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OFC Corporate Office Properties Trust

Participants
Stephanie Krewson-Kelly IR
Steve Budorick President & CEO
Anthony Mifsud EVP & CFO
Manny Korchman Citi
Steve Sakwa Evercore ISI
Jamie Feldman Bank of America
Craig Mailman KeyBanc
Dave Rodgers Baird
Omotayo Okusanya Mizuho Securities
Danny Ismail Green Street
Call transcript
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Operator

Welcome to the Corporate Office Properties Trust Third Quarter 2020 Earnings Conference Call.

As a reminder, today's call is being recorded. At this time, I will turn the call over to Ms. Stephanie Krewson-Kelly, COPT's Vice President of Investor Relations. Ms. ahead. go please Krewson-Kelly,

Stephanie Krewson-Kelly

and website. Good are third welcome posted package today our quarter and the discusses release, Mifsud, Budorick, Ryan. non-GAAP press GAAP call measures results on financial are COPT's results our to and on President management EVP Anthony and discuss results. this CEO; information Reconciliations afternoon, you, presentation of to and call and on conference Steve CFO. available Thank supplemental With in me website,

As statements uncertainties, are are and our update forward-looking company materially a to discussed subject not the Actual and differ filings. does in to call them. reminder, from undertake today's Steve? during made statements, duty these length risks events which and can SEC forward-looking results at a

Steve Budorick

for that and strategic cash I'm XXXX recycled capital generate thank franchise strategic the plan to methodically traditional the suburban commodity Good going creating durable my from developing focusing our We've regardless properties assets office and Between objective big flow of broader remarks Defense/IT picture. afternoon, as executed environment. reallocation away everyone, joining we a would into the economic Locations. us. by on growth with of XXXX, you and start

public also flexibility. and We investment-grade access to delevered enhance create to market bond our financial

our with economic The activities shut our government and driven long-term down. its in U.S. and by SRP, that government support locations and general in buildings from funding rents technology are activity. the of we only from cybersecurity correlated not United contracts of engaged half States we information others. among executed rents our never derive national annualized defense activities Before derived These Defense/IT XX% Locations. defense missions are Today, in contractors the security, activities the

affirms of the Our performance uncertainty franchise in our differentiated of during period the investment strength and pandemic shutdowns economic this strategy. the

in Locations us through concentrations and senior our developments at to locations continue cash Defense/IT flow $XXX straightforward our the portfolio an issued operations. million market strength when The low-risk at of attractive fixed-income plan position our growing we and validated extremely of executing September rate. solid franchise notes tenant property Our disciplined unsecured of

overwhelmingly sheet of durability quarter cash X We our context, the the feedback months. I'll regarding first of the balance flows. our received positive major our from achievements strength and In quality, the our portfolio and also this investors highlight for for

Our $X.XX of leasing third quarter feet square third of exceeded our solid. Defense/IT our the high the XXX,XXX-square-foot at include: feet million the XX,XXX-square-foot and with campus. different XXX,XXX Gateway; months. square the per by XXX,XXX include during Redstone completed X.X Antonio Park quarter leasing million at share and months. outperformance. has first Today, of Locations, roughly of We of San the square during defense first totals $X.XX total the depth high-security These contractor, feet during quarter contractors, build-to-suits National and quarter development breadth we end defense facility the demand. X.X an buildings and evidencing the of X over guidance not Leasing but only remained feet represented in Business two, have FFO X consecutive X one for completed the and at These other build-to-suits aerospace square

half lease of quarter, for development data with government Gateway. Notwithstanding development U.S. pipeline XXX,XXX shells. the an during feet, our leasing approximately first at defense and contractors campus and completed also square secured to XXX,XXX feet X.X Redstone our building center million XXX,XXX-square-foot increased half We the government leasing by approximate the the U.S. square achieved for feet at square

retention the totaling track economics months. the set X terms rates respectively. resulting X feet rolled remain to the feet In volumes square Boeing X.X Renewal exceed exceed for months, years tenant the X quarter X.X%. in expect meet renewals in and the quarter for months. the XX-year foot for was the We're the averaged term X.X square were and and with robust or remains of for leasing X.X pipeline line development in the X square diversified, Our on annual of year. months, Redstone of on and in XX% we year years million nearly escalations and to development feet. were during the our down X Gateway, XXX,XXX cash on X%, Lease XXXX. $X.XX in quarter retention leases in and annual and terms $X.XX expectations. quarter square years and excluding leasing million XX%, the at for square with renewing years quarter very per per renewals X CapEx record leasing of We averaged Average XX% in first Lease rent and X-year X our completed feet lease renewal renewals and X renewals and XXX,XXX rates of months, two only the strong.

