What Postal Realty Trust, Inc. told the SEC could break it.

Postal Realty Trust's revenue is overwhelmingly concentrated in one tenant: as of December 31, 2025 its 1,917 properties were leased primarily to the USPS, so its rental income depends almost entirely on a single, government-affiliated tenant whose mail volumes and finances are under structural pressure (its competitive parcel volumes hinge on customers like UPS, FedEx and Amazon); USPS financial distress, a decision not to renew expiring leases (five properties were already in holdover at year-end), or rent non-payment would have a material adverse effect on the company's results, and its short ~4-year weighted-average remaining lease term heightens renewal risk.

“As of December 31, 2025, we owned a portfolio of 1,917 properties located in 49 states and one territory and leased primarily to the USPS.”

While Postal Realty's 1,917-property portfolio is spread across 49 states and one territory, its single-largest state exposure is Pennsylvania, which accounted for approximately 10.4% of total rental income for the year ended December 31, 2025; adverse economic, real-estate or USPS-network changes concentrated in Pennsylvania would have an outsized effect on its rental revenue relative to other states.

“For the year ended December 31, 2025, approximately 10.4% of our total rental income was concentrated in Pennsylvania.”

Postal Realty's tax efficiency depends on maintaining REIT status, which requires meeting, on a continuing basis through actual annual operating results, qualification tests set forth in federal tax law (for example, at least 95% of gross income each year must come from qualifying sources such as rents); these tests depend on factual matters not entirely within its control, and even a minor, technical or inadvertent mistake could jeopardize its REIT status, exposing it to corporate-level income tax and reducing cash available for distributions.

“Moreover, our qualification and taxation as a REIT depend upon our ability to meet on a continuing basis, through actual annual operating results, certain qualification tests set forth in the federal tax laws.”