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DATE

Monday, Aug. 3, 2026 at 5:00 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Anne Olson
• Chief Financial Officer - Bhairav Patel
• Senior Vice President of Investments and Capital Markets - Grant Campbell

TAKEAWAYS

• Core FFO -- $1.27 per diluted share, representing a 0.8% decrease compared to $1.28 last year, primarily due to the impact of selling 12 communities in 2025.
• Same-Store NOI -- 0.3% growth year over year, reflecting flat revenue growth offset by a 0.1% decline in property operating expenses.
• Blended Lease Rate Growth -- 1.8% for the second quarter, comprising a 3.4% increase on renewal leases and a negative 0.6% change on new leases.
• Retention Rate -- 61.3% for the quarter, an increase from 60.0% in the same period last year.
• Weighted Average Occupancy -- 96.0% for the second quarter, which remained relatively stable versus 95.9% in the prior year.
• Portfolio Dispositions -- 14 communities and 1,810 homes sold in 2026 for a total price of approximately $320 million, significantly exceeding the volume of the previous year.
• Civic Lofts Sale -- $30 million in proceeds from the June 29 sale in Denver, representing a mid-3% capitalization rate on a trailing 12-month basis.
• Rapid City Market Exit -- $66 million received from the July 9 sale of five communities, completing the company's exit from the Rapid City market.
• Bismarck Disposition -- $150 million expected from the pending sale of six communities in August, which will finalize the exit from the Bismarck market.
• Minneapolis Asset Sale -- $73.8 million from the July 14 sale of the Red 20 and Ironwood communities, totaling 312 homes.
• Liquidity -- $242.6 million at quarter end, including $234 million available under credit lines and $8.6 million in cash and cash equivalents.
• Net Debt to EBITDA -- 7.3x at the end of the quarter, a decrease from 8.2x in the first quarter of 2026.
• Core FFO Guidance -- $4.58 to $4.68 per diluted share for the full year, a downward revision from the previous range of $4.81 to $5.05 due to the timing of dispositions.
• Same-Store NOI Guidance -- Flat to negative 1.0% growth expected for the full year, updated to exclude high-performing assets in Bismarck and Minneapolis that were sold or held for sale.
• Same-Store Revenue Guidance -- 0.0% to 1.0% growth projected for 2026, reflecting the impacts of the new supply absorption in the Denver market.
• G&A Expense Run Rate -- $2 million in annualized savings expected due to midyear overhead realignments following portfolio dispositions.
• Special Distribution -- $50 million to $60 million earmarked for a potential fourth quarter distribution to maintain REIT status following high disposition volume.
• Recurring CapEx Guidance -- $1,250 to $1,350 per home for the full year, compared to $494 per home spent in the first six months.
• Share Repurchases -- $2.5 million spent to buy back 45,310 common shares at an average price of $55.54 per share during the second quarter.
• Total Debt Position -- $1 billion of debt outstanding with a weighted average interest rate of 3.6% and a weighted average maturity of 6.7 years.
• Minneapolis Region Performance -- 2.5% same-store NOI growth for the quarter, driven by a 2.0% increase in revenue and 3.4% blended rent growth.
• Denver Region Performance -- Negative 6.0% same-store NOI growth, reflecting a 5.6% decline in revenue due to concessions as the market absorbs new supply.
• July Blended Spreads -- 1.8% overall blended lease growth held steady through July, with Denver improving to a positive 1%.
• Value-Add Expenditures -- $3.5 million to $6.0 million projected for the full year, following $3.2 million invested during the first half of 2026.

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RISKS

• Patel stated that the updated same-store pool "now results in expected same-store NOI growth ranging from flat to down 1% year-over-year," as high-performing assets in Bismarck and Minneapolis will not meaningfully contribute to earnings in the second half.
• Olson stated, "Denver remains softer as new supply continues to be absorbed," noting that this softness impacted overall same-store revenue, which was essentially flat for the quarter.

SUMMARY

Management for Centerspace (CSR -2.70%) detailed a strategic portfolio repositioning focused on exiting tertiary markets to concentrate on institutional markets and reduce corporate leverage. The company completed or contracted approximately $320 million in dispositions during 2026, exiting markets in Rapid City and Bismarck while selling opportunistic assets in Minneapolis and non-core properties in Denver. Operational results remained stable in Minneapolis and other core markets, though performance was tempered by supply-driven softness in Denver. Management lowered the full year Core FFO guidance to reflect the impact of these asset sales, while projecting a significant improvement in the net debt to EBITDA ratio as proceeds are used to retire debt and fund a special distribution.

