| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 24 | 22.1x | 17.3x | Bottom tier | |
Growth | 76 | 20.4% | 7.1% | Top tier | |
Quality | 68 | 5.5% | 4.5% | Top tier | |
Safety | 49 | 5.4x | 2.6x | Around median | |
Capital Return | 43 | 4.43% | 0.06% | Around median | |
Momentum | 25 | -14.3% | -1.6% | Bottom tier | |
Sentiment | 61 | 5 | 3 | Around median |
The floor: what the company is worth if growth stopped today
84% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Essential Properties Realty Trust is a real estate investment trust focused on operational properties leased to middle-market operators, generating its income primarily from long-term leases and sale-leaseback investments. In Q2 fiscal 2026, its portfolio included 2,493 properties leased to more than 500 tenants, with a weighted average lease term exceeding 14 years and weighted annual rent escalations of 1.9%. Its three largest industries—car washes, medical and dental services, and early childhood education—each accounted for approximately 12% of annualized base rent, while its ten largest tenants accounted for only 15.2%.
In Q2 fiscal 2026, the company reported, according to EDGAR data, revenue of $161.9 million, net income of $74.3 million, and earnings per share of $0.34, equivalent to a net income margin of approximately 45.9%. The earnings call reported GAAP net income of $74.5 million and AFFO of $110.1 million, up 18% year over year, while AFFO per share was approximately $0.50, up 9% year over year. For comparison, the company generated revenue of $561.2 million and net income of $253.0 million in fiscal 2025.
Revenue for the twelve months ended in the latest fiscal 2026 period was approximately $615.5 million, compared with $590.7 million in the preceding twelve-month period presented in the data, while net income was $267.8 million compared with $256.7 million. Operationally, occupancy reached 99.6% in Q2 fiscal 2026, with only nine vacant properties, and rent coverage was 3.5 times, while no more than 2.3% of annualized base rent was scheduled to expire through the end of 2028. The company also declared cash dividends of $0.32 per share, equivalent to a payout ratio of 64% of AFFO, and retained free cash flow after dividends of $43 million during the quarter.
The analyst consensus is Buy, with an average price target of $36.75 and a target range of $33 to $40; the average is above the 52-week range high of $34.73, while the range low was $28.95. The provided data do not include a usable price-to-earnings multiple, so valuation rests more clearly on guided AFFO growth of more than 7% at the midpoint of the fiscal 2026 range, weighed against potential dilution of $0.01–$0.02 per share and potential refinancing pressure of $0.04–$0.06 per share in 2027.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Growth depends on acquiring operational properties and leasing them under long-term contracts to middle-market operators, particularly through sale-leaseback transactions, which accounted for 84% of Q2 fiscal 2026 investments. The company invested $332 million during that quarter at an initial cash yield of 7.8% and a GAAP yield of 9.1%. On July 23, 2026, management raised annual investment guidance to $1.2–$1.5 billion, with more than $1 billion of closed and identified opportunities since the beginning of fiscal 2026.
EPRT declared cash dividends of $0.32 per share in Q2 fiscal 2026, compared with AFFO of $0.50 per share. This is equivalent to a payout ratio of 64% of AFFO, according to the company's July 23, 2026 announcement. After dividends, the company retained free cash flow of $43 million for the quarter, or approximately $170 million on an annualized basis, to support growth.
At the end of Q2 fiscal 2026, the portfolio included approximately 2,493 properties leased to more than 500 tenants. The ten largest tenants accounted for 15.2% of annualized base rent, and the twenty largest tenants accounted for 25.4%. Car washes, medical and dental services, and early childhood education were the three largest industries, each accounting for approximately 12%, while the largest single industry exposure was 12.6%.
Automated analysis for informational purposes only — not investment advice.
Occupancy was 99.6% in Q2 fiscal 2026, with only nine vacant properties, while overall rent coverage remained stable at 3.5 times. In contrast, the share of annualized base rent with coverage below one time increased from 3.4% to 3.9%, despite a 50-basis-point decline in the share with coverage below 1.5 times. The loan loss provision also increased, but management said on July 23, 2026 that it was non-cash and that the approximately $400 million loan portfolio was fully current, with no non-accrual loans.
The company ended Q2 fiscal 2026 with available liquidity of $1.7 billion and pro forma net debt to annualized adjusted EBITDA of 3.5 times. It issued $400 million of ten-year unsecured notes with a 5.375% coupon and also raised approximately $85 million of equity during the quarter and the period following its end. At quarter-end, it still had approximately $575 million of unsettled forward equity, providing additional funding but potentially diluting AFFO per share.
A specific loan with a low all-in rate of 2.26% matures in February 2027, and management believes refinancing it will be dilutive to earnings under most available scenarios. On July 23, 2026, the company estimated a potential impact of $0.04–$0.06 on AFFO per share, depending on whether it accesses the bond market or term loans. Management said it has alternatives including available liquidity, the credit facility, forward equity, and internal cash flow, and that it expects to address the maturity well in advance. Accordingly, liquidity appears sufficient, but the new financing cost remains a risk to AFFO growth in 2027.