Postal Realty at Midwest Ideas: Strategic Growth Amid Challenges

Postal Realty Trust Inc (NYSE:PSTL) presented a strategic overview at the 16th Annual Midwest Ideas Conference on Tuesday, 26 August 2025. The company highlighted its growth trajectory and resilience in the face of challenges such as COVID-19 and rising interest rates. With ambitious plans to expand its market share, the company remains optimistic about its long-term growth potential.

Key Takeaways

• Postal Realty has increased its property portfolio significantly, from 270 to over 1,850 properties since its IPO.
• The company targets owning 8-9% of the postal real estate market, valued at $12-15 billion.
• Adjusted earnings guidance is set at $1.24 to $1.26 per share, with an 8% year-over-year earnings growth.
• The CEO emphasized the company’s unique relationship with the USPS, enabling favorable lease terms.
• A focus on last-mile and flex properties is central to the company’s growth strategy.

Financial Results

• Adjusted earnings guidance has been set at $1.24 to $1.26 per share.
• The company reported an 8% year-over-year earnings growth.
• Same-store net operating income (NOI) guidance was updated to 7% to 9%.
• Postal Realty acquired over $50 million in postal facilities in February and adjusted its acquisition guidance to at or above $90 million for the year.
• Target acquisitions are set at or above a 7.5% cap rate, up from 6.5% in 2022.

Operational Updates

• The portfolio now includes more than 1,850 properties, with plans to acquire 200 to 300 properties annually.
• The company maintains a 99.8% retention rate, with only two vacancies across its portfolio.
• 75% of deals are off-market, sourced directly without brokers.
• By 2026, 32% of the portfolio will have ten-year lease terms, with 56% featuring 3% annual escalations or better.

Future Outlook

• Postal Realty aims to own 8-9% of the postal real estate market.
• The company targets a market cap of $1-3 billion to reduce capital costs.
• Plans to increase the percentage of leases with annual escalations are underway.
• The company is considering bond offerings to optimize its balance of debt and equity.

Q&A Highlights

• The CEO addressed concerns about the USPS’s financial stability, emphasizing the critical role of postal facilities in the USPS network.
• Operating partnership units do not have voting rights, but they can convert to common shares, triggering capital gains tax.
• The CEO’s compensation is entirely equity-based, aligning his interests with shareholders.

Postal Realty Trust Inc’s detailed strategic plans and optimistic outlook underscore its commitment to growth and shareholder value. For a deeper dive into the company’s strategies and financials, readers are encouraged to refer to the full transcript.

Full transcript - 16th Annual Midwest Ideas Conference:

Unidentified speaker, CEO: Good afternoon, everybody. Appreciate you guys sticking around for us. So in order to give you the story about the company, I kinda have to back up and give you the background on myself and my family and how we got here. So my father, who owned different types of real estate and was involved in real estate the majority of his life, was approached to buy a small portfolio of postal assets in the early eighties. At the time, didn’t realize like most people that the postal service even leases any of their assets.

He ended up buying that small portfolio and found very early on some of the benefits of ownership. First and foremost, because of the preferential lease structure, can buy these properties all over the country. We currently own in 49 states. Number two is that regardless of what’s going on in the world, you’re gonna collect your rent. We collect a 100% of our rent a 100% of the time.

Doesn’t matter government shutdowns, economic cycle, COVID, etcetera. And number three, which is the largest misconception in postal real estate is that the Post Service stays in their building the majority of the time. We’ve maintained over 99% retention rate over the past ten plus years. And for all those reasons and more, he continued to buy these assets. In the early 2000s, my father semi retired and I took over the business, kind of institutionalized it more by nature than by strategy, continued to grow the portfolio a bit more aggressively, I became the largest owner of leased assets to the Post Service.

My father passed away in 2016. About a year after he passed away, I was approached by a banker to create a public company around our portfolio. Never had any desires of standing here in front of you guys. Never had any desires of being a public company CEO or anything of the like. Didn’t have any investors on the properties myself.

Was very low levered. Came to work in a hoodie. Never had a business card. But I spent about a year or so researching what the opportunity was. And I learned a lot about myself, the business, but more importantly about the market itself.

Sometimes you find when you’re when you’re in a business and you’re just kind of doing it every day all day, you’re focused on that and not necessarily what the market is. So Postal 101 is like this. There are about 32,000 facilities throughout the country. The postal service leases 23,000 of them. They pay approximately $1,600,000,000 in rent for those 23,000 facilities.

