Postal Realty Trust Reports 22.1% Revenue Growth, Decline in Net Income for Q3 2024

Postal Realty Trust, Inc. reported significant financial developments for the three and nine months ended September 30, 2024, reflecting both growth in revenue and challenges in profitability. The company’s total revenues for the third quarter reached $19.7 million, a 22.1% increase from $16.1 million in the same period of 2023. This growth was primarily driven by a 21.6% rise in rental income, which amounted to $18.8 million compared to $15.4 million in the prior year. For the nine-month period, total revenues increased by 17.8% to $55.0 million, up from $46.7 million.

Despite the revenue growth, net income for the third quarter decreased to $1.3 million from $1.4 million in 2023, marking a 6.1% decline. Similarly, net income for the nine months fell to $2.6 million from $3.1 million, a 15.7% decrease. The decline in net income was attributed to rising operating expenses, which increased by 21.2% to $14.9 million in the third quarter, driven by higher property management costs and increased depreciation due to acquisitions.

The company’s total assets grew to $615.1 million as of September 30, 2024, up from $567.3 million at the end of 2023. Total liabilities also increased to $306.1 million from $265.7 million, reflecting the company’s ongoing investments in real estate. Total stockholders’ equity rose slightly to $245.6 million from $243.6 million.

During the nine months ended September 30, 2024, Postal Realty Trust acquired 134 properties leased to the USPS for approximately $61.4 million, including closing costs. The company also sold one property with an immaterial net book value. As of September 30, 2024, the portfolio consisted of 1,642 properties located across 49 states and one territory.

The company’s financing activities included a revolving credit facility and term loans, with total indebtedness reaching approximately $278.3 million. Interest expense for the nine months increased to $9.3 million, up from $7.3 million in the previous year, primarily due to additional borrowings and rising interest rates.

In terms of dividends, Postal Realty Trust declared $7.0 million in dividends for the third quarter, maintaining a consistent payout of $0.24 per share. The company continues to manage its capital structure actively, with approximately $96.4 million available under its at-the-market offering program as of September 30, 2024.