some more assets yet to sell. We look forward to the continuation of the strategy in future quarters as the next steps will consist mainly of asset sales with the proceeds used for debt reduction. That should demonstrate continued improvement in our balance sheet metrics.
Artis is a diversified commercial REIT, office, retail, and industrial with assets in five Canadian provinces and six U.S. states. Based on the Q4 NOI, it was 52.3% weighted in Canada and 47.7% in the United States. As the majority of future asset sales will likely be in Canada, we expect this ratio to continue to move such that greater than 50% of our assets will be in the United States. On an asset- class basis, we're 48.6% weighted in office, 17.9% weighted in retail, and 33.5% weighted in industrial.
Artis continues to be active in both new developments and redevelopment of our existing properties. We have, at the year-end, roughly CAD 103 million invested in projects currently under development. During the quarter, we invested a further CAD 15 million roughly into the development projects and transferred one property completed at the value of about CAD 42 million from under development to completed properties.
As detailed in the MD&A, we have several new development projects that remain underway, including a new mixed-use residential tower at 300 Main Street in Winnipeg, a new industrial space in Houston, and a small retail development as additional density on one of our retail sites in Winnipeg. Also, as detailed in the MD&A, we have several development projects in the pipeline in the planning stages where construction has not yet actively started, and these projects are progressing well through the development stages.
We've been actively marketing our Calgary office properties with the goal of selling into the market at the best prices we can achieve in the current Calgary market. Pro forma, the Q1 2020 dispositions that have now closed, the sector's down to a very small ballpark 2.1% of our total portfolio NOI. Disposing of assets in the Calgary market today has caused some further write-downs in value. However, we feel it's still the right decision as we think the Calgary market will require several more years to recover and stabilize before it sees growth again.
We've been able to maintain our balance sheet with debt improving slightly from 52.6% last quarter to 52.3% this quarter, so small change, but moving in the right direction. Despite incurring a fair value loss this quarter, caused largely by the sale of those Calgary office properties and also a foreign exchange loss, both of which affected our GBV. Debt- to- GBV is up a bit from 50.6% at December of last year. The main driver of the increase of debt- to- GBV has been the timing of purchases for the planned unit buybacks as opposed to the asset sales, which will continue to happen in future quarters. We continue to target a range of 45%-48% for debt- to- GBV over time.
Our EBITDA interest coverage also remains healthy despite carrying a bit higher debt at the current time. With debt- to- GBV improving slightly this quarter, we also achieved an improvement in the debt to EBITDA ratio as well. We're pleased to see that trending in the right direction. Despite the dilutive effect of asset sales, the unit buyback program, combined with good same-property growth and completion of some of our development property, is having a positive effect, and FFO came in at CAD 0.37 this quarter, up from CAD 0.34 last quarter and up from CAD 0.33 in the comparative quarter last year. AFFO for the quarter was CAD 0.25, up CAD 0.01 from the same quarter last year. Our payout ratios for the year are very conservative, 38.3% of FFO and 51.4% of AFFO.
Just coming back to those initiatives for a moment, on November 1st, the series of initiatives announced included increasing unit values by increasing NAV and continuing to focus on the quality of the portfolio. The distribution was reset at that time to CAD 0.54 annually, resulting in a very conservative payout ratio and freeing up cash to fund our development pipeline. The plan also included non-core asset sales of between CAD 800 million to CAD 1 billion. This process is well underway.
We've completed and closed on CAD 603 million of sales to December 31st and have closed a further CAD 118 million subsequent to the quarter end. We have a further CAD 22 million under unconditional contract set to close in February. A basket of properties as listed as held for sale at December 31st was CAD 222 million, including the properties just mentioned as closed and some furthers that are in various stages of sale with some under conditional contract. We anticipate most of these will sell over the next two to maybe three quarters.
