American Assets Trust, Inc. (AAT) Q3 2026 Earnings Report, Transcript and Summary

Good morning. And welcome to the American Assets Trust Inc. Third Quarter 26 Earnings Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. I would now like to turn the call over to Meleana Leaverton, associate general counsel of American Assets Trust. Please go ahead.

Thank you, and good morning. The statements made on this earnings call include forward looking statements based on current expectations. The statements are subject to risks and uncertainties discussed in the company's filings with the SEC. You are cautioned not to place undue reliance on these forward looking statements as actual events could cause the company's results to differ materially from these forward looking statements. Yesterday afternoon, American Assets Trust's earnings release and supplemental information were furnished to the SEC on Form 8-K. Both are now available on the Investors section of its website, americanassetstrust.com. It is now my pleasure to turn the call over to Adam Wyll, President and CEO of American Asset Trust.

Good morning, everyone, and thank you for joining us today. We delivered a solid quarter at American Assets Trust with encouraging operating results and continued progress on leasing across our portfolio. That performance came against a less predictable economic backdrop. With long term interest rates moving meaningfully higher and inflation proving more persistent than many had expected. Despite these headwinds, the quarter demonstrated the durability of our high quality coastal real estate and the strength of our vertically integrated operating platform. Periods like this reward patience and discipline in our approach of measured decisions, allocating capital thoughtfully, and maintaining a long term perspective continues to serve us well. For the third quarter, we generated $0.56 of FFO per diluted share approximately $5 ahead of our internal projections. Portfolio wide same store cash NOI increased 8.3% for the quarter and is up 2.3% year to date. Quarterly growth was positive across all 4 operating segments with the results benefiting in part from certain 1 time items, primarily property tax refunds, in the collection of a previously reserved office receivable. Exclude those items, same store cash NOI growth was 5.1%. Based on these results and our outlook for the balance of the year, we are raising our full year 2026 FFO guidance to $2.07 per share at the midpoint a 2% increase from our prior midpoint. Before turning to the portfolio, a word on the macro environment. Persistent inflation continues to put upward pressure on interest rates, affecting real estate owners through borrowing costs asset values, and transaction activity. We are no exception. Todd, all of our debt is fixed rate or swapped to fixed with no maturities until March 2027. However, as we refinance that maturity, and our term loan swap expires in January, we expect our borrowing cost to increase and will reflect that in our 2027 outlook in February. We have ample liquidity and multiple avenues to address the maturity, allowing us to be deliberate about timing and execution. At the same time, the underlying fundamentals of our real estate remain healthy, New construction starts across our property types are at or near historic lows, in many of our markets. And higher financing and construction costs make new development even harder to justify. That reinforces the long term value of our coastal assets. And while inflation pressures operating costs, contractual rent escalations expense recoveries, and more frequent repricing in our multifamily, hotel businesses help us offset those pressures. Turning to portfolio updates. Office touring and prospect activity held up well across our markets, particularly for well located amenitized buildings backed by financially strong ownership. That is where we compete. Larger leasing decisions can still take time, but our pipeline remains healthy, And so far, we have not seen the move in rates materially affect tenant decision making. The fundamentals continue to vary by market. UTC and Del Mar Heights are among San Diego's most sought after office submarkets. With very limited new competitive supply. San Francisco is benefiting from a more active technology and AI tenant base with growing demand for quality space. Bellevue is showing improving conditions in its best locations and Portland remains more selective, but we continue to win more than our fair share of deals. Across all 4 markets, leasing activity has been steady, we are seeing consistent tenant interest in our properties. Our office portfolio ended the quarter approximately 86% leased. Up nearly 400 basis points from a year ago and 140 basis points sequentially. During Q3, we completed approximately 124 thousand square feet of leasing with comparable cash rent spreads of 2.1% and straight line spreads of 8.2%. We entered the fourth quarter with approximately 210 thousand square feet of executed leases representing about 12 million in annualized base rent that has not yet commenced. Additionally, we have another 132 thousand square feet in lease documentation and proposals outstanding on approximately 178 thousand square feet. Our focus is on getting those signed leases paying rent while continuing to convert our pipeline into executed leases. Our spec suite program is an important part of that leasing effort. Tenants increasingly want high quality move-in ready space our ability to deliver it helps shorten the leasing cycle. Since the beginning of 2024, 42% of our spec suite square footage has been preleased before construction was finished. More than 50% has leased within 3 months of completing construction, and more than 75% within 6 months. We will take that batting average. At La Jolla Commons Tower III, we are out for as of this morning for 2 full floors totaling approximately 41 thousand square feet with a high credit quality prospective tenant. We are also in documentation for an additional 