Postal Realty Trust Provides 2024 Update

Postal Realty Trust, Inc. recently released its quarterly update, shedding light on its portfolio, acquisitions, and financial standing. The report covers the period ended December 31, 2024, offering insights into its current operations and future prospects.

According to the report, the real estate investment trust acquired a substantial number of properties leased to the United States Postal Service (USPS) throughout 2024. The acquisitions, totaling 197 properties with a value of approximately $91 million, reflect a strategic expansion of the company’s portfolio. These properties cover around 571,000 net leasable interior square feet, maintaining a weighted average capitalization rate of around 7.6%.

Furthermore, Postal Realty Trust highlighted its commitment to leasing activities, emphasizing the signing of new leases with the USPS. By the end of December 31, 2024, the company secured agreements for 88 fully executed leases representing a significant portion of the 2023 and 2024 expired rents. Notably, these leases include 3% annual rent escalations and consist of a blend of five and ten-year terms.

Andrew Spodek, the Chief Executive Officer of Postal Realty Trust, expressed confidence in the company’s performance, citing a commendable 99% retention rate with the USPS over the past decade. Despite industry challenges, the company’s leasing progress underscores the Postal Service’s essential role in the logistics network, ensuring the stability of Postal Realty Trust’s portfolio.

Looking specifically at the final quarter of 2024, Postal Realty Trust acquired 63 properties for approximately $30.7 million, further diversifying its holdings in the USPS leasing sector. The properties, comprising around 176,000 net leasable interior square feet, were obtained at a weighted average capitalization rate of approximately 7.5%.

The company’s operations reflected strong occupancy rates, with 99.6% of owned properties occupied across 49 states and one territory. The average rental rate stood at $10.60 per occupied leasable square foot as of December 31, 2024, showing the company’s robust market positioning.

Additionally, Postal Realty Trust provided an update on its financial structure, highlighting a strategic draw of $10.0 million on a term loan held till February 2028. The move was complemented by an interest rate swap, setting the interest rate at 5.55% until the loan’s maturity. Moreover, the company emphasized a substantial portion of its outstanding debt fixed at attractive rates, coupled with a healthy undrawn credit facility of $136 million.

The information disclosed under Item 2.02 and Exhibit 99.1 provides valuable insights into Postal Realty Trust’s performance, strategic acquisitions, and future growth prospects. Investors and stakeholders keen on the company’s real estate investments and leasing activities will find this report instrumental in understanding its market position and trajectory moving forward. The company’s proactive approach to lease agreements, property acquisitions, and financial management underscores its resilience and strategic direction in the real estate sector.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Postal Realty Trust’s 8K filing here.

Postal Realty Trust Company Profile

Postal Realty Trust, Inc (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions.