From Citi Research. Pleased to have with us American Healthcare REIT. This session is for Citi clients only, and disclosures have been made available at the corporate access desk. To ask a question, you can raise your hand or go to liveqa.com and enter code GPC26 to submit any questions. Brian, I'll turn it over to you to introduce the company and team, provide any opening remarks, tell the audience the top reason an investor should buy your stock today, and then we'll get into Q&A. Thanks, Nick. Really appreciate being here. This is a great conference. With me is Gabe Willhite, our Chief Operating Officer, and Alan Peterson, our VP of Investor Relations. I think the reality is that we are in a great segment of the real estate population. Supply and demand fundamentals are terrific in our space in the senior housing long-term care. I think that based on that fact, our organic earnings growth has been terrific, and that has allowed us and afforded us a wonderful cost of capital, which is allowing us to grow externally as well. You know, I think if you look at the midpoint of our guidance that we just released on Thursday and Friday of last week, we're talking about nearly 18% NFFO per share growth, which is significant. Top reasons to buy a stock today seem to be good fundamentals, good cost to capital, external growth. Yeah. Terrific fundamentals and quite frankly, you know, very high per share earnings growth. By the way, we're delivering that per share earnings growth while also continuing to deliver. A really safe balance sheet at 3.4 times net debt to EBITDA. Do you think about that growth algorithm internally driven obviously by the fundamentals that you're seeing, externally driven based off of kind of the acquisition opportunities as well as kind of your cost to capital that makes that accretive. Is there any reason to think that the current growth rate, you know, particularly given kind of where leverage is now, could not continue for the near and medium term? Yeah. I mean, I think that the fundamentals in our sector, as I described, are spectacular. I think that you're gonna see... I mean, unless every single day, 10,000 people turn 80 years old, and 80-year-olds are definitely in need of exactly our kind of service that we're providing. We tend to lean into the acuity. Some of our peers are far more independent living. We skew more towards assisted living and skilled nursing, people are in our buildings because they need to be in our buildings, not because they chose to, not because they decided to sell their house and needed to move to someplace else. Yes, as far as supply goes, you know, you're really seeing very little new construction. I think the numbers out today are that less than 1% of the total stock is under construction today. With the supply and demand, yeah, I think you're gonna see a good long period of sustained growth in our segment and feeling very good about long-term fundamentals. I think that, you know, last year we grew our occupancy by 270 - 280 basis points in our RIDEA segments. I don't know if we're gonna grow by another 280 basis points this year, but I do know that the average age of people moving into an assisted living facility is between 75 and 85, and the oldest baby boomers this year are turning 80. We're right in the middle of a period of sustained growth and demand. One of the questions we've been getting from investors has just been on, you know, the topic of MA and the 0% kind of projection. Could you just remind us, you know, how you think about that, you know, in the context of how those contracts work kind of on a state-by-state level and how you see those as really an opportunity to kind of drive, revenue growth for the company? Sure. Great question, Seth. What we're really talking about is in our Trilogy segment. Trilogy is about half skilled nursing business. Within that skilled nursing business, I think the mistake that people often make is they ascribe a kind of inflationary rate increase to that business and think that it's somehow gonna cap the NOI growth because of it, because you're relying on government reimbursement sources. A couple of things that they're missing. One, of their business, that's skilled nursing, about 20% of that is private pay, skilled nursing. That rate is gonna be pushed in the same way that a private rate in AL and IL would be pushed. They've got pricing power there. Secondly, on the Q Mix, the mix of what Seth's talking about between Medicare Advantage, Medicaid, they've got a new thing going on right now. The Medicare Advantage plans, maybe 18 months ago, started having issues with their Five-Star ratings, and their Five-Star ratings are really triggered off of customer satisfaction type scores and access to the best quality operators. Trilogy is one of the highest quality operators in the space. They have a CMS rating of four stars. No other large provider has a Four-Star rating across their portfolio. They have Quality Measures rating above 4.8. I think I'd put that up against anybody as well. The Med Advantage plans are realizing that they are a very high-quality operator that they need to be partnered with, and Trilogy is going through and finding who the best partners are for them from a Med Advantage plan side. A lot of that is driven based on what the rate is that they're willing to pay them. Within Trilogy's Med Advantage mix, they're partnering with the plans that are gonna give them the highest reimbursement so that they can provide the level of care that their residents are used to and that people in the post-acute setting really value. As you get more and more occupied, you can be even more and more selective with the plans that you're partnering with, and that's