August 2022 Update with Justin Ford
As one of our privileged members, you get access to real estate expert Justin Ford's monthly updates.
This Update covers special situations with our network of experts in the kinds of private deals most people never even hear about.
Each month, Bob Irish checks in with Justin to see how his previous real estate deals are performing. Justin also discusses the latest trends in the market, what to look for when purchasing property as an investment, and much more.
You can watch or listen to the August 2022 interview with Bob Irish and Justin Ford or read the transcript below.
Bob Irish: Bob Irish here with our monthly call with Justin Ford of Pax Properties. Today, we're going to update you on all the standalone investments in Florida and keep you abreast of the underlying investments in the cap plus diversified income fund. I've also heard that there may be a very exciting investment opportunity, we'll talk about towards the end of this call and we'll offer some inflation protection. Now, look I say this every month, but it's important, especially for our more recent investors. Throughout real estate booms and busts Pax Properties has never failed to produce a positive result for investors or missed a mortgage payment with that said, Justin, how are you? It's nice to have you back.
Justin Ford: I'm doing great. Thank you, Bob. I was just in my backyard finishing a workout and it felt like 110-degree weather out there, but glad to be inside the AC and talking to you.
Bob Irish: Oh, great. Well listen, why don't we do a quick update on the standalone properties and really switch things up. I hope this doesn't perplex any of our viewers, let's start up north, let's go to Tallahassee first. Let's talk about, what do you want to talk about first, The Baymont or Seven Hills?
Justin Ford: Yeah, let's talk about the two properties in our 10 property portfolio total, that really have challenges at the moment. So the Baymont Tallahassee are two hotels in our 5 hotel portfolio that are still struggling to come back into the black. The other three are having record years, which we'll talk about in a moment. But Tallahassee, one is an impaired market and two, our sales have underperformed for very specific reasons, which we're addressing more aggressively than ever. So the Baymont, we decided to let go of the flag because it was a lower level flag. Our quality of finishes and everything we do service wise is typically much higher than what a Baymont represents. So we thought we brought much more to the flag than they did to us.
They even handicapped us on marketing. We couldn't put our own website up. We can't do the things we do for our independence. And it's the only one of our five hotels that didn't win Trip Advisor's top award this year, was that one. So as we're phasing out the Baymont, which the flag went dark just three days ago on Friday, we're now an independent. When that flag went dark, leading up to then we were no longer on their website offering rooms and we couldn't open our website until their one closes. So we have this gap where we're not truly visible to the entire marketplace and we've suffered because of that transition. That's part of it. The new property will be Casa Bella, and Casa Bella is going to be Bella, which means beautiful. And the rooms are all very, they're already quite nice.
We're adding to 14 of the rooms, little kitchenettes and bars. We finally got these plans almost at approval. And we are going to really focus on the outside the amenities. While you and I are talking, we're going to be putting up some pictures there of some drawings we have these amenities and we're going to reposition as one of the independent hotels that we have that have done so well. Except for the Seven Hills, which ran into COVID just when it was born. So that's the plan there. And we're working, we're making good progress there. And I'll tell you about that progress in a moment. But first I'll jump to Seven Hills because it is facing a similar struggle as Baymont. Seven Hills, when that was launched, as I said we went from $150,000 in one weekend to $8,000 because of COVID and then we leased out to the homeless shelter for a year, which was great, kept us in the black.
But after that, it took us six months because of materials and labor and so forth. And since then, we also have to work at shedding the reputation of the hotel that hosted the homeless shelter. So that has been a struggle as well. Having said all that, in those two properties we have failed to put in good management, failed to put in and keep good management. That has been our main challenge. The fault is primarily on us. We've been dealing with difficult markets, but it has been primarily on us. I'm flying up there tonight. I was there a few weeks ago. I'll be there tonight. I then have to travel through other places. But if we don't have this fully in hand, I'll be there every day until we do, until we get it right now.
There's quite a few interesting developments that we have that have occurred that are both internally in our company. And as far as the market goes, are quite promising. So first of all, we have as we've grown, we've had to grow our support, our corporate support. So for the first time now we have a sales manager, corporate sales manager. All of our individual property sales managers, reports to the sales manager, which is great because the director of ops now gets to focus more on ops. We also have a trainee who is now becoming the right hand of the of the ops person.
