Postal Realty Trust Reports 28.1% Revenue Growth to $22.2 Million in Latest Quarter

Postal Realty Trust, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $22.2 million for the three months ended March 31, 2025, a 28.1% increase from $17.3 million in the same period last year. The rise in revenue was primarily driven by a 29.4% increase in rental income, which amounted to $21.5 million, up from $16.6 million. This growth is attributed to the company's strategic acquisitions and the execution of new leases with annual escalations. The company also reported a net income of $2.7 million, a substantial increase from $256,000 in the prior year, reflecting a 937.1% rise.

In terms of operational metrics, Postal Realty Trust's total assets increased to $654.0 million as of March 31, 2025, compared to $646.8 million at the end of 2024. The company’s real estate properties, net of depreciation, rose to $602.4 million, up from $590.0 million. The company’s liabilities also increased, totaling $339.1 million, up from $329.3 million, largely due to an increase in its revolving credit facility, which rose to $24.0 million from $14.0 million. The total stockholders' equity decreased slightly to $245.5 million from $251.3 million, primarily due to an increase in the accumulated deficit.

Strategically, Postal Realty Trust has continued to expand its portfolio, acquiring 36 properties leased to the United States Postal Service (USPS) for approximately $16.3 million during the quarter. As of March 31, 2025, the company owned a total of 1,738 properties across 49 states and one territory, with a significant portion of its rental income concentrated in Pennsylvania, which accounted for approximately 11.0% of total rental income. The company also reported a slight increase in its employee headcount, reflecting its growth and operational needs.

The company’s operational expenses increased to $15.8 million, up from $14.2 million, driven by higher real estate taxes and general administrative costs. Notably, the company recognized $0.1 million in casualty and impairment losses during the quarter, reflecting damages to properties from natural disasters. Interest expenses also rose to $3.6 million, up from $2.8 million, primarily due to increased borrowings and rising interest rates.

Looking ahead, Postal Realty Trust remains optimistic about its growth trajectory, with plans to continue acquiring postal properties and expanding its portfolio. The company has approximately $91.7 million available under its at-the-market offering program and intends to leverage its credit facilities for future acquisitions. However, the company acknowledges potential risks related to the USPS's financial stability and operational challenges, which could impact its leasing agreements and overall business performance.