Summary of Postal Realty Trust (PSTL) FY Conference Call - August 26, 2025 Company Overview - **Company**: Postal Realty Trust (PSTL) - **Industry**: Real Estate Investment Trust (REIT) focused on postal service properties Key Points and Arguments 1. **Market Size and Structure**: The postal service leases approximately 23,000 facilities, paying around $1.6 billion in rent, which constitutes only 1.5% of its operating expenses, indicating a fragmented market with significant potential for growth [6][7][8] 2. **Retention Rate**: The company has maintained a retention rate of over 99% for the past decade, showcasing the stability of its rental income despite economic fluctuations [3][23] 3. **Growth Strategy**: The company has grown its portfolio from 270 properties to over 1,850 properties since going public, acquiring 200 to 300 properties annually [15][16] 4. **Acquisition Guidance**: The company has adjusted its acquisition guidance for the year to be at or above $90 million, with a focus on properties purchased at or above a 7.5% cap rate [17] 5. **Earnings Growth**: The company reported an 8% year-over-year earnings growth and updated its earnings guidance to $1.24 to $1.26 per share, alongside same-store NOI guidance of 7% to 9% [17][18] 6. **Lease Structure**: The company has instituted 10-year leases with 3% annual escalations, which is more favorable compared to the typical 5-year fixed leases held by other owners [21][72] 7. **Off-Market Deals**: Approximately 75% of the company's deals are off-market, providing a competitive advantage in acquiring properties without broker involvement [14] 8. **Tax Efficiency**: The operating partnership units allow property owners to exchange their properties without triggering capital gains tax, making it an attractive option for sellers [10][64] 9. **Market Positioning**: The company aims to capture 8-9% of the $12-15 billion postal real estate market, with a focus on increasing its market cap and liquidity [50][52] 10. **Cost of Capital**: As the company grows, it anticipates a decrease in its cost of capital, which will enhance its acquisition capabilities [52][53] Additional Important Insights - **Demographics of Property Owners**: Many current property owners are older individuals who may not negotiate effectively, providing an opportunity for the company to acquire properties at favorable terms [32][34] - **Flexibility in Property Use**: The properties can be converted for various uses, such as medical offices or retail, which adds to their value [24][68] - **Operational Efficiencies**: The company has focused on finding efficiencies in property operations, contributing to its earnings growth [18][41] - **Long-Term Vision**: The CEO emphasizes a long-term strategy focused on sustainable growth rather than short-term monetization [15][62] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic positioning, growth potential, and operational efficiencies within the postal real estate market.

Financial Data and Key Metrics Changes - The company reported adjusted funds from operations (AFFO) per share of $0.33 for Q2 2025, leading to an increase in full-year 2025 AFFO guidance to a range of $1.24 to $1.26 per share, reflecting nearly 8% year-over-year growth [6][7][15] - Funds from operations (FFO) for the quarter were $0.35 per diluted share, with the increase in guidance attributed to lower operating expenses and effective cost management [15][17] Business Line Data and Key Metrics Changes - The company executed ten-year leases for 31% of its portfolio, with 55% of leases featuring annual rent escalations, enhancing revenue predictability [4][5] - The same store cash net operating income (NOI) guidance was updated to a range of 7% to 9%, up from a previous range of 4% to 6%, driven by successful re-leasing efforts and reduced expenses [10][15] Market Data and Key Metrics Changes - The company completed acquisitions of 127 properties year-to-date for over $60 million, with a weighted average cap rate of 7.8% [8][9] - The net debt to annualized adjusted EBITDA ratio decreased to 5.1 times, down from 5.2 times in 2024, indicating improved leverage [9][17] Company Strategy and Development Direction - The company is focused on acquiring new assets and improving cash flow, with a strategy to consolidate a fragmented market [11][19] - The management emphasized the importance of maintaining a strong balance sheet while pursuing growth opportunities through acquisitions [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of the portfolio and its alignment with the Postal Service's mission, highlighting the importance of their partnership [11] - The