Postal Realty Trust, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with total revenues reaching $76.4 million, a 19.9% increase from $63.7 million in 2023. The company's rental income rose by 20% to $73.1 million, driven primarily by a series of acquisitions, including 197 properties leased mainly to the United States Postal Service (USPS) for approximately $90.8 million. Net income also saw a substantial increase of 81.6%, totaling $8.3 million compared to $4.6 million in the previous year.
The company’s operational metrics reflect a strong performance, with its portfolio comprising 1,703 properties across 49 states and one territory, achieving a 99.6% occupancy rate. The weighted average remaining lease term for these properties is approximately four years. In 2024, Postal Realty Trust also executed a strategic acquisition of 36 properties from its CEO and affiliates for $12.5 million, further consolidating its position in the postal real estate market. The company has a right of first offer on an additional 214 properties managed by its CEO.
In terms of financial management, Postal Realty Trust amended its credit facilities in October 2024, increasing its term loan commitments by $50 million and replacing the Bank of Montreal with Truist Bank as the administrative agent. The company raised approximately $20.4 million through its at-the-market equity offering program, issuing 1,420,791 shares during the year. The quarterly dividend was increased to $0.2425 per share for the fourth quarter of 2024, marking a consistent annual increase since the company's IPO.
Despite these positive developments, the company faces challenges related to its reliance on the USPS, which is undergoing significant operational reforms and cost-cutting measures. The USPS's financial health is critical to Postal Realty Trust's business model, as it leases the majority of its properties to the postal service. The company has acknowledged potential risks associated with the USPS's ability to meet its financial obligations, which could impact future lease renewals and rental income.
Looking ahead, Postal Realty Trust remains focused on expanding its portfolio and enhancing shareholder value through strategic acquisitions and operational efficiencies. The company is committed to maintaining its REIT status, which requires distributing at least 90% of its taxable income to shareholders, and it plans to continue leveraging its credit facilities and equity offerings to support growth initiatives.
About Postal Realty Trust, Inc.
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