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DATE

Friday, Oct. 23, 2026

CALL PARTICIPANTS

  • President and Chief Executive Officer - John Albright
  • Chief Financial Officer - Philip R. Mays

TAKEAWAYS

  • AFFO per Diluted Share -- $0.55, representing 19.6% growth year over year.
  • Total Revenue -- $20.5 million, reflecting $12.8 million in lease income and $7.6 million in interest income from commercial loans.
  • Full Year 2026 AFFO Guidance -- $2.20 to $2.22 per diluted share, raised from the previous range of $2.12 to $2.15 due to record investment activity.
  • Property Acquisitions -- $39.2 million in the third quarter, executed at a weighted average initial cash cap rate of 8.5%.
  • Year-to-Date Investment Record -- Exceeds $300 million for closed and under-contract transactions, surpassing the full year 2025 total of $77 million.
  • Industrial Portfolio Acquisition -- $117.3 million for a 13-property industrial portfolio, representing a low basis of approximately $63 per square foot.
  • Commercial Loan Portfolio -- $160.1 million outstanding face amount across 11 loans, carrying a weighted average coupon of 13.4% including paid-in-kind interest.
  • Net Debt to Pro Forma Adjusted EBITDA -- 6.5x at quarter end, a reduction from 7.7x reported in the third quarter of last year.
  • Liquidity Expansion -- $175 million in new commitments, comprising a $100 million four-year term loan and a $75 million increase to the revolving credit facility.
  • Portfolio Occupancy -- 99.6% for the property portfolio of 130 properties, reflecting stable tenant performance across 31 states.
  • Weighted Average Lease Term -- 8.7 years for the property portfolio, with 56% of annualized base rent derived from investment grade rated tenants.
  • ATM Program Proceeds -- $8.2 million raised during the quarter, contributing to total year-to-date net proceeds of approximately $70 million.
  • Post-Quarter Acquisition -- $7.9 million for a Burlington property in Chandler, Arizona, acquired earlier this month.
  • Loan Repayments -- $17.9 million from two loans received prior to maturity, which had a weighted average yield of 10.2%.
  • Full Year 2026 FFO Guidance -- $2.19 to $2.21 per diluted share, an upward revision from the prior $2.10 to $2.13 range.
  • Management Fee -- $1.5 million quarterly run rate, based on the volume of equity issued through the company's ATM programs.
  • Portfolio Tenant Quality -- 68% of annualized base rent is derived from credit-rated tenants, led by Lowe's and Dick's Sporting Goods.
  • Unfunded Loan Commitments -- $75.5 million at quarter end, which management expects to fund over the next two years.
  • Industrial Portfolio Metrics -- 1.9 million square feet that is 100% leased to nine tenants with a weighted average remaining lease term of 10.2 years.
  • Common Stock Dividends -- $0.32 per share, resulting in a common stockholder payout ratio of 58.2% for the quarter.

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RISKS

  • Mays stated, "Those are the 2 biggest moving parts on our on our rates for next year," referring to $150 million in total interest rate swaps maturing in January 2027 that will roll into higher rates.
  • Mays indicated that leverage could rise from the mid-6x range to 7.0x following the close of the $117.3 million industrial portfolio acquisition.

SUMMARY

Alpine Income Property Trust, Inc. (PINE -7.23%) reported record year-to-date investment activity, leading management to raise full-year 2026 financial guidance. The company is diversifying its core retail portfolio with a significant industrial acquisition while utilizing its commercial loan book as a high-yield complement. Management maintained balance sheet discipline by reducing leverage year over year and securing $175 million in new bank commitments to fund the current investment pipeline. Capital recycling remains a core strategy, with plans to dispose of lower-yielding assets to fund higher-yielding opportunities in the current interest rate environment.

  • President and Chief Executive Officer Albright noted that the pending industrial portfolio acquisition fits the company's criteria as it "fits all the boxes of things that we like to buy where there is good yield and, you know, limited downside and nice upside."
  • The company expects to close the $117.3 million industrial portfolio in the middle of the fourth quarter, utilizing a new $100 million four-year term loan to reduce revolving credit facility borrowings.
  • Management indicated that while public capital markets remain volatile, the company has access to external capital and private equity partners if stock prices are not conducive to issuance.
  • Chief Financial Officer Mays stated that the $75.5 million in unfunded loan commitments are "really spread out over a couple of years" and will be partially handled by incoming loan maturities.
  • The company continues to prune its portfolio of specific assets, including Walgreens locations, to recycle capital into assets with higher growth potential or annual rent escalations.
  • Albright reported that the residential land loan portfolio is performing on track because the underlying projects target high-net-worth cash buyers who are less interest-rate sensitive.

