Postal Realty Trust, Inc. (PSTL): Business Model Canvas [Dec-2025 Updated]

You're hunting for real estate investments that offer rock-solid stability, and honestly, Postal Realty Trust, Inc.'s model is built on the most reliable tenant there is: the U.S. government via the USPS. This isn't some speculative office play; it's a masterclass in owning nearly 2,000 properties across 49 states, boasting a near-perfect 99.8% occupancy rate, all underpinned by long-term leases. We're talking about a structure where the primary revenue stream-rental income hitting $23.69 million in Q3 2025-is government-backed, and they've managed to lock in 93% of their debt at a 4.37% weighted average rate. Their projected full-year AFFO of $1.30 to $1.32 per share shows the payoff from this niche focus. Dig into the full nine-block canvas below to see precisely how they execute this strategy.

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Postal Realty Trust, Inc. (PSTL) relies on to fuel its growth and manage its balance sheet as of late 2025. These aren't just vendors; they are crucial capital providers and transaction facilitators.

The partnership with property sellers is clearly transaction-driven, with one Q3 2025 acquisition noted as a unique off-market opportunity. While the specific 75% target isn't confirmed in the latest filings, the focus on disciplined acquisitions is evident in the year-to-date volume.

Here's a look at the capital partners and transaction managers Postal Realty Trust, Inc. uses:

• Property Acquisition Volume Year to Date (through October 17, 2025): $101 million.
• Q3 2025 Acquisitions: 47 USPS properties for $42.3 million at a weighted average capitalization rate of 7.7%.

The relationship with lenders is formalized in the recently recast and expanded credit facility, which is a major source of liquidity.

Credit Facility Component	Amount	Maturity Date
Aggregate Credit Facilities (2025 Credit Facility)	$440 million	N/A (Components vary)
2025 Revolving Facility	$150 million	November 2029
2025 Term Loan Facility	$115 million (Upsized from $75 million)	January 2030
2025 Delayed Draw Term Loan Facility (DDTL)	$175 million	February 2028

The administrative and arranging roles for this $440 million facility, effective September 19, 2025, involve several key financial institutions.

• Administrative Agent: Truist Bank.
• Joint Lead Arrangers and Joint Book Runners: Truist Securities, Inc., M&T Bank, and JPMorgan Chase Bank, N.A..
• Additional Lenders: Mizuho Bank Ltd., Stifel Bank & Trust, and TriState Capital Bank.

For equity capital, Postal Realty Trust, Inc. uses an At-The-Market (ATM) program to fund acquisitions. This is a partnership where shares are sold into the market over time, which is dilutive but accretive when used for high-cap-rate acquisitions.

ATM Equity Program Activity (2025)	Amount/Volume	Date/Period
Gross Proceeds Raised (Q3 2025)	$26.0 Million	Q3 2025
Shares Issued (Q3 2025)	1,677,683 shares	Q3 2025
Average Price Per Share (Q3 2025)	$15.49 per share	Q3 2025
Gross Proceeds Raised (Q2 2025)	$12.8 million	Q2 2025

To manage the variable interest rate exposure from its debt, Postal Realty Trust, Inc. partners with financial institutions for hedging instruments. This is a critical step to lock in costs, especially as they utilize SOFR-based borrowing rates.

• Interest Rate Swap Notional Amount: $40 million.
• Swap Counterparties: Certain affiliates of the lenders under the 2025 Credit Facilities.
• Fixed Rate Period: Through January 2030.
• Resulting All-in Current Interest Rate on Swapped Borrowings: Weighted average of 4.73%.
• Debt Fixed Rate Coverage (as of September 30, 2025): 93% of debt outstanding was set to fixed rates (including hedges).

Finance: draft 13-week cash view by Friday.

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Key Activities

You're focused on the engine that drives Postal Realty Trust, Inc. (PSTL)'s growth, which is all about disciplined, high-quality property additions and locking in long-term, predictable cash flow from a single, creditworthy tenant. Here's the breakdown of what the company is actively doing to execute its strategy as of late 2025.

