Postal Realty Trust, Inc. Reports Third Quarter 2024 Results

Core Viewpoint - Postal Realty Trust, Inc. reported solid financial results for the quarter ended September 30, 2024, with significant growth in revenues and strategic acquisitions, while also enhancing its capital structure through increased term loan commitments and new lease agreements with the USPS [1][2]. Financial Performance - Revenues grew by 22% from Q3 2023 to Q3 2024, reaching $19.67 million [2]. - Net income attributable to common shareholders was $1.1 million, or $0.03 per diluted share [2]. - Funds from Operations (FFO) totaled $7.1 million, or $0.24 per diluted share, while Adjusted Funds from Operations (AFFO) were $8.8 million, or $0.30 per diluted share [2]. Property Portfolio & Acquisitions - The company acquired 35 USPS properties for approximately $13.3 million at a weighted average capitalization rate of 7.5% [1][2]. - The owned portfolio was 99.6% occupied, consisting of 1,642 properties across 49 states and one territory, with a total of approximately 6.3 million net leasable square feet [3]. Leasing Activity - As of October 21, 2024, the company executed 80 new leases for 2023 and 106 new leases for 2024, representing 55% and 78% of the respective expired rents [5]. - All new leases include 3% annual rent escalations, marking a shift from historically flat rents [2][5]. Balance Sheet & Capital Markets - As of September 30, 2024, the company had approximately $1.4 million in cash and property-related reserves, with net debt of approximately $277 million and a weighted average interest rate of 4.51% [6]. - The company increased term loan commitments by $50 million, with $40 million drawn to pay down the revolving credit facility [2][11]. Dividend Declaration - The company declared a quarterly dividend of $0.24 per share, equating to an annualized rate of $0.96 per share, payable on November 29, 2024 [8]. Subsequent Events - Subsequent to the quarter end, the company acquired 13 additional properties for approximately $4.2 million and had another 29 properties under contract totaling approximately $10.6 million [9]. - The company sold two properties for a combined price of $6.3 million, achieving a weighted average exit cap rate of 4.9% [10].