Postal Realty Trust, Inc. Reports First Quarter 2025 Results
Postal Realty Trust reported strong Q1 2025 results, showcasing 28% year-over-year revenue growth. The REIT, which manages over 2,100 properties primarily leased to the United States Postal Service, acquired 36 USPS properties for $15.8 million at a 7.6% capitalization rate.
Key financial highlights include:
- Net income of $2.1 million ($0.06 per diluted share)
- FFO of $8.4 million ($0.28 per diluted share)
- AFFO of $9.8 million ($0.32 per diluted share)
- Quarterly dividend of $0.2425 per share declared
The company's portfolio maintains a 99.8% occupancy rate across 1,738 properties in 49 states. Notable achievements include securing new lease terms through 2026 with 3% annual escalations and a weighted average rental rate of $10.90 per square foot. For 2025, Postal Realty projects AFFO per share of $1.20-$1.22 and acquisition volume of $80-90 million.
Postal Realty Trust ha riportato solidi risultati nel primo trimestre del 2025, con una crescita dei ricavi del 28% rispetto all'anno precedente. Il REIT, che gestisce oltre 2.100 proprietà principalmente affittate al Servizio Postale degli Stati Uniti, ha acquisito 36 proprietà USPS per 15,8 milioni di dollari con un tasso di capitalizzazione del 7,6%.
I principali dati finanziari includono:
- Utile netto di 2,1 milioni di dollari (0,06 dollari per azione diluita)
- FFO di 8,4 milioni di dollari (0,28 dollari per azione diluita)
- AFFO di 9,8 milioni di dollari (0,32 dollari per azione diluita)
- Dividendo trimestrale dichiarato di 0,2425 dollari per azione
Il portafoglio dell’azienda mantiene un tasso di occupazione del 99,8% su 1.738 proprietà in 49 stati. Tra i risultati più significativi, si evidenzia la stipula di nuovi contratti di locazione fino al 2026 con incrementi annuali del 3% e un canone medio ponderato di 10,90 dollari per piede quadrato. Per il 2025, Postal Realty prevede un AFFO per azione tra 1,20 e 1,22 dollari e un volume di acquisizioni tra 80 e 90 milioni di dollari.
Postal Realty Trust reportó sólidos resultados en el primer trimestre de 2025, mostrando un crecimiento interanual de los ingresos del 28%. El REIT, que administra más de 2.100 propiedades principalmente arrendadas al Servicio Postal de los Estados Unidos, adquirió 36 propiedades USPS por 15,8 millones de dólares con una tasa de capitalización del 7,6%.
Los principales aspectos financieros incluyen:
- Ingreso neto de 2,1 millones de dólares (0,06 dólares por acción diluida)
- FFO de 8,4 millones de dólares (0,28 dólares por acción diluida)
- AFFO de 9,8 millones de dólares (0,32 dólares por acción diluida)
- Dividendo trimestral declarado de 0,2425 dólares por acción
La cartera de la compañía mantiene una tasa de ocupación del 99,8% en 1.738 propiedades en 49 estados. Logros destacados incluyen asegurar nuevos términos de arrendamiento hasta 2026 con incrementos anuales del 3% y una tasa de alquiler ponderada promedio de 10,90 dólares por pie cuadrado. Para 2025, Postal Realty proyecta un AFFO por acción de 1,20 a 1,22 dólares y un volumen de adquisiciones de 80 a 90 millones de dólares.
Postal Realty Trust는 2025년 1분기 강력한 실적을 보고하며 전년 대비 28%의 매출 성장을 기록했습니다. 이 리츠는 주로 미국 우체국(USPS)에 임대한 2,100개 이상의 부동산을 관리하며, 7.6% 자본화율로 1,580만 달러에 USPS 부동산 36건을 인수했습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 순이익 210만 달러(희석 주당 0.06달러)
- FFO 840만 달러(희석 주당 0.28달러)
- AFFO 980만 달러(희석 주당 0.32달러)
- 주당 0.2425달러 분기 배당금 선언
회사의 포트폴리오는 49개 주에 걸쳐 1,738개 부동산에서 99.8%의 점유율을 유지하고 있습니다. 주요 성과로는 2026년까지 연 3% 인상 조항이 포함된 신규 임대 계약 체결과 평군 임대료가 평방피트당 10.90달러라는 점이 있습니다. 2025년 Postal Realty는 주당 AFFO를 1.20~1.22달러, 인수 규모를 8,000만~9,000만 달러로 예상하고 있습니다.
