Welcome to the Washington Real Estate Investment Trust Second Quarter 2016 Earnings Conference Call. As a reminder, today’s call is being recorded. Before turning the call over to the company’s President and Chief Executive Officer, Paul McDermott, Tejal Engman, the Director of Investor Relations will provide some introductory information. Ms. Engman, please go ahead.

Thank you, and good morning, everyone. Please note that our conference call today will contain financial measures such as core FFO and NOI that are non-GAAP measures as defined in Reg G. Please refer to the definitions set out in our most recent financial supplement available at www.washreit.com. Please also note that some statements during the quarter are forward-looking statements within the Private Securities Litigation Reform Act. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. We provide these risks in our SEC filings. Please refer to Pages 9 to 24 of our Form 10-K for our complete risk factor disclosure. Participating in today’s call with me will be Paul McDermott, President and Chief Executive Officer; Steve Riffee, Executive Vice President and Chief Financial Officer; Tom Bakke, Executive Vice President and Chief Operating Officer; Drew Hammond, Vice President, Chief Accounting Officer and Controller; and Kelly Shiflett, Vice President, Finance and Treasurer. Now, I would like to turn the call over to Paul.

Thank you, Tejal, and good morning, everyone. Thanks for joining us our second quarter 2016 earnings conference call. Washington REIT had another strong quarter and raised the mid-point of our full-year, core FFO guidance range, all while executing our asset recycling plans and successfully raising equity capital. I would like to highlight four key achievements this past quarter. First our core FFO of $0.46 grew 9.5% and same-store NOI grew 3.9% over second quarter of 2015. Second we tighten our full-year core of FFO guidance range and raised its mid-point by $0.02, we are also raising full-year office and multifamily same-store NOI guidance. Third, we executed the first of the two sales transaction of our suburban Maryland office portfolio and acquired Riverside Apartments. And finally, we successfully raised equity capital to strengthen our balance sheet and help you deleverage to an expected low 6's net debt to EBITDA by year end. Let me start by detailing the progress, we have made on our full-year, 2016 asset recycling plan. As mentioned, we have completed the sale of the first tranche of a suburban Maryland office portfolio, which comprised to four assets and delivered aggregate sales proceeds of $111.5 million. The remaining suburban Maryland office assets are under contract to be sold in September for $128.5 million. We also completed the acquisition of Riverside Apartments $244.8 million. This apartment community in Alexandria, Virginia consists of 1222 units and potential onsite density to develop 550 additional units. Through our asset recycling, we have strategically allocated capital out of low barrier, suburban office assets into urban infill Metro centric assets in locations with strong demographic and walk able amenities. More over we have allocated capital to value add multifamily assets that meet this criteria. We believe that the allocation provides the best risk-adjusted returns…

Thanks Paul, good morning everyone. Second quarter net income was $31.8 million or $0.44 per share compared to a net loss of approximately $2.5 million or $0.04 per share in the second quarter of 2015. The difference is primarily due to the recognition of $24.1 million gain on the first sale transaction of the suburban Maryland office portfolio this quarter. Second quarter core FFO per share increased 9.5% to $0.46 compared to $0.42 per share in the second quarter 2015. $0.1 of the increase was due to a differed tax benefit recognize following the sale as Dulles Station land this quarter. Core FFO is growing partly due to same-store NOI growth, which includes renewal growth over bad debt higher reimbursement, and operating expense savings. Core FFO is also growing as a result of the increased contribution from the Maxwell, Silverline Center, The Wellington and Riverside Apartments. In addition, we have decreased interest expense through the pay down of secured debt this quarter, due in part to using proceeds from equity offering. Second quarter same-store NOI increased 3.9% over the prior year. Same-store rents increased 190 basis points year-over-year and same-store typical occupancy was 92.7% at the end of the quarter. Core funds available for distribution or Core FAD was $0.32 per share for the quarter and $0.73 for the first half of 2016 the slight improvement over the $0.71deliverd in the first half of 2015. We continue to project a full-year core FAD payout ratio of 85%. Starting with office, same-store NOI grew 5.7% and rents grew 210 basis points year-over-year due to annual rent increases at several of our properties located in the central business district. Office NOI also benefited from higher reimbursement collections of bad debts and increased parking revenues. Same-store office cash NOI grew 4.7% and rents…

