Hello. My name is Jeannie and I will be your conference operator today. I would like to welcome you to the Farmland Partners, Inc. Q4 and Fiscal Year 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. I would now like to turn the call over to Luca Fabbri, President and CEO. You may begin your conference.

Thanks, Jeannie. Good morning and welcome to Farmland Partners full year 2023 earnings conference call and webcast. We truly appreciate your taking the time to join us for these calls, because we see them as a very important opportunity to share with you our thinking and our strategy in a less formal and more interactive than public filings and press releases. I will now turn over the call to our General Counsel, Christine Garrison for some customary preliminary remarks. Christine?

Thank you, Luca and thank you to everyone on the call. The press release announcing our fourth quarter earnings was distributed after market closed yesterday. The supplemental package has been posted to the Investor Relations section of our website under the sub-header Events and Presentations. For those who listen to the recording of this presentation, we remind you that the remarks made herein are as of today February 29, 2024 and will not be updated subsequent to this call. During this call, we will make forward-looking statements including statements related to the future performance of our portfolio, our identified and potential acquisitions and dispositions, impact of acquisitions dispositions and financing activities, business development opportunities, as well as comments on our outlook for our business rents and the broader agricultural markets. We will also discuss certain non-GAAP financial measures including net operating income, FFO, adjusted FFO, EBITDAre and adjusted EBITDAre. Definitions of these non-GAAP measures, as well as reconciliations to the most comparable GAAP measures are included in the company's press release announcing full year 2023 earnings, which is available on our website at farmlandpartners.com and is furnished as an exhibit to our current report on Form 8-K dated February 28, 2024. Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations and we advise listeners to review the risk factors discussed in our press release distributed yesterday and in documents we have filed with or furnished to the SEC. I would now like to turn the call to our Executive Chairman, Paul Pittman. Paul?

Thank you, Christine. So I'm going to make four or five very general comments and points about the company before I turn it over to Luca and James to go into more detail. So the first point is we continue to be significantly undervalued comparing ourselves to the underlying asset value of the portfolio. Land values across the country have continued to go up in the grain producing regions of the country; the growth rate slowed some in 2023. We think that rate will slow yet again in 2024, but that needs to be taken in the context of the prior years. In 2021 and 2022, we saw rapid appreciation in farmland values, which we have probably ever seen in history in the grain-growing regions of the country. That can't go on forever. So, we will see a sort of flattening or plateauing in my opinion as we move into 2024. But what that has led us to, and this is an overwhelmingly row crop-oriented portfolio, is there is a huge disconnect between the market value of our land in the private markets and the public company trading value of our common stock. As many of you know, I bought a significant amount of stock personally last year. The company bought back a lot of stock. We're likely to continue that effort as long as that gap continues. Turning for a moment to specialty crops. We are now in the second year of reasonably strong rainfall on the West Coast of the United States, particularly in California. That will help the water situation and that will help the yield situation. We believe that we will have pretty strong crops in those markets this year, although we continue to face price pressure due to over-planting of many of those commodities across the world. Turning to the third point I want to make, which is about cost cutting. Despite what I said about the gap between our underlying asset value and the stock price, we are valued in many ways on AFFO. I frankly think that's incorrect as it relates to our company, but that's how REITs are valued. So, we must drive AFFO higher and we're working quite hard to do that. We have embarked over the last 12 months or so on an aggressive cost-cutting effort and we're going to continue that effort into 2024. That cost cutting is coming from selective staff reductions, cutting our travel costs, reducing the size of our Board which is always a challenging thing to do, but we have done it. I am going to take a $500,000 compensation cut in the 2024 year. That's 25% of the compensation I received for 2023 and Luca is going to stay flat in his compensation. These steps are really required to try to drive AFFO higher. As a major shareholder, I think like an owner, not an employee, and we are going to get this stock price higher, which requires increasing AFFO. Just to put that cost-cutting effort in context, if you look back to 2022 for G&A and legal and accounting in our financials, we spent approximately $14.9 million on those two line items in 2022. For projections, those two line items add up to 11.9%. That's a 20% reduction in just a couple of years and there will be more to come. Turning now to the sales program of the company in 2023 and what that might look like in 2024. During the 2023 year, we've made many asset sales and others will address this in more detail, so I won't go into it here. But the focus of those asset sales was to unload properties that we think had significant water challenges. This is why we exited so much of our Eastern Colorado portfolio to get rid of properties we do not think were appreciating rapidly and to get rid of properties that are very difficult to manage. We will continue on those themes in the 2024 year. There will be materially less asset sales in 2024 than they were in 2023 largely driven by tax rules. We're limited this year to probably around seven transactions and then any 1031s we do on top of that. So, expect sales this year of assets but don't expect the same quantity as last year. We want to continue to simplify the portfolio as we do this. That does make the cost reductions easier on the G&A line. It also lowers our property operating expenses. In terms of the use of the proceeds from those asset sales, some of that money will be recycled into the regions and the markets we like the most, which are generally the grain-growing regions of the country. Some of that money will be used for debt reduction and some of that money will be used for stock buybacks. As far as interest cost is concerned, our perspective is those savings are going to come to us eventually. We don't know exactly when, but I think we are at the beginning of a rate reduction cycle instead of a rate increase cycle. So, when we have excess cash we need to think very carefully about whether to take the near-term jolt of debt reduction, knowing that if you just wait you're going to get an interest cost reduction anyway, or do we gain the $4 or $5 or maybe even $6 a share that comes from buying back our stock at such deeply discounted levels. So, that's the trade-off we have to consider. Looking into 2024, if I had a crystal ball, this is what I think that crystal ball would say. I think we'll see in 2024 on the specialty crops, slightly better yields and prices than we have had in recent years. That is largely due on the yield side to two years of rainfall has solved a lot of agronomic problems and will help those crops. On the price side, I think we'll see a modest recovery, just looking at what's going on in pricing right now. On the row crop side of the portfolio, we have fixed cash rents, so the underlying farm performance won't directly affect us, but we always care about the profitability of our tenants. You're going to see somewhat lower grain prices than you've seen in recent years, probably reasonably strong yields, but we've seen that cycle over and over again. We are heading into a slightly lower commodity price cycle for a couple of years. It will slow the appreciation of farmland values and it will make rent increases more challenging, but not impossible. They just won't be as big. Then we will come out of that cycle and see farmland values rise again. We will continue to lower the overheads of the company, and we believe we will see late in this year a gradual reduction in our interest costs, as a substantial amount of our debt is variable, and that will hopefully start to flow through and give us wind at our backs in terms of our AFFO per share. Our final point in the 2024 plan is to continue making selective asset sales. These will be of assets that we do not favor or whenever we get a very high price for any asset we are willing to let go. With that, I will turn it over to Luca to make some further remarks.

