Good morning, and welcome to BrightSpire Capital's Second Quarter 2023 Earnings Conference Call. We will refer to BrightSpire Capital as BrightSpire BRSP or the company throughout this call. Speaking on the call today are the company's Chief Executive Officer, Mike Mazzei; President and Chief Operating Officer, Andy Witt; and Chief Financial Officer, Frank Saracino. Before I hand the call over, please note that on this call, certain information presented contains forward-looking statements. These statements, which are based on management's current expectations, are subject to risks, uncertainties and assumptions. Potential risks and uncertainties could cause the company's business and financial results to differ materially. For a discussion of risks that could affect our results, please see the Risk Factors section of our most recent 10-K and other risk factors and forward-looking statements in the company's current and periodic reports filed with the SEC from time to time. All information discussed on this call is as of today, August 2, 2023, and the company does not intend and undertakes no duty to update for future events or circumstances. In addition, certain financial information presented on this call represents non-GAAP financial measures. The company's earnings release and supplemental presentation, which was released this morning and is available on the company's website, presents reconciliations to the appropriate GAAP measures and an explanation of why the company believes such non-GAAP financial measures are useful to investors. Before I turn the call over to Mike, I will provide a brief recap on our results. The company reported second quarter 2023 GAAP net loss attributable to common stockholders of $7.5 million or $0.06 per share. In addition, the company reported second quarter 2023 distributable earnings of $21.1 million or $0.16 per share and adjusted distributable earnings of $32 million or $0.25 per share. The company also reported GAAP net book value of $10.16 per share and undepreciated book value of $11.53 per share as of June 30, 2023. With that, I would now like to turn the call over to Mike.

Thank you, David. Welcome to our second quarter earnings call, and thank you for joining us this morning. As David mentioned, we are pleased to report adjusted distributable earnings of $0.25 per share, while our dividend coverage continues to remain strong. Current liquidity as of today stands at $347 million, of which $182 million is unrestricted cash. During the quarter, we again reduced our overall leverage to 1.9x. This quarter, we recorded a $0.21 reduction in undepreciated book value, which currently stands at $11.53. This reduction was primarily driven by a net increase in our general CECL reserves in addition to a specific reserve on one office loan, which was already on our watchlist. Andy will provide more details in his section. As everyone is well aware, throughout the first half of 2023, unprecedented market conditions have pressured commercial real estate borrowers across the board regardless of property type. These trends are unlikely to ease until the Fed begins reducing short-term interest rates, which is now expected to occur sometime in 2024. With another interest rate hike just last week, the Fed is very near the end. However, given the current strong economy, the Fed will maintain a higher-for-longer interest rate policy while continuing to reduce its balance sheet. This remains the primary risk factor for the commercial real estate markets over the next 12 months. Regarding our portfolio, the overall performance of our underlying office properties during the quarter has remained steady. We have, in fact, upgraded the risk ratings for 2 office loans and moved them from our watchlist. This is the result of these borrowers making significant progress in their leasing plans. Given the increased focus on this property segment and in an effort to provide investors more information, we have included, in our second quarter supplement package, a description of our 5 largest office loans, which represents 35% of our office loan portfolio. Multifamily, which represents 52% of the portfolio, has remained resilient. We have experienced top line rent increases across the portfolio, which have exceeded our underwriting projections. However, all property types, including multifamily, have not been immune from the rapid rise in inflation and corresponding interest rate increases. In some cases, the positive impact of higher rental rates is being muted by rising operating expenses such as utilities, payroll and insurance. Additionally, in some select instances, we have seen increases in bad debt, primarily due to legacy tenant-friendly COVID policies in certain jurisdictions. Ultimately, we expect these conditions will improve in the coming quarters as we work with these borrowers to execute their value-add business plans. In the meantime, this quarter, we have identified and downgraded 3 multifamily loans from a 3 to a 4 to reflect specific circumstances of the property and/or the sponsor level. Importantly, all 3 of these loans as well as the entire multifamily book are current in debt service payments. As we look at the second half of the year, our focus remains on managing our portfolio while maintaining sufficient liquidity and lower leverage. We are, of course, eager to get back on offense and make new investments, especially as we expect many regional banks to shrink their balance sheets in the coming year. Last week's merger of 2 West Coast banks is a great example of this. This pullback by regional banks should create ample opportunities for private credit and nonbank lenders like BrightSpire. However, in the near term, protecting the balance sheet continues to remain job number one. With that, I would now like to turn the call over to our President, Andy Witt. Andy?