Programmatic acquisition of fragmented postal properties

Postal Realty Trust, Inc. (PSTL) is aggressively buying last-mile and flex properties leased to the USPS, targeting a fragmented market where they can be the dominant consolidator. They are on track to meet or exceed $110 million in acquisitions for the full year 2025, having already closed over $100 million in deals through October 2025. This activity immediately scales the revenue base.

The pace and pricing of these acquisitions are key to their accretive growth strategy. Here's a look at the recent transaction volume and yield:

Period Ending	Properties Acquired	Acquisition Cost (Excl. Closing Costs)	Weighted Average Cap Rate
June 30, 2025 (Q2)	68	$35.9 million	7.8%
September 30, 2025 (Q3)	47	$42.3 million	7.7%
Through October 17, 2025 (Post Q3)	19	$7.2 million	Data not explicitly stated for this tranche

The portfolio itself is extensive, standing at 1,853 properties across 49 states as of September 30, 2025. This scale is a direct result of their programmatic approach.

Negotiating and executing long-term USPS leases

The core value proposition relies on securing long-term contracts with the United States Postal Service (USPS) that feature built-in rent growth. This is how they generate predictable internal growth without needing to constantly buy new assets.

The leasing activity is focused on locking in favorable terms for the future:

• New leases are being structured with 10-year terms.
• New leases include 3% annual rent escalations.
• As of October 17, 2025, rents for all leases expiring in 2025 and 2026 have been agreed upon with the USPS.
• As of October 17, 2025, 196 new leases for 2025 expirations were fully executed.
• As of October 17, 2025, 53% of portfolio rent is subject to annual rent escalations.

To be fair, the weighted average lease term across the whole portfolio was approximately 4 years as of August 2025, which means they have a steady stream of re-leasing opportunities to reset rents higher.

Efficient, low-cost property management and maintenance

Managing a large, geographically dispersed portfolio of single-tenant properties requires operational discipline, especially keeping costs low while maintaining high occupancy. The results show they are defintely succeeding here.

Key operational metrics as of late 2025:

• Portfolio Occupancy: Maintained at 99.8% across the portfolio.
• Weighted Average Rental Rate (Sep 30, 2025): $11.62 per leasable square foot.
• Last-Mile/Flex Rate (Sep 30, 2025): $13.81 per leasable square foot.
• Industrial Rate (Sep 30, 2025): $4.23 per leasable square foot.
• Same-Store Cash NOI Guidance (Updated Nov 2025): Raised to a range of 8.5% to 9.5%.

The company guides its total cash General and Administrative (G&A) expense for the full year 2025 to be between $10.5 million and $11.5 million, showing a focus on keeping overhead lean relative to revenue.

Capital raising via debt and equity for accretive growth

Funding the aggressive acquisition pace requires continuous access to capital, which Postal Realty Trust, Inc. (PSTL) secures through both equity issuance and prudent debt management. They are actively using their At-The-Market (ATM) program to raise funds for deals.

Capital markets activity through Q3 2025:

• Equity Raised (Q2 2025 ATM): $12.8 million.
• Equity Raised (Q3 2025 ATM): $26.0 million.
• Total Net Debt (as of Sep 30, 2025): Approximately $347 million.
• Debt Structure: 93% of outstanding debt was set to fixed rates as of September 30, 2025.
• Weighted Average Interest Rate (as of Sep 30, 2025): 4.37%.

Furthermore, they amended and expanded their unsecured credit facilities to $440 million during Q3 2025, with $125 million undrawn as of September 30, 2025, providing immediate liquidity for pending contracts. The debt to EBITDA ratio was around 5.2X as of late 2025 analysis. Finance: draft 13-week cash view by Friday.

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Key Resources

You're looking at the core assets that let Postal Realty Trust, Inc. (PSTL) operate and generate that stable, government-backed income. These aren't just buildings; they are highly specialized, long-term leases with a single, creditworthy tenant. Honestly, the strength here is in the numbers that back up the stability.

