Postal Realty Trust Inc Q1 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Benjamin Ira Zucker - Aegis Capital Corporation, Research Division - Analyst : Congratulations on another strong quarter. Andrew, could you just quickly review some of the information you were going over in your prepared remarks about the changes in the USPS lease structure? And I guess what I'm most interested in is I couldn't understand whether you were saying this pickup in expenses should be offset by the fact that you get to reset your lease rates every 5 years as like a catch-up or if you were able to pick up additional rental increases above and beyond that typical step-up because of this change in the cost-sharing structure.

Question: Benjamin Ira Zucker - Aegis Capital Corporation, Research Division - Analyst : Got you. Okay. That's very helpful. I guess from the general view of things, it seems like you got -- the USPS continues to be a really strong tenant. I'm just kind of wondering, is there anything related to the COVID environment, notwithstanding just the extension of maybe the acquisition time line that you see as an actual like imminent threat or risk to your company or the properties that you own?

Question: Benjamin Ira Zucker - Aegis Capital Corporation, Research Division - Analyst : Well, I think you guys have done a prudent job in kind of managing the company along with the step-up in the dividend. And maybe some good news for the post office is, I guess, if it sounds like we're going to be moving towards mail and ballots for the next election, that's just yet another need for the post office down the road.

Question: Benjamin Ira Zucker - Aegis Capital Corporation, Research Division - Analyst : I just had a quick question regarding company leverage. First part is just could you remind me of where that kind of long-term stated leverage range is? I think it was something around 50% like net debt to enterprise value. And then just my question was, was there any kind of change to that longer-term thinking in light of or in response to the current environment? I wouldn't expect anything just given the strength of your tenant right now but just wanted to ask about kind of your longer-term leverage goals real quickly.