Postal Realty Trust, Inc.

Good morning, and welcome to the Postal Realty Trust, Inc. First Quarter 2022 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one and telephone keypad. To withdraw a question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jordan Cooperstein. VP of FP&A and Capital Markets. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to the Postal Realty Trust first quarter 2022 earnings conference call. On the call today, we have Andrew Spodek, Chief Executive Officer, Jeremy Garber, President, Robert Klein, Chief Financial Officer, and Matt Bramwine, Chief Accounting Officer. Please note the use of forward-looking statements by the company on this conference call. Statements made on this call They 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 latest 10-K 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, adjusted EBITDA, and net debt. You can find a tabular reconciliation of these non-GAAP financial measures to the most concurrently comparable GAAP measures in the company's earnings release and supplemental materials. 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 us today. Postal Realty Trust has had an excellent start to the year as we continue to successfully execute on our postal property consolidation strategy. This year to date, we have acquired 74 properties for approximately $34 million and have another 123 properties for approximately $40 million under definitive contracts. These properties are within our anticipated weighted average cap rate range of 6% to 8%, And for the third consecutive year, we are on track to comfortably exceed $100 million in acquisitions. In only a few short years as a public company, we have increased our market share to capture approximately 6% of this highly fragmented market, leaving a significant opportunity to gain considerable additional share in the coming years. Furthermore, our network of opportunities continues to expand as we are pleased that the majority of our deals are sourced off-market from sellers who understand the value proposition we offer. As we have stated, our financial capacity, past performance, and ability to offer multiple sources of consideration, such as operating partnership units, make us the natural buyer of assets leased to the Postal Service. The Postal Service has also proven to be an incredibly stable tenant across every economic cycle, backed by the full faith and credit of the United States. They pay their rent on time and rarely relocate. The Postal Service's commitment to their buildings is even more amplified in this inflationary environment, as we believe renewing a lease is a much more attractive economic alternative than moving to a postal built-to-suit option. The Postal Service has created an irreplaceable logistics network that includes critical infrastructure to support the ever-growing e-commerce industry and related last-mile delivery. Furthermore, we are well-positioned to navigate today's inflationary environment with a conservative low-levered balance sheet, favorable lease structure, and given the typical five-year lease term, our ability to set rents to market. Together, these factors allow for significant internal growth from our existing portfolio. On April 6, the Postal Service Reform Act of 2022 was signed into law, which will overhaul the Postal Service's finances and delivery services, further ensuring its continued viability. We are very encouraged by this and believe this law provides even more validation of the critical nature of the Postal Service to America's infrastructure and to our business strategy of aggregating the properties that support these important services for years to come. During the first quarter, we continue to invest in our company and scale the business through accretive acquisitions. With our experienced team, financial acumen, and proven track record, we will continue executing on our business strategy. By utilizing our expertise and strong relationships, we will continue to expand our robust pipeline of Postal Service last mile flex and industrial facilities, remain a valuable partner to the Postal Service, and create value for our stakeholders. I'll now turn the call over to Jeremy.