The Big Problem With This Fast-Growing REIT
Small real estate investment trusts (REITs) can be exciting to own because their tiny portfolios can be expanded very quickly. And, as new properties are added, the top and bottom lines, as well as dividends, can be grown quickly too. That's the story behind Postal Realty Trust (NYSE: PSTL) today. Add in a relatively large 5.5% yield, and there's even more to like. But don't jump in before you consider this very big problem.
Postal Realty Trust held its initial public offering (IPO) in May 2019. At the time it owned 270 properties. By the end of the first quarter of 2022, the REIT had increased the size of its portfolio to just over 1,000 owned locations and nearly 400 that it manages on behalf of others. That's huge, even impressive, growth.
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Source Fool.com
