CEDARHURST, N.Y., Dec. 02, 2025 (GLOBE NEWSWIRE) -- Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 2,200 properties leased primarily to the United States Postal Service (the “USPS”), ranging from last-mile post offices to industrial facilities, announced today that Andrew Spodek, Chief Executive Officer, and Postal Realty management will present at the NobleCon 21 Conference at Florida Atlantic University, Executive Educa ...

Summary of Postal Realty Trust (NYSE:PSTL) FY Conference Call Company Overview - **Company**: Postal Realty Trust (PSTL) - **CEO**: Andrew Spodek - **Industry**: Real Estate Investment Trust (REIT) focused on properties leased to the U.S. Postal Service Key Points and Arguments 1. **Business Model**: Postal Realty Trust focuses on acquiring and managing properties leased to the U.S. Postal Service, which has a strong track record of timely rent payments, maintaining a 100% collection rate regardless of economic conditions [3][22] 2. **Portfolio Size**: The company operates nearly 2,000 properties across 49 states, with an enterprise value of approximately $900 million [9] 3. **Market Context**: There are about 32,000 postal properties in the U.S., with the Postal Service leasing 23,000 of them. The market for these assets is estimated to be between $12 billion and $15 billion [5] 4. **Retention Rate**: The company has maintained a 99% retention rate for its properties over the past decade, indicating stability in its tenant relationships [3][18] 5. **Acquisition Strategy**: The company aims to acquire properties at a cap rate of 7.5% and has set a target of $110 million in acquisitions for the year [9][10] 6. **Growth Metrics**: Postal Realty Trust projects Same Store NOI growth of 8.5%-9.5% and earnings growth of 12%-13% year-over-year [10] 7. **Lease Structure**: 53% of the leases have annual escalations, with 3% increases, and 37-38% of the portfolio has 10-year lease terms [11][27] 8. **Debt Management**: The company maintains a conservative approach to leverage, aiming to stay below 5.5 times debt-to-EBITDA, while balancing debt and equity [29][30] Additional Insights 1. **Unique Position**: Postal Realty Trust is the only public company focused on postal properties, owning approximately 8%-9% of the market, while the next 20 largest owners collectively hold about 12% [13][25] 2. **Off-Market Deals**: 75% of the company's acquisitions are off-market, highlighting its strong reputation and relationships within the industry [16] 3. **Investment in Infrastructure**: The company views its investments as critical to the logistics network of the U.S., emphasizing the importance of postal properties in the last-mile delivery market [20][21] 4. **Tax Benefits**: The company offers sellers the opportunity to exchange properties for operating partnership units, providing tax-deferred benefits [7] 5. **Banking Relationships**: Postal Realty Trust has established strong banking relationships with major institutions, which supports its financing needs [24] This summary encapsulates the key aspects of Postal Realty Trust's business model, market position, growth strategies, and financial management as discussed in the conference call.

Buy Thesis - Postal Realty (PSTL) is significantly undervalued compared to its growth rate and business model cleanliness, with a warranted AFFO multiple of 18X, suggesting a potential stock price increase of about 50% from the current $15.36 to $23.58 [1][38] Valuation Multiples - As of November 6, 2025, PSTL is trading at various valuation multiples: P/LTM FFO at 12.00, P/NTM FFO at 12.13, P/LTM AFFO at 11.46, and P/NAV at 75.96%, indicating it is trading well below the value of its underlying properties [3][4] - An 11X forward AFFO multiple is typical for REITs facing low growth, high risk, or high debt, none of which apply to Postal Realty, which has shown over 8% annual AFFO/share growth since 2021 [4][7] Market Obscurity - PSTL's low trading multiple is attributed to its obscurity, with a market float of just under $400 million and being the only publicly traded company in its niche of post office leasing [7][8] - The lack of public peers and predecessors has resulted in limited analytical coverage, making it difficult for larger institutions to invest [9][10] Business Model and Growth - Postal Realty has a dominant market share in post office real estate, controlling over 10% of the total addressable market (TAM) [13] - The company has improved its lease negotiation process, resulting in predictable long-term revenue growth with new leases offering 10-year terms and 3% annual rent escalations [21] - PSTL has maintained 100% rent collection and consistent rental income growth despite concerns over government restructuring and budget cuts [22] Acquisition Strategy - In 2025, PSTL successfully sourced over $100 million in acquisitions, demonstrating a robust pipeline for growth [23][25] - The company has a blended cost of capital between 6% and 7%, allowing for healthy acquisition spreads [31] Financial Metrics - PSTL's AFFO/share growth rate is approximately 8% annually, supported by 3% escalators on new leases and strong acquisition performance [26][27] - The company maintains a clean balance sheet with a debt to EBITDA ratio of 5.2X and a fixed charge coverage ratio of 4.2X, indicating favorable financial health [27][36] Summary of Business Strengths - The combination of a strong business model, clean balance sheet, and high growth potential justifies a higher AFFO multiple of about 18X, with an estimated fair value of $23.58 for 2025 AFFO [38]

