FRP Holdings, Inc. Q4 2025 Earnings Call - Altman Deal Scales Industrial Pipeline, Now Execution Must Convert NAV to Cash Flow

Conference Call Moderator: Good day, everyone, and welcome to the FRP Holdings, Inc. fourth quarter 2025 conference call. At this time, all participants are placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Chief Financial Officer Matt McNulty. Sir, the floor is yours.

Matt McNulty, Chief Financial Officer, FRP Holdings, Inc.: Thank you. Good afternoon, and thank you all for joining us on this call today. I am Matt McNulty, Chief Financial Officer of FRP Holdings, Inc. With me today are John Baker II, our Chairman, John Baker III, our CEO, David deVilliers III, our President and Chief Operating Officer, Mark Levy, our Chief Investment Officer, and John Klopfenstein, our Chief Accounting Officer. First, let me run through a brief disclosure regarding forward-looking statements and non-GAAP measures used by the company. As a reminder, any statements on this call which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These risks and uncertainties are listed in our SEC filings.

To supplement the financial results presented in accordance with generally accepted accounting principles, FRP presents certain non-GAAP financial measures within the meaning of Regulation G. The non-GAAP financial measures referenced in this call are net operating income, or NOI, and pro forma NOI. In this quarter, we provided an adjusted net income to adjust for the impact of one-time expenses of the Altman Logistics acquisition, which is a material business combination, unlike our historical real estate acquisitions or joint ventures where expenses are capitalized. We also provided adjusted net operating income to adjust for the impact of the one-time material royalty payment in the third quarter of 2024 to better depict the comparable results year-to-date. Management believes these adjustments provide a more accurate comparison of our ongoing business operation and results over time due to the non-recurring, material, and unusual nature of these two specific items.

FRP uses these non-GAAP financial measures to analyze its operations and to monitor, assess, and identify meaningful trends in our operating and financial performance. These measures are not and should not be viewed as a substitute for GAAP financial measures. To reconcile adjusted net income, net operating income, and adjusted net operating income to GAAP net income, please refer to our most recently filed 10-K. I will now turn the call over to our President and Chief Operating Officer, David deVilliers III, for his report on company and segment financials as well as operations. David?

David deVilliers III, President and Chief Operating Officer, FRP Holdings, Inc.: Thank you, Matt, and good afternoon, everyone. I’ll begin with a review of our fourth quarter and full year 2025 results and then discuss our operating priorities as we move into 2026 and beyond. 2025 was a transition year operationally, but more importantly, it was a year where we significantly expanded the scale, capabilities, and long-term earnings potential of our platform. As we enter 2026, our focus is shifting from repositioning and investment toward execution and the conversion of embedded value into cash flow. For the year, we generated approximately $37.9 million of NOI and $22.1 million of FFO, or $1.16 per share, and ended the year with approximately $144 million of liquidity. These results were generally in line with our expectations and position us well for the next phase of growth.

Late in the fourth quarter, we completed the Altman Industrial acquisition for approximately thirty-three and a half million dollars, adding roughly one point six million square feet of industrial development pipeline. While not included in our original budget, this acquisition significantly expands our platform and strengthens our presence in high conviction logistics markets. Turning to commercial and industrial, the portfolio totals approximately eight hundred and seven thousand square feet and ended the year approximately forty-seven point five percent occupied or sixty-nine point nine percent excluding our new Chelsea building, compared to ninety-five point six percent last year. Segment NOI was approximately eight hundred and seventy-five thousand in Q4 and three point nine million for the year, representing declines of eleven point eight percent and thirteen point six percent respectively. The primary dynamic in 2025, which we anticipated entering the year, was lease rollover timing.

While occupancy declined as expected, leasing velocity was somewhat slower than anticipated as tenant decision cycles lengthened. Importantly, we view this as timing within the leasing cycle rather than a change in underlying demand. We currently have approximately 423,000 sq ft available for lease up, representing roughly 52% of the segment. At stabilization, this represents approximately $3.3 million of incremental annual NOI, representing a clear and visible earnings opportunity over the next 24 months. Execution will be focused on leasing velocity, pricing discipline, and progressing occupancy towards approximately 70% by year-end, with a path to stabilization in the low 90% range over the following 18-24 months.

