Key Takeaways
💸 EPRT offers a forward dividend yield of 3.69% with slow but steady growth, maintaining a stable quarterly payout supported by long-term lease structures.
💼 Operating and free cash flow reached $318.9 million over the trailing 12 months, showing consistent year-over-year growth and strong liquidity management.
📊 Analysts maintain a positive outlook with an average 12-month price target of $34.93; recent updates include both upgrades and cautious adjustments tied to valuation.
📈 First-quarter 2025 earnings showed a 25% revenue increase and 7% AFFO per share growth, with leadership reaffirming guidance and a confident outlook.
Last Update 5/4/25
Essential Properties Realty Trust (EPRT) specializes in single-tenant, service-oriented properties under long-term net leases, with a portfolio spanning over 2,100 locations and an occupancy rate near 99.7%. Focused on sale-leaseback transactions with middle-market operators, the company has built a stable stream of cash flow backed by predictable lease terms and inflation-linked rent escalators.
Its recent earnings reflect steady growth, with revenue up 25% year-over-year and AFFO per share reaching \$0.45. The stock currently yields 3.69% and maintains a solid balance sheet with a net debt to EBITDAre ratio of 3.4x, supported by over \$1.5 billion in available liquidity.
Recent Events
EPRT kicked off 2025 with a continuation of the themes that have shaped its growth over the last few years. Revenue in the most recent quarter rose 25% year-over-year, driven by an expanding portfolio and rent escalations baked into existing leases. Earnings per share over the trailing twelve months came in at $1.16, which marks nearly 20% growth from the year prior. That kind of steady climb is what income investors like to see—not a spike, just a firm upward slope.
There weren’t any splashy acquisitions or strategic shifts in Q1. Instead, management focused on executing the core business. That’s the way they’ve run things from the beginning—cautious growth, stable financials, and predictable performance.
The most recent dividend was paid on April 11, 2025, with an ex-dividend date back on March 31. That puts the forward yield at 3.69%, a touch below its historical average but still plenty appealing for those building income portfolios.
As for the stock price, it’s been holding steady around $32. It sits right near its 200-day moving average, which suggests a well-balanced investor base. After-hours trading following the latest report was muted, with a slight drop—not surprising, given the absence of major catalysts. But there’s no indication of any material investor concern.
Financially, the company continues to keep its balance sheet in good shape. With a current ratio close to 3.0 and a total debt-to-equity of 56%, liquidity and leverage remain well under control. Total cash stands at $47 million, with plenty of cushion for future opportunities or any bumps in the road.
Key Dividend Metrics 📊
💰 Forward Dividend: $1.18
📈 Yield: 3.69%
📅 Ex-Dividend Date: March 31, 2025
📊 5-Year Average Yield: 4.28%
🔁 Payout Ratio: 100.86%
📉 Dividend Growth (1-Year): 0.85%
📆 Last Paid Dividend: April 11, 2025
🏛 Dividend Safety: Stable and secure
Dividend Overview
EPRT’s dividend yield sits at a level that works well for long-term investors. It’s enough to generate meaningful cash flow, without relying on unusually high-risk assets or unpredictable tenants. The 3.69% forward yield is slightly below the five-year average, which reflects a bit of price appreciation over the past year. That kind of movement isn’t cause for concern—if anything, it shows that income investors are willing to pay a little more for reliability.
Now, the payout ratio based on earnings is over 100%, which might sound aggressive. But for REITs, this isn’t necessarily a red flag. Since they’re structured to pass along most of their income to shareholders, the more telling number would be funds from operations (FFO). And historically, EPRT has had a comfortable cushion when measured by FFO, even if GAAP earnings tell a different story.
The nature of EPRT’s tenants helps back up the stability. These are mostly service-based businesses—places that people still go to when times are tough. That’s an important distinction. A lot of the rent coming in is from operators with stable cash flow, meaning the dividend has a strong foundation underneath it.
