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Essential Properties Realty (EPRT) AI Stock Analysis
Essential Properties Realty
(NYSE:EPRT)
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.
Essential Properties Realty Key Performance Indicators (KPIs)
Annualized Base Rent By SegmentShows the recurring rental income expected annually from each segment, providing insight into revenue stability and the strength of tenant relationships.
EPRT’s base rent is increasingly driven by Service and Industrial segments—both accelerate sharply from 2024 into 2026—while Experience stages a pronounced lift starting 2025 Q1 and Retail remains stagnant. That pattern signals a deliberate portfolio tilt toward higher-growth, service/industrial and experiential assets (likely via acquisitions/lease rollups), which can boost organic cashflow and resilience versus traditional retail; investors should favor the growth trajectory but monitor acquisition funding, integration risk and potential margin pressure from rapid expansion.
The FlyEssential Properties Realty (EPRT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $6.08B
- Dividend Yield
- 4.48%
- Average Volume (3M)
- 2.53M
- Price to Earnings (P/E)
- 22.7
- Beta (1Y)
- 0.24
- Revenue Growth
- 20.67%
- EPS Growth
- -1.36%
- Country
- US
- Employees
- 56
- Sector
- Real Estate
- Sector Strength
- 65
- Industry
- REIT - Diversified
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 under...
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 ar...
Essential Properties Realty Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative 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
Strong profitability and multi-year revenue expansion support the score (revenue grew from $230.2M in 2021 to $561.9M in 2025 and $687.8M TTM; TTM net margin ~38%). Balance sheet is solid with moderate leverage for a REIT (debt-to-equity ~0.65 TTM) and rising equity, but rising absolute debt and the key weakness—TTM free cash flow turning negative (-$142.4M)—reduce near-term flexibility despite healthy operating cash flow.
Income Statement
84Very PositiveBalance Sheet
76PositiveCash Flow
58Neutral| 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
Price Trends
Market Momentum
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 28.12 is above the 20-day moving average (MA) of 26.28, above the 50-day MA of 27.05, and below the 200-day MA of 29.82, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 96.44 is Negative, 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 60 risk factors in its most recent earnings report. Essential Properties Realty reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
1 New RiskEssential Properties Realty Peers Comparison
Overall Rating
WPC69Neutral- EPRT67Neutral
BNL62Neutral
GOOD61Neutral
OLP59Neutral
GNL51Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| WPC | 69Neutral | $14.87B | 22.54 | 7.69% | 5.72% | 8.96% | 75.31% |
| EPRT | 67Neutral | $6.09B | 22.68 | 5.99% | 4.48% | 20.67% | -1.36% |
| Sector * | 65Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
| BNL | 62Neutral | $3.45B | 23.72 | 5.07% | 6.48% | 7.70% | 61.99% |
| GOOD | 61Neutral | $562.41M | 27.23 | 6.29% | 11.02% | 10.65% | -33.01% |
| OLP | 59Neutral | $478.62M | 21.06 | 7.44% | 8.20% | 10.68% | -25.87% |
| GNL | 51Neutral | $1.60B | -27.27 | -0.84% | 10.72% | -29.60% | 77.14% |
* Real Estate Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EPRT | Essential Properties Realty Trust | 28.12 | -1.14 | -3.88% | |
| GOOD | Gladstone Commercial | 10.89 | 0.99 | 9.98% | |
| OLP | One Liberty Properties | 21.94 | 2.93 | 15.39% | |
| WPC | W. P. Carey Inc. | 65.36 | 1.62 | 2.54% | |
| GNL | Global Net Lease | 7.09 | -0.32 | -4.31% | |
| BNL | Broadstone Net Lease, Inc. | 18.03 | 1.01 | 5.93% |
Essential Properties Realty Corporate Events
Essential Properties Realty Raises 2026 AFFO Guidance
PositiveFor 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 inve...
Essential Properties Realty Expands Revolving Credit Facility Capacity
PositiveOn 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 and...
Essential Properties Realty Releases 2025 Corporate Responsibility Report
PositiveOn 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 highlights...
Essential Properties Realty Highlights Strong Liquidity and Leasing
PositiveEssential 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, f...
Essential Properties Realty refreshes leadership and investment team
PositiveOn 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 board...
Essential Properties Realty Trust Declares Third-Quarter Dividend
PositiveEssential 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. As o...
Essential Properties Realty Launches New $750 Million ATM Program
PositiveOn 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 sim...
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.
Date of analysis: Oct 23, 2026