POSTAL REALTY TRUST, INC. DISCUSSION AND ANALYSIS OF MANAGEMENT’S FINANCIAL POSITION AND RESULTS (Form 10-Q)

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The following discussion and analysis is based on, and should be read in
conjunction with, the unaudited Consolidated Financial Statements and the
related notes thereto of Postal Realty Trust, Inc. contained in this Quarterly
Report on Form 10-Q and   our Annual Report on Form 10-K   for the year ended
December 31, 2021.

As used in this section, unless the context otherwise requires, references to
"we," "our," "us," and "our company" refer to Postal Realty Trust, Inc., a
Maryland corporation, together with our consolidated subsidiaries, including
Postal Realty LP, a Delaware limited partnership, of which we are the sole
general partner and which we refer to in this section as our Operating
Partnership.

Forward-Looking Statements

We make statements in this Quarterly Report that are forward-looking statements
within the meaning of the federal securities laws. In particular, statements
pertaining to our capital resources, acquisitions, property performance and
results of operations contain forward-looking statements. You can identify
forward-looking statements by the use of forward-looking terminology such as
"believes," "expects," "may," "will," "should," "seeks," "approximately,"
"intends," "plans," "pro forma," "estimates" or "anticipates" or the negative of
these words and phrases or similar words or phrases which are predictions of or
indicate future events or trends and which do not relate solely to historical
matters. You can also identify forward-looking statements by discussions of
strategy, plans or intentions.

Forward-looking statements involve numerous risks and uncertainties and you
should not rely on them as predictions of future events. Forward-looking
statements depend on assumptions, data or methods which may be incorrect or
imprecise and we may not be able to realize them. We do not guarantee that the
transactions and events described will happen as described (or that they will
happen at all). The following factors, among others, could cause actual results
and future events to differ materially from those set forth or contemplated in
the forward-looking statements:

•Change of status of United States Postal Service (“USPS”) as an independent agency of the Executive Branch of the US federal government;

•Change in demand for postal services provided by the USPS;

•our ability to come to terms with that USPS in relation to new leases or lease renewals;

•the solvency and financial health of the USPS;

• Failures, early terminations or non-renewal of leases or relocation of post offices by the USPS;

•the competitive market in which we operate;

•changes in the availability of employment opportunities;

• our inability to successfully complete any property acquisition or sale on the terms and time we expect, or at all;

•our failure to successfully operate developed and acquired properties;

• adverse economic or real estate developments, either nationally or in the markets in which our properties are located;

• decreased rents or increased vacancy rates;

•changes in our business, financing or investment strategy or in the markets in which we operate;

• interest rate fluctuations and increased operating costs;

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•general economic conditions (including uncertainty regarding the ongoing conflict between Russia and Ukraine and the associated impact on macroeconomic conditions);

• financial market fluctuations;

• our failure to generate sufficient cash flows to service our outstanding debt;

• our failure to obtain necessary outside financing on favorable terms or at all;

•failure to effectively hedge against changes in interest rates;

• our dependence on key personnel whose continued service is not guaranteed;

•the outcome of claims and litigation in which we are a party or affecting us;

•changes in real estate, taxes, zoning and other legislation and governmental activities, and changes in property tax rates and taxation of Real Estate Investment Trusts (“REITs”) generally;

•operations through joint ventures and reliance on or disputes with fellow contractors;

• cyber security threats;

•uncertainties and risks related to adverse weather conditions, natural disasters and climate change;

•liability in relation to environmental, health and safety matters;

•Government approvals, policies and initiatives, including the need to comply with environmental regulations;

•missing or insufficient sums insured;

• restrictions imposed on our business to maintain our status as a REIT, and our failure to maintain that status; and

•Public health threats such as the coronavirus (COVID-19) pandemic.

While forward-looking statements reflect our good faith beliefs, they are not
guarantees of future performance. We disclaim any obligation to publicly update
or revise any forward-looking statement to reflect changes in underlying
assumptions or factors, of new information, data or methods, future events or
other changes after the date of this Quarterly Report on Form 10-Q, except as
required by applicable law. You should not place undue reliance on any
forward-looking statements that are based on information currently available to
us or the third parties making the forward-looking statements. For a further
discussion of these and other factors that could impact our future results,
performance or transactions, you should carefully review and consider (i) the
information contained under Item 1A titled "Risk Factors" herein and in   our
Annual Report on Form 10-K   and (ii) such similar information as may be
contained in our other reports and filings that we make with the Securities and
Exchange Commission (the "SEC").