So she'll focus on departments and the shopping center so that our director of ops can focus on hotels. We have a new CFO group helping us. We've put together all these reports and all this data and so forth. But as we grow, we haven't had the sufficient capacity to dig into the data as quickly and the time as we want to, to make the adjustments as quickly and as the time we want to. So we're making all those investments in our infrastructure and I'm very confident it's paying off. We're seeing some of that payoff already. On the sales side for instance, we have FAMU is one of the universities in Tallahassee FAMU, and they had a shortage, that they couldn't accommodate about 600 of their incoming students with on campus housing. I don't know what the nature of it was.
So they looked for a hotels to accommodate them and they chose both of ours as the two they're going to recommend to their parents. So far we've only signed up, last I heard maybe I think 10 in total, 8 at Seven Hills and two at Baymont. But we're trying to get the ability to market more directly to the parents. And recently just yesterday, I believe it was, I guess their director of housing told our sales director that they need to put up like 346 kids for just 10 days. And now that looks like we may be able to perhaps get the bulk of them in our two hotels for a little while, and then market to them and their families for long term stay options. So that is very, very positive development there.
Other positive developments, I've been sending my folks to conferences and so forth to broaden our contacts and so forth. And we've come up with some really strong new groups. One is called Hotel Trader, which represents all sorts of traveling, tour groups and so forth, including overseas. We have a direct connection. They're a fairly significant group and we've just signed that deal. We're getting all the back office part of that all set up. We just connected in Tallahassee with CLC, which is a group that arranges travel for truckers. And a lot of our properties have room for trucks. So that took a while because they did not have space for it, but they already were fully accommodated in Tallahassee as far as hotels go. But we stayed with it and we got the contract. And there's many other things going like that. So through groups, through concentrated marketing and other things we were doing, we're doing a very active revenue management.
So rate management, where you adjust your rates on a daily, weekly basis, either high or low, up or down to maximize revenue. But you need to do it in our category, not going below a certain flow. Because in our category, if you go below certain floor, you're going to attract the undesirables and that's not good for the rest of the gas and for your long term reputation. So we're aggressively investing in that as well. And also we're doing things like taking care of some things that still needed attention physically on the property. We're taking care of those final touches. We are really marshed resources. So tonight I'll be there.
I got the project manager, sales manager there, an assistant sales manager. We fired the general manager who was there. We have our regional manager there right now running the show. So we're taking very specific and aggressive action and we have very specific goals to get to break even this month. Not sure if we'll get there, but we'll get close and then to get back in the black in coming months. So we're dealing with that aggressively and I do continue to like our prospects.
Bob Irish: Talk to me about the 14 rooms at the Baymont. Are those going to be nightly hotel rooms? I know at one point you were thinking about converting some of the rooms there to more apartment type things. So what's going on there?
Justin Ford: So those apartments are basically extended stay. So if you want to stay for a week or a month. But having said that, we have, like the electrician is putting a GFI circuit there. We have the plumber running the new drainage for the sink at that what's called the wet bar, is basically like a kitchenette without a stove. Having said all that, we've already looked at it with our electrician, where if we get a lot of traction with these 14 units as extended stay, we may just, in these 14 units alone, just install actually the electric capacity to actually put small stoves in there and actually turn them into micro apartments. Depending how each phase of these tests go, then we may eventually apply to change the whole thing to apartments, the whole entire property. So we have many different possible fallback positions.
Bob Irish: Okay, good. So you're testing this concept right now and you'll keep us updated in future calls. Let's talk about GSA, how are things going there?
Justing Ford: GSA is going well. GSA, we did the refi, I guess about six months ago, maybe five months ago. Return two thirds of investors capital. We're paying, I think it's double digit cash on cash. And we're close to it. And we are amortizing our secondary debt on that. We expect to do another refi on GSA, not another refi actually. So what we have on it is a Fannie Mae loan for 16.7 million. We have supplemental debt for about 1.8. So a total debt there's around 18.5, that probably is worth, I'm going to say 28 to 30 million. So in a year, once we get our NOI up to our target about 1.25, 1.3 million, we'll go for what's called the supplemental. With that supplemental we expect to pay off that secondary debt, roll it into that supplemental loan and return the rest of the investor capital.
