Postal Realty Trust (NYSE: PSTL) lifts guidance after strong Q1 2026 growth
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Postal Realty Trust, Inc. reported solid first quarter 2026 growth, with net income attributable to common stockholders of $3.8 million, or $0.11 per diluted share. Total revenues reached $26.6 million, driven by rental income of $26.1 million, up 21.6% from the first quarter of 2025.
The company acquired 61 USPS-leased properties for $34.6 million and its owned portfolio was 99.8% occupied across 1,978 properties and 7.3 million net leasable square feet as of March 31, 2026. FFO was $11.2 million ($0.32 per diluted share) and AFFO was $11.6 million ($0.33 per diluted share).
Management raised 2026 guidance to AFFO of $1.40–$1.42 per diluted share, acquisition volume of $130–$140 million, and Same Store Cash NOI growth of 6.0%–7.0%, and introduced a 2027 same store cash revenue growth outlook of approximately 6.5%. The company also raised $59.7 million of gross equity via its ATM program and ended March 31, 2026 with about $385 million of net debt at a 4.4% weighted average interest rate.
Positive
- Raised 2026 guidance: AFFO per diluted share guidance increased to $1.40–$1.42, same store cash NOI growth to 6.0%–7.0%, and acquisition volume to $130–$140 million, signaling stronger expected performance.
- Robust growth and portfolio metrics: Rental income rose 21.6% year over year, net income attributable to common stockholders reached $3.8 million, and the owned portfolio was 99.8% occupied as of March 31, 2026.
Negative
- None.
Insights
Strong Q1 growth with higher guidance and active capital raising.
Postal Realty Trust delivered higher profitability in Q1 2026, with net income attributable to common stockholders of $3.8M and rental income up 21.6% year over year. FFO of $11.2M and AFFO of $11.6M support the dividend and acquisition program.
Management raised 2026 AFFO guidance to $1.40–$1.42 per diluted share and increased expected 2026 acquisitions to $130–$140M, while introducing a 2027 same store cash revenue growth outlook of about 6.5%. These figures reflect confidence in lease visibility with the USPS and a largely occupied portfolio.
On the balance sheet, net debt was about $385M at a 4.4% weighted average interest rate as of March 31, 2026, with $201M of undrawn revolver capacity. The company also raised $59.7M of gross equity through its ATM program and has open forward sale agreements that, if settled physically, are expected to provide additional equity funding for growth.
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, and exhibit attachments filed with this report.
Key Figures
Net income to common: $3.8 million
Rental income: $26.1 million
FFO: $11.2 million
+5 more
8 metrics
Net income to common
$3.8 million
Net income attributable to common stockholders, Q1 2026
Rental income
$26.1 million
Q1 2026 rental income, up 21.6% vs Q1 2025
FFO
$11.2 million
Funds From Operations, Q1 2026
AFFO per share
$0.33 per diluted share
Adjusted Funds From Operations, Q1 2026
2026 AFFO guidance
$1.40–$1.42 per diluted share
Full-year 2026 guidance range
2026 acquisition guidance
$130–$140 million
Expected 2026 acquisition volume
ATM equity raised
$59.7 million
Gross proceeds via ATM program in Q1 2026
Net debt
$385 million
Net debt as of March 31, 2026 at 4.4% interest rate
Key Terms
Adjusted Funds from Operations ("AFFO"), Funds from Operations ("FFO"), Same Store Cash NOI, ATM program, +2 more
6 terms
Adjusted Funds from Operations ("AFFO") financial
"Adjusted Funds from Operations ("AFFO") of $11.6 million, or $0.33 per diluted share"
Adjusted funds from operations (AFFO) is a measure used mainly for real estate companies that starts with operating cash flow and subtracts regular, recurring costs such as property upkeep, tenant-improvement spending and leasing fees to estimate the cash genuinely available to pay dividends and reinvest. Think of it like your take-home pay after predictable monthly bills — it gives investors a clearer picture of sustainable cash generation and dividend safety than raw profit numbers.
Funds from Operations ("FFO") financial
"Funds from Operations ("FFO") of $11.2 million, or $0.32 per diluted share"
Funds from operations ("FFO") is a measure used mainly for real estate companies that adjusts accounting profit to better show recurring cash-generating performance. Think of it as a landlord’s report of rent-like income: it adds back non-cash charges such as depreciation and removes one-time gains from property sales so investors can see the steady, repeatable earnings that matter for dividend coverage and valuation.
Same Store Cash NOI financial
"Same Store Cash NOI Growth | 6.0% | to | 7.0%"
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.
