Andrew Spodek, CEO of Postal Realty Trust, Inc. (NYSE: PSTL), sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas, Nevada on Nov. 18-21.
Postal Realty focuses on the leasing market for U.S. Postal Service facilities, comprising approximately 25,000 properties, and generates around $1.4 billion in annual rent. Spodek highlighted that many investors misunderstand the potential of this market, as they mistakenly believe the Postal Service is closing buildings. In reality, Postal Realty has maintained a 99% retention rate during the past decade, even through economic downturns and crises like COVID-19.
Spodek also discussed the company's strong same-store net operating income (NOI) growth and guidance for 2025. He attributed this growth to the ability to mark leases to market, achieve economies of scale, and secure 3% annual escalations in a significant portion of their portfolio. He noted that these internal growth strategies continue to strengthen the company's financial outlook.
Looking ahead to 2025, Spodek expressed confidence in the company’s performance, citing its conservative approach and strong financial position with minimal debt maturities until 2027 or 2028. He also pointed out Postal Realty’s ability to execute off-market deals, allowing the REIT to make significant acquisitions despite their smaller size.