Operating cash flow of $12.8M in 2026Q3 exceeded FFO of $12.6M and free cash flow margins held between 36.1% and 49.4%, though AFFO covered dividends of $9.3M by only about 1.3x and the dividend-to-AFFO ratio of 0.73 leaves limited room for error.
Postal Realty Trust, Inc. (PSTL) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Cash from Operations | 49.12M | 44.51M | 33.5M | 28.43M | 24.59M | 17.09M | 9.4M | 2.86M | 2.73M | 2.29M |
| Operating CF Growth % | 64.4% | 32.84% | 17.86% | 15.6% | 43.85% | 81.94% | 228.68% | 4.75% | 19.07% | - |
| Operating CF / Revenue % | 44.01% | 46.45% | 43.87% | 44.62% | 46.11% | 42.8% | 38.44% | 25.32% | 35.51% | 34.07% |
| Net Income | 20.48M | 18.1M | 8.32M | 3.71M | 4.74M | 2.06M | -640.88K | -1.55M | 1.15M | 1.11M |
| Depreciation & Amortization | 25.71M | 23.99M | 22.2M | 17.28M | 15.54M | 13.99M | 7.9M | 3.8M | 1.54M | 1.42M |
| Stock-Based Compensation | 7.8M | 6.31M | 6.38M | 5.83M | 4.72M | 3.72M | 2.36M | 0 | 0 | 0 |
| Other Non-Cash Items | -7.25M | -5.77M | -5.57M | 1.98M | -812K | 199K | 309.46K | 824.27K | 59.44K | 17.19K |
| Working Capital Changes | -1.25M | 1.88M | 2.17M | -373K | 399K | -2.87M | -529.85K | -214.27K | 251.96K | 437.27K |
| Cash from Investing | -187.33M | -123.69M | -79.15M | -72.61M | -120.15M | -106.72M | -126.15M | -72.65M | -2.89M | -2.07M |
| Acquisitions (Net) | -154.96M | 0 | 0 | 0 | 0 | 0 | 969.91K | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -116.5M | 0 | -516.82K | -72.5M | 0 | 0 |
| Sale of Investments | 50K | 0 | 0 | 0 | 0 | 0 | 1.77K | 0 | 0 | 0 |
| Other Investing | -27.88M | -116.75M | -76.37M | -72.61M | 35K | -106.72M | -125.64M | 0 | -2.79M | -2.07M |
| Cash from Financing | 138.24M | 78.74M | 45.32M | 45.01M | 90.57M | 93.39M | 106.84M | 82.12M | 328.23K | -518.21K |
| Dividends Paid | -34.81M | -30.75M | -27.99M | -19.7M | -17.53M | -12.02M | -6M | -3.16M | -5.28M | -5.3M |
| Common Dividends | -34.81M | -30.75M | -27.99M | -19.7M | -17.53M | -12.02M | -6M | 0 | -5.28M | -5.3M |
| Debt Issuance (Net) | 1.83M | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 629.09K | -614.4K |
| Share Repurchases | 0 | -348K | -700K | -467K | -383K | -242K | -206K | 0 | 0 | 0 |
| Other Financing | -4.11M | -2.28M | -366K | 21.28M | -4.86M | 134.49M | 45.26M | -240K | 4.97M | 5.39M |
| Net Change in Cash | 30K | -446K | -324K | 825K | -4.98M | 3.75M | -9.91M | 13.18M | 167.46K | -301.33K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 861.88K | 0 | 0 |
| Cash at Beginning | 2.8M | 2.54M | 2.87M | 2.04M | 7.03M | 3.27M | 13.18M | 0 | 694.42K | 995.75K |
| Cash at End | 2.37M | 2.1M | 2.54M | 2.87M | 2.04M | 7.03M | 3.27M | 13.18M | 861.88K | 694.42K |
| Free Cash Flow | 44.57M | 37.57M | 30.73M | 25.56M | 20.9M | 15.2M | 8.43M | 2.71M | 2.62M | 2.29M |
| FCF Growth % | 21.72% | 22.26% | 20.22% | 22.27% | 37.57% | 80.34% | 211.26% | 3.13% | 14.53% | - |
| FCF / Revenue % | 39.93% | 39.21% | 40.23% | 40.12% | 39.2% | 38.05% | 34.47% | 23.98% | 34.15% | 34.07% |
Quick answers to the most common questions about buying PSTL stock.