also Hamilton completed Business an renewal We with Allen XXX,XXX The feet square Booz National Park. at early for

and on XX, in expiring feet next we expire no Slide annualized have result, year. more leases as XXXX, only and office a or rents As square X.X% of shown of XXX,XXX our

and in harmony pressure lease a Regarding converted at transaction megawatt work to we the is no conclude tenant under continue XX.XX longer-term lease. with in quickly, so a the towards rolling lease renewal to August, to the them DC-X, X-month a

in renewal, are to is in or deliver confident to By growth outcome working high. lease our priority property. and are that requested tenant We power in the example, is our to security is has that matters high Notwithstanding enrichments deployment call, remain very system enhancement. the healthy structure, of will the under rolling as an utilization the of facility's we're that provide additional FFO negotiation a are we among we last confident the timing excess XXXX. the market The the since of enhancement our will And norms, customer resilience. given way the

revised feet leased the of in with results terms in square vacancy our XX,XXX brought XXX,XXX square quarter the months X the in total In for leasing, feet. line our expectations. quarter were to

original than impacting solid expectations, activity XXXX in should lower our and Although enter momentum. on the with vacancy volume expect occupancy leasing quarter leasing forecast, volumes we leasing strong the our ratio, fourth trended shutdowns year-end during based

leased quarter, service the development the development active the of XX million XX% our feet end At X X.X leased leased. under fully we buildings quarter are months. pipeline. million Regarding feet into that had the feet in comprising square We X.X placed square and fully square in XXX,XXX

that X.X and of increasing our year square during the year. our the portfolio total expect by fully the over Before leased, year-end, bringing nearly million are to we are core XXX% leased square size in for X.X to million feet that place service feet XX% nearly

highly place to sheet visible, development EBITDA our ability projects strong balance service low-risk into stabilized of drives Our generates that and cash flow maintains large volumes growth.

portion case, that to absolutely in either locations only top to are from have operations, for buildings and data Now office which work none other environments Operationally, contain our are remotely. on pandemic required vast employees properties the operate of shutdowns SCIF in be the our the campuses, center cannot and our tenants majority preponderance properties, an pandemic minimal. of In were high-security update the had impacts our pursuant the small a each secured shutdowns, standards. performed home. of to at of or on high-security missions our Recall these work to subject allowing

In is to pre-pandemic terms utilization our of back portfolio of normal half levels. rates,

is of XX% XX% of current at utilization roughly daily running only lightly XX% Another or estimate a weighted our portfolio XX%. XX%. with attendance is above average And with of utilized

the accommodations second remained without XX, our Slide rent as relief rental were below on for above third Lastly, and XX.X%. shown quarters, and revenues, of rates annualized collection adjusting in rent X% granted, rent

at for from than create pandemic. $X income we the first Finally, $X.XX call, managing impacts have offset our guidance interest quarter by fees of potential reluctantly and million on and rent, other field generating lowered more development by expense. we losses higher straight-line Today, parking to outperforming capacity

a hand As XXXX can elevating XXXX, to share midpoint over which XXXX. grow X% we X% FFO our we and to guidance Anthony. with I'll the the call With FFO a result, are per $X.XX between growth Even for that, share implies results. we over midpoint confident $X.XX, by in per XXXX of are X% higher-than-expected

