Postal Realty Trust(PSTL) - 2024 Q3 - Quarterly Results

Third Quarter 2024 Financial and Operational Results Performance Highlights The company reported 22% revenue growth, acquired 35 properties, and successfully renegotiated all 2023-2024 leases Q3 2024 Financial Metrics | Metric | Q3 2024 | Q3 2023 | Growth | | :--- | :--- | :--- | :--- | | Revenues | $19.7M | $16.1M | 22% | | Net Income (to common shareholders) | $1.1M | $1.2M | - | | Diluted EPS | $0.03 | $0.04 | - | | FFO per diluted share | $0.24 | - | - | | AFFO per diluted share | $0.30 | - | - | - Acquired 35 USPS properties for approximately $13.3 million at a weighted average capitalization rate of 7.5%[1][2] - Successfully agreed to new rents on all 2023 and 2024 negotiated leases with the USPS, with all new executed leases including 3% annual escalations[1][2] - Subsequent to quarter end, the company added $50.0 million of commitments to its term loan, strengthening its capital position for future growth[2] Portfolio and Leasing Activity The company's 1,642-property portfolio maintained 99.6% occupancy while advancing lease renewals with the USPS Property Portfolio The portfolio comprised 1,642 properties with 99.6% occupancy and 6.3 million net leasable square feet Portfolio Overview (as of Sep 30, 2024) | Metric | Value | | :--- | :--- | | Occupancy | 99.6% | | Number of Properties | 1,642 | | Net Leasable Square Feet | ~6.3 million | | Weighted Average Rental Rate | $10.11 / sq. ft. | Acquisitions The company acquired 35 properties for $13.3 million, adding 106,000 net leasable square feet to its portfolio - Acquired 35 last-mile and flex properties for ~$13.3 million, adding ~106,000 net leasable interior square feet[4] Leasing Update New leases for 2023 and 2024 expirations now include 3% annual escalations, generating $1.8 million in catch-up payments - As of October 21, 2024, executed new leases representing 55% of 2023 expired rent and 78% of 2024 expired/expiring rent[5] - All newly executed leases are subject to 3% annual rent escalations[5] - Received total net lump sum catch-up payments of approximately $1.8 million ($1.4M for 2023 leases and $0.4M for 2024 leases)[5] Financial Position and Capital Markets The company maintained a solid balance sheet with $277 million in net debt and raised $14.2 million via its equity program Balance Sheet and Debt Management The company managed approximately $277 million in net debt with 84% at fixed rates and $106 million in undrawn credit Debt Profile | Metric | Value (as of Sep 30, 2024) | | :--- | :--- | | Net Debt | ~$277 million | | Weighted Average Interest Rate | 4.51% | | Fixed Rate Debt % | 84% | | Undrawn Revolving Credit Facility | $106 million | Capital Raising and Dividends The company raised $14.2 million in gross proceeds and declared a quarterly dividend of $0.24 per share - Issued 732,266 shares of common stock and 252,198 common units for total gross proceeds of approximately $14.2 million[7] - Declared a quarterly dividend of $0.24 per share, which equates to an annualized dividend of $0.96 per share[8] Subsequent Events Post-quarter, the company acquired 13 properties, sold two, and added $50 million to its term loan commitments - Acquired 13 properties for approximately $4.2 million and placed another 29 properties totaling $10.6 million under definitive contracts[9] - Sold two properties for a combined $6.3 million, representing a weighted average exit capitalization rate of 4.9%[9] - Amended credit facilities to add $50.0 million in term loan commitments, increasing the proportion of fixed-rate debt to 98% and lowering the weighted average interest rate to 4.36%[10] Financial Statements Consolidated statements show a 22% revenue increase and asset growth to $615.1 million, driven by property acquisitions Consolidated Statements of Operations Q3 2024 revenues grew to $19.7 million, though higher expenses led to a slight decrease in net income Statement of Operations Summary | (in thousands) | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total Revenues | $19,667 | $16,106 | | Total Operating Expenses | $14,879 | $12,277 | | Income from Operations | $4,788 | $3,829 | | Net Income | $1,349 | $1,436 | | Net Income Attributable to Common Stockholders | $1,071 | $1,166 | | Diluted EPS | $0.03 | $0.04 | Consolidated Balance Sheets Total assets increased to $615.1 million, primarily from real estate acquisitions, funded partly by increased liabilities Balance Sheet Summary | (in thousands) | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Real Estate Properties, net | $561,376 | $512,730 | | Total Assets | $615,055 | $567,345 | | Total Liabilities | $306,089 | $265,720 | | Total Equity | $308,966 | $301,625 | Non-GAAP Financial Measures The company reported FFO of $7.1 million and AFFO of $8.8 million, reconciled from GAAP net income Reconciliation of Net Income to FFO and AFFO Net income of $1.3 million was reconciled to FFO of $7.1 million and AFFO of $8.8 million for Q3 2024 FFO and AFFO Reconciliation | (in thousands, except per share data) | Q3 2024 | | :--- | :--- | | Net Income | $1,349 | | Depreciation and amortization of real estate assets | $5,729 | | FFO | $7,078 | | Adjustments (net) | $1,679 | | AFFO | $8,757 | | FFO per share | $0.24 | | AFFO per share | $0.30 |