# Postal Realty Trust, Inc. (PSTL) Informational only - not investment advice. CIK: 0001759774 SIC: 6798 Real Estate Investment Trusts SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/) Latest 10-K filed: 2026-02-24 SEC page: https://www.sec.gov/edgar/browse/?CIK=1759774 Filing source: https://www.sec.gov/Archives/edgar/data/1759774/000162828026011212/pstl-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-24 · accession 0001628280-26-011212 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001759774.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 95,823,000 USD | 2025 | verified | | Net income | 14,149,000 USD | 2025 | verified | | Assets | 759,057,000 USD | 2025 | verified | | Free cash flow | 37,568,000 USD | 2025 | computed | | Net margin | 14.77% | 2025 | computed | | Operating margin | 35.83% | 2025 | computed | | Revenue YoY | +25.47% | 2025 | computed | | ROE | 4.96% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | PSTL | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 14.8% | 16.8% | 47 | 149 | | Operating margin | 35.8% | 23.2% | 63 | 66 | | Revenue growth | 25.5% | 3.7% | 95 | 149 | | FCF margin | 39.2% | 21.8% | 80 | 70 | | ROE | 5.0% | 5.7% | 43 | 151 | | ROA | 1.9% | 1.5% | 56 | 155 | | Liabilities / equity | 1.40 | 1.48 | 47 | 151 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 95823000 | USD | 2025 | 2026-02-24 | | Net income | 14149000 | USD | 2025 | 2026-02-24 | | Assets | 759057000 | USD | 2025 | 2026-02-24 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001759774.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 11,289,356 | 24,444,000 | 39,938,000 | 53,330,000 | 63,712,000 | 76,372,000 | 95,823,000 | | Net income | -1,497,213 | -352,000 | 2,055,000 | 3,854,000 | 3,709,000 | 6,596,000 | 14,149,000 | | Operating income | 68,527 | 2,032,000 | 5,919,000 | 9,700,000 | 13,996,000 | 21,177,000 | 34,338,000 | | Diluted EPS | | -0.10 | 0.10 | 0.15 | 0.12 | 0.21 | 0.47 | | Operating cash flow | 2,858,623 | 9,397,000 | 17,095,000 | 24,591,000 | 28,427,000 | 33,503,000 | 44,505,000 | | Capital expenditures | 151,582 | 970,000 | 1,900,000 | 3,687,000 | 2,868,000 | 2,775,000 | 6,937,000 | | Dividends paid | 3,456,258 | 8,245,000 | 15,041,000 | 21,566,000 | 24,362,000 | 27,987,000 | 30,752,000 | | Assets | 136,788,197 | 258,885,000 | 377,717,000 | 501,303,000 | 567,345,000 | 646,818,000 | 759,057,000 | | Liabilities | 66,964,922 | 139,246,000 | 112,244,000 | 217,592,000 | 265,720,000 | 329,320,000 | 399,496,000 | | Stockholders' equity | 48,873,603 | 91,990,000 | 220,042,000 | 229,231,000 | 243,562,000 | 251,285,000 | 285,199,000 | | Cash and cash equivalents | 12,475,537 | 2,212,000 | 5,857,000 | 1,495,000 | 2,235,000 | 1,799,000 | 1,454,000 | | Free cash flow | 2,707,041 | 8,427,000 | 15,195,000 | 20,904,000 | 25,559,000 | 30,728,000 | 37,568,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | -13.26% | -1.44% | 5.15% | 7.23% | 5.82% | 8.64% | 14.77% | | Operating margin | 0.61% | 8.31% | 14.82% | 18.19% | 21.97% | 27.73% | 35.83% | | Return on equity | -3.06% | -0.38% | 0.93% | 1.68% | 1.52% | 2.62% | 4.96% | | Return on assets | -1.09% | -0.14% | 0.54% | 0.77% | 0.65% | 1.02% | 1.86% | | Liabilities / equity | 1.37 | 1.51 | 0.51 | 0.95 | 1.09 | 1.31 | 1.40 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001759774.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.04 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.00 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.03 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 16,106,000 | 1,166,000 | 0.04 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 17,001,000 | 1,183,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 17,287,000 | 206,000 | -0.01 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 18,050,000 | 817,000 | 0.02 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 19,667,000 | 1,071,000 | 0.03 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 21,368,000 | 4,502,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 22,150,000 | 2,082,000 | 0.06 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 23,351,000 | 3,614,000 | 0.12 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 24,326,000 | 3,810,000 | 0.13 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 25,996,000 | 4,643,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 26,648,000 | 3,826,000 | 0.11 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 28,582,000 | 5,052,000 | 0.15 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from PSTL's latest 10-K: [/company/PSTL/business/](/company/PSTL/business/). ## Risk Factors Verbatim Item 1A Risk Factors from PSTL's latest 10-K: [/company/PSTL/risk-factors/](/company/PSTL/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1759774/000162828026052551/pstl-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-04 Report date: 2026-06-30 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis is based on, and should be read in conjunction with, the unaudited Consolidated Financial Statements and the related notes thereto of Postal Realty Trust, Inc. contained in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2025. As used in this section, unless the context otherwise requires, references to “we,” “our,” “us,” and “our company” refer to Postal Realty Trust, Inc., a Maryland corporation, together with our consolidated subsidiaries, including Postal Realty LP, a Delaware limited partnership, of which we are the sole general partner and which we refer to in this section as our Operating Partnership. Forward-Looking Statements  This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of federal securities laws. In particular, statements pertaining to our capital resources, acquisitions, property performance and results of operations contain forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: •change in the status of the United States Postal Service (“USPS”) as an independent agency of the executive branch of the U.S. federal government; •change in the demand for postal services delivered by the USPS; •our ability to come to an agreement with the USPS regarding new leases or lease renewals on the terms and timing we expect, or at all; •the solvency and financial health of the USPS; •defaults on, early terminations of or non-renewal of leases or actual, potential or threatened relocation, closure or consolidation of postal offices or delivery routes by the USPS; •the competitive market in which we operate; •changes in the availability of acquisition opportunities; •our inability to successfully complete real estate acquisitions or dispositions on the terms and timing we expect, or at all; •our failure to successfully operate developed and acquired properties; •adverse economic or real estate developments, either nationally or in the markets in which our properties are located; •decreased rental rates or increased vacancy rates; •change in our business, financing or investment strategy or the markets in which we operate; 30 Table of Contents •fluctuations in interest rates and increased operating costs, repair and maintenance expenses and capital expenditures for our properties; •general economic conditions (including inflation, rising interest rates, uncertainty regarding ongoing conflicts involving Russia and Ukraine, as well as the ongoing Iran war and the instability in the Strait of Hormuz and their related impact on macroeconomic conditions); •financial market fluctuations; •our failure to generate sufficient cash flows to service our outstanding indebtedness; •our failure to obtain necessary outside financing on favorable terms or at all; •failure to hedge effectively against interest rate changes; •our reliance on key personnel whose continued service is not guaranteed; •the outcome of claims and litigation involving or affecting us; •changes in real estate, taxation, zoning laws and other legislation and government activity and changes to real property tax rates and the taxation of real estate investment trusts for U.S. federal income tax purposes (“REITs”) in general; •operations through joint ventures and reliance on or disputes with co-venturers; •cybersecurity threats; •uncertainties and risks related to adverse weather conditions, natural disasters and climate change; •exposure to liability relating to environmental and health and safety matters; •governmental approvals, actions and initiatives, including the need for compliance with environmental requirements; •lack or insufficient amounts of insurance; •limitations imposed on our business in order to maintain our status as a REIT and our failure to maintain such status; and •public health threats. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes after the date of this Quarterly Report on Form 10-Q, except as required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently available to us or the third parties making the forward-looking statements. For a further discussion of these and other factors that could impact our future results, performance or transactions, you should carefully review and consider (i) the information contained under Item 1A titled “Risk Factors” herein and in our Annual Report on Form 10-K and (ii) such similar information as may be contained in our other reports and filings that we make with the Securities and Exchange Commission (the “SEC”). Overview Company We were formed as a Maryland corporation