PSTL - Postal Realty Trust: Collect Steady Dividend Checks From The Mailman

2024-03-19 07:00:00 ET

Summary

• Postal Realty Trust (PSTL) owns mission-critical properties leased to the USPS, representing 6% of the leased market.
• PSTL had a strong year with double-digit growth in FFO and revenue, and expects to continue acquiring properties in the future.
• The company's high payout ratio and slower dividend growth are concerns, but its solid balance sheet and current valuation make it a speculative buy.
• The stock has traded as high as 19.6x and offers nice upside to its fair value of $16.
• Additionally, the REIT has impressively grown its portfolio with 223 properties acquired this FY and 2024 is expected to be roughly the same.

Introduction

How many of you are fans of old school NBA basketball and remember when the Utah Jazz were always a contending team for the championship? That's back when they had two legendary players in John Stockton and Karl "The Mailman" Malone. He received this nickname for his consistent delivery on the court night in and night out. ...

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