Thank you, Mike, and good morning, everyone. Throughout the second quarter, the BrightSpire team has remained focused on asset and portfolio management. We believe the combination of our vertically integrated and internally managed platform, including our rated special servicer, uniquely positions BrightSpire to navigate the current environment. None of our loan asset management functions are delegated to third parties. During the second quarter, we received $162 million in repayments across 2 investments in line with expectation. Included in the repayments for this quarter was the Berkeley Hotel loan for $148 million. Year-to-date, we have received approximately $263 million in loan repayments. And as previously highlighted, we expect loan repayment activity to remain relatively low for the remainder of this year. Our second quarter supplement now includes additional information on all our risk rated 4 and 5 loans or our watchlist loans. Our watchlist office loans were relatively consistent with what we reported to you in the first quarter. One office loan was added to our watchlist this quarter. And as Mike mentioned, 2 office loans were upgraded and removed from the watchlist. During the second quarter, we executed deed-in-lieu on 2 Long Island City loans in cooperation with our borrower and have taken full control of both office properties. We have engaged with a third-party property manager. Taking control of the properties has signaled to the market that ownership is now stable and well capitalized. This has resulted in renewed leasing interest, and we have already received unsolicited inquiries from prospective tenants. We believe the reset basis in these properties will allow us, as owners, to better compete for tenants and ultimately stabilize and exit the properties. In terms of updates, on the Washington, D.C. office loan, we anticipate taking control of the asset over the next few months, after which we anticipate commencing a marketing process for the property. During the second quarter, we placed the Oakland office loan on nonaccrual, increased the risk rating from a 4 to a 5 and recorded an $11 million specific CECL reserve. Additionally, subsequent to quarter end, we executed on a deed-in-lieu and have taken ownership of the property. Lastly, we continue to monitor the Oregon Office Park senior loan and have provided a detailed disclosure on these investments and others in our MD&A contained within the Q2 2023 Form 10-Q. With respect to the San Jose hotel property, last quarter, we noted that a sales process was underway for the hotel Annex tower comprised of 264 rooms. During the quarter, a buyer was selected and terms have been agreed to. The borrower anticipates the sale and corresponding pay down of our loan to occur in the third quarter. The loan remains risk rated 4. As of June 30, 2023, excluding cash and net assets on the balance sheet, the loan portfolio is comprised of 96 investments with an aggregate carrying value of $3.2 billion and the net book value of $917 million or 81% of the total investment portfolio. The average loan size is $33 million. Our weighted average risk rating is 3.1 and the loan portfolio has minimal future funding obligations, which stands at $226 million or 7% of outstanding commitments. First mortgage loans constitute 97% of our loan portfolio, of which 100% are floating rate and all of which have interest rate caps. The multifamily portion of our portfolio consists of 56 loans representing 52% of the loan portfolio or $1.7 billion of aggregate gross book value. Office comprises 32% of the loan portfolio consisting of $1 billion of aggregate gross book value across 31 loans with an average loan balance of $33 million. The remainder of our portfolio is comprised of 9% hospitality with industrial and mixed-use collateral making up the remainder. With that, I will turn the call over to Frank Saracino, our Chief Financial Officer, to elaborate on the second quarter results. Frank?