3.6 thousand square feet on another floor. Assuming both leases are executed, the building would be approximately 72% leased. We expect to finalize both leases in the near future This reflects the type of tenant demand we anticipated when we developed Tower III With few competing large blocks of quality space in UTC, we like our positioning for the remaining space. At 1 Beach Street in San Francisco, we are exchanging proposals on the remaining space on the 2nd Floor. If completed, that transaction would bring the property to 82% leased. The building's waterfront setting distinctive character, and quality have resonated with prospects. The spec suites we built on the 1st And 2nd Floor are doing exactly what we hoped. Helping convert touring activity into active proposal negotiations. In the North Waterfront submarket, home to 1 Beach Street, vacancy is roughly 19%. Well below the citywide rate of nearly 28%. Taken together, these negotiations represent meaningful progress towards stabilizing 2 of our most significant office investments. To be clear, these transactions are not yet executed and remain subject to completion. Assuming they are completed as currently contemplated along with our other expected leasing activity, we now anticipate ending 2026 between approximately 84% to 86% leased across our office portfolio. The next step is getting these transactions finalized and converting our broader leasing activity into commenced rent and cash flow. Our retail portfolio continues to perform well, ending Q3 at 98% leased consistent with the high occupancy levels we have sustained over time. With limited new retail construction, healthy demand for well located space, and our exposure to affluent established trade areas, we like the positioning of this portfolio. During the quarter, we executed approximately 108 thousand square feet of leases with comparable cash spreads of 7.4% straight line spreads of 16.8%. Tenant health is strong. Our watch list is short, our leasing teams are pursuing opportunities to improve tenant mix and grow rent as space turns over. Although we are watching the consumer closely, particularly as inflation and higher interest rates affect household budgets, These properties are important locations for our tenants, dependable sources of cash flow for AAT. As it relates to multifamily in San Diego, market wide vacancy has begun to move lower and rent growth has returned to positive territory. Encouraging signs following an extended period of new deliveries. Excluding the RV park, our San Diego communities ended the quarter 97% leased and 95% occupied. With both renewal rents and new lease rents increasing 4% during Q3. Notably, Pacific Ridge rebounded from its seasonal summer turnover ending Q3 nearly 97% occupied compared to 77% at the end of Q2, and 92% a year ago. In Portland, Hasselow and Eighth operates in a competitive urban apartment market. Although recent market data also points to improving absorption and a slowing construction pipeline. Hasselow ended the quarter 92% leased and 91% occupied, with flat blended rent growth. In both markets, teams are focused on occupancy retention and capturing improved rent growth as conditions normalize. it is worth mentioning that both our retail and multifamily portfolios achieved record average rental rates during the quarter. At Waikiki Beach Walk, our Embassy Suites Hotel performed better than we had anticipated for the quarter, even as Oahu works through a softer tourism environment. Visitor demand is uneven, and rate competition is still a factor, particularly for more value conscious travelers We are managing the hotel carefully, focusing on rate integrity, occupancy, and expense control. The retail component of Waikiki Beach Walk provides stability in our fee simple ownership of this irreplaceable asset remains a meaningful advantage. For Q3, hotel RevPAR was 13% above last year, driven by occupancy while average daily rate held steady. Before wrapping up, a few comments on capital allocation, starting with our dividend. Our Board has declared a quarterly dividend of $0.34 per share, payable on December 17 to shareholders of record as of December 10. Our dividend payout ratio was elevated in the third quarter in part due to a large tenant improvement reimbursement tied to an office lease signed several years ago. Much of our current office capital spending is concentrated in 2 areas. Our spec suite program and tenant improvements on signed leases. Both support our leasing efforts and future rental income. We have also substantially completed our office amenity investments which reduces our remaining capital commitments in that area. As that spending moderates, and recently signed leases begin paying cash rent, we expect dividend coverage to improve gradually. Our board continues to monitor the payout ratio closely. On external growth, we continue to evaluate an underwrite potential acquisitions as well as opportunities to recycle capital from existing assets. Higher rates may create more opportunities as owners work through debt maturities, although we have not yet seen transaction pricing fully adjust to the higher cost of capital. Our bar remains high, and any investment must offer compelling adjusted returns and strengthen our portfolio over the long term. We have no need to force a transaction simply to get bigger. In closing, I am encouraged by what we accomplished this quarter and the opportunities we have ahead of us. We exceeded our projections, raised our full year guidance and advanced significant office leasing activity that if finalized, will put 2 of our major office investments meaningfully closer to stabilization. Our focus now is on converting that leasing momentum into cash flow, while maintaining the operating and financial discipline that has served us well across cycles. I want to thank our entire team for their hard work and execution this quarter. With that, I will turn the call over to Bob to review our financial results and updated outlook in more detail.