on November 19, 2018 and commenced operations upon completion of our initial public offering and the related formation transactions. We conduct our business through an umbrella partnership, commonly referred to as an UPREIT structure in which our properties are owned by our Operating Partnership directly or 31 Table of Contents through limited partnerships, limited liability companies or other subsidiaries. During the six months ended June 30, 2026, we acquired 98 properties leased primarily to the USPS for approximately $82.2 million, including closing costs. As of June 30, 2026, our portfolio consists of 2,014 owned properties, located in 49 states and one territory and comprising approximately 7.5 million net leasable interior square feet. We are the sole general partner of our Operating Partnership through which our properties are directly or indirectly owned. As of August 4, 2026, we owned approximately 80.4% of outstanding common units of limited partnership interest in our Operating Partnership (the “OP Units”), including long term incentive units of our Operating Partnership (the “LTIP Units”). Our Board of Directors oversees our business and affairs. ATM Program On November 4, 2022, the Company entered into separate open market sale agreements for its at-the-market offering programs with each of Jefferies LLC, BMO Capital Markets Corp., Janney Montgomery Scott LLC, Stifel, Nicolaus & Company, Incorporated and Truist Securities, Inc., as agents (the "ATM Program"), pursuant to which the Company may offer and sell shares of its Class A common stock having an aggregate sales price of up to $50.0 million. The agreements also provide that the Company may enter into one or more forward sale agreements under separate master forward confirmations and related supplemental confirmations with affiliates of certain agents. On August 8, 2023, the Company amended the ATM Program to increase the aggregate offering amount under the program to $150.0 million. On November 4, 2024, the Company entered into separate open market sale agreements for the ATM Program with each of Mizuho Securities USA LLC (“Mizuho”) and M&T Securities, Inc. (“M&T”), as additional sales agents, and affiliates of Mizuho, as forward sellers. On February 24, 2026 we amended the ATM Program to increase the aggregate amount under the ATM Program to $300.0 million. On February 24, 2026, we also entered into a separate open market sale agreements for the ATM Program (the "Additional Sale Agreements") with each of (i) J.P. Morgan Securities LLC (“J.P. Morgan”) and Scotia Capital (USA) Inc. (“ScotiaBank”), as additional sales agents, (ii) JPMorgan Chase Bank, National Association, and The Bank of Nova Scotia, as additional forward purchasers and (iii) J.P. Morgan and ScotiaBank as additional forward sellers (in each case in its capacity as agent for its affiliated forward purchaser). The Additional Sale Agreements also provide that, in addition to the issuance and sale of shares of our Class A common stock by us through J.P. Morgan and ScotiaBank, we may also enter into one or more forward sale agreements under a master forward confirmation and related supplemental confirmations, each between us and JPMorgan Chase Bank, National Association and The Bank of Nova Scotia. During the six months ended June 30, 2026, 3,154,725 shares were issued under the ATM Program for approximately $59.2 million in gross proceeds. As of June 30, 2026, we had approximately $97.0 million of availability remaining under the ATM Program. Executive Overview We are an internally managed REIT with a focus on acquiring and managing properties leased primarily to the USPS, ranging from last-mile post offices to industrial facilities. We believe the overall opportunity for consolidation that exists within the postal logistics network is very attractive. We continue to execute our strategy to acquire and consolidate postal properties that we believe will generate strong earnings for our shareholders. Geographic Concentration As of June 30, 2026, we owned a portfolio of 2,014 properties located in 49 states and one territory and leased primarily to the USPS. Registrant Elections We are a “smaller reporting company” as defined in Regulation S-K under the Securities Act and have elected to take advantage of certain scaled disclosures available to smaller reporting companies. As of June 30, 2026, the aggregate market value of our voting and non-voting common equity held by non-affiliates exceeded $700 million. However, because we were eligible to use the scaled disclosure requirements for smaller reporting companies under the revenue test in Exchange Act Rule 12b-2 for the fiscal year ending December 31, 2026, we do not meet the definition of an accelerated filer or large accelerated filer as of December 31, 2026. Accordingly, we expect to (i) no longer qualify as a "smaller reporting company" beginning with our Quarterly Report on Form 10-Q for the quarter ended March 31, 2027, (ii) remain a "non-accelerated filer" for filings due during fiscal year 2027 and (iii) not provide an auditor attestation report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act until our Annual Report on Form 10-K for the fiscal year ending December 31, 2027. 