So at that point, investors will be playing with the house's money as it were. And they continue to receive distributions. And of course they have equity, stakes and positions. So that's going very well. We're still marching right towards that goal. Apartments are very strong demand, as you know. I think we have six to lease up to be at 100%, actually of 168. And I believe we're on track to do that by the end of this month, because August is a very strong lease up month in Tallahassee.
Bob Irish: Okay, cool. Let's go over to Ocala. Talk to me about Equus.
Justin Ford: Ocala as taken the crown as the crown jewel for many years. It was Melbourne and then we go to certain ones and so Ocala right now, we went to number one in the market. I think it's number two today, but that's always a horse race when you get to number one, you're always trading places. It won AAA's diamond awards. So it's a AAA diamond, which not only increases our potential customers, but actually lowers our insurance rates, believe it or not. And yeah, it's very interesting. And today insurance is skyrocketed. And we've won numerous other awards. We are, I believe through the end of this month, our NOI or EBIDA. We use the Term EBIDA for hotels rather than NOI for some reason, but they're essentially the same operating earnings. Would be around $800,000.
We have around 12 million and change invested. By the end of this year, we expect to be between 900 million in EBIDA. And recently we also won a best place to work by the Orlando Sentinel. We're going to mention that next week, sort of Melbourne by the way. And we have two comp sets. We compare ourselves against two sets of hotels. We compare ourselves against the economy, like the sleeping, the quality and stuff like that because our cost base is usually typical to theirs. We buy cheaply. We renovate with a real eye towards cost, but living quality, a good cost. So our cost there is at 12 million 160 bays or 152 rooms with 160 bays. It's like $75,000 a door. They could give you the land for free and you couldn't build it for that.
So we compare it to the economy set and we always beat the economy set. Right now we're beating the economy set, the last report by about 33%. So their average revenue for available room is I don't know, 50 or so, they were like 65. I think those are pretty close to the numbers. However, then we have an aspirational concept. The aspirational concept includes Hampton in Holland and Holland express, Fairfield In. These are higher midscale brands, they are national brands, their interior corridor, where we are exterior corridor. For the first time now we're not leading that concept, but we are above their index. So we're above their average. The Equus is doing beautifully. We'll get Seven Hills back to that as well as that recovers. And as we put the right management in place and keep it there, we'll get there as well, but yeah, Equus is doing beautiful.
Bob Irish: Fantastic. Let's move down the Coast of Melbourne.
Justin Ford: The advantage we have there remains our value proposition that award-winning two room suites for the price of a regular hotel room. Six years in a row we won that. We're on track for this year. Melbourne is trailing Equus by a bit, not a lot, but I'd say we're on track this year to bring in between 800 and 900,000 in EBIDA. That property has, the total investment is going to be around nine I believe, eight to nine. So those are very strong numbers continues to do well. The market is very strong as well. We're rated number five in the market. I'd like to get back into the top two, top three. We have an excellent manager there, GM, who is now assisting our director of ops as her right hand person. So Melbourne continues to do very well, I'm happy to say.
Bob Irish: Ah, that's great. Great news. So unless you have anything more to add about the standalones, maybe you could give us a brief overview of what's going on inside the fund.
Justin Ford: Sure. So in the fund we finished the renovation at Apex as you know a couple of months ago. As of August 31st, this basically, which is about a little over a week from today, we'll be at 100% occupancy. Almost entirely at the new higher rates. And so we completed those renovations inside and out and essentially a year then there are some final touchups, but as far as the tenant was concerned, when they walk in all the exterior was done. I want to say about 13 to 14 months, all the exterior was done and all the interiors were done. So we could lease up. The only thing we have pending there is to install some separate electric meters for 40 of the units, but we've already done all the interior unit stuff.
We've put the sub panels in already. We've run all the wire in the attic. We're just waiting for the materials to show up and the meters themselves to connect that. And then all the tenants will pay their own electric, plus they contribute to water and that's the kind of community you really want to run. Right now those tenants are paying us back for electric, but when we first bought it, it was what's called an all bills paid community, where everything's included. And typically all bills paid, you typically have tenants that are maybe struggling a little bit more financially. That's why they include everything in one bill because they may not be able to have the deposit for the water bill or everything else. But we have now transformed a lot of the community.