overview

company

We were formed as a Maryland corporation on November 19, 2018 and commenced
operations upon completion of our initial public offering and the related
formation transactions. We conduct our business through a traditional UPREIT
structure in which our properties are owned by our Operating Partnership
directly or through limited partnerships, limited liability companies or other
subsidiaries. During the three months ended March 31, 2022, we acquired 50
properties leased to the USPS for approximately $27.6 million, including closing
costs. As of March 31, 2022, our portfolio consists of 1,016 owned properties,
located in 49 states and one territory and comprising approximately 4.7 million
net leasable interior square feet.
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We are the sole general partner of our Operating Partnership through which our
properties are directly or indirectly owned. As of May 11, 2022, we owned
approximately 81.9% of our outstanding common units of limited partnership
interest in our Operating Partnership (the "OP Units"), including long term
incentive units of our Operating Partnership (the "LTIP Units"). Our Board of
Directors oversees our business and affairs.

ATM program and follow-up offerings

On December 14, 2020, we entered into separate open market sale agreements for
its at-the-market offering program (the "ATM Program") with each of Jefferies
LLC, Stifel, Nicolaus & Company, Incorporated, BMO Capital Markets Corp., Janney
Montgomery Scott LLC and D.A. Davidson & Co. ("D.A. Davidson"), pursuant to
which we may offer and sell, from time to time, shares our Class A common stock
having an aggregate sales price of up to $50.0 million. On May 14, 2021, we
delivered to D.A. Davidson a notice of termination of the open market sale
agreement with D.A. Davidson, which termination became effective May 14, 2021.
During the year ended December 31, 2021, 344,717 shares were issued under the
ATM Program. As of March 31, 2022, we had approximately $43.1 million of
availability remaining under the ATM Program.

On January 11, 2021, we priced a public offering of 3.25 million shares of our
Class A common stock (the "January 2021 Offering") at $15.25 per share. On
January 11, 2021, the underwriters purchased the full allotment of 487,500
shares pursuant to a 30-day option at $15.25 per share (the "January 2021
Additional Shares"). The January 2021 Offering, including the January 2021
Additional Shares, closed on January 14, 2021 resulting in $57.0 million in
gross proceeds, and approximately $53.9 million in net proceeds after deducting
approximately $3.1 million in underwriting discounts and before giving effect to
$0.6 million in other related expenses.

On November 16, 2021, we priced a public offering of 4.25 million shares of our
Class A common stock (the "November 2021 Offering") at $17.00 per share. On
November 16, 2021, the underwriters purchased the full allotment of 637,500
shares pursuant to a 30-day option at $17.00 per share (the "November 2021
Additional Shares"). The November 2021 Offering, including the November 2021
Additional Shares, closed on November 19, 2021 resulting in $83.1 million in
gross proceeds, and approximately $79.0 million in net proceeds after deducting
approximately $4.1 million in underwriting discounts and before giving effect to
$0.2 million in other related expenses.

Executive Overview

We are an internally managed REIT focused on acquiring and managing properties primarily leased to the USPS, from last mile post offices to larger industrial plants. We believe that the overall consolidation opportunity within the postal logistics network is very attractive. We continue our strategy of acquiring and consolidating postal properties that we believe will deliver strong returns for our shareholders.

Geographic Concentration

As of March 31, 2022, we owned a portfolio of 1,016 properties located in 49
states and one territory and leased primarily to the USPS. For the three months
ended March 31, 2022, 17.2% of our total of rental income was concentrated in
Pennsylvania.

Emerging Growth Company

We are an "emerging growth company," as defined in the Jumpstart Our Business
Startups Act of 2012 (the "JOBS Act"), and we are eligible to take advantage of
certain exemptions from various reporting requirements that are applicable to
other public companies that are not "emerging growth companies," including not
being required to comply with the auditor attestation requirements of Section
404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding
executive compensation in our periodic reports and proxy statements and
exemptions from the requirements of holding a nonbinding advisory vote on
executive compensation and shareholder approval of any golden parachute payments
not previously approved.

In addition, the JOBS Act also provides that an "emerging growth company" can
take advantage of the extended transition period provided in the Securities Act
of 1933, as amended (the "Securities Act"), for complying with new or revised
accounting standards. In other words, an emerging growth company can delay the
adoption of certain accounting standards until those standards would otherwise
apply to private companies. We have availed ourselves of these exemptions;
although, subject to certain restrictions, we may elect to stop availing
ourselves of these exemptions in the future even while we remain an "emerging
growth company."
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We will remain an "emerging growth company" until the earliest to occur of (i)
the last day of the fiscal year during which our total annual revenue equals or
exceeds $1.07 billion (subject to periodic adjustment for inflation), (ii) the
last day of the fiscal year following the fifth anniversary of our IPO, (iii)
the date on which we have, during the previous three-year period, issued more
than $1.0 billion in non-convertible debt or (iv) the date on which we are
deemed to be a "large accelerated filer" under the Securities Exchange Act of
1934, as amended (the "Exchange Act").

