Skip to main content

Market Overview

Stifel Answers 'What Is Postal Realty Trust?' And 'Why Is It A Buy?'

Share:
Stifel Answers 'What Is Postal Realty Trust?' And 'Why Is It A Buy?'

Postal Realty Trust Inc (NYSE: PSTL) is a real estate investment trust that manages and owns properties leased to the U.S. Postal Service.

The Analyst

Stifel's Stephen Manaker initiated coverage of Postal Realty Trust with a Buy rating and $18 price target.

The Thesis

Postal Realty's portfolio consists of 217 owned assets across 40 spaces with an average lease length of 3.5 years, Manaker wrote in the initiation note. The portfolio today boasts a 100-percent occupancy rate, and the company's revenue is typically double-net (i.e., responsible for insurance and structural repairs).

The company should be considered as a growth REIT as it should expand through acquisitions, the analyst wrote. The postal ownership space is attractive for knowledgeable acquirers with few competitors in the market. Also, the core mission of the U.S. post office is set in law and it must continue offering service to nearly 160 million delivery points, according to U.S. law.

Postal Realty holds a key advantage over other REIT segments as the U.S. post office has an "extremely high" renewal rate north of 98 percent. This is due to difficulties associated with moving and closing conditions, and postal building codes are much more stringent than ordinary local building codes.

Price Action

Shares of Postal Realty Trust traded higher by 1.1 percent to $16.

Related Links:

Whitney Tilson: 'I Think We Are In An IPO Bubble'

IPO Outlook For The Week: Freelancers, Web Security And Pet Products

Latest Ratings for PSTL

DateFirmActionFromTo
Sep 2020JefferiesInitiates Coverage OnBuy
Aug 2020Compass PointDowngradesBuyNeutral
May 2020B. Riley SecuritiesMaintainsBuy

View More Analyst Ratings for PSTL
View the Latest Analyst Ratings

 

Related Articles (PSTL)

View Comments and Join the Discussion!

Posted-In: Postal Office Stephen ManakerAnalyst Color REIT Price Target Initiation Analyst Ratings Real Estate

Latest Ratings

StockFirmActionPT
PHXSeaport GlobalInitiates Coverage On
AFCGLake StreetInitiates Coverage On29.0
OSSNoble Capital MarketsUpgrades7.0
NCNOGabelli & Co.Upgrades
HAECJS SecuritiesUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com