Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 10, 2024

POSTAL REALTY TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland

001-38903

83-2586114

(State or other jurisdiction of Incorporation or organization)

Commission File Number

(I.R.S. Employer Identification No.)

75 Columbia Avenue

Cedarhurst, NY 11516

(Address of principal executive offices and zip code)

(516) 295-7820

(Registrant’s telephone number)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-I2 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.I4d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.01 per share

PSTL

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

Postal Realty Trust, Inc. (the “Company”) issued a press release on January 10, 2024 that provided an update on the Company’s portfolio, collections, acquisitions, capital markets activity and financial position for the quarter ended December 31, 2023. The Company also provided an update on its portfolio and balance sheet at year-end as well as on its acquisitions for the full year of 2023. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information in this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act except as set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.


			(d)			Exhibits.


Exhibit No.						Document
99.1						Press Release of Postal Realty Trust, Inc., dated January 10 , 202 4.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 10, 2024


			POSTAL REALTY TRUST, INC.

			By:			/s/ Jeremy Garber
						Name: Jeremy Garber
						Title: President, Treasurer and Secretary

Exhibit 99.1

Postal Realty Trust, Inc. Provides Fourth Quarter and Full Year 2023 Update

-Acquired 223 Properties for $78 Million in 2023

-Full Year 2023 Weighted Average Capitalization Rate of 7.7%

-96% of Debt Outstanding Set to Fixed Rates

-No Near-Term Debt Maturities

CEDARHURST, N.Y., January 10, 2024 (GLOBE NEWSWIRE)-- Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 1,900 postal properties leased primarily to the United States Postal Service (the “USPS”), ranging from last-mile post offices to industrial facilities, provided an update on its portfolio, collections, acquisitions, and capital markets activity for the fourth quarter of 2023. The Company also provided an update on its portfolio and balance sheet at year-end as well as on its acquisitions for the full year of 2023.

For the full year 2023, the Company acquired 223 properties leased to the USPS for approximately $78 million, excluding closing costs. These properties comprise approximately 532,000 net leasable interior square feet and have a weighted average rental rate of $12.86 per leasable square foot based on rents in place as of December 31, 2023. These acquisitions were completed at a weighted average capitalization rate of approximately 7.7%.

Andrew Spodek, Chief Executive Officer, stated, “2023 was another strong year for Postal Realty as we added 223 last-mile and flex properties to our portfolio at a weighted average cap rate of approximately 7.7%. We have continued to execute our consolidation strategy by acquiring attractive assets that are important to the Postal Service. We have prudently managed our balance sheet with no near-term debt maturities, 96% of our debt currently set to fixed rates, and $141 million undrawn on our revolving credit facility. Our experienced leadership team, stable cash flows, and strong balance sheet give us confidence that we will continue to create value for our shareholders in 2024.”

Fourth Quarter & Year-End 2023 Update

For the fourth quarter of 2023, the Company collected 100% of its contractual rents and acquired 75 properties leased to the USPS for approximately $20.7 million, excluding closing costs, comprising approximately 153,000 net leasable interior square feet. These acquisitions were completed at a weighted average capitalization rate of approximately 7.7%.

The Company’s owned portfolio was 99.7% occupied comprised of 1,509 properties across 49 states and one territory with approximately 5.9 million net leasable interior square feet and a weighted average rental rate of $9.37 per occupied leasable square foot based on rents in place as of December 31, 2023. The weighted average rental rate consisted of $11.52 per occupied leasable square foot on last-mile and flex properties, and $3.55 on industrial properties.

At the end of 2023, 96% of the Company’s debt outstanding was set to fixed rates and $141 million of the Company’s senior unsecured revolving credit facility was undrawn. The weighted average interest rate of the Company’s total debt outstanding was 4.14%.

During the fourth quarter, the Company settled 198,847 shares of common stock under previous forward sales transactions at a gross sales price of $15.02 per share and issued 227,256 additional shares of common stock at an average gross sales price of $14.32 per share through its at-the-market equity offering program. In addition, the Company issued 450,818 common units in its operating partnership at an average price of $14.01 per unit as part of the consideration for properties acquired during the quarter.

About Postal Realty Trust, Inc.

Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 1,900 postal properties leased primarily to the USPS.

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 acquisition activity, are based on the Company’s current expectations and assumptions regarding capital market conditions, its acquisition pipeline, 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 and the Company’s other tenants, competitive, financial market and regulatory conditions, disruption in market, general real estate market conditions, the Company’s competitive environment and other factors set forth under “Risk Factors” in the Company’s most recent filings with the U.S. 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.

Investor Relations and Media Relations

Email: Investorrelations@postalrealtytrust.com

Phone: (516) 232-8900

Source: Postal Realty Trust, Inc.

Cover	Jan. 10, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 10, 2024
Entity Registrant Name	POSTAL REALTY TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-38903
Entity Tax Identification Number	83-2586114
Entity Address, Address Line One	75 Columbia Avenue
Entity Address, City or Town	Cedarhurst
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11516
City Area Code	516
Local Phone Number	295-7820
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, par value $0.01 per share
Trading Symbol	PSTL
Security Exchange Name	NYSE
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001759774
Amendment Flag	false