INDUSTRY GLOSSARY

  • ABR: Annualized Base Rent, representing the annualized in-place straight-line base rent under GAAP.
  • AFFO: Adjusted Funds From Operations, a non-GAAP measure used by REITs to assess operating performance by adjusting for non-cash items.
  • ATM: At-the-market, an equity offering program allowing a company to sell shares directly into the secondary market at prevailing prices.
  • Cap Rate: Capitalization rate, the ratio of a property's net operating income to its purchase price or value.
  • CECL: Current Expected Credit Losses, an accounting standard for estimating allowances for credit losses on financial instruments.
  • FFO: Funds From Operations, a standard measure of REIT performance that excludes depreciation and gains or losses on property sales.
  • Net Lease: A lease agreement where the tenant pays for most or all property-related expenses, such as taxes and insurance, in addition to rent.
  • PIK: Paid-in-kind interest, where interest is added to the principal balance of a loan rather than being paid in cash.
  • REIT: Real Estate Investment Trust, a company that owns, operates, or finances income-producing real estate.
  • SOFR: Secured Overnight Financing Rate, a benchmark interest rate used for dollar-denominated commercial loans.
  • WALT: Weighted Average Lease Term, the average remaining time on all leases in a portfolio, weighted by rental income.

Full Conference Call Transcript

Operator: Good day, and thank you for standing by. Welcome to the Alpine Third Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1. Please be advised that today's conference is being recorded. Would now like to turn the conference over to your speaker today, Jenna McKinney. Please go ahead.

Jenna McKinney: Thank you. Joining me and participating on the call this morning are John Albright, President and Chief Executive Officer Philip R. Mays, Chief Financial Officer and other members of the executive team who will be available to answer questions during the call. As a reminder, many of our comments today are considered forward looking statements under federal securities laws. The company's actual future results may differ significantly from the matters discussed in these forward looking statements, and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10 ks, Form 10 Q, and other SEC filings.

You can find our SEC reports, earnings release and most recent investor presentation which contain reconciliations of the non GAAP financial measures we use on our website at www.alpinereit.com. With that, I will turn the call over to John.

John Albright: Thank you, Jenna, and good morning, everyone. We are pleased to report another strong quarter. AFFO per diluted share grew 19.6% over the third quarter of last year, and we invested approximately $41 million a weighted average initial yield of 8.5%. Our investment activity has accelerated meaningfully this year, including our pending $117.3 million industrial portfolio acquisition, which I will discuss in a moment. Our closed and under contract investments year to date now exceed $300 million, a company record that surpasses our full year 2025 total of $77 million. As a result of this investment volume, we are raising our full year 2026 AFFO guidance which Philip will walk through shortly.

Starting with acquisitions, during the quarter, we closed $39.2 million of property acquisitions at a weighted average initial cash cap rate of 8.5%. Key tenants included a Best Buy in McAllen, Texas, a Lowe's in Fairfax, Virginia, a Dick's Sporting Goods in North Carolina, which are all investor grade rated and among our top 5 tenants by ABR. Year to date, we have closed on $85.8 million of property acquisitions at a weighted average initial cap rate of 8%. We continue to target well-located properties we can buy at low basis at attractive initial yield. We look to selectively recycle lower yielding properties into new higher yielding opportunities.

Subsequent to quarter end, we acquired a Burlington in Chandler Arizona for $7.9 million. And earlier this month, announced an agreement to acquire a 13 property industrial portfolio for $117.3 million or approximately $63 per square foot. The industrial portfolio totals about 1.9 million square feet across 11 states. It is a 100% leased to 9 tenants on an absolute triple net basis with annual rent escalations. A weighted average remaining lease term of 10.2 years and no expiration before late 31. While industrial is not a strategic focus, this portfolio stood out for a few reasons.