The physical foundation of Postal Realty Trust, Inc.'s business is its real estate portfolio. As of the end of the third quarter of 2025, the portfolio consisted of 1,853 properties spread across 49 states and one territory. This geographic diversification across the country is a key operational resource, minimizing risk tied to any single local market's economic health. The company has also been actively growing this base, having acquired $101 million in properties year-to-date through October 17, 2025.

Operationally, the quality of the tenancy is paramount. The portfolio boasts an exceptionally high occupancy rate, reported at 99.8% as of September 30, 2025. This near-perfect occupancy, given the mission-critical nature of the United States Postal Service (USPS) locations, is a massive resource that translates directly into predictable cash flow.

The financial structure supporting these assets is intentionally conservative against interest rate volatility. Postal Realty Trust, Inc. has proactively managed its liabilities. Here's a quick look at the debt profile as of September 30, 2025:

Financial Metric	Value
Percentage of Debt at Fixed Rates (including hedges)	93%
Weighted Average Interest Rate on Debt	4.37%
Net Debt (Total Debt less Cash/Reserves)	Approximately $347 million
Undrawn Revolving Credit Facility Capacity	$125 million

This high percentage of fixed-rate debt means that even if broader market rates move up, the cost of servicing the majority of Postal Realty Trust, Inc.'s debt is locked in, which is a huge advantage in the 2025 rate environment.

Finally, the human capital is a specialized resource. Postal Realty Trust, Inc. is an internally managed real estate investment trust. This structure means the team making the acquisition, leasing, and property management decisions has deep, focused expertise specifically in the niche of USPS-leased real estate. This internal team is key to executing the programmatic leasing strategy, which includes incorporating annual rent escalators on renewed leases, expected to accrete between $0.02-$0.06 to AFFO per share from 2025 to 2027.

The core operational elements supporting the business model are:

• Portfolio size: 1,853 properties as of September 30, 2025.
• Geographic reach: Properties across 49 states.
• Occupancy: 99.8% across the owned portfolio.
• Leasing activity: Successfully executed 196 new leases with the USPS through October 17, 2025.
• Management: Internal team with dedicated postal real estate focus.

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Value Propositions

You're looking at the core reason why Postal Realty Trust, Inc. (PSTL) commands a premium valuation compared to some peers; it's all about the quality and predictability of the income stream. The value proposition centers on being the largest landlord to the United States Postal Service (USPS), a government-backed entity that pays rent consistently, regardless of the broader economic climate.

The stability here is almost unparalleled in the REIT space because the tenant is the federal government. This translates directly into a highly reliable top line. As of October 17, 2025, the company's owned portfolio comprised 1,872 properties across 49 states, generating an Annualized Base Rent (ABR) of approximately $81.3 million. You can see the sheer scale and stability in the numbers:

Portfolio Metric	Value (as of late 2025)
Total Owned Properties	1,872
Portfolio Occupancy Rate	99.8%
Annualized Base Rent (ABR)	$81.3 million
States with Property Presence	49

The long-term lease visibility is the next layer of value. While the prompt mentions over half the portfolio is on 10-year terms, the most precise data from the November 2025 conference suggests a significant portion is locked in for the long haul, which anchors future revenue visibility. Furthermore, the company has been aggressive in securing long-term agreements for upcoming expirations.

• 10-Year Lease Terms: 37-38% of the portfolio now features 10-year lease terms.
• Lease Retention: The company maintains a 99% average lease retention rate over the past decade.
• Lease Expiration Certainty: Rents for all leases set to expire in both 2025 and 2026 have already been agreed upon with the Postal Service.

Organic growth is secured through programmatic leasing, which is the annual escalation baked into the contracts. This is how Postal Realty Trust, Inc. drives internal growth without relying solely on acquisitions. All leases agreed upon since 2022 include annual escalations.