Postal Realty Trust a annoncé de solides résultats pour le premier trimestre 2025, affichant une croissance des revenus de 28 % en glissement annuel. Le REIT, qui gère plus de 2 100 propriétés principalement louées au United States Postal Service, a acquis 36 propriétés USPS pour 15,8 millions de dollars avec un taux de capitalisation de 7,6 %.
Les principaux points financiers sont :
- Un bénéfice net de 2,1 millions de dollars (0,06 dollar par action diluée)
- FFO de 8,4 millions de dollars (0,28 dollar par action diluée)
- AFFO de 9,8 millions de dollars (0,32 dollar par action diluée)
- Dividende trimestriel déclaré de 0,2425 dollar par action
Le portefeuille de la société affiche un taux d’occupation de 99,8 % sur 1 738 propriétés réparties dans 49 États. Parmi les réalisations notables, la sécurisation de nouveaux termes de bail jusqu’en 2026 avec des augmentations annuelles de 3 % et un loyer moyen pondéré de 10,90 dollars par pied carré. Pour 2025, Postal Realty prévoit un AFFO par action entre 1,20 et 1,22 dollar ainsi qu’un volume d’acquisitions compris entre 80 et 90 millions de dollars.
Postal Realty Trust meldete starke Ergebnisse für das erste Quartal 2025 mit einem Umsatzwachstum von 28 % im Jahresvergleich. Der REIT, der über 2.100 Immobilien verwaltet, die hauptsächlich an den United States Postal Service vermietet sind, erwarb 36 USPS-Immobilien für 15,8 Millionen US-Dollar bei einer Kapitalisierungsrate von 7,6 %.
Wichtige finanzielle Eckdaten umfassen:
- Nettoeinkommen von 2,1 Millionen US-Dollar (0,06 US-Dollar je verwässerter Aktie)
- FFO von 8,4 Millionen US-Dollar (0,28 US-Dollar je verwässerter Aktie)
- AFFO von 9,8 Millionen US-Dollar (0,32 US-Dollar je verwässerter Aktie)
- Quartalsdividende von 0,2425 US-Dollar je Aktie erklärt
Das Portfolio des Unternehmens weist eine Auslastungsrate von 99,8 % über 1.738 Immobilien in 49 Bundesstaaten auf. Bemerkenswerte Erfolge sind die Sicherung neuer Mietverträge bis 2026 mit jährlichen Steigerungen von 3 % sowie eine gewichtete durchschnittliche Miete von 10,90 US-Dollar pro Quadratfuß. Für 2025 prognostiziert Postal Realty ein AFFO je Aktie von 1,20 bis 1,22 US-Dollar und ein Akquisitionsvolumen von 80 bis 90 Millionen US-Dollar.
- 28% revenue growth YoY in Q1 2025
- 99.8% portfolio occupancy rate across 1,738 properties
- Acquired 36 USPS properties at 7.6% cap rate for $15.8M
- Secured 3% annual rent escalations for 2025-2026 leases
- 92% of debt is fixed-rate, protecting against interest rate risk
- Strong liquidity with $126M undrawn from credit facility
- $0.4M lump sum catch-up payment received from USPS in Q1
- Low net income of $0.06 per diluted share
- Increased debt position to $307M with 4.41% weighted average interest rate
- Ongoing equity dilution through ATM program with 249,000 new shares issued
- Additional dilution through 73,137 operating partnership units issued
Insights
PSTL reports strong Q1 with 28% revenue growth, solid AFFO of $0.32/share, and secures valuable 3% annual rent escalations through 2026.
Postal Realty Trust delivered impressive Q1 2025 results with
The acquisition engine continues running efficiently, with 36 USPS properties acquired for
Perhaps most significant is the agreement on new lease terms with USPS for 2025-2026 leases incorporating
Balance sheet management remains prudent with
Management's reaffirmed 2025 AFFO guidance of
- Agreed to New Rents on all 2025 & 2026 Negotiated Leases -
- Acquired 36 USPS Properties for
CEDARHURST, N.Y., April 30, 2025 (GLOBE NEWSWIRE) -- Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 2,100 properties leased primarily to the United States Postal Service (the “USPS”), ranging from last-mile post offices to industrial facilities, today announced results for the quarter ended March 31, 2025.
