Postal Realty Trust, Inc. · NYSE:PSTL
Postal Realty Trust — Investor Presentation (August 2019)
20 slides from Postal Realty Trust's investor presentation, Aug 26, 2019
Slide 1: Postal Realty Trust, Inc. August 2019
POSTAL REALTY TRUST, INC. August 2019
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements 2 This presentation contains forward-looking statements within the meaning of the federal securities laws . These statements can be identified by the fact that they do not relate strictly to historical or current facts, and are often indicated by words such as
Slide 3: Investment Thesis
Investment Thesis 3 ▪ Attractive cap rates in a property sector that has not been institutionalized ▪ Strong tenant credit profile ▪ High lease renewal rates provide stability ▪ Upside from re - leasing of below - market leases STRONG RISK ADJUSTED RETURNS ▪ Growth opportunity through the roll - up
Slide 4: Postal Realty Trust Overview
Postal Realty Trust Overview Proven Track Record of Institutionalizing Postal Real Estate Industry ▪ Founded in 2004 by Andrew Spodek as Nationwide Postal Management, Inc. ▪ Nation’s largest managers of properties leased by the United States Postal Service, as measured by rental income and square fe
Slide 5: Experienced Management Team
Experienced Management Team Decades of Post Office and Real Estate Experience Andrew Spodek – Chief Executive Officer ▪ Founder and CEO of NPM, the largest manager of USPS - leased properties in the United States ▪ More than 20 years of experience exclusively focused on investing in and managing pos
Slide 6: Strong Independent Board & Investor Alignment
Strong Independent Board & Investor Alignment Extensive Post Office, Real Estate and Public Company Knowledge Note: Board of Directors includes Andrew Spodek 6 Patrick Donahoe – Chairman of the Board ▪ Served as the 73 rd Postmaster General of the USPS from October 2010 until his retirement in Febru
Slide 7: U.S. Postal Service Today
= | |e U.S. Postal Service Today
Slide 8: United States Postal Service Overview and Key Facts
United States Postal Service Overview and Key Facts ▪ USPS reported revenue of $70.6B for its fiscal year 2018 ▪ Provides universal delivery and retail service delivering approximately 493 million mail pieces to 159 million unique delivery points from 31,324 facilities a day – USPS handles 47% of th
Slide 9: E-Commerce Growth
E - Commerce Growth E - Commerce Has Fueled Revenue Growth for the Postal Service ▪ In 2018, U.S. consumer online spending increased 12.9% from 2017 to $504.6 billion and is expected to grow to $735.4 billion by 2023 ▪ As e - commerce has grown, the USPS’s shipping and package services have evolved
Slide 10: Unmatched Logistics & Property Network
Unmatched Logistics & Property Network USPS Network is a Vital Component of Last Mile Infrastructure ▪ USPS properties are critical for the largest e - commerce logistics companies to provide last mile delivery ▪ The 31,324 USPS facilities represent the largest retail network in the United States −
Slide 11: USPS Financial Overview
1 . 44 % 1.34 % 1.41 % 1.21 % 1 . 32 % 1.30 % 1.28 % 1.22 % 1.35 % 1 . 36 % 1.00 % 1 . 10 % 1 . 20 % 1.30 % 1.40 % 1.50 % 1.60 % F Y 2 0 1 0 FY2012 FY2014 FY2016 FY2018 USPS Financial Overview Strong Focus on Revenue Growth & Labor Cost Management ▪ Digital world provides opportunities and challenge
Slide 12: USPS Property Overview
USPS Property Overview Highly Fragmented Ownership ▪ The USPS operated 31,324 properties consisting of 273.7 million square feet, as of September 30, 2018 ▪ 23,147 properties were owned by individuals and leased back to the USPS – Lease payments in fiscal year 2018 totaled approximately $1.0 billion
Slide 13: Postal Realty Trust, Inc. Portfolio Overview
Postal Realty Trust, Inc. Portfolio Overview
Slide 14: Attractive Portfolio Fundamentals
M i d w e st 39% N o rt h ea st 37% Source: Company Filings (1) Annualized gross rent is calculated by multiplying (a) contractual rent for the month ended June 30, 2019 by (b) 12 for all Purchased Properties Attractive Portfolio Fundamentals 14 Portfolio Highlights Locations 274 Properties (42 Stat
Slide 15: Driving Organic Growth
L EASE R ETENTION R ATE FOR PSTL' S O WNED AND M ANAGED P ROPERTIES Driving Organic Growth Achieving Attractive Returns by Institutionalizing the Postal Management Space ▪ Fragmented nature of postal asset ownership creates an opportunity to enhance returns through professional management, economies
Slide 16: Lease Rollover Drives Significant Upside
Lease Rollover Drives Significant Upside Upcoming Lease Expirations Provide Organic Growth Opportunity 16 ▪ Leases are typically five year flat ▪ Efficient lease renewal process ▪ Well positioned lease expiration schedule with most leases expiring after 2022 Year Number of Leases Sq. Ft. Annual Rent
Slide 17: Financial Overview
TRUST Financial Overview
Slide 18: Highlights for Period Ended June 30, 2019
Highlights for Period Ended June 30, 2019 ▪ Funds from Operations (FFO) for the quarter was $479,978, or $0.07 per diluted share ▪ Adjusted Funds from Operations (AFFO) for the quarter was $689,509, or $0.10 per diluted share ▪ Rental revenue increased 32.2% year - over - year to $1.86 million due t
Slide 19: Balance Sheet Poised for Growth
Balance Sheet Poised for Growth 19 Source: Company Filings As of June 30, 2019 $ in Actuals Debt Mortgage Debt $2,853,655 Total Debt $2,853,655 Total Assets $76,195,1 2 1 Debt / Assets 3.7% Total Equity $57,986,6 9 2 Debt / Equity 4.9% $52 .8 $109.2 $112.0 $110.4 $112.3 $2,357.0 $ 0 .0 $2,000.0 $1,6
Slide 20: Investment Highlights
Investment Highlights 20 UNTAPPED MARKET OPPORTUNITY TO ROLL UP A FRAGMENTED PROPERTY SECTOR THAT HAS YET TO BE INSTITUTIONALIZED POSTAL PROPERTIES ARE VITAL FOR E - COMMERCE AND LAST - MILE DELIVERY STRONG RISK ADJUSTED RETURNS MANAGEMENT TEAM AND BOARD POSSESS DECADES OF POST OFFICE EXPERIENCE LAR
Postal Realty Trust — Investor Presentation (August 2019) on 6ix