how they've been able to deliver in their Med Advantage business over 8.5% growth. Year-over-year on the rate side because they're managing which plans they're partnering with. That trend, I can't tell you it's gonna be 8.5 again in 2026, but the main drivers of that trend are still intact. Med Advantage plans still wanna partner with the highest quality operator. Trilogy is still hyper-focused on optimizing those partnerships, and as you get more and more occupied, you have more power to do it. With that kind of growing occupancy, you know, how do you think overall, you know, kind of the sources of payment between, Medicare Advantage, Medicaid, private pay, you know, how is that an opportunity to drive kind of revenue on that side, just, you know, stepping out of just the Medicare Advantage side, but looking at it overall and driving the revenue mix there? That's another great point. Even assuming that rates just grew inflationary, you can still get rate growth on a per patient day basis that's better than inflation rate by changing the mix of residents that you're bringing into your building. Meaning instead of having a high percentage of Medicaid residents that are paying the lowest reimbursement rate, you are getting more and more post-acute admissions and bringing in people that are on Medicare and Medicare Advantage, and that's pushing your overall daily rate higher because those are higher reimbursement sources. That's gonna probably continue to be the trend. I think over the last year, we saw maybe a 2% decrease in the amount of resident days that are in the Medicaid setting. That trend should continue as there are more post-acute admissions coming into Trilogy. You know, one of the other topics that we kinda discuss with investors is just thinking about Trilogy. Can you just kind of explain why it's not, you know, a SNF operator within a RIDEA structure and what makes that unique? Sure. We get that question a lot. SNF RIDE, Who would do that? Who would be that crazy to do that? Our competitors, I think, bring it up sometimes. To be clear, we are not a SNF RIDE company, we're a Trilogy RIDE company. The integrated campus is much different than your typical standalone SNF that relies heavily on Medicaid, that relies heavily on government reimbursement. Within Trilogy, you have approximately half the beds in any, in any given building, which could be 100-120 unit buildings. About half are skilled nursing, about half are AL memory care, independent living. That continuum of care on the campus allows them to do a lot of things that other people can't do. One, you have post-acute admissions in the skilled nursing side that are fueling the occupancy on the assisted living side. About 40% of the move-ins in the assisted living business at Trilogy are coming directly from the post-acute business. If we had that set up across our entire portfolio, where you had the dominant skilled provider, post-acute provider, giving you 100% of the referrals to your AL, our occupancy in our AL business would be measurably higher. That synergy works the other way as well. As people age from independent living, they start to utilize assisted living, and if you need even more care than assisted living, you'll be in a Trilogy skilled nursing bed. The other thing that it does is just structurally. Being able to run a 50-unit standalone skilled nursing business or a 50-unit standalone assisted living facility is gonna be very difficult because there's just too many fixed costs. If you have, if you try to go out and develop a 50-unit SNF, I don't even know if you can do it profitably. If you do that with 120 units because you have a mix of both, you have access to other markets that other people wouldn't be able to enter. If you're providing great quality of care in all those different acuity settings, you're getting the benefit of it as people move across the continuum. I think it's important to think about the history and how we got where we are. You know, Trilogy was started 25 years ago by a man named Randy Bufford. Danny Prosky, our CEO, had a long-standing relationship with Randy Bufford. He knew him for decades. Randy decided that he wanted to build a new and different kind of skilled nursing facility. If anybody here has been to a skilled nursing facility, it's easy to understand that you might think negatively about that. Most skilled nursing facilities are probably a minimum of 30 years old. There's probably a smell associated with them, and the residents tend to stay for a long, long time, and the reimbursement rate that's most prevalent within the building is most likely Medicaid. The reality is that Randy looked at that model and said, "I wanna change this. What I wanna do is I wanna appeal and attract post-acute stay." Somebody who has a fall, somebody who had a surgery, and they can't go home because they can't get better at home, they just need a short-term stay in a place where there are nurses, where there is therapy, where they can get their meds prescribed, and that they can get better. The average length of stay is between 30 and 35 days in the skilled nursing side. Initially, he started out with just skilled nursing beds, and then he realized that, you know, if a resident was ready to leave skilled nursing but not able to go home, he was losing those referrals to an assisted living operator down the street. He said, "Well, I should probably bolt on assisted living here." He did that. Now we have a true continuum of care. We have independent living beds, we have assisted living beds, we have memory care, and we have skilled nursing. The truth is, yes, it can be a continuum of care where somebody comes in initially into the independent living, and then