32 Table of Contents We have also elected to qualify to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), beginning with our short taxable year ended December 31, 2019 and intend to continue to qualify as a REIT. As long as we qualify as a REIT, we generally will not be subject to federal income tax to the extent that we distribute our taxable income for each tax year to our stockholders. Factors That May Influence Future Results of Operations The USPS We are dependent on the USPS’ [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1759774/000162828026011212/pstl-20251231.htm Complete FY 2025 MD&A: /company/PSTL/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-24 Report date: 2025-12-31 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis is based on, and should be read in conjunction with, the Consolidated Financial Statements and the related notes thereto of the Company as of and for the years ended December 31, 2025 and 2024. This management’s discussion and analysis of financial condition and results of operations contains forward-looking statements that involve risks, uncertainties and assumptions. See “Cautionary Statement Regarding Forward-Looking Statements” for a discussion of the risks, uncertainties and assumptions associated with those statements. Our actual results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors, including, but not limited to, those in Item 1A. “Risk Factors” and included in other portions of this report. Overview Company We were formed as a Maryland corporation on November 19, 2018 and commenced operations upon completion of our IPO and the related formation transactions. We conduct our business through a traditional UPREIT structure in which our properties are owned by our Operating Partnership directly or through limited partnerships, limited liability companies or other subsidiaries. For the year ended December 31, 2025, we acquired 216 properties leased to the USPS for approximately $123.1 million, excluding closing costs. As of December 31, 2025, our portfolio consists of 1,917 owned properties, located in 49 states and one territory and comprising approximately 7.1 million net leasable interior square feet. 38 Table of Contents We are the sole general partner of our Operating Partnership through which our properties are directly or indirectly owned. As of February 24, 2026, we owned approximately 78.8% of our outstanding OP Units, including LTIP Units. Our Board of Directors oversees our business and affairs. ATM Program On November 4, 2022, we entered into separate open market sale agreements (the "Sale Agreements") for our at the market offering program with each of Jefferies LLC, BMO Capital Markets Corp., Janney Montgomery Scott LLC, Stifel, Nicolaus & Company, Incorporated and Truist Securities, Inc., as agents (the "ATM Program"), pursuant to which we may offer and sell shares of our Class A common stock having an aggregate sales price of up to $50.0 million. The agreements also provide that the Company may enter into one or more forward sale agreements under separate master forward confirmations and related supplemental confirmations with affiliates of certain agents. On August 8, 2023, we amended the ATM Program to increase the aggregate offering amount under the program to $150.0 million. On November 4, 2024, we entered into separate open market sale agreements for the ATM Program with each of Mizuho Securities USA LLC (“Mizuho”) and M&T Securities, Inc. (“M&T”), as additional sales agents and affiliates of Mizuho, as forward sellers. During the year ended December 31, 2025, 3,154,321 shares were issued under the ATM Program, raising approximately $48.4 million in gross proceeds. As of December 31, 2025, we had approximately $45.3 million of availability remaining under the ATM Program. Subsequent to the end of the year, on February 24, 2026 we amended the ATM Program to increase the aggregate amount under the program to $300.0 million. On February 24, 2026, we also entered into a separate open market sale agreements for the ATM Program (the "Additional Sale Agreements") with each of (i) J.P. Morgan Securities LLC (“J.P. Morgan”) and Scotia Capital (USA) Inc. (“ScotiaBank”), as additional sales agents, (ii) JPMorgan Chase Bank, National Association, and The Bank of Nova Scotia, as additional forward purchasers and (iii) J.P. Morgan and ScotiaBank as additional forward sellers (in each case in its capacity as agent for its affiliated forward purchaser). The Additional Sale Agreements also provide that, in addition to the issuance and sale of shares of our Class A common stock by us through J.P. Morgan and ScotiaBank, we may also enter into one or more forward sale agreements under a master forward confirmation and related supplemental confirmations, each between us and JPMorgan Chase Bank, National Association and The Bank of Nova Scotia. Executive Overview We are an internally managed REIT with a focus on acquiring and managing properties leased primarily to the USPS, ranging from last-mile post offices to industrial facilities. We believe the overall opportunity for consolidation that exists within the postal logistics network is very attractive. We continue to execute our strategy to acquire and consolidate postal properties that we believe will generate strong earnings for our stockholders. Geographic Concentration As of December 31, 2025, we owned a portfolio of 1,917 properties located in 49 states and one territory and leased primarily to the USPS. For the year ended December 31, 2025, approximately 10.4% of our total rental income was concentrated in Pennsylvania. Registrant Elections We are a “smaller reporting company” as defined in Regulation S-K under the Securities Act and have elected to take advantage of certain scaled disclosures available to smaller reporting companies. We have also elected to qualify to be taxed as a REIT under the Code beginning with our short taxable year ended December 31, 2019 and intend to continue to qualify to be taxed as a REIT. As long as we qualify as a REIT, we generally will not be subject to federal income tax to the extent that we distribute our taxable income for each tax year to our stockholders. Factors That May Influence Future Results of Operations The USPS We are dependent on the USPS’ financial and operational stability. The USPS is currently facing a variety of circumstances that are threatening its ability to fund its operations and other obligations as currently conducted without intervention by the federal government. The USPS is constrained by laws and regulations that restrict revenue sources and pricing, mandate certain expenses and cap its borrowing capacity. As a result, among other consequences, the USPS is unable 39 Table of Contents to fund its mandated expenses and continues to be subject to mandated payments to its retirement system and benefits. While the USPS has recently undertaken, and proposes to undertake, a number of operational reforms and cost reduction measures, such as higher rates and slower deliveries for certain services and closure, relocation or consolidation of certain facilities and delivery routes, the USPS has taken the position such measures alone will not be sufficient to maintain its ability to meet all of its existing obligations when due or allow it to make the critical infrastructure investments that have been deferred in recent years. These measures have also led to significant criticism and litigation, which may result in reputational or financial harm or increased regulatory scrutiny of the USPS or reduced demand for its services. The occurrence of a regional epidemic or a global pandemic, and measures taken to prevent its spread may also have a material and unpredictable effect on the USPS’ operations and liquidity, including significant additional operating expenses caused by pandemic-related disruptions. Geopolitical and other economic factors have also created significant inflationary pressures resulting in higher compensation, benefits, transportation and fuel costs for the USPS. If the USPS becomes unable to meet its financial obligations or its revenue declines due to reduced demand for its services, the USPS may reduce its demand for leasing postal properties, which would have a material adverse effect on our business and operations. For additional information regarding the risks associated with the USPS, see Item 1A. "Risk Factors—Risks Related to the USPS". Revenues We derive revenues primarily from rent and tenant reimbursements under leases with the USPS for our properties and fee and other from the management of postal properties owned by Mr. Spodek and his affiliates, income recognized from properties accounted for as financing leases and revenue from providing certain advisory services. Rental income represents the lease revenue