Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $6.95B
• Dividend Yield: 3.88%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.31
• Revenue Growth: 24.60%
• EPS Growth: 8.05%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.34
• Shares Outstanding: 209,879,820
• 10 Day Avg. Volume: 1,964,796
• 30 Day Avg. Volume: 1,999,704
• PEG Ratio: 2.09
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 10.55
• P/FCF Ratio: 15.56
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 16.71
• Enterprise Value/Gross Profit: 19.88
• Enterprise Value/Ebitda: 18.09
• 1Y Price Target: $37.00
• Price Target Upside: 12.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.36
• Revenue Forecast (FY): $608.80M

• Rating: 80 Outperform
• Price Target: $39.00 ▲(18.15% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by strong financial performance (high profitability and robust cash flow growth) and a favorable earnings outlook (raised 2026 AFFO guidance alongside very high occupancy and solid credit metrics). Technicals are supportive but somewhat overextended (RSI/Stochastics elevated). Valuation is the main drag due to a higher P/E despite a moderate dividend yield.

Positive Factors

Cash generation

Sustained growth in operating and free cash flow to $381.1M by 2025 indicates high-quality, repeatable cash generation from net leases. Strong cash conversion supports dividend coverage, AFFO growth, and acquisition funding, reducing reliance on volatile capital markets over the medium term.

Long lease duration & occupancy

Extremely high occupancy combined with a ~14-year weighted average lease term and minimal near-term expirations provide durable revenue visibility. Long-duration, single-tenant net leases limit rollover risk and underpin predictable AFFO and dividend capacity across multiple years.

Tenant diversification & coverage

Broad tenant mix with low top-tenant concentration and strong rent coverage reduces idiosyncratic credit risk. A sub‑1% watch list and multi-tenant diversification lower expected vacancy and loss rates, supporting stable cash flows and lower volatility in AFFO over the medium term.

Negative Factors

Balance-sheet inconsistency

A material year-over-year reporting anomaly in total debt undermines clarity about leverage and financial flexibility. Uncertainty around true debt levels complicates assessment of refinancing risk, covenant headroom and funding capacity for the REIT’s planned $1.0B–$1.4B investment program.

Modest same-store rent growth

Low single-digit same-store rent growth limits organic revenue expansion from existing assets and places greater dependence on acquisitions and higher initial yields to drive AFFO per share. Over time, tepid escalations can cap margin and cash-flow upside.

Sector concentration (car washes)

A near‑double‑digit exposure to one subsector raises portfolio sensitivity to cyclical or structural headwinds in that industry. Even if moderated, concentrated exposure can amplify correlated tenant stress and impair portfolio resilience under adverse sector conditions.

Essential Properties Realty Business Overview & Revenue Model

Company Description

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is headquartered in Princeton, New Jersey.

How the Company Makes Money

Essential Properties Realty Trust generates revenue primarily through rental income from its portfolio of net lease properties. The company enters into long-term leases with tenants, which typically include fixed rental escalations, ensuring consistent cash flow over time. Additional revenue streams may come from lease renewals and increases in rental rates as market conditions improve. EPRT also benefits from its strategic focus on essential businesses, which tend to be more resilient during economic downturns, thus maintaining occupancy rates and minimizing tenant turnover. Partnerships with established brands and businesses in essential sectors further bolster its earnings, as these relationships often lead to stable, long-term leases.

Essential Properties Realty Financial Statement Overview

Summary

Strong multi-year expansion with revenue rising from $164.0M (2020) to $561.2M (2025), consistently very high gross margins (~97–99%), and strong cash generation with operating cash flow/free cash flow growing to $381.1M (2025). Offsetting factors include a profitability step-down in 2025 vs. 2023, a near-flat growth year in 2024, and a major 2025 leverage-data inconsistency (total debt reported at $0 vs. $2.13B in 2024) that adds uncertainty to balance-sheet trend interpretation.

Income Statement

Revenue has compounded strongly from $164.0M (2020) to $561.2M (2025), and profitability is consistently high with gross margins near ~97–99% and net margins generally in the ~42–53% range. That said, growth decelerated sharply in 2024 (near-flat year) before re-accelerating in 2025, and there is a clear profitability step-down in 2025 versus 2023 (net margin ~45% vs ~53%), indicating some pressure versus peak levels.

Balance Sheet

The balance sheet shows meaningful scale-up in assets and equity over time, with returns on equity holding in the mid-single-digits (roughly ~5–6%). Leverage appears moderate through 2020–2024 (debt-to-equity around ~0.55–0.60), but 2025 reports total debt at $0 with a 0.0 debt-to-equity reading, which is a major year-over-year change versus 2024 ($2.13B debt) and introduces data consistency risk (or suggests an unusual capital structure shift) that tempers confidence in the trend.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow rise steadily from $99.4M (2020) to $381.1M (2025), and free cash flow consistently matches net income (conversion appears very clean in the provided data). The main watch-out is volatility in reported growth rates—especially the very large free-cash-flow growth figure in 2025—suggesting potential non-recurring drivers or lumpy period effects even though the multi-year trajectory remains strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	561.89M	449.61M	359.60M	286.51M	230.23M
Gross Profit	472.26M	444.61M	354.93M	283.05M	224.47M
EBITDA	518.96M	404.97M	352.05M	253.50M	199.95M
Net Income	253.01M	203.00M	190.71M	134.13M	95.72M
Balance Sheet
Total Assets	6.86B	5.80B	4.77B	4.00B	3.30B
Cash, Cash Equivalents and Short-Term Investments	60.18M	40.71M	39.81M	62.34M	59.76M
Total Debt	2.52B	2.13B	1.69B	1.44B	1.19B
Total Liabilities	2.66B	2.23B	1.78B	1.50B	1.25B
Stockholders Equity	4.20B	3.56B	2.98B	2.49B	2.04B
Cash Flow
Free Cash Flow	381.08M	308.48M	254.57M	211.02M	167.39M
Operating Cash Flow	381.08M	308.48M	254.57M	211.02M	167.39M
Investing Cash Flow	-1.15B	-1.12B	-857.13M	-706.08M	-829.68M
Financing Cash Flow	798.35M	810.70M	580.01M	506.80M	689.06M

Essential Properties Realty Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPRT, the sentiment is Neutral. The current price of 33.01 is below the 20-day moving average (MA) of 33.45, above the 50-day MA of 31.68, and above the 200-day MA of 30.88, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 8.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EPRT.

