Postal Realty Trust to acquire USD15.5m portfolio
Postal Realty Trust, an internally managed real estate investment trust that owns properties leased to the United States Postal Service (USPS), is to acquire a portfolio (Portfolio) of 22 properties leased to the US Postal Service for approximately USD15.5 million.
The Portfolio is comprised of approximately 91,900 net leasable interior square feet and upon acquisition will generate a weighted average rental rate of USD15.60 per square foot. As part of the consideration for the Portfolio, the Company expects to issue approximately USD8.2 million of OP units valued at USD17.00 per unit. The balance of the purchase price is expected to be funded with proceeds from the Company’s line of credit. The deal is expected to close during the first quarter of 2020, subject to the satisfaction of certain customary closing conditions.
Currently, the Company owns 460 properties in 44 states comprising approximately 1.4 million net leasable interior square feet generating a weighted average rent of USD9.33 per square foot. Upon the successful completion of this acquisition, the Company will have added 211 properties since its IPO in May, an increase of 77.9 per cent by property count.
Andrew Spodek, Postal Realty Trust Chief Executive Officer, says: “Our success identifying and engaging with sellers of USPS properties continues to build as evidenced by our entry into a contract for a second large portfolio of postal properties since our IPO earlier this year. USPS property sellers continue to understand the long-term value proposition of our Company as evidenced by our ability to utilise OP units as part of the financial consideration of both transactions. Our top priority remains the scaling of our platform through the addition of high quality, accretive properties to support our dividend and ensure value creation for our shareholders over time.”