Postal Realty Trust reported third‑quarter 2025 results that surpassed analyst expectations, with revenue rising 24% year‑over‑year to $24.33 million and earnings per diluted share (EPS) reaching $0.13, a $0.10 increase over the $0.03 EPS recorded in Q3 2024. The company’s funds from operations (FFO) of $0.33 per share beat the consensus estimate of $0.31 by $0.02, while adjusted funds from operations (AFFO) also hit $0.33 per share, matching the guidance range of $1.30–$1.32 for the full year. The revenue growth was driven by a $23.69 million rental income, up 26.2% from $18.70 million in the prior year, reflecting the success of the programmatic leasing initiative that secured 10‑year terms and 3% annual rent escalations for a majority of the portfolio.
The earnings beat can be attributed to disciplined cost management and the continued expansion of the USPS‑centric portfolio. Management highlighted that the programmatic re‑leasing strategy has secured long‑term leases for 31% of the portfolio and 55% of leases with 3% escalations, providing predictable cash flows that support the higher AFFO guidance. Additionally, the company closed acquisitions of 47 last‑mile and flex properties for $42.3 million and the Newtonville, MA post office for $23.5 million, adding 160,000 net leasable square feet and reinforcing the growth trajectory.
Postal Realty Trust also expanded its credit facilities to $440 million, extending maturities through 2030 and providing liquidity for future acquisitions. The company’s net debt to adjusted EBITDA ratio improved to 5.2x at the end of Q3 2025, down from 5.1x in Q2, indicating a stronger balance sheet position. The combination of higher revenue, improved cash flow, and a robust credit profile underpins the management’s decision to lift the 2025 AFFO guidance by $0.06.
Management emphasized that the company’s focus on organic growth through programmatic leasing, accretive acquisitions, and deepening access to capital will continue to drive performance. CEO Andrew Spodek noted that the predictability of revenue from new 10‑year leases with 3% escalations has enabled the company to provide annual AFFO guidance for the first time, and that a similar approach will be applied to the 2026 outlook.
Overall, the Q3 2025 results demonstrate Postal Realty Trust’s ability to generate consistent, high‑quality cash flow from its USPS‑leased portfolio, while maintaining a disciplined capital structure. The earnings beat, revenue growth, and guidance upgrade signal confidence in the company’s strategy and position it well for continued expansion in the coming year.
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