Postal Realty Trust Q3 rental income rises 25.2%
Postal Realty said it achieved a Fitch BBB investment-grade rating; its owned portfolio was 99.8% occupied.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Postal Realty Trust, Inc. (PSTL) reported third-quarter 2026 net income attributable to common stockholders of $5.6 million, or $0.16 per diluted share, and AFFO of $13.9 million, or $0.36 per diluted share. Rental income rose 25.2% from third quarter 2025; AFFO per diluted share grew 9.1% year over year. The company acquired 145 USPS-leased properties for $82.0 million, excluding closing costs.
For 2026, AFFO-per-share guidance is $1.42–$1.44, raised $0.01, and acquisition-volume guidance is $185 million–$200 million, raised $37.5 million at the midpoint. The owned portfolio was 99.8% occupied across 2,159 properties. As of September 30, 93% of debt was fixed, $264.0 million of the revolving facility was undrawn, and there were no maturities until 2028. The company issued approximately 3.3 million shares through its at-the-market program for $72.2 million of net proceeds during the quarter, and announced a quarterly dividend of $0.245 per share, payable November 27 to holders of record November 13.
3 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Major pointPSTL acquired 145 USPS-leased properties for $82.0 million, excluding closing costs. 13% of market cap
- Moderate pointRental income rose 25.2% year over year in the third quarter.
- Moderate pointAFFO per diluted share grew 9.1% year over year to $0.36.
Negative
- None.
Filing Explained
Forward-sale settlement remains pending, so expected proceeds and any related share issuance are not complete.
As of
During the third quarter, the company also issued approximately 313,000 common units in its operating partnership as part of acquisition consideration.
The release says actual proceeds from the forward sales depend on their timing and method of settlement.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Rental income: $29.651 million
Net income attributable to common stockholders: $5.6 million
AFFO per diluted share: $0.36
+4 more
7 metrics
Rental income
$29.651 million
Three months ended September 30, 2026; increased 25.2% from the third quarter of 2025
Net income attributable to common stockholders
$5.6 million
Third quarter 2026
AFFO per diluted share
$0.36
Third quarter 2026; 9.1% year-over-year growth
Properties acquired
145 properties
Third quarter 2026; $82.0 million excluding closing costs
AFFO-per-share guidance
$1.42–$1.44 per diluted share
2026 guidance; increased $0.01
Acquisition-volume guidance
$185 million–$200 million
2026 guidance; increased $37.5 million at the midpoint
Quarterly dividend
$0.245 per share
Payable November 27, 2026, to stockholders of record November 13, 2026
Key Terms
Adjusted Funds from Operations (AFFO), Funds from Operations (FFO), forward sale agreement, weighted average cash capitalization rate, +1 more
5 terms
Adjusted Funds from Operations (AFFO) financial
"Adjusted Funds from Operations ("AFFO") of $13.9 million"
Adjusted funds from operations (AFFO) is a cash-based measure used mainly for real estate companies that starts with net income and removes accounting items plus recurring maintenance costs to show the cash a property business actually generates for owners. Think of it like a household budget: after counting your income, AFFO subtracts routine upkeep and tenant turnover bills so investors can see the money likely available for dividends or reinvestment. It matters because it gives a clearer picture of sustainable cash flow than raw accounting profit.
Funds from Operations (FFO) financial
"Funds from Operations ("FFO") of $14.0 million"
Funds from operations (FFO) is a performance measure commonly used for real estate companies that adjusts net income by adding back non‑cash items like building depreciation and removing one‑time gains or losses from property sales, to show recurring operating earnings. Investors use FFO to judge a property portfolio’s ability to generate cash for dividends and growth — think of it as measuring a car’s regular fuel efficiency rather than its accounting value or one‑off resale price.
forward sale agreement financial
"settlement of a forward sale agreement"
A forward sale agreement is a contract where a holder of securities or assets agrees to sell them at a fixed price on a specific future date, like a farmer locking in a price for next season’s crop. For investors this matters because it creates predictable future cash or supply and reduces price uncertainty, but it can limit upside if prices rise and introduces risk if the other party fails to deliver or payment affects shareholder value through dilution or financing choices.
weighted average cash capitalization rate financial
"weighted average cash capitalization rate of approximately 6.9%"
A weighted average cash capitalization rate is the single blended percentage used to convert a company’s expected future cash receipts into a current dollar value, where different cash streams are given different weights based on size, timing or risk. Think of it as the average interest rate you would use if you merged several loans into one — it determines how much future cash is worth today, so changes in that rate materially affect valuations and investor comparisons.
