Updated 3/13/25
Postal Realty Trust isn’t a household name, but for dividend-focused investors looking for something different, it offers a unique angle. The company focuses on a single tenant—the United States Postal Service. That may sound niche (and it is), but it brings with it a level of predictability and reliability that’s tough to find elsewhere in the REIT space. Since debuting on the public markets in 2019, PSTL has steadily grown its portfolio to include over 1,800 USPS-leased properties.
If you’re the kind of investor who prefers steady rent checks over speculative upside, there’s something here worth paying attention to.
Recent Events
Lately, Postal Realty has been busy. Revenue is up sharply—nearly 26% higher year-over-year in the most recent quarter. Earnings are also heading in the right direction, with quarterly EPS growth showing a big jump of more than 280% year-over-year. That’s a sign that operations are becoming more efficient and the portfolio is doing its job.
The company has continued acquiring properties, focusing especially on those in smaller towns and rural areas. These are locations where the USPS isn’t going anywhere, which adds a layer of security that’s hard to replicate. On the flip side, the stock itself has been moving sideways. Over the last 12 months, it’s down just over 1%. That’s not surprising given the pressure the REIT sector has been under with higher interest rates. But for dividend investors, a flat stock price paired with a rising yield might not be such a bad trade-off.
Key Dividend Metrics
💵 Forward Dividend Yield: 7.00%
📈 5-Year Average Yield: 5.63%
💰 Annual Dividend: $0.97 per share
📆 Latest Dividend Paid: February 28, 2025
🧾 Payout Ratio (EPS-based): 457.14%
📊 Trailing Dividend Yield: 6.95%
🔁 Dividend Increases: Nearly every quarter since IPO
📉 1-Year Stock Price Change: -1.35%
🧮 Current Share Price: $14.04
Dividend Overview
Let’s get to the heart of the matter: a 7% dividend yield from a company whose only tenant is the USPS. That’s a rare find. PSTL pays out 97 cents per share annually, split across four quarterly dividends. Since it went public, the company has steadily nudged that payout upward almost every quarter.
The increases aren’t huge, but they’re consistent, and that consistency tells you management is confident in the cash flow. Right now, the yield is comfortably above the five-year average. For investors who care more about mailbox money than capital gains, that’s a welcome setup.
Dividend Growth and Safety
Yes, that payout ratio looks extreme on paper. Over 450% of GAAP earnings are going to dividends. But if you know REITs, you know that number can be misleading.
REITs are required to distribute at least 90% of their taxable income to shareholders. Instead of focusing on net income, serious investors look at FFO—Funds From Operations—which adjusts for non-cash items like depreciation. While we don’t have the exact FFO numbers here, Postal Realty has typically kept its FFO payout ratio in a more comfortable 80% to 90% range. That’s right where it should be.
Operating margins remain strong, and the company generated over $33 million in cash flow from operations over the past year. That’s more than enough to keep the dividend checks rolling.
Chart Analysis
Current Price Action
Postal Realty Trust (PSTL) closed at 14.28 on March 12, 2025, after opening the session at 14.23. The day’s low touched 14.02, with a high of 14.32, suggesting a modest trading range but with buyers clearly having the upper hand by the close. That move capped off a sharp short-term rally off the early March lows, where the stock briefly dipped below 12.50. Since then, it’s staged a notable recovery, reclaiming both the 50-day and 200-day moving averages with authority.
The last five candles reflect a strong bullish response. Three of them are large-bodied green candles with shallow lower wicks, indicating heavy buying pressure and little sign of sellers defending lower levels. One candle shows a longer upper wick, but it was followed immediately by another strong green candle that pushed through, which suggests bulls took temporary profit but stepped right back in.
Moving Averages
PSTL recently completed a crossover where the 50-day moving average is now curling up, closing the gap with the flatter 200-day average. While not yet a definitive golden cross, the trajectory shows that momentum is shifting in favor of buyers. This follows several months where the stock remained beneath both moving averages, especially during January and February, where pressure from sellers was dominant.
