Essential Properties Realty Trust
Essential Properties Realty Trust's revenue rose 24.8% to $561 million in fiscal 2025. Its operating margin was 64.1%, up from 61.9% a year earlier. It paid out $234 million in dividends and buybacks. The diluted share count rose 11.8%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What Essential Properties Realty Trust does
Essential Properties Realty Trust is a real estate investment trust (REIT) that buys, owns and manages mostly single-tenant properties. It leases them on a long-term, net basis, which means the tenant pays most property costs, to middle-market companies that run service-oriented or experience-based businesses. A REIT generally pays no federal income tax on income it distributes to stockholders, if it meets certain rules.
Its tenants are in businesses such as car washes, medical and dental services, early childhood education, quick service and casual dining restaurants, entertainment, automotive services, convenience stores, equipment rental and sales, health and fitness, and grocery. It earns money from rent and from interest on mortgage loans it holds.
The company believes these businesses are more insulated from e-commerce than many others, but it says that view could prove wrong. It began investing in 2016 and went public in 2018.
Its biggest risks, as it describes them
- Tenants may fail to run their businesses well, and a single-tenant property carries a high risk of default.
- Most of its tenants have no credit rating, so it must judge their credit itself.
- It may be unable to renew leases or re-lease space on good terms.
- Its view that its tenants' businesses are shielded from e-commerce may be wrong.
- The value of its properties could fall, forcing it to write down real estate.
Income statement
From fiscal 2019 to 2025, earnings per share grew 12.5% a year and net income 35.0% a year, as new shares raised the share count by 163% and diluted each share's earnings.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 60 | 62 | 40 | 41 | 60 |
| Debt incl. finance leases | 1,174 | 1,430 | 1,680 | 2,130 | 2,530 |
| Net debt (negative means net cash) | 1,114 | 1,368 | 1,640 | 2,089 | 2,470 |
| Net debt to EBITDA | 5.7x | 5.3x | 4.8x | 5.3x | 4.9x |
| Debt to equity | 0.6x | 0.6x | 0.6x | 0.6x | 0.6x |
| Interest coverage | 4.0x | 4.3x | 4.6x | 3.5x | 3.3x |
| Current ratio | — | — | — | — | — |
| Quick ratio | — | — | — | — | — |
Cash flow
Projections
Project Essential Properties Realty Trust's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
What Essential Properties Realty Trust says to expect
- Full year 2027: AFFO per share, volume, cash G&A
The Company currently expects 2027 AFFO per share on a fully diluted basis to be within a range of $2.10 to $2.18. The guidance range includes an estimate for investment volume of $1.0 billion to $1.5 billion, and Cash G&A expense of $32.0 million to $37.0 million.
- Full year 2026: AFFO per share and investment volume
The Company is increasing its previously issued 2026 AFFO per share estimate from $2.01 to $2.05 to a new range of $2.02 to $2.05. The Company is also increasing its guidance range for 2026 investment volume from $1.2 billion to $1.5 billion to an updated range of $1.3 billion to $1.5 billion, and is reiterating its prior guidance range for 2026 Cash G&A of $30.0 million to $34.0 million.