Thank you, Andy, and good morning, everyone. Before discussing our second quarter results, I want to mention that we expect to file our Form 10-Q later today. Our second quarter 2023 supplemental financial report is also available on the Investor Relations section of our website. For the second quarter, we reported adjusted distributable earnings of $32 million or $0.25 per share. Second quarter distributable earnings was $21.1 million or $0.16 per share. Distributable earnings includes an $11 million specific reserve on 1 loan. Additionally, for the second quarter, we reported total company GAAP net loss attributable to common stockholders of $7.5 million or $0.06 per share. The GAAP net loss reflects $29 million of total loan loss reserves, consisting of the $11 million specific reserve and $18 million of general loan reserves. Quarter-over-quarter, total company GAAP net book value decreased from $10.41 per share to $10.15 per share. Undepreciated book value also decreased from $11.74 per share to $11.53 per share. The decline is primarily driven by increases in our CECL reserves, partly offset by adjusted distributable earnings in excess of dividends declared. I would like to quickly bridge the second quarter adjusted distributable earnings of $0.25 versus the $0.27 recorded in the first quarter. The change is driven by loan repayments, loans placed on nonaccrual during the quarter and lower one-time loan modification income, offset by the impact of rising interest rates. Heading into 3Q, our adjusted distributable earnings quarterly run rate should remain around current levels. Turning to our dividend. For the second quarter, we declared a dividend of $0.20 per share, in line with the first quarter. Our dividend remains well covered at 1.25x. Looking at reserves and risk ranking. As Andy mentioned in his comments, during the second quarter, we took ownership of the 2 Long Island City office properties and placed the Oakland office loan on nonaccrual and recorded a specific reserve. This resulted in our second quarter specific CECL reserves decreasing by $57 million to $55 million. Our general CECL provision stands at $52 million, an increase of $18 million from the prior quarter. This increase in general CECL was primarily driven by economic conditions as well as specific inputs on certain office and multifamily properties. The combination of asset specific and general CECL reserves at second quarter end was $107.5 million or 312 basis points on loan commitment. As a reminder, these are point-in-time assessments that we evaluate each quarter. Looking at changes in risk rankings during the quarter. Our review resulted in 4 loans moving to our watchlist, comprising 3 multifamily loans and 1 office loan. We upgraded 5 loans during the quarter to a risk ranking of 3 and removed them from our watchlist. As Mike mentioned, 2 of them were office loans on properties located in San Francisco, California; and Baltimore, Maryland. The other 3 upgrades included the Milpitas mezz A, 1 hotel mezzanine loan and a construction loan. Altogether, our average loan portfolio risk ranking at the end of the second quarter was 3.1 compared to the first quarter's average of 3.2. Our 3 risk ranked 5 loans represent approximately 1% of the total loan portfolio carrying value, 7 loans equating to 14% of the total loan portfolio carrying value are risk ranked 4. While all risk ranked 4 loans are current performing loans, we are seeing potential for increased risk and accordingly, are closely monitoring these investments and working with sponsors to ensure the best possible outcomes. Moving to our balance sheet. Our total at share undepreciated assets stood at approximately $4.5 billion as of June 30, 2023. Our corporate leverage levels remain at the low end of the sector. Our debt-to-assets ratio is 63% and our debt-to-equity ratio was 1.9x, down quarter-over-quarter. This concludes our prepared remarks. And with that, let's open it up for questions.

And the first question comes from Sarah Barcomb with BTIG.

I was hoping if you could speak to how you think about giving loan modifications and extensions to help sponsors get to the other side of this rate hike cycle versus just removing those assets from the books, realizing a loss there, but getting some capital back now to allocate elsewhere. How do you think about that generally?

It's Mike. I'll start off with that, and Andy may add in as well. Generally, we prefer to work with our borrowers. When there is equity to protect, we expect borrowers to take action to address shortfalls. This could involve paying down the loan, which we have seen happen, or purchasing an interest rate cap, which is currently expensive and some borrowers are indeed doing, as well as covering interest rate shortfalls and building reserves. Occasionally, they request that we lower the criteria for extensions. Borrowers often think that if they're investing additional funds into the deal now, they want to ensure they have the option to withdraw that investment later and not be faced with high criteria for future extensions. Overall, we favor collaborating with our borrowers during this period. In many instances, all borrowers have stepped up, made capital calls to their limited partners, and addressed some shortfalls. Andy, do you have anything else to add?

No, Mike, I think you covered it. Really, at the end of the day, we're looking for a commitment from the sponsor of the borrower in the form of financial commitment or operational commitment. And with that, we're generally able to figure out a path forward. And so that's certainly path number 1. The alternative path is, as you outlined, Sarah, taking the asset back and subsequently addressing any issues with the asset and ultimately moving it off of our balance sheet.

Okay. I appreciate those comments. And as a follow-up, I was hoping you could talk about the extent to which you used cash to buy loans out of CLOs during Q2? And were any of those loans watchlisted? And could you just generally talk about liquidity needs coming from BrightSpire on loans that you're looking to delever in the coming months just given the expectations that you spoke to during the prepared remarks for lower repayments this year?

Okay. On that question about buying out of the CLO, we have Matt Heslin with us who runs our capital markets. Matt, why don't you give an update on what we did this quarter on the CLOs?

