Postal Realty Trust, Inc. Reports Third Quarter 2024 Results
Postal Realty Trust (NYSE: PSTL) reported strong Q3 2024 results with 22% year-over-year revenue growth. The company achieved net income of $1.1 million ($0.03 per diluted share), FFO of $7.1 million ($0.24 per diluted share), and AFFO of $8.8 million ($0.30 per diluted share). During Q3, PSTL acquired 35 USPS properties for $13.3 million at a 7.5% cap rate. The company secured new leases with 3% annual escalations for all 2023 and 2024 negotiated properties. Post-quarter, PSTL increased term loan commitments by $50 million and maintained a high occupancy rate of 99.6% across its 1,642 properties.
Postal Realty Trust (NYSE: PSTL) ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita del fatturato del 22% rispetto all’anno precedente. L'azienda ha registrato un reddito netto di 1,1 milioni di dollari (0,03 dollari per azione diluita), un FFO di 7,1 milioni di dollari (0,24 dollari per azione diluita) e un AFFO di 8,8 milioni di dollari (0,30 dollari per azione diluita). Durante il terzo trimestre, PSTL ha acquisito 35 proprietà USPS per 13,3 milioni di dollari a un tasso di capitalizzazione del 7,5%. L’azienda ha ottenuto nuovi contratti di locazione con un incremento annuale del 3% per tutte le proprietà negoziate nel 2023 e nel 2024. Dopo il trimestre, PSTL ha aumentato gli impegni di prestiti a termine di 50 milioni di dollari, mantenendo un elevato tasso di occupazione del 99,6% su 1.642 proprietà.
Postal Realty Trust (NYSE: PSTL) reportó resultados sólidos para el tercer trimestre de 2024, con un crecimiento de ingresos del 22% en comparación con el año anterior. La empresa alcanzó un ingreso neto de 1,1 millones de dólares (0,03 dólares por acción diluida), FFO de 7,1 millones de dólares (0,24 dólares por acción diluida) y AFFO de 8,8 millones de dólares (0,30 dólares por acción diluida). Durante el tercer trimestre, PSTL adquirió 35 propiedades de USPS por 13,3 millones de dólares a una tasa de capitalización del 7,5%. La compañía aseguró nuevos contratos de arrendamiento con aumentos anuales del 3% para todas las propiedades negociadas en 2023 y 2024. Después del trimestre, PSTL aumentó los compromisos de préstamos a plazo en 50 millones de dólares y mantuvo una alta tasa de ocupación del 99,6% en sus 1,642 propiedades.
우편 부동산 신탁 (NYSE: PSTL)은 2024년 3분기 강력한 실적을 보고하며 전년 대비 22%의 매출 성장을 기록했습니다. 회사는 110만 달러의 순이익 (희석 주당 0.03달러), FFO 710만 달러 (희석 주당 0.24달러), AFFO 880만 달러 (희석 주당 0.30달러)를 달성했습니다. 3분기 동안 PSTL은 1330만 달러에 USPS 속성 35개를 7.5%의 자본 환수율로 인수했습니다. 이 회사는 2023년과 2024년 간의 모든 협상된 속성에 대해 연간 3%의 증액이 포함된 새로운 임대 계약을 확보했습니다. 분기 이후 PSTL은 5000만 달러의 장기 대출 약정을 증가시켰으며 1,642개의 속성에서 99.6%의 높은 점유율을 유지하였습니다.
Postal Realty Trust (NYSE: PSTL) a annoncé de solides résultats pour le troisième trimestre 2024, avec une croissance des revenus de 22 % par rapport à l'année précédente. L'entreprise a réalisé un revenu net de 1,1 million de dollars (0,03 dollar par action diluée), un FFO de 7,1 millions de dollars (0,24 dollar par action diluée) et un AFFO de 8,8 millions de dollars (0,30 dollar par action diluée). Au cours du troisième trimestre, PSTL a acquis 35 propriétés USPS pour 13,3 millions de dollars à un taux de capitalisation de 7,5 %. L'entreprise a sécurisé de nouveaux baux avec des augmentations annuelles de 3 % pour toutes les propriétés négociées en 2023 et 2024. Après le trimestre, PSTL a augmenté les engagements de prêt à terme de 50 millions de dollars et a maintenu un taux d'occupation élevé de 99,6 % sur ses 1 642 propriétés.
