Essential Properties Realty Trust (EPRT)
NYSE:EPRT
Want to see EPRT full AI Analyst Report?
Top Page
Essential Properties Realty
(NYSE:EPRT)
Select Model
Select Model
Rating:71Outperform
Price Target:
$34.00
â–²(1.49% Upside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by strong financial profitability and a constructive earnings update with raised AFFO guidance, high occupancy, and solid liquidity. These strengths are tempered by weak technical momentum and a key financial watch-out: negative TTM free cash flow. Valuation is mixed, with a decent yield but a relatively high P/E.
Positive Factors
High occupancy and long lease durations
Near-full occupancy and a ~15-year weighted average lease term create durable, contractually backed cash flows with low near-term rollover risk. This long-duration, single-tenant net-lease profile supports predictable rental income, reduces vacancy-driven volatility, and underpins dividend sustainability over the next several quarters.
Negative Factors
Negative trailing free cash flow
A materially negative trailing free cash flow figure, despite strong operating cash generation, signals heavy investment or timing mismatches that reduce cash available after capital expenditures and acquisitions. Over several quarters this can strain retained cash for growth or require external financing, raising execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy and long lease durations
Near-full occupancy and a ~15-year weighted average lease term create durable, contractually backed cash flows with low near-term rollover risk. This long-duration, single-tenant net-lease profile supports predictable rental income, reduces vacancy-driven volatility, and underpins dividend sustainability over the next several quarters.
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
$6.55B
Dividend Yield3.88%
Average Volume (3M)1.77M
Price to Earnings (P/E)24.8
Beta (1Y)0.37
Revenue Growth24.20%
EPS Growth7.66%
CountryUS
Employees48
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)1.27
Shares Outstanding216,245,960
10 Day Avg. Volume1,846,706
30 Day Avg. Volume1,768,301
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 Cap1.41
Enterprise Value/Revenue15.58
Enterprise Value/Gross Profit22.16
Enterprise Value/Ebitda17.16
Forecast
1Y Price Target
$37.32Price Target Upside11.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.3
Revenue Forecast (FY)$634.49M
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
EPRT primarily makes money by collecting contractual rental income from tenants under long-term, single-tenant triple-net (NNN) leases. In a triple-net lease, the tenant is generally responsible for property-level operating costs such as real esta...
Essential Properties Realty Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported solid quarter results with double-digit AFFO per share growth (11% YoY), strong capital deployment ($389M), meaningful liquidity ($1.5B), low leverage (3.5x), and raised full-year AFFO and investment guidance. Portfolio fundamentals remained healthy (99.7% occupancy, 1.4% same-store rent growth, 15-year WALT) and management highlighted disciplined underwriting, attractive spreads between investment yields (~mid-to-high 7% cap rates and ~8.8% GAAP yields) and a mid-5% WACC. Headwinds were mostly idiosyncratic or small in scope — a single-tenant bankruptcy (seven properties, ~30 bps ABR) with expected ~80% recovery, a ~$16M impairment tied to a home furnishings location, modest pressure in casual dining/entertainment sub-sectors, some potential dilution from unsettled forward equity, and a slower start to 2Q transaction activity. Overall, the positive operational and financial trends, tightened guidance, and balance sheet strength outweigh the contained credit and timing challenges.Positive Updates
Strong quarterly earnings and AFFO growth
Reported GAAP net income of $60.0M and AFFO of $105.8M for 1Q26; AFFO per share was $0.50, an increase of 11% year-over-year.
Negative Updates
Operator-specific bankruptcy and tenant credit event
One restaurant tenant filed for bankruptcy; seven properties were affected representing roughly 30 basis points of ABR. Management expects ~80% recovery based on backfills/sales, but the event required active asset management.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong quarterly earnings and AFFO growth
Reported GAAP net income of $60.0M and AFFO of $105.8M for 1Q26; AFFO per share was $0.50, an increase of 11% year-over-year.