Back in late summer and early fall of 2024, PSTL had been riding a wave of strength, trading above both key averages, but that trend faded as the market sold off into the end of the year. What’s compelling now is that the price has managed to reclaim those technical lines with a strong burst of volume—an early signal that the downtrend may have exhausted itself.
Volume and Momentum
Volume over the last five sessions has been notably higher than average, peaking on the breakout day that launched PSTL back above its longer-term trendline. That’s important. Rising price with rising volume tends to confirm the strength of the move.
The relative strength index (RSI) has been climbing steadily and is now hovering near the 70 level. That’s typically where you’d expect a stock to be approaching overbought conditions, but given the previous oversold stretch in February, this current momentum shift could still have room to run. For most of January and February, RSI remained muted, stuck in the lower ranges, echoing the sideways and downward chop in the price. That’s clearly changed in March.
Trend Observations
Zooming out a bit, the broader structure shows PSTL may have completed a rounded bottom formation that started building in late January. There was a low-volume grind, followed by a sharper selloff into early March, then a V-shaped snapback. The volume confirmation and reclaiming of key levels strengthen the case for a potential change in trend. What was once a phase of weakness now looks more like a possible shift into early markup.
This recent surge doesn’t yet scream a breakout into new territory, but the groundwork is there. The flattening 200-day moving average, combined with an upward-bending 50-day and elevated RSI, suggests bulls are gaining the upper hand after a prolonged period of indecision and lower highs.
Support and Resistance
Immediate support lies in the 13.60 to 13.80 zone, which aligns with the area where the 50-day moving average is currently resting. That level also lines up with previous congestion from February. On the upside, the 14.50 to 14.70 zone will likely be a key test. Price stalled there multiple times last fall, and it could draw sellers again unless momentum continues to build with volume.
Analyst Ratings
📈 Postal Realty Trust (PSTL) has caught the attention of analysts recently, with the sentiment leaning modestly bullish. The overall consensus is leaning toward a “Buy” recommendation, reflecting confidence in the company’s stable business model and attractive dividend yield.
🎯 The average analyst price target sits around $15.44, which implies an upside potential of roughly 8% to 10% from current levels. Targets range between $15.00 on the low end and up to $16.75 on the high side, showing a reasonably tight spread and suggesting broad agreement on where the stock could be heading in the near term.
👍 Stifel Nicolaus reaffirmed a positive stance on PSTL with a “Strong Buy” rating back in June 2024 and pegged a price target of $16.00. Their optimism likely stems from PSTL’s stable cash flows and defensive tenant profile, anchored by long-term USPS leases, which provide a level of reliability that’s tough to match in the REIT space.
🤔 On the other hand, Truist Securities has maintained a “Hold” rating as of late November 2023, also setting their target at $16.00. That neutral position may be tied to valuation concerns or the slow growth profile of PSTL, given its niche focus and limited tenant diversification.
💡 These differing views reflect the broader dynamic at play—investors are weighing the trade-off between consistent income and limited upside. PSTL offers yield stability, but growth is modest, and analyst expectations mirror that balance.
💬 Overall, analyst ratings suggest that while PSTL may not be a high-flyer, it’s considered a reliable performer with a narrow but favorable upside path—especially for income-focused portfolios.
Earnings Report Summary
Postal Realty Trust closed out 2024 on a strong note, showing steady growth and continued execution of its long-term strategy. In the fourth quarter alone, the company picked up 63 new USPS-leased properties, spending just over $30 million—not including closing costs. That brought solid momentum into the end of the year, helping lift earnings and cash flow.
For the quarter, net income available to common shareholders came in at $4.5 million, or 17 cents per share. More importantly for REIT watchers, funds from operations (FFO) hit $9 million, or 30 cents per share. Adjusted FFO, which is often a better barometer of the company’s ability to pay dividends, landed at 35 cents per share. That was more than enough to support a slight bump in the dividend, which moved up to 24.25 cents—about a one percent increase compared to the prior year’s payout.