Same Store Cash NOI financial
"Same Store Cash NOI Growth"
Same-store cash NOI is a real estate metric that measures the cash profit a property or group of properties generated from operations over two comparable periods, excluding one-time items and accounting adjustments that don’t affect actual cash flow. It compares only properties owned and open in both periods—like comparing the same set of stores month to month—so investors can see true operational growth or decline without distortion from acquisitions, dispositions, or non-cash accounting entries. This helps investors judge recurring income quality and cash-generating performance.
Earnings Snapshot
Rental income: $29.651 million · Guidance included
Third quarter 2026
Rental income
$29.651 million
Increased 25.2% from the third quarter of 2025
Net income attributable to common stockholders
$5.6 million
Diluted net income per share
$0.16
Compared with $0.13 in the third quarter of 2025
AFFO per diluted share
$0.36
9.1% year-over-year growth
Guidance
2026 AFFO per diluted share of $1.42–$1.44; Same Store Cash NOI growth of 6.0%–7.0%; acquisition volume of $185 million–$200 million; cash G&A expense of $11.5 million–$12.5 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did PSTL earn in the third quarter of 2026?
PSTL reported $5.6 million of net income attributable to common stockholders, or $0.16 per diluted share. AFFO was $13.9 million, or $0.36 per diluted share.
How many properties did PSTL acquire in the third quarter?
PSTL acquired 145 USPS-leased properties for $82.0 million, excluding closing costs. The properties were last-mile and flex properties.
How much expected proceeds are tied to PSTL's unsettled forward sale agreements?
As of November 3, 2026, unsettled forward sale agreements covered 3.6 million shares and represented approximately $82.5 million of expected net proceeds, assuming full physical settlement. Forward sale prices are subject to adjustment, and actual proceeds depend on the timing and method of settlement.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 3, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of Incorporation or organization) | Commission File Number | (I.R.S. Employer Identification No.) | |||||||||||||||||||||
(Address of principal executive offices and zip code) | |||||||||||||||||||||||
( | |||||||||||||||||||||||
(Registrant’s telephone number) | |||||||||||||||||||||||
Not Applicable | |||||||||||||||||||||||
(Former Name or Former Address, if Changed Since Last Report) | |||||||||||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-I2 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.I4d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
Postal Realty Trust, Inc. (the “Company”) issued a press release on November 3, 2026 announcing its financial results for the quarter ended September 30, 2026. A copy of the press release is furnished herewith and attached hereto as Exhibit 99.1. The information in this Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act except as set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) | Exhibits. | |||||||
Exhibit No. | Document | |||||||
99.1 | Press Release of Postal Realty Trust, Inc. dated November 3, 2026 | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 3, 2026
POSTAL REALTY TRUST, INC. | ||||||||
By: | /s/ Jeremy Garber | |||||||
Name: Jeremy Garber | ||||||||
Title: President, Treasurer and Secretary | ||||||||
POSTAL REALTY TRUST, INC. REPORTS THIRD QUARTER 2026 RESULTS
- Net Income of $0.16 Per Diluted Share -
- Acquired 145 USPS Properties for $82.0 Million -
- Increased 2026 Acquisition Guidance $37.5 Million at the Midpoint to $185 Million - $200 Million -
- Achieved BBB Investment Grade Rating from Fitch -
- Q3 2026 AFFO Per Diluted Share of $0.36, Representing 9.1% Growth Y/Y -
- Increased 2026 AFFO Guidance $0.01 to $1.42 - $1.44 Per Diluted Share, Representing 8.3% Growth at Midpoint, Y/Y -
- $116.9 Million of Net Equity Sales via ATM Program Since Second Quarter -
Cedarhurst, New York, November 3, 2026 (GLOBE NEWSWIRE) — Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 2,400 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 September 30, 2026.
