The following is a summary of the Postal Realty Trust Inc (PSTL) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 2024 Funds from Operations (FFO) of $0.23 and adjusted Funds from Operations (AFFO) of $0.26 per diluted share.
No significant near-term debt maturities with a net debt to annualized adjusted EBITDA of 6.1 times, under the target maximum of 7 times.
Issued approximately 365,000 shares of common stock and 62,000 common units for ~$6.1 million at $14.35 average price.
Business Progress:
Acquired 70 properties for $28 million with a cap rate of 7.6% and 9 properties post-quarter for $3 million.
Achieved a 99% historical weighted average lease retention rate over the past 10 years.
Completed a five-year lease renewal with a significant non-postal tenant resulting in a 19% base rent increase and a 2.5% annual escalation.
Opportunities:
Anticipated increase in transaction volume driven by interest rate cuts and improved cost of capital.
Continued external and internal growth through new acquisitions and leasing improvements.
Risks:
Dependency on the Postal Service for lease renewals and related negotiations which follows a fluid process.
Adjusting financial strategies to align with market conditions, highlighted by the balance of equity and debt financing used.
More details: Postal Realty Trust IR
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