Postal Realty Trust, Inc. (PSTL) generated $44.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Postal Realty Trust, Inc. (PSTL) generated $37.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Postal Realty Trust, Inc. (PSTL) spent $6.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Postal Realty Trust, Inc. (PSTL) returned $30.8M to shareholders via cash dividends and spent $0.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Dividend coverage thinning from AFFO
Metrics are mathematically derived from official filings.
AFFO Coverage Tightens Despite Growth
Based on reported quarterly figures, PSTL's dividend payout ratio against AFFO moved from 0.56 in 2024Q4 to 0.73 in 2026Q3, with AFFO of $11.9M covering $9.3M of dividends in the latest quarter.
The payout ratio has fluctuated between roughly 0.56 and 1.09 over the ten quarters reviewed, with the 2024 readings above 1.0 suggesting the dividend was not fully covered by AFFO in those periods. The most recent quarters show a healthier retained AFFO buffer, which appears to reflect rising AFFO rather than any reduction in the distribution. Investors should monitor whether the coverage cushion holds if acquisition-driven share issuance raises the dividend base faster than AFFO grows.
Equity Raises Fund Acquisition Pipeline
As reported in the financial statements, PSTL raised $110 million of equity year-to-date, and FFO per share growth depends on whether that deployment is accretive to existing holders.
The quarterly cash flow data shows positive FCF in every reported period, yet FCF is modest relative to dividends paid, so external capital appears necessary to sustain the distribution and the acquisition program. This reliance on capital markets suggests that per-share cash earnings could be diluted if deployment lags the equity issuance. Investors should watch whether the incremental FFO from new properties exceeds the dilution from new shares.
FFO Exceeds Operating Cash Flow Consistently
According to the reported quarterly data, PSTL's FFO-to-net-income ratio ranged from 2.04 to 12.10, while operating cash flow of $12.8M in 2026Q3 sat above FFO of $12.6M.
The large FFO-to-net-income multiples reflect real estate depreciation that is non-cash, so FFO is the more relevant cash earnings measure than GAAP net income for this business. Operating cash flow tracking close to FFO in recent quarters suggests the conversion is reasonably clean. Investors should monitor whether straight-line rent or working capital movements distort this relationship in future periods.
Low Capex Intensity Flatters Free Cash Flow
Reported capital expenditures remained below $2.3M per quarter across the period, leaving free cash flow margins between 36.1% and 49.4%, though the reported capex line may not capture all recurring leasing and maintenance costs.
The modest capex relative to operating cash flow reflects a portfolio of small, relatively low-maintenance postal facilities, but AFFO should be used to judge true distributable cash after recurring leasing and maintenance costs. Capex fell sharply from $2.3M in 2025Q2 to under $1M in 2026, which may indicate timing effects rather than a durable reduction. Investors should watch whether recurring capital needs rise as the portfolio ages.
Depreciation Masks Cash Earnings Power
As reported in the quarterly filings, PSTL's net income of $5.6M in 2026Q3 compares with FFO of $12.6M, a gap of roughly $7M per quarter largely driven by non-cash real estate depreciation.
The gap between net income and FFO is large and persistent, so GAAP earnings understate the cash generated by the owned portfolio. This distortion means price-to-earnings comparisons on GAAP figures are less meaningful than AFFO-based multiples. Investors should treat the depreciation add-back as economically real only to the extent recurring capex is adequately reflected in AFFO.
Cash Metrics May Overstate Distributable Cash
Based on reported figures, PSTL's FFO and AFFO add back depreciation and may exclude recurring leasing costs, so headline cash coverage could be flattered relative to true distributable cash.
Reported FFO and AFFO depend on management's adjustments, and the capex line in the cash flow data is not clearly split between maintenance and acquisition spending, limiting verification. The 2024 quarters with payout ratios above 1.0 suggest coverage has been inconsistent, and recent improvement may partly reflect timing of capital spending. Investors should verify the AFFO reconciliation against full filings before treating the current coverage cushion as durable.