Adam, and good morning, everyone. Yesterday afternoon, we reported third quarter 26 FFO of $0.56 per diluted share. Net income attributable to common stockholders of $0.13 per diluted share. Excluding the onetime items Adam discussed earlier, primarily property tax refunds and the collection of a previously reserved office receivable. FFO would have been $0.53 per diluted share. FFO increased $0.05 per diluted share compared to the second quarter driven primarily by 4 items. Approximately $0.02 per share from the collection of a previously reserved office receivable at Coastal Collection at Torrey Reserve. Approximately $0.01 per share from property tax refunds at Waikele Center, and Hassalo on Eighth. Approximately $0.01 per share of outperformance from Embassy Suites at Waikiki Beach Walk. And approximately $0.01 per share from lower G&A. Turning to same store cash NOI. The portfolio wide results were strong. Same store cash NOI increased 8.3% year over year. Excluding onetime items, growth was 5.1%. This distinction is important. The 8.3% reflects the reported results including the benefit of onetime items. While the 5.1% provides a clearer view of underlying operating performance. Let me briefly walk through the results by segment. For office, same-store cash NOI increased 7.9%. Excluding the collection of the previously reserved office receivable, and the real estate tax refunds, growth would have been 4.8% primarily reflecting higher base rent from recently commenced leases. Retail same store cash NOI increased 9.6%. Excluding real estate tax refunds, growth would have been 6.3% driven by higher expense reimbursements at Alameda Towne Center higher base rents from new leases and tenant expansions at Alameda Towne Center, Loma Santa Fe, and Gateway Marketplace, and lower rental expenses at Carmel Mountain Plaza. Multifamily same store cash NOI increased 10.2% or 10.8% excluding the RV park. Excluding real estate tax refunds, growth would have been 4.9%. Primarily reflecting stronger performance income at Pacific Ridge and Imperial Beach Gardens. And mixed use same store cash NOI increased 3.9% Embassy Suites at Waikiki Beach Walk performed well with hotel NOI increasing to approximately $3.1 million from $2.6 million a year ago. The hotel's performance was partially offset by lower NOI in the retail portion of the property. Primarily because a bad debt collection in the prior year quarter did not recur. At Embassy Suites, occupancy increased to 88.5% from 78.3% a year ago. RevPAR increased 13.3% to $337 while ADR increased 0.2% to $381. Overall, our same store portfolio continued to demonstrate solid operating performance with growth supported by leasing activity, rental income, and expense management, supplemented by onetime items. Turning to our balance sheet and liquidity, we ended the quarter with approximately $590 million of total liquidity. Consisting of $90 million in cash, and $500 million available under our revolving credit facility. Net debt to EBITDA was 6.4 times on quarterly annualized basis and 6.9 times on a trailing 12 month basis. Our long term target remains 5.5x or below. Our interest coverage ratio and fixed charge coverage ratio were 3.3 times on a quarterly annualized basis and 3.1 times on a trailing 12. Month basis. Turning to guidance, we are increasing our full year 26 FFO guidance range to $2.04 to $2.10 per diluted share with a midpoint of $2.07. This compares with our previously issued range of $1.96 to $2.10 with a midpoint of $2.03. The increase represents approximately 2% growth at the midpoint. Our outlook reflects continued momentum across our core sectors, supported by leasing activity, contractual rent increases, disciplined operating expense management, the collection of a previously reserved office receivable, and real estate tax refunds. Our guidance assumes a stable operating environment continued tenant demand, and a prudent approach to risk management. While our guidance represents our best estimate, based on the information available today, We believe there is potential to perform toward the upper end of the range if several favorable developments occur. First, the majority of retail tenants for whom we have established credit reserves must continue to meet their rent obligations. As of the third quarter, approximately half a penny per share of FFO was reserved for tenants considered at risk. Based on a probability weighted approach. Second, our multifamily segment would need to outperform expectations through improved occupancy. Continued rent growth, or better than expected expense management. Third, Embassy Suites would need to deliver stronger results. We remain cautiously optimistic about the potential for domestic and international travel to improve. We will continue to monitor these factors closely as the year progresses. As a reminder, our guidance excludes the impact of future acquisitions, dispositions, equity issuances or repurchases, and debt refinancing or repayments except for those already disclosed. We remain committed to transparency and will continue to provide clear insight into our quarterly results and the key assumptions underlying our outlook. Finally, the non GAAP financial measures discussed today including NOI, are reconciled to the most directly comparable GAAP measures in our earnings release and supplemental materials. With that, I will turn the call back over to the operator for questions.