ATM program financial
"raised approximately $59.7 million of gross proceeds through the sale of 3.3 million shares of common stock under its ATM program"
An ATM program is a plan or arrangement that allows a company to sell its shares directly to investors over time, often through automated systems like online platforms. It provides a flexible way for companies to raise money gradually without needing a full public offering each time. For investors, it can offer easier access to buying or selling shares and can help companies manage their fundraising more efficiently.
forward sale agreements financial
"forward sale agreements covering 2.9 million shares remain unsettled, representing approximately $52.8 million of expected gross proceeds"
A forward sale agreement is a deal where two parties agree today to sell and buy an asset at a set price on a future date. It’s like promising to sell your car to a friend next month at today's price, regardless of how the car's value changes. These agreements help businesses lock in prices and reduce uncertainty about future costs or income.
non-GAAP financial measures financial
"An explanation of certain non-GAAP financial measures used in this press release, including, FFO, AFFO, net debt"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Total revenues: $26.6 million · Guidance included
Q1 2026
Total revenues
$26.6 million
+21.6% rental income YoY
Net income attributable to common stockholders
$3.8 million
FFO
$11.2 million
AFFO
$11.6 million
Guidance
2026 AFFO per diluted share of $1.40–$1.42; Same Store Cash NOI growth of 6.0%–7.0%; acquisition volume of $130–$140 million.
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): May 5, 2026
(Exact name of registrant as specified in its charter)
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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 May 5, 2026 announcing its financial results for the quarter ended March 31, 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 May 5, 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: May 5, 2026
POSTAL REALTY TRUST, INC. | ||||||||
By: | /s/ Jeremy Garber | |||||||
Name: Jeremy Garber | ||||||||
Title: President, Treasurer and Secretary | ||||||||
POSTAL REALTY TRUST, INC. REPORTS FIRST QUARTER 2026 RESULTS
- Net Income of $0.11 Per Diluted Share -
- Increased 2026 AFFO Guidance $0.01 to $1.40 - $1.42 Per Diluted Share -
- Increased 2026 Acquisition Guidance $15 Million to $130 Million - $140 Million -
- Initiating 2027 Same Store Cash Revenue Growth Outlook of Approximately 6.5% -
- $59.7 Million of Gross Equity Sales via ATM Program in First Quarter -
- $52.8 Million of Unsettled Equity via Forward ATM Program
as of May 5, 2026 -
Cedarhurst, New York, May 5, 2026 (GLOBE NEWSWIRE) — Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 2,300 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, 2026.
Highlights for the Quarter Ended March 31, 2026
•Net income attributable to common shareholders of $3.8 million, or $0.11 per diluted share
•Acquired 61 USPS properties for $34.6 million, excluding closing costs
•Rental income increased 21.6% from first quarter 2025 to first quarter 2026, reflecting internal growth and acquisitions
•Funds from Operations ("FFO") of $11.2 million, or $0.32 per diluted share
•Adjusted Funds from Operations ("AFFO") of $11.6 million, or $0.33 per diluted share
•Subsequent to quarter end, the Company announced a quarterly dividend of $0.2450 per share
"As we approach our seventh anniversary as a public company, we are seeing the results of the purpose‑built platform we have created to unlock the value of U.S. postal real estate,” said Andrew Spodek, Chief Executive Officer of Postal Realty Trust. “Our consistent AFFO per share growth, increasing visibility from long‑term leases with annual escalators, improved access to capital, and a strong acquisition pipeline underscore the strength of our business model."
Mr. Spodek continued, "Despite being only five months into 2026, the consistency and predictability of our rents allow us to provide a 2027 same-store cash revenue growth outlook of approximately 6.5%. Our revenue visibility reflects the success of our leasing approach with the Postal Service, and the strength of our portfolio leased to a high‑credit tenant with a 99.6% retention rate that consistently pays 100% of contractual rent.”
Property Portfolio & Acquisitions
The Company’s owned portfolio was 99.8% occupied, comprised of 1,978 properties across 49 states and one territory with approximately 7.3 million net leasable interior square feet and a weighted average rental rate of $12.05 per leasable square foot based on rents in place as of
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March 31, 2026. The weighted average rental rate consisted of $14.23 per leasable square foot on last-mile and flex properties, and $4.25 on industrial properties.
During the first quarter, the Company acquired 61 last-mile and flex properties leased to the USPS for $34.6 million excluding closing costs, comprising approximately 195,000 net leasable interior square feet at a weighted average rental rate of $14.56 per leasable square foot based on rents in place as of March 31, 2026. These acquisitions were completed at a weighted average cash capitalization rate of approximately 7.4%.