• Olson reported the company sold or is under contract to sell 20 communities for approximately $530 million over the last 14 months to improve the portfolio's growth potential and financial flexibility.
• Campbell noted the decision to sell two Minneapolis properties for $73.8 million was based on "strong asset pricing received given the strength of Minneapolis fundamentals" and a desire to manage portfolio concentration.
• Patel indicated that following the completion of pending sales, net debt to EBITDA is expected to reach the "mid-6x range," which would be the strongest balance sheet position in the company's history.
• Campbell attributed the softness in Denver to a supply-demand imbalance, though he noted first half absorption was the "highest on record in Denver" and that construction pipelines are decelerating.
• Management confirmed that July blended lease rate growth remained positive at 1.8%, with renewals in the "mid-3s" providing a foundation for second half performance.
• Patel explained that a special distribution of $50 million to $60 million in the fourth quarter may be required to maintain REIT status given the taxable income generated by the high volume of real estate sales.
• Olson emphasized that while Denver has challenged the portfolio, Minneapolis has "absorbed the elevated supply" and is now a year past its inflection point, delivering 3.4% blended rent growth.

INDUSTRY GLOSSARY

• Blended Lease Rate Growth: The weighted average of rent changes for both new leases and renewals during a specific period.
• Cap Rate: Short for capitalization rate, it is the ratio of Net Operating Income to the property asset value, indicating the potential rate of return.
• Core FFO: Funds From Operations adjusted for non-routine items like casualty losses, severance, or strategic review costs to better reflect recurring performance.
• FFO: Funds From Operations; a standard REIT performance metric that adds depreciation back to net income and excludes gains or losses from property sales.
• NOI: Net Operating Income; property revenue minus property operating expenses and real estate taxes, before interest and depreciation.
• REIT: Real Estate Investment Trust; a company that owns, operates, or finances income-producing real estate and is required to distribute at least 90% of taxable income to shareholders.
• Same-Store: A pool of properties owned and stabilized for the entirety of the periods being compared to provide a like-for-like performance analysis.
• T12: Trailing 12 months; a financial measurement based on the 12-month period immediately preceding the reporting date.
• Value-Add: Capital investments made in a property, such as unit renovations or amenity upgrades, intended to drive higher rents and property value.

Full Conference Call Transcript

Operator: Hello, everyone. Thank you for joining us, and welcome to the Centerspace Q2 2026 Earnings Call. [Operator Instructions] Presentation will now begin.

Anne Olson: Thank you, and good morning. Centerspace's Form 10-Q for the quarter ended June 30, 2026, was filed with the SEC yesterday after market close. Our earnings release and supplemental disclosure package are available on centerspacehomes.com and were filed on Form 8-K. Today's remarks include forward-looking statements based on management's current views and assumptions. These statements are subject to risks and uncertainties discussed in our risk factors and other SEC filings. We cannot guarantee these statements will materialize, and you should not place undue reliance on them. Please refer to our earnings release for reconciliations of any non-GAAP measures discussed on today's call.

Joining me today are Bhairav Patel, our Chief Financial Officer; and Grant Campbell, Senior Vice President of Investments and Capital Markets. During our remarks, we will give a brief update related to our portfolio repositioning and operating trends, after which Grant will elaborate on the status of our dispositions and investment activities, and we'll close out with Bhairav providing context for the guidance updates we outlined in our release last evening. In the last 14 months, we have sold or are under contract to sell 20 communities for approximately $530 million. These transactions have significantly improved the profile of our portfolio and balance sheet, increasing exposure to institutional markets, eliminating exposure to tertiary markets like St.

Cloud, Rapid City and Bismarck and reducing leverage. Executing the strategy is intentional. Our goal is a higher quality portfolio with stronger growth potential, lower net debt to EBITDA and greater financial flexibility. Operationally, the quarter was in line with our expectations. We have updated our same-store reporting to reflect the disposition activity, and now our same-store results are more weighted to Denver and Minneapolis. This impacted our overall revenue, which was flat year-over-year, primarily due to concessions in the Denver market. However, disciplined expense management led to NOI growth of 30 basis points in the second quarter when compared to the second quarter of 2025. Expenses declined 10 basis points year-over-year as our teams controlled costs across categories.