Thank you, Paul. I will further articulate and emphasize some of the points that Paul already raised. In 2023, we had three main strategic objectives. One was to demonstrate the value embedded in our portfolio by selected asset sales, then we wanted to reduce debt. And finally, we wanted to buy back stock at a discount. As for the first strategic objective, we sold about $200 million in assets, generating significant taxable gains to the extent that we actually had to distribute a special dividend in order to meet our re-codification requirements. Those asset sales were mostly focused on assets that were not a good fit long term for our portfolio because they were water challenged or had some uncertainties about long-term appreciation potential, or in regions where we did not believe there was significant potential for recovery, like, for example, blueberries in Michigan. So we have effectively kept the core of our portfolio intact, which we see as centered around the Corn Belt in the Midwest, virtually untouched, and we believe that the appreciation, the embedded appreciation is actually most significant in that part of our portfolio. Our second objective was reducing debt, and we did so, reducing it by about $76 million. At the same time, we increased liquidity by about $30 million, so we maintained access to sources of liquidity. Finally, we repurchased about 6.5 million shares at an average price right on the dot of $11. However you measure the real value of our portfolio on a per share basis, that's at a sharp discount to that value. Other things that we have done that were very meaningful in 2023 are that we renewed the expired leases with about a 20% increase in rents. As Paul mentioned, we reduced overhead, general and administrative expenses, and legal and accounting by about 15%. Looking forward into 2024, we will continue some selective asset sales and we will continue to acquire assets whenever strong opportunities arise. We will further reduce overhead expenses. Our projections include a degree of variability, and I always remind you that we grow crops outside, so we try to be reasonably realistic in our assumptions, but there is always the potential for better or worse than expected returns. Mother Nature can be very capricious. With that, I will now turn the call over to our Chief Financial Officer, James Gilligan for his overview of the company's financial performance.