First, it offers an attractive initial yield Second, the tenant base is diversified, and the tenants have operated at their sites for an average of 40 years and invested significant capital in them. Third, we believe in place rents are below market and benefit from annual escalations. We expect to close in the middle of the fourth quarter subject to customary closing conditions new financing Philip will discuss gives us ample capacity to fund it. At quarter end, our property portfolio consisted of 130 properties totaling 4.8 million square feet across 31 states, with 99.6% occupancy and a weighted average lease term of 8.7 years. Annualized straight line base rent was $53.9 million.

Approximately 68% of ABR comes from credit rated tenants, and 56% from investment grade rated tenants. On our commercial loan portfolio, we received earlier payment in full on 2 loans totaling $17.9 million at a weighted average yield of 10.2%. At quarter end, the portfolio consisted of 11 loans with outstanding face amount of $160.1 million and a weighted average coupon including PIK interest of 13.4%. The loan book is near our target of approximately 20% of total undepreciated asset value. It complements our property portfolio and increases the overall yield on our investments. As a reminder, the timing of fundings or repayments can cause a relative size of the loan portfolio to vary from quarter to quarter.

With that, I will turn the call over to Philip.

Philip R. Mays: Thanks, John. Starting with our results. Third quarter total revenue was $20.5 million including lease income of $12.8 million and interest income from commercial loan investments of $7.6 million. FFO and AFFO were both $0.55 per diluted share up approximately 20% from the third quarter of last year. As a reminder, second quarter results included approximately $0.02 per diluted share of non recurring termination fee income. This quarter did not include any 1 time or non recurring income. For the 9 months ended September 30, total revenue $58.9 million including lease income of $38.1 million and interest income from commercial loan investments of $20.7 million.

FFO and AFFO were $1.65 and $1.66 per diluted share both up approximately 23% from the same period last year. Turning to the balance sheet. During the quarter, we raised $8.2 million of net proceeds through our common and preferred ATM programs. Year to date, we have now raised approximately $70 million of net proceeds across both programs. We ended the quarter with net debt to pro forma adjusted EBITDA of 6.5x. This is consistent with last quarter, and it is more than a full term lower than the 7.7x we reported a year ago. As of quarter end, we had $398.5 million of debt outstanding at a weighted average interest rate of 4.48% and no debt maturing until 2029.

As previously disclosed, we have $100 million of SOFR swaps at 2.05% that mature in January 2027 and will be replaced with swaps fixing SOFR at 3.54%. Notably, subsequent to quarter end, we received bank commitments for a new $100 million 4-year term loan and a $75 million increase to our revolving credit facility. We expect this financing to close in late October and we will use the term loan proceeds to reduce borrowings outstanding on our revolving credit facility. In total, this financing adds $175 million of potential liquidity. Now turning to guidance. As John said, our investment volume has led us to raise guidance.

For full year 2026, we are raising our FFO outlook to $2.19 to $2.21 per diluted share. Up from $2.10 to $2.13. We are raising our AFFO outlook to $2.20 to $2.22 per diluted share up from $2.12 to $2.15. At the midpoint, this represents approximately 17% AFFO per share growth over 2025. Our new guidance ranges reflect our increased investment volume of $310 million to $350 million Further, they reflect the expected timing of investments, dispositions, and financing activity as well as this quarter's $17.9 million of early loan repayments John discussed, and a $7.4 million loan with a 10.25% yield maturing in the fourth quarter.

Finally, based on equity issued this quarter, our quarterly base management fee run rate is now approximately $1.5 million With that, operator, please open the call to questions.

Operator: Thank you. Our first question comes from Jay Kornreich with Cantor Fitzgerald. Your line is open.

Jay Kornreich: Hey, thanks. Good morning. I was wondering if you could just give any further details on the industrial portfolio you announced to acquire. And if there is anything further along, what the yield was on it? And more specifically just in terms of how you anticipate financing it. And if there is any maybe guidelines around what you think pro forma leverage might be.

John Albright: Jay. it is John. Thanks for the question. I will let Philip talk about the financing aspects of it. Because it is under contract, we have not closed yet. We will probably save, more details for. Until after it closes. But, obviously, we have given a fair amount of detail on our investor deck on it. Without having it been closed. But it is. You know, we love we love the portfolio because it is higher yielding. It has a nice WALT of over 10 years. It has annual escalations. it is dispersed, you know, in 13 properties, 9 tenants, and, you know, incredibly low rental rate in per square foot. So it is.

