Postal Realty Trust, Inc.

Greetings and welcome to the Postal Realty Trust's first quarter 2026 earnings conference call. At this time, all participants are in 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. Senior Vice President of Finance and Capital Markets. Welcome, Jordan.

Thank you, and good morning, everyone. Welcome to Postal Realty Trust's first quarter 2026 earnings conference call. On the call today, we have Andrew Spodek, Chief Executive Officer, Jeremy Garber, President, Steve Babacki, 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 including, but not limited to, those contained in the company's latest 10-K and its other regulatory 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, pro forma adjusted EBITDA, pro forma annualized adjusted EBITDA, same store cash NOI, same store cash revenue, net debt, adjusted net debt, and pro forma adjusted 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. In a couple of weeks, we will be celebrating our seventh anniversary as a public company. Over the past seven years, we've created a purpose-built platform to unlock the value inherent in U.S. postal real estate. As we have developed and continue to refine this platform, we have delivered on multiple fronts. It starts with the 6.1% average annual AFFO per share growth we are on track to achieve from 2021 to 2026, based on AFFO guidance we increased yesterday. This performance ranks us second among net lease suites. Our progression continued last year with the introduction of AFFO per share guidance, made possible by refining our leasing approach with the Postal Service. Today, we are taking another step by sharing our forward-looking, top-line revenue outlook for 2027, despite being only five months into 2026. It is a testament to the unique leasing approach we have developed with the Postal Service that gives us this much visibility into 2027, and it speaks to the benefit of having primarily a single, high-credit tenant who consistently pays us 100% of contractual rent across our 99.8% occupied portfolio. We are expecting same-store cash revenue growth of approximately 6.5% in 2027, which is approximately 30 basis points higher than what we're expecting for 2026. Higher expected growth in 2027 reflects the increased presence of annual rent escalators across the portfolio, as well as the rental mark-to-market tailwind. On our first quarter 2025 earnings call, I shared that we have the systems and people in place to ramp up acquisitions should our cost of capital and opportunity set align. With a stock price improvement of over 70% since then, this symmetry has materialized, allowing us to accelerate the pace of acquisition activity relative to the last few years. Based on the strength of our pipeline, we are increasing our acquisition guidance by $15 million to $130 to $140 million for the year. And we will revisit this guidance as the year progresses. In the first quarter, we acquired $35 million at a 7.5% weighted average cap rate. In the second quarter to date, we have acquired and have under definitive contract $17 million, putting us at $52 million year to date, with a strong pipeline of anticipated transactions behind it. We are capitalizing on the opportunity in front of us from a position of strength. Our revised acquisition guidance is fully funded with liquidity of approximately $250 million at the end of the quarter. consisting of unused revolver capacity and $48 million of unsettled forward equity proceeds. We are laser focused on maintaining a strong liquidity profile, supported by our access to equity and our recent BBB investment grade rating from Kroll KBRA. In summary, our internal growth, supported by our robust acquisition pipeline and access to capital, places us in a strong position to generate continued earnings growth. Earlier this week, We attend in the Postal Service's National Postal Forum in Phoenix, a conference that brings together the broader logistics ecosystem surrounding the Postal Service. For us, the conference confirms that as the logistics marketplace continues to evolve, the U.S. Postal Service's facilities will remain a critical tool for accessing the American people. These facilities form the backbone of the Postal Service's delivery infrastructure and are the very assets we invest in. This network enables the Postal Service to provide universal service across 170 million delivery points nationwide and is utilized six days a week by logistics providers and online retailers. As we like to remind investors, the cost to lease the real estate backbone of this network is only 1.5% of the Postal Service's annual operating expenses. This annual expense equates to $1.4 billion of annual rent, resulting in a $12 to $15 billion market for postal real estate. creating a long runway for future acquisitions. With that, I will turn the call over to Steve.