What is Postal Realty Trust's gross profit margin?

What is the revenue and EPS growth rate for Postal Realty Trust year over year?

What is the market's earnings forecast for Postal Realty Trust next quarter?

Did Postal Realty Trust beat or miss consensus estimates last quarter?

What were the key takeaways from Postal Realty Trust's earnings call?

What were the key takeaways from Postal Realty Trust’s earnings call?

What guidance did Postal Realty Trust's management provide for the next earnings period?

What factors drove the changes in Postal Realty Trust's revenue and profit?

- **AFFO Growth**: Q3 AFFO of $0.33 (+10% YoY), 2025 guidance raised to $1.30-$1.32 (13% growth).
- **Acquisition Momentum**: $42.3M Q3 acquisitions (7.7% cap rate), guiding to $110M+ for 2025.
- **Leasing Strength**: 53% of portfolio with escalations, same-store NOI guidance up to 8.5%-9.5%.
- **Balance Sheet**: 5.2x net debt/EBITDA, $125M undrawn revolver, 93% fixed-rate debt.
- **New CFO**: Steve Bakke brings Realty Income experience to enhance capital strategy.

**【Management Opening Remarks】**
- Jordan Cooperstein welcomed participants and outlined the call's structure, emphasizing forward-looking statements and non-GAAP financial measures.

**【CEO Summary Section】**
- **Q3 Performance**: Reported AFFO of $0.33 per share, a 10% YoY increase. Updated 2025 AFFO guidance to $1.30-$1.32, implying 13% growth at midpoint.
- **Strategic Pillars**: Focused on organic growth (programmatic leasing with 3% annual escalators), accretive acquisitions (e.g., $23.5M Newtonville, MA property), and capital access.
- **Leasing Success**: 53% of portfolio rents now include annual escalations; 38% under 10-year leases. Same-store NOI guidance raised to 8.5%-9.5% from 7%-9%.
- **Acquisition Pipeline**: Q3 acquisitions of $42.3M (7.7% cap rate), bringing year-to-date total to $100M+. Guided to meet/exceed $110M for 2025.
- **Leadership Update**: Steve Bakke joined as CFO, bringing expertise from Realty Income.

**【CFO Financial Commentary】**
- **Balance Sheet Strength**: Net debt/EBITDA of 5.2x, 93% fixed-rate debt, and $125M undrawn revolver.
- **Capital Allocation**: Used credit facilities, ATM equity ($26.7M at $15.50/share), and retained AFFO for acquisitions.
- **Dividend Growth**: 1% increase to $0.2425/share, with 73% payout ratio.

**【President's Update】**
- **Leasing Momentum**: 53% of portfolio rents with escalations; 38% under 10-year leases. Received $329K lump-sum catch-up payment.
- **Q3 Acquisitions**: 47 properties ($42.3M) added 160K sqft, 2.3% portfolio expansion. 19 Q4 acquisitions under contract ($12M).

**【Q&A Highlights】**
- **Newtonville Acquisition**: Off-market, accretive at 7.6% cap rate, with 8.3% in 3 years. Similar opportunities rare but pursued selectively.
- **OP Units Usage**: Used as currency for smaller deals, but complexity limits broader adoption.
- **Cap Rate Outlook**: Targeting 7.5%+; sellers slow to adjust to lower rates.
- **Lease Terms**: Mix of 5- and 10-year leases with escalators; 34% of leases expiring by 2026 offer growth potential.
- **Competition**: Postal Realty leads with 8% market share; competitors vary in scale and focus.

Postal Realty Trust, Inc. (PSTL) Q3 2025 Earnings Call Transcript

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