Postal Realty Trust (NYSE: PSTL) berichtete über solide Ergebnisse im dritten Quartal 2024 mit einem Umsatzwachstum von 22% im Vergleich zum Vorjahr. Das Unternehmen erzielte einen Nettogewinn von 1,1 Millionen Dollar (0,03 Dollar pro verwässerter Aktie), FFO von 7,1 Millionen Dollar (0,24 Dollar pro verwässerter Aktie) und AFFO von 8,8 Millionen Dollar (0,30 Dollar pro verwässerter Aktie). Im dritten Quartal erwarb PSTL 35 USPS-Immobilien für 13,3 Millionen Dollar zu einem Kapitalisierungszinssatz von 7,5%. Das Unternehmen sicherte sich neue Mietverträge mit jährlichen Erhöhungen von 3% für alle 2023 und 2024 ausgehandelten Immobilien. Nach dem Quartal erhöhte PSTL die Verpflichtungen für Terminkredite um 50 Millionen Dollar und hielt eine hohe Belegungsrate von 99,6% über 1.642 Immobilien hinweg.
- 22% year-over-year revenue growth in Q3 2024
- Portfolio occupancy rate of 99.6% across 1,642 properties
- Successfully negotiated 3% annual rent escalations on all new leases
- Acquired 35 USPS properties at attractive 7.5% cap rate
- Secured additional $50 million in term loan commitments
- 98% of debt fixed at weighted average interest rate of 4.36%
- Low net income per share at $0.03
- Increased debt exposure with $40 million term loan draw
Insights
The Q3 2024 results demonstrate solid operational performance with notable improvements. Revenue grew 22% year-over-year, with
Key developments include successful lease negotiations with USPS implementing
The acquisition of 35 properties at a
- Agreed to New Rents on all 2023 & 2024 Negotiated Leases -
- Increased Term Loan Commitments by
- Acquired 35 USPS Properties for
CEDARHURST, N.Y., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 2,000 properties leased primarily to the United States Postal Service (the “USPS”), ranging from last-mile post offices to industrial facilities, today announced results for the quarter ended September 30, 2024.
Highlights for the Quarter Ended September 30, 2024
22% growth in revenues from third quarter 2023 to third quarter 2024- Net income attributable to common shareholders of
$1.1 million , or$0.03 per diluted share - Funds from Operations ("FFO") of
$7.1 million , or$0.24 per diluted share - Adjusted Funds from Operations ("AFFO") of
$8.8 million , or$0.30 per diluted share - Subsequent to quarter end, the Company announced a quarterly dividend of
$0.24 per share - Acquired 35 USPS properties for approximately
$13.3 million , excluding closing costs, at a weighted average capitalization rate of7.5% - Agreed to new rents on all 2023 and 2024 negotiated leases with the USPS, all new executed leases include
3% annual escalations - Subsequent to quarter end, added
$50.0 million of commitments to the term loan maturing in February 2028, of which$40.0 million was drawn at closing of the transaction and the proceeds were used to paydown the revolving credit facility - Subsequent to quarter end, increased the accordion feature under the credit facilities for term loans to
$50.0 million
"We delivered solid results this quarter as we made noteworthy progress on re-leasing and raised a substantial amount of capital," stated Andrew Spodek, Chief Executive Officer. "Our negotiations with the Postal Service have resulted in new five and ten year leases featuring
Property Portfolio & Acquisitions
The Company’s owned portfolio was
During the third quarter, the Company acquired 35 last-mile and flex properties leased to the USPS for approximately
Leasing
As of October 21, 2024, the company had received 80 fully executed new leases from the USPS representing
Balance Sheet & Capital Markets Activity
As of September 30, 2024, the Company had approximately
During the third quarter and through October 21, 2024, the Company issued 732,266 shares of common stock through its at-the-market equity offering program and 252,198 common units in its operating partnership for portfolio acquisitions for total gross proceeds of approximately
Dividend
On October 22, 2024, the Company declared a quarterly dividend of
Subsequent Events
Subsequent to quarter end and through October 21, 2024, the Company acquired 13 properties comprising approximately 29,000 net leasable interior square feet for approximately
Subsequent to quarter end, the Company sold two properties for a combined sales price of
On October 25, 2024, the Company amended its credit facilities to, among other things, add
Webcast and Conference Call Details
The Company will host a webcast and conference call to discuss the third quarter 2024 financial results on Tuesday, November 5, 2024, at 9:00 A.M. Eastern Time. A live audio webcast of the conference call will be available on the Company’s investor website at https://investor.postalrealtytrust.com/Investors/events-and-presentations/default.aspx. To participate in the conference call, callers from the United States and Canada should dial-in ten minutes prior to the scheduled call time at 1-877-407-9208. International callers should dial 1-201-493-6784.
Replay
A telephonic replay of the call will be available starting at 1:00 P.M. Eastern Time on Tuesday, November 5, 2024, through 11:59 P.M. Eastern Time on Tuesday, November 19, 2024, by dialing 1-844-512-2921 in the United States and Canada or 1-412-317-6671 internationally. The passcode for the replay is 13742005.