Anyway you slice it, any margin you want to put on it, it’s got to be a $12,000,000,000 to $15,000,000,000 plus market. Those 23,000 facilities are owned by approximately 17,000 owners. Those owners are, for the most part, in their sixties to eighties. Those owners have owned their buildings forty to fifty years and have very little, if any, depreciable basis. It’s also interesting to note that that $1,600,000,000 is only 1.5% of the Postal Services operating expenses.

So the backbone of their entire delivery business is 1.5% of their expenses. So I realized how fragmented the market is. I realized being in this business my entire life that most of the transactions that happen are typically because families are planning for their children or life events or something of the sort. And when I when I learned about the possibility of what an up restructure is, and I’ll explain what that is in a second, I I realized that there was a benefit to it for these particular owners. So creating this public REIT as an upreach structure gives us a currency.

We’re able to exchange people’s properties for operating partnership units. Those operating partnership units look and feel like common shares. However, they are not liquid. They’re not not tradable on the stock exchange. And number two is they don’t have voting rights.

But what the benefit is is someone can give us their property. We can give back these units. They do not trigger a capital gains tax. And they do collect a distribution, which is like a dividend. These shares are very flexible and very easy to estate plan.

And different than a property, can divide them up against family members, you can, you know, donate them, you can do whatever you wanna do with them without triggering tax. And when someone passes, they get a stepped up basis and then they can convert them to shares and not trigger capital gains tax. Knowing what I know about this space and being in it as long as I I have been, I thought this was gonna be a tremendous driver to this thesis. When the bankers took me on our roadshow and I met with investors, everybody told me that REITs always say they’re gonna use the currency and they very rarely do. I believe we’re different, and I think we’ve proven out that we are.

So we we do 10 to 15% of our deal flow with this currency. We can do a significant amount more, but we usually choose not to. And the goal is to grow the company. The goal is to grow the market cap of the company and the liquidity. And you can’t do that by using these operating partnership units.

But what it does is it drives a tremendous amount of deal flow to us. We do 75% of our deals are off market, and I mean properly off market. They don’t touch brokers. These are people that are calling us or people that we are calling. And that gives us tremendous opportunity in this market.

Anyway, we went public about six six years ago. I seeded the public company with a portion of my personal portfolio. This was not a monetization for me in any way, shape or form. I did not take a dollar out of it. I’m the largest shareholder.

I own these operating partnership units that I’ve been speaking about. So we seeded it with about two seventy properties, and now we are north of eighteen fifty properties. We buy 200 to 300 properties a year. This year, we’ve articulated buying at or above a 7.5% cap, which we’ve done in the first two quarters. First February of the year, we bought over $50,000,000 of postal facilities.

And we had given guidance of buying between 80,000,000 and $90,000,000 this year. I’ve adjusted that guidance and now we are going to be at or above that $90,000,000 mark. This past quarter was pretty significant for us. We put up great numbers again like we have the past few quarters, but we’re also able to adjust our guidance. We were able to adjust our earnings guidance to $1.24 to $1.26 a share And we were able to update our same store NOI guidance to 7% to nine percent.

Putting up 8% year over year earnings growth is something that we’re very proud of. We’ve been working very hard at. A lot of this is the ability to find efficiencies in operating these properties and saving costs. A lot of this is our mark to market of our leases. And also, what I believe is a proof of concept in our platform and the volume, the value of the platform is our ability to get annual escalations in our leases.

We’re gonna open this up to questions. I’m sure you guys have some. But what you’ll find in most of the answers is that our answers are different than every other owner. Our relation with the post service is different than every other owner. And as a result, we’ve been able to get things that other owners don’t have.

So most owners have a five year fixed lease, no escalations. Most owners negotiate with the Pulse Service through an intermediary. Currently, it’s Jones Lang LaSalle, and they pay for the privilege to be able to do that. We don’t do that. We don’t negotiate through a third party.

We do not pay a fee in order to do that. We have a provider lease document. We have leases with 3% annual escalations. We have instituted now ten year leases. So when we complete the twenty twenty six leases that are all agreed to, we will be 32% of our portfolio will have ten year term and 56% will have 3% annual escalations or better.

Again, proof of concept in our platform and our value and the value creation that we’re doing for shareholders and the numbers that we put up this past quarter, guess, are kind of proof of that. I think that should get us started for some Q and A. Anybody have any questions? Please. So that’s a great question.

