Postal Realty Trust's Q2 2025: Key Contradictions on Efficiencies, Leasing Strategies, and NOI Growth

Strong Financial Performance and Guidance Update:
- Postal Realty Trust reported AFFO per share of $0.33 for Q2 2025, ahead of expectations, leading to an increase in full-year 2025 AFFO guidance range by $0.04, to $1.24 to $1.26 per share, implying nearly 8% year-over-year growth.
- The growth was driven by the company's efficient programmatic re-leasing efforts and cost management.

Acquisition Activity and Cap Rate Trends:
- The company closed on 127 properties year-to-date for over $60 million, with a trend of acquiring properties at a weighted average cap rate of approximately 7.8%.
- This reflects a strategic focus on acquiring properties for long-term value creation and holding them to achieve higher stabilized yields.

Same-Store Cash NOI Guidance Increase:
- Postal Realty updated its 2025 same-store cash NOI guidance to be between 7% and 9%, up from previous guidance of between 4% and 6%.
- The increase was attributed to successful re-leasing efforts, rent escalations, and operational efficiencies.

Financial Leverage and Debt Management:
- Net debt to annualized adjusted EBITDA decreased to 5.1x, down from 5.2x at the end of 2024.
- The improvement was due to careful financial management and strategic acquisitions that increased cash flows.