Here's the quick math on that internal growth: 53% of current leases include annual escalations. These escalations typically start with a market step-up in year one, followed by 3% annual increases on new leases. This disciplined approach is paying off immediately, as evidenced by the updated guidance for the year. The company updated its 2025 same-store cash Net Operating Income (NOI) guidance to a strong range of 8.5% to 9.5%, up from prior guidance of 7% to 9%.

Finally, for property sellers, the UPREIT structure (Umbrella Partnership Real Estate Investment Trust) offers a tax-efficient exit. This structure allows property owners to contribute appreciated real estate to the operating partnership in exchange for operating partnership units, which defers capital gains tax. This provides sellers with flexibility for estate planning and the ability to convert their equity into a more liquid, diversified investment over time, rather than taking a taxable cash payout immediately.

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Customer Relationships

You're managing a portfolio where your primary customer is the United States Postal Service (USPS), a government-backed entity. This relationship defines Postal Realty Trust, Inc. (PSTL)'s entire business structure, making the customer relationship block the bedrock of the model.

Direct, long-term, and programmatic leasing with the USPS

Postal Realty Trust, Inc. (PSTL) engages in direct, programmatic leasing, which means you are constantly working through a pipeline of lease renewals and new agreements with the USPS across your entire portfolio. This isn't transactional; it's an ongoing, operational partnership. As of September 30, 2025, your owned portfolio stood at 1,853 properties across 49 states and one territory, with 99.8% occupancy. The focus is on securing long-term visibility.

The programmatic approach is clearly visible in the lease execution pace. As of October 17, 2025, you had 196 new leases fully executed with the USPS for leases that expired or were scheduled to expire in 2025. Furthermore, you've successfully agreed to new rents on all leases set to expire in 2025 and 2026. These new agreements are designed for stability, including 3% annual rent escalations and a mix of 10-year lease terms.

The financial impact of this direct negotiation is immediate. For leases executed in the first nine months of 2025, the total lump sum catch-up payment received from the USPS was $0.9 million. This payment compensates for the time between the old lease expiration and the new lease execution at the new, escalated rate.

Here's a snapshot of how the lease structure looked as of late 2025:

Metric	Value as of Late 2025
Total Owned Properties (9/30/2025)	1,853
Portfolio Occupancy (9/30/2025)	99.8%
Leases with Annual Rent Escalations (10/17/2025)	53% of portfolio rent
Leases with 10-Year Term (10/17/2025)	38% of portfolio rent
2025 Lease Expirations with Agreed Rents	100%

High tenant retention rate, with only two non-renewals since IPO

The relationship with the USPS is incredibly sticky. You've maintained a weighted average lease retention rate of 99% as of October 17, 2025. Honestly, this figure is the core of your investment thesis; it's near-perfect tenant stickiness. The retention rate has consistently been high, ranging from 96% to 100% since 2015, and it was 99% for Year-to-Date 2025. This stability is what allows you to project internal growth confidently.

The focus on securing long-term agreements directly supports this high retention. You've been working diligently to have fully executed leases in hand before upcoming expirations, which helps prevent any lapse in service or tenancy.

Focus on operational efficiency to support the tenant's mission

Supporting the USPS mission means ensuring the properties function seamlessly, which you achieve through operational discipline. The CEO pointed to operating efficiencies as a key driver for increasing the 2025 Adjusted Funds From Operations (AFFO) guidance. This efficiency translates directly to the bottom line and service reliability for your tenant.

You are actively managing overhead to keep costs low for the USPS, which is critical for a government tenant. For the full year 2025, you expect total cash General & Administrative (G&A) expense to be between $10.5 million and $11.5 million, while prioritizing platform efficiency and declining cash G&A as a percentage of revenue. This focus on keeping your operational costs lean helps maintain a stable, long-term relationship with the Postal Service.

The relationship is built on a foundation of reliable service delivery, which you support through:

• Prioritizing platform efficiency.
• Declining cash G&A as a percentage of revenue.
• Securing long-term leases with built-in rent escalations.
• Maintaining a 99.8% occupied portfolio.

