Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $0.28 and adjusted funds from operations (AFFO) of $0.32 per diluted share for Q1 2025, with a projected AFFO of $0.02 per share due to contractual rent escalations in 2025 [15][16] - The weighted average interest rate on outstanding debt was 4.4%, with a net debt to annualized adjusted EBITDA ratio remaining flat at 5.2 times [15][16] Business Line Data and Key Metrics Changes - The company acquired 36 properties for approximately $16 million at a 7.6% weighted average cap rate, adding about 100,000 net leasable square feet to the portfolio [14] - 32% of the portfolio will have ten-year lease durations, and 56% will contain annual rent escalations once all leases for 2025 and 2026 are executed [13] Market Data and Key Metrics Changes - The company anticipates acquisition volume for the year to be between $80 million and $90 million, maintaining a targeted cap rate of 7.5% or above [8][9] - The company has seen a strong acquisition pipeline and active dialogue with property owners, with 75% of acquisitions sourced off-market [10][9] Company Strategy and Development Direction - The company is focused on enhancing internal growth through efficient lease management and has established a programmatic approach with the Postal Service to secure leases ahead of expiration [5][6] - The company aims to strengthen its position as a market leader in postal real estate by acquiring new assets and improving cash flow [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of their properties to the Postal Service's mission and the visibility of cash flows, despite ongoing discussions regarding the Postal Service's budget and operations [11][20] - The company remains optimistic about future opportunities arising from potential changes in the Postal Service's operational focus [23] Other Important Information - The company raised approximately $3 million in equity through an ATM offering program and continues to prioritize decreasing cash G&A as a percentage of revenue [16][17] - A quarterly dividend of $0.02 per share was approved, representing a 1% increase from the previous year [17] Q&A Session Summary Question: Can you provide the gap in cash leasing spreads on the '25 lease renewals? - Management noted that they historically do not provide leasing spreads but have been sharing same-store numbers [19] Question: Can you elaborate on the productive conversations in Washington DC regarding DOGE and USPS support? - Management indicated that while they monitor developments, there has been no material change regarding the Postal Service and DOGE, and they continue to work efficiently with the leasing department [20][22] Question: What percentage of the overall portfolio is expected to have annual rent escalations by year-end? - Management clarified that 56% of the portfolio will contain rent escalations once all leases are executed [27] Question: What are the current cap rates in the marketplace? - Management stated that cap rates have remained steady, with expectations to close the year at or above a 7.5% capitalization rate [32] Question: Are external economic factors affecting acquisition volume? - Management confirmed that external factors like tariffs do not significantly impact acquisition volume, as sellers are motivated by various reasons [33] Question: How is the company underwriting properties in light of potential government reductions in real estate footprint? - Management emphasized the importance of acquiring properties that are critical to the Postal Service's operations, maintaining a high retention rate [35]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $0.28 and adjusted funds from operations (AFFO) of $0.32 per diluted share for Q1 2025 [12] - The annual AFFO guidance remains on track to achieve between $1.20 and $1.22 per share [6] - The weighted average interest rate on outstanding debt is 4.4% with a weighted average maturity of three years [13] Business Line Data and Key Metrics Changes - Occupancy rate is at 99.8%, with significant visibility into future leasing [4] - 32% of the portfolio will have ten-year lease durations, and 56% will contain annual rent escalations once all leases for 2025 and 2026 are executed [10] - In Q1 2025, the company acquired 36 properties for approximately $16 million at a 7.6% weighted average cap rate [11] Market Data and Key Metrics Changes - The company anticipates acquisition volume for the year to be between $80 million and $90 million, maintaining a targeted cap rate of 7.5% or above [6] - Cap rates have remained stable, with Q1 closing at 7.6% [28] Company Strategy and Development Direction - The company is focused on a multi-tiered programmatic approach with the Postal Service to enhance leasing efficiency and drive internal growth [5] - The strategy includes acquiring properties using operating partnership units, which has resulted in 11% of acquisitions since IPO being completed with these units [8] - The company aims to strengthen its position as a market leader in postal real estate by acquiring new assets and improving cash flow [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of their properties to the Postal Service's mission and the visibility of cash flows [9] - There