Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an
internally managed real estate investment trust that owns and
manages over 1,800 properties leased primarily to the United States
Postal Service (the “USPS”), ranging from last-mile post offices to
industrial facilities, today announced results for the quarter
ended September 30, 2023.
Highlights for the Quarter
Ended September 30, 2023
- Acquired 70 USPS properties for
approximately $24.2 million, excluding closing costs
- 17% growth in revenues from third
quarter 2022 to third quarter 2023
- Net income attributable to common
shareholders was $1.2 million, or $0.04 per diluted share
- Funds from Operations ("FFO") was
$6.3 million, or $0.25 per diluted share
- Adjusted Funds from Operations
("AFFO") was $6.9 million, or $0.27 per diluted share
- Subsequent to quarter end, the
Company announced a quarterly dividend of $0.2375 per share
"We delivered another successful quarter, adding
over $24 million of postal properties to our portfolio and bringing
us closer to achieving our 2023 acquisition target of $80 million.
We are encouraged by the increase to transaction volumes and have
managed to acquire at the top of our weighted average cap rate
range this quarter,” stated Andrew Spodek, Chief Executive Officer.
“Although we are optimistic about acquisition activity over the
long-term, we will remain patient and diligent with deploying
capital. Our business occupies a unique and niche space that has
proved its resilience in past and present economic cycles, and we
have invested in the growth of our company while maintaining
conservative leverage. We are in a strong financial position with
plenty of available liquidity and the financial flexibility to
continue expanding our portfolio.”
Property Portfolio &
Acquisitions
The Company’s owned portfolio was 99.7%
occupied, comprised of 1,434 properties across 49 states and one
territory with approximately 5.7 million net leasable interior
square feet and a weighted average rental rate of $9.27 per
leasable square foot based on rents in place as of
September 30, 2023. The weighted average rental rate consisted
of $11.46 per leasable square foot on last-mile and flex
properties, and $3.55 on industrial properties.
During the third quarter, the Company acquired
70 last-mile and flex properties leased to the USPS for
approximately $24.2 million, excluding closing costs, comprising
approximately 165,000 net leasable interior square feet at a
weighted average rental rate of $13.24 per leasable square foot
based on rents in place as of September 30, 2023.
Balance Sheet & Capital Markets
Activity
As of September 30, 2023, the Company had
approximately $2.8 million of cash and property-related
reserves, and approximately $230 million of net debt with a
weighted average interest rate of 4.04%. At the end of the third
quarter, 100% of the Company's debt outstanding was set to fixed
rates (when taking into account interest rate hedges), and the
Company's $150 million revolving credit facility was completely
undrawn.
On July 24, 2023, the Company amended its credit
facilities to, among other things, add a daily simple SOFR-based
option as a benchmark rate. The Company further exercised $25.0
million of term loan accordion under the term loan maturing in
January 2027 and, on a delayed-draw basis, $10.0 million of term
loan accordion under the term loan maturing in February 2028. In
connection with the accordion exercise, the Company also entered
into an interest rate swap that effectively fixed the interest rate
on the $25.0 million of term loan through January 2027 at a current
rate of 5.736%. On September 27, 2023, the Company fixed the
interest rate on the $10.0 million of term loan through February
2028 at 6.049%. The Company used the proceeds from the term loan
accordion and cash to repay the outstanding balance on the
revolving credit facility and fund acquisitions.
During the third quarter and through October 20,
2023, the Company issued 1,313,844 shares of common stock through
its at-the-market equity offering program for total gross proceeds
of approximately $19.7 million at a weighted average gross price of
$15.02 per share. The Company entered into forward sales
transactions for 798,847 of the shares, and as of October 20, 2023,
all shares had been settled. During the third quarter and through
October 20, 2023, the Company issued 240,511 common units in its
operating partnership at an average price of $13.37 per unit as
part of consideration for property acquisitions.
Dividend
On October 23, 2023, the Company declared a
quarterly dividend of $0.2375 per share of Class A common stock.
The dividend equates to $0.95 per share on an annualized basis. The
dividend will be paid on November 30, 2023 to stockholders of
record as of the close of business on November 1, 2023.
Subsequent Events
Subsequent to quarter end and through October
20, 2023, the Company acquired five leased properties comprising
approximately 12,000 net leasable interior square feet for
approximately $1.3 million, excluding closing costs. The Company
had another 15 properties totaling approximately $3.9 million under
definitive contracts.
