Essential Properties Realty Trust Inc (EPRT)
NYSE:EPRT
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Essential Properties Realty
(NYSE:EPRT)
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Rating:80Outperform
Price Target:
$39.00
â–²(25.81% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Essential Properties Realty (EPRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.52B
Dividend Yield3.88%
Average Volume (3M)2.20M
Price to Earnings (P/E)23.4
Beta (1Y)0.34
Revenue Growth24.60%
EPS Growth8.05%
CountryUS
Employees48
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.34
Shares Outstanding209,879,820
10 Day Avg. Volume2,519,939
30 Day Avg. Volume2,199,792
Financial Highlights & Ratios
PEG Ratio2.09
Price to Book (P/B)1.41
Price to Sales (P/S)10.55
P/FCF Ratio15.56
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue15.96
Enterprise Value/Gross Profit18.99
Enterprise Value/Ebitda17.28
Forecast
1Y Price Target
$37.00Price Target Upside19.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)1.35
Revenue Forecast (FY)$608.30M
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 se...
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 consi...
Essential Properties Realty Key Performance Indicators (KPIs)
Any
Annualized Base Rent By Segment
Shows the recurring rental income expected annually from each segment, providing insight into revenue stability and the strength of tenant relationships.
Shows the recurring rental income expected annually from each segment, providing insight into revenue stability and the strength of tenant relationships.
Data provided by:
The Fly
The FlyEssential Properties Realty Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operating and financial positives: raised AFFO guidance, double-digit AFFO per share growth vs. prior year, robust Q4 investment activity with attractive initial yields and long lease terms, very high occupancy (99.7%), strong rent coverage, low leverage (3.8x) and $1.4B of liquidity. Credit metrics and tenant diversification appeared healthy, and management emphasized disciplined, relationship-driven sourcing. Lowlights were limited and largely idiosyncratic or timing-related (one tenant bankruptcy representing ~20 bps of ABR, opportunistic low‑yield dispositions driven by tax-motivated buyers, modest same-store rent growth, and a one-time compensation reversal affecting GAAP comparability). Overall the positives materially outweigh the negatives, indicating a favorable outlook but with standard macro sensitivity around cap rates and competition.Positive Updates
Strong Quarterly and Operating Earnings
Reported GAAP net income of $68.3M and AFFO of $99.7M for the quarter. AFFO per share was $0.49, an increase of 9% versus 2024, consistent with the high end of prior guidance.
Negative Updates
Isolated Tenant Bankruptcy (American Signature)
One notable tenant bankruptcy in the home furnishing industry (American Signature) occurred in late Q4 and represented ~20 basis points of ABR as of Sept 30; management expects recovery within normal historical ranges but the matter is still being resolved.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Operating Earnings
Reported GAAP net income of $68.3M and AFFO of $99.7M for the quarter. AFFO per share was $0.49, an increase of 9% versus 2024, consistent with the high end of prior guidance.
Read all positive updates
Company Guidance
Management raised 2026 AFFO per share guidance to $1.99–$2.04 (implying ~7% growth at the midpoint and ~8% at the high end), while reiterating investment guidance of $1.0B–$1.4B supported by year-to-date closed deals and a pipeline with pricing in the high‑7% cap‑rate range; supporting metrics include Q4 AFFO $99.7M and AFFO per share $0.49 (up 9% y/y), Q4 investments of $296M at a weighted average initial cash yield of 7.7% (GAAP yield 9.1%) and unit‑level rent coverage of 4.7x, subsequent quarter closed activity >$200M, pro forma leverage/net debt to EBITDAre of 3.8x, liquidity ~$1.4B, unsettled forward equity ~$332M (settled $359M in Q4, ATM activity ~ $170M), income‑producing gross assets >$7B, same‑store rent growth 1.6%, occupancy 99.7%, portfolio rent coverage 3.6x, watch list <1%, and portfolio scale of ~2,300 properties leased to >400 tenants with a ~14‑year WA lease term and only 5.2% of ABR expiring over the next five years.Essential Properties Realty Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
90
Very Positive
| 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
Neutral
31.00
Price Trends
31.73
Negative
30.88
Negative
30.33
Positive
Market Momentum
-0.52
Positive
40.37
Neutral
19.53
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 31 is below the 20-day moving average (MA) of 31.78, below the 50-day MA of 31.73, and above the 200-day MA of 30.33, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 19.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.52B | 23.43 | 6.45% | 3.88% | 24.60% | 8.05% | |
72 Outperform | $15.32B | 30.43 | 5.68% | 5.51% | 5.59% | -34.75% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $3.54B | 31.75 | 3.41% | 6.72% | 3.87% | -37.59% | |
62 Neutral | $2.71B | 25.79 | 8.71% | 3.99% | 5.29% | -60.36% | |
54 Neutral | $2.00B | -8.52 | -12.68% | 10.29% | -28.94% | -28.24% |
* Real Estate Sector Average
EPRT
Essential Properties Realty
31.00
2.81
9.98%
WPC
W. P. Carey Inc.
69.91
16.04
29.79%
UE
Urban Edge Properties
20.42
4.16
25.58%
GNL
Global Net Lease
9.32
2.85
43.96%
BNL
Broadstone Net Lease
18.51
4.20
29.37%
Essential Properties Realty Corporate Events
Dividends
Essential Properties Realty Declares Quarterly 2026 Cash Dividend
Positive
Mar 9, 2026
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 ...
Business Operations and StrategyFinancial Disclosures
Essential Properties Realty Highlights Strong Portfolio and Growth
Positive
Mar 2, 2026
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-...
Business Operations and StrategyPrivate Placements and Financing
Essential Properties Realty Announces Major Forward Equity Offering
Positive
Feb 19, 2026
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 exe...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Essential Properties Realty Raises 2026 AFFO Guidance Outlook
Positive
Feb 11, 2026
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 milli...
Business Operations and StrategyExecutive/Board Changes
Essential Properties Realty CFO Appointment Announced
Positive
Dec 17, 2025
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 i...
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.