Postal Realty Trust of Cedarhurst is expected to go public on Friday. The real estate investment trust is seeking to raise $100 million through the sale of 5 million shares, according to a securities filing.
The company, founded in November, filed preliminary documents for an initial public offering, according to Securities and Exchange Commission records.
Postal Realty Trust owns and manages properties leased to the U.S. Postal Service. Many of the post office properties owned by the business are in Pennsylvania, Oklahoma, Texas, Illinois, Michigan, Wisconsin, Arkansas and Massachusetts.
"Upon completion of this offering ... we will own and manage an initial portfolio of 271 postal properties located in 40 states comprising 871,843 net leasable interior square feet, all of which are leased to the USPS," the company said in a statement.
Postal Realty Trust listed a possible reduction of USPS' workforce as a business risk, stating that the postal service's need to streamline its operations in response to declining mail volume may result in significant costs, according to records filed by the company.
Real estate investment trusts, or REITs, must return a majority of their profits to investors.
Andrew Spodek, CEO and board member of Postal Realty Trust, is also on the board of directors of the Association of United States Postal Lessors, a lobbying group based in Scottsdale, Arizona. He did not return calls seeking comment.
Postal Realty's shares would be listed on the New York Stock Exchange and trade under ticker symbol PSTL. The stock is expected to be priced at $19 to $21 per share, the filing shows.
Postal Realty had revenue of $7.7 million and posted a profit of $1.1 million in the past 12 months, the company reported in the filing.
IPO proceeds would be used to acquire properties, repay mortgage debt, pay distributions, finance operations and make further acquisitions, according to the filing.