Thank you, Steve, we have successfully executed multiple strategic objectives this quarter. First we have closed on the first tranche of the sale, that will transform our office portfolio, from suburban to predominantly urban product. Second we have reinvested the capital in a lower risk, higher growth, value add, multifamily opportunity embedded with multiply phases of NOI accretion. And finally, we have successfully raised equity capital for the first time since 2009 and expect the further strengthen our balance sheet by year end. Following the sale of our suburban Maryland office assets this year, our portfolio will be predominantly located in the heart of downtown DC and in urban infill centers in Northern Virginia. Our multifamily portfolio is almost entirely located inside the beltway and in well-amenitized, transit-linked neighborhoods. And finally, our retail portfolio is located in strong neighborhood centers across the region and is embedded with excellent long-term re-development opportunities. We have maintained our strategic direction and improve the performance of our portfolio through challenging market conditions. Washington REIT remains [indiscernible] on the Washington Metro region, which is showing strong signs of a recovery led by robust private sector growth. We are much stronger company today and among the best positions to benefit from a continued recovery in the Washington Metro region. With that operator, please open up the call for questions.

Thank you, at this we will be conducting a question and answer session. [Operator Instructions] our first question comes from line of Blaine Heck [Wells Fargo Securities]. Please proceed with your question.

Thanks. Steve, on the total same-store NOI guidance, well thus far this year we have seen same-store NOI of 2.5% and now 3.9%, so I think guidance implies a material drop to averaging around negative 1% for the rest of the year. So first of all, is that in the right ballpark? And if so, it seems like the drop is more than weather related. So is there something else that might be a headwind in the second half I'm not thinking of?

Blaine this is Steve I think as we pointed out clearly we have raised the guidance overall for the year. The comps are tougher in the second half to the year and it is we had the mildest fourth quarter and last year, so we are expecting a normal winter and normal utility in weather related costs in the fourth quarter in our current guidance and we basically had none last year. We have also recognized that we are having record heat so far in the third quarter so we are projecting higher utility cost in the third quarter. That said, that’s going to affect the office and the retail portions of our portfolio more. We are still affecting same-store growth in multifamily in both the third and fourth quarter.

Okay, that's helpful. Then Tom or Paul, concessions in the market remain substantially higher than any other market, so can you just give a little bit more color on market fundamentals and whether there is anything out there that you see that gives you hope that leasing costs might decrease in the future?

Blaine its Tom, as we announced this in previous calls we do see TIs remaining stubbornly high. I think a lot of that is just the fundamental shift in the market in terms of what demanding. And the offset for us has been we are getting generally a little longer times we are getting a little better platform. And those things are offsetting somewhat the higher concessions. I would like to believe that we are going to see that as the market tightens, we are going to see that turnaround but DC has been 8%, 9%, 10% depending on the submarket vacancy. Usually you start to see the free rent get burn off little bit and TIs start to squeeze down, that is not really occurred. And I think a lot of that is just tenants are demanding a high TIs, because they want better space, because they are shrinking their footprint, They are taking less space per worker and so we consequently want better space. I think that's what we are seeing. Additionally, I think just to make sure we are apples-to-apples on our comparisons versus our peer group, I think we include incentives in our numbers and I know that might skew our numbers a little bit on some of the comparisons, but anyway I think overall the answer to your point is that concessions are remaining somewhat stubbornly high.

Just to follow-up on that, I would have thought that concessions just as a percentage of rent would be higher for suburban office properties than CBD and therefore we would see that ratio kind of migrate down for you guys now that you have gotten rid of some of the suburban properties. So I'm curious if that is actually the case or is it actually the opposite in D.C. where concessions kind of as a percentage of rent are higher in the CBD?

Again, I think the suburban concessions are high in a lot of the new leasing and especially we saw that at Silverline on our lease up there, some of the other spaces, but the CBD frankly this is a market phenomenon where the concessions are staying high across the board. A lot of its driven by the new product that has to offer significantly high TI and pre rent packages to attract tenants.

That’s helpful color. thanks guys.

Our next question comes from the line of John Guinee [Stifel Nicolaus]. Please state your question.

Just kind of continuing on that thought process, Tom, is the market now essentially turnkey TI, turnkey moving costs all paid and that is ending up driving the high concessions? And then can you talk a little bit about where there is actually velocity in activity and which submarkets appear to have very little or no tenant interest? And particularly talk about the stubbornly high vacancy in the Rosslyn Balston Corridor, all without talking of book .

