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Flushing Financial (FFIC)

Participants
John Buran President and Chief Executive Officer
Susan Cullen Senior Executive Vice President, Treasurer, and Chief Financial Officer
Frank Korzekwinski Head of Real Estate
Steve Comery g. Research
Call transcript
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Operator

Welcome to Flushing Financial Corporation First Quarter 2020 Earnings Conference Call. Hosting the call today are John Buran, President And Chief Executive Officer; Susan Cullen, Senior Executive Vice President, Treasurer, and Chief Financial Officer; and Frank Korzekwinski, Senior Executive Vice President and Chief of Real Estate Lending. Today's call is being recorded. [Operator instructions] A copy of the earnings press release and slide presentation that the company will be referencing today are available on its investor relations website at flushingbank.com.

Before we begin, the company would like to remind you that discussions during this call contain forward-looking statements made under the safe harbor provisions of the U.S. Act Reform Litigation Securities of XXXX. Private are that may statements those in subject differ to factors other contained statements. such and uncertainties any cause from risks, materially Such actual to results company's are factors the included the Such filings in U.S. with Securities and Exchange Commission.

undertake Corporation law. update applicable any obligation Financial except Flushing any required statements as to not does under forward-looking

in non-GAAP supplemental review and considered assess During this made or be to to will isolation are to non-GAAP intended performance. with substitute measures financial These financial U.S. a call, references financial measures not measures presented GAAP. for as prepared information as operating the in be the accordance and

For earnings John and Chief information to the release reconciliation and/or provide for Executive Officer, the Buran, President who now non-GAAP overview results. about introduce and measures will of presentation. strategy and to to GAAP, please an refer I'd these like

John Buran

thank morning, to this especially to first the call. of pandemic. XXXX Good earnings everyone, you. front those our Thank go for saying and our for by lines joining COVID-XX, quarter most affected by thoughts like us I'd on you start those out

top we through As challenging of our our unprecedented times, employees navigate and and remain customers and health our the these safety priority.

liquidity COVID-XX call on our our as financial performance, pandemic, today's the will quality, in detail greater profile. Then and Cullen, provide quarter decisive by begin our taking addressing highlights. well actions we're I'll first including discuss current response, as CFO, capital Susan credit

remarks, prepared Susan will your our Following I address questions. and

communities help of and were social to keep appointment new and including health Starting capabilities quick distancing, customers team respond members, healthy. with pandemic expansion and safety with to and our Slide X, to safe we the banking measures, remote

home. work any having many we our day, of from team of entire capability as Today, members remotely. work the On staff as XX% given have

we XX, Through assisting one of approximately terms the of six approved customers the months. loan which our forbearances balance are by of the $XXX principal is have an estate we banking business actively also in interest, to million for ranging in with real forbearances short-term and of outstanding deferrals million, from April million in Importantly, providing and $XXX book for our form portfolio. escrow loans $XXX is

we the customers from round demand and for loans actively current $XX loan We pandemic see Protection approval up the economic to the participated the SBA environment, million second the to these continue to forbearances. to with continue program. Given of our Program, gaining and expect fund Paycheck of in

of our assist brave the through and Main us. We proud communities our efforts to also of I'm delivering plan customers support food by the all lines protecting to hospitals our Lending to front on Program. Street workers healthcare

for we're time, this loans, fees and noncustomers. as ATM customers on During as well waving late fees

XXXX With our summary quarter that, let me to a first provide results. Slide of to now X turn operating

with much performed this action economic a While decisive of The noncash the COVID-XX-related per the GAAP our two needed in well, of by share. quarter resulted rates pandemic. earnings share quarter the country fundamentals charges provided to Federal $X.XX cut counteract tax underlying that for affected after per to negative Reserve's the the business $X.XX help loss COVID-XX liquidity were totaling effects

in share we at million per adjusted the or $X.XX quarter, share. As economic modeling, first carried At earnings of to items adjustment the and or after of tax. CECL $X.XX this our in fair after a per value charge were by end swaps mark-to-market result, our the $X.X Core approximately million share overall increased our a per to $X diluted our caused forecast XX%. earnings resulted $X.XX our tax. which This allowance

in quarter totaled increase and was driven core growth increase provision improvement losses margin. by loan and net for of $XX X% interest credit the taxes point X% before This million, Our quarter-over-quarter. for an core a XX-basis revenue

Importantly, and one credit key our of quality has been remains strengths.