It's a great place to live. It looks fantastic. And we expect to apply for our refinance there. Again, we're going to go for an agency loan, like probably Fred Mac. It could be a Fannie May or Fred Mac. I think it's going to be a Fred. We expect to apply actually in September. So usually what it used to be is they would ask you. You would have to provide a year of financial. So this is the last 12 months. This is what we earned in the last 12 months. And then they would do what's called the trailing three month financials. Show us your last 90 days. We'll project that over the following year and we'll take your last year's expenses. And then they would even do a T1, just take 30 days. Now they're doing a rent roll. So you just show the rent roll and they'll go, okay based on that, we'll multiply that by 12, we'll factor in vacancy factor, non-collectors factor, whatever it is, and then we'll subtract to your last year's expenses.
So based on that it's possible, not exactly guaranteed, but it's possible. We might even be able to lock a rate before the next fed meeting in mid-September. And if we do, I think we might be able to lock that rate in the mid fours, which is a pretty good rate. So at 100% accuracy, working hard to lock in that new rate on the refi. And when we do pull out a chunk of cash, which again we'll use to either reinvest or distribute to investors in the fund. I think we'll probably be reinvesting for a while because we're starting to see more and more opportunities out there.
Bob Irish: Okay. Well let's talk about Elevate.
Justin Ford: So Elevate, we ran into some snags of delays for a couple months. Now we've been back on track and we've been moving really, really well. We have about, I'd say about 30 units that we've delivered of the 126, but the other 40 to 50 that we're working on could be delivered in a matter of three weeks. They're at that stage. What happens sometimes is there's one element that might hold it up. In this case, the quarts, which we already had delivered to the fabricator and stone cutter. There was an issue with him getting his manpower. And so sometimes the kitchens are waiting for the stone. These are things you run into construction now and then, but we are moving along in the interior. The exterior we've made tremendous progress. The pool is 95% done, the laundry room. The courtyard will be done soon. And the main thing is the exterior of the buildings. The ones that had the old mansard. The mansard, to me, I always remember like a guy in the circus with a beard down to his shoes. That's a weird the mansard looks. It's that weird mansard roof going all the way down. It just makes no sense.
Bob Irish: It was never a good look. Never a good look. I don't know who came up with it or why. I mean, maybe it was fashionable for a month. I don't know.
Justin Ford: I don't know what happened. But the seventies has yet to be explained by scientists. So we're tearing that off and in the first one, just now as we speak, we're starting to apply the EIFS. So you tear it off, you put a frame, a metal frame up, you put in an insulation. You reshape all your balconies and so forth, all your cantilever trusses. There's all that sort of preparatory work to do. And then there's a layer of mesh. And then there's the EIFS. So on the first building, we're actually putting the finishing touches on that. The first building base to the side, not the main street. I want us to do that first, but I wanted to make sure that we're getting it right.
Now we're doing the second one and the second one faces the street, the street with vehicle traffic of, I'm going to say 30,000 cars a day. No, probably 45 actually, it's go a lot of traffic. So now we're changing our face to the public. And also in about two weeks, we're also going to have all the asphalt, then we're redoing the whole parking lot. And so when you see the outside, it's going to be stunning and then you're going to go see our amenities, it's going to be stunning. And then you're going to go see our model unit. And for you the whole property is already renovated, sign up, we'll move you in. So we're at that stage and Elevate. Optimistically, I think we'll be done at the end of November. But it could be the end of the year, but we should be full rent roll by the end of the year, I would say.
Bob Irish: Well speaking of full rent, things still rolling along at Port St. John?
Justin Ford: Oh yes. Port St. John, going back to Florida. Port St. John is great. I mean, so we bought it at 97% occupancy I think it is. So we had three vacant bays, but they were small and they were like 2,700 square feet total versus 78,540 square feet for the entire complex. It took us a while to rent them. But now we rent them out entirely. We rented them to a thrift store and to a vape shop. And I did a lot of research on the vape shop because I don't really know a lot about vape shops. So I was thinking was a vape shop, like a tattoo parlor? For instance there was a bail bonds guy who wanted to rent. I was like, I don't know. I don't think I want the kids going with mom to pick up ice cream and passing by the bail bonds? And then there was a tattoo joint. I said, no, I mean, those are good for strip malls. We have a strip mall, round up for the tattoo joint, but this is a supermarket.
