Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust (REIT) that specializes in the acquisition, ownership, and management of properties leased to the United States Postal Service (USPS). The company's portfolio consists of over 2,300 postal properties spread across 49 states and one U.S. territory, encompassing approximately 5.9 million net leasable interior square feet. These assets range from small, last-mile post offices to larger flex and industrial facilities critical to the nation's logistics and e-commerce delivery network.
The company's business model is centered on consolidating a highly fragmented market; of the roughly 23,000 privately owned postal facilities in the U.S., the vast majority are held by individual, single-asset owners. Postal Realty Trust leverages its scale, proprietary lease structures, and deep relationships to acquire these properties, often utilizing an Umbrella Partnership REIT (UPREIT) structure to offer tax-advantaged transactions to sellers.
Revenue is almost entirely derived from rental income paid by the USPS. This single-tenant focus provides exceptional cash flow stability, as the USPS is a government-affiliated entity that consistently pays rent and rarely relocates, resulting in a historical tenant retention rate exceeding 99%. The leases are typically modified double-net, where the tenant covers most operating expenses, and many include annual rent escalations. In addition to its owned portfolio, the company provides third-party property management services for several hundred additional postal properties, further expanding its footprint and pipeline for future acquisitions.
