Postal Realty Trust Increases Acquisition Target and Lease Renewals Drive Growth
Postal Realty Trust (NYSE:PSTL) has raised its acquisition guidance for the year to a record $150 million, up from $120 million. This increase is supported by approximately $50 million in available equity and leverage of 4.6 times debt-to-EBITDA. The company plans to focus on acquiring last-mile and flex postal facilities that are immediately accretive. The firm has also shifted its lease renewals from five-year flat terms to 10-year agreements with a 3% annual escalator, significantly boosting rent growth projections. Annual rent increases now cover 45% of the portfolio through 2026 and same-store cash revenue is expected to grow by 6.5% in 2027. Additionally, Postal Realty Trust has reduced its AFFO payout ratio from 100% at IPO to 70%, with a goal of further reducing it to 65%. This strategy aims to improve financial flexibility and contribute about 2% annual growth to AFFO per share next year.
Tickers: $PSTL
Topics: acquisition strategy growth projections lease renewals