Yes, I think I'm going to make some comments I think Paul wants to make a few as well. The, first of all one of the changes that has been again sticking and especially in the CBD is where tenants are asking for a certain percentage of the free rent to be able to be converted to TIs or moving expenses or soft cost things like that. That imply, they want a turnkey solution for the build out and essentially they move out one day moving to the other place and come out of pocket very little. So, I think that's sort of validates your point there on the turnkey. We are not providing a turnkey solution per say but that's how They are getting to it. I think going to activity levels we continue to see really good activity in the smaller mid size segment, I think that's where our portfolio competes very well, even in the B product. As long as you are near metro, okay, metro is still the key, we are seeing good activity and not only the downtown is important to be a close for Metro but especially in the suburbs, if you are not near Metro, I think Paul has some stats that he wants to refer to the amounts of absorption near Metro. But I think Metro is the key and that’s where the activity is now to RB and then specifically into Rosslyn, look, I think Crystal city is making very aggressive deals. They been able to attract tenants out of those markets and I think that has continued to impact those markets, if you take 1812 out of the mix in Roslyn. It’s not quite as bad it looks. They are doing some deals at the Twin Towers and some other places, so you are seeing decent activity in Roslyn sort to pick up so, on balance, I think it’s a just a little bit of a cannibalization of one market to another.

John, it's Paul. The only other things I would add, I mean, when we look at the second quarter activity, stepping back for a second for the district, let’s call its overall 12% vacancy, suburban markets kind of averaging around 20, so defiantly have and had knots. When we look at Northern Virginia that probably had a pretty tough year last year, I mean looking at the second quarter statistics, there were 41 leases done over 21,000 square feet, which is over double the quarterly average. So it’s defiantly more activity out there, I agree with Tom, the tenant eating contest between RNB and Crystal City will continue until they get the kind of more balance levels. But one thing that is clear, especially in Northern Virginia, if you were within a half mile of a Metro, in the aggregates the buildings in the deal they got. There was 1.8 million square feet of positive absorption and the office front, but you are off Metro over a half mile, there was 1.3 negative absorption on deals and so. I think the trend is pretty clear, downtown, I think we concessions to death on this call, but downtown I think that, we are still comfortable with the activity that we are seeing in the CBD. I mean we talk a little bit about, in our narrative about the work that we are doing on the Army Navy Club and this time last year, when we were first putting the pen to paper thing here is how we wanted to roll out. I think we were in the low to mid 60’s as what we are performing in rent. Right now for the top floor, the Army Navy Club, we have got proposals out low to mid 70. So we are seeing some moment, I think that, that they were trying to follow the appropriate size tenants for the four place but commenting on markets that we like and we don’t like it’s probably too broad, we are still big believers in the CBD. We actively continue to look for value-add opportunities, in and around Metro sides, downtown here, I say probably the CBD in the east end and may be just dipping our toe into the west end. I think the suburban market is really a market-by-market hunt, and we are not really looking there right now.

Okay, and then just refresh our memory, the advisory board was going to move to a big build to suit. Did that ever get financed and did that build to suit ever break ground?

So they are moving, they got their equity deal put together - I don’t know all the terms of financing John, but we are still planning on having them, relocate from the property June 1, 2019.

Okay, thank you.

Thank you John. Olympic performance.

Our next question comes from the line of Michael Lewis [SunTrust Robinson Humphrey]. Please state your question.

Thanks. I missed some of the cost numbers on the six imbedded value add projects that you have. So what's the total incremental cost to generate that $27 million to $29 million of incremental NOI?