nonperforming points. assets were quarter XX the basis end the of only at Our

an XX% estate-based our of X.X. real loan-to-value average XX% over of is and an coverage portfolio Today, with ratio average of debt

buildings XX% The collateralized commercial York Our total of exposure the City by loan multifamily retail. portfolio, XX% area, box portfolio. loans, representing very total in diverse rent-regulated the real represents big New which is to with loans limited are of estate

Given to this the communities remain to get COVID-XX, committed our customers through current economic time. we environment due difficult helping and

controlling will expenses interest on can control: our quality net with working maintain what focus we to margin. and We continue asset by managing borrowers,

Empire noted in pending in caused the acquisition and instability release, volatility to press been markets the of due Flushing and merger of to the U.S. Bancorp third of early end previously financial our of or XXXX. our occur and As the quarter second at be severe delayed the COVID-XX stock likely the March Empire XX the closing will the has by pandemic. in anticipated more quarter

that yields growth strong data, real showed accounts. more Looking our than improvement This Core Helping loan basis multifamily, a as costs. prior improved points deposit major to compensated These estate, was quarter. quarter-over-quarter. on XX% was XX points basis improvement by drive deteriorated was the at in loans loans increase quarter-end X improvement. in categories and from by for business of our commercial noninterest-bearing

XX% at small real base, collateralized nonperforming loans and were of the charged The quarter. XX amounted $X estate average the we million on dependent million loan-to-value XX%. X, to Slide March XX, estate was loans March of loan-to-value up On as and about loans for real by for off $X off nonperforming a

uncertainty. shrinking the started While change it GDP growth on up economic of of in a well, the quarter certainty outlook, one significant ended very and very cusp and to

call our on that, color give me and our quality. asset to performance additional With Susan the details turn on over provide let to

Susan Cullen

Slide X. Thank you, begin John. I'll on

increasing XXX% quality have in coverage of XX, to resulted credit metrics solid our ratio Our XXXX. as March

XXXX. great ratio XX.X% the entered we XX, As recession, coverage was at June our

a coverage of for multifamily, at where current real XX%, loans remain we the started ratio estate these totaled modest XXXX quarter's from [one-to-four in the times, crisis. on doubled estate, originations quarter-end X.X%. mixed-use is ratio debt commercial coverage loan-to-value and almost real uncertain the failure] The As exceeds our financial and our we portfolio service

stress in of during Protection order been mid-X% have Paycheck we using troubled excess and Importantly, with to our of we loan. through these times, customers cap assist underwrite a fund continue then over test to approved loans Program to XX. million April approximately SBA million each each rate In $XX loan $XX funded

than X, charge-offs recession during our Slide On the lower were significantly great industry. the

resolve identify the As portfolios manage process. in a and loan early reminder, we charge-offs loans, recording our actively delinquency to problem

We of are loans. a seller nonperforming historical

continue our As remain mindful strengthen sheet, we we maintaining to quality. balance asset of

were net seven five two midst were superior our demonstrated industry decades, since has Great shown metrics net times with Of note, nearly charge-offs charge-offs basis XXXX. points the of over our As that. in peak credit industry XX maximum Flushing while times charge-offs here, averaging Recession, charge-offs the

shows percentage of XX-day as by X remains delinquencies loans year. originated credit Slide Overall, a our pristine. quality

to strong years in made as discipline criteria adjustments for underwriting remained the Our credit XXXX. we've past XX has back

result, vintage delinquencies. As the XX-days-plus years, XX XX a in only last we have loans,

to XX. Turning Slide

mortgages, of as both you and up the estate forbearance. orders, the result certain in billion provide From customers. XX% exposures, As includes XX% is banking manage our see $X.X XX% exposure. can we'll a stay-at-home detail see, total while our actively the exposures. to in our risk pandemic loan the industries We real exposures increased we our in these tenancy backed loans. on This commercial And business detail of and of by and loan the continue portfolio, to make is

real portfolio sector. Slide portfolio today. loan-to-value XX% particular and On the compared was highlight any the we our estate subsequent note, related XX, to diversified is recession, estate to metrics concentrated our on Of to our conservative of CRE XX, the real XX% to underwriting into approximately overly Slide our leading portfolio Continuing demonstrate not well with XXXX. great

XX% many portfolio also and retail, of by secured single are example, centers, Similarly, there sub-segments, the portfolio tenants. Slide malls diversified. banking shopping XX, the well business banking mortgages. within is our including is For on business strip Approximately

