Postal Realty Trust (PSTL) increased its full-year acquisition guidance to $150 million from $120 million at the 17th Annual Midwest IDEAS Conference on August 26, 2026, marking its highest annual acquisition target in seven years.
The REIT, which focuses on leased postal facilities, reported a debt-to-EBITDA ratio of 4.6 times, below its 5.5 times ceiling and down from an initial target of 7 times. Management highlighted a multi-pronged growth strategy combining mark-to-market lease renewals with 3% annual escalators now embedded in all leases through 2027. Same-store cash revenue growth is guided at 6.5% for 2027, with 75% driven by mark-to-market adjustments and 25% by escalators.
The company’s portfolio spans roughly 2,000 million square feet, representing an 8% market share of the estimated $15 billion total addressable market for leased postal facilities. About 30% of lease revenue is set to expire in the coming years, providing opportunities for rent adjustments. Approximately $50 million in undeployed equity capital remains available for acquisitions.
Postal Realty has raised its dividend for seven consecutive years, targeting annual increases of about 1% while working toward a 65% adjusted funds from operations (AFFO) payout ratio. The current dividend yield stands at 4.19%, down from 100% of cash flow/AFFO at its 2019 IPO to 70% in the second quarter. Historical AFFO per share growth has averaged around 6% annually, with retained earnings expected to contribute an additional 2% to annual growth.
Management emphasized disciplined acquisition criteria, stating all targets must be accretive from day one and support five-year earnings growth without prioritizing volume over profitability. Insiders own roughly 13% to 14% of the float, with executives receiving compensation entirely in equity and no cash bonuses.
