Okay, welcome to Citi's 2024 Global Property CEO Conference. I'm Smedes Rose of Citi Research. We're pleased to have with us EPR Properties and CEO Greg Silvers. This session is for Citi clients only. If media or other individuals are on the line, please disconnect now. Disclosures are available on the webcast and at the AV desk. For those in the room or on the webcast, you can go to liveqa.com and enter code GPC24 to submit any questions. If you don't wanna raise your hand, or if you're in the room, you can just use one of the mics we have here. Greg, I'm gonna turn it over to you to introduce who's with you from the company today.
Maybe provide a few opening overview remarks of EPR, and then, you know, maybe just give us a few reasons of why you think investors should be buying the stock today. And then we'll go into Q&A, and thank you for being here.
Well, thank you, Smedes, and thanks for having us and those joining us. To my left is Greg Zimmerman, our Chief Investment Officer. To my right is Mark Peterson, our Chief Financial Officer, and sitting to his right is Brian Moriarty, our Chief Communications Officer. Again, when we talk about what EPR is, EPR really is the only truly diversified experiential REIT. We focus on experiential properties, that meaning primarily, you don't go there to buy a product, you're buying an experience, whether that's the movies, skiing, attractions, museums, all of those things. What's really I think important to understand for us and what's compelling is value, value, value.
You know, if you know, we're trading at, you know, post-COVID at a highly discounted multiple to our historical multiple, yet we are. Our businesses now are, our rent coverage is above what it was pre-COVID. Both in terms of our non-theater and our theater business is back to its kind of pre-COVID level. So I think we have a compelling valuation. You look at this year, we've guided to somewhere 3, low 3, maybe up to 4% growth with an 8% dividend. So we're starting off the year kind of with no multiple change into a double-digit TSR. And we think that's really compelling given the strength of our portfolio. But I'll turn it back to you, Smedes, for questions.
Okay. So just to kind of summarize the points that you wanted to emphasize on buying the stock is, A, you're the only kind of pure play, in your view, of, in a, as an experiential REIT, and then second would be just an attractive valuation with a low multiple and an attractive yield?
Yes.
Okay. Okay.
Three would be the growth that he mentioned, too, kinda outsized growth relative to, I think, the average in our group.
Okay. So as I think most people know, I'm a little newer to the net lease space and to your company, so I'm gonna kinda dive in here. And, you know, having gone through fourth quarter earnings season, for the most part, these are fairly, you know, somewhat straightforward stories, and people focus on a few kind of key metrics, and I think they compare and contrast across. Yours, not so much. It's a much. You know, there are a lot of moving parts, and I guess my kind of first question is, you know, how do you guys think about. When does EPR just become, like, a cleaner story, and it's gonna be a lot more simpler to kind of understand, and there's a lot of accounting movements?
Is that something that wraps up of, as we move through 2024, or do you think it's the next couple of years? Or just kind of your thoughts around that. Just kind of big picture-
Sure.
And then we can get into the weeds a little more, but-
And I'll let Mark add to this. I think it's really an interesting concept that it's a confusing story, which really involves around us collecting $150 million of deferred rents. Again, that's real cash. You know, when we started off, people thought, "Oh, you go through COVID, you're not gonna collect all of those deferred rents." We did. We collected $150 million. That meant our tenants were paying not only their current rent, but all of this back rent. And candidly, analysts and people were like: "Oh, well, this is kind of confusing. You got all this kind of non..." It was real money for us, and it spoke to the strength of our portfolio that we got all of this paid back. I think that we're fairly through that. I'll let Mark speak to-
Yeah, as Greg said, you know, part of that $150 million was deferral collections off balance sheet that went to income. So in 2023, we had $36 million, $0.48 per share of deferral collections that really relate to prior period. Like Greg said, we're not ashamed of that. That's a good thing that we collected all that money. But the good news is, going forward, you know, we only... We're done. We've collected all on-balance sheet accrued rent, and we only have two tenants where we're owed any rent, one of which is based on an EBITDA threshold that's pretty high, and we're not projecting that. The other has $600,000 remaining, which we project to be collected through July of this year. So this year only has a $0.01 per share of that we project, of audit period deferral collections.
So the story becomes much cleaner really this year, 2024, 'cause we don't have those deferrals. But again, those deferrals were the result of collecting back rent, and as Greg said, the tenants had the strength to be able to pay their current rent plus that back rent, so we think that's a, that's a, that's a good thing.