eventually they go to the assisted, and eventually they go to the skilled. More often than not, as Gabe described, it kind of ping-pongs back and forth. We'll get a resident coming in from a fall, from a surgery, goes into skilled, doesn't go home, moves into the assisted. They live in the assisted for several years. They need another procedure. They go to the hospital, they get the procedure done. They're still paying for their assisted living bed. When they come out of the hospital, they move into the skilled nursing wing to get better because the nursing care is there for them. It's really a wonderful combination. Quite frankly, probably, and Gabe says this a lot, if you were going to reimagine care, this is how you would do it. You would have it within one facility. That's how we got where we are. Trilogy is, you know, the vast majority of the assets that Trilogy runs were purpose-built, which means they're newer, nicer. Average age is 10 - 11 years old. You're not talking about the old and, you know, kind of smelly skilled nursing. In one, maybe two final points on that, 'cause this is pretty important. Trilogy is 60% of our portfolio. In a lot of ways, we go as Trilogy goes. I think they have the most durable competitive advantage in our entire portfolio. To be able to compete with Trilogy in the markets that they have is gonna be very challenging for a lot of different people for a lot of the reasons that we just described that are structural and have to do with the physical plant that they've got an advantage over everybody else on. Two, and I think the most maybe underappreciated part of the entire structure is that we don't have a typical management contract with Trilogy that pays a 5% fee on revenue. That concept, which you know, we have incentives throughout our portfolio with our other SHOP operators to address that issue, but none are even close to the alignment that we have at Trilogy that's total bottom line aligned. Their management contract pays a below-market fee on revenue and is heavily incentive-laden with a 3-year LTIP that's based on real EBITDA growth targets that we set. That brings alignment from just the top-line revenue, which can be NOI-producing, but not necessarily. If you bring in a bunch of agency to grow your revenue, that is not helpful for NOI. Brings it all the way down to the bottom line, so you're fully aligned on NOI, and it's also paid in AHR stock. We were the first company, I think, in the space to adopt a management company incentive program where we issue them stock. The real key to that is it allows them to participate and create alignment, participate in the value creation coming from Trilogy, but it also gives them a real financial incentive to help support the other operators on our SHOP, in our SHOP segment. Not all of those guys are as big as Trilogy and sophisticated as Trilogy and have all the resources Trilogy has. By design, we want regional operators that are close to the assets that they manage for us. What you give up when you find those regional operators is sometimes scale and resources. If we can augment those operators with Trilogy scale and resources, we can get the best of both worlds. With our alignment and the contract we have with Trilogy, we've created the right financial incentives to drive that. Maybe on that point of the regional operators, you know, how do you think about how to select new operators to partner with? Kind of what goes into your criteria? What goes into your criteria for selecting, you know, asset acquisitions beyond just kind of the yield? You know, is it any features within location or the building product type that you kind of look for? You know, what have you learned from operating Trilogy that can help your regional partners that you select kind of optimize their productivity? Maybe I'll start. Yeah. Listen, we traditionally select the operator before we select the real estate. We have a painstaking process of underwriting the operators. We are up to nine operators in our portfolio. We much prefer the regional operators. We think that they bring a certain level of expertise, and certainly, you can concentrate within their markets, which allows them to do a better job of marketing, sharing, best practices. We will take sometimes years to underwrite a new operator. Last year, we added two. This year, we may add one more. I don't think you're gonna see us at 20 operators anytime soon, given the fact that we're at nine today. You know, we spend a lot of time getting to know them. We will mystery shop their buildings. We'll go in, we'll see what they look like, how nice they are, how occupied they are. We will track their performance. We will look at their financials. We will get to know, you know, the quality of care, their resident satisfaction, and their employee satisfaction, which we think are two of the biggest drivers for success for an operator. Ultimately, it takes us quite a while before we're willing to add another operator. The reality is, and this speaks to the acquisition side, you know, as I say, we find the operator before we find the real estate. We don't go out and find a building and then look around for the operator we want to manage it. We have the operator in tow. In some cases, it's quite exciting. They will bring us buildings. They may have another capital partner that wants to exit. We have a working relationship with this operator, and they'll say, "Listen, we know that this building is gonna sell. If you give a fair price to the existing owner, then you probably can buy this, and we can stay on as the operator," which is terrific because now we're talking about off-market deals. Other times, we will again have the operator. We find a building