Postal Realty Trust Inc Q2 2022 Earnings Call Transcript

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

Question: Rob Stevenson - Janney Montgomery Scott, LLC - Analyst : Good morning, guys. Can you talk a little bit about the marketplace today in terms of how much product is coming to market and where pricing expectation is from sellers at this point? Have they -- you talked a little bit about waiting and such, but is there still a good volume of product coming and it's just a matter of waiting out the price? Or are you starting to see any changes in volume, et cetera? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 03, 2022 / 12:30PM, PSTL.N - Q2 2022 Postal Realty Trust Inc Earnings Call

Question: Rob Stevenson - Janney Montgomery Scott, LLC - Analyst : And then I guess the other question for me, what are the conversations like with the postal service and their representatives these days in terms of terms? Given it's a government entity and probably a little slower to react than other people, how much are they acknowledging the level of inflation and all the other stuff that's inherent in the market, real estate leases for your typical Taco Bells and other sort of stuff? How much of that are they recognizing, as you try to negotiate lease terms going forward here? Are they still sticking to where they've been in the past or are they acknowledging that today is a different day than it has been for the last 5, 10 years, et cetera? How are those conversations these days with the tenant?

Question: Rob Stevenson - Janney Montgomery Scott, LLC - Analyst : Thanks, guys. Appreciate the time.

Question: John Peterson - Jefferies - Analyst : Yes, thanks. Good morning, guys. Maybe I could pick up on that last question on kind of lease renewals and inflation. I mean, can you give us any indication of how successful you have have been in pushing higher rents. And I guess just for modeling purposes, as we think through the balance of this year and into next year like should we assume higher leasing spreads and what you've achieved historically?

Question: John Peterson - Jefferies - Analyst : Okay. Might try to capture some more multiyear guidance from you guys. On the G&A side, Rob, thanks for the color on where we should expect G&A for the balance of the year. Just thinking about the scale of your business right now and your opportunities. As we think over the next few years, is there any reason to expect additional outsize G&A growth or Are you guys feeling comfortable with your infrastructure right now to be able to scale up?

Question: John Peterson - Jefferies - Analyst : Okay. And then finally I know you guys have addressed it a little bit, but I would assume the bid ask spread between buyers and sellers is widened out. I know Rob kind of asked about this a little bit, but you had a great acquisition quarter. It seems like a lot of that was front-end loaded because a lot of that you'd already actually announced last quarter. I mean, is it fair to assume the kind of just given the volatility in the market, there's maybe a little bit less opportunities here in the near term, and maybe 2Q is kind of the high quarter of the year in terms of acquisition volume?

Question: John Peterson - Jefferies - Analyst : Thank you so much. That's all I have got.

Question: Eric - BMO Capital Markets - Analyst : Hey guys, it's Eric on for John. Just a quick one on the pipeline. You guys closed a sizable amount of acquisitions in the quarter. I was just kind of curious how much of the REAC quisition kind of played into the large acquisition quarter?

Question: Eric - BMO Capital Markets - Analyst : I appreciate that. And then on the pipeline, are you guys seeing deals being re-traded in the market, given the tightening of the bid ask spread?

Question: Eric - BMO Capital Markets - Analyst : I appreciate it. Thanks, guys. I'll leave it there.