is ongoing dialogue with Congress regarding the Postal Service, but no material updates have been shared [18][20] - The company remains optimistic about future opportunities arising from potential changes in the Postal Service's budget and efficiency [20] Other Important Information - The company raised approximately $3 million in equity through an ATM offering program [14] - The Board of Directors approved a quarterly dividend of $0.02 per share, representing a 1% increase from the previous year [15] Q&A Session Summary Question: Can you provide the gap in cash leasing spreads on the '25 lease renewals? - Management stated they historically do not provide leasing spreads but have been sharing same-store numbers [17] Question: Can you elaborate on the productive conversations in Washington DC regarding DOGE and USPS? - Management indicated that they are monitoring developments but noted that there have been no significant updates [18][19] Question: What is the potential figure for the overall portfolio to have annual increases by year-end? - Management clarified that 56% of the portfolio will contain rent escalations once all leases are executed [24] Question: What cap rates are being observed in the marketplace currently? - Management noted that cap rates have remained stable, with expectations to close the year at or above 7.5% [28] Question: How is the company underwriting properties in light of potential government reductions in real estate footprint? - Management emphasized the importance of acquiring properties that are critical to the Postal Service's operations [32] Question: What percentage of acquisitions were funded with OP units in 2024? - Management indicated that on average, 10-15% of deal flow involves OP units, depending on various factors [40]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $0.28 and adjusted funds from operations (AFFO) of $0.32 per diluted share for Q1 2025, with projections indicating an increase of $0.02 in AFFO per share due to contractual rent escalations [12][6][10] - The weighted average interest rate on outstanding debt was 4.4%, with a weighted average maturity of three years, and net debt to annualized adjusted EBITDA remained flat at 5.2 times [12][13] Business Line Data and Key Metrics Changes - The company achieved an occupancy rate of 99.8% and has visibility into leasing for 2025 and 2026, with 32% of the portfolio expected to have ten-year lease durations and 56% containing annual rent escalations [4][10] - In Q1 2025, the company acquired 36 properties for approximately $16 million at a 7.6% weighted average cap rate, adding about 100,000 net leasable square feet to the portfolio [11][6] Market Data and Key Metrics Changes - The company anticipates acquisition volume for the year to be between $80 million and $90 million, maintaining a targeted cap rate of 7.5% or above [6][30] - The company noted that cap rates have remained stable, closing Q1 at 7.6%, and expects this trend to continue [30] Company Strategy and Development Direction - The company is focused on acquiring new assets and improving cash flow, with a strong emphasis on maintaining low leverage and minimizing exposure to variable rate debt [12][15] - The company is actively engaging with postal service stakeholders and Congress to ensure the value of its properties to the Postal Service's mission [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of their properties and the security of cash flows, emphasizing the critical nature of their facilities to the Postal Service's operations [9][34] - The company is optimistic about its acquisition pipeline and the potential for increased deal flow, particularly in light of the upcoming election [32][33] Other Important Information - The company raised approximately $3 million in equity through an ATM offering program, issuing nearly 140,000 shares at an average price of $14.2 per share [13][14] - A quarterly dividend of $0.02 per share was approved, representing a 1% increase from the previous year [15] Q&A Session Summary Question: Can you provide the gap in cash leasing spreads on the '25 lease renewals? - Management stated they historically do not provide leasing spreads but have been sharing same-store numbers [17] Question: Can you elaborate on the productive conversations in Washington DC regarding DOGE and USPS support? - Management indicated that while they monitor developments, there has been no material news regarding DOGE and the Postal Service [18][19] Question: What is the potential figure for overall portfolio rent escalations by year-end? - Management clarified that 56% of the portfolio will contain rent escalations once all leases are executed [25] Question: What are the current cap rates in the marketplace? - Management noted that cap rates have remained stable, with Q1 closing at 7.6% [30] Question: Are external economic factors affecting acquisition volume? - Management confirmed that external factors like tariffs do not significantly impact sellers' decisions [32] Question: How is the company underwriting properties in light of potential government reductions in real estate footprint? - Management emphasized the importance of acquiring properties that are critical to the Postal Service's operations [34]