Turning to Mining and Royalties, this segment generated approximately $3.9 million of NOI in Q4 and $14.6 million for the year, representing increases of 11.5% and 1.5% respectively, with strong margins. The business continues to provide durable, high-margin cash flow with minimal incremental capital requirements, and remains an important stabilizing component of our overall earnings and profile. While quarterly results may fluctuate due to timing or non-recurring items, underlying performance remains consistent and supports balance sheet flexibility. Moving to multifamily, the portfolio includes approximately 1,827 units across Washington, D.C., and Greenville, South Carolina. NOI totaled approximately $4.2 million in Q4 and $18.1 million for the year, representing modest declines of 2.6% and 0.4% respectively, with average occupancy around 93%, and economic occupancy, which reflects concessions and delinquencies, of approximately 88%.

Fourth quarter results were somewhat below expectations, primarily driven by, one, retail revenue softness of approximately $127,000 NOI impact. Two, lower occupancy at Maren, averaging approximately 89%. Three, continued operating expense pressures. From a regional perspective, South Carolina remains stable, with economic occupancy around 92%. Washington, D.C., remains more competitive due to supply pressure with economic occupancy around 87%. Our focus remains on resident retention, disciplined pricing, expense control, and improving retail occupancy where possible. Development remains a primary driver of incremental value creation. Our current pipeline represents approximately $441 million in total project costs with expected stabilized incremental NOI of approximately $30 million over time. The Altman acquisition expands our footprint into Florida and New Jersey, adds experienced development talent, and enhances our relationship with institutional capital partners. We continue to underwrite conservatively.

Target yields on cost of approximately 6.7% or greater, market cap rates of approximately 5.25% or lower, target IRRs in the 15%-20% range. Development value is realized over time through lease-up, and our pacing remains disciplined and aligned with market conditions. Stepping back, we operate a capital efficient logistics platform designed to compound long-term per share value. This model combines development, selective ownership, and partners to generate multiple sources of return, including development gains, durable cash flow, and fee income. Our approach allows us to recycle capital, scale beyond our balance sheet, and dynamically allocate capital across opportunities based on risk adjusted returns. Importantly, this model allows us to generate value through development, convert that value into durable earnings, and scale through partnerships, creating a more capital efficient and higher return platform over time.

Our estimated NAV per share is approximately $37.60, increasing to over $40 per share over the next three years compared to a current share price that has recently traded between $20 and $24. Closing this gap remains a central focus of management, and we believe execution across leasing, development stabilization, and disciplined capital allocation will be the primary drivers in narrowing that discount over time. Looking ahead, we view 2026 as an investment year. We expect NOI to be approximately $37.1 million-$37.7 million, with G&A increasing to approximately $15 million-$16 million as we integrate the Altman platform and continue investing in the infrastructure required to support a larger, more scalable operating platform. Importantly, this increase reflects intentional investment ahead of NOI growth, including the addition of a development, asset management, and operational capabilities necessary to execute on our expanded pipeline.

As a result, G&A as a percentage of NOI is expected to be elevated in 2026, potentially in the low 40% range, before declining meaningfully as leasing activity accelerates, development stabilizes, and incremental NOI is realized. Over time, as the platform scales, we expect operating leverage to emerge, with G&A trending toward a more normalized range in the low 20% area. We believe this is the right trade-off, investing today to unlock a significantly larger and more valuable earnings base over the next several years. Balance sheet discipline remains foundational. We ended the year with approximately $144 million of liquidity, net debt to enterprise value of approximately 21%, and a weighted average interest rate of approximately 5.24%. This liquidity provides flexibility to fund development, support lease-up, and navigate market cycles without reliance on asset sales. To close, the next 12-24 months are about execution and value realization.

