Postal Realty Trust, Inc.

And gentlemen, greetings and welcome to the Postal Realty Trust First Quarter 2024 Earnings Conference 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. Please go ahead, sir.

Thank you, and good morning, everyone. Welcome to Postal Realty Trust's first quarter 2024 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. I'm pleased that our success in 2023 has continued into the current year. Our first quarter acquisition pace and weighted average cap rate were slightly ahead of the same period last year. We added 29 properties for $19 million at a weighted average cap rate of 7.8%, and our year-to-date activity has us on track to achieve our full-year 2024 acquisitions guidance of $80 million at or above a 7.5% weighted average cap rate. While our transaction market is not immune to the current volatility in interest rates, I believe the postal real estate sellers are less focused on movements in the 10-year Treasury as they are in more heavily brokered sectors. I'm encouraged by our active pipeline sourced from existing relationships and many new prospects, some of which we have tracked for many years. Postal Realty has demonstrated time and again that we remain disciplined in managing our balance sheet to ensure we are well positioned to pursue attractive opportunities as they arise. We raised almost $14 million of equity capital from a combination of common stock and operating partnership unit issuances keeping our leverage well within our target range while maintaining ample availability on our evolving credit facility. Despite the uncertainty of the macro environment, our entire team remains focused on what we do best, acquiring postal real estate and improving the cash flow from assets under management. When sellers exchange property for operating partnership units, which they have done every year since our IPO, they are demonstrating that they trust we are the premier owner and operator in this niche space. This currency allows sellers the opportunity to maintain exposure to postal real estate and eliminate the day-to-day responsibilities of property management while deferring the potential taxable gains. Relationships are the backbone of this business. One of the many ways we stay in front of owners of our target asset is by developing strong, long-lasting connections. Last month, senior members of Postal Realty and I attended the 2024 Annual Association of United States Postal Lessors Conference. I personally have attended this conference for most of my life. It's an opportunity to cultivate new relationships, as well as maintain our long-running dialogue with owners. Due to these efforts, along with many others, roughly 75% of our acquisitions over the past few years have been sourced internally. And as the natural buyer, we believe we see all important assets that come to market. We are confident in both our business and our tenant as we continue to collect 100% of our contractual rents and maintain high retention and occupancy rates, exemplifying the importance of this irreplaceable network. With no significant near-term debt maturities, predictable cash flows, industry leadership as the largest owner of postal properties, and a committed team, we are positioned for a successful 2024. I'll now turn the call over to Jeremy.