Postal Realty (PSTL) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 11:50 AM CDT 16 min read

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Wednesday, Feb. 25, 2026, 9 a.m. ET

• Chief Executive Officer — Andrew Spodek

• Chief Financial Officer — Stephen Bakke

• President — Jeremy Garber

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Andrew Spodek: Good morning, and convey you for joining america today. In 2025, we exceeded expectations connected each fronts. Our results bespeak the stableness and maturation inherent successful our portfolio of captious logistics infrastructure leased to the U.S. Postal Service and our unsocial operating approach. It was the palmy execution of our concern plan, coupled with the spot of the Postal Service's tenancy that enabled america to transcend our 2025 guidance. We're gathering connected these results with the beardown 2026 guidance we issued yesterday. Our concern is benefiting much than ever from economies of standard resulting from the maturation of our portfolio and the exertion and systems investments we've made successful caller years.

We grew our plus basal by astir 20% past year, expanding our gross existent property worth by 10x since IPO. Our entree to superior to money maturation is deeper than it's ever been, bolstered by a BBB investment-grade standing from Kroll, KBRA. Our year-end liquidity rises to $271 million, including the revolver upsize we announced yesterday arsenic good arsenic the palmy equity raising enactment we person completed to day successful the archetypal quarter. Looking to the future, we person a beardown pipeline of acquisitions to substance our worth instauration machine. We make important worth done acquisitions by applying our businesslike operating approach, marking rents to marketplace and extending lease presumption to 10 years with yearly rent escalators.

Our acquisition strategy remains unchanged for measurement to beryllium time 1 accretive and furnish meaningful maturation implicit time. Based connected our robust pipeline, we are introducing archetypal guidance of $115 cardinal to $125 cardinal astatine a mid-7% weighted mean headdress rate, afloat funded by caller superior markets activity. As our outgo of superior continues to amended and our pipeline of deals continues to expand, we volition revisit acquisition guidance arsenic needed successful aboriginal quarters. 2025 brought with it changes astatine the Postal Service. A caller Postmaster General took the reins successful July and has been vocal astir the worth of the past mile.

The motorboat of the auction process to broaden past mile entree lone reinforces what we've been saying for years. These existent property locations are the backbone of the U.S. Postal Service's transportation network. This infrastructure enables cosmopolitan work crossed much than 170 cardinal transportation points nationwide and is utilized 6 days a week by logistics providers and online retailers. As we similar to punctual investors, done authorities shutdowns, recessions and pandemics, the Postal Service pays 100% of the monthly rent 100% of the time. Lease expenses correspond 1.5% of the Postal Service's full operating expenses, and they person remained successful our gathering 99% of the time.