new Postmaster General's commitment to the Postal Service's role in American infrastructure was noted as a positive development for the company's future [10][11] Other Important Information - The company raised nearly $18 million in equity through an ATM offering, indicating strong market support [17] - A quarterly dividend of $0.025 per share was approved, representing a 1% increase from the previous year, and remains well covered by AFFO [17] Q&A Session Summary Question: Can you walk us through the pickup in the same store NOI guidance? - Management explained that the increase in same store NOI is due to a combination of revenue growth from re-leasing efforts and reduced expenses, leading to a revised guidance [22][23] Question: What is driving the step down in the run rate for AFFO? - Management clarified that operating expenses are variable and depend on project scope and timing, with historical expense trends informing annual budgeting [24][25] Question: Can you discuss the efficiencies being implemented in acquisitions? - Management confirmed that while acquisitions are made at or above a 7.5% cap rate, operational efficiencies are expected to increase stabilized yields through effective management and leasing processes [28][29]

Financial Performance & Growth - Same-store cash NOI growth was 5.5% for 2023 and 4.4% for 2024, with an estimated range of 7-9% for 2025[4, 21] - The company's dividend yield is attractive at 6.7% as of July 18, 2025, based on a share price of $14.52[4, 5] - Quarterly dividend has grown 73% since Q3 2019[4] - Current annual rent escalations are projected to contribute $0.02 – $0.06 of AFFO accretion from 2025 – 2027[12] Portfolio & Leasing - The company has a high weighted average lease retention rate of 99%[4, 35] - 34% of the portfolio has annual rent escalations[11] - 40% of current leases expire from 2025-2027, creating opportunities to mark rents to market[17] - The company's owned portfolio consists of 1,829 properties with 6.8 million interior square feet[56] - The company's annualized gross rent is $76.4 million[56, 57] Market Position & Strategy - The company's portfolio represents approximately 7% of the leased USPS market[28] - The company has acquired more than $600 million in real estate over the last seven years at or below replacement cost[4] - USPS operating lease payments represented only 1.5% of the USPS's total operating expenses in fiscal year 2024[35]

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Postal Realty Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Postal Realty Trust here>>> For the quarter ended June 2025, Postal Realty Trust (PSTL) reported r ...

分组1 - Postal Realty Trust (PSTL) reported quarterly funds from operations (FFO) of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and up from $0.26 per share a year ago, representing a surprise of +10.00% [1] - The company achieved revenues of $23.35 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.84%, compared to $18.05 million in the same quarter last year [2] - Postal Realty Trust has consistently surpassed consensus FFO estimates over the last four quarters [2] 分组2 - The stock has gained approximately 5% since the beginning of the year, while the S&P 500 has increased by 6.1% [3] - The future performance of Postal Realty Trust's stock will largely depend on management's commentary during the earnings call and the outlook for FFO [4][6] - The current consensus FFO estimate for the upcoming quarter is $0.30 on revenues of $23.04 million, and for the current fiscal year, it is $1.22 on revenues of $91.26 million [7] 分组3 - The REIT and Equity Trust - Other industry, to which Postal Realty Trust belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

Second Quarter 2025 Results Overview [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) Postal Realty Trust reported strong Q2 2025 results, including a **29% revenue increase**, **$3.6 million** net income, and **$0.33** AFFO per diluted share, while expanding its portfolio and raising full-year guidance Q2 2025 Financial Highlights | Metric | Value | Per Diluted Share | | :--- | :--- | :--- | | Net Income (attributable to common shareholders) | $3.6 million | $0.12 | | Funds from Operations (FFO) | $10.8 million | $0.35 | | Adjusted Funds from Operations (AFFO) | $10.4 million | $0.33 | - Revenue grew by **29%** from Q2 2024 to Q2 2025[5](index=5&type=chunk) - Acquired **68 USPS properties** for approximately **$35.9 million** at a weighted average capitalization rate of **7.8%**[1](index=1&type=chunk)[5](index=5&type=chunk) - The company increased its 2025 AFFO guidance by **$0.04** to a new range