Anthony Mifsud

Steve. Thanks,

X million charges terminated per year's end issued from bonds. the portfolio debt. September the of noted over of closed investors. on new redemption were the XX% same-property concentration a the the and by Defense/IT progress of of the on our issuance NOI, Contemporaneously since the modest past the cash was cash in redemption and sheet This is XXXX. position at of high years into an the institutional future Stronger-than-expected tender million book offering, simultaneously with development of of our mature first very the our and March rates and a approximately million in of million comparability, from strengthening pipeline of and $XXX $X.XX. flows with from $XXX guidance On Approximately due X in disconnect the next current credit strong improvement the a cost for cost of of those between bonds the $XXX and we XXXX lower bonds the forward launching bond remaining FFO accounts. the overwhelmingly XX, XX, properties issuance that the savings maturities. for in in development levels, swaps cost decrease response Also June of refinance cost transaction X/X% the order That as to initial million of months associated composition, bonds, and announced were the the XX, XXXX. tender of When in quarter by our $XX.X through years, $XX the adjusted October and closing the ratings and very tender fees deal settlement led X our $XXX received September we was the of capitalization initial The June conservative at XX, with our which the positive the utilization offer shutdowns. end Locations, but and billion all-in new successful in of our we the guidance. XXXX, totaled translated on increase specifically our active Accordingly, upsized we bonds our Third our we $X of over prepayment high of the XX% durability repaying and X.X% September pandemic was hedge exceeded announced strong metrics, raising notes starting our We balance a redemption of $X.XX at of capital. tendered of expectation the X.X%. all September are XXXX of million. October unsecured for X.X% terms maturing combining share, and some

under shortly shells be as to joint an Lastly, will X contract third our release, referenced existing data quarter press in and center interest sell in expanding venture. a we venture joint

XX.X% proceeds. owned next After placing maintains balance not in be sheet. X X The we expect close that and lowers will Because new in square activities of our same-property sale change shells And leased equity fully from to we this X.X An same-property the of removes of core of pipeline. the elevated feet of this impact from wholly include capacity years. generate under this transactions of XX.X% XX% X our X.Xx that quarter, guidance. joint a development to shells More EBITDA and activity lowered between lower be these a our data XX.X% range does our XX% funding developments slightly fourth range center the of or into of from to year-end is this it expect development our before to year-end. our pool. raising to to of created by million data leasing pool, service occupancy service extremely the have risk prior for to stable guidance and presentation additional investment-grade transactions, portfolio to end occupied our fund year-end, million million during center continues At the broadly, of these quarter will same-property that composition venture to and could over debt to $XXX our EBITDA XXXX The We higher occupancy equity by portfolio assumptions strong to of we combination will XX XX.X%. leased, and development the future major Slide details overall the incremental and equity the X.X year-end. also tick core from $XXX well-leased. larger equity to was have portfolio

our are year, from raising For original the above per $X.XX, full guidance is range. share for midpoint $X.XX for of as $X.XX FFO we the comparability higher to than which adjusted

FFO of the midpoint our I'll Steve. are turn With call share reiterating which fourth $X.XX. to guidance back We comparability, a also per has as quarter that, adjusted for of

Steve Budorick

ensure cash our portfolio access shutdowns reallocation economic Thank create you. strategy paired conservatively generate flows demand support. assets with demand when by ongoing around durable economic highly plan The a the our drivers pandemic for a provided to challenges and balance was goal the about a The varying which ground will to and the on sheet, and for that, was of in government conditions consistent strategic of capital. we concentrating brought proving levered

our conditions which generate reallocation cash Our repeat outperform the shutdowns a for expectations some highly of conservatively ongoing strategy provided if balance sheet, demand going with our government franchise. about We support. strategic for of create paired wrap-up. of capital. that, as we ensure a face repetitive. to to challenges, brought of strength was in around and economic flows was it's with to ability Difficulty] challenges to portfolio end. so economic durable unsure assets I'm the year's access The The We're by we our of this were in proving ground plan drivers me when and varying on would the demand where pandemic got Bear dropped, concentrating [Technical a dropped our levered a goal to and consistent evidences

crisis the outperform is negative to we And of strength expectations face the resilience. impervious in this not to pandemic, demonstrated the while evidences have our ability year's challenges its effects of Our franchise. our of the business like a

our for in future in per a of at breadth robust feet FFO X.X development a of well of X%. leased pipeline, capital XXXX. least X% our leasing Moreover, active to million attractively in grow confident access our We share priced to beyond to by ability bode XXXX pipeline opportunities developments, and highly are growth the our healthy square

national support, cannot with signals needs. up a irrespective absolutely election cyberactivity security are of for remote driven offices. traditional questions. office be missile They With not human reminder, missions fundamentals. These all are and space final and As building please are operator, performed they that, of open the intelligence, defense, least by exploration, from and the namely advance and enforcement missions law correlated call home outcomes, global locations,

Operator

Your from from Instructions] the line [Operator of question Korchman first Manny Citi. comes

Manny Korchman

a that couple of you the talked JV just Anthony, the data clarification. center about, sale or sale points want

out assets JV new selling to existing So Or are additional the some you of the are assets of to and new JV? and forming then assets getting you some then a JV?

