Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $6.08B
• Dividend Yield: 3.89%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.46
• Revenue Growth: 24.60%
• EPS Growth: 8.05%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.33
• Shares Outstanding: 198,144,550
• 10 Day Avg. Volume: 2,484,963
• 30 Day Avg. Volume: 2,042,675
• PEG Ratio: -3.72
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 12.10
• P/FCF Ratio: 17.63
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 16.13
• Enterprise Value/Gross Profit: 16.37
• Enterprise Value/Ebitda: 17.38
• 1Y Price Target: $35.40
• Price Target Upside: 15.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• Price Target: $36.00 ▲(17.65% Upside)

Essential Properties Realty Trust demonstrates strong financial performance and positive earnings call sentiment, driving confidence in future growth. Technical indicators show a positive trend, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is fairly valued, with an attractive dividend yield. Overall, the company is well-positioned in the REIT sector, but investors should monitor debt levels and potential cap rate compression.

Positive Factors

Revenue Growth

Consistent revenue growth and high profit margins indicate strong demand for EPRT's properties and effective cost management, supporting long-term financial health.

Investment Strategy

A robust investment strategy with high yields ensures EPRT's capacity to generate strong returns, enhancing its competitive position in the REIT sector.

Financial Guidance

Increased financial guidance reflects management's confidence in sustained growth and operational performance, signaling a positive outlook for investors.

Negative Factors

Debt Levels

Rising debt levels may strain financial flexibility and increase risk, potentially impacting EPRT's ability to invest in growth opportunities.

G&A Expenses

Rising G&A expenses can erode profitability and indicate inefficiencies, which may affect EPRT's cost structure and long-term margins.

Cap Rate Compression

Potential cap rate compression may reduce future investment returns, challenging EPRT's ability to maintain high yield spreads and profitability.

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 the leasing of its real estate holdings. The company enters into long-term net leases with tenants, whereby the tenants are responsible for property expenses such as maintenance, property taxes, and insurance, reducing EPRT's operational costs. The main revenue stream comes from rental income, which is collected monthly and often includes contractual rent increases over the lease term. Additionally, EPRT may benefit from property appreciation over time, enhancing the overall value of its portfolio. The company may also engage in strategic partnerships or joint ventures that can provide additional capital or access to new investment opportunities, further contributing to its earnings.

Essential Properties Realty Financial Statement Overview

Summary

Essential Properties Realty demonstrates strong financial performance with impressive revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is well-structured with moderate leverage and a solid equity position, indicating overall financial health and growth potential.

Income Statement

Essential Properties Realty has shown impressive revenue growth, with a notable increase from $359.6 million in 2023 to $504.1 million in the TTM period ending June 2025. Gross Profit Margin is strong at approximately 98.7% for TTM, indicating excellent cost management. Net Profit Margin is solid at 44.4%, and EBIT Margin stands at 62.8%, reflecting high operational efficiency. EBITDA Margin is robust at 80.7%. The company demonstrates strong profitability and growth trends.

Balance Sheet

The Debt-to-Equity Ratio is stable at 0.61 for TTM, suggesting moderate leverage. Return on Equity is strong at 5.85%, indicating efficient use of equity capital. The Equity Ratio stands at 60.9%, showcasing a solid equity base. The company's balance sheet is well-structured, with a healthy equity position and manageable debt levels.

Cash Flow

Operating Cash Flow to Net Income Ratio is healthy at 1.51 for TTM, indicating strong cash generation relative to net income. Free Cash Flow growth is positive, with an increase to $337.5 million in TTM. The Free Cash Flow to Net Income Ratio is robust at 1.51, reflecting strong liquidity and cash management. The company maintains solid cash flow performance, supporting its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	532.02M	449.61M	359.60M	286.51M	230.23M	164.01M
Gross Profit	524.14M	444.61M	354.93M	283.05M	224.47M	160.13M
EBITDA	493.95M	404.97M	352.05M	279.50M	199.95M	128.15M
Net Income	240.31M	203.00M	190.71M	134.13M	95.72M	42.27M
Balance Sheet
Total Assets	6.61B	5.80B	4.77B	4.00B	3.30B	2.49B
Cash, Cash Equivalents and Short-Term Investments	23.84M	40.71M	39.81M	62.34M	59.76M	26.60M
Total Debt	2.65B	2.13B	1.69B	1.44B	1.19B	825.45M
Total Liabilities	2.77B	2.23B	1.78B	1.50B	1.25B	906.85M
Stockholders Equity	3.84B	3.56B	2.98B	2.49B	2.04B	1.57B
Cash Flow
Free Cash Flow	363.00M	308.48M	254.57M	-517.71M	167.39M	99.39M
Operating Cash Flow	363.00M	308.48M	254.57M	211.02M	167.39M	99.39M
Investing Cash Flow	-1.19B	-1.12B	-857.13M	-706.08M	-829.68M	-545.51M
Financing Cash Flow	813.59M	810.70M	580.01M	506.80M	689.06M	457.79M

