Postal Realty Trust, Inc.

Thank you for standing by. This is the conference operator. Welcome to the Postal Realty Trust Third Quarter 2020 Earnings Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Blaine Willenberg, Vice President of Business Development and Capital Markets for Postal Realty. Please go ahead, sir.

Thank you. Good afternoon, everyone, and welcome to the Postal Realty Trust third quarter earnings conference call. On the call today, we have Andrew Spodek, Chief Executive Officer, Jeremy Garber, President, and Matt Brandlein, Chief Accounting Officer. Please note the use of forward-looking statements by the company on this conference call. Statements made on this call may include statements that are not historical facts and are considered forward-looking, including, among others, statements related to the COVID-19 pandemic and its effect on our business, the terms and timing of our pending acquisitions, and the status of our ongoing negotiations with the Pulse Service. These forward-looking statements are covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Obligation Reform Act of 1995. Actual results differ materially from those described in the forward-looking statements and will be affected by a variety of risk factors that are beyond the company's control, including, without limitation, those contained in the company's 10-K filed on March 27, 2020, and its other Securities and Exchange Commission filings. The company does not assume and specifically disclaims any obligation to update any forward-looking statements, whether it's a result of new information, future events, or otherwise. Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operation and adjusted funds from operations. You can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP measures in the company's earnings release and filings with Securities and Exchange Commissions. Additional information can be found on the investor relations page of our website. With that, I will now turn the call over to Andrew Spodek, Chief Executive Officer of Postal Realty Trust.

Good afternoon, and thank you for joining Postal Realty Trust's third quarter 2020 earnings call. As the country continues to navigate the health crisis, we hope everyone remains safe and healthy. We accomplished a great deal in the third quarter with the acquisition of 123 properties, a successful capital raise, and another increase to our quarterly dividend. As a result of our acquisition activity since our IPO in 2019, we have more than doubled our rental revenues and our FFO per share. We also increased FFO per share by 60% on a year-over-year basis. This per share growth, it should be noted, is on a share base that is 70% larger than a year ago. What continues to be an important differentiator for us is that our growth is generated from properties occupied by one of the strongest and most vital government agencies, the U.S. Postal Service. We continue to make meaningful progress on our holdover leases. All of 2019 and 2020 lease expirations have executed LOIs in place, and we have already received over 30% of these fully executed. As we have shared previously, all of the holdover properties remain current with their rent. With this progress in place, we will now be working on our 2021 expirations. In this quarter, as in all prior quarters, having collected 100% of our rents, the reliability of our business remains unchanged. This consistency, coupled with our successful execution of our consolidation strategy, has been a driving force for our growth. Our successful follow-on equity offering allowed us to continue our accretive investment activity. In the third quarter, we were able to acquire 123 properties for $27.6 million. This activity brings our year-to-date acquisitions to over $76 million, and we are optimistic that we can reach and potentially exceed our $100 million acquisition target within our stated average cap rate range of 7% to 9% for 2020. As we continue to execute on our growth plan, we are excited to see increased opportunities to invest throughout the network of postal lease properties. Like so many businesses across the country, the Postal Service leases properties that support various functions or activities vital to its ecosystem and end-to-end logistics network. These locations, which can include warehouse distribution, office, vehicle maintenance facilities, and retail spaces, are all part of our addressable market. These properties can be larger than a typical community post office, adding meaningful scale to our platform. For example, just after the quarter ended, we completed a a $4.6 million acquisition for an approximately 50,000-square-foot office building in Greensboro, North Carolina, which is part of a 22-building office park. We anticipate that these larger assets will be incrementally more prevalent in our acquisition strategy as we move ahead. Another case in point is an opportunity we are pursuing in Warrendale, PA for $47 million that we announced earlier today. The Warrendale property is another mission-critical asset for the Postal Service. From our initial diligence, we have learned that this property is one of only 12 privately owned processing and distribution centers over 300,000 square feet in the entire country. This facility has been essential to the Postal Service since the building originally opened in 1997. The Postal Service occupies approximately 73% of the space with the balance occupied by two other users, bringing the total occupancy to 100%. As a reminder, this property is subject to the completion of due diligence and may not close. In addition to this facility, we have also entered into definitive agreements to acquire 12 properties with an aggregate purchase price of $10.1 million. Formal due diligence has been completed and the majority of these transactions are expected to close during the fourth quarter of 2020, subject to the satisfaction of customary closing conditions. As we add other asset types of postal service-occupied properties, we will continue to target an average portfolio cap rate range of 7% to 9%. We anticipate that our 2020 acquisitions will remain within our target range. From our inception, postal realty has been both a growth and income investment opportunity. Excitingly, our addressable market is large, and our ability to support an increasing dividend is underpinned by our continued growth and the stability of our cash flows. We are proud of the resiliency and strength our business has demonstrated in the current environment. While our original outlook did not factor in the onset of the pandemic or its lingering effects, our adaptability has proven rewarding. We have delivered growth in our results, pursued accretive opportunities, and grown our dividend. We are energized by our prospects and look forward to continuing to outperform. The Board and I continue to defer 100% of our cash compensation for 2020 demonstrating our alignment with our shareholders in seeking to further increase shareholder value. I will now turn the call over to Jeremy to discuss our financial results.