Finance: draft 13-week cash view by Friday.

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Channels

You're looking at how Postal Realty Trust, Inc. (PSTL) gets its properties, manages its key tenant relationship, and secures the cash to keep growing. It's all about direct engagement and disciplined capital access.

Direct acquisition channels for off-market property sourcing

Postal Realty Trust, Inc. (PSTL) relies heavily on direct sourcing to build its portfolio. This channel bypasses competitive bidding processes, which is key for a company focused on a niche asset class like U.S. Postal Service properties.

Here are the key metrics defining this channel as of late 2025:

• Approximately 75% of Postal Realty Trust, Inc. (PSTL) acquisitions are sourced off-market.
• The company uses Operating Partnership units (OP units) in combination with cash for 10% to 15% of its deal flow.
• Total closed acquisition volume through October 17, 2025, surpassed $100 million.

The third quarter of 2025 showed the channel in action:

Metric	Q3 2025 Data	Year-to-Date (Through Oct 17, 2025)
Properties Acquired (Q3)	47 properties	N/A
Acquisition Volume (Q3)	$42.3 million	Over $100 million
Weighted Average Cash Cap Rate (Q3)	7.7%	N/A
2025 Acquisitions Guidance	Meet or exceed $110 million	N/A

The single largest Q3 acquisition mentioned was the Newtonville, Massachusetts post office for $23.5 million at an initial cash cap rate of 7.6%.

Internal leasing team for direct negotiation with the USPS

The relationship with the United States Postal Service (USPS) is managed through a dedicated internal team that focuses on a highly efficient, repeatable framework for lease execution. This is the engine for organic growth.

The leasing success translates directly into portfolio stability and better revenue predictability:

• The portfolio occupancy rate was 99.8% as of September 30, 2025.
• New leases executed under this framework offer a 10-year term and 3% annual rent escalations.
• The 2025 same-store cash NOI guidance was updated to a range of 8.5% to 9.5%.

The team's progress on lease renewals for 2025 is concrete:

Leasing Milestone	Count/Date	Portfolio Metric (as of Sep 30, 2025)
Fully Executed New Leases (2025 Expirations)	196 (As of October 17, 2025)	1,853 properties owned
Fully Executed New Leases (Q2 2025 Expirations)	161 (As of July 18, 2025)	6.9 million net leasable interior square feet
Weighted Average Rental Rate	N/A	$11.62 per leasable square foot

The company increased its 2025 Adjusted Funds From Operations (AFFO) guidance by $0.06 per share, reflecting confidence in this internal growth driver.

Investor Relations team for capital markets access (NYSE: PSTL)

The Investor Relations function supports the acquisition channel by ensuring Postal Realty Trust, Inc. (PSTL) has deep and flexible access to capital markets. This is evident in the balance sheet activity reported through Q3 2025.

Key capital structure and market access figures include:

• The company is listed on the NYSE under the ticker PSTL.
• Institutional Ownership stood at 70.42% based on Q2 2025 data.
• The quarterly dividend announced on October 22, 2025, was $0.2425 per share, or $0.97 annualized.

The team has actively managed and expanded credit capacity to fund growth:

Capital Market Activity	Amount	Details
Credit Facility Commitment Increase	$40 million	New total commitment of $440 million
Undrawn Revolver Capacity	$125 million	Plus $250 million of accordion capacity
Capital Raised via ATM Program (Q3 2025)	$26.0 million	Used to fund acquisitions
2025 AFFO Per Share Guidance Range	$1.30 to $1.32	Represents 13% annual growth at the midpoint

Net debt to annualized adjusted EBITDA was reported at 5.2x at the end of Q3 2025, with 93% of borrowings at fixed rates.

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Customer Segments

United States Postal Service (USPS) as the single major credit tenant

Postal Realty Trust, Inc. (PSTL) is the largest owner of properties leased to the United States Postal Service (USPS), which acts as the overwhelmingly dominant tenant and primary revenue source. As of the third quarter of 2025, the company owned over 2,200 properties leased primarily to the USPS, spanning 49 states.

