Postal Realty Trust, Inc. Q3 FY2025 earnings call

• Andrew Spodek emphasized the company's strong third quarter results building on momentum, focusing on 3 pillars: organic growth via programmatic leasing with USPS, accretive acquisitions, and deepening access to capital. • Steve Bakke discussed third quarter results, including AFFO of $0.33 per diluted share, updated 2025 AFFO guidance to $1.30-$1.32 per share, balance sheet details (net debt to adjusted EBITDA 5.2x, fixed rate debt 93%, weighted average debt maturity 3.5 years), and acquisition funding sources. • Jeremy Garber provided updates on leasing (rents for leases expiring in 2025-2026 agreed, 53% of portfolio rent subject to annual escalations, 38% in 10-year terms) and acquisitions (Q3 2025 acquisitions of 47 properties for $42.3M, Q4 activity as of Oct 17).

There are no distinct product segments detailed; the focus is on the overall portfolio of U.S. postal real estate. Financial performance highlights include AFFO of $0.33 per share for the third quarter, a 10% year-over-year growth, and updates to guidance.

• Increased 2025 AFFO guidance to $1.30-$1.32 per share (growth of $0.14 to $0.16 vs 2024). • Updated 2025 same-store cash NOI guidance to 8.5%-9.5% from prior 7%-9%. • 2025 acquisitions guidance to meet or exceed $110 million. • Board approved quarterly dividend of $0.2425 per share (1% increase from Q3 2024). • Balance sheet flexibility with extended revolver and term loan maturities, $440M credit facility, $125M undrawn revolver capacity.

• Actual results may differ materially from forward-looking statements due to various risks beyond the company's control (e.g., from 10-K and regulatory filings). • Impact of market risks, competition, and changes in interest rates on acquisitions and cap rates.

Q: Could you provide more details on the Newtonville, MA acquisition and how often infill post office opportunities come up?

A: The Newtonville acquisition was a unique off-market opportunity; infill opportunities are seen often but typically not accretive out of gate.

Q: On acquisitions, with $106M completed and guidance for $110M, what's the outlook for remainder of year?

A: Acquisitions are an annual story, not quarterly; $110M guidance is meet or exceed, not a slowdown.

Q: Can you quantify mark-to-market on new leases with USPS?

A: Steered away from sharing mark-to-markets, but shared same-store NOI average of 6% over last 3 years.

Q: Views on cap rate trajectory in 2026?

A: Cap rates don't trade lockstep with 10-year, still looking for 7.5% or better.

Q: Lease terms mix going forward?

A: Mix of 5-year and 10-year leases, with 10-year becoming more common with annual escalators.

Q: Competitors in postal real estate space?

A: There are competitors, but Postal Realty is the largest owner, owning ~8% of the market.