Okay, but then you've also got... So you have the rent deferrals that are wrapping up, but I think there, aren't there a number of tenants that are gonna be kind of on percentage rents going forward?
Again, I think it's a little bit of misconceptions. We did a deal with Regal, where we actually increased the base rent on the properties, and then we got an additional percentage rent. So I think it's not percentage rent only, and in fact, the story is on the theaters that are a part of that lease, we increased the rent by approximately $4 million, and then we added an element of percentage rent. So not only did we get rent, it's actually additional. So I think those sorts of confusing things, we're actually quite proud of.
Just to add on the percentage rent, we didn't wanna set the rent based on the lowest box office, you know, in over the past decade, so we wanted to take some upside. So I think the percentage rent will pay off in the end.
To that point, our percentage rent collections in 2023 included 0 from theaters. So again, that percentage rent that will show the increase in the percentage rent for 2024 is a direct result of what I just told you. Not only were we collecting base rent, but our projections would include an additional $3.8 million of percentage rent, which were Greg's efforts in negotiating that deal.
It's just one tenant.
Okay. And theater coverage, I think you said, is back at 1.7 times, so that's in line with kind of pre-COVID levels, despite box office revenues, I think, are well below 2019 levels. I mean, but I guess, you know, after you've... You've still got some Regal theaters that you're working through selling.
After you've sold those, are you happy with your remaining theater ex, portfolio, or do you see whittling that down over time?
No, we've said we want to lower our theater exposure. Again, that's definitely part of our long-term strategy is become more balanced in our diversified, in our diversification. The thought process is to continue. We've said we're not growing, in fact, we're gonna reduce that exposure. But again, what Greg and his team have done through that is kind of produce the, you know, the highest producing theater portfolio in the industry. You know, if you look at our numbers, we control 3% of the theaters, but we're probably 8.5%-9% of the box office. So, again, it's a reflection of the quality of the portfolio and how we were able to put that together.
So, there will be, you know, as time moves on, you know, interested parties in owning something of that high quality. So as the debt markets kind of start to heal, we'll look at reducing some of that exposure.
Okay. And on Regal, I think you've said, like, total proceeds of around $40 million for the sale.
Yeah, that's for-
How much do you have?
the vacant theaters that we're selling. Yeah.
How, how many are left there?
Eight.
8 to go?
Of the 8 Regals, we've sold 3, and of the 8, we have 2 under binding letters, well, non-binding letters of intent, but signed, and 1 under a purchase sale agreement.
Okay. And then, can you just talk for just a moment about exposure to AMC, and are you happy with where that is now in terms of coverage and-
Again, if you go back to 2020, you know, at the beginning of COVID, we actually restructured our AMC lease into one master lease, extended the term, and again, feel very good about our AMC lease, and the way Greg and his team kind of restructured that. So we feel again, we're well-positioned with AMC. If you look at Regal and how we did with that, I think Greg would say our AMC master lease is even stronger than our Regal, and our Regal master leases were challenged in bankruptcy. So we feel very good about how we're positioned with them, about their overall performance, even in the period that we're in right now.
It doesn't mean that over time we wouldn't want to reduce that exposure, but we feel very good in how we're positioned.
So if AMC were to go through a bigger kind of event, I don't know a lot about AMC, but when we talk to other clients, there's sort of this assumption that there's more to go there. I don't know if you agree with that, but do you feel like this lease would hold up and not be rejected if there was, like, a reorganization?
Again, we're very comfortable with that, that the landlord, that this lease would hold up. Again, you probably wouldn't hear this from most landlords, but beginning in 2020, we've been encouraging AMC to file. Again, because clean up your balance sheet, the business is recovering, the business looks nice, you have a bad balance sheet. So we have already done the restructuring with them. Like I said, we did it back in 2020. We're very comfortable with how we're gonna end up as a result of that. If you look at it now, our three largest theater tenants, AMC, Cinemark, and Regal. Cinemark and Regal have some of the best balance sheets in the experiential area. I mean, yeah, yeah, you know, fantastic. They've, they've fixed financial their problem. AMC is the only one out there.
We'd just relatively like them to go ahead and get it done-
Yeah
... because that's how comfortable we are with our lease structure and how important our assets are to them.
