Postal Realty Trust, Inc.

Greetings and welcome to Postal Realty Trust's third quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Jordan Cooperstein, Vice President of FP&A Capital Markets. Welcome, Jordan.

Thank you, and good morning, everyone. Welcome to Postal Realty Trust's third quarter 2023 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 company may use forward-looking statements on this conference call, which are 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, but not limited to, 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 obligation 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. The third quarter marked another strong period for postal realty. We demonstrated our ability to drive external and internal growth by expanding our asset base and achieving operating efficiencies. we acquired 70 postal properties across the U.S. during the quarter at an 8% weighted average cap rate, the top of our stated range. Based on the acquisitions completed through October 20th, we have added 153 properties to our portfolio for $58 million, continue to work towards our $80 million target, and anticipate our full year 2023 weighted average cap rate to be between 7.25% and 7.75%. The increase in transaction volumes is encouraging, and we are optimistic that this will continue through the end of the year. The high retention and occupancy rates across our portfolio are characteristic of the niche market we serve, where we receive 100% of our monthly rent 100% on time. This predictability of cash flow is a significant differentiator for postal realty. It's important to note that even as discussions of a government shutdown persist, the Postal Service has affirmatively stated that not only will their facilities remain open, but their services shall remain uninterrupted. We continue to be judicious with our deployment of capital. Our revolving credit facility remains completely undrawn, and we've maintained conservative leverage with net debt to annualize adjusted EBITDA at five and a half times. We have positioned ourselves optimally to capitalize on attractive opportunities that arise. and we are confident they will. Our team has over 30 years of experience acquiring, operating, and managing properties from small towns to big cities and everything in between. We take pride in the operation and management of each asset in our growing portfolio. The logistics network we invest in on a daily basis is irreplaceable American infrastructure, enabling the Postal Service to serve the American people through the 165 million distinct delivery points they reach five to six days a week. This unique and niche space has proved its resilience in the past and present economic cycle. Regardless of whether the U.S. economy will face a soft landing, hard landing, or no landing, we are exceedingly confident in the strength of our business, our tenants, and our opportunity for future growth. I'll now turn the call over to Jeremy.