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Essential Properties Realty Trust Inc (EPRT)
NYSE:EPRT
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Essential Properties Realty (EPRT) AI Stock Analysis

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EPRT

Essential Properties Realty

(NYSE:EPRT)

Rating:76Outperform
Price Target:
$35.00
▲(14.57%Upside)
Essential Properties Realty's strong financial performance and positive earnings guidance are the primary drivers of its overall score. The company's robust balance sheet and strategic investments position it well for future growth. However, technical indicators suggest short-term caution, and liquidity management should be monitored due to declining free cash flow.
Positive Factors
Acquisition Performance
EPRT reported a solid 2Q25 on strong acquisition execution of $334.0M with cap rates expanding, leading to sector-leading growth.
Financial Guidance
EPRT raised FY25 AFFOps guidance and acquisition guidance by 10% to $1.1B.
Negative Factors
Leasing and Occupancy
The leasing recovery rate decreased significantly, indicating a challenge in maintaining occupancy levels.
Tenant Credit Risk
The portfolio has reached an age where tenant credit risk is more likely, impacting overall risk assessment.

Essential Properties Realty (EPRT) vs. SPDR S&P 500 ETF (SPY)

Essential Properties Realty Business Overview & Revenue Model

Company DescriptionEssential 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 MoneyEPRT generates revenue primarily through rental income from its portfolio of single-tenant properties, which are leased on a long-term basis under triple-net leases. This lease structure ensures a steady and predictable income stream, as tenants are responsible for most property-related expenses, reducing EPRT's operational costs. The company's focus on essential service sectors helps maintain occupancy rates and rental growth, even during economic downturns. Additionally, EPRT may engage in strategic property acquisitions and dispositions to optimize its portfolio and enhance shareholder value, further contributing to its earnings.

Essential Properties Realty Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: -0.10%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call indicates a strong performance with significant investments at favorable yields, increased guidance, and a healthy portfolio, despite minor challenges such as a bankruptcy impact and increased G&A expenses.
Q2-2025 Updates
Positive Updates
Strong Investment Performance
Essential Properties invested $334 million at a weighted average cash yield of 7.9% and a GAAP yield of 9.7% during the second quarter, with the majority being sale leasebacks.
Increased Guidance
The company raised its 2025 AFFO per share guidance to a range of $1.86 to $1.89, indicating an 8% growth at the midpoint.
Healthy Portfolio Metrics
Same-store rent growth was 1.4% with an occupancy rate of 99.6%. The weighted average lease term was 14 years, and the tenant credit trends remained healthy.
Significant Liquidity and Low Leverage
The company has $1.3 billion of liquidity with a pro forma leverage of 3.5x, positioning it well for future investments without needing additional equity.
Successful Disposition Strategy
Sold 23 properties for $46.2 million in net proceeds with a 7.3% weighted average cash yield, highlighting the strategy of owning fungible liquid properties.
Negative Updates
Zips Car Wash Bankruptcy Impact
Faced a bankruptcy situation with Zips Car Wash, which initially represented a significant portion of ABR, but managed to sell only two out of the three properties.
Slight Dip in Occupancy
Occupancy slightly declined to 99.6% from the previous quarter, with some properties remaining vacant due to underperformance, specifically in the restaurant space.
Increase in General and Administrative (G&A) Expenses
G&A expenses increased to $10.7 million from $8.7 million in the prior year period, mainly due to increased compensation expenses as the team expands.
Company Guidance
During Essential Properties Realty Trust's second quarter 2025 earnings call, the company announced a favorable operating environment and highlighted several key metrics. Investments for the quarter totaled $334 million, with an average cash yield of 7.9% and an average GAAP yield of 9.7%. The company raised its 2025 AFFO per share guidance to a range of $1.86 to $1.89, reflecting an 8% growth at the midpoint. Essential Properties also increased its investment guidance by $100 million to a new range of $1 billion to $1.2 billion. The portfolio ended the quarter with 2,190 properties leased to over 400 tenants, maintaining a 99.6% occupancy rate. The company issued $119 million of equity through its ATM Program, achieving a pro forma leverage of 3.5x, with $1.3 billion in liquidity. The call underscored Essential Properties' strong tenant credit trends, with a weighted average lease term of 14 years and a unit-level coverage ratio of 3.4x.

