Postal Realty Trust, Inc. Q3 FY2024 earnings call

• Made progress on re-leasing with improved same-store cash NOI visibility and closed first significant disposition post-quarter end.
• Collaborated with Postal Service on multi-tiered programmatic re-leasing approach, with Postal Service devoting more resources to lease execution.
• Projected same-store cash NOI growth: >4% in 2023, at least 3.25% in 2024, and at least 3% in 2025. Newly executed 2023 and 2024 leases have 3% annual rent escalations, increasing portfolio leases with escalations to 21%.
• Completed $64M in acquisitions by Oct 21, with 29 properties under definitive contracts; targeting $90M for 2024 at ≥7.5% weighted average cap rate. Sold two properties in Oct for $6.3M, weighted average exit cap rate 4.9%.
• Amended credit facility, added $50M to term loan maturing 2028, used proceeds to pay down revolver, reducing weighted average interest rate to 4.4%.
• Issued ~732k shares and 252k units through ATM for ~$14.2M in Q3 and through Oct 21. Recurring CapEx Q3 $253k, Q4 expected $125k-$225k. Full year 2024 cash G&A guidance $9.5M-$9.8M, decreasing as % of revenue. Approved quarterly dividend $0.24/share, 1.1% increase from Q3 2023.

No detailed product segment financial performance provided; focus on overall portfolio re-leasing, acquisitions, and dispositions.

• Target $90M in acquisitions for 2024 at ≥7.5% weighted average cap rate.
• 2023 same-store cash NOI growth >4%, 2024 at least 3.25%, 2025 at least 3%.
• Q4 recurring CapEx expected $125k-$225k.
• Full year 2024 cash G&A between $9.5M and $9.8M.
• Quarterly dividend of $0.24/share, 1.1% increase from Q3 2023.

Q: About 10-year duration deals and election risk A: 10-year terms are mutual with Postal Service, not affected by politics Q: Lease spreads A: Don't disclose lease spreads, focus on same-store growth Q: Dispositions and recycling capital A: Buyers approached for dispositions, recycling capital for growth Q: Acquisition confidence A: Not concerned about hitting $90M target, pipeline and timing issues caused Q3 light volume Q: Acquisition environment and cap rates A: Cap rates not significantly changed, more sellers in market