EPRT

Realty Income Corporation O entered the second half of 2026 with better earnings visibility after a solid second quarter. AFFO per share increased 3.8% year over year to $1.09, while first-half AFFO per share rose 5.2% to $2.22. Management also raised its full-year AFFO guidance and investment target, pointing to continued opportunities across its expanding property and capital platforms. The stock reaction, however, was muted. Realty Income shares fell 0.54% to $62.36 on Aug. 6, the first trading session after the Aug. 5 results, and closed at $61.89 on Aug. 10 after another 0.99% decline. So far this year, Realty Income stock has gained 9.8% but underperformed the Zacks REIT and Equity Trust - Retail industry. However, O stock has outpaced its close peers, like Agree Realty Corporation ADC and Essential Properties Realty Trust, Inc. EPRT. Image Source: Zacks Investment Research The question now is whether stronger investment activity, steady property fundamentals and an expanding funding platform can support further per-share growth. At the same time, interest rates, acquisition pricing and the valuation investors assign to dependable REIT income remain important considerations. Realty Income's underlying business remained healthy in the second quarter. Revenues increased to $1.55 billion from $1.41 billion a year ago, while AFFO available to common shareholders rose to $1.02 billion from $947.5 million. Portfolio occupancy was 98.8% compared with 98.9% at the end of the first quarter and 98.6% a year earlier.The company also generated a 102.7% rent recapture rate on re-leased properties. Same-store rental revenues increased 1.2%, showing that organic growth remains modest but positive. Realty Income's portfolio included 15,588 properties across 92 industries at quarter-end, giving it a level of diversification that is difficult for smaller net-lease operators to match. Agree Realty and Essential Properties offer similar exposure to long-duration net leases, but both operate with smaller portfolios and somewhat different tenant mixes. Realty Income’s larger scale gives it broader sourcing access across retail, industrial and international markets, while ADC remains more concentrated in high-quality retail properties and EPRT has built a strong position in service-oriented and middle-market tenants. That scale can help Realty Income find more investment opportunities, although it also means the company needs a much larger volume of acquisitions to generate meaningful per-share growth. Investment activity remains central to Realty Income's outlook. The company invested roughly $2.6 billion during the second quarter, or $2.1 billion at its pro-rata share, at a weighted average initial cash yield of 7.3%. First-half investments totaled about $5.34 billion. Management consequently raised 2026 investment guidance from $9.5 billion to $10 billion. Industrial properties represented about 65% of second-quarter real estate investment activity. Realty Income is also expanding in Europe, private capital and data centers. Its $6 billion programmatic hyperscale data-center venture with Cloud Capital could involve up to $1.4 billion of equity from Realty Income over time. Management said its wider investment channels allow it to pursue opportunities across asset types, geographies and different parts of the capital structure.The broader investment approach gives Realty Income more growth channels than either Agree Realty or Essential Properties. ADC remains focused largely on retail net lease, while EPRT continues to expand through a smaller and more targeted acquisition platform. Realty Income, by comparison, is deploying capital across industrial properties, Europe, private-capital vehicles and data centers. This diversification can support longer-term growth, but it also introduces more execution risk as management moves into areas that sit outside the traditional retail net-lease model. Realty Income ended the second quarter with about $3.5 billion of available liquidity and net debt to annualized pro forma adjusted EBITDAre of 5.4 times. After quarter-end, the company expanded its revolving credit facilities to $5.5 billion, increased its commercial-paper capacity and issued €600 million of unsecured notes. Private capital is also reducing Realty Income’s dependence on common-equity issuance. Management noted that public equity represented only 18% of year-to-date investment volume compared with an average of 47% during the prior three years. This broader funding base could strengthen Realty Income’s ability to compete with Agree Realty, Essential Properties and private-market buyers for attractive assets. Still, higher Treasury yields remain a challenge for REIT valuations. The real-estate sector came under pressure again on Monday as long-term bond yields rose. Higher financing costs can narrow acquisition spreads and make income-oriented REIT shares less attractive relative to bonds. Over the past 30 days, FFO per share estimates for both 2026 and 2027 have remained unchanged, though the figures suggest 3.97% and 3.47% growth year over year, indicating a balanced view of growth and cost pressures. Image Source: Zacks Investment Research Valuation-wise, Realty Income stock is trading at a forward 12-month price-to-FFO of 13.62X, below the retail REIT industry average of 16.75X but ahead of its three-year median of 13.24X. