Improved AFFO and Guidance
AFFO per share increased by 8.4% year over year to $1.16, surpassing Street consensus by over 9%. Guidance for 2025 AFFO per share is projected between $1.20 and $1.22.
Strong Leasing Performance
Releasing performance improved due to a streamlined process with the Postal Service, resulting in a 99.8% occupancy rate and an average lease retention rate of 99% over ten years.
Strategic Acquisitions and Dispositions
Acquired 197 properties for $91 million at a 7.6% cap rate, with expectations of $80-$90 million in acquisitions for 2025. Sold two properties for $6.3 million, realizing significant profit.
Stable Financial Position
The company maintained a low leverage with a net debt to annualized adjusted EBITDA ratio of 5.2 times and a weighted average interest rate of 4.35%.
Dividend and Stock Repurchase
The quarterly dividend increased by 1% from Q4 2023, marking the seventh consecutive year of dividend growth. A $25 million stock repurchase program was approved.