Postal Realty Trust (PSTL) offers unique exposure as the largest REIT focused on USPS-leased properties, with very high occupancy and strong internal growth potential. Short-term leases present re-leasing opportunities, especially with mark-to-market rent resets and annual escalators, supporting future AFFO and dividend growth. Risks include leverage and dependence on USPS, but legislative reforms and USPS's vital role reduce bankruptcy risk significantly and support long-term stability.
Pitney Bowes offers a margin of safety at $10.50 due to its transition from declining mail to growing package/parcel segments. PBI could see significant upside from USPS partial privatization, potentially boosting EPS to $2.50 and the share price to $20 or higher. Risks include declining mail volumes and uncertainties around USPS privatization, though PBI's focus on corporate mail and e-commerce growth mitigates this.
Shares in e-commerce companies slide as the trade war between Washington and Beijing heats up.