Form 8-K - Current report

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): January 13, 2025

 

POSTAL REALTY TRUST, INC.

(Exact name of registrant as specified in its charter)

 

Maryland		001-38903		83-2586114
(State or other jurisdiction of Incorporation or organization)		Commission File Number		(I.R.S. Employer Identification No.)

 

75 Columbia Avenue

Cedarhurst, NY 11516

(Address of principal executive offices and zip code)

 

[phone]

(Registrant’s telephone number)

 

Not Applicable

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-I2 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.I4d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share		PSTL		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

Postal Realty Trust, Inc. (the “Company”) issued a press release on January 13, 2025 that provided an update on the Company’s portfolio, collections, acquisitions, capital markets activity and financial position for the quarter ended December 31, 2024. The Company also provided an update on its portfolio and balance sheet at year-end as well as on its acquisitions for the full year of 2024. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. 

 

The information in this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act except as set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.		Document
99.1		Press Release of Postal Realty Trust, Inc. dated January 13, 2025.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

1

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: January 13, 2025

 

	POSTAL REALTY TRUST, INC.
	By:	/s/ Jeremy Garber
		Name:	Jeremy Garber
		Title:	President, Treasurer and Secretary

 

2

 

Exhibit 99.1

 

 

Postal Realty Trust, Inc. Provides Fourth Quarter and Full Year 2024 Update

 

- Executed New Leases with 3% Annual Rent Escalations & Ten-Year Term -

- Acquired 197 Properties for $91 Million in 2024 -

- Full Year 2024 Weighted Average Capitalization Rate of 7.6% -

 

CEDARHURST, N.Y., January 13, 2025 (GLOBE NEWSWIRE)-- Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 2,000 postal properties leased primarily to the United States Postal Service (the “USPS”), ranging from last-mile post offices to industrial facilities, provided an update on its acquisitions, re-leasing and capital markets activity for the fourth quarter of 2024. The Company also provided an update on its portfolio, balance sheet and fully diluted shares outstanding at year-end as well as on its acquisitions for the full year of 2024.

 

For the full year 2024, the Company acquired 197 properties leased to the USPS for approximately $91 million, excluding closing costs. These properties comprise approximately 571,000 net leasable interior square feet and had a weighted average rental rate of $13.61 per leasable square foot. These acquisitions were completed at a weighted average capitalization rate of approximately 7.6%.

 

The Company continued to make significant progress signing new leases with the USPS. As of December 31, 2024, the Company received 88 fully executed new leases from the USPS representing 85% of the aggregate 2023 expired rent and 118 fully executed new leases from the USPS representing 95% of the aggregate 2024 expired rent. 9% of leases within the portfolio were ten-year leases and 27% benefitted from annual rent escalations based on rents in place from leases received as of December 31, 2024.

 

“Despite recent headlines regarding the Postal Service, our business has and continues to perform, maintaining a 99% retention rate with the USPS over the past 10+ years through multiple administrations and USPS organizational changes,” stated Andrew Spodek, Chief Executive Officer. “We have received almost the entirety of the outstanding 2023 & 2024 leases and production is underway on the 2025 expirations. These new leases contain 3% annual rent escalations and include a mix of five and ten-year term. Our progress on the leasing front underscores the Postal Service’s commitment to this crucial logistics network and our portfolio of mission-critical postal properties.”

 

Fourth Quarter & Year-End 2024 Update

 

For the fourth quarter of 2024, the Company acquired 63 properties leased to the USPS for approximately $30.7 million, excluding closing costs, comprising approximately 176,000 net leasable interior square feet. These acquisitions were completed at a weighted average capitalization rate of approximately 7.5%.

 

The Company’s owned portfolio was 99.6% occupied with 1,703 properties across 49 states and one territory with approximately 6.4 million net leasable interior square feet and a weighted average rental rate of $10.60 per occupied leasable square foot based on rents in place as of December 31, 2024. The weighted average rental rate consisted of $12.81 per occupied leasable square foot on last-mile and flex properties, and $3.83 on industrial properties.

 

 

 

 

 

 

In November 2024, the Company drew $10.0 million on the term loan maturing in February 2028. In connection with the draw, the Company entered into an interest rate swap that effectively fixed the interest rate through February 2028 at a current rate of 5.55%. The proceeds from the draw were used to repay the outstanding balance on the revolving credit facility.

 

At the end of 2024, 95% of the Company’s debt outstanding was set to fixed rates and $136 million of the Company’s senior unsecured revolving credit facility was undrawn. The weighted average interest rate of the Company’s total debt outstanding was 4.35%.

 

During the quarter, the Company issued through its at-the-market offering program 185,445 shares of common stock at an average gross sales price of $14.57 per share. In addition, the Company issued 171,414 common units in its operating partnership as part of the consideration for property acquired during the quarter.

 

As of December 31, 2024, there were 29,924,517 fully diluted shares outstanding (including securities convertible into shares of Class A common stock such as common units and long-term incentive units in the Company’s operating partnership and restricted stock units) and the weighted average fully diluted share count for the fourth quarter of 2024 was 29,860,647 shares.

 

About Postal Realty Trust, Inc.

 

Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 2,000 postal properties leased primarily to the USPS.

 

Forward-Looking and Cautionary Statements

 

This press release contains “forward-looking statements.” Forward-looking statements include statements identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements, including, among others, statements regarding the Company’s anticipated growth and acquisition activity, are based on the Company’s current expectations and assumptions regarding capital market conditions, its acquisition pipeline, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the USPS’s terminations or non-renewals of leases, changes in demand for postal services delivered by the USPS, the solvency and financial health of the USPS and the Company’s other tenants, competitive, financial market and regulatory conditions, disruption in market, general real estate market conditions, the Company’s competitive environment and other factors set forth under “Risk Factors” in the Company’s most recent filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

Contact:

 

Investor Relations and Media Relations

Email: [e-mail]

Phone: [phone]

 

 

 

 

 

Cover	Jan. 13, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 13, 2025
Entity File Number	001-38903
Entity Registrant Name	POSTAL REALTY TRUST, INC.
Entity Central Index Key	0001759774
Entity Tax Identification Number	83-2586114
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	75 Columbia Avenue
Entity Address, City or Town	Cedarhurst
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11516
City Area Code	516
Local Phone Number	295-7820
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, par value $0.01 per share
Trading Symbol	PSTL
Security Exchange Name	NYSE
Entity Emerging Growth Company	false

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