Company Overview - Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 2,200 properties leased primarily to the United States Postal Service (USPS) [3] Upcoming Events - The Company will present at the Jefferies Real Estate Conference in Miami, FL on November 18, 2025, at 9:30 AM Eastern Time, and will host meetings with the investment community during the conference [1] - Additionally, the Company will present at the 2025 Southwest IDEAS Conference in Dallas, TX on November 19, 2025, at 4:00 PM Central Time, with a live webcast available on the Company's website [2]

Group 1 - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The analyst has researched more than 1000 companies, focusing on metals and mining stocks, as well as other industries like consumer discretionary, REITs, and utilities [1] - The analyst transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on numerous companies has been conducted [1] Group 2 - No stock or derivative positions are held in the companies mentioned, but there is a potential for initiating a long position in PSTL within the next 72 hours [2] - The article expresses the analyst's own opinions and is not influenced by compensation from any company mentioned [2]

Financial Data and Key Metrics Changes - The company reported AFFO of $0.33 per share, representing a growth of 10% compared to the previous year [5][12] - The 2025 AFFO guidance was increased by $0.06, implying an annual growth of 13% at the midpoint [5][12] - The net debt to annualized adjusted EBITDA ratio was 5.2 times, with fixed-rate debt comprising 93% of borrowings [15] Business Line Data and Key Metrics Changes - The company updated its 2025 same-store cash NOI guidance to a range of 8.5%-9.5%, up from the previous guidance of 7%-9% [7] - The company completed $42.3 million in acquisitions at a weighted average cash cap rate of 7.7% during the quarter [7][19] Market Data and Key Metrics Changes - The company acquired 47 properties for approximately $42.3 million, adding about 160,000 net leasable interior square feet to its portfolio, a 2.3% expansion [19] - The company has a significant market presence, owning about 80% of the postal real estate market [48] Company Strategy and Development Direction - The company focuses on three pillars: driving organic growth through leasing, executing postal property acquisitions, and deepening access to capital [4] - The company aims to deliver increasing value to the U.S. Postal Service and drive consistent organic growth for shareholders [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of properties to the Postal Service's mission and the visibility of cash flows [52] - The company anticipates continued strong internal growth while consolidating the highly fragmented industry [52] Other Important Information - The company announced a quarterly dividend of $0.2425 per share, representing a 1% increase from the previous year [16] - The company holds ample liquidity with $125 million of undrawn revolver capacity [15] Q&A Session Summary Question: Details on the Newtonville, Massachusetts acquisition - The acquisition was unique and off-market, providing immediate accretion due to favorable cost of capital [24] Question: Expectations for acquisitions for the remainder of the year - The company views the acquisition guidance as a meet or exceed target, not a slowdown, with timing being a key factor [30] Question: Trajectory of cap rates looking into 2026 - Cap rates do not trade in lockstep with the 10-year rates, and the company aims for cap rates of 7.5% or better [39] Question: Competitors acquiring properties leased to USPS - The company remains the largest owner in the postal real estate space, owning about 80% of the market [48]

Key Management Andrew Spodek Chief Executive Officer Jeremy Garber President, Treasurer & Secretary Steve Bakke Chief Financial Officer Board of Directors Board Responsibilities Patrick Donahoe Chair of the Board, Member - Audit Committee Andrew Spodek Chief Executive Officer, Director Barry Lefkowitz Chair of Audit Committee, Member - Corporate Governance & Compensation Committee Anton Feingold Chair of Corporate Governance & Compensation Committee, Member - Audit Committee Jane Gural-Senders Member - Corp ...

Core Insights - Postal Realty Trust (PSTL) reported a revenue of $24.33 million for the quarter ended September 2025, marking a year-over-year increase of 23.7% and exceeding the Zacks Consensus Estimate by 0.8% [1] - The earnings per share (EPS) for the same period was $0.33, compared to $0.03 a year ago, representing a surprise of 6.45% over the consensus estimate of $0.31 [1] Revenue Breakdown - Rental income was reported at $23.69 million, surpassing the three-analyst average estimate of $23.43 million, with a year-over-year change of 26.2% [4] - Fee and other revenues were $0.63 million, slightly below the estimated $0.7 million, reflecting a year-over-year decline of 29.2% [4] Stock Performance - Over the past month, shares of Postal Realty Trust have returned -1%, while the Zacks S&P 500 composite has increased by 2.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

分组1 - Postal Realty Trust (PSTL) reported quarterly funds from operations (FFO) of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and showing an increase from $0.30 per share a year ago, resulting in an FFO surprise of +6.45% [1] - The company achieved revenues of $24.33 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.80%, and up from $19.67 million in the same quarter last year [2] - Postal Realty Trust has consistently outperformed consensus FFO and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 13.6% since the beginning of the year, while the S&P 500 has increased by 16.5% [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 [3][4] - The current consensus FFO estimate for the upcoming quarter is $0.31 on revenues of $24.56 million, and for the current fiscal year, it is $1.26 on revenues of $94.19 million [7] 分组3 - The Zacks Industry Rank places the REIT and Equity Trust - Other sector in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5][6]

