Postal Realty Trust, Inc. Reports Third Quarter 2025 Results

Core Insights - The company increased its 2025 Adjusted Funds from Operations (AFFO) guidance by $0.06 to a range of $1.30 to $1.32 per diluted share [1][16] - The company amended, extended, and expanded its unsecured credit facilities to $440 million [1][10] - The U.S. Postal Service operations remain unaffected by the government shutdown [1] - The company acquired 47 USPS properties for $42.3 million at a weighted average capitalization rate of 7.7% [1][5] - The company raised $26.0 million from its ATM program during Q3 to fund acquisitions [1] Financial Performance - The company reported a 24% growth in revenues from Q3 2024 to Q3 2025 [8] - Net income attributable to common shareholders was $3.8 million, or $0.13 per diluted share [8] - Funds from Operations (FFO) for the quarter were $11.0 million, or $0.34 per diluted share [8] - Adjusted Funds from Operations (AFFO) were $10.8 million, or $0.33 per diluted share [8] Property Portfolio & Acquisitions - The company's owned portfolio was 99.8% occupied, consisting of 1,853 properties across 49 states and one territory, with approximately 6.9 million net leasable interior square feet [4] - The weighted average rental rate was $11.62 per leasable square foot, with $13.81 for last-mile and flex properties, and $4.23 for industrial properties [4] - The company acquired 47 last-mile and flex properties leased to the USPS for $42.3 million, with a weighted average rental rate of $21.59 per leasable square foot [5] Leasing Activity - As of October 17, 2025, the company executed 196 new leases with the USPS for leases that expired or were scheduled to expire in 2025 [6] - The total lump sum catch-up payment received from the USPS was approximately $0.3 million for leases executed during Q3 2025 [6] Balance Sheet & Capital Markets - The company closed on the recast of its credit facilities, expanding commitments to $440 million and extending maturity dates [7][10] - As of September 30, 2025, the company had approximately $2.3 million in cash and property-related reserves, and approximately $347 million in net debt with a weighted average interest rate of 4.37% [12] - 93% of the company's outstanding debt was set to fixed rates, and $125 million of the revolving credit facility was undrawn [12] Dividend Announcement - The company announced a quarterly dividend of $0.2425 per share, equating to $0.97 per share on an annualized basis, to be paid on November 28, 2025 [14]