The Company's IPO and Formation Transactions

12 Months Ended

Dec. 31, 2019

The Company's Initial Public Offering and Formation Transactions [Abstract]

The Company's IPO and Formation Transactions

Note 2. The Company's IPO and Formation Transactions

Both the Company and the Operating Partnership commenced operations upon completion of the IPO and the Formation Transactions on May 17, 2019. The Company's operations are carried out primarily through the Operating Partnership and the wholly owned subsidiaries of the Operating Partnership.

On May 17, 2019, the Company completed its IPO, pursuant to which it sold 4,500,000 shares of its Class A common stock at a public offering price of $17.00 per share. The Company raised $76.5 million in gross proceeds, resulting in net proceeds of approximately $71.1 million after deducting approximately $5.4 million in underwriting discounts and before giving effect to $6.4 million in other expenses relating to the IPO. The Company's Class A common stock began trading on the New York Stock Exchange under the symbol "PSTL" on May 15, 2019.

In connection with the IPO and Formation Transactions, the Company, through its Operating Partnership, used a portion of the net proceeds to repay approximately $31.7 million of outstanding indebtedness related to the Predecessor.

Pursuant to the Formation Transactions, the Company, directly or through the Operating Partnership, acquired the entities that comprise the Predecessor. The initial properties and other interests were contributed in exchange for 1,333,112 OP Units, 637,058 shares of Class A common stock, 27,206 shares of Voting Equivalency stock and $1.9 million of cash. In addition, the Operating Partnership purchased 81 post office properties (the "Acquisition Properties") in exchange for $26.9 million in cash, including approximately $1.0 million paid to Mr. Spodek, the Company's chief executive officer and a director for his non-controlling ownership in nine of the Acquisition Properties.

The balance sheet as of December 31, 2018 and the statement of operations for the year ended December 31, 2018 reflect the financial condition and results of operations of the Predecessor. The statement of operations for the year ended December 31, 2019 reflects the results of operations of the Predecessor for the period of January 1, 2019 to May 16, 2019 and the Company for the period from May 17, 2019 to December 31, 2019, while the balance sheet as of December 31, 2019 reflects the financial condition of the Company. References in these notes to consolidated financial statements to "Postal Realty Trust, Inc." signify the Company for the period after the completion of the IPO and the Formation Transactions and the Predecessor for all prior periods.

The following is a summary of the Predecessor Statements of Operations for the period from January 1, 2019 through May 16, 2019, and the Company's Statement of Operations for the period from May 17, 2019 through December 31, 2019. These amounts are included in the Consolidated and Combined Consolidated Statement of Operations herein for the year ended December 31, 2019.

	Predecessor			Postal Realty Trust, Inc.
	January 1, 2019 through May 16, 2019			May 17, 2019 through December 31, 2019
Revenues
Rental income	$	2,249,355		$	6,616,513
Tenant reimbursements		348,075			963,046
Fee and other income		427,959			684,408
Total revenues		3,025,389			8,263,967
Operating Expenses
Real estate taxes		358,693			1,008,199
Property operating expenses		357,779			849,707
General and administrative		501,204			4,345,188
Depreciation and amortization		725,756			3,074,303
Total operating expenses		1,943,432			9,277,397
Income (loss) from operations		1,081,957			(1,013,430	)
Interest expense, net:
Contractual interest expense		(570,819	)		(527,969	)
Write-off and amortization of deferred financing fees		(4,773	)		(237,990	)
Loss on early extinguishment of Predecessor debt		-			(185,586	)
Interest income		1,134			4,794
Total interest expense, net		(574,458	)		(946,751	)
Income (loss) before income tax expense		507,499			(1,960,181	)
Income tax (expense) benefit		(39,749	)		-
Net Income (loss)		467,750			(1,960,181	)
Net income attributable to noncontrolling interest in properties		(4,336	)		-
Net income attributable to Predecessor	$	463,414			-
Net loss attributable to Operating Partnership unitholders' noncontrolling interest					462,968
Net loss attributable to common stockholders				$	(1,497,213	)