Sure. So thanks. In Q2, we bought out two loans from our 2019 CLO. One of those was in exchange, the other one was a cash purchase. So total loan balance that was removed was about $98 million. Total cash that was used to purchase those two out was about $77 million.

So the CLOs, despite being past the reinvestment period, allow for loan substitutions. We recently substituted a loan, which improved liquidity. Moving forward, we are focused on managing liquidity concerning potential defaults in the CLO. We need to be prepared for loan buyouts and closely monitor warehouse clients. We've previously discussed our watchlist policy, which aims to prevent surprises, especially when a loan transitions from a 3 to a 5 classification, indicating nonaccrual. We prefer to place loans on the watchlist as a precaution, and all loans added to the watchlist this quarter were current, allowing us to address any issues with borrowers. Similar to loans upgraded from the watchlist this quarter, we anticipate progress with these loans. In particular, we are currently in discussions about an Oregon loan rated as a 4, which has a reasonable chance of moving to a 5 next quarter. All loans currently classified in risk 4 are indeed current, and we are actively collaborating with the borrower of the San Jose hotel loan, which is also current. In our quarterly disclosures, we noted that a mezzanine class behind us was increased by about $4 million to assist with future debt service payments while the hotel works towards stabilization. Although part of the hotel is under contract for sale, positively affecting credit, we have maintained its risk rating at 4 until the sale is finalized, which we expect could occur in September or October. The owner is also exploring the possibility of selling the entire hotel. If this happens in Q4 or early Q1, the significant loan on our watchlist rated 4 could be impacted. We're closely monitoring this situation as the hotel has not yet reached stabilization. We are pleased with the new management in place and the protection provided by the mezzanine financing. Successfully selling part of the hotel or the entire property would greatly enhance our liquidity, as this loan has a leverage ratio under 50%.

And the next question comes from the line of Stephen Laws with Raymond James.

Appreciate all the details on each of these assets. Andy, I wanted to follow up on 2 that you mentioned. First, on the Long Island City office, you talked about the initial interest you're seeing now that you guys are in control. Can you talk about a timeline there? Kind of when you look to stabilize and sell the asset, kind of what metrics are you looking to achieve for stabilization?

I'm glad you brought that up, Steve. I'm closely involved in this matter daily. There is indeed one property, the Paragon building, that Andy mentioned regarding leasing inquiries. This building is quite special. I’m not suggesting our buildings are superior to those in New York; we understand the current office market conditions. However, this particular building stands out as it is located directly above a subway and rail station, and just a block away from a major subway line. We've received considerable interest in it. What we've observed is that during a short sale process, we're attracting lower bids because buyers perceive distress, which is understandable. Therefore, we believed it was essential to take these assets under our management, to show that they are in stable hands and to ensure that leasing brokers will receive their commissions. Now that we own these properties, we're beginning to see inquiries come in. For us to sell, we need to see some degree of stabilization, indicating leasing activity. If we have strong letters of intent from potential tenants and a tenant improvement program in place that demonstrates the property can cover its operating costs, that would decrease our negative cash flow. We also mentioned in our prepared remarks that the prolonged higher interest rates are impacting everything. If the Fed signals potential rate reductions, buyers will recognize a possibility for lower capital costs, which could enhance our leasing traction. At that point, we would be more inclined to sell. We prefer not to hold an asset until it is fully occupied and stable; we aim to recover our liquidity as soon as feasible. There will be a crossover moment where we can achieve the best value for the current asset state. We are encouraged that, now that we own it and have engaged a third-party manager, we are receiving incoming inquiries. However, I anticipate it will take a few quarters for the market to shift in our favor.

Great. And then similar on the Oakland asset was already deed-in-lieu in Q3. Is that one you're looking to sell quickly or is that one that will go through a similar process?

We hired a third-party manager. That asset is an older asset. We're very glad that it is a low balance asset. That's the silver lining on this. I don't have positive things to telegraph at this point in time, given that we just got control of the asset. I do think there needs to be some CapEx that goes into the asset that the owner neglected doing for obvious reasons, knowing that the asset was changing hands. So nothing really to report on that at this point.

Okay. Great. And lastly, any update on the Norway asset?

No. No update there.

And the next one comes from Matthew Howlett with B. Riley Securities.

