Postal Realty Trust (PSTL) 5 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to Postal Realty Trust Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Jordan Cooperstein, Vice President of FP&A, Capital Markets. Please go ahead.

morning, good and you, everyone. Thank Realty Welcome Conference Quarter Earnings Third to Postal Call. XXXX Trust's

call Andrew Officer; On Officer; we today, the have President; Chief Officer. Klein, Brandwein, Jeremy Spodek, Robert Chief Matt Financial and Accounting Garber, Executive Chief

Securities provisions forward-looking in statements Please on Reform call, the are Litigation are historical covered this that the considered are harbor statements facts note by statements may and XXXX. are for forward-looking. of conference contained company not the Private forward-looking use statements which These Act safe forward-looking

Actual other company results the the risks be a filings. may but in its future new disclaims Exchange differ those related events beyond described statements, any specifically and to, of of control, company's materially affected forward-looking otherwise. XX-K does in assume from limited and obligation variety are as contained Securities not will The statements that to including, any update factors information, and or whether those by forward-looking and Commission and result not a company's the

conference as call, such to non-GAAP debt. refer certain the and from may adjusted company measures net this adjusted EBITDA from financial operations, operations, funds on funds Additionally,

a comparable release measures non-GAAP of reconciliation the most company's to currently You these and find GAAP can the tabular in materials. measures financial earnings supplemental

will I over to of Trust. Andrew the that, now With call Officer turn Realty Spodek, Chief Postal Executive

you us today. thank joining and for morning, Good

visibility have quarter made same-store was and on improved NOI. on third The notable we as cash re-leasing progress

In disposition to we subsequent quarter end. addition, on our closed significant first

approach. has lease resources arrived with process. at the to Moreover, re-leasing programmatic collaboratively we and the process, execution have streamline Postal As our multitiered Service towards the devoted Postal the efforts part of more worked a Service

increased the provide re-leasing, resources with us XXXX. for figures timing coupled to of XXXX improved through methodology, This same-store NOI allowing has

leases and the expire this our and executing of XXXX benefits goal mutual beyond. the been before upon, of agreed they and on have the reaping XXXX Rents approach. are already are working we XXXX leases for already We towards leases

expect to marketing than same-store to NOI same-store X% incorporating internal we be to project we ability figures XXXX at rents XXXX rent strong be in X.XX%, XXXX. annual new least our escalations cash through and leases demonstrate and greater generate We to These in at operating growth growth market, least growth efficiencies. X%. achieving Also, anticipate

The terms newly executed of of all X% percentage provided escalations our to which the leases from tiers in re-leasing annual escalations XXXX contained comfort our subject growth and in to rent certain XX%. to XXXX annual us leases portfolio continued with including process. XX-year increases rent these begin The escalations,

this Postal We result visibility this are flows. excited about will and cash strong into the additional Realty's provide

a million was XX completed additional Through XX, volume $XX properties definitive have year contracts, during bit and under third the in while lighter we October quarter. acquisition placed totaling for the have million $XX an acquisitions

We are for $XX rate at XXXX. above targeting weighted or cap still million average a X.X%

in of Additionally, X properties weighted for purchased $X.X X cap X.X%. a sold of combined million, We these a million. exit average representing for price to sale independent parties October, rate $X.X properties the company

buyer the case, us and to real steady flows each in the approach cash different quite underlying been are properties estate. X having the While attracted strong

future of we which a that York, in located sales One urban is locked for accounts price in an them effectively property potential today New growth.

parcel The interest to had in other acquiring property. a local property in is owner asset the postal where Colorado, last-mile his neighboring the

used XXXX. The to initial facility. proceeds week, sheet, credit revolving our our continue funding to our maturing facility, which an down by assets we to proceeds. is the our explore to expanding While the additional we were included ] will loan [ balance pay to and term last portfolio, In credit our $XX amendment earnings an million announced grow our commitment to goal from reference recycling redeploying in

undrawn stable to a exceptional our of well reliable come. growth, tenant years is believe the cash majority positioned internal Postal for With and flows Realty we from vast