The portfolio demonstrated exceptional stability, maintaining an occupancy rate of 99.8% as of September 30, 2025. The weighted average rental rate across the portfolio was $11.62 per leasable square foot based on rents in place on September 30, 2025. Rental Income was the core revenue stream, generating $23.69 million in the third quarter of 2025, out of total revenue of $24.33 million for that period.

Lease terms are structured to provide predictable growth:

• 53% of leases include annual escalations.
• 37-38% of the portfolio now features 10-year lease terms.
• All leases agreed upon since 2022 include annual escalations, starting with a market step-up followed by 3% annual increases.

The company is focused on securing lease renewals, having fully executed 196 new leases with the USPS for leases expiring in 2025 as of October 17, 2025.

Owners of small, fragmented postal properties (acquisition targets)

This segment represents the sellers of individual USPS-leased properties that Postal Realty Trust, Inc. (PSTL) targets for accretive acquisitions. The company is on track to meet or exceed its 2025 acquisition target of at least $110 million. Acquisitions in the third quarter of 2025 alone totaled $42.3 million, comprising 47 USPS properties at a weighted average capitalization rate of 7.7%. Year-to-date through October 17, 2025, closed acquisition volume surpassed $101 million.

The focus is on disciplined, high-yield purchases:

Metric	2025 Target/Focus	Q3 2025 Actual Acquisition Data
Total 2025 Acquisition Goal	Meet or exceed $110 million	Year-to-date volume surpassed $101 million (through Oct 17)
Targeted Cap Rate	7.5% or above	Weighted Average Cap Rate of 7.7% for Q3 properties
Sourcing Method	75% sourced off-market	Acquired 47 properties for $42.3 million in Q3

The strategy is to continuously add properties to the portfolio to drive cash flow growth, supporting the raised 2025 Adjusted Funds From Operations (AFFO) guidance of $1.30 to $1.32 per diluted share.

Income-focused public equity investors (REIT shareholders)

This group consists of public equity investors seeking stable, income-producing investments characteristic of a Real Estate Investment Trust (REIT). Postal Realty Trust, Inc. (PSTL) supports this segment with a consistent dividend policy and strong operational performance, reflected in its raised 2025 AFFO guidance.

Key financial metrics relevant to income investors include:

• Annualized Dividend: $0.97 per share.
• Quarterly Dividend: $0.2425 per share.
• Last Ex-Dividend Date: Nov 4, 2025.
• 2025 AFFO Guidance (Midpoint): Implies 13% annual growth.

The ownership structure shows significant participation from larger entities:

• Institutional Ownership: 68.71%.
• Insider Ownership: 4.73%.

The company has increased its dividend for 5 successive years. The balance sheet structure is also a key factor for this segment, with 93% of the approximately $347 million in net debt set to fixed rates as of September 30, 2025. The weighted average debt interest rate was 4.37% at that time.

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Cost Structure

When you look at the Cost Structure for Postal Realty Trust, Inc. (PSTL), you see a model heavily influenced by its debt profile and the nature of its triple-net leases. The goal here is to keep the day-to-day operational costs low so that rental income flows efficiently to the bottom line, which for a REIT, is often measured by AFFO (Adjusted Funds From Operations).

Interest Expense on Debt Load

The cost of capital is a significant component. As of September 30, 2025, Postal Realty Trust, Inc. reported approximately $347 million of net debt. You should note that the weighted average interest rate on this debt was 4.37% at that time, with 93% of the debt outstanding set to fixed rates, which helps manage near-term rate volatility. For the third quarter of 2025 specifically, the reported interest expense totaled $4.26 million.

