What Postal Realty Trust's 2025 Update Means for Investors

Postal Realty Trust, Inc. PSTL delivered a robust update for the fourth quarter and full year 2025, showcasing meaningful expansion in its portfolio of properties leased to the United States Postal Service (“USPS”). 

For the full year, the company acquired 216 USPS-leased properties for about $123 million, growing its asset base roughly 20% year over year and underscoring the strength of its specialized sourcing strategy and relationships in postal real estate. This acquisition push not only enhances scale but supports future cash flows through rents on mission-critical logistics facilities. 

In the fourth quarter specifically, Postal Realty added 65 properties totaling roughly $29.1 million at an attractive cash capitalization rate of 7.5%, indicating disciplined deployment of capital in a competitive environment. The REIT ended 2025 with an occupancy rate of 99.8% across approximately 1,917 properties in 49 states and one territory and weighted average rents at $11.88 per occupied leasable square foot based on rents in place, driven by stronger last-mile and flex property performance. 

Balance sheet metrics also point to financial resilience. About 89% of debt is on fixed rates, insulating the company from interest rate volatility, and there are no material maturities until 2028. This stable debt profile complements recent strategic financing moves made during 2025 to bolster liquidity and extend maturities, setting Postal Realty up for continued growth. 

With ongoing market demand for postal facilities and nearly full occupancy, Postal Realty’s disciplined growth through strategic purchases and solid leasing reinforces its core position in niche real estate.

Wrapping Up on PSTL

Postal Realty Trust’s 2025 performance reflects a strong acquisition cadence, high occupancy and prudent capital management that together position it well for future growth. By expanding its footprint of USPS-leased properties while maintaining a stable balance sheet and fixed-rate debt, the company strengthened its long-term cash flow outlook. With nearly full occupancy and ongoing demand for last-mile logistics real estate, Postal Realty remains an intriguing play in specialized REIT investing for shareholders focused on income and steady expansion.

Shares of this Zacks Rank #1 (Strong Buy) company have rallied 10.8% over the past three months, outperforming the industry’s increase of 0.5%. The stock has further room to grow with analysts raising both 2025 and 2026 FFO per share estimates over the past two months to $1.30 and $1.38, respectively.

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Prologis PLD and First Industrial Realty Trust FR. Both Prologis and First Industrial Realty Trust carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Prologis’ 2025 FFO per share is pegged at $5.80, which indicates year-over-year growth of 4.32%.

The Zacks Consensus Estimate for First Industrial Realty Trust’s 2025 FFO per share stands at $2.96, which calls for an increase of 11.70% from the year-ago period. 

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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