Jeremy. call turn over the now I'll to

Andrew. you, To are our we first may track XXXX on to acquisitions on Andrew's our sentiments, guidance. dispositions Thank meet NOI progress reiterate significant and releasing growth had same-store

representing third had comprised As $XX,XXX expired company net for of second October. aggregate received total quarter, October AD leases leases lump catch-up during during XX, for was fully the of for executed $XXX,XXX leases leases approximately XX% nearly $XXX the the to related executed sum quarter $X.X payment and leases The executed right. executed the the during XXXX million XXXX of

The payment scheduled third fully The for approximately and XXX net representing to XXX received comprised executed October. catch-up expired $XXX,XXX lump quarter and XXXX during aggregate rent. total some leases leases the executed expired was of the XXXX $XXX,XXX to related company executed during $XXX, leases, the for XX% of leases

and to voluntary As third average the to net Andrew X.X% cap The XXX,XXX in company XX-year XX of possesses leases. all properties the rate acquired last of feet portfolio weighted at the from leases mentioned, were quarter XX added XX,XXX annual X% during X% escalations for quarter. end, mile feet to properties and square XX from executed million square XX,XXX million. $XX.X properties feet subject now flex XX portfolio a our square inclusive rent of This lease for acquired properties. $X.X Subsequent company

to I'll discuss financial results. our the over Rob call third now turn to quarter

you, thank today's Jeremy, joining you, and everyone, call. on for us Thank

also term lenders, million to quarter of supportive subsequent end. by XXXX per delivered accordion diluted strong AFFO our we our added $XX quarter, third million our $XX or share we our operations funds to maturing loan funds to from adjusted the share. commitments operations of $X.XX from or loan partnership term FFO and For diluted February with and Thanks in per increased of $X.XX

The and funded X.XX%. loan, proceeds of the rate closing, the loan leaving repay swap, current maturity uplosing Concurrently million fixing an we basis. the into million of XX facility interest on our future our term debt the were entered outstanding rate the outstanding $XX exposure remained interest transaction XXXX on daily a we [ The our funding, to a lowers level date the At fund through the million X.X% term $XX to used credit with and at rate revolving rate near-term plenty us rate interest and capacity significant weighted floating average no to and $X average had a revolver. revolver our the Inclusive maturities. funding of the paydown, rate, weighted gives of interest reduces loan ] of debt growth. to

from net of annualized the QX. third X.Xx, quarter, EBITDA adjusted to At end down for is which the was X.Xx debt

the and proceeds million of During within at our for an in was QX $XX.X XXX,XXX issued total October approximately we common ATM common program partnership Recurring for $XXX,XXX. gross shares approximately average of gross $XX.XX. offering anticipated units range of at XX, and quarter $XXX,XXX our stock through price through our third CapEx operating

anticipate QX, the between figure to to forward and $XXX,XXX be $XXX,XXX. Looking we

cash Our we G&A the to decrease continue full to $X.X percentage Similar on expense as year million. of million and prior cash of basis. revenue an years, for a remains XXXX between G&A $X.X annual

a $X.XX Board quarterly increase dividend X.X% XXXX of Our a share, from dividend. QX approved representing of the per Directors

our any through we well you questions execution and the conservative growth we'd internal remarks, and the leases sheet internal generate concludes Operator? value like our growth. With may stakeholders to line accretive to have. as new for access to of significant balance open and well prepared and external as positioned That are capital, strong to they take a acquisitions the provide

from comes question JPMorgan. first The Paolone with the line Instructions] Anthony of [Operator

to about to it as willing just more just that doing becomes can is is about duration assets USPS default question length? maybe duration talk XX-year talk just that bit is or you that more First these whether Or a certain go just now, relates a deals whether bit a process. that that

Sure. question, the Thanks Tony. for

-- It happy a happy expire. also of with So that those it's to rent a they in that saw the we before the We goal, were these mutual something not front our And to the is Service discussed with is received goal rent the on we default Post both for and of growth Service that Postal to our our sense. seemed We're term. vintages. 'XXs try leases 'XXs. get make lot escalations we with we importantly,

for term given be seems years good factors. idea XX to those out pushing a So the all

Okay. it see those you more you X start like it's just of point, be we do next do think year, the in like to maybe more this along to duration we could as have But at to something doesn't years lines look can portfolio?