that is in their market. We're working with them on other properties. We will have them tour that building with us. We can sharpen our pencils on the underwriting or the pro formas of that building with the operator in tow, as you can imagine. Sometimes they'll say, "Listen, we like the building, we like the location, but the unit mix isn't quite right. We probably shouldn't be buying that." That's great. We'll walk away from something like that. We choose the operator before we choose the real estate. All of our operators, we encourage to share best practices with each other. What we wanna do is be a facilitator of growth for all of them in many different areas. Sometimes that, yes, that comes from Trilogy and taking best practices from Trilogy and rolling them out to other operators. Sometimes that comes from other operators and pushing them through Trilogy and through our system. I think where Trilogy is gonna be most beneficial for the next, probably five and 10 years is helping the regional operators achieve scale. If you look at the NIC data, they predict by 2030 we're gonna be underbedded by 576,000 units in senior housing. The cost to develop that many units, they estimate to be $275 billion. You have to triple the size of the largest healthcare REIT in four years in order to meet that type of demand. We need to scale far faster than people appreciate we need to scale, and the regional operators that we're partnered with need to be built to do that. Trilogy has the playbook to scale in that way without quality degradation. If we can help them execute on that strategy and grow, it'll make AHR stronger because what we're really trying to do is pick the winners from an operator perspective and help them get more and more assets and grow their businesses. Then you mentioned kind of the lack of supply and the projected kind of shortfall of senior housing beds. You know, does that just provide kind of, you know, how do you, how do you kind of balance what residents' ability to pay, the ability to kind of increase rate, and then, you know, how do you ultimately see that that shortfall of beds get solved? Is there anything on the regulatory side that you're worried about there? Good question. Not anything that we've heard about. Our goal is not to price people out of the care that they need. Our goal is to provide the highest quality of care in our buildings so that our operators in our buildings are the preferred ones in the markets that they're in. What that means for rates three years from now, I think is anybody's guess. I'm sure that they'll be higher. I think affordability at the top end, if you're providing the highest quality experience, is very strong. I think the boomers have a lot of wealth that's been accumulated through not only their homes, but also through their trading accounts and even through pensions. I don't see affordability as being a problem at the top end of the experience where you're actually providing the best assets with the best operators and the best outcomes. Yeah. I think that's totally right. I mean, the average length of stay in assisted living is two years. Someone moves in, most typically they've just sold their house, which has appreciated, probably no mortgage on it anymore. They paid it off likely. So you can imagine whatever they're selling their house for is gonna be more than enough for them to be able to afford to move into an assisted living for a two-year period of time. I think, you know, most importantly, especially true at Trilogy, is we're proving out every day sort of the benefit that the quality of care that they're getting and the value proposition associated with being in one of their buildings. Just within the SHOP portfolio, you know, how much is AL? How much is IL? You know, what's kind of the optimal mix there, as you think about that, and what are kind of the margins of those as you think about those different pieces? Within our SHOP portfolio, we're a little bit different than others. We're probably more focused on the defensive nature of healthcare real estate, and that means that within SHOP, you're more focused on assisted living than you are on independent living. Assisted living is more a needs-based product. You need help with activities of daily living in assisted living. In independent living, it's more of a lifestyle choice. You're probably sick of mowing your yard and taking care of your house and having a windstorm come through and need to fix your roof and all that. You just want an easier life that's more curated for you. In our portfolio, we're about 80% assisted living and about 20% independent living because we saw through the last recession when people have a hard time selling their house or even when home values go down, the reluctance to sell your house into a declining market is real, and that can have impact on occupancy in independent living. It can have impact on the strength of rate in independent living that assisted living is more insulated from. The trade that you get in exchange for that defensiveness is lower margin. Assisted living is gonna be a lower margin business because you're actually providing a human element, a care element that costs something. You get less flow through to NOI for every incremental bed because there is a staff requirement for it. We're willing to make that trade for the defensive qualities of it. You're also charging more for assisted. I mean, to state the obvious. There's a question that came in kind of on this topic. It's really just the opportunity to improve that operating margin. Mm-hmm. You kind of walk through the structural impediments to the margin relative to maybe other sectors. You know, where do you see the opportunity there on