of **$1.24 - $1.26** per diluted share[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Andrew Spodek attributed strong quarterly results to successful 10-year leases, strategic acquisitions, and a robust balance sheet, emphasizing the strong USPS relationship and disciplined growth strategy - Management credits the strong performance to successful execution of **10-year leases** with **annual rent escalations**, **strategic property acquisitions**, and maintaining a **robust balance sheet**[3](index=3&type=chunk) - The CEO emphasized that the company's relationship with its primary tenant, the **U.S. Postal Service**, remains stronger than ever[3](index=3&type=chunk) - The company's strategy focuses on **disciplined growth** through prudent platform scaling to deliver **consistent internal and external growth**[3](index=3&type=chunk) Operational and Financial Details [Property Portfolio & Acquisitions](index=1&type=section&id=Property%20Portfolio%20%26%20Acquisitions) As of June 30, 2025, the company's portfolio was **99.8%** occupied with **1,806 properties** and **6.8 million** square feet, having acquired **68 properties** for **$35.9 million** in Q2 at a **7.8%** cap rate Portfolio Overview as of June 30, 2025 | Metric | Value | | :--- | :--- | | Occupancy | 99.8% | | Number of Properties | 1,806 | | Net Leasable Square Feet | ~6.8 million | | Weighted Average Rental Rate | $11.11 / sq. ft. | | - Last-mile & Flex Rate | $13.24 / sq. ft. | | - Industrial Rate | $4.14 / sq. ft. | Q2 2025 Acquisitions | Metric | Value | | :--- | :--- | | Properties Acquired | 68 | | Total Cost | ~$35.9 million | | Net Leasable Square Feet Added | ~240,000 | | Weighted Average Rental Rate | $13.20 / sq. ft. | [Leasing Activities](index=2&type=section&id=Leasing%20Activities) The company successfully managed 2025 lease expirations, securing **161** new USPS leases by July 18, 2025, which generated a **$0.2 million** lump sum catch-up rent payment in Q2 - As of July 18, 2025, the company received **161** fully executed new leases from the **USPS** for leases that expired in **2025**[7](index=7&type=chunk) - A total lump sum catch-up payment of approximately **$0.2 million** was received from the **USPS** for leases executed in **Q2 2025**[7](index=7&type=chunk) [Balance Sheet & Capital Markets](index=2&type=section&id=Balance%20Sheet%20%26%20Capital%20Markets) As of June 30, 2025, the company maintained a solid financial position with **$328 million** in net debt at **4.51%** weighted average interest, **86%** fixed, and raised capital via ATM program for acquisitions Balance Sheet Summary as of June 30, 2025 | Metric | Value | | :--- | :--- | | Cash and Property-Related Reserves | ~$2.0 million | | Net Debt | ~$328 million | | Weighted Average Interest Rate | 4.51% | | Fixed Rate Debt Percentage | 86% | | Undrawn Revolving Credit Facility | $104 million | - During Q2 and through July 18, 2025, the company issued **867,083 shares** of common stock via its ATM program at an average price of **$14.79 per share**[9](index=9&type=chunk) - The company also issued **391,929 common units** in its operating partnership as part of consideration for property acquisitions[9](index=9&type=chunk) [Dividend](index=2&type=section&id=Dividend) On July 21, 2025, the company declared a quarterly dividend of **$0.2425** per share, equating to an annualized **$0.97** per share, payable on August 29, 2025 Quarterly Dividend Information | Metric | Value | | :--- | :--- | | Quarterly Dividend per Share | $0.2425 | | Annualized Dividend per Share | $0.97 | | Record Date | July 31, 2025 | | Payment Date | August 29, 2025 | Outlook and Subsequent Events [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) The company raised its full-year 2025 AFFO per diluted share guidance to **$1.24-$1.26** and expects acquisition volume to meet or exceed **$90 million** Updated Full Year 2025 Guidance | Metric | Prior Guidance | Current Guidance | | :--- | :--- | :--- | | AFFO per Diluted Share | $1.20 - $1.22 | $1.24 - $1.26 | | Acquisition Volume | $80.0M - $90.0M | Meet or exceed $90M | | Cash G&A Expense | $10.5M - $11.0M | $10.5M - $11.5M | [Subsequent Events](index=2&type=section&id=Subsequent%20Events) Subsequent to Q2, the company acquired **23 additional properties** for **$8.4 million** and has another **24 properties** valued at **$7.3 million** under definitive contracts - Subsequent to quarter end, the company acquired **23 properties** for approximately **$8.4 million**[11](index=11&type=chunk) - The company has an additional **24 properties** under definitive contracts, totaling approximately **$7.3 