We are also a "smaller reporting company" as defined in Regulation S-K under the
Securities Act and have elected to take advantage of certain scaled disclosures
available to smaller reporting companies. We may continue to be a smaller
reporting company even after we are no longer an "emerging growth company."

We elected to be treated as a REIT under the Internal Revenue Code of 1986, as
amended (the "Code"), beginning with our short taxable year ending December 31,
2019. As long as we qualify as a REIT, we generally will not be subject to
federal income tax to the extent that we distribute our taxable income for each
tax year to our stockholders.

Factors that may affect future results of operations

That USPS

We are dependent on the USPS' financial and operational stability. The USPS is
currently facing a variety of circumstances that are threatening its ability to
fund its operations and other obligations as currently conducted without
intervention by the federal government. The USPS is constrained by laws and
regulations that restrict revenue sources and pricing, mandate certain expenses
and cap its borrowing capacity. As a result, among other consequences, the USPS
is unable to fund its mandated expenses and continues to be subject to mandated
payments to its retirement system and benefits. While the USPS has undertaken,
and proposes to undertake, a number of operational reforms and cost reduction
measures, including those outlined in its ten-year plan entitled Delivering for
America: Our Vision and Ten-Year Plan to Achieve Financial Sustainability and
Service Excellence, such as higher rates and slower deliveries for certain
services, the USPS has taken the position such measures alone will not be
sufficient to maintain its ability to meet all of its existing obligations when
due or allow it to make the critical infrastructure investments that have been
deferred in recent years. These measures have also led to significant criticism
and litigation, which may result in reputational or financial harm or increased
regulatory scrutiny of the USPS or reduced demand for its services. The ongoing
COVID-19 pandemic (including new or mutated variants of COVID-19) and measures
being taken to prevent its spread also continue to have a material and
unpredictable effect on the USPS' operations and liquidity, including volatility
in demand for mail services, significant changes in the mix of mail and packages
processed through the USPS' network and significant additional operating
expenses caused by pandemic-related disruptions. If the USPS becomes unable to
meet its financial obligations or its revenue declines due to reduced demand for
its services, the USPS may reduce its demand for leasing postal properties,
which would have a material adverse effect on our business and operations. For
additional information regarding the risks associated with the USPS, see the
section entitled "Risk Factors - Risks Related to the USPS" under Item 1A of

our Annual Report on Form 10-K for the past year December 31, 2021.

revenues

We derive revenues primarily from rent and tenant reimbursements under leases
with the USPS for our properties, and fee and other from the management
agreements with respect to the postal properties owned by Mr. Spodek and his
affiliates managed by our taxable REIT subsidiary ("TRS"), and income recognized
from properties accounted for as financing leases. Rental income represents the
lease revenue recognized under leases primarily with the USPS which includes the
impact of above and below market lease intangibles as well as tenant
reimbursements for payments made by our tenants under the leases to reimburse us
for the majority of real estate taxes paid at each property. Fee and other
principally represent (i) revenue our TRS received from postal properties owned
by Mr. Spodek and his affiliates pursuant to the management agreements and is a
percentage of the lease revenue for the managed property, (ii) revenue our TRS
received from providing advisory services to third-party owners of postal
properties and (iii) income recognized from properties accounted for as
financing leases. As of March 31, 2022, properties leased to our tenants had an
average remaining lease term of approximately four years. Factors that could
affect our rental income and fee and other in the future include, but are not
limited to: (i) our ability to renew or replace expiring leases and management
agreements; (ii) local, regional or national economic conditions; (iii) an
oversupply of, or a reduction in demand for, postal space; (iv) changes in
market rental rates; (v) changes to the USPS' current property leasing program
or form of lease; and (vi) our ability to provide adequate services and
maintenance at our properties and managed properties.

operating expenses

We lease our properties primarily to the USPS. The majority of our leases are
modified double-net leases, whereby the tenant is responsible for utilities,
routine maintenance and reimbursement of property taxes and the landlord is
responsible for
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Insurance, roof and structure. Therefore, an increase in costs related to lessor obligations under these leases could adversely affect our results of operations. See “Rental Extension” below for further discussion.

