Essential Properties Realty Trust, Inc. (EPRT) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Essential Properties Realty Trust, Inc. (EPRT) Real Estate Portfolio & Strategy

Essential Properties Realty Trust is a REIT specializing in single-tenant properties leased to middle-market businesses across diverse sectors like restaurants, car washes, and healthcare. With a focus on long-term leases and a geographically dispersed portfolio, EPRT aims to deliver consistent income and growth, distinguishing itself through tenant diversification and strategic property selection.

What Is the Investment Thesis for EPRT?

Essential Properties Realty Trust presents a compelling investment case based on its diversified portfolio of single-tenant properties and focus on middle-market companies. The company's high occupancy rates and long-term lease agreements provide a stable revenue stream. With a dividend yield of 3.89% and a profit margin of 43.3%, EPRT offers a blend of income and growth potential. Key catalysts include continued expansion of its property portfolio and strategic acquisitions in high-growth sectors. However, potential risks include interest rate fluctuations and economic downturns impacting tenant performance. The company's P/E ratio of 24.9 reflects investor confidence in its long-term prospects.

Based on FMP financials and quantitative analysis

EPRT Key Highlights

Market capitalization of $6.73B, indicating substantial investor confidence.

• Profit margin of 43.3% demonstrates efficient operations and strong profitability.
• Gross margin of 70.3% reflects the company's ability to generate significant revenue from its properties.
• Dividend yield of 3.89% provides an attractive income stream for investors.
• Beta of 1.02 indicates that the stock's volatility is similar to the overall market.

Who Are EPRT's Competitors?

EPRT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are EPRT's Key Strengths?

Diversified tenant base across various industries.

• Long-term lease agreements providing stable income.
• High occupancy rates due to focus on essential service industries.
• Geographically dispersed portfolio mitigating regional risks.

What Are EPRT's Weaknesses?

Exposure to economic downturns affecting tenant performance.

• Reliance on middle-market companies, which may be more vulnerable than larger corporations.
• Sensitivity to interest rate fluctuations.
• Potential for property vacancies and lease defaults.

What Could Drive EPRT Stock Higher?

Continued expansion of property portfolio through strategic acquisitions.

• Diversification of tenant base into new industries and regions.
• Focus on sustainable properties to attract environmentally conscious tenants and investors.
• Potential for increased rental rates due to inflation and rising property values.
• Strategic partnerships to access new capital and expertise.

What Are the Key Risks for EPRT?

Financial-distress signal — its Altman Z-Score of 1.69 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 6 of the last 8 reported quarters.
• Economic downturns leading to decreased tenant demand and rental income.
• Rising interest rates increasing borrowing costs.
• Increased competition from other REITs and real estate investors.
• Changes in regulations affecting the REIT sector.
• Property vacancies and lease defaults.

What Are the Growth Opportunities for EPRT?

• Expansion of Property Portfolio: Essential Properties Realty Trust has the opportunity to grow its portfolio through strategic acquisitions of single-tenant properties in high-growth sectors. By targeting properties leased to essential businesses, such as healthcare providers and grocery stores, EPRT can enhance its revenue stream and reduce risk. The market for single-tenant properties is estimated to be worth billions of dollars, providing ample opportunities for EPRT to expand its footprint. Timeline: Ongoing.
• Diversification of Tenant Base: While EPRT already has a diversified tenant base, there is still room to further diversify by targeting new industries and geographic regions. By expanding into new markets, EPRT can reduce its reliance on any single tenant or region. This will help to mitigate risk and ensure a more stable income stream. Timeline: Ongoing.
• Strategic Partnerships: Essential Properties Realty Trust can form strategic partnerships with other real estate companies or financial institutions to access new capital and expertise. These partnerships can help EPRT to accelerate its growth and expand its capabilities. For example, EPRT could partner with a private equity firm to acquire a large portfolio of properties. Timeline: Ongoing.
• Technological Innovation: EPRT can invest in technology to improve its property management and tenant relations. By implementing advanced property management software, EPRT can streamline its operations and reduce costs. Additionally, EPRT can use technology to enhance tenant satisfaction and retention. Timeline: Ongoing.
• Focus on Sustainability: As environmental concerns continue to grow, EPRT can focus on developing and acquiring sustainable properties. By investing in energy-efficient buildings and renewable energy sources, EPRT can attract environmentally conscious tenants and investors. This will also help to reduce EPRT's operating costs and improve its long-term sustainability. Timeline: Ongoing.

What Are EPRT's Competitive Advantages?