Essential Properties Realty Financial Statement Overview

Summary
Essential Properties Realty demonstrates strong financial performance with robust revenue growth and high profitability margins. The balance sheet is solid with no debt, enhancing financial stability. However, a decline in free cash flow due to significant capital expenditures may present future liquidity challenges.
Income Statement
85
Very Positive
Essential Properties Realty has demonstrated strong revenue growth with a 6.0% increase in TTM revenue compared to the previous year. The company maintains robust profitability with a gross profit margin of 92.4% and a commendable net profit margin of 44.6% in the TTM period. This indicates efficient operations and cost management. However, the EBITDA margin slightly declined from 90.1% in 2024 to 84.3% in the TTM, suggesting potential increases in operating expenses.
Balance Sheet
88
Very Positive
The company's balance sheet is strong with zero total debt in the TTM period, improving its financial stability and risk profile significantly. The equity ratio stands at 63.0%, indicating a high level of financial independence and low leverage. Return on equity is solid at 5.6%, reflecting effective use of equity to generate profit.
Cash Flow
75
Positive
Essential Properties Realty shows a positive trend in operating cash flow, with a 3.4% year-over-year increase in the TTM. However, free cash flow declined by 65.5% due to significant capital expenditures. The operating cash flow to net income ratio is healthy at 1.50, indicating strong cash generation relative to net income, but the decrease in free cash flow signals potential challenges in liquidity management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue449.61M359.60M286.51M230.23M164.01M
Gross Profit444.61M351.38M283.05M224.47M160.13M
EBITDA404.97M352.05M279.50M199.95M135.34M
Net Income203.00M190.71M134.13M95.72M42.27M
Balance Sheet
Total Assets5.80B4.77B4.00B3.30B2.49B
Cash, Cash Equivalents and Short-Term Investments40.71M39.81M62.34M59.76M26.60M
Total Debt2.13B1.69B1.42B1.17B815.28M
Total Liabilities2.23B1.78B1.50B1.25B906.85M
Stockholders Equity3.56B2.98B2.49B2.04B1.57B
Cash Flow
Free Cash Flow308.48M254.57M-517.71M167.39M99.39M
Operating Cash Flow308.48M254.57M211.02M167.39M99.39M
Investing Cash Flow-1.12B-857.13M-706.08M-829.68M-545.51M
Financing Cash Flow810.70M580.01M506.80M689.06M457.79M

Essential Properties Realty Technical Analysis

Technical Analysis Sentiment
Negative
Last Price30.55
Price Trends
50DMA
31.72
Negative
100DMA
31.51
Negative
200DMA
31.53
Negative
Market Momentum
MACD
-0.36
Positive
RSI
39.76
Neutral
STOCH
26.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPRT, the sentiment is Negative. The current price of 30.55 is below the 20-day moving average (MA) of 31.26, below the 50-day MA of 31.72, and below the 200-day MA of 31.53, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 26.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPRT.

Essential Properties Realty Risk Analysis

Essential Properties Realty disclosed 59 risk factors in its most recent earnings report. Essential Properties Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Essential Properties Realty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$2.63B31.496.48%3.63%6.18%-72.21%
76
Outperform
$6.06B26.356.33%3.86%25.79%2.46%
74
Outperform
$506.17M17.339.57%7.68%1.82%-1.03%
74
Outperform
$13.89B32.715.02%5.50%-5.89%-26.36%
66
Neutral
$3.00B26.703.79%7.31%0.73%-37.65%
64
Neutral
$6.87B17.44-1.93%6.95%4.65%-24.33%
57
Neutral
$1.59B-13.01%12.99%16.69%39.04%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EPRT
Essential Properties Realty
30.55
1.25
4.27%
OLP
One Liberty Properties
23.15
-1.90
-7.58%
WPC
W. P. Carey Inc.
64.44
7.28
12.74%
UE
Urban Edge Properties
19.83
0.79
4.15%
GNL
Global Net Lease
7.16
-0.74
-9.37%
BNL
Broadstone Net Lease
15.84
-0.97
-5.77%

