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Essential Properties Realty
(NYSE:EPRT)
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Rating:67Neutral
Price Target:
$28.00
â–¼(-9.09% Downside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by solid financial performance (strong profitability and growth, with moderate leverage) but held back by negative TTM free cash flow. Technicals are mixed-to-weak versus longer-term moving averages and a negative MACD, limiting upside near term. Valuation is supported by a ~5% yield but tempered by a ~20 P/E. Earnings call commentary was broadly constructive with raised guidance and strong portfolio metrics, though higher capital costs and guidance inconsistency add uncertainty.
Positive Factors
Highly Occupied, Long-Duration Portfolio
The combination of near-full occupancy, long lease duration, and strong tenant rent coverage supports predictable rental income over multiple years. These portfolio characteristics reduce near-term rollover exposure and provide resilience, while broad tenant diversification limits dependence on individual operators.
Negative Factors
Negative Trailing-Twelve-Month Free Cash Flow
The shift to negative trailing free cash flow indicates that recent investment and other cash outflows have exceeded internally generated funds after those uses. If sustained, this can reduce funding flexibility and increase reliance on dispositions, debt, or equity to support portfolio expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Highly Occupied, Long-Duration Portfolio
The combination of near-full occupancy, long lease duration, and strong tenant rent coverage supports predictable rental income over multiple years. These portfolio characteristics reduce near-term rollover exposure and provide resilience, while broad tenant diversification limits dependence on individual operators.
Read all positive factors
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 (EPRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.03B
Dividend Yield4.64%
Average Volume (3M)2.89M
Price to Earnings (P/E)21.9
Beta (1Y)0.26
Revenue Growth20.67%
EPS Growth-1.36%
CountryUS
Employees56
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)1.24
Shares Outstanding220,275,160
10 Day Avg. Volume3,182,987
30 Day Avg. Volume2,889,997
Financial Highlights & Ratios
PEG Ratio2.05
Price to Book (P/B)1.41
Price to Sales (P/S)10.55
P/FCF Ratio15.56
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue12.59
Enterprise Value/Gross Profit18.57
Enterprise Value/Ebitda15.17
Forecast
1Y Price Target
$33.50Price Target Upside8.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)1.31
Revenue Forecast (FY)$624.88M
Essential Properties Realty Business Overview & Revenue Model
Company Description
Essential Properties Realty Trust, Inc. (EPRT) is a real estate enterprise focused on the acquisition, ownership, and management of freestanding, single-tenant commercial properties throughout the United States. The company leases these assets und...
How the Company Makes Money
EPRT primarily makes money by owning real estate and leasing it to tenants under net lease agreements. Its core revenue stream is rental income collected from tenants, which is generally structured as long-term contractual rent. Because the leases...
Essential Properties Realty Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, supported by strong earnings growth, high occupancy, healthy rent coverage, improving tenant credit metrics, significant investment activity, accretive dispositions, ample liquidity, and raised 2026 guidance. The main challenges were volatile capital markets, a higher cost of capital, slower planned deployment, lower pipeline closing probabilities, refinancing decisions, and one property impairment. The conflicting 2026 AFFO guidance figures in the transcript also introduce some uncertainty.Positive Updates
Strong Third-Quarter Earnings
The company reported GAAP net income of $60.7 million and AFFO of $111.9 million for the quarter. AFFO per share was $0.51, up 6% year over year, while nominal AFFO increased 16% year over year to $112 million.
Negative Updates
Capital Markets Volatility and Higher Cost of Capital
Management described capital markets as choppy and said the company's incremental cost of capital was in the mid- to high 6s. Based on that cost, new transactions were generating spreads of approximately 100 to 150 basis points, compared with the company's historical range of 100 to 300 basis points.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Earnings
The company reported GAAP net income of $60.7 million and AFFO of $111.9 million for the quarter. AFFO per share was $0.51, up 6% year over year, while nominal AFFO increased 16% year over year to $112 million.