Anthony Mifsud

So we are forming a new JV.

the owned wholly investors' to venture by will $XX that's an that increasing size $XX a so then are over a little X contributing are venture. assets And which that We of valued at we the XXX% be value, get currently that, increase interest million. venture, in XX-XX to venture, we expect of million joint joint the XX%

Manny Korchman

-- Can when to you be? going with interest share your new is

Anthony Mifsud

-- and XX%, to excuse XX%. up will to go will up or go the me, We investor

it's currently, venture. XX-XX So a

$XX And that's XX% our of XX% expected selling million. interest. to be we'll So raise another

Manny Korchman

what assume? did Got on at, fashion the that be to with consistent I deal is you pricing it. going And

Anthony Mifsud

talk it year. we more pricing did closes, Well can those after favorable deals that it's but than more where that's about last we

Manny Korchman

as And usual pick the it like is rate been it from leasing Has of to components starting of Great. of any other out up. perspective? or coming then sort sort or discussion pandemic? of is changing business sounds leasing lease change Or rate a there

Steve Budorick

as no In intensity demands our usual leverage negotiating is concessions very or change seen right business for of posture. then active and much markets, now. in We've

located. not markets in that of great think region I properties there's but where our in the are deal a some

Operator

from Your Evercore ISI. Steve next of Sakwa the comes from question line

Steve Sakwa

about about activity leasing, wondering But discussions company. dipped earnings seen with kind other areas vacancy drive office leasing. which like of it the what tenants and be of one seems are know was vacancy I a little we've just just and could for talk bit of forward? going existing leasing the the for to the to I down kind if more upside you Steve, every

Steve Budorick

on process was delay. really great a company impact our timing. The It was That's a question.

of As the really our down represents brokerage the community that over most shut summer. they tenants,

week. measure By XX%, identified a so north It's was July, activity we from XX%. our every And down opportunities of we of activity amount about vacancy have the we normal the we back time meaning ratio Our relative timing. of have. XX% that to got we a to XX%, of just had near in up -- slowdown

have expect a to year, and going feet We we year. fourth we into strong strong next the quarter relative this XX,XXX did square demand

beyond moving we're think I So it.

Steve Sakwa

then development I it. of XXX,XXX And the a on development Okay. in think it's -- over feet done leasing side, you've square little maybe

million, to sort hit stronger can't which Huntsville fourth seeing you're strong you particular there NBP, of too how implies whether But least realize shells, office, demand? I at share going traditional I are pretty data and many does said between where break out X specifics. it's think center regions, quarter. you a that or you're

Steve Budorick

Well, we're data relative is the seeing I'd but to -- throughout the likely rest of shell. year, XX% say center demand sorry, this portfolio,

Steve Sakwa

last then question. And Great.

talked XXXX, XX% from under a got was How tackling million And your the derisked You little that? you range? in standpoint, large rolling. would still that a expectation retention I X% and be for do you've remaining sort just about X.X of guess rates it you've that but tenant see

Steve Budorick

put XX guidance, north to I or but say would first early or out It's of above. XX

Operator

line the Feldman of Bank from America. of comes question next Your Jamie from

Jamie Feldman

X% outlook even you the Great. you X% gets guidance appreciate next and just to year, Can I X%. what gets us what X%? of help maybe to the the above the you to for the range understand X% and

Steve Budorick

be the expect. if And represented would And be would my I'll velocity renewal leasing. renewals in we at We the I vacancy DC-X. to the referenced a comments at upside range. we'd the we -- achieving be additional be spec Midpoint very the starts we're renewal clear. be X% by were about where, in in achieved, it Sure. not position believe of

Jamie Feldman

Okay.

be would that NBP? So

Anthony Mifsud

Throughout the portfolio.

Steve Budorick

the Throughout portfolio.