We will now begin the question and answer session. At this time, we will pause momentarily to assemble our roster. Our first question comes from Todd Thomas with KeyBanc Capital Markets.

Hi. Thanks. Good morning. Adam, the leasing pipelines that you discussed, I think it was about 132 thousand in lease documentation maybe proposals that are out. For another 178 thousand square feet that included, some of the leasing at La Jolla and 1 Beach. what is your confidence level around getting those leases executed? And then any change in urgency for tenants to execute leases here over the last several months? And how are the rents relative to what you know, were initially underwriting?

Yeah. Sure. So, Todd, on the leases we discussed for La Jolla Commons, and I will have Steve supplement this also, we are fairly confident that we are gonna get those executed here in short order, if not in the next few days. The 1 Beach proposals that we mentioned, you know, I think we. We are we are fairly confident, but we do not wanna get over our skis on that 1 until we have lease documentation going out. But there is meaningful interest, particularly now that the spec suite is completed. there is been a heightened tours and proposal activity over there. So as for whether we get all that done this year, I think that is kind of the focus, obviously, and we are relatively optimistic we will get it done. If we get all of that done, we are gonna obviously trend towards the higher end. Of our lease percentage range that I gave, which was 84 to 86, keeping in mind that Genentech space, which is, call it, 70 thousand or so square feet moves out at the end of this month. So we are gonna kinda recapture some of that lost square footage and maybe even a little better. But, of course, as you know, Todd, we are a little bit more conservative on this stuff. So we wanna give you guys a range so we can underperform. With respect to the timing of these deals happening, like I said, sometimes these things take a little bit longer right now to get the deals done, particularly the larger square footage deals. And with sophisticated high credit tenants, they have got their legal teams and their business team So we are seeing kind of a longer lead time to get deals cut than we used to. But we are not losing deals during that process. Steve, you wanna layer on to that?

Yeah. Todd, you would ask about the rents. At La Jolla Commons Tower III we are we are in our range. Including, the yield that we expected. So we are we are doing well in that regard. And at 1 Beach, I think we are exceeding our expectations, frankly, in terms of where the rents are coming in. So, we are doing what we thought we would do.

Okay. that is helpful. On the current lease, pipeline that has not yet commenced, so the $12 million of annualized office rent, The new the new property level disclosure is helpful, by the way. But I am just curious if you can talk about sort of the timing and the schedule for that to come online through 2027. And are there any major remaining conditions before those tenants begin paying rent?

So. Sure. So on the signed but not commenced numbers that I gave Todd, 35% of it will commence in Q4 of this year. So that is to say this quarter, this upcoming Q4. And about 60% of that number is gonna start in the first half of next year, front loaded more so in Q1 and the remainder through the end of the year. A little bit bleeds into 2028. As for the conditions, know, a lot of this is either, landlord build where we control and we are very confident in our timing and ability to deliver the space. Or tenant build where it is a set commencement date anyway. So we do not think there is gonna be any conditions that cause any of these commencement dates to slip.

Okay. And then, on the Genentech move out, just how are conversations there around back selling? Any update there that you can share?

Not backfilling those 3 floors, but we have got really positive activity at 1st And Main right now and so. And we also closed a 17 thousand foot lease in our 710 renovation. So overall, we are doing really well in Portland. Genentech, no prospects yet. Like, again, we have got really good tenant activity at First and Main. Okay.