Luckily, we don’t have to deal with it very often. We have a 99.8% retention rate. Over the past six years being public, we’ve had two vacancies across eighteen fifty or more properties, one of which we sold vacant at a marginal profit to what we paid for it. The other one is still vacant, accounts for like under 10 basis points of income. It’s thankfully not not really a big concern of mine.

In general, in my life of owning postal assets, this has always been not really a major focus of my business. When we do have vacancies, we typically sell them. We’ve seen them converted very easily to medical offices, banks, pharmacies, hardware stores. One of the buildings we sold, they they built, you know, I think it was six or eight stories of lofts on top of the building because there was a housing need in the area. These buildings, by nature, are very simple, and they can be converted to pretty much anything.

They have three general components. You have a a retail section, a small office component, and a warehouse section. Each one of these can be, you know, grown or shrunk depending on what the needs of the building are. It should you should recognize that we’re buying these at a very, good value. It’s not just at a cap rate.

Right? Real estate, at least the way that I was taught it, is really a price per square foot business. It’s not a cap rate business. We’re buying these a 150 to a $160 a square foot and under. That’s for land building and lease.

If I give this building to the postal service as a vanilla box and they had to build it out, it would cost them over $200 a foot just to do the build out. And so if you look at other, know, let’s call it double or triple net players throughout the country, let’s call the low end of the totem pole is a Family Dollar or Dollar General. You’ll typically see those trading between 200 and $300 a foot in the same towns and counties. If you look at pharmacies or bank branches, you’ll see those trading anywhere between $400 to $600 So I believe we’re buying these at tremendous value.

I believe that the cap rate by itself is a good value, 7.5% on arguably the best credit you’re going to find out there. But I’m obviously biased. Please. Yeah. No.

We we we don’t care. As long as we believe that the postal service needs or wants to be in the building, from our perspective, the the purchase price of the property is not that significant. When you’re buying the property, there’s two underwriting criteria that we go through. Right? First is the postal service, the specifications and and why we think they need to be in that building.

Once we’ve checked that box, then we’re looking at the real estate value. We want to make sure that we’re buying this at or below replacement cost. We want to make sure that we’re buying this at or below what the market is from a rental perspective and a price per square foot perspective. So yeah, the size of the property doesn’t matter. What you’ll find and what Jordan has put up on the screen is a breakdown of the Postal Services portfolio as we look at it.

And the smaller properties are what we refer to as Last Mile, and we own a piece of that market. The flex is, let’s call it, the middle sized property, 50,000 square feet and under. And then there’s the industrial. The industrial is not really the focus or the bread and butter of our business. We really focus on the last mile and flex.

The industrial properties are more opportunistic for us depending on if we see something that we can buy at a good price where we can add value to it.

Unidentified speaker, Analyst: When you buy them, do you have like a remaining lease? Usually. And is your agnostic as to whether he has two, five, seven?

Unidentified speaker, CEO: I’m not agnostic. We have to we have to buy it based on whatever the lease term is. If I got to choose, I would buy it the day before the lease expires because I’d like to negotiate the lease as quickly as possible. We’re buying and negotiating these leases significantly better terms and prices than the other owners. You have to understand the demographic of the average postal owner is I refer to them as mom and pops.

Right? This is usually the only asset real estate asset they own aside from their home. This is not being looked at as a business for them. They are normally not pushing very hard on the negotiation of the terms of the price that they’re getting in their leases. They don’t know what buttons to press.

They don’t know how hard to push. They don’t know what the value of the property is. They don’t have attorneys or accountants or brokers. Don’t have market information and the demographics and CoStar and and all the resources that we have to know what market looks like. And so if I could negotiate the leases the day after I buy it, that’s what I would prefer.

But normally, it’s usually we’re buying these on average with a two to three year Walt just because most people don’t sell their properties the first year, the lease, or the last year. And so we just end up in that usual range. I’m sorry. Sir? Okay.

That was good.

Unidentified speaker, Analyst: The dividend of the operating partner units, are those qualified dividends?

Unidentified speaker, CEO: Are they qualified dividends? They have to be referred to as a distribution and not a dividend just because of the ownership structure. I believe it’s a good question. I’ve never had that question before. I believe that it is.

I’m I’m pretty sure it is. But I can get back to

Unidentified speaker, Analyst: you on that. You’re essentially a limited partner, you’re getting K1 every year for your OB industry. Please.

