Postal Realty Trust, Inc. · NYSE:PSTL
Postal Realty Trust — Q4 2024 Earnings Presentation
22 slides from Postal Realty Trust's earnings presentation, Feb 27, 2025
Slide 1: Investing in America's Logistics Network
INVESTING IN AMERICA’S LOGISTICS NETWORK February 2025
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: Reasons to Invest
REASONS TO INVEST Attractive returns driven by annual NOI growth and strategic acquisitions Consistent dividend with annual increases demonstrating financial stability and strong cash flow Singularly positioned to consolidate and institutionalize large fragmented market Strong federal government-sup
Slide 4: Attractive Return Profile – Based on Proven Results
ATTRACTIVE RETURN PROFILE – BASED ON PROVEN RESULTS Margin Expansion Internal Accretive Dividend Yield & Potential; Growing Growth Acquisitions Dividend Growth Liquidity o Same-store cash NOI o Uniquely positioned o Attractive dividend o Post acquisition, PSTL growth of 5.5% for to consolidate and y
Slide 5: PSTL Internal Growth Story
PSTL INTERNAL GROWTH STORY Annual Lease Expirations1 ✓ Significant opportunity in coming years to mark rents to market as leases expire. 22.1% ✓ 48% of current leases expire from ’25 – ’27, 16.7% 16.6% presenting near term internal growth opportunities. 12.4% 12.9% ✓ Same-store cash NOI growth drive
Slide 6: PSTL Internal Growth Story (continued)
PSTL INTERNAL GROWTH STORY (continued) ✓ 31% of portfolio includes annual rent escalations. This Contractual Rent Escalators percentage is expected to grow substantially over the next 2- $1.8MM 3 years, helping drive same-store cash NOI growth. $1.4MM ✓ Growing income stream in future years from emb
Slide 7: USPS's Irreplaceable 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 network daily AS E-COMMERCE HAS o USPS’s unmatched logistics network has high barriers to entry GROWN, THE USPS’ due to the time a
Slide 8: Stable Credit Tenant with Consistently High Retention
STABLE CREDIT TENANT WITH CONSISTENTLY HIGH RETENTION 99% 100% 100% 100% 100% 100% 100% 99% 99% 99% 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 operating expenses in fiscal year
Slide 9: Diversified Real Estate Portfolio
DIVERSIFIED REAL ESTATE PORTFOLIO $15.2MM ABR 21% of total 15% 28% $10.3MM ABR $19.4MM ABR 28% of total 15% of total ANNUALIZED GROSS RENT1 $25.4MM ABR 36% 36% of total 21% MIDWEST NORTHEAST SOUTH WEST 1,720 6.5MM 49 Properties Owned Interior Sq. Ft. States2 99.8% 38MM+ ~4 YEARS Occupancy Site Sq. F
Slide 10: Highly Fragmented Market, Ripe for Consolidation
HIGHLY FRAGMENTED MARKET, RIPE FOR CONSOLIDATION PRIVATELY OWNED o PSTL’s portfolio represents ~7% 92MM SQUARE FEET of the leased market1 o Nearly 17,000 different lessors of properties leased to the USPS OWNED BY PSTL 6.5MM SQUARE FEET o Next top 20 largest portfolio owners combined only own ~11% o
Slide 11: Opportunity to Gain Considerable Market Share
OPPORTUNITY TO GAIN CONSIDERABLE MARKET SHARE Long-standing relationships within the industry Reputation—active buyers for 30 years, well-known as the largest owner and a trusted resource1 Experienced in-house acquisitions team generating off-market transactions LAST-MILE2 FLEX3 INDUSTRIAL 25% < 2,5
Slide 12: Meaningful Growth Since IPO
MEANINGFUL GROWTH SINCE IPO Annual Acquisitions ($ in millions)(1) Cumulative Acquisitions ($ in millions)(1) $130 $118 $123 $628 $537 $47 $30 $91 $459 $87 $78 $336 $67 $56 $67 $218 $65 $88 $36 $18 $21 $22 $24 FY'20 FY'21 FY'22 FY'23 FY'24 2019 Post IPO FY'20 FY'21 FY'22 FY'23 FY'24 Last-Mile Flex I
Slide 13: Well Capitalized Balance Sheet
WELL CAPITALIZED BALANCE SHEET $22.0MM DEBT MATURITY SCHEDULE $175.0MM $250.0MM TOTAL CAPITALIZATION $704.4MM $75.0MM $398.2MM Limited Near-term Debt Maturities $34.2MM $22.0MM $34.2MM 2025 2026 2027 2028 Thereafter Unsecured Term Loans Other Debt Unsecured Revolving Credit Facility Unsecured Term L
Slide 14: Decades of Experience and Institutional Knowledge
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 Garber Presid
Slide 15: Committed to Corporate Responsibility and Sustainable Business Practices
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, health and development in by former Post
Slide 16: Appendix
APPENDIX 17
Slide 17: Portfolio by Asset Class
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 1,091 1.5MM $18.1MM $12.11 FLEX2 PROPERTIES 2,500 - 50,000 INTERIOR SQUARE FEET Property Count Interior Sq. Ft. Annualized Base Rent Annualize
Slide 18: Lease Expirations Provide Opportunity to Drive NOI Growth
LEASE EXPIRATIONS PROVIDE OPPORTUNITY TO DRIVE NOI GROWTH Total Annualized Rent1 Mark to Leases with % of Total Number Total Year Square Feet Market Renewal Annualized of Leases Portfolio Leases Options Rent1 2025 219(2) 544,786 $6,785,270 $11,619 $6,796,889 9.7% 2026 330 1,183,000 8,644,601 3,058,6
Slide 19: Last-Mile
LAST-MILE CEDAR BLUFFS, NE NEW HUDSON, MI o Located ~40 miles outside Omaha, this post o New Hudson is experiencing rapid growth, with office serves a small but growing community new subdivisions continuing to attract residents of nearly 800 residents relocating from Detroit and Milford o A well-uti
Slide 20: Flex
FLEX PORTLAND, OR – MIDWAY BRANCH RETAIL TYLER, TX STORE o Tyler, the county seat of Smith County, has experienced o Situated just east of downtown Portland and significant housing, population, and infrastructure south of Portland International Airport, this post growth over the past decade, with ma
Slide 21: Industrial
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 located approximately along mixed-use corridor 14 miles from the Pittsburgh International o S
Slide 22: Disclaimer and Definitions
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,” “expects