Initiatives also included using a portion of the sales proceeds to buy back our units under our NCIB. We accelerated this progress portion of the plan by starting immediately after the announcement in November in advance of asset sales. From last November to December 31st, we've repurchased almost 60 million units at a cost of just over CAD 173 million. We used our line of credit to fund these purchases and plan on repaying the line as assets are sold. In addition to the NCIB purchases, we redeemed a maturing series of our preferred equity at a cost of CAD 78.4 million.
If you include the redemption of preferred equity with the common equity, we basically met our target for equity redemption. Proceeds of asset sales will be focused on debt reduction in the near term. However, w e have renewed our NCIB, and we are in a position to purchase further equity if circumstances are favorable for that. In our opinion, the plan is on track and ahead of schedule.
Touching just for a minute on a couple of operational numbers, and then I'll pass it back to Armin. Fair value of the investment properties on the balance sheet at fair value this quarter was a net adjustment of approximately CAD 20 million. We did record some further gains on our industrial properties. It was offset by some reductions needed to get to the net realizable value in today's market of the Calgary office properties.
We remain very comfortable with our debt-to-GBV ratio. It's starting to show improvements as we continue to sell properties, and we expect this to continue into future quarters. Still dealing with the temporary effect of using the line of credit to fund our NCIB until such time as purchases are received from asset sales. We also used the line of credit to redeem the Series G preferred units, also planning to repay that from asset sales.
We've been gradually paying off mortgages and reducing our secured debt- to- GBV. As of December 31st, our unencumbered property portfolio was valued at CAD 1.96 billion. On the financing side, we have a CAD 700 million unsecured revolving credit facility with a syndicate of lenders and two non-revolving credit facilities in the aggregate amount of CAD 300 million. Both of the non-revolving facilities are drawn in full, and we place swaps to fix the interest rates on those facilities as we expect they'll be outstanding for the full term.
Touching briefly on same property, we had a great year and quarter for same property results. For the quarter, the results were a + 3.2% this quarter in functional currency. When we factor in support and exchange gains, it was a + 3.3% in Canadian dollars. We also presented a stabilized same property calculation, which eliminates both the properties planned for disposition as well as the Calgary office sector. On this basis, we had growth of 4.4% in functional currency, and it was the same number, 4.4%, once FX was factored in.
Our industrial segment continues to show the strongest performance in both countries, with 9.4% growth this quarter in Canada and 6.3% growth in the U.S. This now represents six consecutive quarters of positive same property growth for us, and we're very pleased to see that progress. Touching on the net asset value.
As we report our investment properties at fair value, we can calculate a net asset value per trust unit. It's simply using the equity on our balance sheet less the equity held by the preferred unit holders and divided by the number of common units outstanding at the end of the quarter. If you do that math, the net asset value per trust unit is CAD 15.56, only CAD 0.01 from CAD 15.55 at the start of the year. Seems interesting to see only CAD 0.01 change, but there were a lot of moving parts.
Foreign exchange for the year contributed a negative impact on net asset value of CAD 0.44, and the fair value loss was a further CAD 0.45. Offsetting that was a gain of roughly CAD 0.40 due to our NCIB purchases and the remaining gain from the fact that our income, excluding fair value and foreign exchange, was in excess of our distributions and also contributed to net growth in NAV.
Artis ended the quarter with roughly CAD 51 million cash on hand and CAD 112 million undrawn on our line of credit. We've got several subsequent events detailed in our notes to the statements, which we believe continue to reflect our strategy of intelligent recycling of capital. We plan to continue our focus on a strong balance sheet and the overall quality of our portfolio. That completes my financial review. We feel the initiatives announced in November of 2018 will make Artis a better and stronger REIT. We look forward to demonstrating that in future quarters. I'll pass it back to Armin for a little more.
Okay. Thanks, Jim. Also, just a little comment here from me. Again, folks, on balance, we feel we've done very well this year over last year, delivering a total return to our investors of about 35%. We've made good progress on all fronts and delivered strong performance metrics for our unitholders. We've printed, as Jim mentioned, six consecutive quarters of same property NOI growth. Our weighted average rental increases are healthy. Our FFO and AFFO per unit are all solid numbers and growing well.
