Postal Realty Trust, Inc. Completes Financing on Industrial Property

Rhea-AI Summary

Postal Realty Trust (PSTL) announced the closure of a $30.2 million property-level financing for its recently acquired 431,000-square foot industrial property in Warrendale, PA. The financing, lasting 10 years with a 2.80% fixed interest rate, allows for interest-only payments for the first five years. The funds will be used to repay amounts under the senior revolving credit facility. CEO Andrew Spodek expressed excitement about this completion, emphasizing its potential to support future acquisitions as the company continues its growth strategy.

Positive

• Secured $30.2 million financing enhances liquidity for future acquisitions.
• Fixed interest rate of 2.80% offers favorable terms for the financing.

Negative

• Dependence on USPS's lease renewals could pose risks to revenue stability.
• Uncertainty in market conditions and impacts from the COVID-19 pandemic may affect future performance.

Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service (“USPS”), today announced it closed an approximately $30.2 million property level financing on its recently acquired approximately 431,000-square foot industrial property located in Warrendale, PA (the “Industrial Property”).

The property-level financing, which closed on December 18, 2020, has a 10-year term and matures on January 1, 2031, and carries a fixed interest rate of 2.80%. The loan requires interest-only payments for the first five years and fixed payments of principal and interest thereafter based on a 30-year amortization schedule. The Company expects to use the net proceeds from the property-level financing to repay amounts outstanding under the Company’s senior revolving credit facility.

Andrew Spodek, Chief Executive Officer, commented, “We are excited to have completed the property-level financing on our Warrendale industrial property ahead of schedule, which frees incremental capital on our senior revolving credit facility for pending acquisitions. I would like to thank my team and our lending partner for their diligence and hard work in getting this loan in place in an efficient and timely manner. As we head into 2021, we are focused on the continued execution of our acquisition strategy and scaling our operations.”

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements.” Forward-looking statements include statements regarding the proposed public offering and other statements identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements, including, among others, statements regarding the Company’s financing arrangements and its ability to obtain financing on the terms and timing it expects or at all, and statements about the Company’s acquisition strategy or future acquisition activity, which are based on the Company’s current expectations and assumptions regarding capital market conditions, acquisition pipeline, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the USPS’s terminations or non-renewals of leases, changes in demand for postal services delivered by the USPS, the solvency and financial health of the USPS, competitive, financial market and regulatory conditions, disruption in market, economic and financial conditions as a result of the ongoing COVID-19 pandemic, general real estate market conditions, the Company’s competitive environment and other factors set forth under “Risk Factors” in the Company’s filings with the United States Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

About Postal Realty Trust, Inc.

Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 1,100 properties primarily leased to the USPS. The Company believes it is one of the largest owners and managers of properties leased to the USPS.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201221005341/en/

FAQ

What is the significance of Postal Realty Trust's $30.2 million financing on December 18, 2020?

The financing allows Postal Realty Trust (PSTL) to enhance liquidity for future acquisitions while managing its existing debts effectively.

How does the financing impact Postal Realty Trust's acquisition strategy?

The new financing arrangement frees up capital on PSTL's senior revolving credit facility, enabling the company to pursue further acquisitions.

What is the term and interest rate associated with PSTL's new financing?

The property-level financing has a term of 10 years with a fixed interest rate of 2.80%.

What are the risks mentioned in the press release for PSTL regarding its financing?

The risks include potential non-renewals of leases by USPS and uncertainties stemming from market conditions and the COVID-19 pandemic.