Here's a quick look at the debt structure as of the end of Q3 2025:

Metric	Amount/Rate
Net Debt (as of 9/30/2025)	$347 million
Weighted Average Interest Rate (WAI)	4.37%
Debt at Fixed Rates (including hedges)	93%
Q3 2025 Interest Expense	$4.26 million
Undrawn Revolving Credit Facility Capacity	$125 million

General & Administrative (G&A) Expense

The management team is focused on platform efficiency, aiming to see cash G&A expense decline as a percentage of revenue. For the full fiscal year 2025 (FY25), Postal Realty Trust, Inc. has guided its total cash G&A expense to be in the range of $10.5 million to $11.5 million. This is a key operational cost to watch against revenue growth.

Property Operating Expenses

The structure of the leases keeps property-level expenses low for Postal Realty Trust, Inc. This is the benefit of the triple-net lease structure, where the tenant-the U.S. Postal Service (USPS)-is responsible for covering most property operating costs. This setup is defintely what allows the company to report strong internal growth metrics. The company updated its 2025 same-store cash Net Operating Income (NOI) guidance to a range of 8.5% to 9.5%, reflecting these operational efficiencies.

Recurring Capital Expenditures (CapEx)

Recurring capital expenditures, which are costs necessary to maintain the properties but don't increase value, are kept minimal. For context, Q3 2025 revenue was reported at $24.33 million. The recurring CapEx for that period is estimated to be only 1.1% of that revenue figure. The company noted that lower-than-anticipated recurring CapEx contributed to the increase in the 2025 AFFO guidance.

You can see the low level of recurring maintenance spending relative to the top line:

• Q3 2025 Revenue: $24.33 million
• Recurring CapEx as % of Q3 2025 Revenue: 1.1%
• Q2 2025 Recurring CapEx (actual): $127,000
• Anticipated Q4 2025 Recurring CapEx: $100,000 to $250,000

Keeping recurring CapEx low helps bridge the gap between FFO (Funds From Operations) and AFFO (Adjusted Funds From Operations).

Postal Realty Trust, Inc. (PSTL) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Postal Realty Trust, Inc. (PSTL) as of late 2025. Honestly, the model is straightforward: rent collection from a single, credit-strong tenant, the U.S. Postal Service (USPS).

The primary engine for Postal Realty Trust, Inc. is the rental income derived from its portfolio, which is overwhelmingly leased to the USPS. This forms the bedrock of their revenue stability. For the third quarter ended September 30, 2025, this segment generated $23.69 million.

To give you a clearer picture of the Q3 2025 top line, here's how the revenue components stacked up:

Revenue Component	Q3 2025 Amount
Total Revenue	$24.33 million
Primary Rental Income (USPS Leases)	$23.69 million
Fee and Other Income	$0.63 million

This total revenue figure of $24.33 million for Q3 2025 represented a 24% growth compared to the third quarter of 2024.

Rental revenue from annual lease escalations and renewals is the internal growth lever. The framework Postal Realty Trust, Inc. has established with the Postal Service includes new leases offering 10-year terms and built-in annual rent escalations. You should note the 3% annual rent escalations embedded in these new agreements, which directly contribute to recurring revenue growth without needing new acquisitions.

The secondary revenue component, Fee and Other Income, is much smaller but still contributes to the overall cash flow. This stream, which includes revenue from direct financing leases and various miscellaneous fees, totaled $0.63 million in Q3 2025.

Looking ahead, the projected full-year 2025 performance reinforces the strength of this revenue base. Postal Realty Trust, Inc. increased its guidance for the full year 2025 Adjusted Funds From Operations (AFFO) per diluted share to a range of $1.30 to $1.32. This guidance increase of $0.06 was driven by the strong Q3 results and operating efficiencies.

Here are a few other key operational metrics tied to revenue generation and growth:

• Q3 2025 AFFO per diluted share was $0.33.
• Same-store cash Net Operating Income (NOI) guidance for 2025 was updated to a range of 8.5% to 9.5%.
• Acquisition volume closed year to date through October 17th surpassed $101 million.
• The 2025 acquisitions guidance was set to meet or exceed $110 million.

Finance: draft 13-week cash view by Friday.