It fits all the boxes of things that we like to buy where there is good yield and, you know, limited downside and nice upside. But, Philip, you want to talk about the financing side?

Philip R. Mays: Yeah. Hey, Jay, Next week, we should close on our new financing that is disclosed in the earnings release. A new term loan, a 4 year term loan for $100 million, for the proceeds will be used to pay down the line. Then we are actually growing the line and hitting the accordion there to increase the line by $75 million. So we will initially take it down on the line. On debt to EBITDA just if you just wanna look at that solely by itself, we go from mid sixes to low sevens. Probably 7.0x. And then we will look at. You know, we still have some room in our dispo guides and all to get back down, later.

Jay Kornreich: Okay. Appreciate that. that is helpful. And then maybe just more broadly, you know, the industrial portfolio acquisition, it brings some incremental diversity to the otherwise largely retail portfolio. So just wondering how you are thinking about what the ideal makeup of your portfolio is going forward. Are you targeting more industrial or other asset classes? Or was this transaction really just more of a 1 off?

John Albright: For right now, it is basically a 1-off, but we had mentioned in our previous earnings calls that we were open to other sectors. And so, you know, finding that, you know, great risk-adjusted yield, you know, in sectors. And as you know, we already have a industrial property in our portfolio before this acquisition. So I do not see anything else in the sort of in the window, kind of like what we are looking at, but, we are open to it.

Jay Kornreich: Okay. Alright. I will hold it there. Thank you.

Operator: Thank you. 1 moment for our next question. Our next question comes from Matthew Erdner with Jones. Your line is open.

Matthew Erdner: Hey, good morning guys and thanks for taking the question. I would like to touch on the loan portfolio a little bit and the plans with that capital as it does start to run off. Do you look to keep that portfolio at or near 20% or should we expect to see some of that capital kind of redeployed into properties And then, you know, on top of that, you know, I guess towards the end of the quarter, shares started trading down, which could present a attractive repurchase opportunity. So how do you guys kind of balance the 3 of those?

John Albright: Yeah. Thanks. So on the loan book, you know, it is not a hard set as far as an amount that we will have out there. So there could be a situation where the loan book, you know, pays down, pays off, and we do not replace it to the to the amount it is now. But I will say in this environment, you know, we are seeing interesting opportunities to replace the loans that we have. So you know, nothing, you know, right now, but certainly, this is a good environment to get, you know, really terrific sponsors, terrific assets, great locations, great basis.

So I would I would expect that there will be more opportunities, but it could be a situation where it does pay down, in any way. that is that is kind of where we are with the loan book.

Matthew Erdner: Got it. Appreciate that. And then looking at dispositions, are there any credits that you guys may look to move to move on from? And in, call it, 2027, you know, as we continue to go forward?

John Albright: Yeah. I mean, we are constantly, as you know, pruning the portfolio. And, of course, you know, we have, you know, some Walgreens left. But their credit gets better. And we are just kind of cash flowing those out until, you know, find that 31, buyer. And, you know, we have an at home, as you know, but their At Home is in Charlotte in a terrific location. We had another user that wanted to buy it and at home did not want to leave. So, you know, the locations that we have are really strong.

We have 1 Sportsman's Warehouse, and we have someone that wants to buy that. it is in the buried city and Long Island, we are far along on a on a lease. To replace that. So we are always pruning, nothing. Got it.

Matthew Erdner: Thank you, guys.

Operator: 1 moment for our next question. Our next question comes from R.J. Milligan with Raymond James. Your line is open.

Analyst: John, maybe you could just give some comments on what you are seeing in terms of maybe a shift in cap rates or if you are seeing the market move at all just given the higher interest rate environment?

John Albright: Sure. I mean, clearly, we are saving our capital for really good opportunities where we are getting that higher yield potential. So, you know, we are gonna be targeting sort of that 8 cap plus or minus And, you know, I would say that people are out in the market right now selling something. That means they are. They wanna clear the deck. So you probably have in this environment people that are gonna sell, gonna transact, no matter what, rep versus a market where know, they are they are seeing, you know, better pricing and they are taking something out to market. So this is the time that gets us excited. So we are hope.

Hopefully, we will have some good honey here.

Analyst: Thanks for that. And, Philip, just given the new debts or the new financings, and then the swap burn offs, is there any way to quantify what the potential impact is next year as we think about the higher rates and the swap burn-off?