Webcast and Conference Call
Details
The Company will host a webcast and conference
call to discuss the third quarter 2023 financial results on
Tuesday, October 31, 2023, at 9:00 A.M. Eastern Time. A live audio
webcast of the conference call will be available on the Company’s
investor website at
https://investor.postalrealtytrust.com/Investors/events-and-presentations/default.aspx.
To participate in the conference call, callers from the United
States and Canada should dial-in ten minutes prior to the scheduled
call time at 1-877-407-9208. International callers should dial
1-201-493-6784.
Replay
A telephonic replay of the call will be
available starting at 1:00 P.M. Eastern Time on Tuesday, October
31, 2023, through 11:59 P.M. Eastern Time on Tuesday, November 14,
2023, by dialing 1-844-512-2921 in the United States and Canada or
1-412-317-6671 internationally. The passcode for the replay is
13734924.
Non-GAAP Supplemental Financial
Information
An explanation of certain non-GAAP financial
measures used in this press release, including, FFO, AFFO and net
debt, as well as reconciliations of those non-GAAP financial
measures, to the most directly comparable GAAP financial measure,
is included below.
The Company calculates FFO in accordance with
the current National Association of Real Estate Investment Trusts
(“NAREIT”) definition. NAREIT currently defines FFO as follows: net
income (loss) (computed in accordance with GAAP) excluding
depreciation and amortization related to real estate, gains and
losses from the sale of certain real estate assets, gains and
losses from change in control, and impairment write-downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by an entity. Other REITs may not
define FFO in accordance with the NAREIT definition or may
interpret the current NAREIT definition differently than the
Company does and therefore the Company’s computation of FFO may not
be comparable to such other REITs.
The Company calculates AFFO by starting with FFO
and adjusting for recurring capital expenditures (defined as all
capital expenditures and leasing costs that are recurring in
nature, excluding expenditures that (i) are for items identified or
existing at the time a property was acquired or contributed
(including through the Company’s formation transactions), (ii) are
part of a strategic plan intended to increase the value or
revenue-generating ability of a property, (iii) are considered
infrequent or extraordinary in nature, or (iv) for casualty
damage), acquisition-related expenses (defined as expenses that are
incurred for investment purposes and business acquisitions and do
not correlate with the ongoing operations of the Company’s existing
portfolio, including due diligence costs for acquisitions not
consummated and certain professional fees incurred that were
directly related to completed acquisitions or dispositions and
integration of acquired business) that are not capitalized, and
certain other non-recurring expenses and then adding back non-cash
items including: write-off and amortization of deferred financing
fees, straight-line rent and other adjustments (including lump sum
catch up amounts for increased rents, net of any lease incentives),
fair value lease adjustments, income on insurance recoveries from
casualties, non-real estate depreciation and amortization and
non-cash components of compensation expense. AFFO is a non-GAAP
financial measure and should not be viewed as an alternative to net
income calculated in accordance with GAAP as a measurement of the
Company’s operating performance. The Company believes that AFFO is
widely used by other REITs and is helpful to investors as a
meaningful additional measure of the Company’s ability to make
capital investments. Other REITs may not define AFFO in the same
manner as the Company does and therefore the Company’s calculation
of AFFO may not be comparable to such other REITs.
The Company calculates its net debt as total
debt less cash and property-related reserves. Net debt as of
September 30, 2023 is calculated as total debt of
approximately $233 million less cash and property-related reserves
of approximately $3 million.
These metrics are non-GAAP financial measures
and should not be viewed as an alternative measurement of the
Company’s operating performance to net income. Management believes
that accounting for real estate assets in accordance with GAAP
implicitly assumes that the value of real estate assets diminishes
predictably over time. Since real estate values have historically
risen or fallen with market conditions, many industry investors and
analysts have considered the presentation of operating results for
real estate companies that use historical cost accounting to be
insufficient by themselves. As a result, the Company believes that
the additive use of FFO and AFFO, together with the required GAAP
presentation, is widely-used by the Company’s competitors and other
REITs and provides a more complete understanding of the Company’s
performance and a more informed and appropriate basis on which to
make investment decisions.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking
statements.” Forward-looking statements include statements
identified by words such as “could,” “may,” “might,” “will,”
“likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,”
“estimates,” “expects,” “continues,” “projects” and similar
references to future periods, or by the inclusion of forecasts or
projections. Forward-looking statements, including, among others,
statements regarding the Company’s anticipated growth and ability
to obtain financing and close on pending transactions on the terms
or timing it expects, if at all, are based on the Company’s current
expectations and assumptions regarding capital market conditions,
the Company’s business, the economy and other future conditions.