Michael this is Steve. I am trying to remember, go back in my head. So we had the Army Navy and that’s about $4 million that’s imbedded in our capital plan for this year. We have Spring Valley which is about $5 million and that’s also in our plans for this year already so when we talked about our capital plans for the year that’s already covered. We have talked about the renovation programs. We have got two big ones ramping up, that are underway now The Wellington and now the Riverside. We have said over the next three years, we are going to average about $7 million a year totaled somewhere around $20 million between now and the end of 2018. And then, I think the rest of it is our development, which is primarily the 400 or so additional units at the Wellington that we call The Trove. And we are estimating about 550 units at Riverside. If our research supports, delivering at the right times we think we will go in the ground in early 2017 at the Wellington. And if research still supports delivering on Riverside we will probably breakdown in the second half of 2018. And I’m looking for the cost numbers on that. Hold on a second. Somewhere around maybe $250 million to $260 million I mean we are still obviously in drawings and approval from the Riverside that’s out there and this likely to be done more in phases, not all built at exact same time. In terms of capital requirements assuming that we are on the earliest possible timeframe, the years that they would overlap would be 2018 and 2019. And I think you are in the $70 million to $75 million probably peak spend on this two developments. And if say we equitize it at the same capital structure right now. And we are looking somewhere $340 million to $345 million equity per year, when we get out to those year. I think it’s totally manageable. So that’s how we are thinking about the cost.

Okay, it's over a period of time but it's about $300 million to generate almost 30 million of NOI, so not a bad deal there. My second question, I don't know much you can share if anything, but I was wondering if you could talk about cap rates on those Maryland office sales, either during the quarter or what the overall cap rate will be when you sell these last two. However much you are able to share on pricing there. And then maybe also the cap rate on the apartments you bought during the quarter.

Michael its Tom, so once we are completed the final pieces of the Maryland sale including the asset that we are investment finals on right now, we will be in the upper seven, the number that is out there is clearing 200 a foot on the office portfolio. So, we are consistent with that and then on the Riverside acquisition we were in the upper five going in very quickly stabilizing into the [success] (Ph).

And then just one last one, this is kind of a follow-up on the guidance and the same-store NOI and what it implies for the second half of the year. It sounds like expenses are going to have a material impact. So you've been putting up positive rent spreads for I think several quarters. There hasn't been much market rent growth. In the second half, are we getting close to where those rent spreads are maybe under pressure, especially on a cash basis where you haven't had market rent growth while you've had bumps in the portfolio. Is that fair?

We are not projecting major changes in rents as part of our forecast for the rest of the year Michael. It's just the comps and when we had such a mild fourth quarter last year we basically had none of our normal related expenses and this is a much hotter July than we had a year ago, so, we are already recognizing increased utility cost. I think that's more of it and that's on the same-store - but we are still projecting good multifamily growth in the third and the fourth quarter. They are not quite as affected by those types of costs. I think the real change for us is we have executed on a lot of transactions that are improving the company. They are in the non same-store. So, you will see the impact of the acquisition that kicks in the dilution of the sales, the equity offering, the refinancings helping the other way and I think all of that settles out through the balance of the year.

Thanks a lot.

Our next question comes from Jed Reagan [Green Street Advisors]. Please state your question.

How is the reception you are receiving for the two assets you are now looking to sell for the balance of the year? And do you have a rough estimate of the potential proceeds from those sales?

Well Jed we don't really comment on proceed numbers when deals are add onto marketplace. What I will tell you is the multifamily asset we have seen - we have gotten good interest in it. I think that's a continuing trend in this region, multifamily products continues to do well here from a per door number. And then the other opportunity is a small office asset and we have not made a decision right now whether that's going to be sold or not. We are just kind of exploring our optionality on that.

Any color on the location of that building or anything else you can share on that?

South of here.

Okay, and are you seeing any changes in the pricing environment for some of these type of assets, particularly the noncore office type assets?

Absolutely Jed, that's definitely something that we have seen evolve really predominantly over the last quarter. And I would look at it from breaking the investment sales market kind of up in the tranches. Core pricing still is hanging in there. And especially Downtown and DC we are still seeing some good activity. I think asset that just coming out it’s 6010, we think that will do probably do well in the market place, but when you get out into the suburbs, definitely a shift in tone from the lenders that we talk to and then definitely the deals from the opportunities funds that are going into liquidation mode, or recap. We are defiantly seeing more and more continued risk of type measured and I just think that, especially over the last thirty days. I think it got much more pronounced in terms of people are being, or buyers are being more discriminating on the types of risk that they are willing to take, both in terms of duration, price per pound and specifically submarket risk. I’m looking at our pipeline sheet right now, and think two-third of the office is, what we recall value adds last opportunistic, and we think it’s going to be a struggle for probably half of that product to clear the market place. I defiantly think deals even deals that people are showing us Jed, now are like, hey, Washington REIT. would you do preferred equity or would you do a mezz deal means to us there are shortfall taking place in valuations and the capital that is been reevaluated.