Non-GAAP Supplemental Financial Information
An explanation of certain non-GAAP financial measures used in this press release, including, FFO, AFFO and net debt, as well as reconciliations of those non-GAAP financial measures, to the most directly comparable GAAP financial measure, is included below.
The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as follows: net income (loss) (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by an entity. Other REITs may not define FFO in accordance with the NAREIT definition or may interpret the current NAREIT definition differently than the Company does and therefore the Company’s computation of FFO may not be comparable to such other REITs.
The Company calculates AFFO by starting with FFO and adjusting for recurring capital expenditures (defined as all capital expenditures and leasing costs that are recurring in nature, excluding expenditures that (i) are for items identified or existing at the time a property was acquired or contributed (including through the Company’s formation transactions), (ii) are part of a strategic plan intended to increase the value or revenue-generating ability of a property, (iii) are for replacements of roof or parking lots, (iv) are considered infrequent or extraordinary in nature, or (v) for casualty damage), acquisition-related expenses (defined as expenses that are incurred for investment purposes and business acquisitions and do not correlate with the ongoing operations of the Company’s existing portfolio, including due diligence costs for acquisitions not consummated and certain professional fees incurred that were directly related to completed acquisitions or dispositions and integration of acquired business) that are not capitalized, and certain other non-recurring expenses and then adding back non-cash items including: write-off and amortization of deferred financing fees, straight-line rent and other adjustments (including lump sum catch up amounts for increased rents, net of any lease incentives), fair value lease adjustments, casualty losses and income on insurance recoveries from casualties, non-real estate depreciation and amortization and non-cash components of compensation expense. AFFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that AFFO is widely used by other REITs and is helpful to investors as a meaningful additional measure of the Company’s ability to make capital investments. Other REITs may not define AFFO in the same manner as the Company does and therefore the Company’s calculation of AFFO may not be comparable to such other REITs.
The Company calculates its net debt as total debt less cash and property-related reserves. Net debt as of September 30, 2024 is calculated as total debt of approximately
These metrics are non-GAAP financial measures and should not be viewed as an alternative measurement of the Company’s operating performance to net income. Management believes that accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. As a result, the Company believes that the additive use of FFO and AFFO, together with the required GAAP presentation, is widely-used by the Company’s competitors and other REITs and provides a more complete understanding of the Company’s performance and a more informed and appropriate basis on which to make investment decisions.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements.” Forward-looking statements include 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 anticipated growth and ability to obtain financing and close on pending transactions on the terms or timing it expects, if at all, are based on the Company’s current expectations and assumptions regarding capital market conditions, 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, 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 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 2,000 properties leased primarily to the USPS. More information is available at postalrealtytrust.com.
Contact:
Investor Relations and Media Relations
Email: Investorrelations@postalrealtytrust.com
Phone: 516-232-8900
| Postal Realty Trust, Inc. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Rental income | $ | 18,772 | $ | 15,438 | $ | 52,740 | $ | 44,699 | |||||||
| Fee and other | 895 | 668 | 2,264 | 2,012 | |||||||||||
| Total revenues | 19,667 | 16,106 | 55,004 | 46,711 | |||||||||||
| Operating expenses: | |||||||||||||||
| Real estate taxes | 2,487 | 2,089 | 7,174 | 6,101 | |||||||||||
| Property operating expenses | 2,536 | 1,917 | 7,007 | 4,955 | |||||||||||
| General and administrative | 3,884 | 3,352 | 12,094 | 11,121 | |||||||||||
| Casualty and impairment losses, net | 216 | — | 216 | — | |||||||||||
| Depreciation and amortization | 5,756 | 4,919 | 16,575 | 14,537 | |||||||||||