Highlights for the Quarter Ended September 30, 2026
•Net income attributable to common shareholders of $5.6 million, or $0.16 per diluted share
•Acquired 145 USPS properties for $82.0 million, excluding closing costs
•Rental income increased 25.2% from third quarter 2025 to third quarter 2026, reflecting internal growth and acquisitions
•Funds from Operations ("FFO") of $14.0 million, or $0.36 per diluted share
•Adjusted Funds from Operations ("AFFO") of $13.9 million, or $0.36 per diluted share
•As previously disclosed, extended and expanded aggregate unsecured credit facilities to $615 million
•93% of debt outstanding fixed (taking into account interest rate hedges), with a weighted average maturity of 3.2 years and no maturities until 2028
•Balance sheet well positioned with 3.5x Pro Forma Net Debt to Run-Rate Adjusted EBITDA
•Subsequent to quarter end, the Company announced a quarterly dividend of $0.245 per share
“This marks another milestone quarter for Postal Realty. We reported leading AFFO per share growth and delivered record acquisitions volume, while utilizing equity markets to make our balance sheet even stronger,” said Andrew Spodek, Chief Executive Officer of Postal Realty Trust. Mr. Spodek continued, “With a robust pipeline of acquisitions, north of $340 million of liquidity and a cost of capital we can deploy to grow earnings, I have never been more confident in our ability to continue scaling this platform."
Property Portfolio & Acquisitions
The Company’s owned portfolio was 99.8% occupied, comprised of 2,159 properties across 49 states and one territory with approximately 7.9 million Net Leasable Interior Square Feet and a
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weighted average rental rate of $12.69 per square foot is based on rents in place as of September 30, 2026. The weighted average rental rate consisted of $14.68 per Net Leasable Interior Square Foot on last-mile and flex properties and $5.16 on industrial properties.
During the third quarter, the Company acquired 145 last-mile and flex properties leased to the USPS for $82.0 million excluding closing costs, comprising approximately 387,000 Net Leasable Interior Square Feet at a weighted average rental rate of $15.34 per square foot based on rents in place as of September 30, 2026. These acquisitions were completed at a weighted average cash capitalization rate of approximately 6.9%.
Balance Sheet & Capital Markets Activity
As of September 30, 2026, the Company had approximately $2.2 million of cash and property-related reserves, and approximately $387 million of net debt with a weighted average interest rate of 3.9%. At the end of the quarter, 93% of the Company's debt outstanding was set to fixed rates (when taking into account interest rate hedges), and $264.0 million of the Company's revolving credit facility was undrawn.
During the third quarter, the Company issued approximately 3.3 million shares via the ATM for $72.2 million of net proceeds, consisting of regular-way sales accounting for 1.5 million shares and approximately $34.0 million of net proceeds, and settlement of a forward sale agreement consisting of 1.8 million shares and approximately $38.2 million of net proceeds. At the end of the third quarter, the Company had unsettled forward sale agreements covering 3.4 million shares, representing approximately $77.7 million of expected net proceeds, assuming full physical settlement based on the forward sales prices as of September 30, 2026. Subsequent to quarter end, and based on the initial forward sales prices of each issuance, the Company issued approximately 0.02 million shares via the ATM regular-way sales for $0.4 million of net proceeds, and entered into a forward sale agreement covering 0.2 million shares for an additional $4.8 million of net proceeds. As of November 3, 2026, forward sale agreements covering 3.6 million shares remain unsettled, representing approximately $82.5 million of expected net proceeds, and a weighted average initial gross price of $23.27, assuming full physical settlement. Forward sale prices are subject to adjustment, and actual proceeds will depend on the timing and method of settlement.
Additionally, during the third quarter, the Company issued approximately 313,000 common units in its operating partnership as part of the consideration for acquisitions at an average price per unit of $23.06.
Dividend
On November 2, 2026, the Company announced a quarterly dividend of $0.245 per share of Class A common stock. The dividend equates to $0.98 per share on an annualized basis. The dividend will be paid on November 27, 2026 to stockholders of record as of the close of business on November 13, 2026.
