CEDARHURST, N.Y., July 21, 2025 (GLOBE NEWSWIRE) -- Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 2,150 properties leased primarily to the United States Postal Service (the “USPS”), ranging from last-mile post offices to industrial facilities, announced today that its board of directors has approved a quarterly dividend on the Company’s Class A common stock in the amount of $0.2425 per share. This represents a 1.0% incre ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Postal Realty Trust (PSTL) - PSTL currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3][4] - The stock has shown a price increase of 0.53% over the past week, outperforming the Zacks REIT and Equity Trust - Other industry, which increased by 0.19% [6] - Over the past month, PSTL's price has risen by 14.69%, significantly higher than the industry's 3.99% performance [6] - In the last quarter, PSTL shares increased by 7.26%, and over the past year, they gained 14.51%, while the S&P 500 only moved 5.61% and 10.35%, respectively [7] Trading Volume - PSTL's average 20-day trading volume is 155,997 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, three earnings estimates for PSTL have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.16 to $1.22 [10] - For the next fiscal year, three estimates have also moved upwards without any downward revisions [10] Conclusion - Considering the positive price trends, strong earnings outlook, and favorable momentum score, PSTL is positioned as a strong buy candidate for investors seeking short-term gains [12]

Core Points - Postal Realty Trust, Inc. announced the resignation of Chief Financial Officer Robert Klein, who will transition to a position with a privately-held real estate company [1] - Jeremy Garber, the Company's President, Treasurer, and Secretary, will serve as the interim Chief Financial Officer during the search for a permanent successor [1][2] - Klein will assist in the transition process and remain engaged with the Company for the second quarter close and earnings announcement [4][5] Company Background - 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 [7] - The properties range from last-mile post offices to industrial facilities [1] Leadership Transition - Andrew Spodek, the Chief Executive Officer, expressed gratitude for Klein's contributions, including building a strong accounting and finance team and developing robust financial reporting processes [3] - Garber has been with the Company since its founding and played a key role in preparing the Company for public markets [2]

Postal Realty Trust (PSTL) FY Conference June 11, 2025 01:20 PM ET Speaker0 Afternoon everyone. Jeff Elly with Three Part Advisors. Thank you all for joining us. Next presenting company today is Postal Realty. PSTL is the ticker. Here with us today from the company we have Andrew Spodik, CEO Jeremy Garber, President and Jordan Cooperstein, VP of FP and A and Capital Markets. Always forget that part. Anyway, so Postal Realty is a IR client of ours. So if anyone would like a follow-up meeting or call, please ...

Core Viewpoint - Postal Realty Trust (PSTL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates can significantly influence stock valuations [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance Indicators - Postal Realty Trust is projected to earn $1.22 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 5.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Postal Realty Trust has risen by 11.4%, indicating a positive trend in earnings expectations [8]. Zacks Rating System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Postal Realty Trust to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

Summary of Postal Realty Trust (PSTL) 2025 Conference Call Company Overview - **Company**: Postal Realty Trust (PSTL) - **Industry**: Real Estate Investment Trust (REIT) - **IPO Date**: June 2019 - **Current Portfolio**: Over 1,750 properties - **Earnings Growth**: 3% since IPO - **Dividend Yield**: Approximately 7% - **Cap Rate**: Implied cap rate around 8.5% to 8.6% - **Liquidity Position**: Strong [2][12][52] Core Insights and Arguments - **Market Size**: The Postal Service leases approximately 25,000 facilities, paying around $1.6 billion in rent, which constitutes only 1.5% of their operating expenses. This indicates a significant market potential estimated at $12 to $15 billion [9][11]. - **Retention Rate**: The company has maintained a 99% retention rate over the past decade, countering the misconception that the Postal Service vacates its buildings [6][25]. - **Lease Structure**: The company has introduced annual rent escalations and secured ten-year leases, enhancing cash flow security and lease roll management [17][18]. - **Same Store NOI Guidance**: The company provided guidance for same store NOI growth of 4% to 6%, driven by mark-to-market rent opportunities and annual rent escalations [19][20][22]. - **Historical Growth**: The company has shown consistent internal growth rates over the past three years: 2.2%, 5.5%, and 4.4% [23]. Additional Important Points - **Market Fragmentation**: The market for postal facilities is highly fragmented, with about 17,000 owners, many of whom are aging and may sell their properties [10][25]. - **Post Office as Critical Infrastructure**: The Postal Service is recognized as critical infrastructure, with a constitutional obligation to provide universal service, which supports the stability of the company's tenant [28][30]. - **Acquisition Strategy**: The company focuses on acquiring last-mile and flex facilities, typically at or below replacement cost, with an average purchase price around $160 per square foot [35][36]. - **Insider Ownership**: High insider ownership aligns management interests with shareholders, as compensation is primarily in equity [63][65]. - **Dividend Policy**: The company has consistently increased its dividend since going public, with a payout ratio around 80% of AFFO, indicating a healthy dividend coverage [52][54]. Market Dynamics - **Transaction Market**: There has been an uptick in seller conversations post-election, with a shift towards smaller portfolios or single assets due to rising interest rates [50][51]. - **Valuation Potential**: The company's NAV is estimated to be over $18, while trading around $14, suggesting significant room for multiple expansion [56][62]. This summary encapsulates the key points discussed during the Postal Realty Trust conference call, highlighting the company's performance, market position, and strategic outlook.