Slide and XX, economic $X.X primarily The million driven of quarter deteriorating million million recorded on and provision losses the deterioration provision first growth the from for charge-off the due of is in over economic by resulting Continuing COVID-XX. loan the a conditions replenishment. of XXXX, comprised of $X.X $X to for credit we conditions' impact

economic on The XX, and million the allowance the being using rising forecast allowance. to favorable GDP. March of economy January a showed unemployment resulted as decrease adopted the which evaluation in X, added XXXX, $X.X We the with then CECL in environment, deteriorating

to Our calculate have capital calculation the elected results. for recession, used a may we losses, change six-quarter V-shaped uses straight-line to and reversion allowance rule the on transition assumptions in Any the effect an purposes. historical five-year regulatory

customers loan us environment, to into coming credit forbearances well manage close to has Our appropriate. continue and and stay we'll discipline our carefully, including that served as this

by XX money in points mix and the the core our and X% reduction X% Growth accounts. year-over-year. is driven to XX, basis This Slide the quarter-over-quarter deposits On of primarily cost noninterest-bearing increased deposit deposits by contributes of quarter-over-quarter. change market

focus to the year-over-year. deposits. continue deposits which noninterest-bearing an with Noninterest-bearing of of emphasis We on deposit of $XXX core total deposits XX% represent over accounts, increased on XX% million growth

$X.X remains liquid approximately liquidity with our Importantly, strong available of billion sources.

we provide liquidity liquidity capital pandemic. and we noting needs during to by have portfolio. after highlight help On financial capitalized remain with XX, XX, Slide Moving our our Slide customers and details that highlighting more to we on trend, low-risk communities the securities their our investment well our and this

and funding our mix. we XX, Slide on on Continuing provide assets additional details earning

deposits time floating borrowings this the XX% We less total and we Also, year. All periodic loans. than to helpful next the XX% on of in loans of our background as and discuss over ability NIM a slide. rate represent approximately have re-price provides

of basis change for quarter quarter. core interest million, margin. increase net net an of Slide from net to XXXX $X Core the quarter-over-quarter. linked NIM million interest income XX core core XX our increased drivers the first Overall, the highlights of interest income our $XX points was and

core points basis interest XX, yield basis assets XX funds cost Slide the quarter-over-quarter, on decreased interest-earning average was XX X.XX%, points. points XX while quarter-over-quarter. up The basis Continuing the margin net decreased of on

As on on a the qualifying hedges. and reminder, core excludes margin net adjustment loans penalties, mark-to-market prepayment of interest recovery the nonaccrual interest

On NIM. funding we highlighted the to Slide support built balance XX, using reduce to into we our costs sheet a strategy are

reminder, a the weighted have of $XXX scheduled cost million we to X.XX%. approximately mature of through CDs retail As average quarter at XXXX of a first

strategically replacement when the the of current lower side, costs to we reduce on wholesale cost rates, using funds. and are markets necessary maturing funding highlighted significantly CD right-hand As than

the XX. approximately quarter-over-quarter, last to increase Slide to $XX.X of million quarter. in X% $X expense but million XX%, decrease was a of increased noninterest and year-over-year. was Noninterest an Core Moving quarter-over-quarter, ratio X% the or efficiency quarter, compared XX% first XX% expense

expenses CECL our achieving in Excluding lower of and to expenses the noninterest manage quarter-over-quarter improving ratio. assist Continuing efficiency the XXXX, year-over-year. us expenses will quarter decreased in first NIM

of quarter XXXX. first Continuing on comparison Slide X average assets average of expense XX, expense ratio to basis the points. ratio to the In the noninterest first XXXX, noninterest to by for of of X.X% improved increased quarter to assets the

annual the average The CECL expenses noninterest first higher stock As the expense a of stable unit reminder, historically has to to maintained relatively due impact of of employee in grants a and include awards. direct increases restricted ratio quarter company assets.

in work remotely. with to look continue continuous efficiencies We gain to gains enhanced expect further opportunities our efficiency improvement operations to given and our for for ability

XXXX, approximate effective XX%. rate for taxes and tax Regarding we between the XX%

With to turn some closing comments. it I'll that, for John back

John Buran

the able Slide can a I of I'm to of our strength. come what Thank pandemic conclude several all over we team to continued XX, On been proud summarizing would in of this do you, Susan. like weeks. how incredibly members by position past have out