Operating expenses generally consist of real estate taxes, property operating
expenses, which consist of insurance, repairs and maintenance (other than those
for which the tenant is responsible), property maintenance-related payroll and
depreciation and amortization. Factors that may affect our ability to control
these operating costs include but are not limited to: the cost of periodic
repair, renovation costs, the cost of re-leasing space, inflation and the
potential for liability under applicable laws. Recoveries from the tenant are
recognized as revenue on an accrual basis over the periods in which the related
expenditures are incurred. Tenant reimbursements and operating expenses are
recognized on a gross basis, because (i) generally, we are the primary obligor
with respect to the real estate taxes and (ii) we bear the credit risk in the
event the tenant does not reimburse the real estate taxes.

The expenses of owning and operating a property are not necessarily reduced when
circumstances, such as market factors and competition, cause a reduction in
income from the property. If revenues drop, we may not be able to reduce our
expenses accordingly. Costs associated with real estate investments generally
will not be materially reduced even if a property is not fully occupied or other
circumstances cause our revenues to decrease. As a result, if revenues decrease
in the future, static operating costs may adversely affect our future cash flow
and results of operations.

General and Administrative

General and administrative expense represents personnel costs, professional
fees, legal fees, insurance, consulting fees, information technology costs and
other expenses related to our day-to-day activities of being a public company.
While we expect that our general and administrative expenses will continue to
rise as our portfolio grows, we expect that such expenses as a percentage of our
revenues will decrease over time due to efficiencies and economies of scale.

Equity-Based Compensation Expense

All equity-based compensation expense is recognized in
our Consolidated Statements of Operations and Comprehensive Income as components
of general and administrative expense and property operating expenses. We issue
share-based awards to align our directors' and employees' interests with those
of our investors.

depreciation and amortization

Depreciation and amortization expense relates primarily to depreciation on our
properties and capital improvements to such properties and the amortization of
certain lease intangibles.

Other Income

Other income relates primarily to insurance claims related to property damage.

debt and interest expense

On August 9, 2021, we entered into a $150.0 million senior unsecured revolving
credit facility (the "2021 Revolving Credit Facility") and a $50.0 million
senior unsecured term loan facility (the "2021 Term Loan" and, together with the
2021 Revolving Credit Facility, the "Credit Facilities"). In connection with
entering into the Credit Facilities, we terminated our previous credit facility
and paid off the outstanding loans thereunder.

We intend to use the Credit Facilities for working capital purposes, which may
include repayment of mortgage indebtedness, property acquisitions and other
general corporate purposes. We amortize on a non-cash basis the deferred
financing costs associated with our debt to interest expense using the
straight-line method, which approximates the effective interest rate method over
the terms of the related loans. Any changes to the debt structure, including
debt financing associated with property acquisitions, could materially influence
the operating results depending on the terms of any such indebtedness.

Income tax benefit (expense)

As a REIT, we generally will not be subject to federal income tax on our net
taxable income that we distribute currently to our stockholders. Under the Code,
REITs are subject to numerous organizational and operational requirements,
including a requirement that they distribute each year at least 90% of their
REIT taxable income, determined without regard to the deduction for dividends
paid and excluding any net capital gains. If we fail to qualify for taxation as
a REIT in any taxable
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year and do not qualify for certain statutory relief provisions, our income for
that year will be taxed at regular corporate rates, and we would be disqualified
from taxation as a REIT for the four taxable years following the year during
which we ceased to qualify as a REIT. Even though we qualify as a REIT for
federal income tax purposes, we may still be subject to state and local taxes on
our income and assets and to federal income and excise taxes on our
undistributed income. Additionally, any income earned by our existing TRS and
any other TRS we form in the future will be subject to federal, state and local
corporate income tax.

Lease Renewal

As of May 11, 2022, the leases at 22 of our properties, representing
approximately 92,000 net leasable interior square feet and $0.8 million in
annual contractual rental revenue, were expired and the USPS was occupying such
properties as a holdover tenant. As of the date of this report, the USPS had not
vacated or notified us of its intention to vacate any of these properties. When
a lease expires, the USPS becomes a holdover tenant on a month-to-month basis
typically paying the greater of estimated market rent or the rent amount under
the expired lease.

