EPRT Stock News & Sentiment

Essential Properties has high occupancy rates, low debt, and a reliable group of tenants, but its 3.5% dividend yield and slow rent growth are worrying. Although the company has made recent sales and purchases that have enhanced its portfolio, the rent growth for the same properties is still slow at 1.4%. With a valuation of 16.0 times FFO and a limited potential for annual capital appreciation of 2%-4%, the stock may not offer strong returns.

Real estate plays a crucial role in business since companies require physical spaces to offer their services to customers. Additionally, they need funds to establish new locations in order to reach more clients.

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Essential Properties Realty Trust (EPRT) has a varied portfolio of more than 2,100 properties, with a high occupancy rate of 99.7% and an average lease term of 14 years. In 2024, EPRT invested $1.2 billion, achieving an 8% cash cap rate and a 2.4% investment spread, which contributed to a 5.5% growth in AFFO per share. Although the outlook for 2025 is positive with an expected 7.5% growth in AFFO, I still recommend a 'hold' rating because of valuation issues and more attractive options available.

This Industry Outlook article has featured Essential Properties Realty Trust and Urban Edge Properties.

Even with difficulties in e-commerce growth, trade policies, and shifts in consumer spending, the Zacks REIT and Equity Trust - Retail stocks EPRT and UE are attracting interest for their ability to succeed in today's market.

Essential Properties Realty Trust, Inc. (NYSE:EPRT) will hold its Q4 2024 Earnings Conference Call on February 13, 2025, at 10:00 AM ET. The call will feature key company participants, including Robert Salisbury, Pete Mavoides, Mark Patten, and AJ Peil. Various analysts from firms like Mizuho, Goldman Sachs, and Barclays will also be joining the discussion.

The main figures for Essential Properties (EPRT) provide an overview of the company's performance for the quarter that ended in December 2024. However, it could be useful to compare some important metrics with Wall Street predictions and the results from the same period last year.

The commercial real estate market, particularly net lease REITs, is experiencing fluctuations because of increasing interest rates and inflation, which affect property values and how investors feel. Essential Properties Realty Trust is notable for its sale-leaseback approach, doing better than its competitors even though its share prices have recently dropped due to higher treasury yields. However, EPRT's dependence on tenants with lower credit ratings presents some risks, unlike more secure investment-grade portfolios such as ADC.