We essential our supporting needs. continue customers' in financial play and an communities to role

indicates liquidity Our earnings base and a to if strong, to absorb capital, sheet, power a provides ability losses. necessary. going sustain future multiyear balance testing material into our were good Stress credit credit environment over costs core this and positive our horizon,

that discipline has clients economic to and our served stay continue coming Our into manage close well prudently. environment, credit we'll to this us and

ongoing focus serve multilingual remains key maintaining branch differentiator. and developing customers staff York a our on to a New City diverse Our

in been us The The in the to critical our a environment. to long for model branches strong Universal ability New our represent Asian term. customers York City market serve over its customer in has significant continue the opportunity investment base this and in Banker

recent allow credit customer enhancing of cost been also digital Our this expansion and a deposit the environment critical total and mortar in gathering and COVID-XX, with a than consumer resilient, history and our at portfolio quality built Despite bricks will to long asset and our good cheaper footprint a due disciplined environment the experience seasoned economic has for while capabilities upon business enhance current for we underwriting, foundation strong have clients. protection. loan and

and dynamic as a customer online have to highly eventually attuned is more flexible banking environment coupled will result capabilities. of we economic a that to experience, a our lift, restrictive with workforce As begins and mobile that is base this

to and asset focused to quality, preserving pandemic through managing stronger will a net we and the our side controlling liquidity, capital remain expenses this conclusion, of company. on In get margin interest maintaining other

With we up will that, you. to Operator, it questions. I'll for over now open it turn

Operator

Instructions] [Operator go first of Comery g. Our you. question from Thank comes ahead. Research. Steve Please

Steve Comery

Hi, good morning.

John Buran

Good morning, Steve.

Steve Comery

down see I pricing. in to deposit this you have wanted what was like quarter-end? from about for it pretty kind you Maybe So, through guys start general. in pricing of kind It with slide of And looks so far. competitors continued to then materially you're seeing talk

John Buran

quarter $XXX the first coming the XXXX. significant did one a opportunity in we have of investor with, the total, million we side over So, pretty slides on of through CD in due presentation, have – the did as noted in

forward, So, larger like We're we online time to some of has it in I Marcus, taken now. continued and going prevalent do that see institutions come rates. think starting opportunity the to see for down example, a

expecting I'm bring continue So, in next few to of the will down our to funds see quarters. the cost opportunity

Steve Comery

Okay. the side, by on was loan offset holistically then of that kind gain but up a of lot was NIM substantially, more core NII marks. pretty Very good. in hedging the And so

that expect come the or hedging QX, of you that have given NII through? in rates lower, play growth would marks would of in does kind How again? sort So, been

Susan Cullen

we stay would stable expect being would net We to state so to play rates dropped the wouldn't income for have, saw points or marks in XX/XX that see the we that dramatic into XXX over tenor equal, I forward. that Steve, grow of see swap we X/XX. to from rates again. that decrease to The basis again. hedging going the interest the come we Everything wouldn't expect swaps expect

John Buran

the of of the publicly zero and talked the inappropriateness factor has so environment. Fed the the XXX Chairman at points there's rate of to come – down operating or about U.S., point environment. we're in that come And room lot so rate a is out rates is I guess other negative XX-basis for close to to a in terms projection that another basis not Powell

to clearly etc. the of a change level, upon vis-a-vis of muted. be that there's be think are They terms they're to Fed probably based be bit outlook unless and we So, in going any think the rates, policy were negative we Fed further may drops etc., a But shape given little going muted. curve, more

Steve Comery

wanted Susan, all does asset just when And no mean to growth equal, clarify, said that else either? Okay. you

Susan Cullen

letting would No, clarify were. environment the was that you rates I'm and for I sorry. where talking economic I they about like to me Thank staying that. say

Steve Comery

Okay.

or... So growth that asset includes

Susan Cullen

asset help lot John as growth on not capital quality, this prepared margins. a in focus asset maintaining work we as Well, said we're his situation expecting and through remarks, to pandemic really clients of our and our

Steve Comery

Okay.

I Okay, see.

anyway. – yes, expecting is much, there So, not

now. get Okay. it I

Okay.

talked of me, and reach, what expanding little guys are, with? been you a like what uptick digital more like sort just maybe new color for more the customer about features increasing on who one working is Just the mobile capabilities, have

John Buran

Sure.

been working and with So, QX, see... we've Synechron let's

Susan Cullen

MANTL.

