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Postal Realty Trust recorded a strong performance in its third quarter, driven by its strategic acquisitions and efficient leasing programmes with the United States Postal Service (USPS). The company�s revenue rose by 24% year-on-year, supported by the purchase of 47 USPS properties worth USD 42.3 million at a 7.7% capitalisation rate. Additionally, the firm expanded its unsecured credit facilities to USD 440 million and raised USD 26 million through its ATM programme to fund acquisitions.
Postal Realty Trust reported a 24% year-on-year increase in its third-quarter revenue, attributing the growth to programme-based leasing with the USPS and improved operational efficiencies. The company expanded its unsecured credit facilities to USD 440 million, further strengthening its financial flexibility. Advertisement
During the quarter, the trust acquired 47 USPS properties for a total of USD 42.3 million at a 7.7% capitalisation rate, contributing significantly to its rental income. Its third-quarter rental income stood at USD 23.69 million, while net income reached USD 4.88 million. Income from operations was USD 9.14 million, and funds from operations (FFO) totalled USD 11 million.
The company also raised USD 26 million through its at-the-market (ATM) programme to support property acquisitions. In its latest outlook, Postal Realty Trust increased its 2025 adjusted funds from operations (AFFO) guidance to between USD 1.30 and USD 1.32 per diluted share, indicating confidence in its growth trajectory. It also stated that USPS operations remained unaffected by the recent government shutdown.
Analysts maintained a positive view of the company?s performance, with the average recommendation rated as ?buy?. Out of seven analysts, four issued ?strong buy? or ?buy? ratings, while three maintained ?hold? positions, with none issuing ?sell? recommendations. Wall Street?s median 12-month price target for Postal Realty Trust stood at USD 16.25, approximately 8.7% higher than its recent closing price of USD 14.83. The stock was trading at 33 times its projected 12-month earnings, compared with a price-to-earnings ratio of 36 observed three months ago.
Postal Realty Trust?s solid quarterly results reflected the company?s disciplined acquisition strategy and efficient capital deployment. With a strengthened balance sheet and a consistent acquisition pipeline, the firm is positioned to sustain its growth momentum. Its raised AFFO guidance and stable operational performance highlight continued investor confidence, supported by robust analyst ratings and a positive price target outlook.
Source - Reuters
5th Jun, 2025
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