Postal Realty Trust, Inc. · NYSE:PSTL
Postal Realty Trust — Q1 2024 Earnings Presentation
21 slides from Postal Realty Trust's earnings presentation, May 8, 2024
Slide 1: Investing in America's Logistics Network
INVESTING IN AMERICA’S LOGISTICS NETWORK May 2024
Slide 2: Only publicly traded REIT focused on USPS-leased properties
AS THE ONLY PUBLICLY TRADED REAL ESTATE INVESTMENT TRUST FOCUSED ON PROPERTIES LEASED TO THE USPS, POSTAL REALTY TRUST (NYSE: PSTL) IS AT THE INTERSECTION OF REAL ESTATE AND CRITICAL LOGISTICS INFRASTRUCTURE. PSTL HAS THE SCALE, INDUSTRY KNOWLEDGE AND SEASONED TEAM TO CONSOLIDATE THIS HIGHLY FRAGMEN
Slide 3: PSTL Investment Overview: Reasons to Invest
PSTL INVESTMENT OVERVIEW REASONS TO INVEST Singularly positioned to consolidate and institutionalize large fragmented market Critical logistics infrastructure supporting e-commerce and last-mile delivery Strong federal government-supported credit tenant with high retention rate Attractive returns ge
Slide 4: Attractive Return Profile – Based on Proven Results
LONG-TERM INVESTMENT PROPOSITION ATTRACTIVE RETURN PROFILE – BASED ON PROVEN RESULTS Margin Expansion Accretive Organic Dividend Yield & Potential; Growing Acquisitions NOI Growth Dividend Growth Liquidity o Acquired properties o 99% weighted o Attractive dividend o Cash G&A as a in Q1 2024 at 7.8%
Slide 5: Diversified Real Estate Portfolio
PORTFOLIO DIVERSIFIED REAL ESTATE PORTFOLIO 14% 28% ANNUALIZED GROSS RENT1 35% 23% MIDWEST NORTHEAST SOUTH WEST 1,543 6.0MM 49 Properties Owned Interior Sq. Ft. States2 99.6% 34MM+ ~3 YEARS Occupancy Site Sq. Ft. Weighted Average Lease Term3 Note: Figures as of April 26, 2024, for PSTL’s owned portf
Slide 6: Highly Fragmented Market, Ripe for Consolidation
MARKET OPPORTUNITY HIGHLY FRAGMENTED MARKET, RIPE FOR CONSOLIDATION PRIVATELY OWNED o PSTL’s portfolio represents ~6% of 92MM SQUARE FEET the leased market1 o Nearly 17,000 different lessors of properties leased to the USPS OWNED BY PSTL 6.0MM SQUARE FEET o Next top 20 largest portfolio owners combi
Slide 7: Opportunity to Gain Considerable Market Share
MARKET OPPORTUNITY OPPORTUNITY TO GAIN CONSIDERABLE MARKET SHARE Long-standing relationships within the industry Reputation—active buyers for 30 years, well-known as the largest owner and a trusted resource1 Experienced in-house acquisitions team generating off-market transactions LAST-MILE2 FLEX3 I
Slide 8: USPS's Irreplaceable Logistics Network
LOGISTICS NETWORK USPS’S IRREPLACEABLE LOGISTICS NETWORK CRITICAL INFRASTRUCTURE SUPPORTS E-COMMERCE AND LAST-MILE DELIVERY o Amazon, UPS, FedEx, and DHL all tap into the USPS’s logistics AS E-COMMERCE HAS network every day GROWN, THE USPS’ o USPS’s unmatched logistics network has high barriers to e
Slide 9: Favorable Lease Structure
GOVERNMENT-SUPPORTED CREDIT TENANT FAVORABLE LEASE STRUCTURE LEASE STRUCTURE: INFLATION PROTECTIONS: ✓ Most commonly five years in duration ✓ Lease duration allows the continual opportunity for renewals at market rents ✓ Various forms of modified double net leases (typical USPS responsibilities incl
Slide 10: Stable Credit Tenant with Consistently High Retention
GOVERNMENT-SUPPORTED CREDIT TENANT STABLE CREDIT TENANT WITH CONSISTENTLY HIGH RETENTION 99% 100% 100% 100% 100% 100% 99% 99% 99% 98% 98% Historical Weighted Average Lease Retention Rate1 96% Federal government-supported credit USPS operating lease payments represented only 1.5% of the USPS’s total