John Buran

away larger able review without flexible account process, for in particular fraud. And process. number what do our run of opening through now the or found been have account of is openings openings, issues a vendors terms abilities the opening with environment. These fallout And go the A of us to had And manual we cumbersome we've to manual provided a to and to review. more MANTL. in deal a old-fashioned from are so a reduce account to much fraud fraud fairly we lot our to we stay from able had account had order

to So, significant where account it want respect we much an customers respond takes people's we time are that's had didn't more because something now was a of to aligned wait, just the to to drop-off rate what amount have opening that to request. expectations with

see intervention. in manual a of without expecting improvement very with more accounts to very, that amount manual to we're significant timely totally ability – minimal So, online, open

people well, opening to some the over directly. those to have we web coming We've And capabilities considerably stronger. next so managed bill releases take additional has much improved to In for our also make mobile mobile will as changes environment by and do our not that months. addition, our through businesses, programming and go marketing the been improve we have opportunity several have in the are place capabilities are that improved will enhanced, – that pay

to in fortuitous leverage It expect in very to well So, a able environment. at us, considerable coming improvement online that we be for the months. time and came the very

Steve Comery

Thank helpful. Very you. Okay.

Operator

question next go is ahead. KBW. Gilbert from The of Please Collyn

Unidentified Analyst

morning. Good for in Collyn. This filling is Chris

start the Empire first the number that a excluding wanted closed trend second So, I guess, in you necessarily play the out, little with would the come you to other have where Maybe line quarter I quarter. third quarter, same with or compensation in a talk expenses? stay the maybe don't or second expenses. know that of deal the with operating in seasonal thing into I about assumption factors the there toward and can quarter in the just on it's assumption the the bit in that

Susan Cullen

for be expect the the line closely And employees trend core our during give where did the the in we again, fourth should that XXXX was the quarter to there fourth flat more related expenses, as quarter X% increase compensation raises expenses. our on of about operating second forward other with year. would of I to it quarter the to going XXXX a

Unidentified Analyst

Got it.

normally would see? compensation So, in less line of you decline than a the

Susan Cullen

decline. is expenses the Well, compensation. seasonal million related be is to would that there of Most $X a big

Unidentified Analyst

Got it.

it I I strong I end? composition XQ of XXXX quarter. a really at the X.XX like down into last here on of mean, move-in then held second well at in Can seems versus in the the you quarter? the and that's long again movement the well. that rates the kind up coming funds bit the about X.XX long mean, of guess terms quarter. given Fed looks all with it's that really, had going talk just And It pipeline, looks yields maybe versus little or Okay. pipeline that really extremely so just where mean, here in – rates the up now is held I over current it

John Buran

Yes.

have think the – pipeline similar of come the to structure the etc., has in similar ancillary We in of a availability to probably is closings, to to county, I been middle of slowdown we've organizations will to loans, in a started we as the been loan like that that lawyers, I so the the readily see So, slowdown clearly, a closing of structure past. haven't start portfolio, available seen of for the about not there what the lot March. the had note, fruition. the

Unidentified Analyst

That's Got March a be then V than going bit It's XX, shape you're think by I a not using of that, can it. and going And are in is people you of to case. little couple questions here. a Slide to longer we bit moving a that credit, out slower all more a then or it accounts, helpful. kind little move mentioned original kind late thinking maybe that the the I be guess and like but to of broadly, on more bit to specific seems V-shape recovery, little

significant today, hold quarter? until in see the to end related uptick to true of of you this of do kind the that as updated were economic another forecast if reserve So,

Susan Cullen

be of the said, you allowance. make going as greatly at June Chris, XX. to as I predictions economic we're where would forecast influence can't So, to the amount the

the our play our calculating all allowance, were watch these and so, estimates out for together. And economy we'll

Unidentified Analyst

Okay.

I forecast said another So it I mean, says the quarters. used was period guess that way, two

model? you mean were the that for XQ XXXX going does into So, only forecast the using

Susan Cullen

correct. two downward in yes. with quarters at our That's We were economy the looking model,

Unidentified Analyst

I Moody's which the kind lot of a CECL of guys you you're for know do for model their peers been their know And have models using? forecast. Okay. using

Susan Cullen

were We Moody's. using not

Unidentified Analyst

disclose model you say you you which – can using? are which Can Okay.

Susan Cullen

was Primatics for the Primatics name I I forget But is Chris, or else's, provider, the with somebody is – model out models underlying they it we're that name is the our calculator using the service of it. CECL the calculation. of buy forget and it.

