−Removed: We are an internally managed REIT with a focus on acquiring and managing properties leased primarily to the USPS, ranging from last-mile post offices to larger industrial facilities.
+Added: We are an internally managed REIT with a focus on acquiring and managing properties leased primarily to the USPS, ranging from last-mile post offices to industrial facilities.
We believe that we are the largest owner and manager, measured by net leasable square footage, of properties that are leased to the USPS.
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We have a right of first offer to purchase 250 of our 397 managed properties.
−Removed: The majority of our leases are modified double-net leases, whereby the USPS is responsible for utilities, routine maintenance and reimbursement of property taxes and the landlord is responsible for insurance, roof and structure.
+Added: The majority of our leases are modified double-net leases, whereby the USPS is responsible for utilities, certain maintenance obligations and reimbursement of property taxes and the landlord is responsible for insurance, roof and structure.
We believe this structure helps insulate us from increases in certain operating expenses and provides a more predictable cash flow.
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We continue to execute our strategy to acquire and consolidate postal properties that we believe will generate strong earnings for our shareholders.
+Added: We may also sell assets from time to time to recycle capital.
2023 Highlights
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• We acquired 223 properties leased primarily to the USPS totaling approximately 532,000 net leasable interior square feet, for approximately $78 million, excluding closing costs, during 2023.
−Removed: • We amended our existing Credit Facilities (as defined below) in May 2022 to, among other things, add the 2022 Term Loan (as defined below), replace the London Interbank Offered Rate (“LIBOR”) with the Secured Overnight Financing Rate ("SOFR") as the benchmark interest rate and allow for a decrease in the applicable margin by 0.02% if we achieve certain sustainability targets.
−Removed: In December 2022, we further exercised $40.0 million of term loan accordion under the Credit Facilities.
−Removed: We also entered into five interest rate swaps with a total notional amount of $165.0 million to manage our interest rate risks under the Credit Facilities.
−Removed: • We issued 751,382 shares of Class A common stock under our at-the-market equity offering programs during 2022, raising approximately $11.9 million in gross proceeds.
+Added: • We amended our existing Credit Facilities (as defined below) in July 2023 to, among other things, add a daily simple Secured Overnight Financing Rate ("SOFR") based option to the term SOFR-based floating interest rate option as a benchmark rate for borrowings under the Credit Facilities and further exercised $35.0 million of accordion under the term loans.
+Added: We also entered into two interest rate swaps in 2023 with a total notional amount of $35.0 million to manage our interest rate risks under the Credit Facilities.
+Added: • We issued 1,861,407 shares of Class A common stock under our at-the-market equity offering program (the "ATM Program") during 2023, raising approximately $27.8 million in gross proceeds.
+Added: In August 2023, we also amended the ATM Program to increase the aggregate offering amount under the program from up to $50.0 million to up to $150.0 million.
• We have increased our quarterly dividend from $0.2375 for the fourth quarter 2022 dividend to $0.24 for the fourth quarter 2023 dividend.
−Removed: Our dividend per share has increased for the past fourteen consecutive quarters.
+Added: Our dividend per share has increased every year since our IPO.
Although we expect to continue our policy of paying regular dividends, we cannot guarantee that we will maintain our current level of dividends, that we will continue our recent pattern of increasing dividends per share or what our actual dividend yield will be in any future period.
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We recognize the importance of the health, safety and environmental well-being of our employees, and are committed to providing and maintaining a healthy work environment.
−Removed: We offer a comprehensive benefits program as well as a 401(k) program, flexible spending accounts, income protection through our sick pay and long-term disability policies, paid vacation, paid maternity and paternity leave and holiday and personal days to balance work and personal life.
+Added: We offer a comprehensive benefits program as well as a 401(k) program, flexible spending accounts, income protection through our sick pay and long-term disability policies, paid vacation, paid parental leave and holiday and personal days to balance work and personal life.
In addition to our benefits program, we offer a number of work life enhancements at our corporate headquarters, including, but not limited to, healthy snacks and ergonomic workstations.
We encourage our employees to take advantage of various internal training opportunities and those provided by outside service providers to the extent these are business related.