Our debt metrics improved just a little bit quarter-over-quarter. Looking ahead, given our very conservative payout ratio and the progress we've made on our strategic initiatives, debt reduction will be a top priority for us. We do feel that by the end of this year, we can bring it down to 45%-47% of our book value. That should be well received by the investment community.
Again, you'll recall some key strategic initiatives we announced over a year ago, and of course, we've made very good progress on all fronts. The distribution continues to be ultra low and conservative and bulletproof, especially in these times when investors may be nervous for a lot of reasons. They're all there for a lot of reasons to take a hard look at Artis given our bulletproof payout ratio. Our unit buyback program went very well. Our property disposition program, of course, went very well and continues. It is business as usual. We announced CAD 800 million to CAD 1 billion of dispositions. We're not there yet. We've completed CAD 750 million on time and on price to correspond with our IFRS NAV of CAD 15.56. A very good number, which compared, of course, very well to our unit price.
We're talking about assets that are tough to sell. The low-hanging fruit is still ahead of us. I think we continue to demonstrate very good value as we progress with our disposition program. It's important to note, of course, that as our financial metrics improve, so does our portfolio of properties. It is about real estate.
We're reducing our office and retail weighting, increasing our ownership of industrial properties. Also reducing the number of secondary markets wherein we're undiversifying, if you will. Our Calgary office exposure is consistently shrinking. We'll be 2% at the end of Q1, and by the end of this year, it'll be down to 0%. Our remaining retail investments will be open-air service sector properties in Western Canada only, which we feel is a very good focus for us. Meanwhile, our overall portfolio is performing well, and our industrial development pipeline is on track to deliver excellent results also. We invite you to look at our MD&A investor presentations for more color here.
Looking ahead, folks, we will continue to work hard to keep our buildings full whilst bringing the rents up to markets and consistently streamlining and improving our portfolio of real estate. To be clear, the integrity of our balance sheet, our earnings growth, and implementing our strategic initiatives continues to be of utmost importance to us. That's our report for this quarter and year. We're pleased with the results and the progress we're making on all fronts, and I'll ask the moderator to take over some of your questions.
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. If you're using a speakerphone, please lift the handset before pressing any keys. Your first question is from Jonathan Kelcher from TD Securities. Please go ahead.
Thanks. Good afternoon.
Yes. Good afternoon.
First question, just on the, I guess there's CAD 100 million or so left held for sale on the balance sheet. Once you guys sell that, will that effectively end the asset disposition program?
It'll end what was announced under the strategic initiatives. Over the years, we have consistently sold anywhere from CAD 200 million to as much as CAD 400 million of assets per year and recycled the capital. That plan would probably continue.
Yeah. There is always more recycling to be done, Jonathan. At that point in time, the Board will take a good look and see what the next step is. It could be we will double down on our strategic initiatives, or it could be we will just continue as we have in the past, recycling between, say, CAD 200 million-CAD 300 million of our properties and improving our portfolio that way.
Okay. I'm assuming that would entail either buying or, if you're going to sell CAD 200 million-CAD 300 million, you'd be looking to put that into either development or new acquisitions.
Primarily debt reduction. We've got to get our debt down. We've been promised a much higher price multiple when we do that. We get that debt down to 45%, and then selectively growing. We'll be growing in the industrial sector primarily.
Okay. How high of percentage would you like to, like industrials are up 30% right now, how high would you want to get that?
At least up to 40%. After 40%, we'll take a second look and maybe bring it up to 50%.
Okay. Sounds like what you guys did when you went into the U.S.
Kind of like that.
Yes. The opportunities are here. We're actually acquiring additional development sites, industrial development sites right now in Phoenix and in Houston and making bids in many offices. We expect to grow our industrial development pipeline. We're still achieving 7% unlevered yields. We're building the buildings. We're planning them well. We're building them. They're leasing up and delivering great value for our unitholders.
Okay. Just one little modeling question. The G&A came in pretty good in Q4. What would be a good run rate for G&A for 2020?