Leasing the industrial portfolio, stabilizing development, and converting embedded NAV into durable cash flow are the key drivers of near-term performance. We are seeing early signs of stabilization across our markets. Fundamentals for well-located logistics assets remain constructive. In fact, we recently signed a lease for 15,000 sq ft at Cranberry Business Park in Maryland, with a face rent 38% higher than the previous tenant, and in the final stages of a lease for over 26,000 sq ft at Davie in South Florida with a face rate above underwriting. We believe the work completed in 2025 has positioned us to drive meaningful growth in both NAV per share and durable earnings over the next several years. With that, I’ll turn the call over to Mark Levy, our Chief Investment Officer, to provide additional perspective on leasing strategy, capital deployment and market positioning. Mark?

Mark Levy, Chief Investment Officer, FRP Holdings, Inc.: Thank you, David. Good afternoon, everybody. As we enter 2026, our priorities are straightforward. Convert vacant square footage into durable cash flow and institutionalize a capital deployment model that is scalable, repeatable, and risk-aware. Leasing is the fulcrum of value creation in our industrial strategy. Over the last several quarters, we have formalized our leasing process across markets, tightening broker coverage, implementing structured outreach cadence, refining competitive intelligence, and aligning leasing and asset management under a single execution framework. The objective is to eliminate variability in process while allowing flexibility in market response. In Maryland, where leasing absorption lagged our initial expectations, we have adjusted. We recalibrated rent positioning where appropriate, expanded brokerage engagement, and integrated additional leasing resources following the Altman transaction. We are underwriting to today’s strike rents and protecting long-term basis rather than forcing velocity at the expense of asset value.

In Central and Northern New Jersey, we are seeing improving tour activity and proposal volume, particularly from e-commerce and third-party logistics users recalibrating inventory strategies. In Florida, demand remains structurally supported by population growth and the migration towards Florida-centric logistics networks rather than reliance on Southeast regional hubs. Decision cycles remain longer than during peak years, but underlying utilization and supply dynamics are stabilizing into what I would characterize as normal post-COVID environment. On the supply side, development starts were materially curtailed in 2025, and entitlement friction, particularly in coastal infill corridors, continues to limit new inventory. That dynamic should benefit well-located projects delivering into 2026 and 2027. Our capital allocation framework this year centers on three initiatives. First, complete and stabilize the current pipeline, including capitalizing and advancing a 24-acre site in Southwest Broward County, expected to deliver approximately 335,000 sq ft of Class A logistics product.

We are sizing leverage conservatively and underwriting lease-up assumptions that reflect current market velocity rather than peak cycle absorption. Second, formalize a deployment model where basis discipline drive returns. We are targeting infill land positions along the East Coast where entitlement complexity and infrastructure adjacency create structural barriers to entry. Importantly, exit decisions will be made at stabilization, not inception. That preserves optionality, whether merchant realization to crystallize development spread or transition to longer-term hold where compounding cash flow and rent growth justify retention. Third, continue diversifying return channels. That includes selective net lease build-to-suit opportunities, leveraging established occupier relationships, targeted value-add acquisitions where operational efficiencies and mark-to-market leasing can drive NOI growth, and capital partnerships that allow us to scale without overextending the balance sheet. Promote economics and fee generation will supplement core NOI over time. Capital markets are incrementally improving.

Bank execution is more active, spreads have compressed modestly, and equity capital is re-engaging in development. We are not underwriting to peak leverage or assuming exit cap rate compression. Our posture remains conservative, protecting downside first, then optimizing upside. Across all industrial strategies, our filters are consistent. Infill locations proximate to highways, ports and airports, deep labor pools, limited competing entitled land, and basis that provides margin for error. Industrial real estate rewards disciplined operators over full cycles. Our focus in 2026 is to institutionalize that discipline in leasing, in underwriting, and in capital structure so that growth is durable and the balance sheet risk is measured. With that, I’ll turn the call over to John Baker for his closing remarks.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Thank you, Mark, and good afternoon to all those on the call. The financial results of 2025, while in line with expectations, don’t tell the full story of everything we did this year. It can’t be overstated what the acquisition of the Altman Logistics platform and its team opens up for the company in terms of where we develop, how we develop, and with whom. This acquisition has refined and augmented a platform and pipeline that management expects will drive earnings and earnings growth, operational cash flow, and net asset value. In the short term, that growth will come through improvements in same-store industrial occupancy. Getting our industrial portfolio back to the occupancy levels we have historically enjoyed remains a priority. As David mentioned, fully occupied at current market rents, the vacancies in our current assets represent approximately $3.3 million in NOI growth.

