Postal Realty Trust Reports 29.4% Revenue Growth to $23.4 Million in Q2 2025

Postal Realty Trust, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $23.4 million for the three months ended June 30, 2025, a 29.4% increase from $18.1 million in the same period last year. The company's rental income surged by 30.9% to $22.7 million, driven primarily by a series of acquisitions and new lease agreements with annual escalations. For the first half of 2025, total revenues amounted to $45.5 million, up 28.8% from $35.3 million in the prior year. The net income attributable to common stockholders also saw a substantial increase, rising to $3.6 million, or $0.12 per share, compared to $0.8 million, or $0.02 per share, in the previous year.

The company’s operational performance reflected a robust increase in income from operations, which more than doubled to $8.7 million for the second quarter, compared to $4.1 million in the same quarter of 2024. This growth was attributed to the successful execution of its acquisition strategy, which included the purchase of 104 properties for approximately $53.2 million in the first half of 2025. The total number of properties owned by Postal Realty Trust now stands at 1,806, located across 49 states and one territory, with a significant portion leased to the United States Postal Service (USPS).

In terms of expenses, total operating costs increased by 5% to $14.6 million for the second quarter, primarily due to higher real estate taxes and general administrative expenses. The company reported a net interest expense of $4.0 million, reflecting increased borrowings and rising interest rates. Despite these increases, the company maintained a strong cash flow from operations, which rose to $22.2 million for the first half of 2025, compared to $16.3 million in the same period last year.

Looking ahead, Postal Realty Trust remains focused on expanding its portfolio and enhancing its operational efficiency. The company has plans to continue acquiring additional properties, with definitive agreements already in place for 30 more properties valued at approximately $10.4 million. The management expressed confidence in its ability to navigate market conditions and capitalize on opportunities within the postal real estate sector, particularly given the ongoing demand for postal services. The company also highlighted its commitment to maintaining its status as a Real Estate Investment Trust (REIT), which requires distributing at least 90% of its taxable income to shareholders.

As of June 30, 2025, Postal Realty Trust had approximately $330.2 million in outstanding debt, with a significant portion subject to variable interest rates. The company is actively managing its interest rate risk through a series of interest rate swaps, which have effectively fixed a substantial amount of its variable-rate debt. The management remains optimistic about the company's financial outlook, emphasizing its strategic focus on growth and stability in the face of evolving market dynamics.