So where do you see theater just as a % of overall earnings, if, you know, sort of when all is said and done?
I think in a realistic, to get to the level of diversification that we would like, probably 15% or below. If you look at the experiential world, what theaters represent in that kind of paradigm, I think that's the place we would like to get to initially. And there are so many opportunities in some of the other experiential areas that we feel like increasing that level of diversity only creates value for us.
Just a reminder, so for 2024, what is the theater percentage to overall earnings?
About 37, and it probably. It's been going down each year because we've been growing other areas and then selling some theaters, so it probably ends up at 36, 35. It's just given our guidance, doesn't have-
This year?
Yeah.
Okay. What was it kind of pre-COVID?
Forty.
Forty.
Okay, so you're significantly sort of ramping down over time.
Yeah.
Yeah.
Yeah, we're on our path.
Yeah, okay. As you, you've talked about, you know, diversifying, so what do you want to be more involved with? What's attractive to you?
Again, and I'll let Greg add to this, but if you look at, like, 2022 and 2023, we grew pretty much all of our non-theater elements, our verticals, other than gaming, just because our limited capital, you know, transactions are generally larger, so we've not grown that area. But whether it's attractions, eat and play, fitness and wellness, even cultural, we've grown all of those areas, and we think we're underrepresented across the board in those. But Greg, maybe you have-
Yeah, and Smedes, we really like the fitness and wellness space. We've done three climbing gyms in the past couple of years. We've also just announced on the last call a deal with Mirbeau, which is an inn and spa concept in upstate New York. So again, wellness, and we opened our Murrieta Hot Springs, natural hot springs resort, in Murrieta, California, in February. So that goes along with our Pagosa Springs natural hot springs resort, in Pagosa Springs, Colorado. So feel really good about that. And then, as Greg said, you know, sort of our bread and butter is eat and play, and attractions, and we see a lot of opportunities in that space going forward as well.
Okay, so within wellness, I mean, there's kind of one end, which is maybe I guess maybe a little more kind of the luxury side of spas and-
... you know, steam baths and massages and all that fun stuff. And then you have the actual kind of working out part, and you talked about climbing gyms. And I guess my question is: How do you sort of gauge, you know, what's going to be popular for a long period of time in terms of people exercising? Because there's always sort of a new, you know, do this, do that, et cetera. And just, you know, and I'm not making a call on climbing gyms. I have no idea. Maybe they'll sweep the country- ... but, you know, what, how do you kind of assess that and think about kind of the risk/reward in that?
Right. Generally speaking, it's Greg and his team do a great job of underwriting the idea of the longevity of the concept. So, again, if you look at climbing gyms, there's a high affinity within that community, and there's a lot of stickiness to that customer. So if you look at our VITAL Climbing Gym in Brooklyn, it has different than your normal kind of retail, yeah, yeah, you know, sign up in January and hope you never show up, it has 5,700 members, and it is, yeah, you know, all ages. And we think there's... We do a lot of research on that and the real affinity.
What we're really excited about, Smedes, if you take in the fitness and wellness space, is the two largest demographic groups in the country, that being the baby boomers and the millennials, when you do your research on them, they value fitness and wellness very high on their list. So it is about. It's what we are not is that pure, kind of down the middle. I don't want to name any names, but you know, the fitness center you see on every strip center. That's not what we do. What we want is something that's a little more sticky with the customer, that has longevity, that is proven, and again, what we've seen in these concepts are incredible resilience over years. But Greg, maybe-
Yeah, so, I would add Mirbeau, for example, in Skaneateles, New York, has been operating for 25 years. So, you know, obviously, when we did the underwriting, we had a substantial history of how they perform. And then this is probably kind of trite, but the natural hot springs, nobody's making any more of them. So-
... in Pagosa Springs, people have been coming there for many, many, many years. Same thing, Murrieta at points has not been a natural hot springs resort, but it actually, the property that we redeveloped started as a natural hot springs resort about 100 years ago, so.
To that point, again, and I don't wanna... I'll brag on our tenant. It just opened in February, and Condé Nast named it one of the five best hot springs resorts in the world.
For 2024. Yep.
Yeah. So again, the execution matters, and we think that as Greg said, we generally, most of these, we have a long history to be able to underwrite these, and we're very comfortable with their performance.