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2026 Guidance
2026 Guidance | |||||||||||
Low | High | ||||||||||
AFFO per Diluted Share(1) | $1.42 | to | $1.44 | ||||||||
Same Store Cash NOI Growth | 6.0% | to | 7.0% | ||||||||
Acquisition Volume | $185 million | to | $200 million | ||||||||
Cash G&A Expense | $11.5 million | to | $12.5 million | ||||||||
(1) The Company's AFFO per share guidance range includes de minimis estimated dilution due to the impact of the Company's outstanding forward equity calculated in accordance with the treasury stock method.
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 measures of AFFO per share guidance, Same Store Cash NOI and Cash NOI, 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, Same Store Cash NOI and Cash NOI. 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 third quarter 2026 financial results on Wednesday, November 4, 2026, 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 Wednesday, November 4, 2026, through 11:59 P.M. Eastern Time on Wednesday, November 18, 2026, by dialing 1-844-512-2921 in the United States and Canada or 1-412-317-6671 internationally. The passcode for the replay is 13760645.
Non-GAAP Supplemental Financial Information
This press release uses the following non-GAAP financial measures: FFO; AFFO; EBITDA, Adjusted EBITDA, Annualized Adjusted EBITDA and Run-Rate Adjusted EBITDA (collectively, the "EBITDA Measures"); Net Debt and Pro Forma Net Debt (collectively, the "Net Debt
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Measures"); and NOI, Cash NOI, and Same Store Cash NOI (collectively, the "NOI Measures"). Each is defined and reconciled to the most directly comparable GAAP measure in this press release. Occupancy and Net Leasable Interior Square Feet, operating metrics that are not non-GAAP financial measures, are also defined below. None of these non-GAAP financial measures are calculated in accordance with GAAP, and you should not consider them alternatives to net income or cash flows from operating activities or, in the case of the Net Debt Measures, total debt, each as determined in accordance with GAAP. Except as otherwise noted below, other REITs may not define these measures in the same manner as the Company does and therefore the Company's calculations may not be comparable to such other REITs.
Funds from Operations (FFO)
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.
Adjusted Funds from Operations (AFFO)
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) are 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 (a) lump sum catch up amounts for increased rents, net of any lease incentives and (b) beginning in Q2 2026, amortization of investment in financing leases, net), fair value lease adjustments, non-real estate depreciation and amortization (which beginning in Q1 2026 includes amortization of software development costs), non-cash components of compensation expense and casualty losses (recoveries). 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.
EBITDA, Adjusted EBITDA, Annualized Adjusted EBITDA and Run-Rate Adjusted EBITDA
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The Company computes EBITDA as earnings before interest, income taxes, depreciation and amortization, and uses EBITDA as a measure of its operating performance and not as a measure of liquidity. Adjusted EBITDA starts with EBITDA and adjusts for acquisition-related expenses (as defined above), certain other non-recurring expenses, gains (losses) on the sale of real estate assets, casualty and impairment losses (gains), net, and non-cash components of compensation expense. Annualized Adjusted EBITDA is Adjusted EBITDA for the most recent quarter multiplied by four. Run-Rate Adjusted EBITDA is Annualized Adjusted EBITDA adjusted for the estimated annualized run-rate impact of the Company’s investment and disposition activity during the quarter, calculated as if such activity had occurred on the first day of the quarter. The Company presents the EBITDA Measures because similar measures are commonly used in its industry and the Company believes they are useful to investors and analysts because they provide important supplemental information concerning its operating performance, exclusive of certain non-cash items and other costs. Run-Rate Adjusted EBITDA was previously referred to as Pro Forma Annualized Adjusted EBITDA and is calculated consistently with prior periods.
Net Debt and Pro Forma Net Debt
The Company calculates (i) Net Debt as total debt less cash and property-related reserves and (ii) Pro Forma Net Debt as Net Debt less (a) the net value of unsettled forward equity as of period end and (b) the net value of equity sold after period end, including on a forward basis, through the date of this press release. Because each of these amounts could be used to repay debt, the Company believes these measures provide an estimate of the net contractual amount of borrowed capital to be repaid, which it believes is a beneficial disclosure to investors and analysts. Pro Forma Net Debt was previously referred to as Pro Forma Adjusted Net Debt and is calculated consistently with prior periods.