million**[11](index=11&type=chunk) Financial Statements and Reconciliations [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenues increased to **$23.4 million** from **$18.1 million** year-over-year, with net income attributable to common stockholders rising significantly to **$3.6 million**, or **$0.12** per diluted share Q2 2025 vs Q2 2024 Statement of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $23,351 | $18,050 | | Total Operating Expenses | $14,642 | $13,941 | | Income from Operations | $8,709 | $4,109 | | Net Income | $4,672 | $1,032 | | Net Income Attributable to Common Stockholders | $3,614 | $817 | | Net Income per Share (Diluted) | $0.12 | $0.02 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets grew to **$689.8 million** from **$646.8 million** at year-end 2024, driven by real estate, while total liabilities increased to **$365.3 million** from **$329.3 million** due to higher borrowings Balance Sheet Comparison (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Real Estate Properties, net | $637,326 | $590,031 | | Total Assets | $689,822 | $646,818 | | Total Liabilities | $365,268 | $329,320 | | Total Equity | $324,554 | $317,498 | [Reconciliation of Net Income to FFO and AFFO](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20FFO%20and%20AFFO) For Q2 2025, the company reconciled GAAP net income of **$4.7 million** to FFO of **$10.8 million** and AFFO of **$10.4 million**, with key adjustments for depreciation, non-cash compensation, and rent adjustments Q2 2025 Reconciliation (in thousands) | Metric | Value | | :--- | :--- | | Net Income | $4,672 | | Depreciation and amortization of real estate assets | $5,887 | | **FFO** | **$10,752** | | Adjustments (Recurring capex, financing fees, rent adjustments, etc.) | ($364) | | **AFFO** | **$10,388** | | FFO per share/unit | $0.35 | | AFFO per share/unit | $0.33 | Supplemental Information [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP financial measures like FFO, AFFO, and net debt, explaining their calculation in accordance with NAREIT guidelines and their utility for understanding company performance - The company calculates FFO in accordance with the **National Association of Real Estate Investment Trusts (NAREIT)** definition[17](index=17&type=chunk) - AFFO is calculated by starting with **FFO** and adjusting for items such as **recurring capital expenditures**, **acquisition-related expenses**, **straight-line rent**, and **non-cash compensation**[18](index=18&type=chunk)[19](index=19&type=chunk) - Net debt is defined as **total debt** less **cash and property-related reserves**[20](index=20&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to risks and uncertainties, including USPS lease renewals and market conditions, with further details available in SEC filings - The report includes **forward-looking statements** that are subject to inherent **uncertainties**, **risks**, and changes in circumstances[22](index=22&type=chunk)[23](index=23&type=chunk) - Key risk factors include **USPS lease terminations or non-renewals**, changes in **demand for postal services**, and the **financial health of the USPS**[23](index=23&type=chunk) [Company Profile and Contact](index=5&type=section&id=Company%20Profile%20and%20Contact) Postal Realty Trust, Inc. is an internally managed REIT specializing in owning and managing over **2,150 properties** primarily leased to the USPS, with contact information provided for investor and media relations - Postal Realty Trust, Inc. is an **internally managed REIT** owning and managing **over 2,150 properties** leased mainly to the **USPS**[24](index=24&type=chunk) - Contact information for **investor and media relations** is provided via email and phone[25](index=25&type=chunk)

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q2 and H1 2025, including balance sheets, operations, equity, and cash flows, with notes on policies and items [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Company assets grew to $689.8 million, with Q2 2025 revenues up 29.4% to $23.4 million and net income surging to $3.6 million Consolidated Balance Sheet Highlights | | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $689,822 | $646,818 | | **Total Liabilities** | $365,268 | $329,320 | | **Total Equity** | $324,554 | $317,498 | Consolidated Statements of Operations Highlights | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $23,351 | $18,050 | $45,501 | $35,338 | | **Income from operations** | $8,709 | $4,109 | $14,990 | $7,148 | | **Net income attributable to common stockholders** | $3,614 | $817 | $5,696 | $1,023 | | **Basic and Diluted EPS** | $0.12 | $0.02 | $0.19 | $0.01 | Consolidated