Acquisition and Portfolio - As of September 30, 2025, the company acquired 151 properties leased to the USPS for approximately $96.6 million, increasing its portfolio to 1,853 properties [155]. - The company has acquired 19 properties for an aggregate amount of approximately $7.2 million since September 30, 2025 [218]. Financial Performance - Rental income increased by $4.9 million to $23.7 million for the three months ended September 30, 2025, representing a 26.2% increase compared to $18.8 million for the same period in 2024 [178]. - Total revenues for the three months ended September 30, 2025, were $24.3 million, up $4.7 million or 23.7% from $19.7 million in the prior year [178]. - Income from operations rose by $4.4 million to $9.1 million for the three months ended September 30, 2025, reflecting a 91.1% increase from $4.8 million in 2024 [178]. - Net income for the three months ended September 30, 2025, was $4.9 million, a significant increase of $3.5 million or 262.0% from $1.3 million in the same period last year [178]. - For the nine months ended September 30, 2025, rental income increased by $15.2 million to $67.9 million, a 28.7% increase from $52.7 million in 2024 [187]. - Total revenues for the nine months ended September 30, 2025, were $69.8 million, up $14.8 million or 26.9% from $55.0 million in the prior year [187]. - Income before income tax expense for the nine months ended September 30, 2025, was $12.2 million, a 351.5% increase from $2.7 million in 2024 [187]. Expenses and Indebtedness - Total interest expense, net for the three months ended September 30, 2025, was $4.3 million, an increase of $0.8 million or 24.6% from $3.4 million in 2024 [186]. - General and administrative expenses increased by $0.9 million to $13.0 million for the nine months ended September 30, 2025, primarily due to increased public-company related costs [192]. - Real estate taxes increased by $1.1 million to $8.3 million for the nine months ended September 30, 2025, primarily due to the volume of acquisitions [190]. - Depreciation and amortization expense increased by $1.1 million to $17.6 million for the nine months ended September 30, 2025, compared to $16.6 million for the same period in 2024 [194]. - Total interest expense, net increased to $11.9 million for the nine months ended September 30, 2025, from $9.3 million for the same period in 2024, primarily due to additional borrowings [195]. - As of September 30, 2025, the company had approximately $349.2 million of outstanding consolidated principal indebtedness [211]. - The company’s total indebtedness includes a $150.0 million senior unsecured revolving credit facility and a $290.0 million term loan facility [172]. Cash Flow and Financing Activities - Net cash provided by operating activities increased by $8.9 million to $33.2 million for the nine months ended September 30, 2025, compared to $24.3 million for the same period in 2024 [197]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $89.6 million for acquisitions, compared to $53.2 million for the same period in 2024 [198]. - Net cash provided by financing activities increased by $30.2 million to $60.4 million for the nine months ended September 30, 2025, compared to $30.2 million for the same period in 2024 [199]. - The company paid cash dividends of $0.7275 per share for the nine months ended September 30, 2025 [214]. Tax and Regulatory Considerations - The company intends to continue qualifying as a REIT, which generally exempts it from federal income tax as long as it distributes taxable income to stockholders [163]. - New U.S. tax legislation effective July 4, 2025, includes a permanent extension of the 20% deduction for qualified REIT dividends for individuals [164]. Market and Operational Risks - The company is dependent on the USPS' financial stability, which is currently threatened by various operational and financial challenges [165]. - Approximately 10.4% of total rental income for the nine months ended September 30, 2025, was concentrated in Pennsylvania [161]. Lease and Property Management - The average remaining lease term for properties leased to tenants is approximately 4.0 years as of September 30, 2025 [166]. - The company operates primarily through modified double-net leases, where tenants are responsible for utilities and certain maintenance obligations [167]. Interest Rate Management - The company manages market risk on variable-rate debt through interest rate swaps, aiming to reduce floating rate exposure [221]. - If the one-month Adjusted Term SOFR were to change by 1.0%, the company's cash flows would be affected by approximately $0.25 million on an annualized basis [220]. - The fixed interest rate on one loan is 3.69% for the first five years, adjusting thereafter based on the Five-Year Treasury Rate plus a margin of 2.75% [4]. - A loan secured by an industrial property has a fixed interest rate of 2.80% with interest-only payments for the first five years [7]. - The company obtained seller financing of $1.4 million for the acquisition of two properties at a fixed interest rate of 5.00% [8]. - The company has a minimum annual interest rate of 2.75% on certain loans, regardless of market conditions [4]. - The company may use derivative instruments like interest cap agreements in the future to manage interest rate volatility [221]. Capital Projects - The company is currently undertaking capital improvement projects expected to cost between $0.8 million and $1.6 million, with a portion offset by insurance proceeds of $0.4 million received in October 2025 [210].