That’s growth we can achieve with minimal capital expenditures, and it has the most immediate financial impact. In the long run, we will continue to create value through our Development segment. In terms of growing NOI, our top priority in this segment is developing and stabilizing our three industrial assets in Florida that are currently in development. We anticipate stabilization of these buildings totaling 762,000 sq ft in 2028, which represents approximately $9.6 million in net operating income. These same-store and development goals are achievable and measurable, and we have provided in Slide 12 of our Quarterly Supplemental Presentation of Results, a way for investors to measure and track the value these assets represent when fully leased. This is the yardstick by which we intend to measure our progress, and we encourage investors to do the same.

I think we can open it up for questions.

Conference Call Moderator: Certainly. Everyone at this time will be conducting a question-and-answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you’re listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone. Thank you. Your first question is coming from Stephen Farrell from Oppenheimer. Your line is live.

Stephen Farrell, Analyst, Oppenheimer: Good afternoon, guys. I just want to start with some-

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Hey, Stephen.

Stephen Farrell, Analyst, Oppenheimer: Quick questions. How are you doing?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Good. How are you?

Stephen Farrell, Analyst, Oppenheimer: I’m doing well. I just want to start with some quick questions on the D.C. market, and I know there was a lot of supply that came on this year. How is it absorbing that? Do you have any comments on a big drop in vacancy pretty much across the board from Q3 to Q4 at Dock, Maren, Bryant Street, and then, well, the Verge was essentially flat? Any comments on that?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: In terms of D.C., I would say Dock and Maren and Verge are next to some large-scale multifamily that has come online, and they are offering, I would say, significant rental concessions, two-three months. That’s something that we have to compete against, and we’re trying to balance that. At the end of the day, it’s a competitor, it’s right next door, and it’s going to put pressure on our occupancy. That’s something that we are experiencing at Dock, Maren, and Verge.

Stephen Farrell, Analyst, Oppenheimer: Mm-hmm. I think it was something like, how many units came on from that development?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: It’s probably 2,000 units.

Stephen Farrell, Analyst, Oppenheimer: 2,000. Okay. Have you guys offered concessions as well or raised your concessions?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: No. In areas where we see, and if we have a number of, let’s just say, studio apartments that are all vacant and they’ve been vacant for a while, we are giving some concessions out, but we’re trying to keep them limited. We’ve seen pretty good renewal success. Kind of in 2025, we kind of saw renewals, let’s just say, 60% across the board with renewal increases of anywhere from 2%-4%, which was good. Again, as you noted, occupancy at Dock and Maren, if you just look at average 2024 against average 2025, it’s down. We’re still dealing with delinquencies in the D.C. market as well. I think, David, you know the answer to this. I was just going to say, I think the last time we checked on the absorption of those, call it roughly 2,000 units, it was pretty deep into it, right?

David deVilliers III, President and Chief Operating Officer, FRP Holdings, Inc.: The pace is good. They are absorbing units. We’ve seen that. The velocity is there. Concessions and rental growth seem to be intense.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Yeah.

Stephen Farrell, Analyst, Oppenheimer: What was the case at Bryant Street then, because that’s a different area of town?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Different area. Average occupancy in 2024 was, let’s just call it 91%, and average occupancy in 2025 is 92%. We saw a little push. At Bryant Street, renewal success probably just below 60%, 59% with renewals 2.7%. There, we’re definitely dealing with delinquency, and it’s just tough to kind of push rents with the same pace that we’re seeing operating expenses. That’s pushing NOI down at that particular asset that we have in D.C.

