Postal Realty Trust, Inc.

And welcome to Postal Realty Trust, Inc. second quarter 2022 earnings conference 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 Cooperstein, Vice President of FP&A Capital Markets. Please go ahead, sir.

Thank you. Good morning, everyone, and welcome to the Postal Realty Trust second 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 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 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 currently 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 morning, and thank you for joining us today. We are pleased to share that Postal Realty had a very productive and successful quarter. completing $55.1 million of acquisitions, comprised of our core last mile and flex targets, while maintaining our conservative leverage ratios, closing the quarter at 5.5 times net debt to annualized adjusted EBITDA. During the first half of this year, we accretively deployed the proceeds from the capital raise completed in November. We continue to use our market-leading vantage point to capitalize on this highly fragmented market. This has put us ahead of our historical cadence for the first half of the year as we have completed approximately $87 million of acquisitions and have an additional $14 million under definitive contracts. As we had previously communicated alongside the broader real estate industry, we had seen some cap rate compression and the weighted average cap rate for these properties was in the 6% to 7% range. More recently, the market is adjusting. Cap rates are starting to rise and the mix of assets and acquisition volumes will determine where in the 6% to 7% range we complete the year. The total addressable market of postal service leased assets is significant and our network of opportunities continue to expand. As the industry leader with the dominant market share and over 30 years of experience, we have been deliberate and consistent in our approach. We are well positioned and laser focused on continuing to execute on our goal of creating shareholder value by realizing organic growth in our in-place portfolio and consolidating this market. The Postal Service's irreplaceable logistics network adds to their resilience and in turn our unique position as the largest owner, manager, and consolidator of properties leased to the Postal Service. We are pleased with the high volume of attractive acquisitions already completed year to date. We are encouraged by the continued growth in our pipeline and the cap rate expansion we are starting to see in our market. And we'll continue to be thoughtful and prudent as we allow buyers and sellers to adjust to the current environment and cap rates. Most importantly, we have the balance sheet and the team ready to execute where appropriate. Postal Realty Trust is well positioned to navigate today's inflationary environment with a conservative balance sheet, a favorable lease structure, and average lease duration. and our ability to drive growth throughout all market cycles. We will continue to be active and employ a disciplined approach to acquisitions. I'll now turn the call over to Jeremy to discuss our operating metrics. Thank you, Andrew.