While we currently anticipate that we will execute new leases for all properties
that have expired or will expire, there can be no guarantee that we will be
successful in executing new leases, obtaining positive rent renewal spreads or
renewing the leases on terms comparable to those of the expiring leases. Even if
we are able to renew these expired leases, the lease terms may not be comparable
to those of the previous leases. If we are not successful, we will likely
experience reduced occupancy, rental income and net operating income, as well as
diminished borrowing capacity under our credit facilities, which could have a
material adverse effect on our financial condition, results of operations and
ability to make distributions to shareholders.
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operating results

Comparison of the Three Months Ended March 31, 2022 and the Three Months Ended
March 31, 2021

                                                     For the Three Months Ended
                                                             March 31,
                                                      2022                  2021               $ Change                % Change
Revenues
Rental income                                  $        11,349          $    8,487          $     2,862                       33.7  %
Fee and other                                              582                 342                  240                       70.2  %
Total revenues                                          11,931               8,829                3,102                       35.1  %

Operating expenses
Real estate taxes                                        1,590               1,089                  501                       46.0  %
Property operating expenses                              1,530                 910                  620                       68.1  %
General and administrative                               3,642               2,569                1,073                       41.8  %
Depreciation and amortization                            4,110               3,169                  941                       29.7  %
Total operating expenses                                10,872               7,737                3,135                       40.5  %

Income from operations                                   1,059               1,092                  (33)                      (3.0) %

Other income                                               487                  36                  451                    1,252.8  %

Interest expense, net
Contractual interest expense                              (686)               (645)                 (41)                       6.4  %
Write-off and amortization of deferred
financing fees                                            (129)               (145)                  16                      (11.0) %
Loss on early extinguishment of debt                         -                (202)                 202                     (100.0) %
Interest income                                              1                   1                    -                        0.0  %
Total interest expense, net                               (814)               (991)                 177                      (17.9) %

Income before income tax expense                           732                 137                  595                      434.3  %
Income tax expense                                         (11)                (11)                   -                          -  %
Net income                                     $           721          $      126          $       595                      472.2  %


Revenues

Rental income - Rental income includes net rental income as well as the recovery
of certain operating costs and property taxes from tenants. Rental income
increased by $2.9 million to $11.3 million for the three months ended March 31,
2022 from $8.5 million for the three months ended March 31, 2021 due to the
volume of our acquisitions.

Fee and other. Other revenue increased by $0.2 million to $0.6 million for the
three months ended March 31, 2022 from $0.3 million for the three months ended
March 31, 2021 primarily due to income received from properties accounted for as
financing leases.

Operating Expense

Real estate taxes - Real estate taxes increased by $0.5 million to $1.6 million
for the three months ended March 31, 2022 from $1.1 million for the three months
ended March 31, 2021 due to the volume of our acquisitions.

Property operating expenses - Property operating expenses increased by $0.6
million to $1.5 million for the three months ended March 31, 2022 from $0.9
million for the three months ended March 31, 2021. Property management expenses
are included within property operating expenses and increased by $0.2 million to
$0.6 million for the three months ended March 31, 2022 from $0.4 million for the
three months ended March 31, 2021, due to expanding our property management
staff
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as a result of our continued growth as well as an increase in equity-based
compensation expense related to awards that have been granted to our property
management employees. The remainder of the increase of $0.4 million is related
to expenses for repairs and maintenance and insurance, which increase is
primarily due to the volume of our acquisitions.

General and administrative - General and administrative expenses increased by
$1.1 million to $3.6 million for the three months ended March 31, 2022 from $2.6
million for the three months ended March 31, 2021 primarily due to expanding our
staff as a result of our continued growth as well as an increase in equity-based
compensation expense related to awards that have been granted to our employees
in 2021 and during the three months ended March 31, 2022.

Depreciation and amortization - Depreciation and amortization expense increased
by $0.9 million to $4.1 million for the three months ended March 31, 2022 from
$3.2 million for three months ended March 31, 2021 due to the volume of our
acquisitions.

other income

Other income primarily includes insurance recoveries related to property damage
claims. Other income increased by $0.5 million to $0.5 million for the three
months ended March 31, 2022 from $0.04 million for the three months ended March
31, 2021, primarily due to higher insurance recoveries.

Total interest expense, net

During the three months ended March 31, 2022, we incurred total interest
expense, net of $0.8 million compared to $1.0 million for the three months ended
March 31, 2021. The decrease in interest expense is primarily related to the
loss on early extinguishment of debt of $0.2 million incurred in connection with
the paydown of two mortgage financings during the three months ended March 31,
2021.

Cash Flows

Comparison of the past three months March 31, 2022 and the three months ended
March 31, 2021

We had $6.0 million of cash and $1.3 million from escrow accounts and reserves
March 31, 2022 compared to $3.3 million of cash and $1.1 million from escrow accounts and reserves March 31, 2021.

