Postal Realty Trust, Inc.

Reported AFFO per share of $0.36 in Q2, up $0.03 from Q1 and up $0.03 from Q2 2025. Last year’s second quarter included approximately $0.005 of one-time lump-sum catch-up payments versus a de minimis amount this year. Q2 acquisitions totaled $45 million across 37 properties at a 7.3% weighted average cash cap rate; year-to-date through July acquisitions totaled $88 million at a 7.4% cap rate. Net debt to pro forma annualized adjusted EBITDA ended Q2 at 4.6x, down from 5.2x last quarter, and pro forma adjusted net debt to pro forma annualized adjusted EBITDA was 4x including unsettled forwards and post-quarter sales. The company raised 2026 AFFO per share guidance to $1.41 to $1.43, up $0.01 from prior guidance, with the midpoint implying 7.6% growth. It also raised acquisitions guidance to $150 million to $160 million. Cash G&A is tracking below the midpoint of the prior range, same-store cash NOI remains in line with forecast, and third-quarter recurring capex is expected to be $250,000 to $350,000. The board approved a quarterly dividend of $0.245 per share, up 1% from last year, with a second-quarter payout ratio of about 68% and a 4.3% yield as of yesterday.

Andrew Spodek framed the quarter as evidence that Postal Realty’s platform is scaling with better capital access and a broader set of deal opportunities, including larger assets and portfolios. He emphasized that acquisitions are still being selected for day-1 accretion and long-term upside, citing the San Diego buy as an example of buying a below-market lease in a growth market at an attractive basis. His tone was confident and increasingly optimistic, saying he has “never felt more confident” in the company’s ability to scale accretively.

Steve Bakke highlighted four growth drivers: lease mark-to-market upside, annual rent escalators, retained cash flow, and day-1 accretion from acquisitions. He said AFFO available after dividend payments is expected to increase to $16 million in 2026 from $3 million three years ago, and he raised 2026 AFFO per share guidance to $1.41 to $1.43. On the balance sheet, he noted leverage of 4.6x at quarter end, 4x on a pro forma adjusted basis including unsettled forwards, and a plan to keep leverage no higher than 5.5x. He also said the July credit facility recast added $60 million of size, pushed the largest maturity tower to 2031, extended weighted average maturity from 2.8 to 3.5 years, kept floating-rate exposure below 10%, and reduced the interest rate margin by 30 basis points.

Analysts focused on whether improved cost of capital would lead to materially more acquisitions, and management said the stronger spread versus a 6.0% weighted average cost of capital supports more flexibility and confidence in future growth. They also asked about industrial assets and larger portfolios; management said industrial is not the “bread and butter” but will be pursued when it is accretive on day 1 and offers growth, and larger deals are now more feasible because of better capital access. Another question addressed legacy lease burn-off and mark-to-market timing, and management said it depends asset by asset, though a large 2027 master lease still has one more extension before below-market rent can reset.