Statements of Cash Flows Highlights | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $22,224 | $16,286 | | **Net cash used in investing activities** | ($48,704) | ($43,617) | | **Net cash provided by financing activities** | $26,024 | $27,075 | [Note 1 & 2: Organization and Accounting Policies](index=13&type=section&id=Note%201%20%26%202%3A%20Organization%20and%20Accounting%20Policies) The company operates as a REIT, owning and managing properties leased to USPS, with financial statements prepared under GAAP - As of June 30, 2025, the Company owned a portfolio of **1,806 properties** located in **49 states** and one territory, primarily leased to the USPS[30](index=30&type=chunk) - The Company operates as a single reportable segment, with the CEO acting as the Chief Operating Decision Maker who reviews net income to assess performance[42](index=42&type=chunk) - For the six months ended June 30, 2025, approximately **10.6%** of the Company's total rental income was concentrated in Pennsylvania[62](index=62&type=chunk) [Note 3: Real Estate Transactions](index=19&type=section&id=Note%203%3A%20Real%20Estate%20Transactions) In H1 2025, the company acquired 104 properties for $53.2 million and sold one property for $0.8 million Property Acquisition Summary | Period | Number of Properties Acquired | Total Cost (in thousands) | | :--- | :--- | :--- | | Q1 2025 | 36 | $16,341 | | Q2 2025 | 68 | $36,867 | | **Total H1 2025** | **104** | **$53,208** | - During the six months ended June 30, 2025, the Company sold one real estate property for net proceeds of **$0.8 million** and recorded a loss of **$0.05 million**[74](index=74&type=chunk) [Note 5: Debt](index=23&type=section&id=Note%205%3A%20Debt) As of June 30, 2025, total principal indebtedness was $330.2 million, comprising credit facilities, term loans, and secured borrowings Debt Outstanding | Debt Instrument | Outstanding Balance (June 30, 2025) (in USD) | | :--- | :--- | | Revolving Credit Facility | $46,000,000 | | 2021 Term Loan | $75,000,000 | | 2022 Term Loan | $175,000,000 | | Secured Borrowings | $34,168,000 | | **Total Principal** | **$330,168,000** | [Note 6: Derivatives and Hedging Activities](index=25&type=section&id=Note%206%3A%20Derivatives%20and%20Hedging%20Activities) The company uses nine interest rate swaps with a $250.0 million notional amount to hedge variable-rate term loans, recording fair value changes in OCI - The company has **nine interest rate swaps** with a total notional amount of **$250.0 million** to manage interest rate risk on its term loans[93](index=93&type=chunk) - The swaps are designated as cash flow hedges, with gains or losses recorded in 'Accumulated other comprehensive income' and reclassified to interest expense as payments are made[95](index=95&type=chunk) [Note 7: Leases](index=26&type=section&id=Note%207%3A%20Leases) The company primarily acts as a lessor to USPS, with $315.1 million in future minimum lease payments, and also leases certain ground and office spaces Future Minimum Lease Payments | Year Ending December 31, | Future Minimum Lease Payments (in thousands) | | :--- | :--- | | 2025 - Remaining | $37,160 | | 2026 | $68,317 | | 2027 | $53,537 | | 2028 | $40,945 | | 2029 | $30,463 | | Thereafter | $84,724 | | **Total** | **$315,146** | [Note 9: Related Party Transactions](index=28&type=section&id=Note%209%3A%20Related%20Party%20Transactions) Details include a $500,000 payment to the former CFO, $0.6 million in management fees to a CEO-affiliated entity, and CEO personal loan guarantees - A Transition and General Release Agreement was made with former CFO Robert B. Klein, providing for a gross consideration of **$500,000**, paid partly by accelerating the vesting of **28,000 equity awards**[114](index=114&type=chunk)[117](index=117&type=chunk) - The company's TRS, REAC, has amended management agreements with affiliates of CEO Andrew Spodek, earning **$0.6 million** in management fees for the six months ended June 30, 2025[120](index=120&type=chunk)[124](index=124&type=chunk) - CEO Andrew Spodek has personally guaranteed company loans totaling **$1.8 million** as of June 30, 2025[127](index=127&type=chunk) [Note 11: Stockholders' Equity](index=31&type=section&id=Note%2011%3A%20Stockholders%27%20Equity) The company issued 669,454 shares for $9.4 million via ATM, declared $0.2425 per share dividends, and has $21.1 million in unrecognized equity compensation cost ATM Program Activity | ATM Program Activity | Six Months Ended June 30, 2025 (in USD) | | :--- | :--- | | Shares issued | 669,454 | | Gross proceeds received | $9,788,000 | | Net proceeds received | $9,381,000 | | Average