Highlights for the Quarter Ended March 31, 2025
28% growth in revenues from first quarter 2024 to first quarter 2025- Net income attributable to common shareholders of
$2.1 million , or$0.06 per diluted share - Funds from Operations ("FFO") of
$8.4 million , or$0.28 per diluted share - Adjusted Funds from Operations ("AFFO") of
$9.8 million , or$0.32 per diluted share - Subsequent to quarter end, the Company announced a quarterly dividend of
$0.24 25 per share - Acquired 36 USPS properties for approximately
$15.8 million , excluding closing costs, at a weighted average capitalization rate of7.6% - Agreed to new lease terms on 2025 and 2026 negotiated leases with the USPS, which include
3% annual escalations
"2025 is off to a strong start, with continued momentum in our re-leasing efforts and a healthy pace of acquisitions," said Andrew Spodek, Chief Executive Officer. "We've agreed to new rents for leases through 2026 and are turning our attention to 2027 re-leasing. Our secure and increasingly visible cash flows are supported by long-term leases and rent escalations that further strengthen our internal organic growth profile."
Property Portfolio & Acquisitions
The Company’s owned portfolio was
During the first quarter, the Company acquired 36 last-mile and flex properties leased to the USPS for approximately
Leasing
As of April 16, 2025, the Company received 38 fully executed new leases from the USPS for leases expired in 2025. We have been working diligently with the Postal Service to have fully executed leases in hand prior to upcoming expirations and are fully up to date for 2025 leases, aside for a lease at one asset that was recently acquired. The total net lump sum catch-up payment received from the USPS was approximately
Balance Sheet & Capital Markets Activity
As of March 31, 2025, the Company had approximately
During the first quarter and through April 16, 2025, the Company issued 249,000 shares of common stock through its at-the-market equity offering program at an average price of
Dividend
On April 21, 2025, the Company declared a quarterly dividend of
Subsequent Events
Subsequent to quarter end and through April 16, 2025, the Company acquired 25 properties comprising approximately 73,000 net leasable interior square feet for approximately
2025 Guidance
| 2025 Guidance | |||
| Low | High | ||
| AFFO per Diluted Share | to | ||
| Acquisition Volume | to | ||
| Cash G&A Expense | to | ||
Note: The Company does not provide guidance with respect to the most directly comparable GAAP financial measure or provide reconciliations to GAAP from its forward-looking non-GAAP financial measure of AFFO per share guidance due to the inherent difficulty of forecasting the effect, timing and significance of certain amounts in the reconciliation that would be required by Item 10(e)(1)(i)(B) of Regulation S-K. Examples of these amounts include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions or developments. In addition, certain non-recurring items may also significantly affect net income but are generally adjusted for in AFFO. Based on our historical experience, the dollar amounts of these items could be significant, and could have a material impact on the Company's GAAP results for the guidance period.
Webcast and Conference Call Details
The Company will host a webcast and conference call to discuss the first quarter 2025 financial results on Thursday, May 1, 2025, at 9:00 A.M. Eastern Time. A live audio webcast of the conference call will be available on the Company’s investor website at https://investor.postalrealtytrust.com/Investors/events-and-presentations/default.aspx. To participate in the conference call, callers from the United States and Canada should dial-in ten minutes prior to the scheduled call time at 1-877-407-9208. International callers should dial 1-201-493-6784.
Replay
A telephonic replay of the call will be available starting at 1:00 P.M. Eastern Time on Thursday, May 1, 2025, through 11:59 P.M. Eastern Time on Thursday, May 15, 2025, by dialing 1-844-512-2921 in the United States and Canada or 1-412-317-6671 internationally. The passcode for the replay is 13750500.
Non-GAAP Supplemental Financial Information
An explanation of certain non-GAAP financial measures used in this press release, including, FFO, AFFO and net debt, as well as reconciliations of those non-GAAP financial measures, to the most directly comparable GAAP financial measure, is included below.
The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as follows: net income (loss) (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by an entity. Other REITs may not define FFO in accordance with the NAREIT definition or may interpret the current NAREIT definition differently than the Company does and therefore the Company’s computation of FFO may not be comparable to such other REITs.