Unidentified speaker, CEO: Yeah, so I’m sorry but I’m going to challenge and disagree with you on most of what you said. First of all, Denmark is a franchise postal business. The United States is not. Right? I’ve looked at government I’ve looked at postal systems outside The United States, and they’re not government backed properties the way that this is.

I think that with all due respect, and it’s not you, it’s it’s most people that hear these headlines or or read these headlines that they’re conflating a lot of things. The Postal Service is, I think, the second largest employer in this company, in this country. They’re a mammoth major organization. Okay? I think they have, I don’t know, six to 900,000 employees.

Okay? There are tremendous amount of efficiencies that they can find within the organization and that they’re looking at. The buildings are just not where they’re looking. And the reason why they’re not looking is because number one, from a business standpoint, the last mile or delivering to the American people is their virtual monopoly. It’s the it’s the it’s the bread and butter of their business.

And if you take some of these facilities out of the logistics network, it makes it more cost more costly to try to get to the end player. Right? From a business standpoint, they need this network, this this logistics network in order to deliver to their business. But when you look at any business, I don’t care what business you’re looking at and you’re trying to find efficiencies, you usually don’t look at the one and a half percent line item. Especially when your largest line item, which is labor, is like 60 to 70%.

So if if you took some of these buildings out of the network, which I don’t think they’re going to, but but if we go with your argument that they would, what would happen is the labor from the surrounding facilities would just go up. And so it wouldn’t be cost effective for them to to shut these buildings down. They about fifteen years ago, give or take, they did something called the post plan. And what the post plan did, and you guys wouldn’t recognize the terminology, but but you’ll recognize what I’m saying, which is they lowered the hours of some of these buildings. Right?

So so your your building went from eight hours to six hours. The reason they did that is by taking the buildings from a a quote unquote full time building to a part time building, they took out the need for a full time, fully loaded employee out of the need to operate these buildings. Right? Again, your labor was your largest component. Just lowering the hours of the building took out $500,000,000 a year out of their expenses year over year in perpetuity, which made up operating these buildings much more cost effective.

Right? Again, the whole rental for all of the 23,000 buildings is 1,600,000,000.0. Right? They saved $500,000,000 just by lowering the hours. This year alone, they’re focused on finding efficiencies in transportation by shortening the amount of routes that they’re doing.

That savings they’re targeting is $3,000,000,000 of savings. So when you’re looking at a company, any company that’s doing any business, you try to find the larger line items to find your efficiencies and your savings. To try to close some buildings is not gonna move the needle for them. And I believe that they need these buildings. Please.

Unidentified speaker, Analyst: Facility or is it each deal individually?

Unidentified speaker, CEO: Corporate unsecured facility at the parent level. It’s not cost effective or efficient to do individual property debt even though we can. If there was a reason to on a particular building or group of buildings, that is something that we do look at and think about, but it usually hasn’t made a lot of sense. We have a few of them, but in general, it’s not our focus. And as we continue to grow, we want the flexibility to be able to do bond offerings and other things.

And you can’t if if you’re gonna put individual mortgages on these properties, you give up that flexibility. You guys wanna rock, paper, scissors?

Unidentified speaker, Analyst: Two questions. As I understand that

Unidentified speaker, CEO: Yes and no. The the operating partnership units look and feel like a ten thirty one exchange. So so sellers are attracted to us because we can we can offer them a currency like that.

Unidentified speaker, Analyst: Yeah. How does it put as an individual or do I get a dividend check or a k one?

Unidentified speaker, CEO: You get a k one. If you if you did an operating partnership unit transaction. If you’re a shareholder in the public company and you buy shares like we all do, then you would get a dividend.

Unidentified speaker, Analyst: Some of the return is because of depreciation

Unidentified speaker, CEO: You’re right. Taxable. So you’re absolutely right. And because we pay more in dividends than we have to based on the REIT rules, the people that own our shares get a significant tax benefit. So last year, I’m a shareholder, so I got and we all the shareholders got, 30% of our dividends were return of capital and weren’t taxed.

And that net is a tremendous value to people that care about taxes to to your return of income.

Unidentified speaker, Analyst: I’m sorry.

Unidentified speaker, Analyst: I’ve got a you may have answered this, came in a little late. But do you have an idea of where you would like to be as far as share of the market in five or ten years from now and then how much that would cost to get there in terms of dilution or in terms of what that would mean for current shareholders?

