One-glance verdict
Within fair range
$22.96 our estimate vs market $23.45
Wall Street consensus: $26.79 (16.7% higher than our fair-value estimate)
2% above our estimate
Fundamentals snapshot
Postal Realty Trust, Inc.
PSTL · NYQ · Real Estate · REIT - Office
Current price
$23.45
52-week range
$14.25 - $25.22
Market cap
$933.32M
Balance sheet
Stretched
2.21x Stretched
Net debt $379.05M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 10.2% last year.
- Reward Returns 5.9% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Net debt grew 84.3% over 3 years.
What this company does
Postal Realty Trust, Inc.
Postal Realty Trust is a real estate investment trust (a company that owns properties to collect rent) which buys and manages buildings used as post offices. The company makes its money by leasing these properties almost exclusively to the U.S. Postal Service. This matters because having the U.S. government as its main customer provides a very stable and predictable source of revenue (the total money brought in from rent).
How the company got here
The story of Postal Realty Trust began in the early 1980s when the current CEO's father purchased a small portfolio of postal properties. He discovered that the United States Postal Service (USPS) was a reliable tenant that rarely moved and always paid its rent. The family continued to grow the portfolio, eventually becoming the largest private owner of postal assets. Seeing an opportunity to consolidate a very fragmented market, the company went public in 2019 as a Real Estate Investment Trust (REIT), a type of company that owns and often operates income-producing real estate.
What it actually does
Think of Postal Realty Trust as a landlord for the U.S. Postal Service. The company buys and manages buildings that are then leased to the USPS, including local post offices and larger industrial facilities used for mail processing. Its main job is to collect rent from the USPS on these properties. Because its primary tenant is a government agency, the company has a very consistent and reliable stream of income.
Properties Leased to the USPS
This is the company's single and entire line of business. It generates revenue by collecting rent from the USPS on the thousands of properties it owns across the country. These properties range from small, local "last-mile" post offices to medium "flex" buildings and large industrial sorting centers. This rental income is the primary way the company makes money, and because the USPS is its main customer, its financial performance is closely tied to the government agency's stability.
What management is betting on now
Management's main strategy is to continue consolidating the highly fragmented market of postal properties. The company is the largest owner of USPS-leased properties, but still only owns a small percentage of the total, leaving a long runway for growth by acquiring more buildings. They are focused on buying properties at attractive prices and locking the USPS into long-term leases, often with built-in rent increases. By growing its portfolio, the company aims to increase its rental income and, in turn, the dividends (a portion of profits paid out to shareholders) it can pay to investors.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$7.39M
FY2024 Q4
$8.62M
FY2025 Q1
$10.16M
FY2025 Q2
$9.06M
FY2025 Q3
$8.78M
FY2025 Q4
$9.57M
FY2026 Q1
$9.85M
FY2026 Q2
$13.17M
Revenue
$28.58M
Net income
$5.05M
Diluted EPS
0.15
Operating cash flow
$14.08M
Free cash flow
$13.17M
Fetching…
Sources
Revenue
$26.65M
Net income
$3.83M
Diluted EPS
0.11
Operating cash flow
$10.94M
Free cash flow
$9.85M
Fetching…
Sources
Revenue
$26.00M
Net income
$4.64M
Diluted EPS
0.16
Operating cash flow
$11.35M
Free cash flow
$9.57M
Fetching…
Sources
Revenue
$24.33M
Net income
$3.81M
Diluted EPS
0.13
Operating cash flow
$10.94M
Free cash flow
$8.78M
Fetching…
Sources
Revenue
$23.35M
Net income
$3.61M
Diluted EPS
0.12
Operating cash flow
$11.41M
Free cash flow
$9.06M
Fetching…
Sources
Revenue
$22.15M
Net income
$2.08M
Diluted EPS
0.06
Operating cash flow
$10.82M
Free cash flow
$10.16M
Fetching…
Sources
Revenue
$21.37M
Net income
$4.50M
Diluted EPS
0.17
Operating cash flow
$9.21M
Free cash flow
$8.62M
Fetching…
Sources
Revenue
$19.67M
Net income
$1.07M
Diluted EPS
0.03
Operating cash flow
$8.01M
Free cash flow
$7.39M
Fetching…
Sources
Is it cheap or expensive?
Fair value $22.96 vs current price $23.45
Wall Street consensus is the average analyst price target: $26.79 (16.7% higher than our fair-value estimate).
Our most-likely fair value is $22.96 a share — about 2.1% away from today's price of $23.45, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $379.0M. Interest coverage 2.2x.
Net debt
$379.05M
Interest coverage
2.21x
Postal Realty Trust, Inc.'s profit covers its interest bill about 2.2 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
PSTL
BASELINE
Postal Realty Trust, Inc.
Total debt $384.28M Interest coverage 2.21x This is the baseline the peer rows are being compared against.
Total debt $1.71B Interest coverage 1.14x -48% vs PSTL Carries about 1.9x less debt cushion than PSTL.
Total debt $2.64B Interest coverage 2.70x +23% vs PSTL Carries about 1.2x more debt cushion than PSTL.
Total debt $389.62M Interest coverage 1.19x -46% vs PSTL Carries about 1.8x less debt cushion than PSTL.
Total debt $1.40B Interest coverage 1.17x -47% vs PSTL Carries about 1.9x less debt cushion than PSTL.
Total debt $2.92B Interest coverage 3.32x +51% vs PSTL Carries about 1.5x more debt cushion than PSTL.
What you should know
The case for and against PSTL
3 Rewards
1 Risk
Rewards
-
Revenue grew 10.2% last year.
-
Returns 5.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Net debt grew 84.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
43.43x
Forward P/E
30.56x
P/B
2.11x
P/S
8.84x
EV/EBITDA
19.22x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
78.4%
Operating margin
39.7%
Net margin
16.4%
ROE
5.9%
ROA
3.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.92x
Current ratio
2.25x
Quick ratio
2.17x
Total debt
$384.28M
Total cash
$5.24M
Growth
How the business has been compounding
Revenue TTM
$105.55M
Revenue 5Y CAGR
24.5%
EPS TTM
0.54
EPS 5Y CAGR
46.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$47.30M
Free CF TTM
$37.57M
FCF margin
35.6%
Dividend
Shareholder payout
Yield
4.2%
Payout ratio
180.6%
Last ex-div date
2026-08-14