Net Leasable Interior Square Feet
The Company defines Net Leasable Interior Square Feet as the sum of (i) the leasable interior square footage of buildings owned by the Company and (ii) beginning in Q3 2026, for properties where the Company owns the land subject to a ground lease and the tenant owns the building, the interior square footage of the building on that land. Square footage is based on Company records where available; where Company records are not available, on USPS-reported data; and where neither is available, on other publicly available sources. Weighted average rental rate per square foot is calculated using Net Leasable Interior Square Feet, including square footage attributable to tenant-owned buildings on ground-leased land.
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Net Operating Income (NOI), Cash NOI and Same Store Cash NOI
The Company computes NOI as rental income, tenant reimbursements and revenue from direct financing leases less real estate taxes and property operating expenses (excluding property management expenses). NOI excludes all other items of expense and income included in the financial statements in calculating net income or loss. The Company believes NOI provides useful and relevant information because it reflects only those revenue and expense items that are incurred at the property level and presents such items on an unlevered basis. We further adjust NOI for non-cash revenue components of straight-line rent and other non-cash adjustments to derive Cash NOI. We further adjust Cash NOI for other adjustments that primarily consist of adjustments to NOI based on contractual lease terms and due to disposed and non-stabilized properties and Cash NOI for recently acquired properties to derive Same Store Cash NOI. We believe NOI and Cash NOI provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level and present such items on an unlevered basis. Same Store Cash NOI is considered by management to be an important operating performance measure frequently used by analysts and investors because it includes only the Cash NOI of operating properties that have been owned and stabilized for the entire current and prior year reporting periods.
Occupancy
The Company calculates occupancy by dividing the amount of the Company's owned portfolio's total Net Leasable Interior Square Feet currently under lease agreements, regardless of the actual use or occupation by the tenant of the area being leased, by the Company's owned portfolio's total Net Leasable Interior Square Feet.
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, AFFO, the EBITDA Measures, Net Debt Measures, the NOI Measures and Occupancy, together with the required GAAP presentation where available, 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, the Company's 2026 and
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2027 guidance, the Company's beliefs regarding AFFO and Same Store Cash NOI growth, the Company's expectations regarding the settlement of open forward equity positions 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 2,400 properties leased primarily to the USPS. More information is available at postalrealtytrust.com.
Contact:
Steve Bakke
EVP and Chief Financial Officer
Email: Sbakke@postalrealty.com
Phone: (516) 734-0420
Jordan Cooperstein
Senior Vice President of Finance, Capital Markets
Email: Jcooperstein@postalrealty.com
Phone: (516) 295-7820
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Postal Realty Trust, Inc.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share data)
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | 29,651 | $ | 23,692 | $ | 83,787 | $ | 67,902 | |||||||||||||||
Fee and other | 627 | 634 | 1,721 | 1,925 | |||||||||||||||||||
Total revenues | 30,278 | 24,326 | 85,508 | 69,827 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Real estate taxes | 3,393 | 2,865 | 9,664 | 8,287 | |||||||||||||||||||
Property operating expenses | 2,899 | 2,355 | 8,306 | 6,800 | |||||||||||||||||||
General and administrative | 5,091 | 3,751 | 15,193 | 13,003 | |||||||||||||||||||
Casualty and impairment (gains) losses, net | (39) | 97 | (213) | (98) | |||||||||||||||||||