Unidentified speaker, CEO: I’m gonna try to answer the question and you’ll tell me, you know, it’s it’s not exactly your your answer. But if we look at this as a 12 to $15,000,000,000 market, if I was looking at it today, I only want to own eight to nine Right? And so that to me is what I’m targeting. I’m I’m a firm believer in once we get to, let’s call it, the 1 to $3,000,000,000 area, that the whole world changes for us from a cost of capital standpoint.

One of the when when we were building this, I interviewed a bunch of people for board positions. And very smart, sophisticated, unbelievably experienced people in different areas. One of the people that I interviewed was a former CFO of a of a REIT with the simple cars, c a r s. It was a roll up of car dealerships and very successful. And what he taught me was that at a certain point in their life cycle, when the when the banks recognized how low his default rate was, which is I mean, his default rate was worse than what ours is.

But his cost of capital got so inexpensive that he was getting a hundred year amortization on his borrowing that he was able to actually lend money, okay, and make his lending sometimes more profitable than his acquisitions. And so my the reason why I’m saying this is because as we continue to grow and build this platform the way that we are, I believe that that’s going to be recognized by people and our cost of capital is gonna be low and our multiple is going to be high. And as a result of that, our ability to buy will drastically change. Right? We’re we’re pushing a boulder up a mountain now because we’re a very small company.

And we knew that going into it. And and arguably, COVID and rise in interest rates has have slowed us down significantly. We should be double the size that we are today, and we would be if both those things didn’t happen. And I think that if we were, we’d be able to move at a much faster pace than we are today, and we’d be able to accomplish aggregating that a larger scale of the market. So I think that my answer today is gonna be different than my answer is gonna be in a year or two, I guess is what I’m trying to say.

Unidentified speaker, Analyst: Yes. Any other fee or anything else?

Unidentified speaker, CEO: Nope. The only fee the only difference, just to I’m clear because I like to be as transparent as I possibly can. When this public vehicle was was formed, I contributed a significant amount of properties and significant amount of money in operating partnership units. And what I gave myself was the ability to vote my economic interest. So if you were a postal owner and you contributed your properties today and took back operating partnership units, you wouldn’t have the ability to vote.

I gave myself the ability to vote. That’s all I gave myself. No supervoting, no extra powers, no multiples of anything, but just the ability to vote my economic interest that I was committing to the to the public company. That’s the only difference. Sorry.

I just wanted to The profile of the property that we would have bought in ’21 or ’22 or today is is is similar. The the difference would be is because my cost of capital is different, I can’t buy deals at, let’s call it a six cap when I could have bought it then. Right? And so if you look at the ’22, right, because interest rates started moving, let’s call it March ’22, around there. Right?

’2, we did about $80,000,000 at a 6.5 cap, give or take, right? Today we’re doing, let’s call it 80,000,090 million dollars for the year at north of a 7.5, Right? So the six and a half out of the gate is not dilutive today is is dilutive today. The seven and a half is accretive today. And so we’re we’re constantly weighing our line of accretion and what we can buy and what we can’t buy.

But the profile of the property from a specifications of what we’re trying to buy hasn’t really changed. It’s it’s just our ability to buy and limiting what we can buy based on cap rate and cost of capital. I think I answered that. Nuance follow-up. Please.

You’re buying

Unidentified speaker, Analyst: the same quality at a 100 basis point improved cap or you have to go down the quality to get the numbers.

Unidentified speaker, CEO: It’s it’s a good question. So I’m gonna answer it. The the quality is the same. Okay? But I’m gonna I’m gonna explain how we did it.

So what you’ll find is for 2022, prior to that, I was able to buy larger portfolios or larger properties where now or since then, the larger owners, more sophisticated owners or larger portfolios weren’t willing to adjust their prices. So what I did was I did more deals and more single asset deals as opposed to port portfolios because I knew I could negotiate those better. It’s not the it’s not the assets. It’s just the amount of work. Please.

So

Unidentified speaker, Analyst: help me understand how your ownership interest arising out of the properties you own previously.

Unidentified speaker, CEO: So common shareholders have the ability to vote because when you buy a common share in a in a company, you’re able to vote. The operating partnership units do not have the ability to vote.

Unidentified speaker, Analyst: Is that a requirement that you

Unidentified speaker, CEO: No. No. This has nothing to do with me. It’s a legal structure. It’s a legal structure.