First, I mean, congrats on continuing to delever and focus on liquidity. Just any update with the bank lending group and the dialogue? Is it still unclear and obviously a lot of availability under it. Just any update on the dialogue with the banks?

Yes. Matt, do you want to address that?

Yes. I mean, obviously, we've been working with our banking partners for a number of years here. Dialogue is very positive. As Mike mentioned, we've been working through some amendments, which involve sponsors putting cash in and buying new caps. So we obviously work very closely with our banking partners on all of those changes, assuming those loans are on the repo lines and they've been extremely supportive and in line, having a very similar view to what we have on those deals where seeing sponsors contribute equity and really step up and support the assets allows us to continue to finance them and the banks continue to finance us. So we're very aligned and conversations have been very positive to date.

Yes, they have been very constructive and supportive. This is likely the case with most of our peer group. As long as you provide them with complete transparency and establish credibility, which is essential for us, we are receiving their support.

That's great to hear. I know you have a lot of availability in low lines, and it's encouraging that they're collaborating with you on some of the portfolio. Second question...

Yes, Matt. I want to add that when we discuss liquidity, we refer to cash, and it's important to distinguish between availability and reinvestment on CLOs. Some of our peers claim they have liquidity due to under-leveraged assets with preapproval to increase leverage, which we consider a form of liquidity. However, simply stating we have capacity on our warehouse line, which amounts to $800 million, does not equate to liquidity. We define liquidity as cash on the balance sheet, available unused capacity on a revolver, or preapproved untapped capacity on a warehouse line. Currently, we have the ability to lend, with $800 million of capacity in our warehouse lines that we can utilize along with our available cash if we decide to take action soon.

I'm glad you mentioned that. You almost doubled the line, which gives you the ability to pursue a lot of interesting opportunities when you're ready to take action. It’s encouraging to know that they have been very supportive of you, and I'm pleased to hear that they are standing by you. Regarding my second question, Mike, have you made any progress with the state pension fund in Norway concerning the triple net lease property that you're looking to have renew and eventually refinance that debt?

No, the status of that has not changed. The tenant, which is the state oil company of Norway has until 2030 on that lease. As we say in the disclosures, the debt matures in 2025. We have the lease payments hedged. We were able to put on a 3-year hedge when we did it in 2021, that goes to May of 2024. But until we engage with that tenant to get a possible extension, the status quo has not changed.

Have you considered approaching them with an early extension offer that includes a discount, allowing you to refinance the debt and possibly sell the property? Is that a strategy you are exploring?

I've been to Norway. We've had face-to-face meetings, and I would say all of the above were put on the table. They have the benefit of being the state oil company of Norway. So they have a process that they go through, and we have to observe that process in terms of how they assess their real estate needs. We are in contact with them as frequently as we can be. We were told that they may have a decision in June. That's been postponed until September. So we are waiting for that. And again, if they'll invite us to go to Norway, we'd be more than glad to go. But all those options are on the table, absolutely.

Great. And then just one last question. Are there any signs of improvement in the commercial real estate market and transactions? Some of the REIT stocks have been recovering despite the negative headlines. Is it possible that the situation has been overestimated? Are you noticing any positive developments, Mike?

Generally, we prefer to focus on earnings based on earnings per share, especially with rising interest rates. We believe lower rates would be beneficial as they are currently a major risk factor for real estate, affecting all asset types, including office spaces with their unique challenges. We have noticed a significant reduction in the involvement of regional banks, which are numerous, as well as many community banks. It has been surprising to observe the level of commercial real estate activities across these banks, as it is difficult to track without market expertise. This reduction in bank activity is positive for non-banking entities and credit funds, given that there are many more community and regional banks compared to commercial mortgage REITs and debt funds. We believe this shift will present significant opportunities, and our origination team is actively exploring potential transactions. While we haven't finalized any deals yet, we see this as a promising development. However, we would like to see the Federal Reserve indicate a move towards lowering rates first.

And the next question comes from the line of Steve Delaney with JMP Securities.

Frank, in your remarks, I wrote in my notes that you said there were 3 risk rated risk ranked 5 loans. When I'm looking at Page 14, I see the 2 5-rated office loans, D.C. and Oakland, but I don't see a third 5-rated loan. Did I just hear that wrong?