Okay. We have a couple of questions coming in from the audience, but on that, when you mentioned that Mirbeau's been open for 25 years, so why do they need you now? Like, what's the end game for them from their perspective?
First of all, I think we have a unique opportunity in the industry because we're able to find these deals. We have a lot of contacts throughout all the verticals that we're involved in. If you look at Mirbeau, they want to expand, and one of the things that we provide for our tenants is the ability to do growth capital. So if you look at Topgolf, we've done that. We've done it with Andretti Karting. In fact, on our call last week, we just announced our sixth Andretti Karting deal in Kansas City. So I think a lot of people in the industries that we're involved in understand that we're able to provide growth capital.
I think it's important, again, Smedes. A lot of people in the net lease space locate their deals by brokers showing up with really nice binders that you know are presented to them. That is the least percentage of our deals. Our deals are, you know, inbound calls, us working with people over the years. And so we've been very good about building what we call a flow business, meaning they're those deals that are somewhere between $50 million and $100 million, that we think you put those deals together, they're not shopped. They're not someone who's hired a broker. There's a relationship that somebody knew somebody in our industry and told them to call us-
- if they're looking to grow. And that's very important to us for our ability to identify and capture deals that are not kinda widely marketed.
One thing to add to that, Smedes, is, Mark and Greg both mentioned that we were able to recover $150 million of deferred rent coming out of COVID. We didn't have to sue anybody, and we didn't sue anybody. So our tenants understand that we're in this together, and I think that pays dividends as well for future deal flow.
We had a question that kinda goes back to the theaters, and the question is: What kind of cap rate might EPR's average theater command today?
Again, I guess the most logical data point was we had one of these major tenants in COVID, so maybe better than this that we looked at disposing of prior to them filing bankruptcy. So it's easy to pick who that might have been. And that was right under nine. So again, now that was right in the middle of COVID. Yeah, you know, the industry was somewhat down a little bit. Now that their balance sheet is cleaned up, it's a much stronger tenant, so but that was a high eight number that we had on a $several hundred million deal. So I think that's indicative of where we think the assets could-
Not a lot of, or frankly, probably any high-quality, cash-flowing theaters trading in today's market.
Okay. I wanted to ask you just a little bit about what you've talked about doing $200 million-$300 million of investing over the course of this year. So what are you—I mean, is most of that gonna come from existing relationships? Are you sourcing new relationships? And I guess as part of that, I'm interested to hear your thoughts on, you know, do you come up against, like a VICI? It's kind of broadly in the same business, and I... GLPI, I assume, is not on your radar.
Again, really, a lot of it is, you know, existing relationships, but we really don't see those guys. I mean, we generally like their Bowlero deal with VICI. We got called about it, so they—we don't see them in our deals. If, if you're a $60 billion deal, and you're doing a $77 million deal, it doesn't move the needle for you. I mean, it does move the needle for us, given our size, and we're just built differently. They're not built to do that, kinda what I'm saying, that flow business, that $50 million-$100 million. They need to elephant hunt. But I can tell you whether it's their Bowlero deal, their Homefield deal, again, we always get called about it because we're known in the space. But, I don't think... Greg, do you see them?
No. I mean, and again, we see most casino deals, so I guess you could say we run into them there, but that's about it. And then I agree with Greg. I, you know, it's a nice mix of new relationships and, ongoing relationships. And again, I not to keep talking about Miraval, but we just announced it. That's a perfect example. It's a new relationship, but it's built on growing into the future.
I'd also say, on that $250 million of spending for this year, $140 million of it's carryover spending from existing deals. So we already have the 140 expectation of deals that have already started. And then we announced that subsequent, we did a deal with Andretti's. We'll probably spend in the neighborhood of $20-$25 million on that. So there's really not a lot of go find in the $250 midpoint, and a lot of it, all of it, would be existing relationships effectively in the known amount.
So would you expect that number then to increase? I mean, it sounds like, so basically, what you've guided to is kind of known-
I think that's a fair assessment. I think, again, cost of capital, our ability to dispose of some of the assets we've talked about, could drive that number higher. Again, it's—there's no doubt, and we've said this on our call, our opportunities exceed our capital. So again, we have. We like this Andretti's deal. It was probably ready to go nine months ago, and they wanted to work with us, and our capital constraint where we are, we had to move it into this year. And so that's okay. It's just we, as our cost of capital recovers, we want to get back to that cadence of, you know, $600-$800 million. We did $600 million in 2022, and so that's a really good cadence for us.
