GICS Sector : Real Estate
Postal Realty Trust, Inc.is an internally managed real estate investment trust that owns and manages over 1,000 properties leased to the USPS.The Company believes it is one of the largest owners and managers of properties leased to the USPS. Show Full description
Postal Realty Trust reported a strong financial performance in the third quarter of 2025, with actual EPS coming in at $0.13, missing estimates of $0.31. Despite the EPS miss, the company updated its 2025 AFFO guidance to $1.30 to $1.32 per share, representing growth of 13% at the midpoint. The company's same-store cash NOI guidance was also increased to 8.5% to 9.5%. The revenue growth is expected to continue, with analysts estimating a 10.7% increase in revenues for the next year.
Publication Date: Nov -25
In the third quarter, Postal Realty Trust acquired 47 properties for approximately $42.3 million, adding 160,000 net leasable interior square feet to its portfolio. The company's acquisition activity has been robust, with over $100 million in closed volume. As of October 17, the company had acquired 19 properties for approximately $7.2 million in Q4 and had 9 properties totaling $5 million under definitive contracts. According to Andrew Spodek, the company's CEO, "We see infill post office opportunities like the Newtonville, Massachusetts acquisition often, but they're typically not accretive out of the gate."
Postal Realty Trust's valuation metrics indicate a relatively attractive dividend yield of 6.34%. The company's P/E Ratio stands at 26.88, while its P/B Ratio is 1.37. The dividend payout ratio for the third quarter is approximately 73%, indicating a sustainable dividend. The Board of Directors has approved a quarterly dividend of $0.2425 per share, representing a 1% increase from the third quarter 2024 dividend.
Postal Realty Trust's business isn't dependent on external acquisitions for growth, thanks to its lease expiration schedule, which provides significant growth potential as the company unlocks value in the next few years. The company is the largest owner in the USPS-leased property space, with around 8% market share. While there are competitors moving into this space, the company's scale and security of cash flows position it well for continued growth.
The company's guidance on cap rates trending in the 7.7-7.8 range and its target of achieving a 7.5% or better cap rate suggests a cautious approach to acquisitions. With a strong financial performance and a robust acquisition pipeline, Postal Realty Trust is well-positioned to continue its growth trajectory. The company's ROIC stands at 147.48%, indicating efficient capital allocation, while its Net Debt / EBITDA ratio is -0.04, highlighting its strong credit profile.
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Rental growth of 8% driven by increasing demand for last-mile delivery and e-commerce logistics, coupled with Postal Realty Trust's strategic acquisitions and expansions into high-growth markets, resulting in higher rental yields and occupancy rates.
The 12% growth in Fee and Other revenue for Postal Realty Trust, Inc. is driven by increasing demand for last-mile delivery services, expansion of e-commerce, and rising parcel volumes. Additionally, the company's strategic acquisitions and partnerships have contributed to the growth, along with the increasing need for logistics and supply chain optimization.
Postal Realty Trust, Inc. generates rental income from its portfolio of properties, including office buildings, industrial facilities, and retail spaces.
Postal Realty Trust, Inc. offers property management services to its clients, including maintenance, repairs, and administrative tasks.
Postal Realty Trust, Inc. provides acquisition and development services, including identifying and purchasing new properties, and redeveloping existing ones.
Postal Realty Trust, Inc. offers leasing and brokerage services, connecting tenants with available properties and facilitating lease agreements.
The threat of substitutes for Postal Realty Trust, Inc. is medium due to the availability of alternative real estate investment trusts (REITs) and other investment options.
The bargaining power of customers for Postal Realty Trust, Inc. is low due to the fragmented nature of the customer base and the lack of concentration among tenants.
The bargaining power of suppliers for Postal Realty Trust, Inc. is medium due to the availability of alternative suppliers and the company's dependence on a few large suppliers.
The threat of new entrants for Postal Realty Trust, Inc. is low due to the high barriers to entry in the REIT industry, including regulatory hurdles and the need for significant capital investment.
The intensity of rivalry for Postal Realty Trust, Inc. is high due to the competitive nature of the REIT industry, with many established players competing for tenants and investment capital.
| Value | |
|---|---|
| Debt Weight | 49.70% |
| Debt Cost | 3.95% |
| Equity Weight | 50.30% |
| Equity Cost | 7.18% |
| WACC | 5.58% |
| Leverage | 98.79% |
Value: 4.3
Growth: 6.8
Quality: 6.9
Yield: 10.0
Momentum: 7.0
Volatility: 9.7
1-Year Total Return ->
Value: 8.7
Growth: 3.4
Quality: 4.2
Yield: 9.0
Momentum: 7.5
Volatility: 5.0
1-Year Total Return ->
Value: 5.5
Growth: 4.8
Quality: 5.4
Yield: 10.0
Momentum: 1.0
Volatility: 8.3
1-Year Total Return ->
Value: 7.8
Growth: 4.2
Quality: 3.6
Yield: 10.0
Momentum: 1.5
Volatility: 3.0
1-Year Total Return ->
Value: 8.2
Growth: 0.6
Quality: 3.1
Yield: 7.0
Momentum: 5.0
Volatility: 5.0
1-Year Total Return ->
Value: 6.6
Growth: 2.0
Quality: 2.2
Yield: 4.0
Momentum: 1.5
Volatility: 2.7
1-Year Total Return ->