The Postal Realty IPO: What You Need To Know

The Street sees challenges in the U.S. Postal Service, but this REIT sees an opportunity, and it’s inviting investors to buy in.

The IPO

Postal Realty Trust, Inc. will issue 5 million shares on the New York Stock Exchange under ticker PSTL, according to the firm’s S-11 filing. Priced between $19 and $21, the offering represents 86.8 percent of outstanding shares and is expected to bring in about $120.75 million.

Lead underwriters include Stifel, Janney Montgomery Scott, BMO Capital Markets and Height Capital Markets.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

Postal Realty considers U.S. Postal Service a critical element of the delivery network poised to profit from the growth of e-commerce.

The Maryland REIT formed in November 2018 to lease property to the USPS. As an aggregate of CEO Andrew Spodek’s other ventures, it owns 271 postal properties in 41 states.

In addition to owning real estate, it operates a taxable REIT subsidiary that provides third-party property management services for 404 more postal properties.

The Finances

In 2018, Postal Realty recorded $10.85 million in revenue amounting to $618,230 in net income. The previous year, its combined predecessors reported $6.73 million in revenue and $1.11 million in net income.

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