Dividend Growth and Safety
What stands out with EPRT isn’t explosive growth—it’s consistency. The company hasn’t made huge dividend hikes, but it’s been increasing its payout little by little. Over the last five years, growth has been steady, if modest, and the latest increase followed that same pace. That might not thrill aggressive growth investors, but for those who value predictability, it’s right in the sweet spot.
From a safety perspective, there’s plenty to like. The company’s leverage is manageable, with debt sitting at a level that doesn’t create stress. Most of the debt is fixed-rate, which limits exposure to interest rate volatility. With over $2 billion in debt and a robust operating model, EPRT is in a position to continue funding its dividend comfortably.
Lease terms average 14 years, and occupancy remains high. That’s a big advantage. It means EPRT isn’t constantly chasing new tenants or facing large rent roll-offs. The majority of its revenue is locked in for the long term, and a good chunk of those leases include inflation-linked escalators, which helps the company preserve purchasing power over time.
Institutional ownership sits above 100%, which might sound strange but actually reflects strong demand and cross-holdings from ETFs and funds. Insider ownership is light, at just 0.6%, but that’s fairly typical for a REIT of this size and structure. The real endorsement comes from institutional buyers who rely on stable dividends to meet their mandates.
All in all, EPRT continues to offer a straightforward, dependable option for income investors. The dividend may not be eye-popping, but it’s reliable, backed by a strong tenant base, and supported by conservative financial management.
Cash Flow Statement
Essential Properties Realty Trust has shown consistent strength in operating cash flow, reaching $318.9 million over the trailing twelve months (TTM). That’s a notable climb from $167.4 million in 2021, marking steady, healthy growth in the company’s ability to generate cash from its core property leasing operations. Free cash flow mirrors this trend exactly, underscoring that the company’s capital needs are modest and its earnings power is translating directly into usable cash.
On the investing side, cash outflows have expanded significantly, hitting $1.18 billion in the TTM period. This reflects EPRT’s aggressive acquisition strategy, continuing to build out its property base. Financing activity has kept pace, with over $825 million brought in, including $604 million in new equity and $820 million in new debt. The debt is being managed with regular repayments, totaling $375 million in the same period. Despite this capital-intensive cycle, the company still ended with over $47 million in cash, showing that it’s striking a careful balance between growth and liquidity.
Analyst Ratings
📊 Essential Properties Realty Trust (EPRT) has recently seen a mix of opinions from Wall Street, reflecting a balance between optimism over its consistent performance and caution about the current valuation.
🔻 B. Riley Securities shifted its stance on the stock, downgrading it from “Strong Buy” to “Hold.” While that sounds like a step back, they actually raised their price target from $30 to $34. Their rationale centered on rising concerns about tenant credit profiles and an increasingly mature property portfolio, which could introduce headwinds down the road. It’s less about company missteps and more about being prudent in a higher-rate environment.
🟢 On the other side, Deutsche Bank jumped in with a fresh “Strong Buy” rating and issued a price target of $38. They emphasized the REIT’s solid fundamentals, disciplined acquisition strategy, and long lease terms with recession-resilient tenants. That bullish call reflects confidence in EPRT’s ability to continue delivering reliable income and moderate growth.
🟠 Barclays kept its “Buy” rating in place but trimmed its target from $36 to $35, suggesting a more conservative stance on future appreciation potential. Even with this slight adjustment, the signal remains positive.
💵 The overall analyst consensus points to a 12-month average price target of $34.93. That implies a roughly 10% upside from the current share price, supported by a foundation of strong cash flow and dependable dividend performance.
Earning Report Summary
A Strong Start to 2025
Essential Properties Realty Trust opened the year with a quarter that hit the right notes for investors looking for steady, dependable performance. Revenue came in at $129.4 million for the first quarter, which marked a healthy 25% jump compared to the same period last year. Funds from operations, or AFFO per share, landed at $0.45, which is about a 7% increase from last year. Net income per share also saw a modest bump, rising 4% to $0.29.
