Core Insights - Postal Realty Trust (PSTL) reported a revenue of $23.35 million for the quarter ended June 2025, marking a 29.4% increase year-over-year [1] - The earnings per share (EPS) was $0.33, significantly up from $0.02 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $22.49 million by 3.84%, while the EPS also surpassed the consensus estimate of $0.30 by 10% [1] Revenue Breakdown - Total revenues from rental income were $22.73 million, exceeding the average estimate of $21.78 million from three analysts, reflecting a year-over-year increase of 30.9% [4] - Fee and other revenues were reported at $0.62 million, which was below the average estimate of $0.67 million, indicating a year-over-year decline of 9.5% [4] Financial Performance Metrics - The diluted net income per share was reported at $0.12, compared to the estimated $0.07 from three analysts [4] - Over the past month, shares of Postal Realty Trust have returned -8.7%, contrasting with the Zacks S&P 500 composite's increase of 0.6% [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 $0.30 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]

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]

Summary of Postal Realty Trust (PSTL) FY Conference Call - June 11, 2025 Company Overview - **Company**: Postal Realty Trust (PSTL) - **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 specializes in owning postal facilities, with a historical retention rate of 99% over the past decade, demonstrating strong tenant reliability [4][5][9] 2. **Market Size**: The postal service pays approximately $1.6 billion in rent, which constitutes only 1.5% of its total expenses, indicating a significant market potential estimated at $12 to $15 billion [7][9] 3. **Ownership Structure**: Postal Realty is the largest owner of postal service-leased properties, holding 7% of the market, while the next 20 largest owners collectively hold only 11% [9][10] 4. **Investment Strategy**: The company focuses on acquiring properties through an UPREIT structure, allowing property owners to defer capital gains taxes by exchanging their properties for operating partnership units [11][12] 5. **Deal Flow**: Approximately 75% of the company's acquisitions are off-market, facilitated by its reputation and the unique currency of operating partnership units [14][15] 6. **Growth Metrics**: Since going public, the company has increased its portfolio by over seven times, with a current count of nearly 1,800 properties [16] 7. **Lease Structure**: Postal Realty has been able to negotiate leases with annual escalations of 3%, contrasting with the average five-year fixed leases held by other owners [17][18] 8. **Property Types**: The company primarily invests in flex and last-mile facilities, which are more affordable compared to other commercial properties, averaging around $160 per square foot [24][25] 9. **Market Dynamics**: The postal service has a virtual monopoly on last-mile delivery, servicing 169 million delivery points, making it a critical infrastructure investment [28][29] 10. **Future Opportunities**: There is potential for the postal service to engage in sale-leaseback transactions for its owned properties, which could benefit Postal Realty [44][45] Additional Important Insights 1. **Maintenance and Upgrades**: Most postal facilities require upgrades, which could become a profit center for Postal Realty as it manages these properties [36] 2. **Owner Demographics**: Many property owners are older individuals looking to liquidate their assets due to life events or estate planning, creating opportunities for acquisition [39][42] 3. **Geographic Focus**: The company’s properties are predominantly located east of the Mississippi River, aligning with the historical rollout of the postal service network [44] 4. **Financial Management**: The company maintains a fixed-rate debt portfolio, with an average debt rate under 5%, while new debt is being taken on at rates between 5.5% and 6% [79] 5. **Market Conditions**: The company has adapted its acquisition strategy in response to rising interest rates, focusing on smaller portfolios and single buildings to maintain control over cap rates [72][73] This summary encapsulates the key insights and strategic direction of Postal Realty Trust as discussed in the conference call, highlighting its unique position within the postal service real estate market and its growth potential.