Postal Realty Trust (PSTL) Nareit REITweek: 2024 Investor Conference summary

Business overview and market opportunity

• Portfolio has grown 5-6x in assets, square footage, and rental revenue since going public five years ago.

• Owns 7% of a highly fragmented $10–$15 billion postal real estate market, with 25,000 facilities and 17,000 owners.

• 99% tenant retention rate and 100% rent collection, with no need for on-site management in 49 states.

• Most acquisitions (75%) are sourced off-market through direct outreach and industry expertise.

• Focus is on flex and last-mile facilities, not large industrial buildings.

Acquisition, underwriting, and competition

• Competition mainly comes from local buyers for smaller assets and industrial players for larger ones.

• Each acquisition is underwritten based on the Postal Service’s needs and real estate fundamentals, using a proprietary database.

• Properties are typically acquired at or below replacement cost, supporting high retention.

• Operating partnership units are used as a flexible acquisition currency, especially attractive to larger, sophisticated sellers.

Postal Service strategy and impact

• Postal Service is modernizing processing plants to improve logistics efficiency, increasing the value of last-mile and flex facilities.

• The network serves 167 million delivery points six days a week, creating a virtual monopoly on last-mile delivery.

• Company’s platform is positioned to benefit from these strategic shifts.