Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: With the change in Postmaster General, will there be any changes to the lease agreements for Postal Realty Trust? A: Andrew Spodek, CEO, stated that the change in Postmaster General does not affect the lease documents. The company continues to work effectively with the postal service to stay ahead of lease agreements, and the leases represent only 1.5% of the postal service's total operating expenses, making it a low priority for change.
Q: The postal service plans to save $36 billion over the next decade, partly by eliminating unnecessary facilities. Does this include post offices? A: Andrew Spodek, CEO, clarified that the postal service's cost-cutting measures do not target the facilities Postal Realty Trust invests in. The postal service has indicated no changes to their retail network, which includes the properties owned by Postal Realty Trust.
Q: How does the postal service's regional transportation optimization initiative affect Postal Realty Trust's acquisition strategy? A: Andrew Spodek, CEO, explained that the acquisition strategy considers the critical nature of properties to the postal service's operations. Any shifts in postal service logistics are factored into the decision-making process when acquiring new properties.
Q: What are the main offsets to internal growth and growth through acquisitions for 2025? A: Robert Klein, CFO, mentioned that the primary factors include recurring capital expenditures and adjustments from FFO to AFFO. Acquisitions also impact both the top and bottom lines, but the main drivers have been outlined in their guidance.
Q: How do properties in Postal Realty Trust's portfolio compare to those before acquisition? A: Andrew Spodek, CEO, emphasized that the platform adds value through economies of scale, operational efficiencies, and effective lease negotiations, enhancing the properties' performance once they are part of the portfolio.
Q: What is the impact of catch-up rent payments on the fourth quarter's top-line revenue, and what is the expected run rate for next year? A: Robert Klein, CFO, explained that the company is now caught up with 95% of 2023 and 99% of 2024 leases. The run rate for the year is based on these executed leases, and the contractual rent escalators are outlined in their presentation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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