Depreciation and amortization | 7,033 | 6,109 | 20,163 | 17,647 | |||||||||||||||||||
Total operating expenses | 18,377 | 15,177 | 53,113 | 45,639 | |||||||||||||||||||
Gain (loss) on sale of real estate assets | — | — | 30 | (49) | |||||||||||||||||||
Income from operations | 11,901 | 9,149 | 32,425 | 24,139 | |||||||||||||||||||
Other income | — | — | — | 30 | |||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||
Contractual interest expense | (4,274) | (3,903) | (12,976) | (11,157) | |||||||||||||||||||
Write-off and amortization of deferred financing fees and amortization of debt discounts | (402) | (215) | (933) | (637) | |||||||||||||||||||
Loss on early extinguishment of debt | (232) | (142) | (232) | (142) | |||||||||||||||||||
Interest income | 2 | — | 2 | 7 | |||||||||||||||||||
Total interest expense, net | (4,906) | (4,260) | (14,139) | (11,929) | |||||||||||||||||||
Income before income tax expense | 6,995 | 4,889 | 18,286 | 12,240 | |||||||||||||||||||
Income tax expense | (14) | (6) | (64) | (30) | |||||||||||||||||||
Net income | 6,981 | 4,883 | 18,222 | 12,210 | |||||||||||||||||||
Net income attributable to operating partnership unitholders’ non-controlling interests | (1,377) | (1,073) | (3,740) | (2,704) | |||||||||||||||||||
Net income attributable to common stockholders | $ | 5,604 | $ | 3,810 | $ | 14,482 | $ | 9,506 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | 0.16 | $ | 0.13 | $ | 0.42 | $ | 0.32 | |||||||||||||||
Diluted | $ | 0.16 | $ | 0.13 | $ | 0.42 | $ | 0.32 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 30,341,104 | 24,627,866 | 28,282,282 | 23,810,318 | |||||||||||||||||||
Diluted | 30,586,891 | 24,627,866 | 28,556,965 | 23,810,318 | |||||||||||||||||||
8
Postal Realty Trust, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except par value and share data)
September 30, 2026 | December 31, 2025 | ||||||||||
Assets | |||||||||||
Investments: | |||||||||||
Real estate properties, at cost: | |||||||||||
Land | $ | 217,666 | $ | 163,485 | |||||||
Building and improvements | 712,703 | 603,390 | |||||||||
Tenant improvements | 9,513 | 8,649 | |||||||||
Total real estate properties, at cost | 939,882 | 775,524 | |||||||||
Less: Accumulated depreciation | (89,189) | (74,769) | |||||||||
Total real estate properties, net | 850,693 | 700,755 | |||||||||
Investment in financing leases, net | 15,769 | 15,851 | |||||||||
Total real estate investments, net | 866,462 | 716,606 | |||||||||
Cash | 1,764 | 1,454 | |||||||||
Escrow and reserves | 605 | 643 | |||||||||
Rent and other receivables | 8,919 | 5,232 | |||||||||
Prepaid expenses and other assets, net | 18,645 | 11,800 | |||||||||
Goodwill | 1,536 | 1,536 | |||||||||
Deferred rent receivable | 9,499 | 5,373 | |||||||||
Lease intangible assets, net | 23,390 | 16,413 | |||||||||
Assets held for sale, net | 415 | — | |||||||||
Total Assets | $ | 931,235 | $ | 759,057 | |||||||
Liabilities and Equity | |||||||||||
Liabilities: | |||||||||||
Term loans, net | $ | 337,610 | $ | 288,313 | |||||||
Revolving credit facility | 11,000 | 39,000 | |||||||||
Secured and other borrowings, net | 36,375 | 33,828 | |||||||||
Accounts payable, accrued expenses and other, net | 19,157 | 18,597 | |||||||||
Below market leases, net | 24,971 | 19,758 | |||||||||
Total Liabilities | 429,113 | 399,496 | |||||||||
Commitments and Contingencies | |||||||||||
Equity: | |||||||||||
Class A common stock, par value $0.01 per share; 500,000,000 shares authorized; 33,460,576 and 26,849,381 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | 335 | 268 | |||||||||
Class B common stock, par value $0.01 per share; 27,206 shares authorized; 27,206 shares issued and outstanding as of September 30, 2026 and December 31, 2025 | — | — | |||||||||
Additional paid-in capital | 480,683 | 358,001 | |||||||||
Accumulated other comprehensive income | 7,832 | 954 | |||||||||
Accumulated deficit | (80,787) | (74,024) | |||||||||
Total Stockholders’ Equity | 408,063 | 285,199 | |||||||||
Operating partnership unitholders’ non-controlling interests | 94,059 | 74,362 | |||||||||
Total Equity | 502,122 | 359,561 | |||||||||
Total Liabilities and Equity | $ | 931,235 | $ | 759,057 | |||||||
9
Postal Realty Trust, Inc.
