Postal Realty Trust Inc (NYSE:PSTL) Q1 2024 Results Conference Call May 8, 2024 9:00 AM ET

Company Participants

Jordan Cooperstein - IR
Andrew Spodek - CEO
Jeremy Garber - President
Robert Klein - CFO

Conference Call Participants

Anthony Paolone - JP Morgan
Stephen Dumanski - Janney Montgomery Scott
Jon Petersen - Jefferies

Operator

Ladies and gentlemen, greetings and welcome to the Postal Realty Trust First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Jordan Cooperstein, Vice President of FPNA Capital Markets. Please go ahead, sir.

Jordan Cooperstein

Thank you and good morning everyone. Welcome to Postal Realty Trust first quarter 2024 earnings conference call. On the call with me today we have Andrew Spodek, Chief Executive Officer; Jeremy Garber, President; Robert Klein, Chief Financial Officer; and Matt Brandwein, Chief Accounting Officer. Please note the company may use forward-looking statements on this conference call, which are statements that are not historical facts and are considered forward looking.

These forward-looking statements are covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control, including but not limited to, those contained in the company's latest 10-K and its other Securities and Exchange Commission filings. The company does not assume and specifically disclaims any obligations to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operations, adjusted funds from operations, adjusted EBITDA, and net debt. You can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP measures in the company's earnings release and supplemental materials.

With that, I will now turn the call over to Andrew Spodek, Chief Executive Officer of Postal Realty Trust.

Andrew Spodek

Good morning and thank you for joining us. I'm pleased that our success in 2023 has continued into the current year. Our first quarter acquisition pace and weighted average cap rate were slightly ahead of the same period last year. We added 29 properties for $19 million at a weighted average cap rate of 7.8%, and our year to date activity has us on track to achieve our full year 2024 acquisitions guidance of $80 million at or above a 7.5% weighted average cap rate. While our transaction market is not immune to the current volatility and interest rates, I believe the Postal real estate sellers are less focused on movements in the 10 year treasury as they are in more heavily brokered sectors. I'm encouraged by our active pipeline sourced from existing relationships and many new prospects, some of which we have tracked for many years.