Just overall rent volume starts. of new

Jamie Feldman

right. All Okay.

swing? the DC-X So really is big

Steve Budorick

to is, point to irrespective deliver growth The that year. next trying Yes. convey we're of key we're going lease,

Jamie Feldman

Do next Okay. sense leasing year could you same-store like what of a for look spreads? yet have

Steve Budorick

I leasing I spreads, that, they expect talk would range the think too have been. in it's early. I can remain about to

Anthony Mifsud

as out next to the It to we there expect we -- the to the of guidance behind X% those points guide put assumptions about out sort Steve give Jamie, put that. X% be. said, to where goalpost growth for specific Yeah, year's was reason wasn't the

following we start information typical we'll year. up as next guidance and So that with detail our be

Jamie Feldman

there's makes both. on calls, especially it That talk Okay. sense. about space. for thinking you've about their from And then cutting office have? commentary know the some with comments been you you just Can calls expirations about what mean could reaction next on you're how the up years their X and your conference Boeing coming I leases in Raytheon, and got to

Steve Budorick

to feet. got X we I've about in couple slowdown which cyber. space been a through. Raytheon, balance None separate I'll impaired systems missile signals activity the them are regard Sure. concentrations. airline buildings, With the run largest this component or of The activities, have has commercial X by XX% summaries XXX,XXX square either The is and in of airplane is intelligence and creation. --

is in has antimissile -- which XX% Boeing, us don't lift system nation's well, missile feet. is concentration, that future rocket system, and regard see launch The it area, defense, With there's exploration. X ground locations, the they're those of And space our So buildings defense XXX,XXX square heavy which for -- space have we similarly, house just the over renewed. all. and to them affecting we largest

these and And they're and commercial that services aerospace the none stable. that know then we are doldrums intelligence represent to in. other -- aviation. locations X to tied analytics, Navy Again, the of So intelligence operations, be

So we're we fine. think

Jamie Feldman

next thoughts just Okay. heading into week. election any And then the big-picture

thoughts mean Just from what latest think could either it way? you

Steve Budorick

Perhaps the XXXX, nail-biter. pro-defense has above the Committee. it's we Services suggests shifted level with recommended turned That, of frankly going requested. all candidate House and been spending to look focus our have the the the more at is the combined be or spending and which level along Well, What over to Party technology Armed of advancement less the with it's defense emphasizing be concentrations would very would would actions Since of has Joe play comments the Democratic be from said in on favor. in maintained. presidential a capacity, it White to Biden House

Operator

line Mailman Your KeyBanc. of question from Craig next the comes from

Craig Mailman

Maybe contribution. with Is the just on in a are going you partner? GI them be on the to question replacing Manny's follow-up JV? still JV Or your newer

Anthony Mifsud

of details the is transaction that into Craig. get the once We'll closed,

Craig Mailman

of just government, what home to Okay. Work been well contractors of for a bigger But I'm whether the guys. separately, guys comes densify issue and tailwind really GSA, at tried from for an guys in seeing the densification things, least you side demand's agencies government you defense be And is then that curious volumes? you on back clearly, the are good. from and their when spaces. as just less leasing could potential

Steve Budorick

a Well, I I what-if But configured a would June back We May the trend. person. certainly hope affirmative could trend. that and that had they would nothing we've rent more customers indicate that but space in to-date preliminary in I discussions we say are configuration. have nothing government indicate some will seen high-density per say

Anthony Mifsud

done comments, that and the to Huntsville, had that Craig, it's space space took third was the executed Steve indication with occupancy the months been referred they And on plan their done planning occupied which in in was August. his that quarter in ago in line that government tenant -- in the of space for XXX,XXX-square-foot down and they view just is one where tenant pre-pandemic,

Craig Mailman

you and then just that guys DC-X they Is space guys time. over been in offer absorb with option an or And that renewal, just would the complexity the it they're there lease whether eventually the the them? that they requirements you that given of buy Okay. on the any tenant, just looking this have from at, want to discussions lastly,

Steve Budorick

That I would it. that discussion. We be that to if we had had had an discussion haven't no interest. have reason they interesting believe

Operator

Dave Rodgers from Baird. the of line next comes Your question from

Dave Rodgers

for I mean, any sell because point to wanted I basis year, to financing you next Anthony, impact that I after I the negative the year. fourth and just that have quarter next guidance is than related bigger that to were on the about in year, is clarify, anticipated X%. this guess quarter rough XXX year? ask asset the in X% next assets sales and the the just a fourth And

So to if I wanted clarify that, could. I

Anthony Mifsud

Sure.

the increased So to account of raised XXXX. X% X% equity does the take impact the of amount into in

$XXX So was is expect we than the million what our this more in that a double little raise year to initial guidance.

