CORRECTION - Postal Realty Trust Declares Fourth Quarter 2024 Dividend

Rhea-AI Summary

Postal Realty Trust (NYSE: PSTL) has announced a quarterly dividend increase of 1.0% to $0.2425 per share for Q4 2024, marking its seventh consecutive year of dividend growth. The dividend will be paid on February 28, 2025, to stockholders of record as of February 14, 2025.

The company, which owns and manages over 2,000 properties primarily leased to the United States Postal Service, also provided the tax characteristics of its 2024 dividends. For the tax year 2024, PSTL paid total dividends of $0.9600 per share, consisting of $0.6552 in ordinary dividends, $0.0088 in qualified dividends, $0.0088 in capital gain distributions, and $0.2960 in non-dividend distributions.

Positive

• Increased quarterly dividend by 1.0% to $0.2425 per share
• Seventh consecutive year of dividend growth
• Maintains stable dividend distribution with $0.96 total dividends paid in 2024

Negative

• Modest 1.0% dividend growth rate indicates near-term growth

Insights

Financial Analyst

The 1% dividend increase to $0.2425 per share, while modest, signals important underlying strength in Postal Realty Trust's business model. This seventh consecutive annual increase demonstrates the resilience of their USPS-focused portfolio, particularly noteworthy given the specialized nature of their assets and single-tenant concentration.

The tax characteristics reveal compelling insights for investors. Of the $0.96 total distributions in 2024, 68.25% qualified as ordinary dividends, with 30.83% classified as return of capital. The substantial return of capital component effectively defers taxation by reducing the cost basis of shares, which can be advantageous for long-term holders but also raises questions about distribution sustainability.

Particularly notable is the 67.33% of dividends qualifying for Section 199A treatment ($0.6464 of the $0.96 total distribution). This qualification allows eligible taxpayers to deduct up to 20% of this portion, enhancing the after-tax yield for qualifying shareholders.

The minimal qualified dividend (0.92%) and capital gains components reflect the REIT's operating structure and asset management strategy, typical for a real estate investment trust focused on triple-net leased properties. The high ordinary dividend percentage, combined with Section 199A qualification, makes this particularly attractive for tax-advantaged accounts and investors in higher tax brackets seeking reliable income streams.

– Increases Dividend for Seventh Consecutive Year –

– Provides Tax Characteristics of 2024 Dividends –

CEDARHURST, N.Y., Jan. 31, 2025 (GLOBE NEWSWIRE) -- This press release is being issued to replace in its entirety a press release issued on January 30, 2025 by Postal Realty Trust, Inc. that contained a typographical error regarding the Section 199A Dividend amount.

Postal Realty Trust, Inc. (NYSE: PSTL) (the “Company”), an internally managed real estate investment trust that owns and manages over 2,000 properties leased primarily to the United States Postal Service (the “USPS”), ranging from last-mile post offices to industrial facilities, announced today that its board of directors has approved a quarterly dividend on the Company’s Class A common stock in the amount of $0.2425 per share. This represents a 1.0% increase from the fourth quarter 2023 dividend. The dividend will be payable on February 28, 2025 to stockholders of record as of the close of business on February 14, 2025.

Tax Treatment of 2024 Dividends

The following table summarizes, for income tax purposes, the nature of the cash dividends paid to the Company’s Class A common stockholders during the tax year ended December 31, 2024:

Record Date	Payment Date	Distribution per Share		Ordinary Dividends		Qualified Dividends (1)		Capital Gain Distributions (2)		Unrecaptured Sec 1250 Gain (3)		Section 897 Capital Gain		Non-Dividend Distributions (4)		Section 199A Dividends (1)
2/16/2024	2/29/2024	$0.2400		$0.1638		$0.0022		$0.0022		$0.0001		$0.0022		$0.0740		$0.1616
5/8/2024	5/31/2024	$0.2400		$0.1638		$0.0022		$0.0022		$0.0001		$0.0022		$0.0740		$0.1616
8/2/2024	8/30/2024	$0.2400		$0.1638		$0.0022		$0.0022		$0.0001		$0.0022		$0.0740		$0.1616
11/4/2024	11/29/2024	$0.2400		$0.1638		$0.0022		$0.0022		$0.0001		$0.0022		$0.0740		$0.1616
Total		$0.9600		$0.6552		$0.0088		$0.0088		$0.0004		$0.0088		$0.2960		$0.6464

(1) (2) (3) (4)	Qualified and Section 199A dividends are a subset of, and included in, the taxable ordinary dividends amount. 100% of the capital gain relates to assets held for more than three years. Unrecaptured Section 1250 gains are a subset of, and included in, the total capital gains amount. Represents a return of stockholders’ original investment.

The information in the table above is based on the preliminary results of work on the tax filings of the Company and is subject to correction or adjustment when the filings are completed. No material change in these classifications is expected. The tax information above should not be construed as tax advice and is not a substitute for careful tax planning and analysis. Stockholders are encouraged to consult with their own tax advisors regarding the specific federal, state, local, foreign and other tax consequences of ownership of the Company’s Class A common stock and the specific tax treatment of distributions on the Company’s Class A common stock.

About Postal Realty Trust, Inc.

Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 2,000 postal properties leased primarily to the USPS.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements.” Forward-looking statements include statements that are based on various assumptions (some of which are beyond the Company’s control) and may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the USPS’s terminations or non-renewals of leases, changes in demand for postal services delivered by the USPS, the solvency and financial health of the USPS, competitive, financial market and regulatory conditions, general real estate market conditions, the Company’s competitive environment and other factors set forth under “Risk Factors” in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Contact:

Investor Relations and Media Relations

Email: Investorrelations@postalrealtytrust.com

Phone: (516) 232-8900

FAQ

What is Postal Realty Trust's Q4 2024 dividend amount and payment date?

Postal Realty Trust's Q4 2024 dividend is $0.2425 per share, payable on February 28, 2025, to stockholders of record as of February 14, 2025.

How much did PSTL increase its dividend in Q4 2024?

PSTL increased its dividend by 1.0% compared to the fourth quarter of 2023.

What was PSTL's total dividend distribution for 2024?

PSTL's total dividend distribution for 2024 was $0.9600 per share.

How are PSTL's 2024 dividends classified for tax purposes?

PSTL's 2024 dividends consisted of $0.6552 in ordinary dividends, $0.0088 in qualified dividends, $0.0088 in capital gain distributions, and $0.2960 in non-dividend distributions.

How many consecutive years has PSTL increased its dividend?

Postal Realty Trust has increased its dividend for seven consecutive years.