of will update think shareholders we the these versus and for for for everybody doing us years for good this XX fluid That sense the assuming makes on through us the Correct. negotiate continue for roll Postal And we we is as percentage as process. the that the leases a that Service a as based development and Service. we X it's and it is on goal, well we're But years. leases, to Post we're receiving, as rents

really Okay. comments was these like And than couple we've out from second of been just leases maybe my years. get last earlier your this to of a the way on newer business what doing intro then knocked over one seeing with them that

election And and so administration? Or that you've should it? bring there change just any just the of remind or kind just way risk their with continue me, changes in doing that, is is been process the [indiscernible]

on the office these that. or stayed in in to front -- play The under while about buying common general really was politics sorry funded that an election lease believe don't position negotiations. I Yes, and deposit

or our going really forward. And that this a negotiations so is I don't believe for today concern

with Kim Securities. comes Next Truist the Ki Bin of from question line

I that cash if talk can the around able you the specifically, And about leases. cap wondering if lease was or you were details more you some achieve? to share can more spreads

I can sorry, couldn't well. repeat very that? you hear I'm very,

the lease If were spreads able to you you that about talk can achieve?

X% disclose our to which not have for very, with, and speak we gave So a of projection happy we do but very to we're 'XX, and leasing greater even we which our everybody, X.XX% growth, relate we for 'XX. do spreads, 'XX X% than same-store for not

help ask then. it components different X% way Okay. you X% projection us a can least growth Maybe 'XX, for -- you the down the I at of at look can it? break When

on, we that as detail more on We on it. more and color as really speak now, don't But give goes really disclosed haven't to may you we it. time of

concentration that we're it We one advantages, with also competitive make have really constantly and doesn't tenant negotiating to a it. with sense disclose for

Okay. Understandable.

be driving projection say somewhat that's other I components of then. Just Would it bit a growth some that you higher. were might XXXX. there sustainable a X% if wasn't little sure last for Is figure? question

So there the company growth. the setting It's of about just store that efficiencies expenses the properties. in a rent go that are can these the number. different get It's same and about not operating also lot into of components we

of are that do as working we with a get be. as you line leases things time sight projection, continue And give front to Service. on where of wanted Post we to to so give as to the goes And to of going and hope to in you these we

The with next line Janney. the Dumanski Steven from question of comes

appreciate they terms insight update forward. I capital opportunities provided relatively of X just the any reblended provide of on such guess, you of see in going more some transacted were rate? on an if why cap And Can a more, I you recycling at more these you dispositions.

I appreciate the question.

out reverse both we and that to were we value that think be were These capital we're undervalued. will are good them these and achieve us. We and were a we own We cap Buyers putting deals sale. value out general, able for approach not were into lower So properties putting should of not value that that this We that believe valued inquiries. Like extracted these the return. attract have we properties in greater there at lot were recycling other These marketed. rates. from of. properties we a

our end, continue to is We acquire is the in itself. company will goal the that growth as presents continue as have. And this company. a and to the grow to opportunity But do we

line Next of question with from Capital Borden BMO comes the Markets. Eric

starting acquisition environment. just Maybe the with

but noted full of XQ volumes expected, you were the maintained year You million. $XX target than that lighter still

I kind look you as giving guess achieve the guidance quarter? So $XX confidence that to in what's you fourth of continue million to acquire to

you. Thank

targets not in are just and And a quarterly by know applies this everybody really by them what I've quarter. the business. our nature, the takes past, I stated is as So

of This the was timing transactions. just like quarter

and concerned see we're reason I'm going not to so down our adjust but our achieve there it. believe going happy very I able I target. target our pipeline pipeline. be of I'm looking after, And didn't forward our to because with to about hitting I'm a increase to our cost capital

end XX just of cutting they That's on years kind helpful. higher to their Or just on Fed maybe given remains rate. today post rate are And expecting the given are costs? volatile pricing better cap And curious, just buyers the then environment, readjusting potential rate still the still environment? that future

lot change sellers' we haven't today a see ago. it, of or do selling a a cap But so let's weren't market, that are and call pricing. the We considering sellers in in that seen year significant of rates expectation

a positive. that's So

Thank have closing you. I comments. turn of [Operator reached Spodek for floor Instructions] the Ladies would and now session. question-and-answer like end Andrew gentlemen, over the to we to

Thank and want the for we connecting all you. of we the to On to today, behalf thank months. coming team, time with and you of taking your entire support us to forward in join the look you

you. concludes This Thank teleconference. today's

may your your this lines You for at disconnect Thank you time. participation.