−Removed: All corporate employees,
−Removed: including members of our management team, receive periodic training about our business, the Company’s structure and the important laws and policies that affect the Company.
−Removed: In addition, many of our employees hold professional licenses and we encourage them to, and reimburse them, for qualified ongoing continuing professional education.
+Added: All corporate employees, including
+Added: members of our management team, receive periodic training about our business, the Company’s structure and the important laws and policies that affect the Company.
+Added: In addition, many of our employees hold professional licenses and we encourage them to attend, and reimburse them for, qualified ongoing continuing professional education.
We also provide all of our employees with biannual performance and career development reviews.
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Under various federal, state and local laws, ordinances and regulations, as a current or former owner of real property, we may be liable for costs of the removal or remediation of certain hazardous substances, waste or petroleum products at, on, in or under the properties that we own, including costs for investigation or remediation, natural resource damages or third-party liability for personal injury or property damage.
−Removed: These laws often impose liability without regard to fault including whether the owner or operator knew of, or were responsible for, the presence or release of such materials.
−Removed: Some of our properties may be impacted by contamination arising from current or prior uses of the property or adjacent properties for commercial, industrial or other purposes.
+Added: These laws often impose liability without regard to fault including whether the owner or operator knew of, or were responsible for, the presence or release of such materials and, therefore, it is possible that we could incur these costs even after we sell some of the properties.
+Added: Some of our properties have been, or may in the future be, impacted by contamination arising from current or prior uses of the property or adjacent properties for commercial, industrial or other purposes.
+Added: In addition to the costs of cleanup, environmental contamination can affect the value of a property and, therefore, an owner’s ability to borrow using the property as collateral or to sell the property.
Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures or may otherwise adversely affect the operations of the tenants of our properties, which could materially and adversely affect us.
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However, any potential or existing environmental contamination liabilities may be in excess of the coverage limits of, or not covered by, such insurance policy.
−Removed: We may also not be aware of all potential or existing environmental contamination liabilities at the properties in our portfolio.
+Added: We may also not be aware of all potential or existing environmental contamination liabilities at the properties in our portfolio or the properties that we acquire in the future.
As a result, we could potentially incur material liability for these issues.
−Removed: In addition, some of our buildings contain, or at one time contained, lead-based paint, asbestos containing materials or underground storage tanks used to store petroleum products or other potentially hazardous or toxic substances or may contain or develop harmful mold or suffer from other indoor air quality issues, which could lead to liability for adverse health effects or property damage or costs for remediation.
+Added: In addition, some of our buildings contain, or at one time contained, lead-based paint, asbestos containing materials, underground storage tanks used to store petroleum products or other potentially hazardous or toxic substances, which could lead to liability for adverse health effects or property damage or costs for remediation.
+Added: Some of our properties have also at one time developed and may in future develop harmful mold or other indoor air quality issues.
Indoor air quality issues can also stem from inadequate ventilation, chemical contamination from indoor or outdoor sources and other biological contaminants such as pollen, viruses and bacteria.
Indoor exposure to lead, asbestos or airborne toxins or irritants above certain levels can be alleged to cause a variety of adverse health effects and symptoms, including allergic or other reactions.
−Removed: As a result, the presence of lead, asbestos, mold or other airborne contaminants at any of our properties could require us to undertake a costly remediation program to contain or remove the mold or other airborne contaminants from the affected property or increase indoor ventilation.
−Removed: In addition, the presence of lead, asbestos, mold or other airborne contaminants could expose us to liability from our tenants, employees of our tenants or others if property damage or personal injury occurs.
−Removed: We are not presently aware of any material adverse indoor air quality issues at our properties.
+Added: As a result, the presence of lead, asbestos, underground storage tanks, mold or other airborne contaminants or other potentially hazardous or toxic substances at any of our properties could require us to undertake a costly remediation program to contain or remove such contaminants from the affected property.
+Added: In addition, the presence of potentially hazardous or toxic substances could expose us to liability from our tenants, employees of our tenants or others if property damage or personal injury occurs.
Availability of Reports Filed with the Securities and Exchange Commission
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.