Oh, that's always a bit of a tough one to project. I guess if you take out the swings that can be created by the unit-based compensation fair value number.
Yeah
Take out the Special Committee, whatever they choose to spend, I would say we'd be running in the CAD 2.5 million-CAD 3 million a quarter range.
Okay. That's it for me. I'll turn it back. Thanks.
Thank you. The next question comes from Matt Logan from RBC Capital Markets. Please go ahead.
Thank you, and good afternoon.
Hello, Matt.
Armin, on your comments, you mentioned that you're targeting a 45%-48% debt- to- GBV. Did you say that was by the end of 2020?
Yes, I did.
Could you help us reconcile that figure with your comments for CAD 100 million of dispositions? Because by my back of the napkin math, you probably need to do CAD 300 million-CAD 400 million to hit that target.
Yeah, I think you heard me also mention that traditionally we do CAD 200 million - CAD 300 million a year as well anyways. That's what I'm thinking. We still have about CAD 100 million in our plan, and then you should expect us to do what we've done in the past, another CAD 200 million- CAD 300 million.
I get it.
To get to the 45% is about a further almost CAD 600 million of asset sales.
CAD 600 million of asset sales would be just kind of what you've got in held for sale today plus what you see as normal course dispositions, but without the acquisitions?
Yeah, that would be over the next two years, let's say. I think we can hit that.
Okay.
Your math numbers are right.
Maybe just changing gears here a little bit. Your Calgary office exposure's down to just 2%. With that portion of your portfolio effectively in the rearview mirror, do you think negative fair value marks are also a thing of the past?
Getting there. Yeah. We feel that we're stabilizing in terms of our NOI very nicely and in terms of our NAV.
On the NOI, it seems like the organic growth is trending ahead of your 2%-3% guidance. Do you see any chance that that might actually come in better than that number in 2020?
Yeah, we're optimistic. We like to give guidance in the past, but we're optimistic that we can beat.
Would that be driven by the office portfolio, given there's maybe a little more occupancy upside in that segment of the business?
Industrial will still continue to lead. Our retail will do better this year than last year.
Maybe last one from me in terms of just a modeling question. Can you just give us any color on the interest income this quarter?
Sure. We carried a vendor take-back mortgage on the sale of 415 Yonge, as well as a smaller vendor take-back on the sale of 800 Fifth. That's contributing to the extra interest income.
Should we expect that to be recurring next quarter?
Yeah, it's a three-year term on that VTB.
Okay. Appreciate the color. That's all from me. Thank you very much.
Thank you.
Thank you. The next question is from Jenny Ma from BMO. Please go ahead.
Thanks. Good afternoon.
Good afternoon.
I know the Calgary office segment is largely behind you, but I just wanted to get some color on how we should look at valuation. In terms of the Calgary assets you sold, it looks like the cap rate came in at about 9%-10%, but could you talk to us about the occupancy and the term that's remaining in there and maybe how pricing was determined? Was it still based on in-place cash flow, or was it more on a price per square foot basis?
You talking about the TransAlta building?
I'm talking about the ones that you guys did subsequent to year-end, actually. It's January, the recent ones.
Yeah. Okay. Yeah, they're behind us. The TransAlta building was the one that impacted us the most. It was 100% occupied. Three years left to go on the lease, just a shade under three years. They had already given us written notice that they're leaving. I think they're moving very shortly into another building. We just did the math. The sensitivity analysis. We looked at the present value of their lease. We looked at the value of that empty building, how long would it take for us to lease it up, the cost involved, and the IRR. We just came to the conclusion that the price we sold it at was the right price. Now, meanwhile, on a short-term basis, it's a high cap rate. We just certainly don't like it too bad. That tenant was leaving anyways, and we were going to experience some pain. We thought the best time to crystallize a value would be right now, and so that's what we did.
Oh, okay. Can you just give us some general color on how investors are approaching valuation in Calgary office? Like I said earlier, is it really looking at the in-place cash flow, or is it on a price per square foot basis?