Cash flow from operating activities - Net cash provided by operating activities
increased by $2.1 million to $6.6 million for the three months ended March 31,
2022 compared to $4.5 million for the same period in 2021. The increase is
primarily due to the volume of properties that we have acquired, all of which
have generated additional rental income and related changes in working capital.

Cash flow to investing activities - Net cash used in investing activities for
the three months ended March 31, 2022 primarily consisted of $25.5 million of
acquisitions and $2.6 million of escrow deposits for acquisition, capital
improvements and other investing activities, offset by $0.4 million of insurance
proceeds that were received. Net cash used in investing activities for the three
months ended March 31, 2021 primarily consisted of $25.4 million of
acquisitions.

Cash flow from financing activities - Net cash provided by financing activities
decreased by $1.3 million to $21.3 million for the three months ended March 31,
2022 compared to $22.6 million for the three months ended March 31, 2021. The
decrease was primarily related to a decrease in net proceeds from issuance of
shares and increased payments of dividends and distributions, offset by an
increase in net borrowings under our credit facilities and pay down of two
mortgage financings during the three months ended March 31, 2021.

liquidity and capital resources

Analysis of liquidity and capital resources

We had approx $6.0 million of cash and $1.3 million from escrow accounts and reserves March 31, 2022.

On August 9, 2021, we entered into the Credit Facilities, which include the
$150.0 million 2021 Revolving Credit Facility and the $50.0 million 2021 Term
Loan, with Bank of Montreal, as administrative agent, and BMO Capital Markets
Corp., People's United Bank, National Association, JPMorgan Chase Bank, N.A. and
Truist Securities, Inc. as joint lead arrangers and joint book runners.
Additional participants in the Credit Facilities include Stifel Bank & Trust and
TriState Capital Bank. In connection with entering into the Credit Facilities,
we terminated our previous credit facility and paid off the
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outstanding loans thereunder. As of March 31, 2022, we had $90.0 million of
aggregate principal amount outstanding under our Credit Facilities, with $50.0
million drawn on the 2021 Term Loan and $40.0 million drawn on the 2021
Revolving Credit Facility.

The Credit Facilities include an accordion feature which permit us to borrow up
to an additional $150.0 million under the 2021 Revolving Credit Facility and,
prior to the First Amendment (as defined below), up to an additional $50.0
million under the 2021 Term Loan, in each case subject to customary terms and
conditions. The 2021 Revolving Credit Facility matures in January 2026, which
may be extended for two six-month periods subject to customary conditions, and
the 2021 Term Loan matures in January 2027. Prior to the First Amendment,
borrowings under the Credit Facilities carried an interest rate of, (i) in the
case of the 2021 Revolving Credit Facility, either a base rate plus a margin
ranging from 0.5% to 1.0% per annum or the London Interbank Offered Rate
("LIBOR") plus a margin ranging from 1.5% to 2.0% per annum, or (ii) in the case
of the 2021 Term Loan, either a base rate plus a margin ranging from 0.45% to
0.95% per annum or LIBOR plus a margin ranging from 1.45% to 1.95% per annum, in
each case depending on a consolidated leverage ratio. With respect to the 2021
Revolving Credit Facility, we will pay, if the usage is equal to or less than
50%, an unused facility fee of 0.20% per annum, or if the usage is greater than
50%, an unused facility fee of 0.15% per annum, in each case on the average
daily unused commitments under the 2021 Revolving Credit Facility.

The Credit Facilities are guaranteed, jointly and severally, by us and certain
of our indirect subsidiaries and contain customary covenants that, among other
things, restrict, subject to certain exceptions, our ability to incur
indebtedness, grant liens on assets, make certain types of investments, engage
in acquisitions, mergers or consolidations, sell assets, enter into certain
transactions with affiliates and pay dividends or make distributions. The Credit
Facilities require compliance with consolidated financial maintenance covenants
to be tested quarterly, including a minimum fixed charge coverage ratio, maximum
total leverage ratio, minimum tangible net worth, maximum secured leverage
ratio, maximum unsecured leverage ratio, minimum unsecured debt service coverage
ratio and maximum secured recourse leverage ratio. The Credit Facilities also
contain certain customary events of default, including the failure to make
timely payments under the Credit Facilities, any event or condition that makes
other material indebtedness due prior to its scheduled maturity, the failure to
satisfy certain covenants and specified events of bankruptcy and insolvency. As
of March 31, 2022, we were in compliance with all of the Credit Facilities' debt
covenants.