Philip R. Mays: Yeah. there is 2 swaps, R.J., that expire both in January 1 is for a 100 million at close, and I talked about it in my prepared remarks at around 200 basis points. it is going to roll. We have a forward swap in place, that will replace it. That is below market, but higher than the 200 that swap was at. So that 100 million will roll up about 150 basis points. And then the only other swap we have burning off is 50 million. And it also matures in January. We do not have a forward to replace it, but it is closer to market. it is maybe 50 bps below market.

So that 1 will not. it is smaller. it is 50 million and it is closer to market. So that 1 will have a little sting, but not as much. Those are the 2 biggest moving parts on our on our rates for next year.

Analyst: Okay. Great. Thanks, guys.

Operator: Thank you. 1 moment for our next question. Our next question comes from Michael Goldsmith with UBS. Your line is open.

Michael Goldsmith: Good morning. Thanks for taking my question. Just obviously, industrial portfolio, and yet the implied fourth quarter guidance is similar to the third quarter AFFO per share. So can you kind of bridge the moving pieces from the third quarter to the fourth quarter? And then is that like a $0.55 like the right runway to think about just kind of going forward, I guess, building off of that last question?

Philip R. Mays: Michael, it is Philip. So in the quarter, as we noted, John noted, we had a couple of loans that paid off And then in the fourth quarter, if you look at our loan schedule, there is 1 for $7 million to $8 million. it is also scheduled to pay off. In addition to that, we do have the rate that adjusts down the large residential loan. So the $0.55 in the third quarter, if you kind of adjust for all that, just the loan activity, it probably falls back to, call it, 53 or so. And then with the acquisitions we announced in particular, the industrial portfolio, that will, you know, kind of replace it.

So it looks like, you know, in the middle of our guidance, the run rate kind of consistent with the third quarter. But there is really moving parts there, a little less loan and then the acquisition, industrial acquisition bringing it back to 55. And, look, it could be you know, higher or lower, and it will just depend on timing of when the acquisitions close versus any dispositions.

Michael Goldsmith: Got it. Thanks for that. And then leverage ticking up here, you know, over the last year, you were able to take it down. I guess just what is the plan to work the leverage down from here, and just how are you thinking about that in this current environment?

John Albright: Yeah. I will take the first part of it, and Philip can follow on. Look, we have some dispo plans and even the industrial portfolio, there might be some properties we want to spin out on that 1. So, you know, it is really, I would say, you know, asset sales you know, obviously, if the capital markets are there, there may be some help there. But, you know, we have a fair amount of properties with lower cap rates sort of, attributes. So that is sort of the plan.

Philip R. Mays: Yeah. You know, John said, dispose will be the biggest mover there. But, also, just, you know, we do have some annual bumps in the portfolio. NOI will grow and, you know, recycling not just straight dispose could also help you know, earnings grow in addition to dispositions. So we have got a few levers in place to incrementally move leverage down.

Michael Goldsmith: Got it. Thanks so much. Good luck in the fourth quarter.

Operator: Thank you. 1 moment for our next question. Our next question comes from Gaurav Mehta with Alliance Global Partners. Your line is open.

Gaurav Mehta: Thank you. Good morning. Wanted to ask you on the financing for industrial portfolio. I do not know if I missed it, but can you provide the cost of financing of the term loan?

Philip R. Mays: How much was the rate on the term loan? The new term loan has not closed yet. there is a swap in it. It will. It. The rate will be a little higher than the other 2 term loans. But it. It will generally be fairly consistent with it. Okay. And then, you know, our variable rate debt now is, you know, call it 5%, a little higher depending on, you know, where SOFR sits.

Gaurav Mehta: Okay. First, for the commercial loan portfolio, what is the timing of $75 million unfunded commitments in the portfolio?

Philip R. Mays: it is really spread out over a couple of years. And then, you know, we also. that is just the unfunded piece. You know, keep in mind that over those 2 years, there will also be some loans maturing. So you know, the net funding will not be $75 million. It will be something less net of the loans maturing. And you can see the schedule. You can see the maturity dates on there. We have $8 million paying down in the fourth quarter alone.

So, you know, repayments will help you know, fund some of the draws actually going out so that you know, we never have to really come out of pocket the 75 at any moment in time. Those draws are spread out over 2 years. And can be at least partially handled with just loans maturing.