Looking at the full year, Postal Realty added a total of 197 properties to its portfolio, investing roughly $91 million. That expansion helped drive a 20 percent increase in rental income over 2023. Full-year earnings for common shareholders totaled $6.6 million, or 21 cents per share. On a cash flow basis, FFO was 97 cents per share, and AFFO came in at $1.16. Investors took home 96 cents in dividends throughout the year, keeping payout levels comfortably in range.
The company ended 2024 with an occupancy rate near perfection—99.6 percent across a portfolio that spans nearly every state and covers over six million square feet. The average rent was just above ten and a half dollars per square foot, showing stability in the pricing structure.
One interesting development was the company’s success in renewing and restructuring leases. By mid-February, they had already signed new agreements for nearly all of the 2023 and 2024 lease expirations. These new contracts typically run for ten years and include three percent annual rent increases, which should provide a nice tailwind for internal growth.
Postal Realty also gave some guidance for 2025, projecting AFFO in the range of $1.20 to $1.22 per share. It’s not an aggressive leap forward, but it shows the management team sees enough visibility in their cash flow to keep delivering for income-focused investors.
Financial Health and Stability
Let’s talk about the balance sheet. Postal Realty has just over $299 million in debt and around $8.5 million in cash. On paper, that might look like a lot of leverage, but the current ratio sits at 1.96, suggesting no near-term liquidity concerns.
With a debt-to-equity ratio just under 95%, PSTL is using leverage in a controlled way—common for REITs, especially those relying on rental income from stable tenants. The real strength here comes from the predictability of cash flows. USPS isn’t exactly in the habit of missing rent payments.
Beta comes in at just 0.67, showing that this stock doesn’t swing wildly with the broader market. That’s a plus for investors who want steadier performance in uncertain times.
Valuation and Stock Performance
At 1.30 times book value and around 4.1 times revenue, PSTL sits in a fairly neutral valuation zone. It’s not obviously cheap, but it’s also not stretched. Shares are currently trading closer to the lower end of their 52-week range, which runs from $12.26 to $15.15.
The 50-day moving average is at $13.40, and the 200-day is $13.88, with the current price hovering slightly above both. That could signal a mild upward trend developing.
Enterprise value to EBITDA is about 14.56, a solid number for a company with dependable cash flows and minimal tenant turnover. It’s not going to set the world on fire, but that’s kind of the point here—this is a REIT built for slow, steady income.
Risks and Considerations
Postal Realty’s model is simple. That’s both a strength and a risk.
The biggest risk is tenant concentration. USPS is the only customer. If anything were to shift drastically in government policy or property needs, PSTL could take a hit. That said, the Post Office doesn’t exactly move fast. Its property footprint tends to be stable for decades.
Interest rates are another key factor. Rising rates make borrowing more expensive and can pressure REIT valuations. PSTL has managed this well so far, but it’s still a variable to watch.
Growth potential is limited by the nature of the business. The USPS isn’t rapidly expanding its footprint, so most of PSTL’s growth has to come from acquisitions. While that’s been their strategy from the start, it does put a ceiling on how fast they can scale.
Finally, the stock isn’t particularly liquid. With relatively low daily trading volume and a small market cap, price moves can be exaggerated in either direction.
Final Thoughts
Postal Realty Trust doesn’t fit the mold of a high-flying REIT, and it’s not trying to. Instead, it offers something rare: dependable income backed by a government tenant. With a 7% yield, a track record of consistent (if modest) dividend hikes, and a business model built around stability, PSTL is designed for the patient, income-focused investor.
If your priority is reliable cash flow, and you’re not looking for explosive growth, PSTL brings some attractive qualities to the table. Quiet. Steady. Purpose-built for those who like their portfolios to pay them back—one dividend at a time.