Postal Realty Trust Inc Q3 2024 Earnings Call Transcript

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

Question: Anthony Paolone - JPMorgan - Analyst : Thanks. Good morning. First question is, just as it relates to doing these 10-year duration deals now, can you talk a bit more about just whether that becomes a default duration or whether it's just certain assets that USPS is willing to go that length? Or maybe just talk a bit more about that process.

Question: Anthony Paolone - JPMorgan - Analyst : Okay. But it's something -- as we start to look to next year, you think you can maybe do more along those lines, like it doesn't have to just be five years at this point, like we could see more duration in the portfolio.

Question: Anthony Paolone - JPMorgan - Analyst : Okay. And then just my second one, it sounded like from your intro comments that this really was a newer way of doing business with them to get these leases knocked out earlier than maybe what we've been seeing over the last couple of years. And so just remind me, is there any risk that that changes with the election or change in administration? Or is their process kind of just ring-fenced and just should continue the way you've been doing it?

Question: Anthony Paolone - JPMorgan - Analyst : Okay. That's all I got. Thank you.

Question: Ki Bin Kim - Truist Securities - Analyst : Thanks. Good morning. I was wondering if you can share some more details around the leases, and more specifically, if you can talk about the cash or cap lease spreads that you were able to achieve.

Question: Ki Bin Kim - Truist Securities - Analyst : If you can talk about the lease spreads that you were able to achieve.

Question: Ki Bin Kim - Truist Securities - Analyst : Okay. Maybe I can ask it a different way then. When you look at that at least 3% growth projection for '25, can you help us break down the components of it?

Question: Ki Bin Kim - Truist Securities - Analyst : Okay. Understandable. Just last question then, is that 3% growth projection for 2025, would you say that's somewhat of a sustainable figure? I wasn't sure if there were some other components that might be driving it a little bit higher.

Question: Ki Bin Kim - Truist Securities - Analyst : Okay. Thank you, guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2024 / 2:00PM, PSTL.N - Q3 2024 Postal Realty Trust Inc Earnings Call

Question: Steve Dumanski - Janney Montgomery Scott LLC - Analyst : Thank you. I appreciate that you provided some insight on the two dispositions. Can you just provide more, I guess, of an update on why they were transacted at such a relatively low blended cap rate and if you see any more of these opportunities in terms of recycling capital going forward?

Question: Steve Dumanski - Janney Montgomery Scott LLC - Analyst : Thank you. That's all from us.

Question: Eric Borden - BMO Capital Markets - Analyst : Hey. Good morning, everyone. Maybe just starting with the acquisition environment, you noted that 3Q volumes were lighter than expected, but you still maintained the full-year target of $90 million. So I guess, what's kind of given you confidence to achieve that $90 million guidance as you look to continue to acquire in the fourth quarter? Thank you.

Question: Eric Borden - BMO Capital Markets - Analyst : That's helpful. And then maybe just on the cap rate environment, just given the tenure still remains volatile today post the Fed cutting rates, just curious, are buyers readjusting to that higher rate environment? Or are they still expecting kind of better pricing on their end just given potential future cuts? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2024 / 2:00PM, PSTL.N - Q3 2024 Postal Realty Trust Inc Earnings Call

Question: Eric Borden - BMO Capital Markets - Analyst : Okay, that's helpful. Thank you very much. That's it for me.