Balance Sheet & Capital Markets Activity
On February 20, 2026, the Company entered into an agreement with its lenders under the revolving credit facility to increase commitments pursuant to which (i) the revolving credit facility was increased by $100.0 million to $250.0 million in the aggregate, (ii) the 2028 Term Loan was increased by $15.0 million to $190.0 million in the aggregate and (iii) The Bank of Nova Scotia was added as a lender under the Credit Agreement.
As of March 31, 2026, the Company had approximately $2.7 million of cash and property-related reserves, and approximately $385 million of net debt with a weighted average interest rate of 4.4%. At the end of the quarter, 84% of the Company's debt outstanding was set to fixed rates (when taking into account interest rate hedges), and $201.0 million of the Company's revolving credit facility was undrawn.
During the first quarter, the Company raised approximately $59.7 million of gross proceeds through the sale of 3.3 million shares of common stock under its ATM program. Regular-way sales accounted for 0.5 million shares and approximately $8.6 million of gross proceeds, while forward sales accounted for 2.8 million shares and approximately $51.1 million of expected gross proceeds, assuming full physical settlement. At the end of the first quarter, the Company had unsettled forward sale agreements covering 2.6 million shares, representing approximately $48.0 million of expected gross proceeds, assuming full physical settlement. Subsequent to quarter end, the Company raised an additional $4.9 million of gross proceeds through the sale of 0.2 million shares under its ATM program, all of which were sold on a forward basis. As of May 5, 2026, forward sale agreements covering 2.9 million shares remain unsettled, representing approximately $52.8 million of expected gross proceeds, assuming full physical settlement.
Dividend
On May 5, 2026, the Company announced a quarterly dividend of $0.2450 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 May 29, 2026 to stockholders of record as of the close of business on May 15, 2026.
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2026 Guidance
2026 Guidance | |||||||||||
Low | High | ||||||||||
AFFO per Diluted Share(1) | $1.40 | to | $1.42 | ||||||||
Same Store Cash NOI Growth | 6.0% | to | 7.0% | ||||||||
Acquisition Volume | $130 million | to | $140 million | ||||||||
Cash G&A Expense | $11.5 million | to | $12.5 million | ||||||||
(1) The Company's AFFO per share guidance range includes $0.01 per share of 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, Cash NOI, Same Store Cash Revenue and Cash Revenue, 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, Cash NOI, Same Store Cash Revenue and Cash Revenue. 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 2026 financial results on Wednesday, May 6, 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, May 6, 2026, through 11:59 P.M. Eastern Time on Wednesday, May 20, 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 13757207.
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Non-GAAP Supplemental Financial Information
An explanation of certain non-GAAP financial measures used in this press release, including, FFO, AFFO, net debt, Same Store Cash NOI, NOI, Cash NOI, Same Store Cash Revenue and Cash Revenue as well as reconciliations of certain 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, 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) (which beginning in Q2 2025, includes income (expenses) on insurance recoveries from casualties) and, for periods prior to Q2 2025, income (expenses) on insurance recoveries from casualties. 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. The Company believes excluding cash and restricted cash deposits held for the benefit of lenders from total debt, all of which could be used to repay debt, provides an estimate of the net
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contractual amount of borrowed capital to be repaid, which it believes is a beneficial disclosure to investors and analysts. Net debt as of March 31, 2026 is calculated as total debt of approximately $388 million less cash and property-related reserves of approximately $3 million.
Net Operating Income (“NOI”), Cash NOI, and Same Store Cash NOI are non-GAAP financial measures which we use to assess our operating results. We compute NOI as net income (computed in accordance with GAAP), excluding general and administrative expenses, interest expense, net, income tax expense, depreciation and amortization, gains (or losses) on sale of real estate, casualty and impairment (gains) losses, net, property management expenses and other income, expenses, net. 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 consists 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. NOI, Cash NOI, and Same Store Cash NOI are not measurements of financial performance under GAAP and may not be comparable to similarly titled measures of other companies. You should not consider our measures as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. NOI, Cash NOI, and Same Store Cash NOI are supplemental non-GAAP financial measures of real estate companies' operating performance and should not be considered an alternative to net income in accordance with GAAP or as a measure of liquidity.