Essential Properties Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPRT	80 Outperform	$6.95B	23.43	6.45%	3.88%	24.60%	8.05%
UE	73 Outperform	$2.77B	25.79	8.71%	3.99%	5.29%	-60.36%
WPC	72 Outperform	$15.72B	30.43	5.68%	5.51%	5.59%	-34.75%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BNL	63 Neutral	$3.76B	31.75	3.41%	6.72%	3.87%	-37.59%
GNL	61 Neutral	$2.06B	-8.52	-12.68%	10.29%	-28.94%	-28.24%

Essential Properties Realty Corporate Events

Essential Properties Realty Declares Quarterly 2026 Cash Dividend

On March 6, 2026, Essential Properties Realty Trust, Inc. said its board declared a quarterly cash dividend of $0.31 per share of common stock for the first quarter of 2026, equivalent to an annualized payout of $1.24 per share. The dividend will be paid on April 14, 2026, to shareholders of record as of March 31, 2026, underscoring the REIT’s continued focus on returning cash to investors from its broadly diversified, long-term net lease portfolio.

The announcement, released on March 9, 2026, signals ongoing confidence in the company’s cash flow visibility stemming from its largely fully leased portfolio and long-duration leases. For income-focused investors, the move reaffirms the stock’s appeal as a yield-oriented vehicle tied to service and experience-based real estate across most of the U.S. market.

The most recent analyst rating on (EPRT) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Highlights Strong Portfolio and Growth

On March 2, 2026, Essential Properties Realty Trust released an investor presentation outlining the current health of its portfolio and capital structure. The REIT reported a 99.7% leased net lease portfolio as of Dec. 31, 2025, with average unit-level rent coverage of 3.6 times, limited lease expirations through 2030, and a highly diversified tenant mix, as its top 10 tenants account for just 16.5% of annual base rent.

The company highlighted a conservatively financed, investment-grade balance sheet with pro forma net debt to annualized adjusted EBITDAre of 3.1 times, about $1.8 billion of liquidity, and no secured debt. It also detailed ongoing growth, including roughly $248 million of investment closings and about $3 million of dispositions completed between Jan. 1 and Feb. 26, 2026, along with additional transactions under contract, underscoring continued execution of its disciplined external growth and capital recycling strategy.

The most recent analyst rating on (EPRT) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Announces Major Forward Equity Offering

On February 17, 2026, Essential Properties Realty Trust, Inc. and its operating partnership entered into an underwriting agreement with a syndicate of banks for a forward equity offering of 12,499,999 shares of common stock, including the full exercise of the underwriters’ option, with the transaction closing on February 19, 2026. In parallel, the company executed forward sale agreements under which forward sellers borrowed and sold the shares on February 19, 2026, and Essential Properties expects to physically settle these contracts by February 17, 2028, contributing the net cash proceeds to its operating partnership for general corporate purposes and potential future investments, which may bolster its balance sheet and fund continued portfolio growth.

The most recent analyst rating on (EPRT) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Raises 2026 AFFO Guidance Outlook

Essential Properties Realty Trust reported that for the fourth quarter of 2025, net income per share rose 13% to $0.34 and AFFO per share increased 9% to $0.49, supported by $295.8 million of new investments at a 7.7% cash cap rate and $48.1 million of dispositions at a 6.9% cap rate. For full-year 2025, the REIT invested $1.3 billion across 270 properties at a 7.9% cash cap rate, lifted net income per share 11% to $1.28 and AFFO per share 9% to $1.89, raised substantial equity and $400 million of 10-year debt, and entered 2026 with pro forma net debt to annualized adjusted EBITDAre of 3.8x and increased 2026 AFFO guidance to $1.99–$2.04 per share.

The company’s portfolio at year-end 2025 comprised 2,300 largely service-oriented assets with a 14.4-year weighted average lease term, 3.6x rent coverage and 99.7% occupancy, while top-10 tenants represented 16.5% of cash rent and 66.8% of cash rent was under master leases. Management highlighted that scaling of the asset base, driven largely by sale-leaseback transactions and repeat-relationship deals, underpinned AFFO growth and positions the REIT for continued expansion, reinforced by $239.2 million of additional investments completed after the quarter end and an upgraded 2026 outlook.

The most recent analyst rating on (EPRT) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty CFO Appointment Announced

Essential Properties Realty Trust, Inc. announced on December 16, 2025, the appointment of Robert W. Salisbury, CFA as its new Executive Vice President and Chief Financial Officer, effective January 1, 2026. Mr. Salisbury, who joined the company in 2023, has extensive experience in capital markets and investment functions, having previously held senior roles at Almanac Realty Investors, Citadel Investment Group, and other major firms. His promotion follows the resignation of Mark E. Patten, the outgoing CFO, effective December 31, 2025, who is leaving to pursue other professional opportunities. The appointment reflects a strategic choice for the company, given Mr. Salisbury’s demonstrated leadership skills and familiarity with operational strategies, which could position Essential Properties Realty for continued success in its sector.

The most recent analyst rating on (EPRT) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.