Gaurav Mehta: Alright. The. Thank you. that is all I had.

Operator: 1 moment for our next question. Our next question comes from Alec Feygin with Barry. Your line is open.

Alec Feygin: Hi. Thank you for taking my question. On the swaps, are you assuming for the $50 million and the $100 million, are you assuming to swap that in the fourth quarter? Or you know, will that drag into the first quarter?

Philip R. Mays: They. On the new 100. The new $100 million 4-year term loan it is already swapped. We have a forward on it. And so that rate will be called 4.7%. On that. We do not really have to do. That we already had to forward that we can just move over to that swap. So there is no new swap to fix it. So it will be fixed at closing. It does not go all the way out to the full term of it. You know, we will, at some point, look to do the tail later, but it will be 4.75%-ish at close.

Alec Feygin: Okay. that is helpful. I have. You know, you talked in your prepared remarks about the loan maturing and as well as the rate being lowered on that residential construction loan. Do you have any visibility in any of your lenders potentially doing any early prepayments or payoffs in the loan book?

John Albright: there is some, but not material amount.

Alec Feygin: Got it. Thank you. that is it for me.

John Albright: Sure.

Operator: 1 moment for our next question. Our next question comes from John Massocca with B. Riley Securities. Your line is open.

John Massocca: Good morning, everyone. I know you are not providing 2027 guidance at this point, but how are you thinking about kind of investment volume in the first half of next year, just given taking down a sizable transaction here at the end of the year, And, you know, I know there is some offsets to it, but you do have some of these loan commitments outstanding. I mean, is that is it fair? I think your peers have kind of also indicated that you might slow transaction volume at the start of next year just as this capital market situation kind of shakes out?

John Albright: Or is that kind of reading too much into things? Well, since we are basically doing the amount of investment volume this year to our market cap, you can probably figure that is going to be should be less next year. So I do not know how many years we can kind of keep on doing, our market cap investment. So. But, you know, look. We always, you know, you know, it is too early, but, you know, for sure, if we find opportunities, that really fit, we are gonna find the capital and it could be a partner if that is easy.

If the if the capital markets are not kind to our stock and our securities, then we will find external capital. there is incredible amount of that right now, and in the net lease space, as you guys probably follow on better than follow it better than we do that you know, every private equity group, mammoth private equity groups, have or starting net lease groups. So there is no shortage of capital. So we look forward to finding those opportunities, and that is our job is to find the right capital for it.

John Massocca: Okay. Maybe circling back to the industrial acquisition. I know, you have not closed it yet, maybe you are kind of reticent to provide too many details. But you know, when did this kinda come across your desk? Because can we get more color on pricing I mean, is this kind of pricing in the new interest rate environment, or is this something that kind of was still attractive but maybe sourced prior to the kind of tenure moving up significantly here.

John Albright: In August and September this year. Yeah. The portfolio sort of happened you know, it was not a long drawn out process. I mean, it was. It had been fully marketed, but you know, it was 1 where, you know, the pricing is somewhat reflecting this new environment. Of higher interest rates. So we are feeling very comfortable with where the cap rate is relative to where the 10 year is.

John Massocca: Okay. that is it for me. Thank you very much.

Operator: 1 moment for our next question. Our next question comes from Craig Kucera with Lucid Capital Markets. Your line is open.

Craig Kucera: John, it is obviously a pretty tough housing environment given interest rates. Can you give us an update on how the projects underlying the residential land loans are performing? Are they on track relative to budget? And how are you feeling about exposure to residential land loans right now?

John Albright: Yeah. I mean, we feel very good with, the ones that we are in because they are second home, third home, fourth home sort of communities. And, actually, you know, believe it or not, the fall market is the strongest market. And I think, you know, what you are seeing on you know, high net worth sort of folks is that you know, owning, you know, sticks and bricks is not a bad thing to have. So we are not worried about where our position in these it is not like, you know, first time homebuyers or move-ups. This is sort of like, you know, a lot of discretionary capital. Got it.

Craig Kucera: So not very interest sensitive, more of a cash buyer, is what you are saying?

John Albright: Exactly.

Craig Kucera: Okay. Okay. that is it for me. Thank you.

Operator: And I am not showing any further questions at this time. And as such, this does conclude today's presentation. We thank you for your participation. You may now disconnect, and have a wonderful day.