Cash Revenue and Same Store Cash Revenue are supplemental non-GAAP financial measures of real estate companies' operating performance and should not be considered an alternative to net income in accordance with GAAP or as a measure of liquidity. Cash Revenue is calculated using rental income, based on contractual lease terms, excluding straight-line rent adjustments and amortization of above/ below market rents. Cash Revenue is considered by management to be an important operating performance measure frequently used by analyst and investors because such measure shows the contractural rental rent we expect to receive independent of straight-line rent adjustments and amortization of above and below market rents. Same Store Cash Revenue is considered by management to be important operating performance measures frequently used by analysts and investors because it measures the Cash Revenue of operating properties that have been owned and stabilized for the entire current and prior year reporting periods.
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
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additive use of FFO and AFFO, net debt, Same Store Cash NOI, NOI, Cash NOI, Same Store Cash Revenue and Cash Revenue, 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, the Company's 2026 and 2027 guidance, the Company's beliefs regarding AFFO 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 2,300 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
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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 March 31, | |||||||||||
2026 | 2025 | ||||||||||
Revenues: | |||||||||||
Rental income | $ | 26,114 | $ | 21,480 | |||||||
Fee and other | 534 | 670 | |||||||||
Total revenues | 26,648 | 22,150 | |||||||||
Operating expenses: | |||||||||||
Real estate taxes | 3,069 | 2,649 | |||||||||
Property operating expenses | 2,816 | 2,461 | |||||||||
General and administrative | 5,386 | 4,936 | |||||||||
Casualty and impairment (gains) losses, net | (263) | 150 | |||||||||
Depreciation and amortization | 6,402 | 5,624 | |||||||||
Total operating expenses | 17,410 | 15,820 | |||||||||
Loss on sale of real estate assets | — | (49) | |||||||||
Income from operations | 9,238 | 6,281 | |||||||||
Other income | — | 30 | |||||||||
Interest expense, net: | |||||||||||
Contractual interest expense | (4,124) | (3,437) | |||||||||
Write-off and amortization of deferred financing fees and amortization of debt discount | (253) | (211) | |||||||||
Interest income | — | 6 | |||||||||
Total interest expense, net | (4,377) | (3,642) | |||||||||
Income before income tax expense | 4,861 | 2,669 | |||||||||
Income tax expense | (23) | (14) | |||||||||
Net income | 4,838 | 2,655 | |||||||||
Net income attributable to operating partnership unitholders’ non-controlling interests | (1,012) | (573) | |||||||||
Net income attributable to common stockholders | $ | 3,826 | $ | 2,082 | |||||||
Net income per share: | |||||||||||
Basic | $ | 0.11 | $ | 0.06 | |||||||
Diluted | $ | 0.11 | $ | 0.06 | |||||||
Weighted average common shares outstanding: | |||||||||||
Basic | 27,071,695 | 23,216,150 | |||||||||
Diluted | 27,313,093 | 23,216,150 | |||||||||
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Postal Realty Trust, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except par value and share data)
March 31, 2026 | December 31, 2025 | ||||||||||
Assets | |||||||||||
Investments: | |||||||||||
Real estate properties, at cost: | |||||||||||
Land | $ | 171,932 | $ | 163,485 | |||||||
Building and improvements | 630,911 | 603,390 | |||||||||
Tenant improvements | 8,889 | 8,649 | |||||||||
Total real estate properties, at cost | 811,732 | 775,524 | |||||||||
Less: Accumulated depreciation | (79,394) | (74,769) | |||||||||
Total real estate properties, net | 732,338 | 700,755 | |||||||||
Investment in financing leases, net | 15,821 | 15,851 | |||||||||
Total real estate investments, net | 748,159 | 716,606 | |||||||||
Cash | 1,256 | 1,454 | |||||||||
Escrow and reserves | 1,534 | 643 | |||||||||
Rent and other receivables | 4,532 | 5,232 | |||||||||
Prepaid expenses and other assets, net | 11,847 | 11,800 | |||||||||
Goodwill | 1,536 | 1,536 | |||||||||
Deferred rent receivable | 6,353 | 5,373 | |||||||||
Lease intangible assets, net | 17,326 | 16,413 | |||||||||
Total Assets | $ | 792,543 | $ | 759,057 | |||||||
Liabilities and Equity | |||||||||||
Liabilities: | |||||||||||
Term loans, net | $ | 303,412 | $ | 288,313 | |||||||
Revolving credit facility | 49,000 | 39,000 | |||||||||
Secured borrowings, net | 33,723 | 33,828 | |||||||||
Accounts payable, accrued expenses and other, net | 15,137 | 18,597 | |||||||||
Below market leases, net | 20,819 | 19,758 | |||||||||
Total Liabilities | 422,091 | 399,496 | |||||||||
Commitments and Contingencies | |||||||||||
Equity: | |||||||||||
Class A common stock, par value $0.01 per share; 500,000,000 shares authorized; 27,623,858 and 26,849,381 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 277 | 268 | |||||||||
Class B common stock, par value $0.01 per share; 27,206 shares authorized; 27,206 shares issued and outstanding as of March 31, 2026 and December 31, 2025 | — | — | |||||||||
Additional paid-in capital | 367,178 | 358,001 | |||||||||
Accumulated other comprehensive income | 1,871 | 954 | |||||||||
Accumulated deficit | (77,163) | (74,024) | |||||||||
Total Stockholders’ Equity | 292,163 | 285,199 | |||||||||
Operating partnership unitholders’ non-controlling interests | 78,289 | 74,362 | |||||||||
Total Equity | 370,452 | 359,561 | |||||||||
Total Liabilities and Equity | $ | 792,543 | $ | 759,057 | |||||||
9
Postal Realty Trust, Inc.
