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What's in Store for Postal Realty (PSTL) This Earnings Season?
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Postal Realty Trust, Inc. (PSTL - Free Report) is scheduled to report first-quarter 2023 results on May 2, after market close. The company’s quarterly results are expected to reflect year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this real estate investment trust (REIT), which focuses on acquiring and managing properties leased primarily to the United States Postal Service (USPS) that are critical to America’s logistics network, posted adjusted FFO (AFFO) per share of 28 cents. The figure surpassed the Zacks Consensus Estimate of 25 cents.
Over the trailing four quarters, PSTL’s AFFO per share beat the Zacks Consensus Estimate on two occasions, met the same once and missed it in one, the average being 4.08%. This is depicted in the graph below:
During the first quarter, Postal Realty’s leases (usually a tenure of five years) with its tenants, who have had a good track record of making rent payments on time throughout all economic periods, are expected to have aided stable rental revenue growth.
Moreover, given that most of the company’s leases are double-net leases by nature, PSTL is expected to have experienced predictable cashflows during the quarter.
We also anticipate that PSTL’s weighted average lease retention rate remained high during the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter rental income is pegged at $13.9 million, up from $11.3 reported in the year-ago period.
The consensus mark for total revenues stands at $15 million, suggesting year-over-year growth of 25.8%.
Further, to capitalize on the consolidation that exists within the postal logistics network, Postal Realty is likely to have continued with its accretive acquisitions in the first quarter. Also, PSTL’s solid balance-sheet position is expected to have supported such activities.
Subsequent to the fourth-quarter end, the company has acquired 24 properties in individual or small portfolio transactions for roughly $12.7 million. The purchase price excludes closing costs.
The company’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has been revised 3.8% downward over the month. Nonetheless, the figure indicates a 4.2% increase from the prior-year quarter’s reported figure.
Earnings Whispers
Our proven model does not conclusively predict a surprise in terms of FFO per share for Postal Realty this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that’s not the case here.
Earnings ESP: PSTL has an Earnings ESP of -1.01%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks that are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Xenia Hotels & Resorts (XHR - Free Report) is scheduled to report first-quarter earnings on May 2. XHR has an Earnings ESP of +5.06% and a Zacks Rank #3 currently.
Simon Property Group (SPG - Free Report) is scheduled to report first-quarter earnings on May 2. SPG has an Earnings ESP of +1.23% and a Zacks Rank #3 currently.
Equinix (EQIX - Free Report) is scheduled to report first-quarter earnings on May 3. EQIX has an Earnings ESP of +0.44% and a Zacks Rank #2 (Buy) currently.
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What's in Store for Postal Realty (PSTL) This Earnings Season?
Postal Realty Trust, Inc. (PSTL - Free Report) is scheduled to report first-quarter 2023 results on May 2, after market close. The company’s quarterly results are expected to reflect year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this real estate investment trust (REIT), which focuses on acquiring and managing properties leased primarily to the United States Postal Service (USPS) that are critical to America’s logistics network, posted adjusted FFO (AFFO) per share of 28 cents. The figure surpassed the Zacks Consensus Estimate of 25 cents.
Over the trailing four quarters, PSTL’s AFFO per share beat the Zacks Consensus Estimate on two occasions, met the same once and missed it in one, the average being 4.08%. This is depicted in the graph below:
Postal Realty Trust, Inc. Price and EPS Surprise
Postal Realty Trust, Inc. price-eps-surprise | Postal Realty Trust, Inc. Quote
Factors at Play
During the first quarter, Postal Realty’s leases (usually a tenure of five years) with its tenants, who have had a good track record of making rent payments on time throughout all economic periods, are expected to have aided stable rental revenue growth.
Moreover, given that most of the company’s leases are double-net leases by nature, PSTL is expected to have experienced predictable cashflows during the quarter.
We also anticipate that PSTL’s weighted average lease retention rate remained high during the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter rental income is pegged at $13.9 million, up from $11.3 reported in the year-ago period.
The consensus mark for total revenues stands at $15 million, suggesting year-over-year growth of 25.8%.
Further, to capitalize on the consolidation that exists within the postal logistics network, Postal Realty is likely to have continued with its accretive acquisitions in the first quarter. Also, PSTL’s solid balance-sheet position is expected to have supported such activities.
Subsequent to the fourth-quarter end, the company has acquired 24 properties in individual or small portfolio transactions for roughly $12.7 million. The purchase price excludes closing costs.
The company’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has been revised 3.8% downward over the month. Nonetheless, the figure indicates a 4.2% increase from the prior-year quarter’s reported figure.
Earnings Whispers
Our proven model does not conclusively predict a surprise in terms of FFO per share for Postal Realty this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that’s not the case here.
Earnings ESP: PSTL has an Earnings ESP of -1.01%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PSTL currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Warrant a Look
Here are some stocks that are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Xenia Hotels & Resorts (XHR - Free Report) is scheduled to report first-quarter earnings on May 2. XHR has an Earnings ESP of +5.06% and a Zacks Rank #3 currently.
Simon Property Group (SPG - Free Report) is scheduled to report first-quarter earnings on May 2. SPG has an Earnings ESP of +1.23% and a Zacks Rank #3 currently.
Equinix (EQIX - Free Report) is scheduled to report first-quarter earnings on May 3. EQIX has an Earnings ESP of +0.44% and a Zacks Rank #2 (Buy) currently.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.