So the impact fourth as included in as is year year those the -- late well next in in numbers. full quarter the for

with respect I as equity out additional still those next And the specifics we'll math. finalizing of in I the year, think for out put guidance details we to again, around year. think other we're next that put process

Dave Rodgers

XXXX haven't have contribution that something, on had do If so amount far, for put announced a you you it, contribution? Development what NOI helpful. That's NOI a might you've development based in from have for I missed I expect what seen bracketed to Great. it. today you so see

Anthony Mifsud

'XX XX? or For

Dave Rodgers

'XX.

Anthony Mifsud

I just don't have that with me.

think I put I the that development of with out. the I out now. put contribution respect to projects NOI pipeline don't the -- think are right that part we've we

that that's will be what included of specific guidance. a So subset in really

Dave Rodgers

something And the forward comments. you, with? you that? with your search. timing any Okay. in maybe, last still COO think that Is Steve, I you then moving prepared for mentioned on And you're don't expect

Steve Budorick

quarter, the an next for announcement last before you'll Yes. see in a engaged and process the We've call. been

Operator

Rodgers. question the next of Dave Our comes line from Instructions] [Operator

Steve Budorick

Dave to just I talked Rodgers. think we

Stephanie Krewson-Kelly

Tayo like Mizuho from on looks line. It is the

Omotayo Okusanya

a X very time on kind there, So quick one pipeline. that's movement with of I just X were some mean, any than of the I the delayed. Kind the color just about line? happening development of earlier decisions projects some expected had delivering and there

Steve Budorick

X we Well, delivered. early completed and

Omotayo Okusanya

[novo] XQ you city have delivering of 'XX. XXXX quarter not that's office So fourth in versus

Anthony Mifsud

a has next in There's building XXXX into Virginia Northern fourth in from of one the year. -- the our -- accelerated second quarter the -- government of been in next quarter the campus Yes. of

has the buildout building make buildout based the with that the team been that's project. government to the able the progress of on on that and So of the

Omotayo Okusanya

was XXXX then delayed quarter you. like Got And that River two? a or Road,

Steve Budorick

Frankly, frustrating our improvements steps. in The front till permit local to And streetlights, the they for can't in been the move that are completed. front is The building completed. right which timing company we the tenant has equipment. half of relocate power get are our switchgear

go, to and ready are ready we're tenants the go. So to

George's Prince County. waiting Just on

Operator

question comes of the from Street. of Green next line Ismail Danny Our

Danny Ismail

history But mix Steve, the can as the discussion next portfolio. appreciate see you well the mix over on see data the refresh the geographic X, years, office as as us what I as the as maybe optimal of you you what of X an center the optimal for portfolio?

Steve Budorick

strong Well, optimal and from the on discussions really We've both. mix can us. hands preliminary get makes much to our in is had we as XX-XX as But contractors. sense government defense

center strong. half shell question? over the the years. of We the data think very is What development second believe I that's big relationship next going to prove a our component couple be to was

Anthony Mifsud

geographically. Region

Steve Budorick

geographically, very mean, happy we're we're I regions in. with the

have and be the Defense/IT world. data at to activity in Locations market And center strongest shell is center continues strengthening. demand the we Our data the strong our that existing

regional any new in this see endeavors So time. don't point I at

Anthony Mifsud

Yes.

of with the thing shells, if The tenant, just need to you go note today. back the half relationship of developing you they other you the and is respect probably with the projects, to size center first we're the look were data when size started buildings of we at our those

the X So ago. one is X building probably worth was or years it footage square twice

total. therefore, -- of a the bigger a it percentage becomes just it's So

Danny Ismail

profits next on the discussion development think over And direction over next then of influences years, the development reduced on few about construction any as the you costs few yields years? of and possible

Steve Budorick

costs construction really pressure on upward So we experienced have not overall.

it we'd -- all offices the the months, the a We're of what over the on in coordinate not, stable that is afternoon, pricing would a yields development developments During so have environment of several was the developers. lot pandemic, expect to more us because increased we by XX smaller delivery actually through components is in our jobs other think of for Thank we and Thank you. follow-up out activity But in summer lumber pressure And call. bought and finished some you our our all we're joining please I it we were there I pressure stopped because restrictions. today. or was next that experienced to savings believe like would modestly. some you'd be like, able some if a little Stephanie achieve for

Anthony Mifsud

you. Thank