Andrew Spodek, CEO of Postal Realty Trust, Inc. (NYSE: PSTL), sat down for a video interview at Nareit’s REITweek: 2024 Investor Conference, held in New York from June 3-6.
Spodek highlighted both internal and external growth opportunities for the company in the latter half of the year and into 2025. Externally, he emphasized the vast market potential within the REIT’s niche, noting that the U.S. Postal Service leases around 25,000 facilities, representing a $10 to $15 billion market.
"We're the largest owner within the space. We own about 7% of the market, [and] the next 20 largest owners own around 11%," he said, adding that this leaves 80% of the market available for acquisition, positioning Postal Realty Trust as a key player poised for expansion.
Internally, Spodek pointed out the strategic advantage of the company’s short lease durations, which are typically five years, allowing the company to quickly adjust lease rates to market conditions, a critical capability in an inflationary environment.
"The last time we reported our same store NOI growth, [it] was 2.2%; and in that same vintage, we were able to get 3.5% annual escalations, which aren't taken into account in that 2.2% figure," he said.
Looking ahead, Spodek stressed the importance of patience and conservative financial management in navigating the current market. He said that the U.S. Postal Service's strong creditworthiness and the company's prudent approach to acquisitions provide a defensive investment strategy in uncertain times.