The thrift store is fine. And switch out the vape shop, we did enough research. We checked other supermarket in the area and some of them did have vape shops. And this one is a chain with like seven of them, they have seven vape shops. So for a small company, they seem to be somewhat stable. And so now we're at 100% occupancy. And again, I'm still suspicious of triple nets. I don't want to overstate it, but the money is too easy, something's got to be wrong here but it's not entirely, there's work to do. But we've had it for a little over a year and I'm very much looking for other triple nets like this, and I'm starting to see opportunities come up, actually. These higher interest rates are creating pockets of opportunity. So I am excited about that, but Port St. John is doing very, very well.
Bob Irish: Glad to hear it. Let's talk a little bit about the potential investment opportunities I mentioned at the top of our call, unless you want to go somewhere else first.
Justin Ford: Yeah. We neglected Mansions, which is called now Ascend. The other fund we have is the 146 unit of property in More Oklahoma called Mansions. That's going pretty well. We're really trying to execute our plan here, where we have the exterior done in the first three months. We probably won't hit that exactly. But if we miss it, we'll come close. It'll be four and change, which is really important because again, once you have all your exterior done and you have your interiors, your model units. For the incoming tenant, it's all renovated and you really get to replace your rents more quickly at the higher levels. So we're moving along on that.
The real challenge there was, the water bills were crazy there when we bought it, we knew it going in. So you would look at a water bill. And I can't remember the exact numbers, but if you're looking at like, alright I'm going to make something up because I can't remember the exact numbers. But a typical apartment, two-bedroom apartment might consume for the sake of argument, I could be way off here. Might consume, let's say, I don't know, 200 gallons a month for the sake of argument, something like that. So in 146 apartments, you would expect something like whatever that is, which would be $20,000, whatever that is 30,000 gallons or something like that. This thing would range from like $10,000 to like a hundred thousand month by month, to like $5,000, like $20,000.
Even when we were a contract, we went to the utility. We knew there were water leaks and so forth. We had identified some of them, but we knew the meters were also faulty. And at first they said, no, no, no. And we said, look how low this one is, what, no one took a shower for a month and then look at this. And we'd be glad if you keep building us this low, but then the next month you bill is like everyone was running a swimming pool in their house. And so it was just crazy. So they changed the meter and now recently they changed it again. And we've been identifying all these leaks, everything from, they used to have chiller sea systems.
So we're cutting off the chillers, which delivers cold water to the units. And we're digging deep, we're doing all the work. We're doing the work that the tenants don't see. We're doing the work under the ground and when necessary behind the walls and in Elevate, we do a lot behind the walls and inside we cut concrete in Elevate because we got to get down to that old cast iron stuff sometimes. Cut out eight feet sections and put a new pipe. Here we're doing a lot on the outside. We're doing it in the utility room with the water heater, there are issues there. But we have a good handle on it. And our last bill, our last water bill was normal. But not only that, we still have a lot of work to do.
We're attaching this very systematically. So the interiors of those units are actually a fairly, on a scale of 1 to 10, with 10 being the most difficult, they're probably like a three or four as far as a renovation challenge. So once we get this infrastructure really fixed, which we're making really good progress on. I think we're going to move as quickly as we thought. And doing that on the outside of the same time I think we're going to keep up a good positive NOI even while we dramatically transform the property and we should be done entirely within a year of having bought it.
Bob Irish: Excellent. Great progress report. I can't believe that water story. That's really something.
Justin Ford: And the owners didn't care. It's funny. I don't know, there was like a young guy who's the owner and he made up these crazy stories. All the bills are all over the place because I paid with my Amex to get points. I'm like, what? What are you talking about? How does that change the water usage? Then they come up with another story, oh, we lost all our records. My dog ate my homework and he was just running a dump and didn't really care. But we got the price that reflected that. We got it at a good price.
Bob Irish: So let's talk about this investment opportunity that may have some inflation protection Justin.
Justin Ford: So we raised 22 million for the fund and we raised it fairly quickly when we sent out our formal emails last year. And so we don't like to be rushed with money. We never want to be rushed buyers because that tends to lead to a rushed seller, we don't want to be either. So we took the money, we had opportunities and we were able to deploy them. We bought Apex a few months after that. We bought Elevate and about five or six months after that we bought the shopping center. So within six months we deployed, I don't know, maybe 15 million of that equity, 15 or 16 or maybe about 17 when you include what we set aside for renovations. And then the combined debt was like a 30 million plus in purchases, maybe 35, 40.