The Company calculates AFFO by starting with FFO and adjusting for recurring capital expenditures (defined as all capital expenditures and leasing costs that are recurring in nature, excluding expenditures that (i) are for items identified or existing at the time a property was acquired or contributed (including through the Company’s formation transactions), (ii) are part of a strategic plan intended to increase the value or revenue-generating ability of a property, (iii) are for replacements of roof or parking lots, (iv) are considered infrequent or extraordinary in nature, or (v) for casualty damage), acquisition-related expenses (defined as expenses that are incurred for investment purposes and business acquisitions and do not correlate with the ongoing operations of the Company’s existing portfolio, including due diligence costs for acquisitions not consummated and certain professional fees incurred that were directly related to completed acquisitions or dispositions and integration of acquired business) that are not capitalized, and certain other non-recurring expenses and then adding back non-cash items including: write-off and amortization of deferred financing fees, straight-line rent and other adjustments (including lump sum catch up amounts for increased rents, net of any lease incentives), fair value lease adjustments, casualty losses (recoveries) and income (expenses) on insurance recoveries from casualties, non-real estate depreciation and amortization and non-cash components of compensation expense. AFFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that AFFO is widely used by other REITs and is helpful to investors as a meaningful additional measure of the Company’s ability to make capital investments. Other REITs may not define AFFO in the same manner as the Company does and therefore the Company’s calculation of AFFO may not be comparable to such other REITs.
The Company calculates its net debt as total debt less cash and property-related reserves. Net debt as of March 31, 2025 is calculated as total debt of approximately
These metrics are non-GAAP financial measures and should not be viewed as an alternative measurement of the Company’s operating performance to net income. Management believes that accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. As a result, the Company believes that the additive use of FFO and AFFO, together with the required GAAP presentation, is widely-used by the Company’s competitors and other REITs and provides a more complete understanding of the Company’s performance and a more informed and appropriate basis on which to make investment decisions.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements.” Forward-looking statements include statements identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements, including, among others, statements regarding the Company’s anticipated growth and ability to obtain financing and close on pending transactions on the terms or timing it expects, if at all, are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the USPS’s terminations or non-renewals of leases, changes in demand for postal services delivered by the USPS, the solvency and financial health of the USPS, competitive, financial market and regulatory conditions, disruption in market, general real estate market conditions, the Company’s competitive environment and other factors set forth under “Risk Factors” in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
About Postal Realty Trust, Inc.
Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 2,100 properties leased primarily to the USPS. More information is available at postalrealtytrust.com.
Contact:
Investor Relations and Media Relations
Email: Investorrelations@postalrealtytrust.com
Phone: 516-232-8900
| Postal Realty Trust, Inc. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) | |||||||
| For the Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenues: | |||||||
| Rental income | $ | 21,480 | $ | 16,604 | |||
| Fee and other | 670 | 683 | |||||
| Total revenues | 22,150 | 17,287 | |||||
| Operating expenses: | |||||||
| Real estate taxes | 2,649 | 2,302 | |||||
| Property operating expenses | 2,461 | 2,353 | |||||
| General and administrative | 4,936 | 4,292 | |||||
| Casualty and impairment losses, net | 150 | — | |||||
| Depreciation and amortization | 5,624 | 5,301 | |||||
| Total operating expenses | 15,820 | 14,248 | |||||
| Loss on sale of real estate assets | (49 | ) | — | ||||
| Income from operations | 6,281 | 3,039 | |||||
| Other income | 30 | 50 | |||||