In this case, it was a combination of some carry-in income. The carry-in income there, they get paid while they wait, while they plan to redevelop and lease. I'm hoping the buyer has a lot of success. They have a strategy to lease it to tech companies and others. Generally, it's a price per square foot, for sure, I think nine out of 10 times. They're looking then at their leasing cost, how long it takes to lease, not just the cost to buy a tenant, and their IRRs. The cost per square foot, I'd say they've come down in Calgary there. Year- after- year, quarter- after- quarter, they haven't gone up. I don't think we've seen the bottom yet in terms of valuations. In that sense, we're satisfied we've done the right thing in basically getting out of the Calgary office market.
Okay. That's good color. Turning to industrial. I know you've mentioned in past conference calls that you've gotten a lot of unsolicited inbound interest on industrial. Markets this week not aside, just given the strength and the demand for industrial assets versus your desire to grow that asset class, I'm just wondering, for a good portion of your industrial assets, is there a price that you would be willing to sell it at? Or are you more committed to expanding the strategy that you'd want to hang on to all of it?
Well, it becomes a question of how much we want to send growth right now. If we bring it down to 4% or 5% and look at our portfolio of CAD 1.8 billion, it goes up to about CAD 2.3 billion in the end of a five-year period, creating NAV, increasing NAV of CAD 3.00 per unit. That's just our industrial portfolio. If we just manage it optimally and grow it in a conservative manner in the next three years, and never mind building more industrial, in the next five years, rather.
What's that growth worth? If we give all that away now, what's the worth today? What's the present value of that? I don't know. If somebody gave us a 4% cap on all of our industrial, I guess we'd look at, but if they're saying it's 5% on all of our industrial, we're going to say, "Well, we can do a lot better by holding and managing it ourselves, but we'll give you a better deal on our retail if you want our retail.
Has the volume of inbound calls been about the same or more, or less for industrial?
Yeah. It's always there. We can sell our industrial before dinnertime tonight, any night, any day of the week, right? It's always there. If we were really interested in selling just industrial, that would be basically a global marketing process there. As I said, we have conservatively about CAD 1.8 billion of industrial right now, and that's a good chunky portfolio. It's a great and well-diversified portfolio in terms of tenant mix and building types. It's an ideal portfolio for anybody. We're not even entertaining it right now.
Okay. Lastly, do you have any update on any conversations you've had with the Strategic Review Committee? Anything you can share with us?
That's a fair question, and we have a scripted answer for you. Again, none of us on the management team are on the members of the Special Committee, nor are we spokespeople for the Special Committee. You can see by our financial statements that they're busy and they're working. You know they've hired advisors, and you can be rest assured they're being as productive and efficient as possible, and that as soon as they have something material to announce, they will be doing that. Otherwise, I can't say any more.
I think previously you had mentioned a timeline sort of mid-year. Is that still the case?
Well, if I did, I can't officially predict anything, but they started last year, and I think the best benchmark you have is to look at industry practice, what other special committees have done for under a week, and how long it takes. You can use that as a guideline. They got started last year in August, and I think there's every good reason for investors to be patient and optimistic.
Okay, great. Thanks. I'll turn it back.
Thank you. The next question is from Michael Markidis from Desjardins. Please go ahead.
Hi. Thanks, everybody. Just on Tower Business Center, I guess the industrial property that came on stream in the fourth quarter. Jim, do you have a sense of when-- Was it a full quarter contribution for the space that came online, or was it back-end loaded?
Tower, it's a two-building portfolio. One's 100% leased, the other one is not leased yet. The first building did come on stream. Phil, can you. I think it was for the whole entire quarter. Is that right? Yeah.
For the fourth quarter, yes.
Was it the beginning of the quarter?
Yeah, October.
Okay.
Sorry. There's 2 buildings that are leased. One came on stream and the second-
Two-building portfolio. One's leased, and the other building that leased came on stream.
Yeah. Tempur Sealy took the whole of the first building of 289,000 sq ft October 1. The second building is completed, but it is vacant, and we are getting very good traction for our lease activity. We hope to have that leased up this year.