Core Viewpoint - Postal Realty Trust, Inc. is actively engaging with the investment community by presenting at the Nareit's REITweek: 2025 Investor Conference, highlighting its focus on properties leased to the USPS [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 [2] Event Details - The presentation at the Nareit's REITweek: 2025 Investor Conference is scheduled for June 4, 2025, at 11:00 AM ET, with a live audio webcast available on the company's website [1] - The conference will take place from June 2 to June 4, 2025, during which the company will also hold meetings with the investment community [1]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $0.28 and adjusted funds from operations (AFFO) of $0.32 per diluted share for Q1 2025, with a projected AFFO of $0.02 per share due to contractual rent escalations in 2025 [15][16] - The weighted average interest rate on outstanding debt was 4.4%, with a net debt to annualized adjusted EBITDA ratio remaining flat at 5.2 times [15][16] Business Line Data and Key Metrics Changes - The company acquired 36 properties for approximately $16 million at a 7.6% weighted average cap rate, adding about 100,000 net leasable square feet to the portfolio [14] - 32% of the portfolio will have ten-year lease durations, and 56% will contain annual rent escalations once all leases for 2025 and 2026 are executed [13] Market Data and Key Metrics Changes - The company anticipates acquisition volume for the year to be between $80 million and $90 million, maintaining a targeted cap rate of 7.5% or above [8][9] - The company has seen a strong acquisition pipeline and active dialogue with property owners, with 75% of acquisitions sourced off-market [10][9] Company Strategy and Development Direction - The company is focused on enhancing internal growth through efficient lease management and has established a programmatic approach with the Postal Service to secure leases ahead of expiration [5][6] - The company aims to strengthen its position as a market leader in postal real estate by acquiring new assets and improving cash flow [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of their properties to the Postal Service's mission and the visibility of cash flows, despite ongoing discussions regarding the Postal Service's budget and operations [11][20] - The company remains optimistic about future opportunities arising from potential changes in the Postal Service's operational focus [23] Other Important Information - The company raised approximately $3 million in equity through an ATM offering program and continues to prioritize decreasing cash G&A as a percentage of revenue [16][17] - A quarterly dividend of $0.02 per share was approved, representing a 1% increase from the previous year [17] Q&A Session Summary Question: Can you provide the gap in cash leasing spreads on the '25 lease renewals? - Management noted that they historically do not provide leasing spreads but have been sharing same-store numbers [19] Question: Can you elaborate on the productive conversations in Washington DC regarding DOGE and USPS support? - Management indicated that while they monitor developments, there has been no material change regarding the Postal Service and DOGE, and they continue to work efficiently with the leasing department [20][22] Question: What percentage of the overall portfolio is expected to have annual rent escalations by year-end? - Management clarified that 56% of the portfolio will contain rent escalations once all leases are executed [27] Question: What are the current cap rates in the marketplace? - Management stated that cap rates have remained steady, with expectations to close the year at or above a 7.5% capitalization rate [32] Question: Are external economic factors affecting acquisition volume? - Management confirmed that external factors like tariffs do not significantly impact acquisition volume, as sellers are motivated by various reasons [33] Question: How is the company underwriting properties in light of potential government reductions in real estate footprint? - Management emphasized the importance of acquiring properties that are critical to the Postal Service's operations, maintaining a high retention rate [35]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $0.28 and adjusted funds from operations (AFFO) of $0.32 per diluted share for Q1 2025 [12] - The annual AFFO guidance remains on track to achieve between $1.20 and $1.22 per share [6] - The weighted average interest rate on outstanding debt is 4.4% with a weighted average maturity of three years [13] Business Line Data and Key Metrics Changes - Occupancy rate is at 99.8%, with significant visibility into future leasing [4] - 32% of the portfolio will have ten-year lease durations, and 56% will contain annual rent escalations once all leases for 2025 and 2026 are executed [10] - In Q1 2025, the company acquired 36 properties for approximately $16 million at a 7.6% weighted average cap rate [11] Market Data and Key Metrics Changes - The company anticipates acquisition volume for the year to be between $80 million and $90 million, maintaining a targeted cap rate of 7.5% or above [6] - Cap rates have remained stable, with Q1 closing at 7.6% [28] Company Strategy and Development Direction - The company is focused on a multi-tiered programmatic approach with the Postal Service to enhance leasing efficiency and drive internal growth [5] - The strategy includes acquiring properties using operating partnership units, which has resulted in 11% of acquisitions since IPO being completed