| Total operating expenses | 14,879 | 12,277 | 43,066 | 36,714 | |||||||||||
| Income from operations | 4,788 | 3,829 | 11,938 | 9,997 | |||||||||||
| Other income | 9 | 246 | 74 | 485 | |||||||||||
| Interest expense, net: | |||||||||||||||
| Contractual interest expense | (3,246 | ) | (2,446 | ) | (8,771 | ) | (6,793 | ) | |||||||
| Write-off and amortization of deferred financing fees | (180 | ) | (174 | ) | (543 | ) | (504 | ) | |||||||
| Interest income | 7 | — | 13 | 1 | |||||||||||
| Total interest expense, net | (3,419 | ) | (2,620 | ) | (9,301 | ) | (7,296 | ) | |||||||
| Income before income tax expense | 1,378 | 1,455 | 2,711 | 3,186 | |||||||||||
| Income tax expense | (29 | ) | (19 | ) | (73 | ) | (56 | ) | |||||||
| Net income | 1,349 | 1,436 | 2,638 | 3,130 | |||||||||||
| Net income attributable to operating partnership unitholders’ non-controlling interests | (278 | ) | (270 | ) | (544 | ) | (604 | ) | |||||||
| Net income attributable to common stockholders | $ | 1,071 | $ | 1,166 | $ | 2,094 | $ | 2,526 | |||||||
| Net income per share: | |||||||||||||||
| Basic and Diluted | $ | 0.03 | $ | 0.04 | $ | 0.04 | $ | 0.08 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic and Diluted | 22,737,484 | 20,277,417 | 22,375,339 | 19,712,504 | |||||||||||
| Postal Realty Trust, Inc. Consolidated Balance Sheets (Unaudited) | |||||||
| (In thousands, except par value and share data) | September 30, 2024 | December 31, 2023 | |||||
| Assets | |||||||
| Investments: | |||||||
| Real estate properties, at cost: | |||||||
| Land | $ | 119,293 | $ | 106,074 | |||
| Building and improvements | 489,156 | 443,470 | |||||
| Tenant improvements | 7,333 | 6,977 | |||||
| Total real estate properties, at cost | 615,782 | 556,521 | |||||
| Less: Accumulated depreciation | (54,406 | ) | (43,791 | ) | |||
| Total real estate properties, net | 561,376 | 512,730 | |||||
| Investment in financing leases, net | 15,973 | 16,042 | |||||
| Total real estate investments, net | 577,349 | 528,772 | |||||
| Cash | 970 | 2,235 | |||||
| Escrow and reserves | 537 | 632 | |||||
| Rent and other receivables | 6,086 | 4,750 | |||||
| Prepaid expenses and other assets, net | 10,254 | 13,369 | |||||
| Goodwill | 1,536 | 1,536 | |||||
| Deferred rent receivable | 2,004 | 1,542 | |||||
| In-place lease intangibles, net | 12,392 | 14,154 | |||||
| Above market leases, net | 270 | 355 | |||||
| Assets held for sale, net | 3,657 | — | |||||
| Total Assets | $ | 615,055 | $ | 567,345 | |||
| Liabilities and Equity | |||||||
| Liabilities: | |||||||
| Term loans, net | $ | 199,051 | $ | 198,801 | |||
| Revolving credit facility | 44,000 | 9,000 | |||||
| Secured borrowings, net | 33,915 | 32,823 | |||||
| Accounts payable, accrued expenses and other, net | 14,715 | 11,996 | |||||
| Below market leases, net | 14,408 | 13,100 | |||||
| Total Liabilities | 306,089 | 265,720 | |||||
| Commitments and Contingencies | |||||||
| Equity: | |||||||
| Class A common stock, par value | 233 | 219 | |||||
| Class B common stock, par value | — | — | |||||
| Additional paid-in capital | 306,006 | 287,268 | |||||
| Accumulated other comprehensive income | 2,316 | 4,621 | |||||
| Accumulated deficit | (63,001 | ) | (48,546 | ) | |||
| Total Stockholders’ Equity | 245,554 | 243,562 | |||||
| Operating partnership unitholders’ non-controlling interests | 63,412 | 58,063 | |||||
| Total Equity | 308,966 | 301,625 | |||||
| Total Liabilities and Equity | $ | 615,055 | $ | 567,345 | |||
| Postal Realty Trust, Inc. Reconciliation of Net Income to FFO and AFFO (Unaudited) (In thousands, except share and per share data) | |||
| For the Three Months Ended September 30, 2024 | |||
| Net income | $ | 1,349 | |
| Depreciation and amortization of real estate assets | 5,729 | ||
| FFO | $ | 7,078 | |
| Recurring capital expenditures | (253 | ) | |
| Write-off and amortization of deferred financing fees and amortization of debt discounts | 181 | ||
| Straight-line rent and other adjustments | 847 | ||
| Fair value lease adjustments | (828 | ) | |
| Acquisition-related and other expenses | 63 | ||
| Income on insurance recoveries from casualties | (9 | ) | |
| Casualty losses, net | 216 | ||
| Non-real estate depreciation and amortization | 27 | ||
| Non-cash components of compensation expense | 1,435 | ||
| AFFO | $ | 8,757 | |
| FFO per common share and common unit outstanding | $ | 0.24 | |
| AFFO per common share and common unit outstanding | $ | 0.30 | |
| Weighted average common shares and common units outstanding, basic and diluted | 29,326,905 | ||
FAQ
What was Postal Realty Trust's (PSTL) revenue growth in Q3 2024?
How many properties did PSTL acquire in Q3 2024?
What is PSTL's quarterly dividend for Q3 2024?
What was PSTL's portfolio occupancy rate in Q3 2024?
