Postal Realty Trust, Inc. · NYSE:PSTL
Postal Realty Trust — Investor Presentation (May 2023)
23 slides from Postal Realty Trust's investor presentation, May 2, 2023
Slide 1: Investing in America's Logistics Network
INVESTING IN AMERICA’S LOGISTICS NETWORK MAY 2, 2023
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: Long-Term Investment Proposition: Attractive Return Profile
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 Current deal flow o 99% weighted o Attractive dividend o Cash G&A as a within 6% - 8% averag
Slide 5: Diversified Real Estate Portfolio
PORTFOLIO DIVERSIFIED REAL ESTATE PORTFOLIO 13% 29% ANNUALIZED GROSS RENT1 35% 23% MIDWEST NORTHEAST SOUTH WEST 1,332 5.5MM 49 Properties Owned Interior Sq. Ft. States2 99.7% 30MM+ ~3 YEARS Occupancy Site Sq. Ft. Weighted Average Lease Term3 Note: Figures as of April 26, 2023, 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% 92MM SQUARE FEET of the leased market1 o Nearly 17,000 different lessors of properties leased to the USPS OWNED BY PSTL 5.5MM 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% 99% 99% 99% 98% 98% Historical Weighted Average Lease Retention Rate1 97% 96% Federal government-supported credit USPS operating lease payments represented only 1.7% of the USPS’s total o
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 (2) 2023 173 902,111 $7,796,640 15.8% 2024 94 538,415 $5,161,136 10.4% 2025 204 617,032 $7,391,137 14.9% 2026 264 1,041,668 $9,957,641 20.1% 2027 313 1,
Slide 12: Meaningful Growth Since IPO
ATTRACTIVE RETURN PROFILE MEANINGFUL GROWTH SINCE IPO Annual Acquisitions ($ in millions)(1) Cumulative Acquisitions ($ in millions)(1) $130 $481 $123 $459 $118 $47 $30 $335 $88 $218 $65 $67 $22 $88 $35 $18 $18 $21 FY'20 FY'21 FY'22 2023 YTD 2019 Post IPO FY'20 FY'21 FY'22 2023 YTD Last-Mile Flex In
Slide 13: Total Capitalization
CAPITAL STRUCTURE TOTAL CAPITALIZATION $17MM Total Capitalization Revolver o Debt outstanding currently 92% $581MM fixed rate Unsecured bank o No notable debt maturities until $165MM Term Loans facilities 2026 Total Debt o 91% of assets are unencumbered by secured debt(2) $215MM $33MM Other Debt o U
Slide 14: Low Leverage
CONSERVATIVE BALANCE SHEET LOW LEVERAGE TARGETS: BELOW 40% NET DEBT TO ENTERPRISE VALUE BELOW 7.0x NET DEBT TO ANNUALIZED ADJUSTED EBITDA Net Debt to Enterprise Value Net Debt to Annualized Adjusted EBITDA 12.0x 50.0% 45.0% 10.0x 35.9% 40.0% 34.6% 35.7% 33.0% 35.0% 8.0x 30.0% 6.0x 23.0% 25.0% 5.5x 5
Slide 15: 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 16: 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 17: Appendix
APPENDIX 18
Slide 18: 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 837 1.1MM $12.2MM $10.71 FLEX2 PROPERTIES 2,500 - 50,000 INTERIOR SQUARE FEET Property Count Interior Sq. Ft. Annualized Base Rent An
Slide 19: Last-Mile
APPENDIX LAST-MILE ENGELHARD, NC BALSAM LAKE, WI o 1,400 sq. ft. facility overseeing 2 other post o ~2,000 sq. ft. facility built in the 1990s that has 5 offices with 4 delivery routes delivery routes and oversees 2 other facilities o Located at the edge of the Pamlico Sound, one o Purchased as part
Slide 20: Flex
APPENDIX FLEX WATKINSVILLE, GA INDIAN SPRINGS, NV o ~8,300 sq. ft. post office, that oversees 3 other o Located just outside Las Vegas, this ~4,200 sq. ft. facilities and is essential to the local USPS office oversees another facility and is a crucial USPS network in Oconee County, GA logistic node
Slide 21: 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 22: Board and Executive Team Well-Aligned with Shareholders' Interest
APPENDIX BOARD AND EXECUTIVE TEAM WELL-ALIGNED WITH SHAREHOLDERS’ INTEREST ~14% 100% of the outstanding equity interest in Postal Realty Trust owned by management of C-Suite incentive compensation elected to be received in restricted and board stock or LTIP units 23
Slide 23: Disclaimer and Definitions
APPENDIX DISCLAIMER AND DEFINITIONS This presentation regarding Postal Realty Trust, Inc. (the “Company”) contains “forward-looking statements.” Forward-looking statements include statements identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “se
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