Alright. Thank you.

Thanks, Scott.

Our next question comes from Haendel St. Juste with KeyBanc Capital Markets.

Hi there. This is, Ravi on the line for Haendel. From Mizuho, not KeyBanc. But just wanted to ask here about the change in guide. Large increase at the low end of the guide. Can we just do a before and after comparison and what was embedded? What were some of assumptions for the prior low end of the guide that is no longer the case as you think about 2026?

So, Ravi you are asking. Say that again. I just wanted to understand some of the moving parts that drove the lift in the guidance. Okay. Well, I mean, you saw in Q3, we had 4 or 5¢ of outperformance, and a few cents of that related to property tax refunds that will not be recurring in Q4. And we had a collection of a previously reserved office receivable that was probably a penny and change. So the operating outperformance outside of that, there would be more would probably be maybe a penny, penny and 0.5. So if you kinda triangulate our midpoint based on where we are year to date, that insinuates 50¢ or so of a Q4 FFO. And that is where we get to the midpoint. Do we think we are gonna underperform that? I mean, it is highly unlikely absent something happening that is highly unexpected at this point. More likely than not, have the ability to outperform that number, Ravi by either collecting our reserved tenants on the bad debt side or outperformance on multifamily, which happens seasonally in Q4 for us often, or if the hotel outperforms better than expected and the visibility in the hotel is a little bit more challenged now than it used to be with bookings happening a little bit closer to their occupancy. So kind of a long winded way of saying we do not expect to miss the midpoint I think best bet is that we have a good chance to beat it, but we will see how it plays out. Bob, do you have anything to supplement on No.

I think you nailed it on that.

Ravi do you have any other questions on that?

No. That was that was very helpful. I wanted to ask about the snow pipeline, and I know you touched about it earlier with Todd's question. But maybe if you guys add commentary regarding the growth inflection in the core headed into 2027 and 2028 as those signed leases come online. Particularly across your office portfolio?

Yeah. So we are we are not really looking to provide any guidance on what next year is going to look like, Ravi I mean, that is snow pipeline that you mentioned is in the supplemental and kind of breaks it down by quarterly expected commitment date. So we would say to kind of bank on that, and as we come back to you guys early next year, we will have had a couple more months of, hopefully, really positive sustained leasing activity be able to come back at you with we are seeing our same store growth on the office and every other sector and where we are looking to end next year. If you look at our top 10 list, you will see there is a couple expirations on the office side coming towards the end of 27. Most of that will be collected throughout next year, and then we have got some work to do to either back fill that or extend those folks. But not otherwise in a position to tell you where the trajectory or momentum will be for next year.

Got it. Understood. And maybe just 1 here on Embassy Suites. Occupancy increased pretty dramatically on a year over year basis, close to thousand bips seems like, and rate was fairly flat. Also seems the Japanese tourist Japanese tourist is still fairly sidelined. Can you please help us reconcile what drove the occupancy increase for the hotel?

Ravi's asking what the. What drove the occupancy increase at the hotel. Hit that 1?

Well, for Q3, Ravi I mean, typically, during Q3, we are up $0.02 of FFO just related to the Embassy Suites. And then in Q4, historically, we are down. A penny, penny and 0.5 on that. So there is nothing specific other than people are coming to visit it during the third quarter.

Got it.

The reality the reality is, Ravi just so you know, there was some hotels were down for renovation, so there was the ability to grab incremental occupancy even though rates stayed flat, we were able to grab some more room nights, and that obviously played through into our earnings. Whether that is sustainable or not, we will see through the end of this year but we are gonna grab whatever occupancy we can.

Got it. Thank you. Appreciate the color, guys. Sure.

Our next question comes from Ronald Kamdem with Morgan Stanley.

Great. Couple quick ones for me. Just starting with the retail portfolio, it looked pretty full. Right? 98 plus percent occupied. Occupancy. I guess just curious of how you guys are thinking about sort of the pricing dynamics and the ability to sort of drive same store higher in that portfolio. Just from a high level. Thanks.

