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The increase in mortgage and other financing income of $3.7 This is primarily due to an increase in payroll and benefit costs, including non-cash stock grant amortization and to a lesser degree, an increase in franchise taxes due to a refund received in 2024 and increase in costs associated with adding additional Board members.
I would now like to turn the conference over to Brian Hawthorne, director of corporate finance. Brian Hawthorne -- Director, Corporate Finance Thank you. Our conversion rate of deals approved by our investment committee to letters of intent signed is the highest in over two years at approximately 38%. Please go ahead, Brian.
She is an experienced financial executive with deep knowledge of Grocery Outlet's business and over 14 years of leadership in finance. We continue to experience healthy dealflow, which helped offset the margin impact of our system integration, which we estimate was approximately 130 basis points in the quarter. Hi, it's RJ.
Operator instructions] I will now turn the conference over to Reuben Treatman, senior director of corporate finance. Reuben Treatman -- Director, Corporate Finance Thank you. Frankly, they're prohibitive on a number of projects, specifically if the tenant can't absorb it on an STNL deal. Please go ahead, Reuben.
I would now like to turn the conference over to Reuben Treatman, senior director of corporate finance. Reuben Treatman -- Director, Corporate Finance Thank you. Reuben Treatman -- Director, Corporate Finance Operator, are you there? Reuben Treatman -- Director, Corporate Finance All right. Please go ahead, Reuben.
Dealflow is very strong, and we believe that we are still the best partner in the industry. For fiscal 2025, we will have increased capital expenditures due to a higher number of organic new store openings and supply chain investments, and as a result, higher depreciation and amortization.
This strength is offset somewhat by a softer environment for bank loans and structured finance. As a reminder, market issuance can differ materially from billed issuance with divergence this year driven by declines in unrated debt and sovereign international public finance, which don't impact billed issuance. And then, U.S.
These specific groups further simplified their structures, resulting in a fourth quarter restructuring charge of 61 million, comprised of severance and accelerated amortization of previously granted deferred compensation awards. More and more governments are going to have more difficulties to do deficit financing.
As I've stated in the past, we have yet to see a correlation between sales and retailer demand as evidenced by our dealflow, both in terms of number of deals and square footage when compared to the same period last year, and I'll get into this more in a moment. The equity, the financings, and some of the sales.
And similar in consumer packaged goods, we partner with Deem Finance and Prime Dash to enable small business in the Middle East to automate payments to Coca-Cola distributors. I mean that's really subject to what kind of dealflow and deal activity we see. ppt relates to the run rate expenses for operating the business.
Financing volumes for the GSEs were down 23% year over year to $2.7 The GSEs have been sluggish in their lending over the past 18 months, but we are seeing them lean in on deals over the past month and expect higher volumes from them in the second half of 2024. billion, up 16% year over year. Thank you for your time this morning.
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