the efficiency side? I'd imagine it has to be on the expense side. Yeah, a little bit. On the expense side, the biggest expense line item in senior housing is labor always, right. The first thing you wanna do is make sure you're not using agency labor, third-party labor. That could be 2x per hour of what a typical person would get paid, and it's not because that person's getting that 2x. It's the agencies, staffing agency is getting that profit. You need to get rid of agency. We've largely done that in our portfolio. I don't see that as a big problem right now, and accordingly, I don't see it as a great opportunity. I think overtime is still higher than it needs to be in this space, and we're working on things that can push that down. Staffing solutions within the senior housing industry, I think are becoming better. I think AI can play a role in that and help keep your costs down on the labor side of it. Really, there's probably more growth coming on the rate side than there is on the expense management side. From a rate perspective, I think across the board, we're seeing people raise rates that are, the increases are higher than inflation. I don't think that's gonna change anytime soon. I think most operators are trying to get back to a pre-pandemic operating margin, which in assisted living was more like a 30% profit margin, where today our shop portfolio is in the low 20s. You mentioned a few things there, using AI to maybe help with labor efficiencies. Kind of can you talk about how you're using technology, you know, kind of broadly across the portfolio as you think about the opportunities to use it within the healthcare space and provide a better quality of care, in addition, to labor? Maybe just within labor specifically, any initiatives that either Trilogy or your regional operators have implemented to kind of, improve retention and kind of where does retention, sit today relative to maybe pre-pandemic, and how has that changed? Retention's getting better. I think the labor market is better in the markets that we're in. I think Trilogy's obviously very focused on it. The reason is that, and I got this totally backwards when I started working at AHR 10 years ago. I thought that we were tracking employee satisfaction to just see how employees were talking about the business. It's really a canary in the coal mine on what the resident experience is like. If you have happy employees, then those happy employees are providing a different quality of experience for the residents in the building. That's been crucial for Trilogy's execution for a long time and something that the other operators that we partner with understand and appreciate. We lean into employee engagement. We lean into employee surveys being useful to judge employee satisfaction. Fixing leadership issues within the community is probably the number one thing that people ask for and want. Trilogy makes deep investments into their employees through training and also, taking people that have come into the building, maybe a facilities maintenance type role, and helping them see a real career path at Trilogy. I'm not kidding you, they have a actual handout that looks like a marketing collateral for employees that shows you, here is your path to go from minimum wage person to RN, and every single step along the way to get there so that they can see what their career could end up being like at Trilogy. That helps when employees feel like you're actually investing in them, and that's why their turnover is less than 40% in their facilities. That's a incredible number for this industry. On the AI front, just to pivot, over to that, we're looking at everything that we can do. The, the real advantage that we have is Trilogy can be a test kitchen of sorts for a lot of different things, and also has enough scale to be able to develop proprietary things themselves. I don't wanna, in a public forum, give the entire world the exact playbook on what we're doing, but I'll tell you that I think it's gonna be very important for revenue management and setting of rates, especially as we move along the next five years to be very, very highly occupied buildings, and we're dependent on rate management to drive NOI instead of occupancy gains. I think from a search engine optimization perspective, that AI can be helpful, some of the tech solutions that Trilogy's working on can be helpful and can be expanded throughout our portfolio. I think, there's two other ways that are kind of interrelated. In the skilled business, coding and getting paid for the services that you're provided is a incredible headache and takes a lot of people to do it and do it well. If you can automate that through AI, which Trilogy is doing now and testing, not solely, they haven't reduced headcount dramatically to do this. I think over the next couple years, you could see a situation where that becomes the norm, and they're using AI to help make sure that they're actually getting paid for the care that they're providing and takes away some of the time that people need to spend working on that. Then, the final component I think maybe is the most interesting, but will take more time, is just how can you use AI for predictive analytics around care? If you have AI reading electronic health records and understanding, for example, what prescription somebody just went on, and you can adjust the care plan accordingly to address issues and predict them before they happen. Let's say you go on a new prescription that people know will cause dizziness when you first go on it. They can adjust the care plan and say, "All right, when Gabe goes to the dining room, somebody needs to walk with him so that he doesn't have a fall." It's minimizing the risk of bad