Essential Properties Realty Trust Prices Notes Offering worth $400M

Essential Properties Realty Trust, Inc. (EPRT) announced that its operating partnership, Essential Properties, L.P., has priced an offering of notes worth $400 million.

ERPT is an internally managed real estate investment trust that acquires, owns, and manages primarily single-tenant properties. Shares of EPRT have jumped 62% over the past year.

The Senior Notes are offered at an interest rate of 2.95% and are priced at 99.800% of the principal amount. The notes are scheduled to expire on July 15, 2031. Subject to closing conditions, the company expects the notes offering to close on June 28.  (See EPRT stock chart on TipRanks)

The proceeds will be utilized to prepay the full amount of secured debt principal outstanding under its Master Trust Funding program, and repay outstanding amounts under its revolving credit facility. The company will also use the proceeds towards general corporate purposes, which include financing investments in the future.

Wolfe Research analyst Andrew Rosivach, CFA recently initiated coverage on EPRT with a Buy rating and a price target of $36 (31.7% upside potential).

Rosivach commented that EPLK will witness growth based on “pre-funded” growth, potential upside from rent collection, and a favorable credit environment.

Overall, the stock has a Strong Buy consensus rating based on 9 unanimous Buys. The average analyst Essential Properties Realty price target of $30.06 implies 10% upside potential from current levels.

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