Most of the savings came from lower R&M costs, including term expenses. Within the same-store, we had an excellent quarter for retention. Of residents with lease expirations, 61.3% of our residents renewed at renewal rate growth of 3.4%. New lease rate growth was negative 60 basis points, which was an improvement of 190 basis points over the first quarter and resulted in blended lease growth of 1.8%. And the blended lease increases have held steady through July. While Denver remains softer as new supply continues to be absorbed, it is notable that our blended spreads for July were positive. And overall, the softness in Denver is offset by strong results out of North Dakota, Nebraska and Minnesota.

In particular, Minneapolis delivered blended rent growth of 3.4% with retention at 65%, evidence that the market has absorbed the elevated supply that had challenged many markets across the country. We are capturing rent increases in markets where supply has been absorbed and new supply is muted. Outside of the Mountain West, all of our markets had blended lease growth in June in excess of 3%. While we believe we have stability in operations and an opportunity as deliveries diminish in the Mountain West into 2027, we also have a strong opportunity to capture value through our portfolio repositioning. Grant, can you discuss more specifics on our disposition and capital markets activities?

Grant Campbell: Thanks, Anne, and good morning, everyone. We continue making progress on our portfolio optimization and deleveraging plan announced in early June. On June 29, we sold Civic Lofts in Denver, Colorado for $30 million. This was a smaller community relative to our other Denver assets and no longer core to our long-term strategy in that market. The transaction represented a mid-3% cap rate on T12 financials, including non-stabilized vacancy and concessions this particular urban Denver submarket is experiencing today. From a stabilized operations perspective, the transaction represents a low 5% cap rate. More broadly in Denver, first half of the year transaction volume is down 46% from the same time period in 2025 and 72% compared to 2024.

Despite lower transaction volumes, high conviction investors have recently been active on individual community acquisitions. We have seen recent acquisitions at significant discounts to replacement costs in urban submarkets with going in cap rates at mid-4% and below, along with select newer vintage suburban communities pricing at high 4% to low 5% in-place cap rates. These investment decisions are informed by first half of 2026 absorption figures being the highest on record in Denver, market's continued high cost of homeownership and deceleration of the new construction pipeline. Moving to other portfolio markets. On July 9, we closed the sale of 5 communities in Rapid City, South Dakota for $66 million. This sale exited us from the Rapid City market.

In Bismarck, North Dakota, we remain in process on executing the sale of 6 communities for approximately $150 million with closing expected in August. This transaction will exit us from the Bismarck market. Pricing on the Rapid City and Bismarck sales is a mid-6% cap rate, and we saw strong interest from potential buyers, including both regional and national platforms, highlighting the capital interest in secondary markets driven by healthy regional economies and measured new supply pipelines. In total, our disposition activity in Denver, Rapid City and Bismarck includes 12 communities, 2 market exits and total sale price of approximately $245 million, all consistent with pro forma outcomes described in our early June portfolio optimization plan.

In addition to these initiatives, we also made the decision to sell 2 communities in Minneapolis. This was driven by strong asset pricing received given the strength of Minneapolis fundamentals, management of our portfolio concentrations and further advancement of balance sheet strategy. On July 14, we closed the sale of Red 20 and Ironwood, 2 newer vintage communities totaling 312 homes were sold for $73.8 million. In aggregate, all 2026 disposition activity includes 14 communities, 1,810 apartment homes and total sale price of approximately $320 million. These sales improve our overall portfolio quality and operating efficiency, including average rent per community increasing 1.4% and average homes per community increasing from 201 to 222.

Our 2026 dispositions have allowed us to move forward with certainty and speed in executing deleveraging outcomes associated with our strategic review and manage related tax implications. All of our sales priced inside of the implied mid- to high 7% portfolio cap rate our stock currently trades at. Given this valuation disconnect, we bought back shares in the quarter, repurchasing $2.5 million at an average price of $55.54 per share. While active with buybacks, we are also focused on our leverage profile, seeking to strike an appropriate balance between the 2, and this quarter's initiatives achieved this. I'll now turn it over to Bhairav to discuss our financial results, balance sheet and revised guidance.