Okay. Beyond that, in terms of your plan to keep growing the industrial portfolio, I guess first question would be, just looking at your developments that you have underway right now. You've still got a little bit of space left at Park 8Ninety V that you could do, but there isn't anything else active. Should we be expecting some more activity to percolate as the year goes on?
Yeah. We've just got to face the rest of Tower leasing up. You're right. We just bought another 40 acres adjacent to Park Lucero here in Phoenix. It was 40 acres, right, Phil?
37 acres precisely.
Okay. Yeah. We've got plans to do about 400,000 sq ft of industrial there, 500, sorry?
[Questions]
Yeah, I think. Sorry Phil, 500. Four buildings, 500,000 sq ft. It blends in very well. It's good efficiency for our partners there. You saw the site plan. We like it a lot. We've got that coming up, and we'll get that ramped up this year, at least to commence, whenever we'll get mobilized. Then we're bidding on properties in other markets that we're in, such as many others as well. We're a little bit behind, and we're careful with new investments and new developments. We can't overdevelop, we can't underdevelop, because we're also working on paying down our debt.
Okay. Is your future growth in industrial all planned for U.S. and all planned through development, or are you contemplating acquisitions as well?
Yeah. Back to that point, as we get our debt down, we'll be able to ramp up our development pipeline. Right now, we're focusing on the U.S., Canada selectively. The barriers to entry are high, and the IRRs are pretty low in Canada. We're doing very well with our U.S. development pipeline. As we pay down that debt, we expect to ramp that up even more and grow it more.
Okay. Just thinking about, obviously, you can't give an update in terms of what the Strategic Committee is doing. As a management group, have you given any thought to in the event that... Well, I guess as part of the strategic review, you must be proposing one alternative at least, which is course of action if this company's not sold. Would that be correct?
That's always a consideration. That's definitely a strategic consideration on the table.
Okay. On that, are you able to discuss what your ideas are in the event that it doesn't result in a sale? How you would change? You put out a plan that you've executed quite well on. The market arguably hasn't necessarily given you any credit for it or not the credit that you'd want to see. With that in mind, how does that change or how does that impact your thoughts for the, I won't call it the status quo, for the going concern plan, if in the event that there's no sale transaction?
Anything material would have to be approved by the Board before we could even discuss it. The path that we're on now is to shrink office selectively, shrink retail selectively, and to grow industrial, of course. As we dispose of office to pay down debt, fix the balance sheet, and then once that's fixed and stabilized, we can ramp up growing our industrial. I think that gives a good perspective. I couldn't say much more than that.
Okay. Just last one from me before I turn it back. Just in terms of the sales, obviously you've got assets for sale. We know the CAD 100 million or so, or sorry, I can't remember the exact number, but you've completed some and there's another CAD 100 million or so left to go. Another sort of CAD 600 million-ish, I think, was the number to get down to your planned debt target. I know you're talking about Canada. Can you give us a flavor in terms of what assets would be included in that other CAD 600 million? Is it specific markets or regions? Sounds like industrial isn't one that you want to look at, but is it specific cities? Is it retail versus office? Just give me a sense of what you got planned.
There's not much more color. It'll be more office. I mean, here, we mentioned we wanted to start Chicago office down to zero. It'll be more office, and I don't want to tell you which city, but primarily in Canada. More office and then more retail, on both cases on a select basis. When we get to that point, we'll probably identify the properties quite clearly. We'll get to that at Q1.
Okay. Thank you very much. I'll turn it back.
Thank you. At this time, we have no further questions. Please proceed.
All right. Well, thank you again, everyone. A happy Friday to us all. Hope you all have a good weekend. Crime shame about what the markets are doing to us, but such is life. I'm sure we will all come out of this just well. Thanks again for your interest, and keep saying good things about us. Keep showing an interest in Artis REIT. Everyone, please have a good weekend. Talk to you soon.
Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we do ask that you please disconnect your lines.