Reconciliation of Net Income to Same Store Cash NOI
(Unaudited)
(In thousands)
For the Year Ended December 31, 2025 | ||||||||
Net income | $ | 18,098 | ||||||
Excluded revenue(1) | (1,481) | |||||||
Income tax expense | 27 | |||||||
Interest expense, net | 16,243 | |||||||
Depreciation and amortization | 23,989 | |||||||
Casualty and impairment (gains), net | (775) | |||||||
General and administrative | 17,192 | |||||||
Property management expenses | 3,031 | |||||||
Loss on sale of real estate | 49 | |||||||
Other income | (30) | |||||||
Net Operating Income ("NOI") | $ | 76,343 | ||||||
Straight-line rent and other non-cash adjustments | (7,349) | |||||||
Deferred ground leases | 23 | |||||||
Cash NOI ("Cash NOI") | $ | 69,017 | ||||||
Other adjustments(2) | 103 | |||||||
Cash NOI for recently acquired properties | (4,417) | |||||||
Same Store Cash NOI | $ | 64,703 | ||||||
Explanatory Notes:
(1) Excluded revenue primarily consists of property management fees and professional services
(2) Other adjustments primarily consists of adjustments to NOI based on contractual lease terms, and due to disposed and non- stabilized properties
10
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 September 30, 2026 | ||||||||
Net income | $ | 6,981 | ||||||
Depreciation and amortization of real estate assets | 7,005 | |||||||
FFO | $ | 13,986 | ||||||
Recurring capital expenditures | (308) | |||||||
Write-off and amortization of deferred financing fees and amortization of debt discounts | 402 | |||||||
Loss on early extinguishment of debt | 232 | |||||||
Straight-line rent and other adjustments | (1,502) | |||||||
Fair value lease adjustments | (994) | |||||||
Acquisition-related and other expenses | 247 | |||||||
Casualty gains | (39) | |||||||
Non-real estate depreciation and amortization | 32 | |||||||
Non-cash components of compensation expense | 1,867 | |||||||
AFFO | $ | 13,923 | ||||||
FFO per common share and common unit outstanding-diluted | $ | 0.36 | ||||||
AFFO per common share and common unit outstanding-diluted | $ | 0.36 | ||||||
Weighted average common shares and common units outstanding | ||||||||
Basic | 38,430,719 | |||||||
Diluted | 38,676,506 | |||||||
11
Postal Realty Trust, Inc.
Reconciliation of Net Income to Run Rate Adjusted EBITDA
(Unaudited)
(In thousands)
For the Three Months Ended September 30, 2026 | |||||
Net income | $ | 6,981 | |||
Contractual interest expense | 4,274 | ||||
Write-off and amortization of deferred financing fees and amortization of debt discounts | 402 | ||||
Loss on early extinguishment of debt | 232 | ||||
Income tax expense (benefit) | 14 | ||||
Depreciation and amortization | 7,037 | ||||
EBITDA | $ | 18,940 | |||
Acquisition-related and other expenses | 247 | ||||
Casualty and impairment (gains) losses, net | (39) | ||||
Non-cash components of compensation expense | 1,867 | ||||
Adjusted EBITDA | $ | 21,015 | |||
Adjustment for Quarterly Acquisitions | 888 | ||||
Subtotal | $ | 21,903 | |||
Annualized Adjusted EBITDA | $ | 84,060 | |||
Run-Rate Adjusted EBITDA | $ | 87,612 | |||
12
Postal Realty Trust, Inc.
Reconciliation of Debt Principal to Pro Forma Net Debt
(Unaudited)
(In thousands)
As of September 30, 2026 | ||||||||
Debt Principal | $ | 388,862 | ||||||
Less: Cash | 1,764 | |||||||
Less: Escrow & Reserves | 485 | |||||||
Net Debt | $ | 386,613 | ||||||
Less: Value of Unsettled Forward Equity(1) | 77,709 | |||||||
Subtotal | $ | 308,904 | ||||||
Less: Subsequent Equity Sales (2) | 5,181 | |||||||
Pro Forma Net Debt | $ | 303,723 | ||||||
Explanatory Notes:
1.Calculated as the product of (x) 3,351,308 unsettled shares sold on forward and (y) the net forward sales price per share of all unsettled shares sold pursuant to forward agreements as of September 30, 2026
2.Calculated as the net proceeds of $0.4 million for the issuance of 16,035 shares and the product of (x) 220,335 unsettled shares sold on forward subsequent to the period and (y) the net forward sales price per share
13