gross sales price per share | $14.62 | - The company declared and paid dividends of **$0.2425 per share** for Q1 2025 and Q2 2025[134](index=134&type=chunk)[135](index=135&type=chunk) - As of June 30, 2025, there was **$21.1 million** of total unrecognized compensation cost related to unvested equity awards, expected to be recognized over a weighted average period of **4.9 years**[148](index=148&type=chunk) [Note 13: Subsequent Events](index=35&type=section&id=Note%2013%3A%20Subsequent%20Events) Post-quarter, the company acquired 23 properties for $8.4 million, issued $5.0 million in ATM stock, and declared its Q2 dividend - Declared a Q2 2025 dividend of **$0.2425 per share**, payable on August 29, 2025[154](index=154&type=chunk) - Subsequent to quarter-end (as of August 4, 2025), acquired **23 properties** for approximately **$8.4 million**[155](index=155&type=chunk) - Subsequent to quarter-end (as of August 4, 2025), issued **337,255 shares** under the ATM Program for gross proceeds of approximately **$5.0 million**[155](index=155&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses revenue growth from acquisitions, operational factors, liquidity, capital resources, and debt structure, focusing on USPS and future funding [Overview and Key Factors](index=37&type=section&id=Overview%20and%20Key%20Factors) An internally managed REIT, the company's performance depends on USPS stability, lease renewals, expense control, and interest expense management for its 1,806 properties - During the six months ended June 30, 2025, the company acquired **104 properties** leased to the USPS for approximately **$53.2 million**[163](index=163&type=chunk)[165](index=165&type=chunk) - The company is dependent on the USPS's financial and operational stability, which faces challenges that could impact its ability to fund operations without government intervention[173](index=173&type=chunk) - The majority of leases are modified double-net, where the tenant is responsible for utilities and property tax reimbursement, while the landlord covers insurance, roof, and structure[175](index=175&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 revenues increased 29.4% to $23.4 million and net income grew 352.7% to $4.7 million, driven by acquisitions Financial Performance for Three Months Ended June 30 | (Amounts in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Rental income** | $22,730 | $17,364 | 30.9% | | **Total revenues** | $23,351 | $18,050 | 29.4% | | **Income from operations** | $8,709 | $4,109 | 111.9% | | **Net income** | $4,672 | $1,032 | 352.7% | Financial Performance for Six Months Ended June 30 | (Amounts in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Rental income** | $44,210 | $33,969 | 30.1% | | **Total revenues** | $45,501 | $35,338 | 28.8% | | **Income from operations** | $14,990 | $7,148 | 109.7% | | **Net income** | $7,327 | $1,288 | 468.9% | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources are cash from operations, credit facilities, and the ATM program, with $1.1 million cash and $296.0 million outstanding credit as of June 30, 2025 - As of June 30, 2025, the company had **$296.0 million** of aggregate principal outstanding under its Credit Facilities, including **$46.0 million** drawn on the Revolving Credit Facility[208](index=208&type=chunk) - Short-term liquidity needs are met through cash from operations, borrowings under credit facilities, and potential securities issuance via its **$150.0 million** ATM Program[213](index=213&type=chunk) - On February 25, 2025, the Board authorized a **$25.0 million** Share Repurchase Program. No shares were repurchased under this program during the three months ended June 30, 2025[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risk is interest rate risk on $46.0 million of variable-rate debt, with a 1% SOFR change impacting annualized cash flows by $0.5 million - The company's primary market risk is from interest rates on its indebtedness[229](index=229&type=chunk) - As of June 30, 2025, after accounting for interest rate swaps on its **$250.0 million** Term Loans, approximately **$46.0 million** of the company's total **$330.2 million** indebtedness was variable-rate debt[229](index=229&type=chunk) - A hypothetical **1.0%** increase or decrease in the one-month Adjusted Term SOFR would result in an approximate **$0.5 million** decrease or increase in annualized cash flows[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - An evaluation of disclosure controls and procedures, led by the Principal Executive Officer and Principal Financial Officer, concluded that they were effective as of the end of the period covered