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 GAAP net income of $68.3 million and AFFO of $99.7 million for the quarter, with an actual EPS of $0.3376, missing analyst estimates of $0.49. The company's revenue growth is expected to be around 10.0% next year, according to analyst estimates. The investment volume was robust, with $296 million of investments sourced, 85% of which came from existing relationships, highlighting the strength of their network.
Publication Date: Feb -13
The company's financial performance was solid, with an average initial cash yield of 7.7% and a GAAP yield of 9.1%, indicating disciplined pricing. The portfolio demonstrated resilient tenant credit trends, with same-store rent growth of 1.6% and robust rent coverage of 3.6 times. The weighted average lease term remained stable at approximately 14 years, with only 5.2% of annual base rent expiring over the next five years.
The company increased its 2026 AFFO per share guidance range to $1.99 to $2.04, implying a growth rate of around 7% at the midpoint and 8% at the high end. Robert W. Salisbury noted that the update was due to better-than-expected portfolio credit trends, stating that "we tend to be pretty conservative when we build that initial range." The investment pipeline remains strong, with a record subsequent-quarter investment activity of over $200 million.
With a P/E Ratio of 25.01 and a Dividend Yield of 3.81%, the market is pricing in a certain level of growth and return for shareholders. The company's ROE is 6.45%, and ROIC is 47.76%, indicating efficient capital allocation. The Net Debt / EBITDA ratio is -0.13, suggesting a healthy debt position. These metrics suggest that the company is well-positioned for future growth, but investors should consider the potential risks and challenges in the market.
The company's investment strategy remains focused on sourcing investments through existing relationships, with 85% of investments coming from this channel. Peter M. Mavoides noted that they aim for a 75/25 balance between growing with current partners and forming new ones. The investment pipeline is expected to remain strong, with a forecast of $1,000 million to $1,400 million of investments.
A Crude Awakening
Mar -15
Essential Properties Realty Trust, Inc. $EPRT Shares Sold by Victory Capital Management Inc.
Mar -10
Essential Properties Realty Trust, Inc. $EPRT Shares Acquired by Barclays PLC
Mar -09
What Makes REITs So Rewarding
Mar -08
Essential Properties Realty Trust (NYSE:EPRT) Reaches New 1-Year High After Analyst Upgrade
Mar -03
Rates Down, REITs Up! It's Opportunity Cost
Feb -20
Essential Properties Realty Trust, Inc. Announces Pricing of Upsized Public Offering of Common Stock
Feb -18
Essential Properties Realty Trust, Inc. Announces Public Offering of Common Stock
Feb -17
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: 7.1
Growth: 3.9
Quality: 5.9
Yield: 10.0
Momentum: 6.0
Volatility: 10.0
1-Year Total Return ->
Value: 3.5
Growth: 4.3
Quality: 6.6
Yield: 10.0
Momentum: 8.0
Volatility: 10.0
1-Year Total Return ->
Value: 4.1
Growth: 3.8
Quality: 6.6
Yield: 10.0
Momentum: 7.0
Volatility: 10.0
1-Year Total Return ->
Value: 3.0
Growth: 6.8
Quality: 7.0
Yield: 8.0
Momentum: 5.0
Volatility: 10.0
1-Year Total Return ->
Value: 6.8
Growth: 6.2
Quality: 8.2
Yield: 10.0
Momentum: 0.5
Volatility: 5.0
1-Year Total Return ->
Value: 3.5
Growth: 3.2
Quality: 7.1
Yield: 0.0
Momentum: 3.0
Volatility: 2.3
1-Year Total Return ->