On May 11, 2022, we amended the Credit Facilities (the "First Amendment") to,
among other things, add a new $75.0 million senior unsecured delayed draw term
loan facility (the "2022 Term Loan") that matures in February 2028, increase the
accordion feature under the Credit Facilities for term loans to $75.0 million,
replace 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 the Company achieves certain sustainability targets. As amended, the
Credit Facilities carry an interest rate of, (i) in the case of the 2021
Revolving Credit Facility, either a base rate plus a margin ranging from 0.5% to
1.0% per annum or Adjusted Term SOFR (as defined below) plus a margin ranging
from 1.5% to 2.0% per annum, or (ii) in the case of the 2021 Term Loan and the
2022 Term Loan, either a base rate plus a margin ranging from 0.45% to 0.95% per
annum or Adjusted Term SOFR plus a margin ranging from 1.45% to 1.95% per annum,
in each case depending on a consolidated leverage ratio. The Adjusted Term SOFR
option is SOFR plus a term SOFR adjustment of 0.10%, subject to a 0% floor (the
"Adjusted Term SOFR"). The transition to SOFR did not materially impact the
interest rate applied to our borrowings.

On August 9, 2021, we entered into an interest rate swap (the "2021 Interest
Rate Swap") that effectively fixed the LIBOR component of the interest rate on
$50.0 million of the Credit Facilities through January 2027. The 2021 Interest
Rate Swap initially applied to the $50.0 million 2021 Term Loan, fixing the
interest rate for the 2021 Term Loan at 2.291% as of March 31, 2022. Upon entry
into the First Amendment, we concurrently amended this interest rate swap to
reference SOFR instead of LIBOR.

On May 11, 2022, we entered into two additional interest rate swaps (the "2022
Interest Rate Swaps") that effectively fixed the SOFR component of the interest
rate on $50.0 million of the Credit Facilities through February 2028. The 2022
Interest Rate Swaps initially applied to the $50.0 million amount outstanding
under the 2022 Term Loan, fixing the interest rate for the 2022 Term Loan
initially at 4.237%.

Our short-term liquidity requirements primarily consist of operating expenses
and other expenditures associated with our properties, distributions to our
limited partners and distributions to our stockholders required to qualify for
REIT status, capital expenditures and, potentially, acquisitions. We expect to
meet our short-term liquidity requirements through net cash provided by
operations, cash, borrowings under our Credit Facilities and the potential
issuance of securities.

Our long-term liquidity requirements primarily consist of funds necessary for
the repayment of debt at maturity, property acquisitions and non-recurring
capital improvements. We expect to meet our long-term liquidity requirements
with net cash from operations, long-term indebtedness including our Credit
Facilities and mortgage financing, the issuance of equity and debt securities
and proceeds from select sales of our properties. We also may fund property
acquisitions and non-recurring capital improvements using our Credit Facilities
pending permanent property-level financing.
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We believe we have access to multiple sources of capital to fund our long-term
liquidity requirements, including the incurrence of additional debt and the
issuance of additional equity securities. However, in the future, there may be a
number of factors that could have a material and adverse effect on our ability
to access these capital sources, including unfavorable conditions in the overall
equity and credit markets, our degree of leverage, our unencumbered asset base,
borrowing restrictions imposed by our lenders, general market conditions for
REITs, our operating performance, liquidity and market perceptions about us. The
success of our business strategy will depend, to a significant degree, on our
ability to access these various capital sources. In addition, we continuously
evaluate possible acquisitions of postal properties, which largely depend on,
among other things, the market for owning and leasing postal properties and the
terms on which the USPS will enter into new or renewed leases.

To maintain our qualification as a REIT, we must make distributions to our
stockholders aggregating annually at least 90% of our REIT taxable income
determined without regard to the deduction for dividends paid and excluding
capital gains. As a result of this requirement, we cannot rely on retained
earnings to fund our business needs to the same extent as other entities that
are not REITs. If we do not have sufficient funds available to us from our
operations to fund our business needs, we will need to find alternative ways to
fund those needs. Such alternatives may include, among other things, divesting
ourselves of properties (whether or not the sales price is optimal or otherwise
meets our strategic long-term objectives), incurring indebtedness or issuing
equity securities in public or private transactions, the availability and
attractiveness of the terms of which cannot be assured.