Because they have to be limited partners. Right? This is this is about creating the No. No. Those are post offices.

This is pure play postal. I contribute yeah. I contributed postal assets to this. Just to be clear, I contributed I don’t remember how many, 200, whatever. Post offices that I owned personally.

I did not take any cash out. I took all of my ownership in operating partnership units and stock. To be even further clear, I haven’t taken any cash compensation from this company since we went public. I take all of my compensation and equity. I am as aligned with shareholders as I believe you could possibly be.

If anybody has an idea of how to be more aligned, I’d love to hear it. And yes, I I this is a pure play postal. We do have a couple of secondary tenants, is what I thought you were gonna talk about, but it’s it’s not it’s not big. Pleasure.

Unidentified speaker, Analyst: Can the operating units convert to common shares on a one to one basis?

Unidentified speaker, CEO: They can, but once they do, they trigger their capital gains tax. What most of these families do is before it’s crystallized they hold it. They estate plan it. They wait for someone to pass away. Once that person passes away, they get a stepped up basis, and then that conversion doesn’t trigger a tax.

And they can’t do that with real estate. If they do a ten thirty one exchange, you’re you’re you’re you have to maintain that partnership. And and what what I found in my life doing this is the people that owned larger portfolios right? So the post service went to all these towns and gave local people the ability to, you know, build or own their post office, which was very nice, very inefficient, but nice, the larger construction companies started building them, not just in their town, but in the surrounding towns. And what you find is these construction companies typically had more than one partner, whether they were a couple of brothers or or just partners.

And now the next generation have multiple children, and now these people don’t want to be partners with each other. But if you do a ten thirty one exchange into a new property, these people are still partners. And so this provides a very elegant way to divide that up. Some people can take OP units, some people could take cash, some people can convert, some people can’t. And everybody can make their own decision, and you’re not tied together.

Unidentified speaker, Analyst: So a 100% clear, the bulk units and the common stock are correct to sue as to dividends. On the

Unidentified speaker, CEO: So you’re asking a legal question, and I’ll give you the legal answer that I understand it. I’m not an attorney, but I’ll give you the legal answer. You’re not legally obligated to renew them, but you are also legally not able to evict them. Okay? So what does that mean?

It means you don’t have to sign a new lease if you don’t want to, but you also can’t make them leave the building. So they’re allowed to stay in your building, and you can fight them over what the rent is, but because and this is not a postal thing. This is an any government agency thing. You cannot evict a government agency legally. So there are properties that we own that have higher and better uses.

We do not try to evict the postal service. We typically look at these as government or real estate backed bonds. We try to maximize our cash flow and keep the post service in it. At the end of the day, if they want to move out, we have some real estate value and we have some higher and better use. That’s how we’ve typically looked at it.

We don’t look at leverage return in general. The percentage that we buy of debt and equity is really dependent on what’s going on at any given time in our stock price and in our portfolio in general. We balance that like what you’ll find is from Q1 to Q2, we were able to buy $36,000,000 of acquisitions and keep our leverage relatively neutral. Right? But there are times that we’ll ramp up leverage depending on where we are.

Right? It really depends on what our options are at that time. So I don’t you’re you’re asking for a leverage return answer, and I think the I’m asking for a target return. So I guess the target return is your dividend. Right?

You’re you’re investing in the company, and you’re getting, let’s call it a six and a quarter or whatever it is, return on your investment in the stock. My return on the company is nothing to do with leverage from my perspective. The what what the I’m going to change your question a little bit. Okay? I I think the way to look at the return is to look at the same store NOI numbers that that I just spoke about that are seven to 9%.

And what that’s going to tell you is that I’m buying a seven and a half or better cap rate, but I’m stabilizing after I’m marking to market and renewing the leases at a much higher return. So we haven’t we haven’t provided that number, but any of you that want to back into that number, you’ll see it’s significantly higher than seven and a half.

Unidentified speaker, Analyst: And can you repeat the number? You said 30 how much is that has escalators, about 3056%

Unidentified speaker, CEO: has 3% escalators. Six. Right. And 32% have ten year leases. And when we’re completed, the twenty twenty six leases.

Unidentified speaker, Analyst: Okay. And you own your new leases at escalators? Correct. Percentage of

Unidentified speaker, CEO: Will continue to go up. That’s the goal. That’s the plan. Anything else? Thank you everybody.

I really appreciate

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