Insider trades
Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought Essential Properties Realty Trust shares on the open market, and 3 insiders sold $1.5 million.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Jul 24, 2026 | Robert M JenkinsExecutive VP and COO | Sold | 22,000 | $32.22 | $708,840 | Form 4 |
| Mar 20, 2026 | Peil A JosephExecutive VP and CIO | Sold | 19,657 | $32.10 | $630,990 | Form 4 |
| Mar 20, 2026 | Robert Webb SalisburyExecutive VP and CFO | Sold | 5,851 | $31.88 | $186,530 | Form 4 |
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY23 | FY24 | FY25 |
|---|---|---|---|
| Piotroski F-score | — | — | — |
| Rule of 40 | — | — | — |
| Altman Z'' | — | — | — |
| Accruals ratio | −1.5% | −2.0% | −2.0% |
The nine F-score tests
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Fail | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Pass | Fail | Pass |
| Current ratio rose | — | — | — |
| Share count didn't rise | Fail | Fail | Fail |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Pass | Pass | Pass |
| F-score | — | — | — |
Compare
Put Essential Properties Realty Trust side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Essential Properties Realty Trust | FY25 | 24.8% | 64.1% | — | 5.8% | 4.9x | — | |
| Global Net Lease | FY25 | −13.1% | 22.4% | 38.2% | 5.0% | −0.6x | — | Compare |
| American Assets Trust | FY25 | −4.7% | 33.5% | 21.8% | 5.4% | 5.8x | — | Compare |
| Lexington Realty Trust | FY25 | −2.3% | — | — | 5.4% | 3.1x | — | Compare |
| W. P. Carey | FY25 | 8.4% | — | — | 4.6% | 6.5x | — | Compare |
9 years of figures
| Fiscal year | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||
| Revenue | 54 | 96 | 139 | 164 | 230 | 286 | 360 | 450 | 561 |
| Revenue growth | — | 76.7% | 44.8% | 17.7% | 40.4% | 24.4% | 25.5% | 25.0% | 24.8% |
| Gross profit | — | — | — | — | — | — | — | — | — |
| Research and development | — | — | — | — | — | — | — | — | — |
| Operating income | 6 | 50 | 80 | 73 | 134 | 175 | 243 | 278 | 360 |
| Net income | 6 | 16 | 42 | 42 | 96 | 134 | 191 | 203 | 253 |
| Diluted EPS (US$) | — | — | 0.63 | 0.44 | 0.82 | 0.99 | 1.24 | 1.15 | 1.28 |
| Diluted shares (millions) | — | — | 75 | 96 | 118 | 136 | 154 | 177 | 198 |
| Cash flow | |||||||||
| Cash from operations | 22 | 46 | 89 | 99 | 167 | 211 | 255 | 308 | 381 |
| Capital expenditure | 0 | 2 | — | — | — | — | — | — | — |
| Free cash flow | 22 | 44 | — | — | — | — | — | — | — |
| Dividends paid | 0 | 14 | 64 | 86 | 112 | 142 | 168 | 200 | 234 |
| Share buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-based compensation | — | 2 | 6 | 6 | 6 | 10 | 9 | 11 | 13 |
| Balance sheet at fiscal year end | |||||||||
| Cash and short-term investments | 7 | 4 | 8 | 27 | 60 | 62 | 40 | 41 | 60 |
| Debt incl. finance leases | — | 515 | 239 | 821 | 1,174 | 1,430 | 1,680 | 2,130 | 2,530 |
| Total assets | 942 | 1,381 | 1,975 | 2,489 | 3,299 | 4,000 | 4,768 | 5,799 | 6,863 |
| Total liabilities | 761 | 570 | 773 | 907 | 1,255 | 1,503 | 1,781 | 2,227 | 2,655 |
| Shareholders' equity | 181 | 562 | 1,194 | 1,575 | 2,037 | 2,488 | 2,979 | 3,564 | 4,200 |
| Margins and ratios | |||||||||
| Gross margin | — | — | — | — | — | — | — | — | — |
| Operating margin | 11.8% | 52.0% | 57.3% | 44.4% | 58.4% | 61.2% | 67.5% | 61.9% | 64.1% |
| Net margin | 11.6% | 16.2% | 30.0% | 25.8% | 41.6% | 46.8% | 53.0% | 45.1% | 45.1% |
| Free cash flow margin | 41.2% | 46.0% | — | — | — | — | — | — | — |
| Rule of 40 (growth + FCF margin) | — | 122.7% | — | — | — | — | — | — | — |
| Return on capital | — | — | 5.8% | 3.8% | 4.8% | 5.0% | 5.7% | 5.4% | 5.8% |
| Return on equity | — | 4.2% | 4.8% | 3.0% | 5.3% | 5.9% | 7.0% | 6.2% | 6.5% |
| Return on assets | — | 1.3% | 2.5% | 1.9% | 3.3% | 3.7% | 4.3% | 3.8% | 4.0% |
| Net debt to EBITDA | — | 6.8x | 2.0x | 6.4x | 5.7x | 5.3x | 4.8x | 5.3x | 4.9x |