pstl-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 001-38903

POSTAL REALTY TRUST, INC.

(Exact name of registrant as specified in its charter)


Maryland						83-2586114
(State or other jurisdiction of						(IRS Employer
incorporation or organization)						Identification No.)

75 Columbia Avenue

Cedarhurst, NY 11516

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (516) 295-7820

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

Title of Each Class

Trading Symbol

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of August 7, 2023, the registrant had 20,621,598 shares of Class A common stock outstanding.

Table of Contents

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	1
	Consolidated Balance Sheets as of June 30 , 2023 (Unaudited) and December 31, 2022	1
	Consolidated Statements of Operations and Comprehensive Income (Unaudited) for the Three and Six Months Ended June 30 , 2023 and 2022	2
	Consolidated Statements of Changes in Equity (Unaudited) for the Three and Six Months Ended June 30 , 2023 and 2022	3
	Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30 , 2023 and 2022	5
	Notes to Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37
Item 4.	Controls and Procedures	37

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3.	Defaults Upon Senior Securities	38
Item 4.	Mine Safety Disclosures	38
Item 5.	Other Information	38
Item 6.	Exhibits	40
Signatures		41

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

POSTAL REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In thousands, except par value and share data)


	June 30, 2023		December 31, 2022

Assets
Investments:
Real estate properties, at cost:
Land	$	96,063	$	90,020
Building and improvements	405,927		378,596
Tenant improvements	6,643		6,375
Total real estate properties, at cost	508,633		474,991
Less: Accumulated depreciation	(37,286)		(31,257)
Total real estate properties, net	471,347		443,734
Investment in financing leases, net	16,083		16,130
Total real estate investments, net	487,430		459,864
Cash	2,191		1,495
Escrow and reserves	751		547
Rent and other receivables	3,936		4,613
Prepaid expenses and other assets, net	15,225		15,968
Goodwill	1,536		1,536
Deferred rent receivable	1,356		1,194
In-place lease intangibles, net	14,340		15,687
Above market leases, net	385		399
Total Assets	$	527,150	$	501,303

Liabilities and Equity
Liabilities:
Term loans, net	$	163,887	$	163,753
Revolving credit facility	29,000		—
Secured borrowings, net	32,822		32,909
Accounts payable, accrued expenses and other, net	7,996		9,109
Below market leases, net	11,875		11,821
Total Liabilities	245,580		217,592

Commitments and Contingencies

Equity:
Class A common stock, par value $0.01 per share; 500,000,000 shares authorized; 20,002,769 and 19,528,066 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	200		195
Class B common stock, par value $0.01 per share; 27,206 shares authorized:

SEC Form 10-Q filed by Postal Realty Trust Inc.