Essential Properties Realty Corporate Events

Business Operations and StrategyFinancial Disclosures
Essential Properties Realty Reports Strong Q2 2025 Results
Positive
Jul 23, 2025

Essential Properties Realty Trust, Inc. reported strong financial results for the second quarter of 2025, with a net income per share increase of 10% to $0.32 and an AFFO per share increase of 7% to $0.46. The company closed investments totaling $334.0 million at a 7.9% weighted average cash cap rate and raised its 2025 AFFO guidance to $1.86 to $1.89 per share. The company also increased its 2025 investment guidance to $1.0 to $1.2 billion, reflecting a positive outlook on its investment pipeline and market conditions.

The most recent analyst rating on (EPRT) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Executive/Board Changes
Essential Properties Realty Appoints New Board Member
Positive
Jul 21, 2025

On July 15, 2025, Essential Properties Realty Trust, Inc. announced the election of Ms. Kristin L. Smallwood to its Board of Directors, increasing the number of directors from seven to eight. Ms. Smallwood, a former partner at PricewaterhouseCoopers with nearly 30 years of experience in audit and audit-related services, brings significant expertise in corporate governance, financial analysis, and compliance matters. Her appointment is expected to enhance the board’s capabilities in these areas, thereby potentially increasing stockholder value.

The most recent analyst rating on (EPRT) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Dividends
Essential Properties Realty Announces Increased Quarterly Dividend
Positive
Jun 2, 2025

On May 30, 2025, Essential Properties Realty Trust, Inc. announced a quarterly cash dividend of $0.30 per share for the second quarter of 2025, reflecting an approximately 2% increase over the prior quarter. This dividend, payable on July 14, 2025, signifies an annualized dividend of $1.20 per share, which is $0.02 higher than the previous annualized dividend, highlighting the company’s commitment to delivering value to its shareholders.

The most recent analyst rating on (EPRT) stock is a Buy with a $31.25 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Essential Properties Realty Highlights Strong Portfolio Performance
Positive
Jun 2, 2025

On June 2, 2025, Essential Properties Realty Trust, Inc. released an investor presentation highlighting its strong portfolio performance and financial health. The company reported a stable portfolio with a 99.7% lease rate and a robust balance sheet, including $1.5 billion in liquidity and low leverage. The presentation also emphasized healthy investment activity with significant closed investments and capital recycling at attractive yields, positioning the company for continued growth and resilience in the real estate market.

The most recent analyst rating on (EPRT) stock is a Buy with a $31.25 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Shareholder Meetings
Essential Properties Realty Holds Annual Stockholders Meeting
Neutral
May 13, 2025

On May 12, 2025, Essential Properties Realty Trust, Inc. held its 2025 Annual Meeting of Stockholders, where shareholders voted on several key proposals. All seven director nominees were elected, the compensation of the company’s named executive officers was approved on an advisory basis, and the appointment of Grant Thornton LLP as the independent registered public accounting firm for 2025 was ratified. The meeting saw a high participation rate, with 83.2% of eligible shares voted, indicating strong shareholder engagement.

The most recent analyst rating on (EPRT) stock is a Buy with a $31.25 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Essential Properties Realty Highlights Strong Financial Position
Positive
May 5, 2025

On May 5, 2025, Essential Properties Realty Trust released an investor presentation highlighting its strong financial position and strategic growth initiatives. The company reported a stable and healthy net lease portfolio with a 99.7% occupancy rate and a well-positioned balance sheet, including significant liquidity and low leverage. The presentation emphasized the company’s disciplined investment strategy, focusing on high-growth, low-risk opportunities in the middle market, and its commitment to maintaining a conservative financial approach with no debt maturities until 2027.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025