Q2 2024 Postal Realty Trust Inc Earnings Call Transcript
Key Points
- Postal Realty Trust Inc (PSTL) added 70 properties for $28 million at a weighted average cap rate of 7.6% in Q2 2024.
- The company successfully executed a $12.5 million ROFO transaction, positioning it to acquire $90 million at or above a 7.5% weighted average cap rate for 2024.
- Postal Realty Trust Inc (PSTL) completed a five-year lease renewal with a significant non-postal tenant, achieving a 19% base rent increase and a 2.5% annual escalation.
- The company maintained a 99% historical weighted average lease retention rate over the past 10-plus years.
- Postal Realty Trust Inc (PSTL) issued approximately 365,000 shares of common stock and 62,000 common units, raising $6.1 million in gross proceeds.
- The company's debt outstanding had a weighted average interest rate of 4.48% and a weighted average maturity of three years, with no significant near-term debt maturities.
- Recurring CapEx was $135,000, slightly below the anticipated range due to timing of some projects.
- The company's net debt to annualized adjusted EBITDA was 6.1x, which is close to their target of below 7x.
- The leasing process with the Postal Service is described as fluid and not entirely within the company's control, causing potential delays.
- The 2023 leases include 3% annual escalations, which is lower than the 3.5% achieved in previous years, reflecting changes in the inflationary environment.
Greetings and welcome to Postal Realty Trust's second-quarter 2024 earnings 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.
Thank you, and good afternoon, everyone. Welcome to Postal Realty Trust's second-quarter 2024 earnings conference call. On the call today, we have Andrew Spodek, Executive Officer; Jeremy Garber, President; Robert Klein, Chief Financial Officer; and Matt Brandwein, Chief Accounting Officer.
Please note, the company may use forward-looking statements on this conference call, which are statements that are not historical facts and are considered forward looking. These forward-looking statements are covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Actual results may differ
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