Slide 11: Lease Expirations Provide Opportunity to Drive NOI Growth
ATTRACTIVE RETURN PROFILE LEASE EXPIRATIONS PROVIDE OPPORTUNITY TO DRIVE NOI GROWTH YEAR NUMBER OF LEASES SQUARE FEET ANNUAL RENT1 % OF TOTAL RENT1 2024 195(2) 1,199,865 $9,711,644 17.1% 2025 214 608,414 7,100,051 12.5% 2026 311 1,129,457 11,292,540 19.8% 2027 433 1,391,591 14,382,474 25.3% 2028 115
Slide 12: Meaningful Growth Since IPO
ATTRACTIVE RETURN PROFILE MEANINGFUL GROWTH SINCE IPO Annual Acquisitions ($ in millions)(1) Cumulative Acquisitions ($ in millions)(1) $130 $560 $123 $537 $118 $459 $47 $30 $78 $336 $87 $218 $65 $67 $56 $23 $88 $36 $20 $18 $21 $22 FY'20 FY'21 FY'22 FY'23 2024 YTD 2019 Post IPO FY'20 FY'21 FY'22 FY'
Slide 13: Well Capitalized Balance Sheet
CONSERVATIVE BALANCE SHEET WELL CAPITALIZED BALANCE SHEET $15.0MM DEBT MATURITY SCHEDULE $125.0MM $200.0MM TOTAL $75.0MM CAPITALIZATION $644.3MM No Notable Near-term $396.4MM $32.9MM Debt Maturities $32.8MM $15.0MM $0.1MM 2024 2025 2026 2027 2028 Thereafter Unsecured Term Loans Other Debt Market Val
Slide 14: Decades of Experience and Institutional Knowledge
LEADERSHIP DECADES OF EXPERIENCE AND INSTITUTIONAL KNOWLEDGE Andrew Spodek Chief Executive Officer o Founder and CEO o More than 20 years of experience focused on investing in and managing USPS properties o Serves on the board of directors of the Association of United States Postal Lessors Jeremy Ga
Slide 15: Committed to Corporate Responsibility and Sustainable Business Practices
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) COMMITTED TO CORPORATE RESPONSIBILITY AND SUSTAINABLE BUSINESS PRACTICES ENVIRONMENTAL SOCIAL GOVERNANCE o Multi-disciplinary ESG committee, o Focused on ensuring PSTL employee o Independent Board of Directors led including several senior executives, welfare,
Slide 16: Appendix
APPENDIX 17
Slide 17: Portfolio by Asset Class
APPENDIX PORTFOLIO BY ASSET CLASS LAST-MILE1 PROPERTIES UNDER 2,500 INTERIOR SQUARE FEET Property Count Interior Sq. Ft. Annualized Base Rent Annualized Base Rent PSF 976 1.3MM $14.4MM $10.86 FLEX2 PROPERTIES 2,500 - 50,000 INTERIOR SQUARE FEET Property Count Interior Sq. Ft. Annualized Base Rent An
Slide 18: Last-Mile
APPENDIX LAST-MILE GRANT, FL WALLOWA, OR o Acquired as part of a portfolio, the post office o Sitting in a mountainous region of the northeast serves a fast-growing community of coastal corner of Oregon, this post office services a Florida distinct community of over 1,000 residents o This ~2,300 sq.
Slide 19: Flex
APPENDIX FLEX WEST SIMSBURY, CT PINE, AZ o Located in an affluent suburb of Northern o ~4,600 sq. ft. facility that was acquired as part of a five- Connecticut, this post office services a growing property portfolio community of over 6,000 residents o The post office has four employees and ~1,500 PO
Slide 20: Industrial
APPENDIX INDUSTRIAL WARRENDALE, PA MILWAUKEE, WI o Over 300,000 sq. ft. processing & distribution o ~575,000 sq. ft. USPS logistics hub with center strategic location in Downtown Milwaukee o Modern logistic facility approximately 14 miles along mixed-use corridor from the Pittsburgh International Ai
Slide 21: Disclaimer and Definitions
APPENDIX DISCLAIMER AND DEFINITIONS This presentation regarding the Company 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,”