These results were backed by a solid pace of acquisitions. EPRT added 48 new properties during the quarter, putting $307.7 million to work. Most of those deals were sale-leasebacks—something the company does well—locking in long-term leases with strong tenants. The average lease term on the new deals was a solid 17.5 years, and they were done at an average cash cap rate of 7.8%, which speaks to disciplined underwriting. As of now, the total portfolio includes over 2,100 properties, with occupancy sitting comfortably at 99.7%.
Leadership’s Take and What’s Next
CEO Pete Mavoides sounded upbeat when commenting on the quarter. He pointed to the strength of EPRT’s tenant relationships and the resilience of its real estate strategy. Even with higher interest rates and a somewhat uncertain economy, the company has kept its pipeline full and its acquisition process focused on quality and consistency.
On the financial side, EPRT raised around $313 million through equity offerings, including a follow-on deal and additional issuance via its ATM program. That capital gives them flexibility, and it shows in the numbers. Liquidity now sits around $1.5 billion, which includes a fully available $1 billion credit facility. The debt profile looks solid, with the net debt to annualized adjusted EBITDAre ratio coming in at 3.4x on a pro forma basis—very manageable by REIT standards.
Looking to the rest of the year, the company reaffirmed its full-year AFFO guidance of $1.85 to $1.89 per share. That’s a confident stance, suggesting management feels good about how things are shaping up. The dividend remains steady as well, holding at $0.295 per share for the quarter, continuing the company’s track record of consistency.
Chart Analysis
Price Trends and Moving Averages
EPRT has spent the past year carving out a pattern of strength with periods of consolidation. The stock began its climb last summer, moving from the mid-$26 range and peaking around $34 in December. From there, it entered a sideways phase, marked by a tug-of-war between buyers and sellers. What’s notable is how price action has respected the 200-day moving average, especially during periods of volatility. Even with a sharp dip in early March, the price bounced cleanly off that level, which has acted as dependable support throughout the year.
The 50-day moving average flattened and slightly dipped early in the year but is now curling upward again, suggesting momentum is shifting back to the upside. The recent crossover above the 200-day moving average—a classic bullish signal—adds to the case that the trend may be preparing for another leg higher, assuming broader conditions cooperate.
Volume Activity and Participation
Volume has remained fairly steady across most of the year, with a few noticeable spikes during selloffs and rebounds. Those moments, especially around November and March, show strong participation on both sides. The surge in buying volume in late March after the price dipped below $29 was especially telling—it marked a clear rejection of lower prices, reinforcing support in that zone.
Lack of excessive volume during recent price increases suggests accumulation is still controlled and measured. There’s no mania or fear-driven activity, which aligns with how this name usually trades—quietly, with purpose.
RSI Behavior and Momentum
The Relative Strength Index (RSI) has done a good job confirming what the chart has shown visually. It’s rarely reached overbought levels and has found footing near the 30–40 range during each dip. The latest RSI reading hovers just under 70, pointing to strong momentum but not yet signaling exhaustion.
What stands out is the consistency in RSI recovery. Every time it’s dipped, it’s bounced quickly, hinting at underlying demand. That kind of behavior adds to the sense that dips continue to be met with accumulation rather than panic.
Overall Setup
The chart shows a name that’s moved from a strong uptrend into a longer consolidation phase, and now seems to be breaking out again with improving technicals. The alignment of price action above both moving averages, a resilient RSI, and calm but steady volume makes for a constructive long-term setup. There’s no indication of frothy behavior—just a methodical approach to building value over time.
Management Team
At the core of Essential Properties Realty Trust’s strategy is a leadership team that clearly knows the business of net lease real estate inside and out. CEO Pete Mavoides brings decades of experience in sale-leaseback transactions, and his approach reflects a steady hand rather than a speculative one. He’s been with the company since its early days and has steered it through both expansive growth and more cautious, rate-sensitive environments with clarity.