Stephen Farrell, Analyst, Oppenheimer: What percentage of the vacancy is delinquencies? Is it still tough to get an eviction and get them moving and out of the unit?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: It is. It takes time.

Stephen Farrell, Analyst, Oppenheimer: Yeah.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Again, Bryant Street continues to improve overall. I’ll call it 2025 NOI compared to 2024 NOI, was up 5% at Bryant Street, which is great. We hope to continue that trend.

Matt McNulty, Chief Financial Officer, FRP Holdings, Inc.: I think, Stephen, you had asked what % of the delinquency is vacancy. The delinquency would sort of get added on top of vacancy, and I want to say it’s probably in the 5% range. I can’t be exactly right. If you just added another 5% to our vacancy, that would kind of get you to our economic occupancy. There have been some legal changes in D.C. within the last six to nine months, basically a rental reform act that was put in place really to help landlords with a lot of these issues that we’re facing on the eviction cycle. We’ve heard that it’s starting to help, but it’s going to take some time to really see anything go from what’s taken us 15 months, maybe it’s now taking us 13, but it needs to be like three. We’ll see.

Stephen Farrell, Analyst, Oppenheimer: Okay. You have a lot of projects going on that are getting delivered this year. I just kind of want to run through them. The Altman JVs, how much construction there has been done? We’re expecting this summer for it to be ready. How much capital do you still need to put into that?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Just high level, all of our Florida assets are delivering this summer. I would say that is around, let’s just say 600,000 sq ft that’s delivering this summer. In terms of equity, all of our equity is in. All the additional capital is really being funded with our construction loans that we have.

Stephen Farrell, Analyst, Oppenheimer: Okay.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: All those projects are well underway. We’re very close to getting shell finals, and at this stage, focus is on marketing and leasing, and the dollars that we’re going to be spending are leasing dollars to get those things stabilized.

Stephen Farrell, Analyst, Oppenheimer: Mm-hmm.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Our two projects in New Jersey are very close as well, looking to be shell completion final this summer.

Stephen Farrell, Analyst, Oppenheimer: The Central Florida industrial, that’s going to be delivered this summer, too?

Matt McNulty, Chief Financial Officer, FRP Holdings, Inc.: A little later.

Stephen Farrell, Analyst, Oppenheimer: Four estimate? Okay.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Yeah. The answer is yes.

Matt McNulty, Chief Financial Officer, FRP Holdings, Inc.: Yeah. It’s a little later in the year on Cranberry.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: On Camp Lake, that’s right. That’s a little later in the year. Yes.

Matt McNulty, Chief Financial Officer, FRP Holdings, Inc.: Stephen, just to clarify, when we said Florida projects, he’s right, they’re all delivering. Camp Lake, Lakeland, and Davie, basically, we own either 100%, or in the case of Camp Lake, we own 95%. Those are long-term hold assets. The other project in Florida that came with the Altman acquisition is Delray, which is already delivered. We are a 10% partner in that, and the same with Hamilton and Parsippany. We’re roughly a 10% partner. Those are the merchant build and sell assets.

Stephen Farrell, Analyst, Oppenheimer: Okay. Got you. Just at Cranberry, is it Cranberry where we had the vacancy last year?

Matt McNulty, Chief Financial Officer, FRP Holdings, Inc.: Yes.

Stephen Farrell, Analyst, Oppenheimer: Did I miss that you’d signed the lease there?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: We did.

Matt McNulty, Chief Financial Officer, FRP Holdings, Inc.: Yes.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: We signed a lease for 15,000 sq ft, which is good news. We couldn’t share that news in 2025.

Stephen Farrell, Analyst, Oppenheimer: I’m sorry, I missed this part. What was the rate?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: I didn’t disclose the rate. I can tell you that the former tenant, compared to the new deal, the year one rate is 38% higher than the previous tenant.

Stephen Farrell, Analyst, Oppenheimer: Okay.