Thank you, Luca. I'm going to cover a few items today, including a summary of full year 2023, a review of capital structure and interest rates, comparison to full year revenue and guidance for 2024. I'll be referring to the supplemental package in my remarks. As a reminder, the supplemental is available on the Investor Relations section of our website, under the sub-header Events and Presentations. First, I'll share a few financial metrics that appear on page 2. For the full year ended December 31, 2023, net income was up over 160% to $31.7 million and net income per share available to common stockholders increased to $0.55, largely due to gains on disposition of assets, as Luca mentioned a minute ago. AFFO was down $8.1 million, and AFFO per weighted average share was down to $0.16, largely due to elevated interest expense and lower revenue in the non-fixed payment categories, as we will review in a couple of minutes. Next, we'll review some of the operating expenses and other items shown on page number 5. Depreciation, depletion and amortization was higher in 2023, due to more depreciable assets placed into service and approximately $500,000 of adjustments made in the year related to assets placed in the service. Property operating expenses were higher in 2023, caused by higher property taxes, including a one-time property tax of approximately $150,000 in the first quarter. That amount was reimbursed by the tenant. In addition, a nonrecurring expense in the second quarter of approximately $140,000 was due to final reconciliation of cost-sharing on the California farm. General and administrative expenses were lower for 2023, primarily due to lower travel expenses and lower compensation expenses. Legal and accounting expenses were lower in 2023, due to lower litigation spend. Impairment of assets in 2023 relates to two items. First, as we covered on last quarter's call, there was a sale transaction that closed in early Q4 of 2023 that resulted in a $3.8 million loss. However, the sale was carried over quarter-end at 9/30, so it was considered a held-for-sale asset at 9/30, and that loss is considered an impairment. Second, in the fourth quarter of 2023, after reviewing the portfolio as we do every year, we decided to take a $2 million impairment on one farm in California, due to our estimate of a decrease in value. Gain on disposition was up significantly compared to 2022, demonstrating the appreciation of farmland sales values over net book value. It should be noted that we deferred an additional gain of $2.1 million, which we believe we will recognize in 2024. Interest expense increased in '23 due to higher rates. Income tax was a benefit in 2023, relative to an expense in 2022. This was caused by adjustments made to prior period estimates. Next, I'll get ahead to page 12 to make a couple of comments about our capital structure. Total debt at December 31, 2023, was $363.1 million, down approximately $60 million from the end of the third quarter and down approximately $110 million from the end of the second quarter. Floating rate debt, net of the swap, as a percent of total debt, stood at approximately 13% at the end of the year, down from approximately 24% at the end of the third quarter and down from approximately 32% at the end of the second quarter. Fully diluted share count as of February 23, was 49.2 million shares. We had undrawn capacity on the lines of credit of $201 million at the end of 2023. In 2024, we have three MetLife rate resets on debt totaling approximately $44 million. That's loans number 9, 11 and 12 shown on the table. Page 13 provides an overview of our income statement and the building blocks that generate revenue and cost of goods sold. Please note that our GAAP financials have a small presentation change this quarter. Tenant reimbursements are now included in rental income on the income statement. In Note 2 of the 10-K, we show the components of rental income, fixed farm rent, solar wind recreation, tenant reimbursements and variable rent. It is very similar to what we've been providing in the supplemental, but it is a small change from the past 10-Ks and 10-Qs. On page 14, we show these building blocks for years 2022 and 2023 with comments at the bottom to describe the differences between the periods. A few points to highlight are; fixed farm rent increased between the periods as we acquired properties in 2022 and renewed leases in 2022 and 2023. That was offset by dispositions in 2023. Solar wind and recreation changes were caused primarily by rent on land with a large solar project in the state of Illinois. That project is under construction from the third quarter of 2022 through the fourth quarter of 2023 causing an increase in rent during that time. There was an outsized increase in the fourth quarter of 2023 when that project began operations and ended its construction phase. Tenant reimbursement increased in the first quarter of 2023 with a one-time property tax assessment that was mentioned a couple of minutes ago of $150,000 that was reimbursed by the tenant. Variable payments were down in the first and second quarters of 2023 due to grapes, row crops, citrus and tree nuts. Q4, 2023 was down compared to 2022 largely due to almonds. Direct operation is the combination of crop sales, crop insurance and cost of goods sold. It was down relative to 2022 largely due to citrus and walnuts. Other items decreased due to lower auction and brokerage activity compared to 2022. In summary, while the items that comprise fixed payments were up year-over-year, the other categories were down. Next, on page 15, we show the outlook for 2024 using the same format as previous pages. There are assumptions listed at the bottom. We have three acquisitions targeted for the first quarter of 2024. No other transactions are included in these projections. On the revenue side, fixed farm rent changes reflect the full year impact of 2023 dispositions plus the three Q1 2024 acquisitions we're targeting, plus, of course, lease renewals from late last year. Solar wind and recreation decreases relative to 2023 are due to the absence of the solar rent associated with the 2023 construction project. Tenant reimbursements decreased because of farm sales in 2023, along with the absence of that one-time tax and reimbursement that occurred in the first quarter of 2023. Management fees and interest income increased due to loans issued in the fourth quarter of 2023. Variable payments decreased due to the outlook for citrus plus the absence of tree nut and grape farms that were sold last year. Direct operations, again, that’s crop sales plus crop insurance less cost of goods sold, is up slightly due to higher expected performance in citrus farms under direct operations. Other items have small improvements expected for auction and brokerage in 2024. On the expense side, property operating expenses decreased due to lower property taxes largely because of asset sales last year, lower insurance and other items. General and administrative decreases are due to lower spend on compensation, travel, and marketing in 2024. Legal and accounting show small changes due to cost inflation and estimates of litigation spend. Interest expense is lower due to rates and lower debt balances. Weighted average shares decreased with the full year impact of the 2023 share buybacks. This impacted AFFO in the $7.6 million to $11.1 million range or $0.15 to $0.23 per share, an increase over 2023. Hopefully, this helps describe where we stand given what we know today. We will keep you updated as we progress throughout the year. This wraps up my comments for this morning. Thank you all for participating. Operator, you can now begin the Q&A session.