by the report[232](index=232&type=chunk) - There were no changes in the company's internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[233](index=233&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any litigation expected to materially adversely affect its financial position or operations - Management does not believe that any current or pending litigation will materially affect the company's financial position or operations[235](index=235&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes have occurred from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[236](index=236&type=chunk) [Other Items (Items 2, 3, 4, 5)](index=50&type=section&id=Other%20Items%20(Items%202%2C%203%2C%204%2C%205)) This section reports no unregistered equity sales, no defaults on senior securities, no mine safety disclosures, and no other information - The company reports no unregistered sales of equity securities, defaults upon senior securities, mine safety disclosures, or other information for the period[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) Lists filed exhibits, including the former CFO's transition agreement, officer certifications, and XBRL data files - Exhibits filed with the report include the Transition and General Release Agreement with former CFO Robert Klein, CEO and PFO certifications (Sections 302 and 906), and XBRL data files[241](index=241&type=chunk)

Core Insights - Postal Realty Trust, Inc. has increased its 2025 Adjusted Funds from Operations (AFFO) guidance by $0.04 to a range of $1.24 to $1.26 per diluted share [1][13] - The company acquired 68 properties leased to the USPS for approximately $35.9 million at a weighted average capitalization rate of 7.8% [1][5] - The company raised $12.8 million from its at-the-market (ATM) equity offering program during the second quarter to fund acquisitions [1] Financial Performance - The company reported a 29% growth in revenues from the second quarter of 2024 to the second quarter of 2025, with total revenues of $23.4 million [10] - Net income attributable to common shareholders was $3.6 million, or $0.12 per diluted share [10] - Funds from Operations (FFO) for the quarter were $10.8 million, or $0.35 per diluted share, while Adjusted Funds from Operations (AFFO) were $10.4 million, or $0.33 per diluted share [10][27] Property Portfolio & Acquisitions - The company's owned portfolio was 99.8% occupied, consisting of 1,806 properties across 49 states and one territory, with approximately 6.8 million net leasable interior square feet [4] - The weighted average rental rate for the portfolio was $11.11 per leasable square foot, with $13.24 for last-mile and flex properties and $4.14 for industrial properties [4] - In addition to the 68 properties acquired, the company announced the acquisition of 23 more properties for approximately $8.4 million subsequent to the quarter end [12] Leasing Activity - As of July 18, 2025, the company received 161 fully executed new leases from the USPS for leases expiring in 2025, with a total lump sum catch-up payment of approximately $0.2 million [6] Balance Sheet & Capital Markets - As of June 30, 2025, the company had approximately $2.0 million in cash and property-related reserves, with net debt of approximately $328 million at a weighted average interest rate of 4.51% [7] - 86% of the company's outstanding debt was at fixed rates, and $104 million of its revolving credit facility was undrawn [7] Dividend Announcement - The company announced a quarterly dividend of $0.2425 per share, equating to an annualized rate of $0.97 per share, payable on August 29, 2025 [11]

Core Viewpoint - Postal Realty Trust, Inc. will report its financial results for the period ended June 30, 2025, on August 4, 2025, after market close [1] Group 1: Financial Reporting - The financial results will be discussed in a webcast and conference call on August 5, 2025, at 9:00 A.M. Eastern Time [2] - A telephonic replay of the call will be available from August 5, 2025, at 1:00 P.M. Eastern Time until August 19, 2025, at 11:59 P.M. Eastern Time [3] Group 2: Company Overview - Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 2,150 properties leased primarily to the United States Postal Service [4]

Core Points - Postal Realty Trust, Inc. announced a quarterly dividend of $0.2425 per share, marking a 1.0% increase from the previous quarter's dividend [1] - The dividend is scheduled to be paid on August 29, 2025, to stockholders of record as of July 31, 2025 [1] Company Overview - Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 2,150 properties primarily leased to the United States Postal Service (USPS) [2]