Strong Programmatic Re-leasing Effort
The company executed 10-year leases with the Postal Service, covering 31% of the portfolio with annual rent escalations at 55%. This approach has provided enhanced visibility and allowed for the issuance of annual AFFO per share guidance.
AFFO Per Share Growth and Guidance Update
AFFO per share for the quarter was $0.33, surpassing expectations. The full-year 2025 AFFO guidance range was increased by $0.04 to $1.24 to $1.26 per share, implying nearly 8% year-over-year growth.
Successful Acquisitions and Reduced Leverage
Postal Realty closed on 127 properties year-to-date for over $60 million, with a weighted average cap rate of 7.8%. Net debt to annualized adjusted EBITDA decreased to 5.1x from 5.2x.
Increased Same-Store Cash NOI Guidance
The company updated its 2025 same-store cash NOI guidance to 7-9%, up from the previous 4-6% guidance.
Appointment of New Postmaster General
David Steiner, with a strong logistics background, was appointed as the new Postmaster General, reinforcing the company's alignment with the Postal Service.