Bhairav Patel: Thanks, Grant, and hello, everyone. Last night, we reported second quarter Core FFO of $1.27 per diluted share, driven by a 30 basis point year-over-year increase in same-store NOI as revenues and expenses remained relatively flat. Our same-store results exclude NOI from the 14 communities sold or held for sale as of quarter end. As a result, they are not comparable to first quarter same-store results or prior same-store guidance, both of which included those assets. Turning to full year 2026 expectations. The reconstitution of our same-store pool to exclude the 14 communities now results in expected same-store NOI growth ranging from flat to down 1% year-over-year.

At the midpoint, we expect revenue growth of 50 basis points and expense growth of 2%. Most of the change in same-store guidance reflects the updated same-store pool as Bismarck and Minneapolis had strong first halves and were expected to continue performing well. These communities will not meaningfully contribute to earnings in the second half of the year. And as a result, we are lowering our Core FFO midpoint to $4.63 per share. We will use the proceeds to fully repay our line of credit and expect to have approximately $100 million of cash on hand, including $50 million to $60 million earmarked for a special distribution that may be required to maintain our REIT status.

We continue to refine our taxable income projections and any required special distribution would likely occur in the fourth quarter. Lastly, we expect full year net G&A and property management expenses of $28.3 million at the midpoint, excluding nonroutine severance and strategic review items. The reductions we implemented in connection with the dispositions reflect our ongoing effort to align our overhead structure with the evolution of our portfolio. However, the reduction in overhead this year does not fully capture the total impact because several actions were implemented midyear. We expect our annualized run rate, which better captures the overall impact to be lower by approximately $2 million because of the realignment. Moving to the balance sheet.

We ended the quarter with more than $240 million of liquidity. Annualized net debt to EBITDA was 7.3x, down sharply from 8.2x in Q1. We had approximately $1 billion of debt outstanding with a weighted average rate of 3.6% and a weighted average maturity of 6.7 years. Disposition activity after quarter end will further strengthen our position. Following the sales, we expect total debt to be below $850 million and assuming $50 million to $60 million in special distributions later this year, net debt to EBITDA should settle in the mid-6x range. Together with approximately $450 million in total liquidity, this would put us in the strongest balance sheet position in our history.

To conclude, I want to commend our team for maintaining operating discipline while making significant progress against our strategic plan in a challenging market. With a stronger balance sheet and a more focused portfolio, we are well positioned to deliver solid operating results in the second half of the year. With that, operator, please open the line for questions.

Brad Heffern: You added the roughly $75 million to the disposition plan with the Minneapolis properties. I guess, first, can you just sort of talk through that decision? And then can you also talk about the use of those proceeds? Will that also be for deleveraging? Or might you allocate some of that to repurchases or something else?

Anne Olson: Thanks for the question. I'm going to have Grant take that and talk a little bit about our decision to sell those additional 2 assets.

Grant Campbell: Yes. That decision really resulted from a couple of different things. One, strong pricing received as we work through our process. Two, as we sell out of some of these non-institutional secondary markets, we are mindful of portfolio concentrations and managing that. So this was an ability to not only achieve strong pricing, but also manage our portfolio concentrations as we think about the company moving forward. And then I'll pass it over to Bhairav to talk about proceeds.

Bhairav Patel: With respect to proceeds, part of those proceeds may be used to pay down debt. Part of those will be earmarked for our special distribution that we expect to happen in the fourth quarter of this year. And then there's going to be a small amount of cash on hand, which we may hold and use to kind of retire secured mortgages early next year.

Brad Heffern: Okay. Got it. And then, Bhairav, maybe sticking with you. Obviously, tons of moving pieces between the sales, timing, deleveraging, et cetera. Not really looking for '27 guidance, but I'm wondering if there's any color you can give us on just what the FFO run rate of the business looks like approximately after all of these transactions are completed.

Bhairav Patel: Sure. So I'll start with the impact on the second half. Let's go through some of the big components. About $300 million in sales, Grant mentioned a cap rate of mid underwriting convention, so let's add 50 basis points from an NOI standpoint. So that approximates about $11.5 million for the second half, which is roughly in line with the reduction in NOI compared to our prior guidance. Now that's offset with the use of proceeds that we talked about, which for the second half are about $6.5 million. So the net impact is $5 million. That's roughly $0.25. That's for the second half.