• Diversified tenant base across various industries reduces risk.
• Long-term lease agreements provide stable and predictable income.
• Focus on middle-market companies in essential service industries ensures high occupancy rates.
• Geographically dispersed portfolio mitigates regional economic risks.

What Does EPRT Do?

Essential Properties Realty Trust, Inc. was founded in 2016 and is headquartered in Princeton, New Jersey. The company operates as a real estate investment trust (REIT) that specializes in acquiring, owning, and managing single-tenant properties across the United States. These properties are leased to middle-market companies operating in a variety of sectors, including restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness. EPRT's business model focuses on establishing long-term lease agreements with its tenants, providing a stable and predictable income stream. As of December 31, 2021, Essential Properties Realty Trust's portfolio consisted of 1,451 properties. The company's strategy involves carefully selecting properties and tenants to ensure diversification and minimize risk. By focusing on middle-market companies in essential service industries, EPRT aims to maintain high occupancy rates and consistent rental income. The REIT structure requires the company to distribute at least 90% of its taxable income to stockholders, making it a noteworthy option for income-seeking investors.

What Products and Services Does EPRT Offer?

• Acquires single-tenant properties across the United States.
• Owns and manages a diversified portfolio of real estate assets.
• Leases properties to middle-market companies in various sectors.
• Focuses on long-term lease agreements for stable income.
• Operates as a real estate investment trust (REIT).
• Distributes a significant portion of its taxable income to stockholders.
• Manages a portfolio of 1,451 properties as of December 31, 2021.

How Does EPRT Make Money?

• Acquires single-tenant properties leased to middle-market companies.
• Generates revenue through long-term lease agreements.
• Distributes at least 90% of taxable income to stockholders to maintain REIT status.
• Manages and maintains its property portfolio to ensure tenant satisfaction and property value.

What Industry Does EPRT Operate In?

Essential Properties Realty Trust operates within the REIT sector, which has experienced steady growth due to increasing demand for income-generating real estate assets. The diversified REIT sub-segment allows EPRT to mitigate risk by investing in various property types and industries. The competitive landscape includes companies like First Industrial Realty Trust, Inc. (FR) and Rexford Industrial Realty, Inc. (REXR), but EPRT differentiates itself through its focus on middle-market tenants and essential service industries. The REIT sector is influenced by interest rates, economic growth, and regulatory changes.

Who Are EPRT's Key Customers?

• Restaurants
• Car washes
• Automotive services
• Medical and dental services
• Convenience stores
• Equipment rental
• Entertainment
• Early childhood education
• Grocery
• Health and fitness

Essential Properties Realty Trust, Inc. Financial Trajectory

Essential Properties Realty Trust, Inc. (EPRT) reported $208.0M in revenue for Q2 2026, reflecting 29.6% growth compared to the prior quarter. The company recorded net income of $74.5M, with diluted EPS of $0.34. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Real Estate company. Across the four most recent quarters, EPRT averaged $0.32 in diluted EPS.

Company Profile

Essential Properties Realty Trust, Inc. operates in the REIT - Diversified industry within the Real Estate sector. It is headquartered in Princeton, US. The company is led by CEO Peter Mavoides. EPRT has traded publicly since 2018.

How Essential Properties Realty Trust, Inc. Is Valued

Essential Properties Realty Trust, Inc. carries a market capitalization of $6.73B, placing it in the mid-cap category. Relative to its peer group, EPRT's quantitative score of 71/100 is roughly in line with the peer average of 70/100.

Return on equity for Essential Properties Realty Trust, Inc. stands at 6.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.6%, showing how much profit it generates from its asset base. EPRT trades at a trailing price-to-earnings ratio of 24.85, above the Real Estate sector average of ~21x. Its free cash flow yield is -7.0%, a gauge of the cash the business throws off relative to its market value. Its earnings yield is 4.0%, the inverse of the P/E and a quick read on earnings relative to price.

Essential Properties Realty Trust, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.69 places it in the distress zone, a signal of elevated financial risk.

Essential Properties Realty Trust, Inc. has missed Wall Street's EPS estimate in 6 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 15.3% below estimates on average.

Wall Street analysts project Essential Properties Realty Trust, Inc. revenue of about $630.5M for fiscal 2026, with EPS near $1.32. The estimate reflects 6 contributing analysts.

EPRT Financials

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EPRT Analyst Consensus

EPRT MoonshotScore

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What Investors Ask About Essential Properties Realty Trust, Inc. (EPRT) — Real Estate

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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