Postal property trust raises acquisition target to $150 million

Postal Realty Trust raised its annual acquisition guidance to $150 million from $120 million, which management said would mark its largest acquisition year in seven years. The real estate investment trust buys properties leased primarily to the U.S. Postal Service and other government agencies.

The company said renewed leases are shifting from five-year flat terms to 10-year agreements with 3% annual rent increases. Annual rental growth now covers 45% of its portfolio through 2026, compared with none in 2022.

Postal Realty also reported a 70% dividend payout ratio based on adjusted funds from operations, down from 100% when it went public, and said it was operating at 4.6 times debt to EBITDA against a target of 5.5 times or below. About $50 million in previously raised equity remains available for acquisitions.

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