Postal Realty Trust, Inc.

I would now like to turn the conference over to your host, Mr. Jordan Kuperstein, Vice President of FP&A Capital Markets. Please go ahead.

Thank you, and good afternoon, everyone. Welcome to Postal Realty Trust's second 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 Bramwine, 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 afternoon, and thank you for joining us. In the second quarter, we added 70 properties for $28 million at a weighted average cap rate of 7.6%, and nine properties for $3 million subsequent to quarter end, funding the majority of our acquisitions on our evolving credit facility and raising over $6 million of equity. Our execution of the $12.5 million Rofo transaction, combined with our year-to-date regular way activity, has us in a position to acquire $90 million at or above a 7.5% weighted average cap rate for 2024. Thanks to our team's tenacious efforts, we have been successful continuing to source and acquire attractive postal properties accretively, and as interest rate cuts become more likely and cost of capital improves, we look forward to increasing transaction volume. On the leasing front, we are encouraged by the progress we have made working in partnership with the Postal Service to improve the annual lease renewal process. We are excited to report that we have started to receive fully executed 2023 leases that include 3% annual escalations. Productions for the 2024 leases have also kicked off in earnest. As we have shared, this is a fluid process, and we look forward to providing further details once we conclude negotiations and receive the remaining fully executed leases. I'm also pleased to share that we completed a five-year lease renewal with the only significant non-postal tenant in our portfolio, located at our Warrendale, Pennsylvania industrial facility. The tenant is a publicly traded multinational healthcare technology company that has made substantial investments in their space. We achieve a mark-to-market base rent increase of 19% and incorporated a 2.5% annual escalation. At Postal Realty, we are committed to investing in our workforce and our local community. For the third year in a row, Postal Realty volunteered at Island Harvest, a leading hunger relief organization with a mission to end hunger and reduce food waste on Long Island. The company looks forward to continuing this tradition of giving back to the community. Postal Realty has a tremendous runway ahead supported by both external growth with the acquisition of new postal properties and internal growth through improvement of cash flows of existing properties through effective leasing and management. We are well positioned for a successful 2024 and beyond and will keep you updated with our progress. I'll now turn the call over to Jeremy.