That's interesting. If you had to sort of peg a number on the correction or move you see in some of those values or cap rates, could you hazard a guess on the change in the last quarter?

Again, we haven’t really, there is so many products out there right now, but on the closing I would say, kind in the suburban markets 5% feels about right. The problem is, none of these deals have closed, They are tied up. I say downtowns on the quality spectrum haven’t really seen a lot of retreading and reprising. We are seen due diligence period getting extended, we are seeing bid dates getting extended. I think it is, in my experience it tend to be a little bit more red flags than not. But I think that's really more on the riskier product with less duration on the cash flow or in submarket that, historically at higher vacancy rates.

Thank you for that color. You mentioned you are focusing your deal underwriting efforts on office and multifamily primarily. Just curious why retail isn't on the radar screen as much.

Love retail, we will take it anywhere, we can get it, I’m looking at my pipeline sheet right now Tom, Jed, we are tracking right now, 32 office deals, 16 multifamily deals and six retail deals. We just find a good retail, doesn’t really sell as much or doesn’t transact this is much, in this region. I think a lot of people try to do the same thing that we do and that’s looking and improving the credit quality at your tenants and then we are looking at, well position retail potential redevelopment opportunities. But clearly, if I would have look back in the three years that I been here, I would say retail hasn't even amounted to 10% to 15% of our pipeline.

Okay, that's helpful. And just last one maybe for Steve, what kind of rates do you guys think you could issue on 10-year unsecured debt today? And how about 10-year mortgage debt?

You know we just did seven years because we didn’t have an enough proceeds after we did the equity offerings. I think under four on unsecured bond deal, I just think you got to have to clear the bond market I think that we have bigger than just minimal index-eligible size deals. I was actually hoping as one of our capital plans going into the year that we would have enough use to proceeds to do that this year because I think it's smart to term out debt. But I thought it was even better for the company to de-lever and once we did that we didn’t need as much debt. So we went the seven year and then swapped it to fix at 286 for, seven years which we thought it was a good source of capital.

And on the mortgage side, would you be kind of in that similar range as the bonds?

I think so, and again we are not focused a lot on that because we have been trying to un-encumber the balance sheet just to make us a stronger unsecured borrower.

All right. Thanks a lot guys.

Thank you Jed.

Our next question comes from the line of Dave Rodgers. Please state your question.

Good morning. Steve and Paul, maybe a question for you. Following up on the additions at both Riverside and Wellington, I think you said 250 million, 260 million of spend. I think that's about 8.25 yield, and so I guess I'm wondering if that's the number that you are communicating and if that's assuming no land. So I assume that's incremental spend. Maybe an all in yield on that? And the second part of that question would be, you quoted a high 5s on Riverside, did that include the land with the new development? I guess I'm just trying to think on an apples to apples basis if the development relative to acquisition is the same parcel.

All right, this is Steve, I'll take a crack at it and Paul can clean it up if there is something I miss. I am not talking on incremental spend, because I think it was additional capital question that I was trying to answer. So it did not include the land. I think we are working at in the case of the development it’s a Wellington probably in the upper 6s initially and then within three year getting over seven. I think in the mid 6s as Riverside and getting over seven around three years also, it's what we are thinking we are building to on those two assets. The going in cap rate I think it was the other question that you asked, that was initially without the juice of the renovation returns. So renovations returns are going to bump us up into the 6s in the whole project grows into the 7s as they build in layers.

And that gets most of, Steve. I guess the last part of that I would just again, which was the hifi cap rate, was that a fully baked land number or did you kind of break out the development land in that calculation?

The development land has been allocated with development, that land and the investment in the building of the existing assets.

Okay, great, that's helpful. Then maybe last, in terms of funding the [bigger] (Ph) project, clearly the line can handle most of it. Do you have any plans for a construction loan as you move into 2017 for The Trove or even moving into 2018, which I know is a little further out there?

Well once we drawdown on our term loan for re-financing we are going to have very little outstanding on our line I think we can handle - and these are not major spends per year. I think we can handle the construction financing on our line.

