Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $6.35B
• Dividend Yield: 3.77%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.53
• Revenue Growth: 25.47%
• EPS Growth: -4.35%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Diversified
• EPS (TTM): 0.29
• Shares Outstanding: 197,512,310
• 10 Day Avg. Volume: 2,423,216
• 30 Day Avg. Volume: 1,872,743
• PEG Ratio: 0.50
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.96
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 1.36
• 1Y Price Target: $36.08
• Price Target Upside: 12.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 79 Outperform
• Price Target: $37.00 ▲(15.44%Upside)

Essential Properties Realty's overall score reflects its strong financial performance and positive earnings outlook. The company's robust financial health and strategic investments underpin its growth potential, despite valuation concerns and minor liquidity management challenges. Technical indicators and corporate events further support a stable investment case.

Positive Factors

Acquisitions

Quarterly acquisitions increased +5.9% y/y to $333.4M with cash/GAAP cap rates at 8.0%/9.2%.

Earnings

EPRT's 1Q25 AFFOps results were in line, but once again signified sector-leading growth, +7.0% y/y.

Portfolio Management

The price target for EPRT has been raised due to increases in reNAV/sh and AFFO/sh estimates and continued portfolio management success.

Negative Factors

Credit Risk

The portfolio has reached an age where tenant credit risk is more likely, impacting overall risk assessment.

Market Conditions

EPRT’s per-share growth outlook is highly correlated to interest rate and capital market conditions, adding uncertainty.

Valuation

The REIT's valuation is considered high, and its operations are trending closer to average, making further outperformance unlikely.

Essential Properties Realty Business Overview & Revenue Model

Company Description

Essential Properties Realty Trust, Inc. (EPRT) is a real estate investment trust (REIT) focusing primarily on the acquisition, ownership, and management of single-tenant properties. These properties are leased to tenants under triple-net leases, which require the tenant to cover property taxes, insurance, and maintenance costs. EPRT's portfolio is diversified across various sectors, including retail, restaurant, healthcare, and industrial, providing essential services that are less susceptible to economic cycles.

How the Company Makes Money

EPRT 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 Financial Statement Overview

Summary

Essential Properties Realty shows strong revenue growth, high profitability margins, and a solid balance sheet with no debt. However, a decline in free cash flow due to capital expenditures poses potential liquidity management challenges.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	475.89M	449.61M	359.60M	286.51M	230.23M	164.01M
Gross Profit	439.66M	444.61M	351.38M	283.05M	224.47M	160.13M
EBITDA	453.55M	438.52M	352.05M	279.50M	199.95M	135.34M
Net Income	212.14M	203.00M	190.71M	134.13M	95.72M	42.27M
Balance Sheet
Total Assets	6.06B	5.80B	4.77B	4.00B	3.30B	2.49B
Cash, Cash Equivalents and Short-Term Investments	47.00M	40.71M	39.81M	62.34M	59.76M	26.60M
Total Debt	2.13B	2.13B	1.69B	1.42B	1.17B	815.28M
Total Liabilities	2.23B	2.23B	1.78B	1.50B	1.25B	906.85M
Stockholders Equity	3.81B	3.56B	2.98B	2.49B	2.04B	1.57B
Cash Flow
Free Cash Flow	106.57M	308.48M	254.57M	-517.71M	167.39M	99.39M
Operating Cash Flow	318.89M	308.48M	254.57M	211.02M	167.39M	99.39M
Investing Cash Flow	-1.18B	-1.12B	-857.13M	-706.08M	-829.68M	-545.51M
Financing Cash Flow	825.50M	810.70M	580.01M	506.80M	689.06M	457.79M

Essential Properties Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPRT, the sentiment is Positive. The current price of 32.05 is below the 20-day moving average (MA) of 32.12, above the 50-day MA of 31.89, and above the 200-day MA of 31.64, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 41.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EPRT.

Essential Properties Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPRT	79 Outperform	$6.35B	27.62	6.01%	3.77%	25.47%	-4.35%
UE	74 Outperform	$2.52B	30.25	6.48%	4.00%	6.18%	-72.21%
WPC	74 Outperform	$13.85B	32.61	5.02%	5.68%	-5.89%	-26.36%
OLP	73 Outperform	$528.20M	18.08	9.57%	7.36%	1.82%	-1.03%
BNL	71 Outperform	$3.09B	27.49	3.79%	7.16%	0.73%	-37.65%
Sector *	61 Neutral	AU$2.87B	8.06	4.17%	5.05%	17.25%	41.52%
GNL	56 Neutral	$1.73B	―	-13.01%	9.79%	16.69%	39.04%

Essential Properties Realty Corporate Events

Essential Properties Realty Announces Increased Quarterly Dividend

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.

Essential Properties Realty Highlights Strong Portfolio Performance

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.

Essential Properties Realty Holds Annual Stockholders Meeting

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.

Essential Properties Realty Highlights Strong Financial Position

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.

Essential Properties Realty Reports Strong Q1 2025 Results

Essential Properties Realty Trust, Inc. reported its financial results for the first quarter of 2025, highlighting a net income per share of $0.29 and an AFFO per share of $0.45, both showing an increase from the previous year. The company closed investments totaling $307.7 million at a 7.8% weighted average cash cap rate and reiterated its 2025 AFFO guidance. The CEO noted strong investment execution and resilient portfolio trends, despite a challenging macroeconomic environment.

Essential Properties Realty Releases Financial Presentation

On April 8, 2025, Essential Properties Realty Trust, Inc. released an investor presentation detailing its financial and operational performance. The company reported a stable and diversified portfolio with a high occupancy rate and strong lease coverage. In the first quarter of 2025, the company raised approximately $309 million in common equity and expanded its revolving credit facility to $1 billion. The company continues to focus on disciplined external growth and capital recycling, with significant investments and dispositions completed in 2025. The presentation highlights Essential Properties’ strategic focus on maintaining a low leverage ratio, robust liquidity, and a conservative payout ratio, ensuring sustainable growth and financial stability.