Postal Realty Trust, Inc.

Greetings, and welcome to Postal Realty Trust Incorporated's second quarter 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jordan Kuberstein, Vice President of FP&A Capital Markets.

Thank you. Good afternoon, everyone, and welcome to the Postal Realty Trust Second Quarter Earnings Conference Call. On the call today, we have Andrew Sodeck, Chief Executive Officer, Jeremy Garver, President, Robert Klein, Chief Financial Officer, and Matt Brandwein, 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. These forward-looking statements are covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control, including, without limitation, those contained in the company's 10-K filed on March 30th, 2021, and its other securities and exchange commission filings. The company does not assume and specifically disclaims any obligations to update any forward-looking statements, whether as 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 operations, adjusted funds from operations, and adjusted EBITDA. 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 supplemental materials. With that, I will now turn over the call to Andrew Sodeck, Chief Executive Officer of Postal Realty Trust.

Good afternoon, and thank you for joining us today. I'm very happy to once again share with you another quarter of stable cash flows and robust acquisition activity. We continue to execute on our business plan, and our strong second quarter 2021 results reflect the favorable characteristics of our business, including the consistency of our in-place rents and the growth we are delivering through our acquisition platform. We achieved several milestones during the second quarter, executing accretive acquisitions, delivering robust rental income growth, and continued enhancements to our balance sheet, which will provide financial flexibility to support the company's ongoing growth. During the quarter, we completed the acquisition of 71 properties for approximately $30 million, bringing total acquisitions for the first half of the year to 125 postal properties for $56 million, all excluding closing costs. Subsequent to quarter end and through August 3rd, we closed on an additional 32 properties for $11 million, excluding closing costs, some of which included operating partnership units as part of the consideration. The company has another 26 properties, totaling approximately $7.6 million on definitive contracts. We remain confident we will exceed our target of $100 million of acquisitions this year. Given cap rate compression across most real estate sectors, including our acquisition targets, we anticipate that our weighted average cap rate range for 2021 will be between 7% and 8%. Subsequent to quarter end, we further strengthened our capital structure as we entered into a new upsized senior unsecured revolving credit facility and term loan facility, which provide lower pricing and additional flexibility as we continue to grow our platform. I am pleased to note that reflecting our cash flow growth, our board of directors again raised our dividend to an annualized 89 cents per share. This is the eighth consecutive increase to the dividend since the company's IPO in 2019. Demonstrating our consistently strong results and growth, we achieved another milestone in the quarter. We are pleased to report that in June we were included in the Russell 2000 Index, one of the most widely followed performance benchmarks for emerging companies. We see tremendous interest from potential sellers as we demonstrate the value proposition we are creating as we consolidate this industry. With our financial capacity and our ability to offer multiple sources of consideration, including operating partnership units, We expect to continue to be the natural buyer of assets leased to the Postal Service. We have an experienced team, stable and secure cash flows, a proven ability to effectively own and operate properties, and a robust pipeline, all of which supports our confidence to create incremental value for our stakeholders. I'll now turn the call over to Jeremy Garber, Postal's president, to provide more details on our operating results and portfolio activity.