Essential Properties Realty Trust, Inc. (EPRT) is a real estate enterprise focused on the acquisition, ownership, and management of freestanding, single-tenant commercial ...
Essential Properties Realty Trust, Inc. (EPRT) is an internally managed real estate investment trust (REIT) headquartered in Princeton, New Jersey. Founded in 2016, the company focuses on the acquisition, ownership, and management of freestanding, single-tenant commercial properties leased under long-term net lease agreements to a diversified portfolio of middle-market tenants. ...Essential Properties Realty Trust, Inc. (EPRT) is an internally managed real estate investment trust (REIT) headquartered in Princeton, New Jersey. Founded in 2016, the company focuses on the acquisition, ownership, and management of freestanding, single-tenant commercial properties leased under long-term net lease agreements to a diversified portfolio of middle-market tenants. As of December 31, 2021, EPRT owned 1,451 properties across the United States. The tenant base spans multiple sectors, including restaurants, automotive care, medical and dental offices, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness. EPRT's business model emphasizes long-term leases with built-in rent escalations, primarily on a triple-net basis, where tenants are responsible for property expenses such as maintenance, insurance, and taxes. The company targets tenants with strong unit-level economics and operational histories, aiming for stable cash flows and growth. EPRT is structured as a REIT, which generally exempts it from federal income taxes provided it distributes at least 90% of taxable income to shareholders. As of the latest data, EPRT has a market capitalization of approximately $6.6 billion, with a stock price of $30.63. The company's financial metrics indicate a robust gross profit margin of 66.7% and an EBITDA margin of 84.7%, reflecting its efficient capital-light model. It has a beta of 0.904, suggesting lower volatility than the market. EPRT pays a dividend, with a recent annual dividend per share of $1.24 and a dividend yield of 4.0%. The company employs around 56 individuals, indicating a lean operational structure managed by a small team. Leadership includes President and CEO Peter Mavoides, who has been in his role since 2018, and the company maintains a strong focus on disciplined capital allocation, including investment-grade balance sheet management. EPRT's stock is listed on the New York Stock Exchange under the ticker EPRT, and it went public in June 2018.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$561.9M
+25.0%
+29.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$253.0M
+24.6%
+24.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+84.0%
-15.0%
+73.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+64.5%
+4.3%
-21.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+45.0%
-0.3%
-3.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$381.1M
+23.5%
+299.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+67.8%
-1.2%
+253.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
60.1%
+0.6%
+10.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
6.13x
-4.1%
-99.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good morning, ladies and gentlemen, and welcome to Essential Properties Realty Trust Second Quarter 2026 Earnings Conference Call. This conference call is being recorded, and a replay of the call will be available 3 hours after the completion of the call for the next 2 weeks. The dial-in details for the replay can be found in yesterday's press release. Additionally, there will be an audio webcast available on Essential Properties' website at www.essentialproperties.com, an archive of which will be available for 90 days. On the call this morning are Peter Mavoides, President and Chief Executive Officer; Rob Salisbury, Chief Financial Officer; Max Jenkins, Chief Operating Officer; A.J. Peil, Chief Investment Officer; and Sheryl Kaul, Director of Financial Planning and Data Analytics. It is now my pleasure to turn the call over to Sheryl Kaul.
Sheryl Kaul : Thank you, operator. Good morning, everyone, and thank you for joining us today for Essential Properties Second Quarter 2026 Earnings Conference Call. During this conference call, we will make certain statements that may be considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we may not release revisions to those forward-looking statements to reflect changes after the statements were made. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's filings with the SEC and in yesterday's earnings press release. In our earnings release last night, for the quarter, we reported GAAP net income of $74.5 million and AFFO of $110.1 million. With that, I'll turn the call over to Pete.
Peter Mavoides : Thanks, Sheryl. Thank you to everyone joining us today for your interest in Essential Properties. In the second quarter, we accretively invested $332 million, reflecting the strength of our deal sourcing engine and the deep relationships we have built with middle market operators in our targeted industries. As transaction activity accelerated through the quarter, our team effectively converted a strong pipeline of opportunities into closed sale-leaseback investments, demonstrating our execution capabilities and the competitive advantage of our relationship-driven origination platform. Cap rates came in slightly better versus prior quarter at an average initial cash yield of 7.8% and a GAAP yield of 9.1%, preserving a meaningful spread to our cost of capital that is a key driver of our earnings growth. This also reflects our ability to consistently source and close attractive opportunities even in a dynamic transaction environment. 84% of our investments were structured as sale leasebacks and sale-leaseback liquidity continues to be a compelling source of growth capital for middle market operators across our targeted industries. Our capital position …