Because forward-looking statements relate to the future, by their
nature, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. As a
result, the Company’s actual results may differ materially from
those contemplated by the forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include the USPS’s
terminations or non-renewals of leases, changes in demand for
postal services delivered by the USPS, the solvency and financial
health of the USPS, competitive, financial market and regulatory
conditions, disruption in market, economic and financial conditions
as a result of the COVID-19 pandemic, general real estate market
conditions, the Company’s competitive environment and other factors
set forth under “Risk Factors” in the Company’s filings with the
Securities and Exchange Commission. Any forward-looking statement
made in this press release speaks only as of the date on which it
is made. The Company undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.
About Postal Realty Trust,
Inc.
Postal Realty Trust, Inc. is an internally
managed real estate investment trust that owns and manages over
1,800 properties leased primarily to the USPS. More information is
available at postalrealtytrust.com.
Contact:Investor Relations and Media
RelationsEmail:
Investorrelations@postalrealtytrust.comPhone: 516-232-8900
|
Postal Realty Trust, Inc. Consolidated
Statements of Operations(Unaudited)(in
thousands, except per share data) |
|
|
For the Three Months EndedSeptember
30, |
|
For the Nine Months EndedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues: |
|
|
|
|
|
Rental income |
$ |
15,438 |
|
|
$ |
13,181 |
|
|
$ |
44,699 |
|
|
$ |
36,665 |
|
Fee and other |
|
668 |
|
|
|
594 |
|
|
|
2,012 |
|
|
|
1,765 |
|
Total revenues |
|
16,106 |
|
|
|
13,775 |
|
|
|
46,711 |
|
|
|
38,430 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Real estate taxes |
|
2,089 |
|
|
|
1,836 |
|
|
|
6,101 |
|
|
|
5,131 |
|
Property operating expenses |
|
1,917 |
|
|
|
1,346 |
|
|
|
4,955 |
|
|
|
4,106 |
|
General and administrative |
|
3,352 |
|
|
|
3,040 |
|
|
|
11,121 |
|
|
|
9,990 |
|
Depreciation and amortization |
|
4,919 |
|
|
|
4,637 |
|
|
|
14,537 |
|
|
|
12,966 |
|
Total operating expenses |
|
12,277 |
|
|
|
10,859 |
|
|
|
36,714 |
|
|
|
32,193 |
|
|
|
|
|
|
|
|
|
Income from operations |
|
3,829 |
|
|
|
2,916 |
|
|
|
9,997 |
|
|
|
6,237 |
|
|
|
|
|
|
|
|
|
Other income |
|
246 |
|
|
|
44 |
|
|
|
485 |
|
|
|
718 |
|
|
|
|
|
|
|
|
|
Interest expense, net: |
|
|
|
|
|
|
|
Contractual interest expense |
|
(2,446 |
) |
|
|
(1,670 |
) |
|
|
(6,793 |
) |
|
|
(3,467 |
) |
Write-off and amortization of deferred financing fees |
|
(174 |
) |
|
|
(156 |
) |
|
|
(504 |
) |
|
|
(440 |
) |
Interest income |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Total interest expense, net |
|
(2,620 |
) |
|
|
(1,826 |
) |
|
|
(7,296 |
) |
|
|
(3,906 |
) |
|
|
|
|
|
|
|
|
Income before income tax (expense) benefit |
|
1,455 |
|
|
|
1,134 |
|
|
|
3,186 |
|
|
|
3,049 |
|
Income tax (expense) benefit |
|
(19 |
) |
|
|
16 |
|
|
|
(56 |
) |
|
|
(13 |
) |
|
|
|
|
|
|
|
|
Net income |
|
1,436 |
|
|
|
1,150 |
|
|
|
3,130 |
|
|
|
3,036 |
|
Net income attributable to Operating Partnership unitholders’
non-controlling interests |
|
(270 |
) |
|
|
(219 |
) |
|
|
(604 |
) |
|
|
(557 |
) |
|
|
|
|
|
|
|
|
Net income attributable to common
stockholders |
$ |
1,166 |
|
|
$ |
931 |
|
|
$ |
2,526 |
|
|
$ |
2,479 |
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
Basic and Diluted |
$ |
0.04 |
|
|
$ |
0.04 |
|
|
$ |
0.08 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic and Diluted |
|
20,277,417 |
|
|
|
18,554,578 |
|
