Postal Realty Trust (PSTL) Stock

Postal Realty leads the post office real estate niche with over 1,600 properties, benefiting from high occupancy and low capex. Growth drivers include 3.5% annual rental rate growth, 3%-4% acquisition spreads, and stabilized refinancing costs, projecting 6% AFFO/share growth. PSTL is undervalued at 13X AFFO, with potential for 17X-18X if growth improves to 6%, but faces tenant concentration risk with USPS.

Postal Realty Trust shares continue to offer investors a reliable stream of growing dividend payments. At current trading values, the dividend yields about 6.7%. This is above the yield offered by other low-risk investments. The REIT recently reported positive results that included notable updates regarding lease negotiations with the Postal Service.

Although the revenue and EPS for Postal Realty Trust (PSTL) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Postal Realty Trust (PSTL) came out with quarterly funds from operations (FFO) of $0.30 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to FFO of $0.27 per share a year ago.

- Agreed to New Rents on all 2023 & 2024 Negotiated Leases - - Increased Term Loan Commitments by $50 Million - - Acquired 35 USPS Properties for $13.3 Million at a Weighted Average Capitalization Rate of 7.5% -

Postal Realty Trust offers stable, high occupancy rates due to its focus on mission-critical properties leased to the U.S. Postal Service. Strategic acquisitions and high tenant retention rates support PSTL's long-term growth, despite a slight dip in AFFO per share. At its current valuation, PSTL provides an attractive 6.6% yield with potential for steady returns, making it a solid pick for income-focused investors.

Postal Realty Trust is a net lease REIT focused on USPS properties, with a 6.2 million SF portfolio and growth potential through consolidation. Getty Realty specializes in convenience stores and automotive properties, with a 1,124-property portfolio, strong tenant coverage, and consistent growth. Both PSTL and GTY offer solid dividends, trade at discounts, and are rated as Buy opportunities for potential growth in the net lease REIT sector.

Postal Realty Trust Inc (NYSE:PSTL ) Q2 2024 Results Earnings Conference Call August 6, 2024 4:30 PM ET Company Participants Jordan Cooperstein - Vice President, FP&A, Capital Markets Andrew Spodek - Chief Executive Officer Jeremy Garber - President Robert Klein - Chief Financial Officer Conference Call Participants Eric Borden - BMO Capital Markets Nahom Tesfazghi - JPMorgan Chase & Co. Steven Dumanski - Janney Montgomery Scott Operator Greetings and welcome to the Postal Realty Trust Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.

While the top- and bottom-line numbers for Postal Realty Trust (PSTL) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.