Unidentified Analyst

it. Got

slide, or we kind for quarter this was the that stays like is? of around on stands versus then at basis see this points. maybe quarter XX provisioning could it where points to are around basis the Is And if as somewhere Okay. environment trend loans economic seems current the it the that that reserve so reserve to XX booked where

Susan Cullen

outside had $X of over part we remember, of a the as the a COVID-XX as piece. – million, so replenish charge-off needed of provision, part to Well, little we the general that of

Unidentified Analyst

talking net million, charge-off, $XXX.X of growth. Yes, million about on guess, I'm I is but the the of $X.X which

Susan Cullen

would giving our I ballpark. in in and portfolio loan-to-value is our percentage a allowance to about low results stress our the testing. loans, stay the of expect estate It gross real of the

Unidentified Analyst

they in I as just shopping be Okay. guess, lot granted I guys unprecedented far center? to an the so percentages, right about activity end the to peers, on obviously, before are how you a XX. looking exposures And at that, tunnel, that XX% similar Slide are you in through the jumped of forbearances were out I who halt back feeling, a I going flowing then mean, the as how cash in the your as but confident there's I retail go, mean, period mean, kind now, there's this get manner? And to light timely kind those we and mean, as at number of of that you're of get

John Buran

forbearance And of a provide business bit either running type, any or have need shopping out definitely brief a tenants clearly, a corrupted here going then that we're game. that, comment make people their if seeing dealing who have turn to environment retail or the color. at some this are paying stage where and our disrupted. of the little head me of I'll a these with over area Clearly, lending it that who about real let you're to not to of estate or multi-tenanted businesses more So, are can you're

confident feel are looking went time that the to and individual and would on, out, some do make that functioning in kick to as were businesses landlords it a bit but respect We were to fact, we be little profitable adjustments in not head more our environment. into bit can estate, got Frank a of over turn real and of normalized I'll portfolio Korzekwinski, color a to give But itself. the more you he little going

Frank Korzekwinski

The Good County. morning, the we something whether centers, or like generally Suffolk of portfolio smaller that in of are in that. have are character city generally well-located they Chris. anchor, key or whether overall or usually grocery have store Nassau some type a intersections, They it's the be

types businesses, nail facilities the So, and salons, grooming businesses small these of to of normally key once operation we you begin Many centers see pet places I of getting the to out, and revival think traveling, going hair salons, operate. shopping evolves centers. from around see to will are they smaller them going work of as these out get we'll people these the people that where would and again so those of go, to and return start in stores and a center such to to expect do to begin some

Unidentified Analyst

how of then, heard multifamily you're come kind wide on on last curious a could step and some Great. peers collections out, array then where New mixed but I one the just And just we've from market you of hearing I'm on rent given seeing this. then to what but you guys information maybe are guess, are color in guys for York, CRE? give in multifamily you close and I'll

Frank Korzekwinski

facts any activities. Sure. collections to We really have don't relative hard

have we customers data as progress management conversations firms We estate expect more May. seeing real as from time-to-time, through some well our some start business We with. to conduct with we do as that

the for As heard, are a our started a to have the collections seemed you we bit. majority seeing off below March guidance terms of projections, arena, given a fairly slowed giving up of fact good collection any April hearing have housing month good little was the but that at in XX%. of one's and pace or really is No the in not are multifamily. us that very affordable not may

dealt the have crisis. the of and very about operators most think get they in we've that their long-term They buildings residents help particular operators. people I action concerned to are have with through are been taking this

of into possibly open have they to been are The the can that tenant local its pointed locations, – operation Buran – as Obviously, for so maintain as tenants. expenses. responded Mr. retail It's bit it do than game. national a to best is terms rent their up, the cumbersome little has as businesses businesses of doing that these is is get we disrupted. landlords noticed back out And better maybe the work tenants for have for we things fixed smaller the seem with it's a exposure, operating multiple large not national are earlier, more noticing What challenge. some a tenants to in their easier when of payments that

Unidentified Analyst

[Indiscernible] Thanks. all Appreciate information. Great. the

Operator

like remarks. back to more for over no are turn questions would There in queue. to closing John Buran the I conference

John Buran

all you and the joining all safe, side get stay out very on And for you Well, this. of and your of all Thank thank please positively families we'll confident the much. other call. you we're

So, thank again you participating. for

Susan Cullen

Thank you.

Operator

This concludes today’s teleconference.

now we for thank your your may disconnect you lines participation. You and