But we do need some cost of capital recovery.
We have the liquidity. We have $78 million of cash on hand at year-end. Nothing drawn on a billion-dollar line, but we're mindful of leverage and maintaining a strong balance sheet at kinda low-5s debt-to-EBITDA, and that's really the limiter until there's a cost of capital that works, and you can raise debt and equity.
What kind of free cash flow do you generate?
Well, last year was probably $170 million-ish. This year, over $100 million. Last year was really high because of the excess deferral collections, but this year still, because of our payout ratio only being about 70%, AFFO payout ratio or lower, we'll generate, we think, over $100 million of free cash flow.
... Okay, and then we had a question from the audience, which you - I think you just touched on, but what are the leverage targets near term, medium term, and then sort of acquisition funding plans?
Yeah, so, you know, leverage-wise, I've been CFO for, I think, I've been at the company for 20 years, the last 18 as CFO, and we've been at around the low fives. You know, there's some moderation of that at times, but really low fives is where we've always operated. Our stated range is 5-5.6. Our plan is to start the year, we start the year in the low fives and finish in the low fives.
Okay, so that, you're in the low fives now?
Yes.
Mm-hmm. Could you talk a little bit about the... I think you have 70 properties with 8 operators in the education platform, it's 100% leased. I think you've talked about diversifying away from that a little bit. Can you maybe just talk about the plan there?
Yeah. Again, I think it's an area again that could generate capital for us as we move forward. Again, as much as I'd like to convince people, I don't think I can tell kids that going to schools is experiential. They're, they're not, they're not buying that. So, strategically, it doesn't fit with our experiential focus, so we will exit that space over time. Again, as we look to raise capital, it's one pool of assets. Again, that's a pretty widely traded asset class within the net lease group, so we think there is a pretty broad market for that, and we'll probably begin to explore that to take advantage of some of these opportunities that we're talking about.
What sort of cap rates do those kinds of assets trade at?
I think, again, in the markets that we're in now, meaning, yeah, you know, what it was two years ago is different. I would still say kind of mid-sevens-
Yeah
... low mid-7s.
There's a spread there. If we're invested in the mid-eights, we can flip that and put that capital to use.
Okay. And then I think, you know, on the call you talked a little bit about some of the, kind of the hotels and resorts types assets that you're invested in, want to do some expansion activity. So just in the way your relationship works, do you front the capital to them, or do you take the... Do they fund it and then you take it down when they're done, or kind of how do you think about allocating capital to those tenants? Greg, do you-
Yeah, I mean, typically, we provide ongoing draws. Think of us in those situations, kind of like a construction lender. So the tenant's gonna have to bring a portion of capital, and then we'll process pay apps and, you know, pay close attention to the documentation.
So generally, Smedes, what's gonna happen in those are the tenant's capital is gonna go in first, and then we'll keep it in balance. So if it gets out of balance, they're gonna have to bring more capital to the table.
And that's not just hotels, that's the way we do all of those-
That's everything.
Exactly, yeah.
Okay. And for these hotels, resorts, are they primarily leisure-driven assets, or do they have a business component, or are they?
Generally, it's going to be experiential focused. So whether that's Alyeska up in Alaska, which has not only-
... ski resort there, to our beach in St. Petersburg. So there's generally gonna be... It's the primary focus is gonna be an experiential. It's gonna be in and around some asset that is driven on the entertainment experiential side.
Yeah, and Mirbeau obviously has a lodging component, but then a very large spa business. Murrieta and Pagosa have lodging, but again, the demand driver is the hot springs that are on property. And then we have a mortgage on a hotel in downtown Nashville, that's literally across the street from every major attraction in Nashville.
Okay. You've talked about disposition proceeds, I think of $50-$75 million. I think like $45 million is already in hand with your sale of the two Titanic-
... exhibits or museums. So I mean, is there maybe upside to that, if you can get-
... further down the road with some of the education sales, or kind of how-
Oh, definitely. I mean, again, first of all, let me touch on one of the things we again, it's your words, Titanic Museum or exhibit. In this market, those sold at a 6 cap.
