GICS Sector : Real Estate
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 services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis.As of December 31, 2021, it had a portfolio of 1, 451 properties.
Essential Properties Realty Trust reported a robust financial performance in Q3 2025, with AFFO per share totaling $0.48, representing a 12% increase versus Q3 2024. The company's revenue growth was driven by its investment portfolio, which generated $370 million in investments at a weighted average cash yield of 8% and a GAAP yield of 10%. Notably, the actual EPS came in at $0.33, slightly below estimates of $0.48. The portfolio's performance was highlighted by same-store rent growth of 1.6%, an increase in overall rent coverage to 3.6x, and a decline in the percentage of ABR under 1x rent coverage.
Publication Date: Oct -25
The company's investment pipeline remains strong, with cap rates in the mid- to high 7% range. EPRT expects to invest between $1 billion and $1.4 billion in 2026, driven by its focus on sale-leaseback opportunities with service-based companies. As Peter Mavoides, EPRT's management, noted, "We're finding new relationships and partners," with 70% of acquisitions coming from existing relationships, indicating EPRT's growth as a source of capital.
EPRT's capital position remains healthy, with pro forma leverage of 3.8x and $1.4 billion of liquidity. The company successfully executed a $400 million 10-year unsecured bond offering in August, improving its weighted average debt maturity to 4.5 years. EPRT used debt during the quarter and a small amount of dispositions for funding, and management remains open to both debt and equity markets, depending on pricing.
Analysts estimate next year's revenue growth at 13.4%. With a P/E Ratio of 25.68 and an EV/EBITDA of 17.81, the market appears to be pricing in a certain level of growth. EPRT's 2026 guidance reflects a growth rate of 6-8% in AFFO per share, which management views as derisked from an execution perspective. The company's focus on G&A efficiencies and its platform is expected to drive future growth.
EPRT's investment strategy remains focused on service and experience-based industries with less volatility. The company's credit underwriting process involves underwriting real estate and unit-level profitability, followed by a review of corporate credit. EPRT assumes a credit loss rate of around 30 basis points, similar to historical experience.
Charles Schwab Investment Management Inc. Raises Stock Position in Essential Properties Realty Trust, Inc. $EPRT
Nov -29
Ameritas Investment Partners Inc. Acquires 2,549 Shares of Essential Properties Realty Trust, Inc. $EPRT
Nov -29
B&I Capital AG Has $6.51 Million Holdings in Essential Properties Realty Trust, Inc. $EPRT
Nov -27
Essential Properties Realty Trust, Inc. $EPRT Shares Acquired by Teacher Retirement System of Texas
Nov -05
Fed Cleared For Descent
Oct -26
Essential Properties Realty Trust: Sometimes Performance Comes At A Price
Oct -26
Rental Properties Are Overrated - REITs Are The Real Opportunity
Oct -25
Essential Properties Realty Trust, Inc. (EPRT) Q3 2025 Earnings Call Transcript
Oct -23
Rental growth of 12% driven by Essential Properties Realty Trust's strategic acquisitions of high-quality, single-tenant properties with long-term leases, increasing demand for industrial and retail spaces, and rising rents in prime locations, coupled with the company's active asset management and capital recycling strategies.
The 10% growth in Interest on Loans and Direct Financing Lease Receivables from Essential Properties Realty Trust, Inc. is driven by increasing demand for commercial real estate, expansion of the company's portfolio, and rising interest rates. Additionally, the trust's focus on investing in high-quality, long-term leases and its ability to maintain a strong credit profile also contribute to the growth.
Essential Properties Realty Trust, Inc.'s 8% growth is driven by increasing demand for single-tenant properties, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on experiential and necessity-based retail, such as restaurants and convenience stores, has contributed to its growth. Furthermore, the company's strong balance sheet and access to capital have enabled it to capitalize on opportunities in the market.
Essential Properties Realty Trust, Inc. offers a diversified portfolio of net lease properties, providing a steady income stream to investors.
The company facilitates sale-leaseback transactions, allowing businesses to monetize their real estate assets while maintaining operational control.
Essential Properties offers build-to-suit development services, creating customized properties tailored to clients' specific needs.
The company provides comprehensive property management services, ensuring optimal property performance and maximizing returns for investors.
The threat of substitutes for Essential Properties Realty Trust, Inc. is medium due to the availability of alternative investment options in the real estate industry.
The bargaining power of customers for Essential Properties Realty Trust, Inc. is low due to the company's diversified tenant base and long-term leases.
The bargaining power of suppliers for Essential Properties Realty Trust, Inc. is medium due to the company's dependence on a few large suppliers for property maintenance and management services.
The threat of new entrants for Essential Properties Realty Trust, Inc. is high due to the relatively low barriers to entry in the real estate investment trust (REIT) industry.
The intensity of rivalry for Essential Properties Realty Trust, Inc. is high due to the competitive nature of the REIT industry and the presence of several established players.
| Value | |
|---|---|
| Debt Weight | 36.04% |
| Debt Cost | 3.95% |
| Equity Weight | 63.96% |
| Equity Cost | 10.31% |
| WACC | 8.02% |
| Leverage | 56.35% |
Value: 6.6
Growth: 2.3
Quality: 6.0
Yield: 10.0
Momentum: 6.0
Volatility: 10.0
1-Year Total Return ->
Value: 3.4
Growth: 4.3
Quality: 6.3
Yield: 9.0
Momentum: 7.0
Volatility: 10.0
1-Year Total Return ->
Value: 3.8
Growth: 3.8
Quality: 6.8
Yield: 10.0
Momentum: 5.0
Volatility: 10.0
1-Year Total Return ->
Value: 2.9
Growth: 6.8
Quality: 6.8
Yield: 8.0
Momentum: 4.0
Volatility: 10.0
1-Year Total Return ->
Value: 6.6
Growth: 6.3
Quality: 8.4
Yield: 10.0
Momentum: 0.5
Volatility: 4.7
1-Year Total Return ->
Value: 4.3
Growth: 3.2
Quality: 7.7
Yield: 0.0
Momentum: 2.5
Volatility: 3.3
1-Year Total Return ->