Read all positive updates
Company Guidance
The company raised 2026 AFFO per share guidance to $2.00–$2.05 (≈7% growth at the midpoint, >8% at the high end), increased full‑year acquisition guidance by $100M to $1.1–$1.5B (midpoint $1.3B), and trimmed cash G&A guidance by $1M to $30–$34M; guidance assumes ~ $0.01–$0.02 of treasury‑stock dilution and reflects an AFFO payout ratio of ~62% (Q1 dividend $0.31), with roughly $160M of annualized retained free cash flow after dividends to fund growth, $1.5B of available liquidity, pro‑forma net debt/annualized adjusted EBITDAre of 3.5x, $541M of unsettled forward equity at a weighted average price of $30.55, expected mid‑year unsecured debt issuance, and constructive pipeline pricing with cap rates in the mid‑to‑high 7% range (Q1 initial cap 7.7%, weighted cash yield ~7.7%, GAAP yield ~8.8%), while disposition activity is expected to be modest.Essential Properties Realty Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 593.09M | 561.89M | 449.61M | 359.60M | 286.51M | 230.23M |
| Gross Profit | 417.14M | 472.26M | 444.61M | 354.93M | 283.05M | 224.47M |
| EBITDA | 538.74M | 518.96M | 404.97M | 352.05M | 253.50M | 199.95M |
| Net Income | 256.69M | 253.01M | 203.00M | 190.71M | 134.13M | 95.72M |
Balance Sheet | ||||||
| Total Assets | 7.15B | 6.86B | 5.80B | 4.77B | 4.00B | 3.30B |
| Cash, Cash Equivalents and Short-Term Investments | 15.18M | 60.18M | 40.71M | 39.81M | 62.34M | 59.76M |
| Total Debt | 2.64B | 2.52B | 2.13B | 1.69B | 1.44B | 1.19B |
| Total Liabilities | 2.76B | 2.66B | 2.23B | 1.78B | 1.50B | 1.25B |
| Stockholders Equity | 4.39B | 4.20B | 3.56B | 2.98B | 2.49B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | -462.18M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M |
| Operating Cash Flow | 403.68M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M |
| Investing Cash Flow | -1.24B | -1.15B | -1.12B | -857.13M | -706.08M | -829.68M |
| Financing Cash Flow | 808.38M | 798.35M | 810.70M | 580.01M | 506.80M | 689.06M |
Essential Properties Realty Technical Analysis
Negative
33.50
Price Trends
31.28
Negative
31.50
Negative
30.61
Negative
Market Momentum
-0.39
Positive
42.24
Neutral
16.24
Positive
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 33.5 is above the 20-day moving average (MA) of 30.78, above the 50-day MA of 31.28, and above the 200-day MA of 30.61, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 16.24 is Positive, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $16.59B | 31.80 | 6.30% | 5.51% | 9.86% | 20.75% | |
71 Outperform | $6.55B | 24.78 | 6.32% | 3.88% | 24.20% | 7.66% | |
70 Outperform | $3.95B | 30.56 | 4.43% | 6.72% | 6.10% | 9.74% | |
69 Neutral | $3.05B | 26.68 | 8.34% | 3.99% | 7.25% | 34.47% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $1.99B | -48.83 | -2.44% | 10.29% | -35.44% | 50.75% |
* Real Estate Sector Average
EPRT
Essential Properties Realty
30.27
-1.48
-4.66%
WPC
W. P. Carey Inc.
74.49
14.63
24.44%
UE
Urban Edge Properties
22.89
4.81
26.62%
GNL
Global Net Lease
9.39
2.33
32.91%
BNL
Broadstone Net Lease
20.58
5.33
34.93%
Essential Properties Realty Corporate Events
Dividends
Essential Properties Realty Raises Quarterly Dividend, Signals Confidence
Positive
Jun 1, 2026
On May 29, 2026, Essential Properties Realty Trust, Inc. said its board declared a second-quarter 2026 cash dividend of $0.32 per common share, implying an annualized payout of $1.28 per share. The dividend, payable on July 14, 2026 to shareholder...
Business Operations and StrategyFinancial Disclosures
Essential Properties Realty Highlights Stable Growth and Liquidity
Positive
Jun 1, 2026
On June 1, 2026, Essential Properties Realty Trust released an investor presentation detailing a portfolio that was 99.7% leased as of March 31, 2026, with average unit-level rent coverage of 3.5x and limited lease expirations through 2028, unders...
Executive/Board ChangesShareholder Meetings
Essential Properties Realty Shareholders Approve 2026 Meeting Proposals
Positive
May 12, 2026
Essential Properties Realty Trust, Inc. held its 2026 Annual Meeting of Stockholders on May 11, 2026, where investors voted on board elections, executive pay, say-on-pay frequency and the auditor appointment. With 93.9% of eligible shares represen...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Essential Properties Realty Lifts 2026 AFFO Guidance on Strong Q1
Positive
Apr 22, 2026
On April 22, 2026, Essential Properties Realty Trust reported first-quarter 2026 results marked by robust acquisition and capital-raising activity, alongside double-digit growth in key cash flow metrics. The REIT invested $388.6 million across 126...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Essential Properties Realty Highlights Strong Portfolio And Balance Sheet
Positive
Apr 7, 2026
On April 7, 2026, Essential Properties Realty Trust released an updated investor presentation outlining an operating update and supplemental information for its net-lease portfolio. The materials highlight that, as of year-end 2025 and through ear...
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-...
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.