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Essential Properties Realty
(NYSE:EPRT)
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Rating:73Outperform
Price Target:
$36.00
â–²(11.32% Upside)
Action:Reiterated
Date:07/25/26
The score is driven primarily by solid fundamentals (strong income statement and stable REIT leverage) and a positive earnings outlook with raised AFFO guidance and strong portfolio metrics. Technicals are supportive with the stock trading above major moving averages. Offsetting factors are weaker recent free cash flow (higher funding dependence) and a somewhat demanding valuation (P/E ~24.9) despite a ~3.9% dividend yield.
Positive Factors
High occupancy & long lease tenor
Near-full occupancy combined with long weighted-average lease terms provides durable, predictable rental cash flows and low re-leasing risk. Over 2–6 months this underpins stable AFFO and reduces volatility from tenant turnover, supporting sustainable dividend coverage and predictable capital planning.
Negative Factors
Negative trailing free cash flow
A negative TTM free cash flow position signals reliance on external financing to fund growth and dividends. Over the medium term this reduces flexibility, increases sensitivity to capital markets access and raises execution risk if funding costs rise or equity/debt channels tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy & long lease tenor
Near-full occupancy combined with long weighted-average lease terms provides durable, predictable rental cash flows and low re-leasing risk. Over 2–6 months this underpins stable AFFO and reduces volatility from tenant turnover, supporting sustainable dividend coverage and predictable capital planning.
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
$6.82B
Dividend Yield3.96%
Average Volume (3M)1.96M
Price to Earnings (P/E)24.3
Beta (1Y)0.33
Revenue Growth22.73%
EPS Growth7.26%
CountryUS
Employees56
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)1.29
Shares Outstanding216,273,010
10 Day Avg. Volume1,783,754
30 Day Avg. Volume1,956,374
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$36.83Price Target Upside13.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.32
Revenue Forecast (FY)$630.45M
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 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:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The earnings call conveyed strong operational and financial performance: healthy AFFO growth, increased guidance, robust Q2 investment activity with attractive yields, high occupancy, improving same-store rent growth and a strong balance sheet with $1.7B liquidity. Headwinds were modest and largely manageable — a small treasury dilution impact, conservative noncash loan reserves, some short-term coverage bucket movement, and potential dilution when replacing a 2027 term loan. Management emphasized diversified portfolio construction, disciplined capital deployment, and a sizable pipeline, suggesting continued execution and upside.Positive Updates
Strong Earnings and AFFO Growth
Reported GAAP net income of $74.5 million and AFFO of $110.1 million for Q2. AFFO per share was $0.50, up 9% versus Q2 2025, and nominal AFFO increased 18% year-over-year.
Negative Updates
Treasury Stock Method Dilution Headwind
Recent increase in share price created incremental treasury stock method dilution estimated to be a $0.01–$0.02 headwind to 2026 AFFO per share versus prior assumptions, tempering the magnitude of the guidance increase.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Earnings and AFFO Growth
Reported GAAP net income of $74.5 million and AFFO of $110.1 million for Q2. AFFO per share was $0.50, up 9% versus Q2 2025, and nominal AFFO increased 18% year-over-year.
Read all positive updates
Company Guidance
Management raised 2026 AFFO per share guidance to $2.01–$2.05 (up $0.01 on the low end), implying >7% growth at the midpoint and >8% at the high end, and increased investment volume guidance to $1.2–$1.5 billion; this is supported by Q2 execution of $332 million invested across 36 transactions (103 properties) — ~84% sale‑leasebacks — with an average initial cash yield of 7.8% (GAAP yield 9.1%), average investment size $3.1M/property, weighted average initial lease term ~16 years and escalations of 1.9%, and over $1.0 billion of closed + identified opportunities year‑to‑date with pipeline cap rates in the mid‑to‑high 7% range.
Balance sheet and capital metrics underpinning guidance include pro forma net debt/annualized adjusted EBITDA of 3.5x, $1.7 billion of available liquidity, ~$575M of unsettled forward equity, a $400M 10‑year unsecured bond issued at a 5.375% coupon, and ~ $85M of equity raised in Q2/after; treasury‑stock‑method dilution is expected to create a $0.01–$0.02 AFFO per share headwind (currently nearer $0.02).
Near‑term operating and cash flow context: Q2 AFFO per share was $0.50 (nominal AFFO $110.1M), cash dividend $0.32 (AFFO payout 64%), retained free cash flow after dividends $43M (~$170M annualized), cash G&A $7.2M (trending to the low half of $30–$34M guidance), portfolio occupancy 99.6%, same‑store rent growth 1.5% and rent coverage 3.5x — all of which management cites as the basis for their raised guidance.Essential Properties Realty Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 664.04M | 561.89M | 449.61M | 359.60M | 286.51M | 230.23M |
| Gross Profit | 443.03M | 472.26M | 444.61M | 354.93M | 283.05M | 224.47M |
| EBITDA | 562.71M | 518.96M | 404.97M | 352.05M | 253.50M | 199.95M |
| Net Income | 267.96M | 253.01M | 203.00M | 190.71M | 134.13M | 95.72M |
Balance Sheet | ||||||
| Total Assets | 7.49B | 6.86B | 5.80B | 4.77B | 4.00B | 3.30B |
| Cash, Cash Equivalents and Short-Term Investments | 134.23M | 60.18M | 40.71M | 39.81M | 62.34M | 59.76M |
| Total Debt | 2.92B | 2.52B | 2.13B | 1.69B | 1.44B | 1.19B |
| Total Liabilities | 3.04B | 2.66B | 2.23B | 1.78B | 1.50B | 1.25B |
| Stockholders Equity | 4.41B | 4.20B | 3.56B | 2.98B | 2.49B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | -140.82M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M |
| Operating Cash Flow | 414.07M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M |
| Investing Cash Flow | -1.17B | -1.15B | -1.12B | -857.13M | -706.08M | -829.68M |
| Financing Cash Flow | 868.39M | 798.35M | 810.70M | 580.01M | 506.80M | 689.06M |
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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $16.77B | 25.12 | 7.82% | 4.82% | 8.96% | 92.38% | |
73 Outperform | $6.82B | 24.26 | 6.37% | 3.83% | 22.73% | 7.26% | |
69 Neutral | $3.02B | 26.39 | 8.34% | 3.43% | 7.25% | 34.47% | |
69 Neutral | $4.11B | 28.17 | 6.80% | 5.21% | 6.71% | 46.35% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
51 Neutral | $1.85B | -22.36 | -2.44% | 8.56% | -35.44% | 50.75% |
* Real Estate Sector Average
EPRT
Essential Properties Realty
31.15
1.64
5.56%
WPC
W. P. Carey Inc.
72.91
10.29
16.43%
UE
Urban Edge Properties
22.60
3.50
18.30%
GNL
Global Net Lease
8.65
2.35
37.37%
BNL
Broadstone Net Lease
21.26
5.41
34.12%
Essential Properties Realty Corporate Events
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 ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Essential Properties Realty Raises 2026 AFFO Guidance
Positive
Jul 22, 2026
Essential Properties Realty Trust reported solid second-quarter 2026 results on July 22, 2026, with net income per share rising 6% to $0.34 and AFFO per share up 9% to $0.50 versus a year earlier. The company invested $332.4 million in 103 propert...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Essential Properties Realty Completes $400 Million Notes Offering
Positive
Jun 15, 2026
On June 15, 2026, Essential Properties, L.P., a subsidiary of Essential Properties Realty Trust, closed a $400 million underwritten public offering of 5.375% senior unsecured notes due July 15, 2036, fully and unconditionally guaranteed by the REI...
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...
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.