And so that other one where Pax had some loans out, short term loans out to properties. We let the fund replace that. Pax doesn't charge interest, but the fund did charge interest 6 to 9% to the properties he was lending to. And it led to a few others that were using short term cash until they got to for instance, Ocala. Ocala when it finishes, it finished only last year. So we finished renovations in June of last year. We immediately hit the wall and all that kind stuff. It takes a while to go from renovated to in the black. You need to fund that gap. So there was all these gaps and so we let the fund step in where other debt had been and that let the fund earn cash on its side of cash.
Now, since we close on mansions a little less than two months ago, we started seeing new opportunities. So now we're pulling the funds money out, we're replacing with private investor debt. So we just made a mention of this and we just did it for Pax, Ocala. So for Pax Ocala, the Equus and we're raising about 1.8. I thought it was 1.8 but probably 1.725, the fund loan was a little lower than I thought there. And I just mentioned a PSN. I think we're either sold out already, or we're almost sold out on that one. We'll probably be sold out by in a couple hours from now. The, soon after that, about two days, I'll issue a similar note for governor square apartments, that's the entity.
The DVA is the Renaissance apartments at Capital Square. That's our apartments in Tallahassee, that's that supplemental loan that goes with the first mortgage Fannie. That supplemental plan is to have it paid off when we go, I'm sorry, the secondary mortgage, the secondary and son mortgage, the secondary debt of 1.5 or 6 or 7, something like that. That secondary debt along with the Fannie first mortgage, that secondary debt will be, the plan is to have it paid off when we go for the supplemental Fannie loan that returns equity and retire the rest of that secondary debt. So we're going to have investor debt in that for about 1.7 million. And then Vera, we didn't mention Vero, but Vero is our oldest hotel. It's our lowest cost base. It won the top award this year.
It's consistently hitting budget or exceeding, sometimes coming a little bit short, but it's on track to post as best year ever. And we recently reinvested in a lot. Doing new things to it to sort of keep it, to make it competitive. And it's recently risen from 29 in the market to 12 because of these investments. So these loans will replace the investor funds. The funds loan, then the funds loan will use that for its next purchase, which we're working on now. The terms of the loans that we're offering are the following. There's going to be the same for all three entities. So it's 8% interest plus one point. That term is for 18 months, but it's extendable by the borrower at the borrower's discretion for another 18 months.
If the borrower extends it pays another point and the interest rate goes up to 9%. If at the end of three years the interest that the lenders received, the interest and the points, if they're not enough to cover the inflation rate, the borrower will make a payment and to cover any deficit to the inflation up to 10% per annum. We max it to 10%. So we're capping an edge. So it's only partial inflation edge. So for the sake of argument, lender ended up getting like 9.2%, but inflation was 9.8%. We'd make up that 0.6% per year gap to always cover inflation. If inflation was 11%, they'd only receive 9.2, we'd make up the 0.8% gap to bring them up to 10%.
So it's partial inflation edge. It also has a minimum interest earned and that's important for some of our properties, especially like Pax Ocala and for Vero, because it's quite possible that those could refi very soon. We have banks that are interested in it. So if we ended up refinancing, let's say in three or four months, you're still going to get six months of interest plus. So if we paid off for four months, it would work out to a 15% annualized yield. I don't expect that to happen, but it is a possibility. We want to let investors know that if they lend it to us and all of a sudden the bank was like let's go ahead and do this and return the money, it's going to be worth their while, because you want to protect. People need to put the money to work.
Bob Irish: Justin. Those are very attractive rates and those loans. I mean, I can't imagine if they're going to last too long. If people are interested in this, how should they go about getting in touch with you?
Justin Ford: We set up a particular email, firstname.lastname@example.org. In the subject line they can put promissory notes with partial inflation edge or something like that.
Bob Irish: Okay. That sounds super attractive. Wow.
Justin Ford: Yep. I appreciate that. Yeah.
Bob Irish: Yeah. I'll have some interest in that myself.
Justin Ford: Quickly, Bob
Bob Irish: I will quickly. Okay. Justin, anything else before we sign off?
Justin Ford: Nope. It's always a pleasure to talk to you.
Bob Irish: Oh, it was great to be with you, Justin. I look forward to seeing you again next month.
Justin Ford: Take care.