recognized under the leases primarily with the USPS which includes the impact of above and below market lease intangibles as well as reimbursements to us made by our tenants for the real estate taxes paid at each property where tenants are responsible for such taxes under the leases. Certain of our leases include annual rent escalators. Fee and other principally represents (i) revenue our TRS received from postal properties owned by Mr. Spodek and his affiliates pursuant to the management agreements and is a percentage of the lease revenue for the managed properties, (ii) revenue our TRS received from providing advisory services to third-party owners of postal properties and (iii) income recognized from properties accounted for as financing leases. As of December 31, 2025, properties leased to our tenants had an average remaining lease term of approximately four years. Factors that could affect our rental income and fee and other in the future include, but are not limited to: (i) our ability to renew or replace expiring leases and management agreements; (ii) local, regional or national economic conditions; (iii) an oversupply of, or a reduction in demand for, postal space; (iv) changes in market rental rates; (v) changes to the USPS’ current property leasing program or form of lease; and (vi) our ability to provide adequate services and maintenance at our properties and managed properties. Operating Expenses We lease our properties primarily to the USPS. The majority of our leases are modified double-net leases, whereby the tenant is responsible for utilities, certain maintenance obligations and reimbursement of property taxes and the landlord is responsible for insurance, roof and structure. Thus, an increase in costs related to the landlord’s responsibilities under these leases could negatively influence our operating results. Refer to “Lease Renewal” below for further discussion. Operating expenses generally consist of real estate taxes, property operating expenses, which consist of insurance, repairs and maintenance (other than those for which the tenant is responsible), property maintenance-related payroll and depreciation and amortization. Factors that may affect our ability to control these operating costs include but are not limited to: the cost of periodic repair, age and durability of our properties, renovation costs, landlord’s responsibilities under the leases, the cost of re-leasing space, inflation and the potential for liability under applicable laws. Recoveries from the tenant are recognized as revenue on an accrual basis over the periods in which the related expenditures are incurred. Tenant reimbursements and the related property operating expenses are recognized on a gross basis, because (i) generally, we are the primary obligor with respect to the real estate taxes and (ii) we bear the credit risk in the event the tenant does not reimburse the real estate taxes. The expenses of owning and operating a property are not necessarily reduced when circumstances, such as market factors and competition, cause a reduction in income from the property. If revenues drop, we may not be able to reduce our expenses accordingly. Costs associated with real estate investments generally will not be materially reduced even if a property is not fully occupied or other circumstances cause our revenues to decrease. As a result, if revenues decrease in the future, static operating costs may adversely affect our future cash flow and results of operations. 40 Table of Contents General and Administrative Expense General and administrative expense represents personnel costs, professional fees, legal [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/PSTL/mda/fy2025/ All MD&A years: /company/PSTL/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/PSTL/mda/fy2024/): filed 2025-02-27; accession 0001628280-25-008338 (https://www.sec.gov/Archives/edgar/data/1759774/000162828025008338/pstl-20241231.htm) - [FY 2023 MD&A](/company/PSTL/mda/fy2023/): filed 2024-02-29; accession 0001628280-24-008057 (https://www.sec.gov/Archives/edgar/data/1759774/000162828024008057/pstl-20231231.htm) - [FY 2022 MD&A](/company/PSTL/mda/fy2022/): filed 2023-03-07; accession 0001628280-23-006624 (https://www.sec.gov/Archives/edgar/data/1759774/000162828023006624/pstl-20221231.htm) - [FY 2021 MD&A](/company/PSTL/mda/fy2021/): filed 2022-03-14; accession 0001759774-22-000012 (https://www.sec.gov/Archives/edgar/data/1759774/000175977422000012/pstl-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/PSTL.md · JSON record: /company/PSTL.json · verified financials: /company/PSTL/financials.json / /company/PSTL/financials.csv · machine TOC for the whole site: /llms.txt