Okay, that's helpful. And I guess maybe, Paul, I'll ask you a thought around the incremental dispositions for the second half of the year. I think when you did equity you had kind of pulled back on the potential larger apartment sale in suburban and then obviously this quarter that came back and there is some additional assets that you are looking to sell. Is that just that you feel more opportunistic about sales or are you seeing more and more opportunities to invest and should we see any acquisitions kind of late this year or early next year as a bigger component of the spend?

I think Dave what you are referring to was last quarter there was an asset, suburban office asset that that was out there in discovery pricing. And basically we looked down the road, the asset is performing well and we decided that it was - it remained consistent with what we are trying to achieve in the office space in our portfolio. I think that the apartment asset that's on the market right now is very consistent with us trying to turnover certain assets in our portfolio that we think have reached an inflection point. And then the other office assets that we are toying with bringing to the market in the fall we will make that decision once we have a little bit more price discovery on it. But we have made no resolutions in either directions at this time Dave.

Lastly, I guess the confidence in that acquisition pipeline that you are underwriting the deals, the 32, 16 and six in office, multifamily and retail. Do you feel better, neutral or worse about kind of the ability to go out and buy those accretively, long-term accretively relative to the cost of capital today?

I think look it's really every acquisition we do and as a backdrop we have tried to prove to folks like you and our investors that every time we do a transaction we go in with a mindset that we are here to create value. Okay. The 55 deals that I have reference that I'm glad that you broke out into the three asset classes. I would say that those were deals that are in our universe. Okay, but we are not concurrently underwriting 55 deals. I would say out of those 55, our interest is peaked on probably about five of them. And what that would mean is that we think that there is an opportunistic buy there that we can create value either through management, repositioning or we think that it's in a submarket where one of these closed end funds that’s monetizing the payback. Their LP is in a rip off position and might be in a submarket where we are going to take some leasing risks. I can't emphasize enough though that if you see us doing office deal it's most likely downtown and it's going to be by metro. We are going to remain remarkably consistent in that and then in the B, we still like I said B+ or un-renovated B multifamily space and then as I said earlier, the neighborhood grocery anchored shopping centers, we will go after those if we see one that's appropriate with our criteria.

All right. Thanks for the color guys.

Thank you.

Thank you Dave.

[Operator Instructions] Our next question comes from the line of Chris Lucas [Capital One Southcoast]. Please state your question.

Yes, I guess we are in the afternoon. Good afternoon guys. Just a couple of detail questions. On the development projects at Riverside and Ashby, where are you in the regulatory process for approvals? I know you recently just got the approvals from Arlington County for The Trove. Where do those other two projects stand?

Its Tom, Chris. So on Riverside we have had preliminary meeting subsequent to the counties - that's in the county of Fairfax even though the city is Alexandria, sort of that quasi area out there. And the county wants further densification. I think, we are aligned with that, our plans have been well received and I think, we are progressing through the early phases of that approval process. Ashby on the other hand, just got approval for increase FAR on that side and so we have done some preliminary work on that over the last couple of years. We weren’t sure when the county was going to pay attention to, as specific opportunity for us but it’s just happened in the last month, so we are quickly working on design and development plans at the Ashby.

So as we think about it, is the timing The Trove, the Ashby, then Riverside in terms of the development process? In terms of sort of which ones would sort of start first?

Chris I think The Trove is a go as you know. I think Riverside and Ashby, my hunch would be probably the Riverside would edge it out just knowing, the approval process especially as granular as McLean gets to be. So I would probably stack in that order.

And then, go ahead.

We will keep you posted if there are any changes on that though.

Then the last question for me so we can wrap this up is just on the timing for the anchor lease as the Silverline Center and then the two Michael's leases. When do those hit GAAP rent?

So Michael’s at Bradley is hopefully hitting any day now. We are in final C of O. Cap One at still Silverline that is projected for September and then the other Michael’s lease at Chevy Chase Metro is projected also in the September.

Great. Thanks a lot guys. I appreciate it.

Thank you Chris.

Thanks Chris.

I'm showing no further questions at this time. Now I would like to turn the call back over to Mr. McDermott for final remarks.

Thank you. Again, I would like to thank everyone for your time today, and we hope that you enjoy the remainder of your summer. We look forward to seeing many of you on our upcoming non-deal road shows in the very near future. Thank you everyone.

This concludes today’s teleconference. Thank you for your participation. You may disconnect your lines at this time.