Thank you. Your first question comes from the line of Scott Fortune with Roth MKM. Your line is open.

Yeah. Good morning, and thank you for the question. Just want to know if you kind of look at your portfolio and the pipeline of potential assets out in the market within your network? Are you continuing to see more opportunities, obviously with the focus on the Corn Belt? That's kind of where you've talked about moving away from the water test, those other properties and the value in your portfolio.

Yeah. So this is Paul and I'll take that question. So first just to define our view of the row crop regions that are attractive. It's going to be the core of the Midwest, the Corn Belt, including Illinois, Indiana, and Missouri. The heart of the country. We will also continue to make acquisitions in the Delta—Arkansas, Louisiana, Mississippi area. And we will be looking into the Southeastern United States, largely the Carolinas, Georgia, Florida, and maybe Alabama. Those regions are strong grain producers. They have relatively high-quality tenants in all of those areas. Water is seldom, if ever, an issue in those regions. We think they will continue to appreciate rapidly as farmland becomes ever scarcer, and they are also easy to operate, particularly in the Midwest, due to low property operating costs, low overheads to manage those properties, and very consistent and predictable rents and rent growth. So, we are very attracted to those regions and will continue to invest there. This means by implication that the drier parts of the U.S., starting about halfway across Nebraska, will have water challenges. Eastern Nebraska is fine, but Western Nebraska, Eastern Colorado, and regions like that are relatively dry. We still own many properties there but will continue to lighten up our exposure. In five years, we may still own some farms there, but it will be a lower percentage of the overall portfolio than it is today. Moving to the West Coast—the West Coast is a mixed bag. Some places have strong water rights that make farms highly productive. However, in five years, we may still own some farms in California, but it will be a significantly lower percentage of the overall portfolio. The reasons to consider this are number one water and number two, there is significant over planting of many commodities occurring globally, which impacts pricing. We do not believe we can solve the volatility issue in those farms. It's very challenging to get cash rents on those farms, hence we tend to have many crop shares. The crop share is both volatile and complex to manage. If we can reduce our exposure, it facilitates the goal of simplifying our portfolio, which makes it more stable and predictable, while also reducing management costs. I hope that addresses your question, Scott.

I appreciate it. That's really good color. Obviously, good opportunities as you look at the world crops going forward here. And just a follow-up on that and kind of looking at the pipeline and the potential acquisitions, what's the environment here from the farmers' perspective or other interested parties or partners as far as the financing at these higher rates? Is it more challenging? Just help us understand that environment.