Now for the full year, you have to annualize that, but we also have organic growth coming from the rest of the portfolio. So going forward, that's how I would kind of think about the run rate guidance. Obviously, as we annualize what's going to happen in the second half, but there's growth coming from the rest of the portfolio in 2027 as well to offset that.

Unknown Analyst: This is Connor on with Jamie. Blended lease spreads improved to 1.8% in 2Q and retention also increased to 61% from 60% last year. Can you walk through what you're seeing in July and whether that improvement is being driven more by new lease pricing, renewals or reduced concessions?

Anne Olson: Yes, Connor, I'll start and then Bhairav can add a little bit more color about where we're at, particularly as we send out renewals. Into July, we saw that blended rate hold firm at 1.8%. We're seeing some strengthening in renewal pricing or in new lease pricing, particularly as Denver continues to work through. But really, that strength on the renewal side, which we're expecting to come in, in the kind of mid-3s again. Bhairav, do you have any more color that you want to give on leasing?

Bhairav Patel: No, I would just add that renewals remain strong. There's -- new lease trade-outs may fluctuate a little bit just because we typically hit our peak in June and July. But overall, as Anne mentioned, from a blended standpoint, we are seeing solid blended rate growth. I'll also add that for the second half, Denver has a better comp that may have an impact on new lease trade-outs because the concessions that we started offering started in the second half of last year. So we have a favorable comp going into the second half, which may affect new lease trade-outs.

Unknown Analyst: That's helpful. And then on Minneapolis, it generated 2.5% NOI growth this quarter, remains the largest NOI contributor within the portfolio. I think last quarter, you described Minneapolis is moving beyond the supply inflection point here. Has anything changed in your outlook? And is this market performing better than you expected entering the year?

Anne Olson: Yes. I would say it's performing right in line with our expectations, maybe slightly better as Denver has been slightly down from where we maybe expected, and those are offsetting each other. But definitely have seen really good growth in Minneapolis. We're seeing good new lease rents. We're seeing great retention. And I'd say we're probably now a year into past the inflection point where we really saw a pickup last summer around this time. So feeling really great about Minneapolis. And the supply picture here remains really muted as to new deliveries. And so we think that demand will hold up, and we'll continue to see good results out of Minneapolis.

Richard Anderson: Okay. So you -- I think you just kind of went through an annualized full year headwind of $0.50. I think I got that right. And if you're -- and you said offset TBD on organic growth for the rest of the portfolio, all makes sense. So if you're -- if I was trying to do this math before my question came up, so I didn't get fully completed on it. But if there's $120 million of same-store NOI, I think that it's, again, about right.

So that's got to grow by a certain percentage to offset -- the basic -- the genesis of the question is, in what world could there be FFO growth next year is basically the question.

Anne Olson: Grant, do you want to take Rich's math here?

Grant Campbell: No. I mean I think a component to consider there is we mentioned G&A savings on an annualized basis, that's about $2 million or $0.10 a share. So depending on where NOI goes next year, again, we expect Denver to recover in 2027. All of the other markets are doing really well and have passed the supply pressures. So once Denver recovers, depending on organic rent growth, we can at least expect some offset coming from NOI and at least hold FFO steady going forward when you, kind of, combine the organic growth along with some of the savings on the G&A side.

Richard Anderson: Okay. Fair enough. You also mentioned the reason to sell Minneapolis was -- I think what you were implying when you were going through the strategic review, that kind of came out in the wash that there would be some strong pricing in certain assets. Is there anything else that came out of that broader process that sort of you're working on as a potential change in the future like you had with the mini sales? Or is that it in terms of what you think might be different from where you're viewing dispositions today?

Grant Campbell: Yes, Rich, I think correct. As we work through the process, it was evident that these assets in Minneapolis, we had strong interest. I think a couple other notes that came out of the process. One, we had strong pricing in the secondary markets that was consistent all the way through the process. In terms of additional sales in Minneapolis at this time, we're not thinking about any additional sales in 2026, if that answers your question.

Richard Anderson: Yes. And last for me, you had a nice transaction in Salt Lake City. I'm wondering what your thoughts are in that market on a go-forward basis in terms of building scale.

