Core Viewpoint - Postal Realty Trust (PSTL) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Postal Realty Trust reflects a positive outlook on its earnings, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to calculate the fair value of stocks, leading to significant price movements based on their buying or selling actions [5]. Recent Performance of Postal Realty Trust - For the fiscal year ending December 2025, Postal Realty Trust is projected to earn $1.30 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 6.9% over the past three months [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Postal Realty Trust to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11].

Group 1 - Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 2,200 properties primarily leased to the United States Postal Service (USPS) [3] - The company will present at the NobleCon 21 Conference on December 3, 2025, at 1:30 PM Eastern Time, with a high-definition video webcast available the following day [1] - Postal Realty management will also participate in meetings with the investment community during the NobleCon conference [1] Group 2 - The company will participate in Nareit's REITworld: 2025 Annual Conference in Dallas, TX on December 9 and 10, 2025, and will host meetings with the investment community during this event [2] - More information about Postal Realty Trust can be found on their website [3]

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]