Yes. Agriculture land as a marketplace is completely different from other commercial real estate assets. There is no lack of borrowing capacity. We have approximately $200 million in liquidity available to us right now. The lenders in this space, both traditional banks, Farm Credit, Farmer Mac, and large insurance companies that lend in this space, are active and there is definitely money available. The challenge is that, even though I believe in the appreciation story of agriculture, it's challenging due to the personal situation I have encountered over the last 20 to 30 years. You cannot run too negative a spread in borrowing costs versus the current yield off farm property. I'm willing to operate with a negative spread, but today that spread might be four or five percentage points, rather than one or two. Therefore, it makes acquisitions difficult. There are plenty of opportunities, but our cost of capital limits us to specific transactions where we see deep value opportunities or add-on properties. We as an institution believe that increasing scale is rewarded over time, both in higher rents and in better opportunities.

I'd add, Scott, to echo Paul's point, the mortgage penetration in our sector, if you consider it on an LTV basis, is around 10%. That's according to USDA data. So, it is much lower leverage in the system than you would see in other areas of commercial real estate. Farmers are experiencing a dip in profitability, but it is still strong relative to historical averages. The last three years have basically been the best three years of farmer profitability, and this year might rank as the fifth best. So, while the outlook is slightly lower, farmers are still performing well, but perhaps less so than before. Consequently, regarding competition in acquisitions, people may be less willing to buy compared to 2023 or 2022, yet there remains substantial appetite.

Thank you. If I may add one more question. You mentioned after a few years, the farm value and rent increases going forward here. Are there any preliminary expectations for rent increase levels in 2024? You mentioned there was 20% last year.

Yes. I believe you'll see in 2024, and I'll provide both the answer and rationale. I estimate it will be in the 5% to 10% range for the rents that need to be renewed in 2024. It's still a little early to confirm that, but that would be my educated guess. This is closer to the historic norm than what we've seen the last couple of years. The reasons for this consideration are twofold: first, we started pushing rent increases aggressively about three years ago which established a high base because we've achieved high single-digit rent increases three years ago, followed by about 15% two years ago and around 20% this year. Therefore, when we initiate the re-leasing cycle, it will be off a relatively elevated base. Additionally, the macro environment influences rents as they depend on a farmer's short-term outlook on profitability, which is likely to be more negative due to lower grain prices than in previous years. Conversely, land values are primarily influenced by a farmer's long-term view of farmland appreciation, while rental markets tend to be more influenced by fluctuations. Thus, we're seeing lower rent increases than in preceding years.

Got it. That's very helpful. Thank you for all the insight. I'll jump back in the queue.

Your next question comes from the line of Alex Fagan with Baird. Your line is open.

Hi. Good morning, and thanks for taking my question. First one is for me: which staffing roles in the company were reduced? Were they corporate specific or property-specific? Any additional context would be helpful.

Yeah. They were corporate specific, and they will almost always be. We are a very lean overall team with only about 15 employees in the REIT itself. We have the farm brokerage business in Champion, Illinois with a different team. However, we run this pool of assets of approximately $1.5 billion with a tiny staff. The cuts were made in the corporate headquarters roles. We can't cut further at the field level than we already have. Making these cuts isn't easy; everyone on such a small team is working hard, and now, in some instances, even harder. Specific roles eliminated include a somewhat junior position in our operations functions here in Denver, which was left vacant as this individual left to return to graduate school. We also let go of a competent PR and IR person, though we still have access to them as a consultant. There was a significant decrease in travel expenses in the past year and since we are less acquisitive, there is not as much flying around as previously occurred. The other major change for 2024 is reducing the board size from nine to five. At the annual meeting, our Board will be decreased to five. We didn’t remove any directors but re-nominated fewer than we had in the past. These discussions are always difficult since the directors we had were great, but we needed to control costs.

That's great context. Thank you. Just one more for me. You talked about rent increases in 2024 of 5% to 10%, which is closer to the historical norm. Can you confirm if that's what's embedded in the guidance for 2024?

A couple of things to bear in mind: our rent renewal season occurs at the end of the year. Think of it as between Halloween and the end of the year. A lot of the renewals happen in November and December. Therefore, the impact of rent rolls on 2024 is rather small. In making projections for 2024, we generally assume they will remain flat.