with these units [8] - The company aims to strengthen its position as a market leader in postal real estate by acquiring new assets and improving cash flow [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of their properties to the Postal Service's mission and the visibility of cash flows [9] - There is ongoing dialogue with Congress regarding the Postal Service, but no material updates have been shared [18][20] - The company remains optimistic about future opportunities arising from potential changes in the Postal Service's budget and efficiency [20] Other Important Information - The company raised approximately $3 million in equity through an ATM offering program [14] - The Board of Directors approved a quarterly dividend of $0.02 per share, representing a 1% increase from the previous year [15] Q&A Session Summary Question: Can you provide the gap in cash leasing spreads on the '25 lease renewals? - Management stated they historically do not provide leasing spreads but have been sharing same-store numbers [17] Question: Can you elaborate on the productive conversations in Washington DC regarding DOGE and USPS? - Management indicated that they are monitoring developments but noted that there have been no significant updates [18][19] Question: What is the potential figure for the overall portfolio to have annual increases by year-end? - Management clarified that 56% of the portfolio will contain rent escalations once all leases are executed [24] Question: What cap rates are being observed in the marketplace currently? - Management noted that cap rates have remained stable, with expectations to close the year at or above 7.5% [28] Question: How is the company underwriting properties in light of potential government reductions in real estate footprint? - Management emphasized the importance of acquiring properties that are critical to the Postal Service's operations [32] Question: What percentage of acquisitions were funded with OP units in 2024? - Management indicated that on average, 10-15% of deal flow involves OP units, depending on various factors [40]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $0.28 and adjusted funds from operations (AFFO) of $0.32 per diluted share for Q1 2025, with projections indicating an increase of $0.02 in AFFO per share due to contractual rent escalations [12][6][10] - The weighted average interest rate on outstanding debt was 4.4%, with a weighted average maturity of three years, and net debt to annualized adjusted EBITDA remained flat at 5.2 times [12][13] Business Line Data and Key Metrics Changes - The company achieved an occupancy rate of 99.8% and has visibility into leasing for 2025 and 2026, with 32% of the portfolio expected to have ten-year lease durations and 56% containing annual rent escalations [4][10] - In Q1 2025, the company acquired 36 properties for approximately $16 million at a 7.6% weighted average cap rate, adding about 100,000 net leasable square feet to the portfolio [11][6] Market Data and Key Metrics Changes - The company anticipates acquisition volume for the year to be between $80 million and $90 million, maintaining a targeted cap rate of 7.5% or above [6][30] - The company noted that cap rates have remained stable, closing Q1 at 7.6%, and expects this trend to continue [30] Company Strategy and Development Direction - The company is focused on acquiring new assets and improving cash flow, with a strong emphasis on maintaining low leverage and minimizing exposure to variable rate debt [12][15] - The company is actively engaging with postal service stakeholders and Congress to ensure the value of its properties to the Postal Service's mission [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of their properties and the security of cash flows, emphasizing the critical nature of their facilities to the Postal Service's operations [9][34] - The company is optimistic about its acquisition pipeline and the potential for increased deal flow, particularly in light of the upcoming election [32][33] Other Important Information - The company raised approximately $3 million in equity through an ATM offering program, issuing nearly 140,000 shares at an average price of $14.2 per share [13][14] - A quarterly dividend of $0.02 per share was approved, representing a 1% increase from the previous year [15] Q&A Session Summary Question: Can you provide the gap in cash leasing spreads on the '25 lease renewals? - Management stated they historically do not provide leasing spreads but have been sharing same-store numbers [17] Question: Can you elaborate on the productive conversations in Washington DC regarding DOGE and USPS support? - Management indicated that while they monitor developments, there has been no material news regarding DOGE and the Postal Service [18][19] Question: What is the potential figure for overall portfolio rent escalations by year-end? - Management clarified that 56% of the portfolio will contain rent escalations once all leases are executed [25] Question: What are the current cap rates in the marketplace? - Management noted that cap rates have remained stable, with Q1 closing at 7.6% [30] Question: Are external economic factors affecting acquisition volume? - Management confirmed that external factors like tariffs do not significantly impact sellers' decisions [32] Question: How is the company underwriting properties in light of potential government reductions in real estate footprint? - Management emphasized the importance of acquiring properties that are critical to the Postal Service's operations [34]