Anne Olson: Yes. Thanks, Rich. When we acquired the project in Salt Lake City, our goal was really to scale that market. And we are keeping tabs on, and I'll ask Grant to just give a little bit of an overview here in a second of how that market is trending. But the cost of capital has really changed since we undertook that transaction and the overall market relative to our cost of capital. So the things that are out of our control that are driving our investment decisions remain -- keep us a little bit stymied from a new investment perspective.

So as we look to scale that market, we'd be looking for really discrete transactions where we could have sales that match fund that until a time when our cost of capital comes back in line to make that accretive. But Grant, maybe you can just give a couple of senses on how that market is trending and why we still like it.

Grant Campbell: Yes, we continue to be highly constructive on the Salt Lake market. We would like to grow our presence there. As Anne mentioned, we are evaluating the best use of a dollar, what is the best capital allocation decision. And right now, given our cost of capital, it is not new acquisitions in Salt Lake. We -- our investment that we made there is hitting its marks from a pro forma underwriting perspective. We're very encouraged by that. There has been a little bit of an uptick in marketed offerings here, in particular, the past 3 to 6 months. We've seen a few more broadly marketed opportunities. We continue to talk to all of our market relationships.

We continue to do all the work there. So we're staying close to the market. And when we're in -- if and when we're in a position where that is our best capital allocation decision, we feel confident that we can continue our evolution there.

Ami Probandt: I'm just wondering how much of an impact did the asset sales have on same-store revenue? So would you likely have maintained the same-store rev guide if you hadn't sold some of your stronger performing assets?

Bhairav Patel: Yes. So from a same-store perspective, recomposition of the pool has a significant impact on our guidance. So and that will be the main contributor to it. For reference, while NOI for the same-store pool is down 1.3% year-over-year, the 14 communities that are now excluded, they were collectively up 7.5%. On the revenue side, the performance is similar as well with Bismarck topping the portfolio and same-store revenue growth and the Minneapolis communities that were included in the dispositions were also solid contributors. So yes, I mean, a majority of the change in the same-store guidance would be because of the dispositions.

Ami Probandt: Okay. Got it. That's helpful. And then I was hoping that you could dig in a little bit more in Denver. How is your portfolio performing versus the MSA as a whole? Do you have pricing power in any of the submarkets and is the decline in same-store revenue in Denver that you've been seeing still mostly a supply issue? Or is there anything to note on the demand side?

Grant Campbell: Yes. Ami, I'll start there, and then Bhairav can give a little bit of detail. But we continue to really like our Denver portfolio from a position standpoint. We don't have -- we're pretty equally weighted urban and suburban, and we're really along the I-25 corridor. So while we have had a lot of supply impacts for our properties, maybe not as much we're not in the really heavy supply impacted areas. And that has helped us trend really well in Denver. When we look at the underlying fundamentals in the market, -- we're not yet seeing anything beyond supply that we think is driving it. So we're seeing really good retention.

We're seeing great wage growth in our applicant pool. We're not seeing any trends relative to doubling up. The cost of homes is still very, very high in Denver. Now job growth has slowed in Denver. We've all watched that kind of as we watch all the markets across the U.S. But the first half absorption of 2026 was the strongest on record for Denver. So we really do think it's the supply and demand story. And Bhairav, maybe you can just give a little bit of detail about how we're performing relative to the market on our Denver-specific stats.

Bhairav Patel: Sure. I'll just add a couple of stats there. So blends for the second quarter in Denver were down 2.6%, but that was an improvement over the first quarter where the blends were down 4.8%. Concessions did tick up a little bit at about 4 weeks, but that's in line with the market. The increase kind of makes sense given the increase in expirations in the peak leasing season. And we should have a much better comp for the second half. In fact, we're already seeing it in our July blends for Denver, which are actually positive at about 1% and it's led by renewals where we'd see the first impact of concessions rolling off.

And then despite the supply pressure, we feel good about our positioning in the market. If you kind of think about the overall market vacancy, that's about 10%. Our portfolio average is half of that. So overall, we feel like we're very well positioned in the market and in a great place to take advantage of a potential recovery in 2027.

Anne Olson: Thank you all for joining us today, and a special thanks to our team who has done a tremendous job throughout the quarter, specifically as we've undertaken a lot of transactional activity, and we're looking forward to a great second half of the year. Have a good day.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.