The broader executive team operates with a low-profile, no-drama style that fits well with the company’s methodical acquisition strategy. Their communication with shareholders has been consistent, with a strong emphasis on transparency, long-term focus, and discipline when it comes to capital allocation. You won’t hear bold proclamations or overreaching ambitions, and that’s not a flaw—it’s part of what gives EPRT its credibility.
Management has also done a commendable job of maintaining tenant quality and navigating rising interest rates without compromising balance sheet strength. The consistency in execution suggests a team that understands risk and knows when to lean in versus when to hold back. This has helped preserve dividend stability and build investor trust, particularly for those looking for reliability over flash.
Valuation and Stock Performance
Over the past year, EPRT has delivered a respectable total return, with the stock appreciating by nearly 18 percent from its 52-week low. It’s held its ground while many other REITs saw meaningful volatility. That performance is partly thanks to the stability of its tenant base, but it also reflects the market’s view that the company remains fundamentally sound even amid shifting rate expectations.
Valuation-wise, the stock trades at a forward price-to-earnings ratio of around 26, which sits within range for net lease peers but might appear a bit elevated at first glance. However, a deeper look shows that much of that premium is justified by consistent revenue growth, high occupancy rates, and a fortress-like lease structure. The price-to-book ratio sits near 1.66, signaling that shares aren’t in bargain territory, but also not overstretched relative to the underlying real estate value.
What’s worth noting is that despite recent upward movement, EPRT is still trading slightly below its highs from late 2023. That leaves some room for continued upside, particularly if interest rate pressures stabilize. The stock also shows strong technical support near its 200-day moving average, which has helped buffer short-term swings and reinforces investor confidence.
In terms of trading behavior, EPRT exhibits the kind of steady rhythm typical of income-focused names. There’s enough liquidity to allow meaningful institutional participation without the kind of excessive volatility seen in smaller-cap names. With average daily volume around 1.8 million shares, it’s an actively traded REIT, but one that doesn’t swing wildly on headlines.
Risks and Considerations
Like any REIT, EPRT isn’t without its vulnerabilities. The most obvious is interest rate sensitivity. Higher rates tend to put pressure on REIT valuations, especially those that rely on external capital to fund acquisitions. While EPRT has managed this well so far, sustained high borrowing costs could impact its ability to grow the portfolio at the same pace without diluting shareholder value.
Tenant concentration is another area to monitor. While the portfolio is broad—with over 2,100 properties—the REIT focuses on service-based industries. That niche is generally resilient, but certain categories like casual dining or fitness could see pressure if consumer discretionary spending pulls back in a recessionary environment.
There’s also the matter of the payout ratio, which based on EPS appears high. Although REITs are better evaluated using FFO or AFFO, and EPRT does have sufficient coverage on that front, a payout above 100 percent on traditional earnings will always raise questions. If earnings growth stalls or acquisition activity slows, management will need to demonstrate continued discipline to avoid tapping into reserves.
Regulatory risk is minimal given the nature of EPRT’s properties, but broader tax law changes impacting REITs could always surface as a longer-term consideration. For now, the structure remains favorable, but any shift in REIT tax treatment or 1031 exchange rules could have ripple effects across the sector.
Final Thoughts
Essential Properties Realty Trust offers something that’s increasingly hard to find in the real estate space: predictability. Its strategy isn’t built on high-stakes development or complicated financial engineering. Instead, it revolves around acquiring everyday-use properties, locking in long-term leases, and paying out consistent income. That model may not make headlines, but it tends to hold up well through different economic cycles.
The management team’s conservative posture and ability to execute without overreaching have earned it the trust of a wide investor base. With strong fundamentals, a portfolio of necessity-driven tenants, and a solid capital position, the company looks well-positioned to navigate whatever challenges 2025 brings.
While the stock isn’t trading at a deep discount, its steady performance and reliable cash flow make it a compelling option for investors looking to balance income with stability. The recent price action suggests that the market shares that view, and the upward momentum supported by technicals hints that sentiment remains favorable.
Every name carries risks, and EPRT is no exception. But in an environment where dependability matters, this REIT has shown it knows how to deliver.