During #PSTL - Postals Realty Trust’s 2nd quarter report they called out [The Company owns and manages 271 postal properties in 41 states comprising 871,843 square feet, as of June 30, 2019. In addition, the Company provides fee-based third party property management services for an additional 404 postal properties leased to the USPS. The portfolio was 100.0% occupied with a weighted average lease term of 3.0 years and a weighted average rental rate of $9.70 per square foot at June 30, 2019.]. I like that PSTL offers 3rd party property management, that should provide nice cash flow without the high fixed costs of owning the properties. However, I was surprised to learn of the concise 3-year contract for its properties. I was under the impression that postal contracts would be much longer, and in fact this is a shorter average lease term than that of retail and commercial reits (at least of the ones I can recall). So should this be a concern? - LLNN - 2019-08-18 02:13:50 - See full comment
There is a new Small cap (actually I think its micro-cap) REIT called Postal Realty Trust #PSTL, they focus or will focus on owning properties rented by the US postal service. Seem interesting, not a lot of market data on it yet, as it had its IPO last week. But I'm usually interested in REITs that serve the US government. - Gekko5 - 2019-05-23 00:05:47 - See full comment
The Company is an internally managed real estate company that will own and manage properties leased to the United States Postal Service, or USPS. Upon completion of the offering and related formation transactions, the Company will own and manage an initial portfolio of 271 postal properties located in 41 states comprising 871,843 net leasable interior square feet, all of which are leased to the USPS, and through its taxable REIT subsidiary will provide fee-based third party property management services for an additional 404 postal properties leased to the USPS and owned by family members of Andrew Spodek, the Company’s chief executive officer, and their partners. We believe our ownership and continuing acquisition of properties leased to the USPS, as well as management of postal properties owned by third parties and leased to the USPS, is an attractive investment opportunity for, among others, the following reasons:
The strategic importance of the USPS’s extensive national network to the nation’s infrastructure and growth of e commerce;
Attractive cash flows from USPS-leased properties through stable occupancy and consistent rent growth across various economic cycles;
Fragmented ownership and an aging demographic of current owners of USPS-leased properties present an attractive opportunity to consolidate ownership of an institutional asset class that currently is principally non-institutionally owned; and
Opportunity to increase returns through professional property management, asset management and consulting services.