Consolidated Debt

As of March 31, 2022, we had approximately $123.1 million of outstanding
consolidated principal indebtedness. The following table sets forth information
as of March 31, 2022 with respect to our outstanding indebtedness (in
thousands):

                                              Outstanding
                                             Balance as of                   Interest                       Maturity
                                            March 31, 2022            Rate at March 31, 2022                  Date
Revolving Credit Facility(1):
2021 Revolving Credit Facility            $         40,000                    LIBOR+150bps (2)            January 2026
2021 Term Loan(1)                                   50,000                    LIBOR+145bps (2)            January 2027
Secured Borrowings:
Vision Bank(3)                                       1,409                             3.69  %           September 2041
First Oklahoma Bank(4)                                 345                            3.625  %            December 2037
Vision Bank - 2018(5)                                  844                             3.69  %           September 2041
Seller Financing(6)                                    282                             6.00  %            January 2025
AIG - December 2020(7)                              30,225                             2.80  %            January 2031
Total Principal                           $        123,105


Explanatory Notes:

(1) For details of the credit facilities and the first amendment, see “- Analysis of Liquidity and Capital Resources” above.

During the three months ended March 31, 2022we arose $0.06 million of unused facility fees related to the 2021 revolving credit facility.

(2)Based on one month US Dollar LIBOR rate.

(3)Five properties are collateralized under this loan and Mr. Spodek also
provided a personal guarantee of payment for 50% of the outstanding amount
thereunder. The loan has a fixed interest rate of 3.69% for the first five years
with interest payments only, then adjusting every subsequent five year period
thereafter with principal and interest payments to the rate based on the five
year weekly average yield on United States Treasury securities adjusted to a
constant maturity of five years, as made available to the Board of Governors of
the Federal Reserve System (the "Five-Year Treasury Rate"), plus a margin of
2.75%, with a minimum annual rate of 2.75%.

(4)The loan is collateralized by first mortgage liens on four properties and a
personal guarantee of payment by Mr. Spodek. The loan has a fixed interest rate
of 3.625% for the first five years, then adjusting annually thereafter to a
variable annual rate of Wall Street Journal Prime Rate with a minimum annual
rate of 3.625%.
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(5)The loan is collateralized by first mortgage liens on one property and a
personal guarantee of payment by Mr. Spodek. The loan has a fixed interest rate
of 3.69% for the first five years with interest payments only, then adjusting
every subsequent five year period thereafter with principal and interest
payments to the rate based on the Five-Year Treasury Rate, plus a margin of
2.75%, with a minimum annual rate of 2.75%.

(6) In connection with the acquisition of a property, we have secured by the property seller financing in the amount of $0.4 million five annual principal and interest payments of $0.1 million when the first installment is due January 2, 2021 based on an interest rate of 6.0% per annum January 2, 2025.

(7) The loan is secured by a first-rank mortgage on commercial property Warrendale, Pennsylvania. The loan has a fixed interest rate of 2.80% with interest-only payments for the first five years and thereafter fixed principal and interest payments based on a 30-year amortization schedule.

Secured Loans March 31, 2022

As of March 31, 2022, we had approximately $33.1 million of secured borrowings
outstanding, all of which are currently fixed rate debt with a weighted average
interest rate of 2.90% per annum.

dividends

To maintain our qualification as a REIT, we are required to pay dividends to
stockholders at least equal to 90% of our REIT taxable income determined without
regard to the deduction for dividends paid and excluding net capital
gains. During the three months ended March 31, 2022, we paid cash dividends of
$0.2275 per share. Our Board of Directors approved, and on April 28, 2022, we
declared a first quarter common stock dividend of $0.23 per share, which will be
paid on May 27, 2022 to stockholders of record as of May 13, 2022.

Subsequent real estate acquisitions

In connection to March 31, 2022we have 44 properties in individual or portfolio transactions for a total of approx $14.0 millionwithout closing costs.

Critical Accounting Policies and Estimates

See the heading entitled “Critical Accounting Policies and Estimates” in

our Annual Report on Form 10-K for the past year December 31, 2021 for a discussion of our critical accounting policies and estimates.

New accounting pronouncements

For a discussion of our adoption of new accounting pronouncements, please see
Note 2. Summary of Significant Accounting Policies in the Notes to the of our
Consolidated Financial Statements included herein.

inflation

Because most of our leases provide for fixed annual rental payments without
annual rent escalations, our rental revenues are fixed while our property
operating expenses are subject to inflationary increases. A majority of our
leases provide for tenant reimbursement of real estate taxes and thus the tenant
must reimburse us for real estate taxes. We believe that if inflation increases
expenses over time, increases in lease renewal rates will materially offset such
increase.
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