Yeah. I will kick it off and then turn it over to our retail guy. But, obviously, when we are at 98% leased, that is kinda telling us that there is a lot of demand for the spaces we have in our properties. And as lease leases roll, we are pushing rents as much as we can, Ron, Many instances, if a space goes vacant on us, there is numerous retailers that wanna get in and kind of compete for the tenant mix, and we are selective on who we wanna put into these properties. Obviously, where inflation is and rates are, we are not looking to go downward in rate. Generally speaking, if you look at our spreads over the past many quarters, even if you look at the past 3 or 4 or 5 years, we seem to have positive spreads more times up than not. And I think that is indicative of the quality and the location of these assets. But, of course, there is also the mom and pop guys. Some may fall through, and they are paying high rents, and you may need to backfill with someone that has a little bit more credit, that is not gonna pay as much. But. So we are we are trying to balance between credit and rate. and of course, occupancy. So, Sully, do you have anything to add to that?

I think you have answered the question perfectly. there is nothing I can add to that.

Okay.

We will we will do our best. Of course, you know, we are greedy. Ron, and we are gonna grab as much cash as we can from these tenants within reason. That they can still sustain their business and have proper occupancy costs.

Great. And then on the office side, if. I guess, if I could ask a 2 parter. 1 is just you know, obviously, we have talked about La Jolla Commons and 1 Beach. Besides those 2 properties, where do you think is sort of the most obvious lift in vacancy that you could sort of tackle to get the occupancy higher. And then would love an update on your thoughts on capital recycling at this point in the portfolio about what you could sell or if you are interested in buying anything? Thanks.

Let me let me hit the first 1 and then see if you can supplement that. I think you have heard Bob mention in the past, Ron, that we have 30¢ or so of incremental FFO from our redevelopment properties. that is La Jolla Commons 1 and also our suburban Bellevue portfolio. So if you were to ask me where the biggest lift is, it is in that portfolio, the suburban Bellevue 1. Of the 30¢ of incremental FFO potential and assuming some of these deals get inked that I mentioned in my script, we would probably be probably at about 20% in place, and 10¢ speculative, and most of that speculative is gonna come out of 14 acres in Bellevue and Timber Springs in Bellevue. Which have gone through renovation and are. We were just up there a week or 2 ago These are beautiful assets, and we think there is gonna be some overflow from Downtown Bellevue, which has been really crushing it lately. Steve, you wanna layer on to that?

In terms of the markets, we are we are seeing good results across all 4. San Diego's. By square footage, San Diego's the biggest, but it is also our biggest portfolio. San Francisco, with those spec suites completed, we expect to lease the rest of 1 Beach. We have got some good traction in Portland as I alluded to earlier, and then Bellevue's first of all, our tower in City Center Bellevue is 9. Over 95% leased. We do have some rollover, but we got great activity there behind it. And then we are making some gains Right now, the I 520 Corridor has gotten more active, so we have got multiple proposals going on up there. And I 90 is still the laggard, but you know, it is interesting. We have leased 35% of that asset since the beginning of 25. We have just had some unexpected losses due to business shutdowns that really negated that. So that is been active as well. We have been winning more than our fair share of deals in that submarket too. So you see gains across all, say, San Diego, number 1, San Francisco, number 2, Portland, number 3, and Bellevue. Way last just because when our tower is nearly full.

Great. And then thoughts on capital recycling here?

Yeah. So, you know, we regularly ask ourselves whether we are the best long term owner of each asset we own, and whether that capital could earn a better return elsewhere. So if we can achieve attractive pricing and use the proceeds to improve the balance sheet, or earn a better return elsewhere, we are we are all on board with that. But we have to look at the full economics too, and that includes taxes and transaction costs and the cash flow we would give up Joint ventures and partnerships can be alternatives to an outright sale. But our objective, Ron, is to improve our long term value per share We will be patient until the economics support that. And on the recycling side, you know, there is a few assets that we would consider disposing of, but they are still a part of our core portfolio. So it is going to be very compelling. And whether that is the hotel or the RV park, or maybe our retail property up in Walnut Creek. These are alternatives for us to recycle out of. But when you have great assets, we gotta be right on both sides of the equation. To make sense of it. And we have taken a run at a couple, but we have not won. We are not gonna get over our skis, like I said earlier. So see how it plays out. We are not gonna force it.

Helpful. Thanks so much.

Thanks.

This concludes our question and answer session. I would like to turn the conference back over to Adam Wyll for any closing remarks.

Well, we appreciate everyone's time and listening to our call today and your support. It means a lot to us. We hope everyone has a great week. And we will talk to you in a few months. Cheers.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.