Let me add something important to that; the rent increases you see in the 2024 projections are based on rent increases from 2023 that are already contracted for and fully leased. That's not a guess. The 5% to 10% I'm discussing will happen next November, affecting the 2025 projection. There's no risk from rent rolls in the projections because the related leases for 2024 have already been signed. I hope that clarifies your inquiry.

Yes, it does. Thank you. That's it from me.

Your next question comes from the line of John Massocca with B. Riley. Your line is open.

Good morning. You touched a bit on the number of transactions you could possibly pursue given the tax circumstances in 2024. Could you provide clarity on what that means in terms of expected disposition proceeds?

Yes. It's really challenging to say. We have the seven transaction limit, and we've already completed one, leaving six remaining. The initial transaction was relatively small, representing partial ownership of a property that a controlling party sold. At the beginning of the year, we do not anticipate doing transactions unless they involve sizeable amounts, typically $25 million or larger. There are exceptions of course, should a great offer come in; however, we do not want to deplete that initial opportunity for asset sales too rapidly. We also have the 1031 opportunity, which offers some relief. However, as the year progresses, we might lower the size threshold for potential transactions we could pursue if we still have remaining options. If I had to estimate, I would say we could expect to complete around $50 million worth of asset sales during the year. However, it's important to note this isn't factored into the 2024 projections; no assumptions of debt reduction arising from asset sales or stock buybacks have been included as they are incredibly unpredictable. If we completed $50 million in sales, we would pursue another $10 million in purchases, resulting in a net $40 million available—half possibly directed toward stock buybacks and half toward debt reduction, depending on market conditions.

That's very clear. Thank you. In considering the variable rent payments in 2024, how much of the decline compared to 2023 is driven by yield and pricing outlook? And how much is already set due to asset sales that occurred in 2023?

Let’s ask James or Luca to provide a more specific response, and I can jump in if needed.

It's a combination. We sold a few excellent farms in 2023, so some of the variable rent we received for grapes has been eliminated as a result. We also sold a couple of tree nut farms which would exhibit similar characteristics—increased volatility in variable rent. Additionally, a large citrus farm performed well in 2023, but is reverting somewhat to historical means. So, the projected outlook for that particular citrus farm is a little lower than anticipated. Ultimately, it could turn out better or worse than expected; we’re taking a carefully conservative approach here. That's primarily what affected the variability in rent payments year-over-year.

Just to build on that, as I mentioned, we grow crops outside. The variable rent relies heavily on the best expertise available regarding price outlook for the market and yield for our farms. However, these remain wild guesses until we get nearer to the results. Yield is often significantly affected by late-season weather events. Presently, some farms yield a potentially outstanding outlook, but this might be tempered in the future. Pricing often is determined by variables at packing houses for permanent crops, and could greatly fluctuate based on market timing. We aim to perform due diligence and reach a middle ground based on the best available information.

That makes sense. One last question regarding the balance sheet; could you remind us about the process and pricing outlook for the MetLife term loan resets scheduled for 2024?

Yes. In general, the MetLife tranches are priced as a spread to treasuries based on their duration of resets. If we're discussing a three-year reset, we look at three-year treasuries, or five-year at the five-year treasuries, and so forth. Historically, our spread over treasuries has been around 180 to 200 basis points. Given current conditions, we are likely on the higher side of that spread. We continually negotiate to obtain better terms and ensure competitive lenders are considered. This establishes a solid dynamic with our lenders, including MetLife, as we regularly engage with them to facilitate the best execution. Also, most of our resets have historically been three years, but toward the end of the year, we extended terms to seven years to enhance our bargaining power. Throughout these discussions, we maintain at least a 20% and sometimes up to 50% ability to prepay these MetLife lines each calendar year without incurring penalties.

That’s very helpful. Thank you very much.

One additional point to mention is that our 2024 projections were based on current yield curves, representing our assumptions about rental rate increases for the MetLife loans that will be resetting.

There are no further questions at this time. I will now turn the call back over to Luca Fabbri for closing remarks.

Thank you, Jeannie, and thank you, everybody. We appreciate your interest in our company. We look forward to continuing this conversation throughout the year with our quarterly updates. In the meantime, should you have any pressing inquiries, please feel free to reach out via our Investor Relations email address at [email protected]. Thank you, everyone, and have a great day.

This concludes today's call. You may now disconnect.