outcomes and taking data and even wearable technology to give you vital signs to see what's going on with the residents and actually do something about it before it leads to a worse situation and maybe a hospitalization. We have a handful of other questions that came in through live QA, so just wanna get to those. One is, how has the average stay duration for, I guess, both, on the senior housing side developed over time? Do you see a positive impact, if people start to live longer just based off of some of these advancements that are underway right now? Longer length of stay should mean higher occupancy. I think that's You can see the thread connecting those two things. I think the interesting thing, and maybe it's counter intuitive, is in assisted living, your average length of stay is two years shorter. In independent living, I would say it's more like three years. If you're really high-end independent living, I think people are moving into those at an even younger age. That could be even more than three years. It could be five, seven years. If you believe that it's more difficult to raise in-place rents on residents than it is to raise the street rate. I think you would prefer to have a shorter length of stay and more turnover in your building because you're capturing the loss to lease from the street rate. If you don't think that's a thing, then yeah, the longer length of stays would be preferred because of the occupancy effect. In our portfolio, we're more focused on street rate optimization than we are necessarily pushing the in-place because the in-place rent... Don't get me wrong, we need to pull every lever, and that's important. But there is friction between the people that are in the building providing care and taking care of residents and what they're willing to do from a rate-pushing perspective on the people that have already moved into the building. Less friction if you're just saying, "Hey, we're a high-quality provider. Let's capture the value of that quality to somebody who's coming in and doing a tour," and you're saying, "This is our new rate," than there is on somebody who's in the building. The other question is, we've touched on this a bit, but maybe more on the federal level. What do you think of the current administration's healthcare plans, and how could it impact your company? We haven't got a question about the minimum staffing rule in a minute. I don't think that's on your list either. I think from a regulatory perspective, it seems better. We don't have the same overhanging concerns that we thought we might before. There were some discussion in the past years about addressing which REITs and private equity can own healthcare. I think that was an interesting development. That's much harder at the federal level with the current administration. Yeah. I think the federal government, you know, certainly had Medicaid and Medicaid funding on their radar. There was a lot of consternation about that. As predicted, they chose to attack sort of the eligibility side of it as opposed to the reimbursement side for skilled nursing. It seems as though as an industry, we've been able to withstand any concerns there. I think that the federal government realizes that if they were to cut the funding for skilled nursing stays by any reasonable amount, I think that they would be putting a lot of companies out of business. The margins on those are very thin. Theoretically, skilled nursing providers should not be getting rich. I think that they have understood that from past cuts. I think we're in a pretty good shape as it relates to reimbursements. Maybe just on the SHOP side, you know, we get a lot of questions about when will new supply kinda come back. You know, do you guys have a view on when we could start to see a material pickup in SHOP development? Then just kind of with your acquisitions, like, where are you acquiring today versus replacement cost? In the context of when you think supply could come back, how much would rents need to rise? Yeah. Well, we're getting into the lightning round now. No, I think we're continuing to be able to buy below replacement cost, but we're certainly approaching it pretty rapidly. I think that construction probably pencils today at the very high end when you're charging really, really high rates. I think that in the more moderate level, I don't know that it pencils today. It all depends on what your cost to capital is and what you're willing to accept from a development yield. I don't know if it makes sense today, but I think it probably will very soon. I think in order to be able to get your desired returns, you probably need to underwrite double-digit rate growth in the next two years. While I think that there's a chance that happens, I don't think it's a guarantee. My guess is construction probably starts to pick up in 2027, maybe 2028. The reality is it takes a while. It usually takes one year to get permits, two years to build, and two years to stabilize. The reality for us, having already facilities on the ground, is that it's gonna be a while before we're gonna see much of an impact on our occupancies. Perfect. Really rapid fire. Same store NOI growth versus, or, senior- A couple. Senior housing next year in 2027. Yeah. Well, for a couple of us that are predominantly in the long-term care business, it's gonna be good. It's gonna be double digits, low double digits. The majority of the healthcare REITs are more Triple Net based, so it's gonna be much lower. More, fewer, the same number of healthcare REITs a year from now? I mean, you know, we've all heard what's out there, that there's a couple companies. The reality is I think there should be fewer, but there's gonna be more. Thank you. Thank you.