So if people wanna talk about the power of experiential properties, I think there's not a whole lot selling in this market in the six caps, but that transaction. So that generated roughly $45 million for us. So yeah, I mean, clearly, given what Greg said is under contract, what we've guided to is what's known. There's definitely the opportunity for some of the other things to occur during the year, which could drive that number higher. But we just didn't engage in any sort of speculative, you know, beyond kind of what we knew. But there is no doubt an opportunity there for us to get more proceeds out of that and then redeploy that into investments.
Was selling those driven by the relatively attractive cap rate , or was there a decision sort of strategically to exit those assets?
No, it was just Cap Rate.
You can... Trust me, anybody here wants something at a 6 cap, we're open for business. So just-
Yeah, I think I mentioned on the call, Smedes, it's worth... The, our operators were retiring, was a husband and wife. Husband and wife, and they were retiring, so they found a buyer, who also had other investments in Pigeon Forge. That was a private equity firm, and they approached us, to Greg's point, about buying it out, because they didn't want to be in a sale-leaseback platform. And obviously, we'll sell at a six cap.
Okay, and then one of the other things you mentioned on the call was finalizing an agreement with the, I think, four Xscape Theatres .
Right. Yeah.
you got $2.5 million termination fees, you entered into a percentage rent deal with a recapture right for another one. I guess, are you, I mean, are you satisfied that the restructuring of that deal is gonna be enough? Or, you know, how do you think about that? That seems like one of the areas where there's. It's not a huge number, but there's, like, a few moving pieces there.
Yeah, I think, obviously, it goes without saying we're comfortable because we cut the deal. What we've tried to do is improve our portfolio and portfolio coverage. So we also announced on the call that we sold 2 Alamo Drafthouses to franchise operators in small markets. They were in Corpus Christi and Laredo. Just long term, didn't seem like a good place for us to be. With Xscape, the theater that we terminated is actually adjacent to a dying mall in Cincinnati, so again, didn't seem like there was a lot of growth potential there. And we feel comfortable that going forward, they'll be successful. We also, and I think you mentioned this, as part of the deal, they're gonna invest $1 million in each of the 2 theaters that they're gonna operate long term.
Okay. And then, I mean, you have a number of operating assets that are across, you know, several buckets. I mean, longer term, is your plan to dispose of those, or would you look to put them into more kind of traditional net lease structures?
I think especially on the theater side, it's looking to put them in long term. Yeah, you know, and we took some assets that we feel like will work out to be highly productive assets, and it was at, as we referenced earlier, it was at a low point. So we engaged Cinemark, which has the highest credit in the industry, to operate those, with a goal toward probably migrating those over time to leases. So again, I think that was just one of the areas that was a result still coming out of COVID that we were looking at.
Okay. Then I'm gonna go into our final quick questions. Over time, if you get a more attractive cap- cost of capital, I mean, is the gaming industry attractive to you? I know you have a small interest there, but-
Again, it's an exposure that we would like to have as part of our experiential. If everyone recalls, pre-COVID, we had a major gaming asset under contract that we both collectively backed away from that deal as COVID hit. So we think it makes sense as owning a little bit of that exposure if you're looking to build a truly diversified experiential platform, so that no one's concentrated in one area. As Greg said, we're still called about every gaming deal. We've had multiple opportunities, but it's just for size right now, it doesn't work.
Let's just wrap up with a few kind of big overview questions. You know, the first would be: As you think about the net lease space in 2025, what do you think, sort of same-store or organic growth can be across the industry?
I mean, generally speaking, it's been kinda somewhere in the 1%-2% area. 1.5, I think, is probably a good-
1.5? Okay. Do you think there'll be more, fewer, or the same number of public companies in this space a year from now?
Well, the trend line would say fewer. I mean, if you-
Say what?
The trend line would say fewer-
Fewer, okay.
If you looked at kinda what's happened over the last several years.
So we'll go with fewer. And then for, for EPR, what's the best real estate decision today: to buy, sell, build, redevelop or repurchase stock?
It's interesting. We're executing every one of those except for repurchasing stock. So we are buying, we are redeveloping, we are selling. So again, in our limited capital, we like the buy decision. We look at the repurchase stock decision every time because it is an investment. It's not leverage neutral, so you gotta look at it in that way. But we're economic animals. We're gonna do what is the best return that we have, and right now, deploying our capital in the buy and redevelopment appears to be the best for us right now.
Okay. Well, listen, thanks. We're running out of time. Thank you for your time today, and appreciate you being here.
Thank you.
Thank you.