|
|
19,712,504 |
|
|
|
18,467,581 |
|
|
|
|
|
|
|
|
|
|
Postal Realty Trust, Inc.Consolidated
Balance Sheets(Unaudited)(In thousands,
except par value and share data) |
|
|
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Investments: |
|
|
|
Real estate
properties, at cost: |
|
|
|
Land |
$ |
100,979 |
|
|
$ |
90,020 |
|
Building and improvements |
|
426,230 |
|
|
|
378,596 |
|
Tenant improvements |
|
6,825 |
|
|
|
6,375 |
|
Total real estate properties, at cost |
|
534,034 |
|
|
|
474,991 |
|
Less: Accumulated depreciation |
|
(40,464 |
) |
|
|
(31,257 |
) |
Total real estate properties, net |
|
493,570 |
|
|
|
443,734 |
|
Investment in financing leases, net |
|
16,062 |
|
|
|
16,130 |
|
Total real estate investments, net |
|
509,632 |
|
|
|
459,864 |
|
Cash |
|
2,462 |
|
|
|
1,495 |
|
Escrow and reserves |
|
425 |
|
|
|
547 |
|
Rent and other receivables |
|
5,344 |
|
|
|
4,613 |
|
Prepaid expenses and other assets, net |
|
18,144 |
|
|
|
15,968 |
|
Goodwill |
|
1,536 |
|
|
|
1,536 |
|
Deferred rent receivable |
|
1,443 |
|
|
|
1,194 |
|
In-place lease intangibles, net |
|
14,313 |
|
|
|
15,687 |
|
Above market leases, net |
|
401 |
|
|
|
399 |
|
Total Assets |
$ |
553,700 |
|
|
$ |
501,303 |
|
|
|
|
|
Liabilities and Equity |
|
|
|
Liabilities: |
|
|
|
Term loans, net |
$ |
198,718 |
|
|
$ |
163,753 |
|
Secured borrowings, net |
|
32,823 |
|
|
|
32,909 |
|
Accounts payable, accrued expenses and other,
net |
|
10,610 |
|
|
|
9,109 |
|
Below market leases, net |
|
12,214 |
|
|
|
11,821 |
|
Total Liabilities |
|
254,365 |
|
|
|
217,592 |
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
Equity: |
|
|
|
Class A common stock, par value $0.01 per share;
500,000,000 shares authorized; 21,512,970 and 19,528,066 shares
issued and outstanding as of September 30, 2023 and December 31,
2022, respectively |
|
215 |
|
|
|
195 |
|
Class B common stock, par value $0.01 per share; 27,206
shares authorized: 27,206 shares issued and outstanding as of
September 30, 2023 and December 31, 2022 |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
279,585 |
|
|
|
254,107 |
|
Accumulated other comprehensive income |
|
9,614 |
|
|
|
7,486 |
|
Accumulated deficit |
|
(44,529 |
) |
|
|
(32,557 |
) |
Total Stockholders’ Equity |
|
244,885 |
|
|
|
229,231 |
|
Operating Partnership unitholders’ non-controlling
interests |
|
54,450 |
|
|
|
54,480 |
|
Total Equity |
|
299,335 |
|
|
|
283,711 |
|
Total Liabilities and Equity |
$ |
553,700 |
|
|
$ |
501,303 |
|
|
Postal Realty Trust, Inc.Reconciliation of
Net Income to FFO and AFFO(Unaudited)(In
thousands, except share data) |
|
|
|
For the Three Months EndedSeptember 30,
2023 |
Net income |
|
$ |
1,436 |
|
Depreciation and amortization
of real estate assets |
|
|
4,893 |
|
FFO |
|
$ |
6,329 |
|
Recurring capital
expenditures |
|
|
(97 |
) |
Write-off and amortization of
deferred financing fees |
|
|
174 |
|
Straight-line rent and other
adjustments |
|
|
(42 |
) |
Fair value lease
adjustments |
|
|
(632 |
) |
Acquisition-related and other
expenses |
|
|
81 |
|
Income on insurance recoveries
from casualties |
|
|
(246 |
) |
Non-real estate depreciation
and amortization |
|
|
26 |
|
Non-cash components of
compensation expense |
|
|
1,321 |
|
AFFO |
|
$ |
6,914 |
|
FFO per common share
and common unit outstanding |
|
$ |
0.25 |
|
AFFO per common share
and common unit outstanding |
|
$ |
0.27 |
|
Weighted average
common shares and common units outstanding, basic and
diluted |
|
|
25,632,016 |
|
Postal Realty (NYSE:PSTL)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Postal Realty (NYSE:PSTL)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024