Reconciliation of Net Income to Same Store Cash NOI
(Unaudited)
(In thousands, except par value and share data)
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 March 31, 2026 | ||||||||
Net income | $ | 4,838 | ||||||
Depreciation and amortization of real estate assets | 6,374 | |||||||
Impairment charges | 27 | |||||||
FFO | $ | 11,239 | ||||||
Recurring capital expenditures | (143) | |||||||
Write-off and amortization of deferred financing fees and amortization of debt discount | 253 | |||||||
Straight-line rent and other adjustments | (1,171) | |||||||
Fair value lease adjustments | (896) | |||||||
Acquisition-related and other expenses | 56 | |||||||
Casualty (gains) losses, net | (290) | |||||||
Non-real estate depreciation and amortization | 32 | |||||||
Non-cash components of compensation expense | 2,552 | |||||||
AFFO | $ | 11,632 | ||||||
FFO per common share and common unit outstanding-diluted | $ | 0.32 | ||||||
AFFO per common share and common unit outstanding-diluted | $ | 0.33 | ||||||
Weighted average common shares and common units outstanding | ||||||||
Basic | 34,866,948 | |||||||
Diluted | 35,108,346 | |||||||
11
FAQ
How did Postal Realty Trust (PSTL) perform in Q1 2026?
Postal Realty Trust reported net income attributable to common stockholders of $3.8 million, or $0.11 per diluted share, on total revenues of $26.6 million. Rental income grew 21.6% year over year, supported by acquisitions and a highly occupied USPS-focused portfolio.
What were Postal Realty Trust’s FFO and AFFO for Q1 2026?
For the first quarter of 2026, Postal Realty Trust generated FFO of $11.2 million ($0.32 per diluted share) and AFFO of $11.6 million ($0.33 per diluted share). These non-GAAP measures adjust net income for real estate depreciation, financing items, and other specified non-cash or non-recurring items.
What 2026 guidance did Postal Realty Trust provide?
For 2026, Postal Realty Trust guided to AFFO per diluted share of $1.40–$1.42, Same Store Cash NOI growth of 6.0%–7.0%, acquisition volume of $130–$140 million, and cash G&A expense of $11.5–$12.5 million, reflecting updated expectations for the year.
What is Postal Realty Trust’s 2027 same store cash revenue outlook?
The company introduced a 2027 same store cash revenue growth outlook of approximately 6.5%. Management links this outlook to long-term leases with annual escalators and high retention from the United States Postal Service across its postal real estate portfolio.
How active was Postal Realty Trust’s ATM equity program in Q1 2026?
During Q1 2026, Postal Realty Trust raised about $59.7 million of gross equity by selling 3.3 million shares under its ATM program. This included 0.5 million regular-way shares and 2.8 million shares sold via forward agreements, with additional forward sales after quarter end.
What dividend did Postal Realty Trust declare for Q1 2026?
On May 5, 2026, Postal Realty Trust declared a quarterly dividend of $0.2450 per share of Class A common stock, equivalent to $0.98 per share annually. The dividend is payable May 29, 2026 to stockholders of record as of May 15, 2026.
What is Postal Realty Trust’s debt and liquidity position as of March 31, 2026?
As of March 31, 2026, Postal Realty Trust had about $388 million of total debt, $2.7 million of cash and property-related reserves, and approximately $385 million of net debt with a 4.4% weighted average interest rate. Its $250 million revolving credit facility had $201 million undrawn.