Matt McNulty, Chief Financial Officer, FRP Holdings, Inc.: Yeah. I think that’s the most exciting part about that is it indicates, one, where our rents were before and where they’re headed.

Stephen Farrell, Analyst, Oppenheimer: Do you have any concern over the length of time it’s taken to get someone in there? I know that you were dealing with an eviction and then any CapEx that you need to put into it to attract a new tenant. Does that give you any concern, though?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: It doesn’t. Again, as we enter 2026, and we’re kind of through, call it Q1, we’ve just seen increased activity, more tours, more proposals, better engagement across our markets. We’re just seeing a combination of improving market activity, and as Mark pointed out, I think we have much better internal execution, and that gives us a lot more confidence in leasing velocity through 2026.

Mark Levy, Chief Investment Officer, FRP Holdings, Inc.: Yeah. I would just add that it’s really not sort of a lack of demand. I just think that overall it’s a much more deliberate demand environment. The decision-making process typically is taking a little bit longer. For instance, for a larger, let’s say, publicly traded company, there’s more internal sign-offs that are now required. There’s just a higher level of focus being paid on things like labor adjacency and things like transportation costs, things like that. Obviously with some of the macroeconomic factors around price of oil, things like that sometimes drives into the discussion around transportation cost and how that factors into sort of their total sort of cost of occupancy, if you will. There’s just a variety of different elements that sort of fade in and fade out at different points.

Overall, holistically, tenant demand is much stronger and much more deliberate than it was in 2025.

Stephen Farrell, Analyst, Oppenheimer: Do you think that has any implications or effects on the Harford County development?

Mark Levy, Chief Investment Officer, FRP Holdings, Inc.: Well, one of the things that we have seen is that there is, for occupiers that are requiring a much larger space, call it spaces larger than 500,000 sq ft, there are very few entitled land options remaining really along the entire Eastern Seaboard. I think nationally there’s something under 60 entitled sites that can accommodate buildings of a million sq ft or larger. Ultimately, larger tenants who are now reactivating into the market after sort of being on the sidelines, for the last call it 24 months, are finding really a dearth of options. I think our positions in Harford County really will allow us to potentially entertain some of these larger requirements. Both our positions are located in markets that have very good labor pools, that can draw even from as far south as Baltimore City and Prince George’s County.

Ultimately, we’ve got, I think, a very strong positioning in the market. The sites are on the way to being fully entitled, and we’ve had some early constructive dialogue with a number of tenants regarding both our Crouse Phase two and our Mechanics Valley site.

Stephen Farrell, Analyst, Oppenheimer: Okay. That’s good to know. Just last one here, Woven and Estero, are those all fully funded, or do you need to put up more capital for the developments?

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: Woven and Estero are both in different stages. Woven, we actually are a lender in that, so we do have additional capital through a bridge loan with them, but all the equity is in for Woven. Estero, we have probably another $3 million of equity that we would put into that, and then after that, the construction debt’s there. It’s ready to go. Very minimal cash required for each of those.

Stephen Farrell, Analyst, Oppenheimer: Okay, thank you, guys.

Mark Levy, Chief Investment Officer, FRP Holdings, Inc.: Thanks, Stephen.

Conference Call Moderator: Thank you. Once again, everyone, if you have any questions or comments, please press star then one on your phone at this time. Please hold while we poll for questions. Thank you. That concludes our Q&A session. I’ll now hand the conference back to Chief Executive Officer John D. Baker III for closing remarks. Please go ahead.

John Baker III, Chief Executive Officer, FRP Holdings, Inc.: I just want to close by saying how excited we are about what the future holds for this company. What the Altman acquisition has done for this company in terms of expanding the options we have and how we choose to develop our pipeline and future assets, it’s the most exciting thing I’ve experienced since working here. When you couple that with the leasing activity we’ve seen this year, it’s a really heady cocktail. I really appreciate everyone on the call taking the time to be with us on a Friday afternoon, and as always, for your continued interest in the company. This concludes the call.