Postal Realty Trust, Inc.

Occupancy

The Company calculates occupancy by dividing the amount of the Company's owned portfolio's total Net Leasable Interior Square Feet currently under lease agreements, regardless of the actual use or occupation by the tenant of the area being leased, by the Company's owned portfolio's total Net Leasable Interior Square Feet.

Management believes that accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. As a result, the Company believes that the additive use of FFO, AFFO, the EBITDA Measures, Net Debt Measures, the NOI Measures and Occupancy, together with the required GAAP presentation where available, is widely-used by the Company’s competitors and other REITs and provides a more complete understanding of the Company’s performance and a more informed and appropriate basis on which to make investment decisions.