| Interest expense, net: | |||||||
| Contractual interest expense | (3,437 | ) | (2,637 | ) | |||
| Write-off and amortization of deferred financing fees and amortization of debt discount | (211 | ) | (181 | ) | |||
| Interest income | 6 | 1 | |||||
| Total interest expense, net | (3,642 | ) | (2,817 | ) | |||
| Income before income tax expense | 2,669 | 272 | |||||
| Income tax expense | (14 | ) | (16 | ) | |||
| Net income | 2,655 | 256 | |||||
| Net income attributable to operating partnership unitholders’ non-controlling interests | (573 | ) | (50 | ) | |||
| Net income attributable to common stockholders | $ | 2,082 | $ | 206 | |||
| Net income (loss) per share: | |||||||
| Basic and Diluted | $ | 0.06 | $ | (0.01 | ) | ||
| Weighted average common shares outstanding: | |||||||
| Basic and Diluted | 23,216,150 | 22,045,310 | |||||
| Postal Realty Trust, Inc. | |||||||
| Consolidated Balance Sheets (Unaudited) (In thousands, except par value and share data) | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Investments: | |||||||
| Real estate properties, at cost: | |||||||
| Land | $ | 132,297 | $ | 128,457 | |||
| Building and improvements | 524,490 | 512,248 | |||||
| Tenant improvements | 7,609 | 7,501 | |||||
| Total real estate properties, at cost | 664,396 | 648,206 | |||||
| Less: Accumulated depreciation | (61,961 | ) | (58,175 | ) | |||
| Total real estate properties, net | 602,435 | 590,031 | |||||
| Investment in financing leases, net | 15,923 | 15,951 | |||||
| Total real estate investments, net | 618,358 | 605,982 | |||||
| Cash | 639 | 1,799 | |||||
| Escrow and reserves | 926 | 744 | |||||
| Rent and other receivables | 4,961 | 6,658 | |||||
| Prepaid expenses and other assets, net | 12,032 | 14,519 | |||||
| Goodwill | 1,536 | 1,536 | |||||
| Deferred rent receivable | 3,154 | 2,639 | |||||
| In-place lease intangibles, net | 12,140 | 12,636 | |||||
| Above market leases, net | 272 | 305 | |||||
| Total Assets | $ | 654,018 | $ | 646,818 | |||
| Liabilities and Equity | |||||||
| Liabilities: | |||||||
| Term loans, net | $ | 248,901 | $ | 248,790 | |||
| Revolving credit facility | 24,000 | 14,000 | |||||
| Secured borrowings, net | 33,820 | 33,918 | |||||
| Accounts payable, accrued expenses and other, net | 15,580 | 16,441 | |||||
| Below market leases, net | 16,812 | 16,171 | |||||
| Total Liabilities | 339,113 | 329,320 | |||||
| Commitments and Contingencies | |||||||
| Equity: | |||||||
| Class A common stock, par value | 237 | 235 | |||||
| Class B common stock, par value | — | — | |||||
| Additional paid-in capital | 310,131 | 310,031 | |||||
| Accumulated other comprehensive income | 3,001 | 5,230 | |||||
| Accumulated deficit | (67,890 | ) | (64,211 | ) | |||
| Total Stockholders’ Equity | 245,479 | 251,285 | |||||
| Operating partnership unitholders’ non-controlling interests | 69,426 | 66,213 | |||||
| Total Equity | 314,905 | 317,498 | |||||
| Total Liabilities and Equity | $ | 654,018 | $ | 646,818 | |||
| Postal Realty Trust, Inc. Reconciliation of Net Income to FFO and AFFO (Unaudited) (In thousands, except share and per share data) | ||||
| For the Three Months Ended March 31, 2025 | ||||
| Net income | $ | 2,655 | ||
| Impairment charges | 65 | |||
| Loss on sale of real estate assets | 49 | |||
| Depreciation and amortization of real estate assets | 5,597 | |||
| FFO | $ | 8,366 | ||
| Recurring capital expenditures | (168 | ) | ||
| Write-off and amortization of deferred financing fees and amortization of debt discount | 211 | |||
| Straight-line rent and other adjustments | (326 | ) | ||
| Fair value lease adjustments | (830 | ) | ||
| Acquisition-related and other expenses | 122 | |||
| Income on insurance recoveries from casualties | (30 | ) | ||
| Casualty losses, net | 85 | |||
| Non-real estate depreciation and amortization | 27 | |||
| Non-cash components of compensation expense | 2,351 | |||
| AFFO | $ | 9,808 | ||
| FFO per common share and common unit outstanding | $ | 0.28 | ||
| AFFO per common share and common unit outstanding | $ | 0.32 | ||
| Weighted average common shares and common units outstanding, basic and diluted | 30,293,528 | |||
FAQ
What is Postal Realty Trust's (PSTL) dividend yield and payment for Q1 2025?
How many properties did PSTL acquire in Q1 2025 and at what cap rate?
What is PSTL's AFFO guidance for full year 2025?
What is the occupancy rate of PSTL's property portfolio in Q1 2025?
How much did PSTL's revenue grow from Q1 2024 to Q1 2025?
What are the new lease terms PSTL negotiated with USPS for 2025-2026?