Read all positive updates
Company Guidance
For 2026, the company raised AFFO per share guidance to $2.02 to $2.05, implying growth of almost 8 percent at the midpoint, and investment volume guidance to $1.3 billion to $1.5 billion; Robert W. Salisbury later stated AFFO per share guidance of 2 dollars and 20 cents to 2 dollars and 50 cents, reflecting a growth rate of approximately 8 percent at the midpoint. Initial 2027 guidance calls for AFFO per share of 2 dollars and 10 cents to 2 dollars and 18 cents, investment volume of $1 billion to $1.5 billion, and cash G&A expense of $32 million to $37 million, with investment volume expected to be back end loaded and a slow pace of deployment over the next 2 to 3 quarters; the plan assumes approximately 2 hundred million dollars of dispositions next year, annual free cash flow after dividends approaching 2 hundred million dollars, no common equity in the near term, and no need to source external capital. The company expects dispositions to potentially increase from 25 million dollars a quarter to 50 million dollars a quarter, with a mid- to high- 6% cap rate range, while refinancing alternatives included unsecured bonds pricing in the high 6s, a convert pricing south of a 5, and bank debt in the 5.6% to 5.7% range.Essential Properties Realty Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
76
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 687.78M | 561.89M | 449.61M | 359.60M | 286.51M | 230.23M |
| Gross Profit | 466.48M | 472.26M | 444.61M | 354.93M | 283.05M | 224.47M |
| EBITDA | 571.07M | 518.96M | 404.97M | 352.05M | 253.28M | 200.35M |
| Net Income | 262.50M | 253.01M | 203.00M | 190.71M | 134.13M | 95.72M |
Balance Sheet | ||||||
| Total Assets | 7.69B | 6.86B | 5.80B | 4.77B | 4.00B | 3.30B |
| Cash, Cash Equivalents and Short-Term Investments | 25.22M | 60.18M | 40.71M | 39.81M | 62.34M | 59.76M |
| Total Debt | 2.97B | 2.52B | 2.13B | 1.69B | 1.44B | 1.19B |
| Total Liabilities | 3.11B | 2.66B | 2.23B | 1.78B | 1.50B | 1.25B |
| Stockholders Equity | 4.54B | 4.20B | 3.56B | 2.98B | 2.49B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | -142.44M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M |
| Operating Cash Flow | 433.15M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M |
| Investing Cash Flow | -1.15B | -1.15B | -1.12B | -857.13M | -706.08M | -829.68M |
| Financing Cash Flow | 724.39M | 798.35M | 810.70M | 580.01M | 506.80M | 689.06M |
Essential Properties Realty Technical Analysis
Negative
30.80
Price Trends
27.54
Negative
29.02
Negative
29.90
Negative
Market Momentum
-0.26
Negative
57.95
Neutral
91.24
Negative
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 30.8 is above the 20-day moving average (MA) of 25.76, above the 50-day MA of 27.54, and above the 200-day MA of 29.90, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 91.24 is Negative, 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 60 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $14.67B | 21.98 | 7.83% | 5.81% | 8.96% | 92.38% | |
69 Neutral | $3.30B | 22.66 | 5.00% | 6.78% | 6.71% | 46.35% | |
67 Neutral | $6.03B | 21.91 | 5.99% | 4.64% | 20.67% | -1.36% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
59 Neutral | $589.24M | 22.76 | 11.69% | 9.93% | 10.78% | -30.46% | |
58 Neutral | $487.13M | 15.18 | 10.50% | 8.06% | 9.52% | 21.63% | |
53 Neutral | $1.65B | -26.44 | -0.84% | 10.64% | -29.60% | 77.14% |
* Real Estate Sector Average
EPRT
Essential Properties Realty
27.17
-2.48
-8.36%
GOOD
Gladstone Commercial
12.08
1.72
16.57%
OLP
One Liberty Properties
22.32
3.28
17.22%
WPC
W. P. Carey Inc.
64.39
1.14
1.80%
GNL
Global Net Lease
7.14
0.08
1.13%
BNL
Broadstone Net Lease
17.22
-0.44
-2.49%
Essential Properties Realty Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Essential Properties Realty Raises 2026 AFFO Guidance
Positive
Oct 21, 2026
For the third quarter ended Sept. 30, 2026, Essential Properties reported net income per share of $0.27, down 18% year-on-year, but delivered higher per-share FFO, Core FFO and AFFO, with AFFO up 6% to $0.51. The company closed $342.2 million of i...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Essential Properties Realty Expands Revolving Credit Facility Capacity
Positive
Sep 16, 2026
On September 14, 2026, Essential Properties Realty Trust, Inc., through its operating partnership, executed an eighth amendment to its Amended and Restated Credit Agreement, primarily affecting its revolving credit facility with Wells Fargo Bank a...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Essential Properties Realty Releases 2025 Corporate Responsibility Report
Positive
Sep 16, 2026
On September 16, 2026, Essential Properties Realty Trust published its 2025 Corporate Responsibility Report, detailing environmental, social, and governance initiatives across its operations for the year ended December 31, 2025. The report highlig...
Business Operations and StrategyFinancial Disclosures
Essential Properties Realty Highlights Strong Liquidity and Leasing
Positive
Sep 14, 2026
Essential Properties Realty Trust, Inc. is a net-lease REIT that provides sale-leaseback and other capital solutions to middle-market tenants in essential, largely service and experiential industries, emphasizing e-commerce resilience and granular...
Business Operations and StrategyExecutive/Board Changes
Essential Properties Realty refreshes leadership and investment team
Positive
Sep 9, 2026
On September 4, 2026, Essential Properties Realty Trust’s board promoted Chief Operating Officer R. Max Jenkins to President and COO, with CEO Pete Mavoides entering a new employment agreement running initially through March 31, 2031. The bo...
Business Operations and StrategyDividends
Essential Properties Realty Trust Declares Third-Quarter Dividend
Positive
Sep 8, 2026
Essential Properties Realty Trust, Inc. is an internally managed real estate investment trust that acquires, owns and manages primarily single-tenant properties net leased on a long-term basis to service-oriented and experience-based businesses. A...
Business Operations and StrategyPrivate Placements and Financing
Essential Properties Realty Launches New $750 Million ATM Program
Positive
Jul 24, 2026
On July 24, 2026, Essential Properties Realty Trust, Inc. and its operating partnership launched a new at-the-market equity offering program authorizing up to $750 million of common stock sales through a syndicate of major investment banks, while ...
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.