Essential Properties Realty Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 30.6 is above the 20-day moving average (MA) of 30.31, above the 50-day MA of 30.17, and below the 200-day MA of 30.78, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 48.30 is Neutral, 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	―	$6.08B	24.66	6.84%	3.89%	24.60%	8.05%
WPC	―	$14.63B	43.90	3.99%	5.42%	0.23%	-41.66%
UE	―	$2.69B	24.40	8.46%	3.61%	6.09%	-65.94%
BNL	―	$3.50B	36.12	3.32%	6.17%	2.74%	-37.41%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AHH	―	$536.26M	72.72	3.55%	9.26%	-25.73%	―
GNL	―	$1.70B	―	-11.87%	10.96%	-11.06%	29.36%

Essential Properties Realty Corporate Events

Essential Properties Realty Trust Q3 2025 Earnings Call Highlights

Essential Properties Realty Trust’s recent earnings call conveyed a positive sentiment, underscored by strong investment execution, robust portfolio performance, and favorable financial metrics. The company expressed confidence in its future growth through increased guidance. Nonetheless, there were concerns regarding rising G&A expenses and potential cap rate compression.

Essential Properties Realty Trust Reports Strong Q3 Growth

Essential Properties Realty Trust, Inc. is a real estate investment trust (REIT) that acquires, owns, and manages primarily single-tenant properties net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. Based in Princeton, New Jersey, the company focuses on freestanding, single-tenant commercial real estate facilities.

Essential Properties Realty Reports Strong Q3 2025 Results

Essential Properties Realty Trust, Inc. reported its third-quarter 2025 financial results, highlighting a 22% increase in net income per share to $0.33 and a 12% rise in adjusted funds from operations (AFFO) per share to $0.48. The company closed investments worth $369.8 million at an 8.0% weighted average cash cap rate and increased its 2025 AFFO guidance to $1.87-$1.89 per share. The announcement reflects the company’s strong performance and strategic growth, supported by resilient tenant credit and robust origination activity, positioning it well for future growth in the middle market consumer service economy.

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 Releases 2024 ESG Report

On September 17, 2025, Essential Properties Realty Trust, Inc. released its 2024 Corporate Responsibility Report, detailing its progress and initiatives in Environmental, Social, and Governance (ESG) matters for the year ending December 31, 2024. The report highlights the company’s commitment to strong corporate governance, diversity, and sustainability, emphasizing its strategy to enhance tenant relationships through energy-efficient initiatives and its inclusive culture that aligns employee incentives with stockholder interests. The company’s focus on ESG is seen as a critical component for achieving growth and attractive returns for its stakeholders.

The most recent analyst rating on (EPRT) stock is a Buy with a $35.50 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 Financial Performance

On September 8, 2025, Essential Properties Realty Trust, Inc. released an investor presentation highlighting its strong financial performance and strategic initiatives. The company reported a stable and diversified portfolio with a high occupancy rate and low lease expiration risk. It also emphasized its robust balance sheet and liquidity, with recent equity and debt executions demonstrating strong market access. The presentation underscored the company’s disciplined growth strategy, focusing on accretive investments and capital recycling, while maintaining low leverage and a conservative payout ratio. These efforts position Essential Properties favorably in the real estate market, catering to the growing demand for private credit solutions amid tighter lending conditions.

The most recent analyst rating on (EPRT) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Declares Quarterly Dividend

On September 5, 2025, Essential Properties Realty Trust, Inc. announced a quarterly cash dividend of $0.30 per share for the third quarter of 2025, translating to an annualized dividend of $1.20 per share. This dividend is scheduled for payment on October 14, 2025, to shareholders recorded by the end of business on September 30, 2025, reflecting the company’s stable financial performance and commitment to returning value to its investors.

The most recent analyst rating on (EPRT) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Closes $400M Senior Notes Offering

On August 21, 2025, Essential Properties, L.P. successfully closed a $400 million public offering of 5.400% Senior Notes due 2035, guaranteed by its parent company, Essential Properties Realty Trust, Inc. This strategic financial move is expected to strengthen the company’s capital structure, positioning it competitively within the real estate market, while providing stakeholders with a secure investment opportunity.

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.