No, there are three loans. You may recall last quarter, we reported on a property in Milpitas that was split into a mezzanine A and a mezzanine B, and we took a full reserve on the mezzanine B and that remains a risk ranked 5 loan.

Okay. It's just not in the presentation. Is that what you're saying?

Yes. That's right. It's written off and...

Yes, that's right. That's correct.

Okay. The exposure is off. Okay. Okay. Got you. That's helpful clarity. And then what were the issues? I noticed and Mike referred to this that you had 3, I believe, multifamily loans that you took to 4 and they're now on the watchlist. Is there any common theme there into what was going on with those properties and the operators that caused you to push those 3 multifamilies to a 4? It looks like they're all out West somewhere. I don't know if that's a common theme.

Yes. All those loans are current. Andy, do you want to answer this?

Sure, Mike. These loans are situated in different markets, each with its own unique circumstances. Generally, in the multifamily sector, to which our portfolio has about 52% exposure, performance has been strong. However, we are observing an increase in expenses. General and administrative costs are rising, and in certain markets, we are seeing higher property taxes, insurance, and utility costs at the municipal level. These are presenting challenges. Additionally, as Mike pointed out in his prepared remarks, we are experiencing an increase in bad debt for some properties due to the lenient policies established during COVID. This has affected borrowers' ability to resolve bad debt, take possession of certain units, and carry out necessary improvements, thus extending the period of negative cash flow. We reviewed these four investments and determined that they are not performing according to the business plan. However, as shown by this quarter's risk ranking changes, we have noticed positive movement in certain assets. We want to be transparent about these potential issues to avoid any surprises. Those are the main themes.

Yes, that's great color.

Steve, I will add that what we are seeing is we are seeing good rent growth. So on the top line, despite some of the headlines in our portfolio kind of on a same-store basis, we've seen year-over-year about a 6% increase. And so that's taking out the units that have been renovated. Those are obviously receiving much higher premiums. So we are continuing to see good rent growth.

Our next question comes from the line of Matthew Erdner with JonesTrading.

So with the expectation that the San Jose hotel loan pays off next quarter, say that goes through, would you be willing to originate at some of these higher yields to boost the overall coupon of the portfolio and kind of jump back into the market, test the waters and start originations again? And if so, do you guys have a current pipeline that you're looking at in areas that you'd want to target?

Thank you for the question. I want to clarify that regarding the San Jose hotel asset, one tower is under contract. There are two towers, and the second tower was built after the first. The second tower has been under a purchase and sale agreement since spring, and the buyer is a nonfinancial entity. We expect that to close around September or October, and the proceeds from this sale will be used to pay down the first mortgage. We believe the owner is considering options for selling the entire hotel, but we don’t have specifics to share at this moment as it is still very early. I want to make it clear that any deleveraging at this hotel would provide liquidity due to the low advance rate on it. To focus on our strategy moving forward, we are looking at two main aspects: our overall liquidity and the needs of our portfolio. As we gain more clarity in the next quarter or two on the liquidity required to protect the portfolio, that will be our main indicator for re-entering the market. This timing may coincide with the Federal Reserve indicating possible easing. By the end of the year, we believe our chances of being proactive are significantly improving, and we expect to have the necessary cash to do so. Our current leverage is 1.9x, making us one of the lowest levered mortgage REITs among our peers. In terms of opportunities, the pullback of regional banks will be substantial. It has been hard to gauge their activity given the numerous banks making loans in various regions, including banks we've never heard of lending far outside their usual areas. We see these changes leading to significant opportunities. With our current exposure to the office sector and the current office market conditions, we will be very selective in that area. However, we are open to opportunities in multifamily, hotel, industrial, and other property types, including construction loans, as regional banks have been heavily involved in construction financing. We believe there will be valuable selective opportunities for construction loans, which are needed. For the market to begin moving again, we need to see both the regional banks pull back on the supply side and an increase in demand for credit. This demand is unlikely to materialize until assets begin trading and short-term rates start to decrease.

There are no further questions at this time. I'd now like to turn the floor back over to Michael for any closing comments.

Great. Well, thank you all for joining us today. Please, as always, feel free to reach out and contact us if you'd like to have a one-on-one meeting, and we'll try to accommodate. Until then, we'll see you in the third quarter call in November, and have a great rest of summer. Thank you.

Ladies and gentlemen, that does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.