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. This valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 15.80X, while Essential Properties Realty Trust is trading at 14.22X.The Value Score of C suggests that Realty Income may not be a bargain at current levels. Still, the company’s strategic investments, consistent dividend growth, underpinned by predictable rental income, keep it appealing for long-term income-oriented investors. Management's higher AFFO guidance is encouraging, yet the increase is modest. Realty Income now expects about 4% AFFO-per-share growth at the midpoint. This suggests investors should weigh the reliable income profile against a growth rate that remains measured. Image Source: Zacks Investment Research Realty Income's second-quarter results support the case for patience rather than a major change in positioning. The company is producing AFFO growth, maintaining high occupancy and finding enough investment opportunities to raise its 2026 deployment target. Its stronger liquidity position and broader access to private capital are additional upsides. However, the post-earnings share-price weakness, interest-rate sensitivity and modest internal growth argue against chasing the stock after its earlier gains. For investors who already own Realty Income, maintaining the existing position appears appropriate while collecting the monthly dividend and monitoring whether the larger investment pipeline produces sustained per-share growth over the coming quarters. Check Realty Income’s dividend history here.At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Realty Income Corporation O, a leader in the net lease sector, is slated to release second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s adjusted funds from operations (AFFO) and revenues is pegged at $1.09 per share and $1.54 billion, respectively.While the Zacks Consensus Estimate for second-quarter 2026 AFFO per share has remained unchanged over the past two months, it suggests 3.81% growth year over year. The Zacks Consensus Estimate for quarterly revenues implies a notable year-over-year increase of 8.98%. Image Source: Zacks Investment Research For the current year, the Zacks Consensus Estimate for Realty Income’s revenues is pegged at $6.27 billion, indicating a rise of 9.03% year over year. The consensus mark for 2026 AFFO per share is pinned at $4.45, calling for an expansion of around 3.97% on a year-over-year basis. Over the trailing four quarters, the company’s AFFO per share surpassed the Zacks Consensus Estimate on two occasions, met it once and missed it in the other. This is depicted in the graph below: Realty Income Corporation price-eps-surprise | Realty Income Corporation Quote Our proven model doesn’t predict a surprise in terms of AFFO per share for Realty Income this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.Realty Income currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Realty Income’s second-quarter 2026 earnings report is expected to show that the company continued to benefit from the momentum built in the first quarter, supported by strong occupancy, steady investment activity and growing contributions from its private capital platform. Investors are likely to have focused on whether acquisition-driven growth and resilient property fundamentals were enough to offset the impact of higher financing costs during the quarter under review.Management’s updated 2026 guidance provides the benchmark for second-quarter expectations. Realty Income is expected to have experienced continued AFFO growth, supported by occupancy around its 98.5% target, same-store rent growth of 1-1.3% and a full-quarter contribution from investments completed earlier in the year. The company’s diversified portfolio and long-term lease structure are expected to have supported stable rental income, while recent acquisitions are likely to have contributed to revenue growth.The company is also expected to have experienced another active investment quarter. After deploying $2.8 billion during the first quarter and raising its full-year investment target to $9.5 billion, Realty Income’s acquisition pipeline is expected to have remained healthy across the United States and Europe. Continued capital deployment at attractive yields may have benefited rental revenue growth and strengthened earnings visibility.Realty Income is further expected to have seen broader support from its expanding private capital strategy. The Apollo retail joint venture, additional capital raised through the U.S. Core Plus Fund and other institutional partnerships are expected to have improved revenue visibility while providing greater funding flexibility. These initiatives are likely to have contributed to investment capacity without relying solely on the public equity markets.On the other hand, higher borrowing costs are expected to have pressured results in the quarter under review, although the company’s use of cross-currency swaps may have partially offset financing costs. Overall, Realty Income is expected to have delivered another stable quarter, with resilient operating fundamentals outweighing the impact of a higher-rate funding environment. Shares of Realty Income have rallied 11.4% so far in the year, aligning with the S&P 500 composite’s increase but underperforming the Zacks REIT and Equity Trust - Retail industry’s rise of 21.4%. While Realty Income has underperformed its industry, it has rallied more than its peers like Agree Realty Corporation ADC and Essential Properties Realty Trust, Inc. EPRT. Image Source: Zacks Investment Research Valuation-wise, Realty Income trades at a forward price-to-FFO of 13.98X, below the retail REIT industry average of 17.19X but above its one-year median of 13.71X. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. However, this valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 16.40X, while Essential Properties Realty Trust is trading at 14.69X.However, the Value Score of D suggests that Realty Income may not be a bargain at current levels. Image Source: Zacks Investment Research Realty Income’s second-quarter setup supports a favorable investment view. High occupancy, steady rent growth and contributions from recent acquisitions are expected to have supported AFFO, while the Apollo venture and U.S. Core Plus Fund may have improved funding flexibility and fee income. The company’s diversified portfolio, disciplined capital deployment, strong liquidity and raised 2026 guidance suggest that operating momentum remains intact.For investors seeking dependable income with moderate growth potential, the outlook supports adding the shares at present levels.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Investment activity accelerated through the quarter, driven by a strong conversion of the deal pipeline into closed sale-leaseback transactions with middle-market operators. Management attributes the 7.8% average initial cash yield to a relationship-driven origination platform, where 72% of transactions were sourced from existing partners. The company successfully utilized Operating Partnership (OP) units for the first time, providing a tax-efficient currency that differentiated them from competitors in a childcare sector deal. Portfolio credit quality improved sequentially, with the percentage of annual base rent (ABR) from tenants with rent coverage below 1.5x declining by 50 basis points. Strategic diversification remains a priority, with top industry exposures (car wash, medical/dental, and early childhood education) each balanced at approximately 12% of ABR. Management noted that restaurant operators are currently seeing flat margins and coverage, but the portfolio remains resilient due to its focus on granular, fungible assets. Full-year investment volume guidance was increased to a range of $1.2 billion to $1.5 billion, supported by over $1 billion in closed or identified opportunities year-to-date. AFFO per share guidance was raised to $2.01 to $2.05, implying a growth rate of over 7% at the midpoint despite incremental headwinds from treasury stock method dilution. The company is well-funded into 2027 with $1.7 billion in liquidity, though management anticipates a $0.04 to $0.06 per share dilution when refinancing the 2027 term loan. Management expects disposition activity to moderate from the current quarter's elevated levels back to a trailing 8-quarter average of $20 million to $30 million per quarter. Future capital allocation will prioritize owned real estate over loans, with the loan book expected to remain a small accommodation tool representing roughly 5% of the portfolio. The loan loss reserve increased this quarter due to management conservatism; however, the item is non-cash and the entire loan book remains current with no non-accruals. A $400 million 10-year unsecured bond issuance at 5.375% successfully extended the debt maturity profile and addressed capital needs through the balance of 2026. Management is integrating AI across the technology stack, from front-end sourcing to asset management, to maintain G&A efficiency as the property count grows. The company maintains $575 million of unsettled forward equity, providing a flexible funding source that will likely be tapped starting in the third quarter of 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that OP units are a unique tool for tax-sensitive sellers who do not need immediate cash, helping to win deals without tax leakage for the counterparty. While a valuable differentiator, Pete Mavoides noted these opportunities are episodic and require a unique seller profile, suggesting they won't be a primary volume driver. The upcoming February 2027 maturity carries a low 2.26% rate, making any refinancing likely dilutive to earnings. Management prefers the 10-year bond market for replacement but is also considering 5- or 7-year terms depending on the rate environment later this year. The recent rise in stock price has increased the dilutive impact of unsettled forward equity, creating a $0.01 to $0.02 headwind to AFFO per share. Management indicated that the guidance raise would have been larger if not for this incremental non-operating headwind. The company is targeting the 'high volume, low price' Crunch Fitness model, which requires lower capital investment ($7M-$12M) compared to luxury gym models. Growth in this sector is primarily achieved through new development and repositioning of older retail boxes, providing attractive yields and mark-to-market opportunities.

Interested in Essential Properties Realty Trust, Inc.? Here are five stocks we like better. Essential Properties Realty Trust raised its 2026 guidance after a strong second quarter, lifting its AFFO per share outlook to $2.01-$2.05 and increasing full-year investment volume guidance to $1.2 billion-$1.5 billion. The company reported solid operating performance, with 99.6% portfolio occupancy, same-store rent growth of 1.5%, and stable rent coverage of 3.5x across a highly diversified portfolio. Management said the balance sheet remains strong, with $1.7 billion in liquidity, a 3.5x net debt-to-EBITDAre ratio, and a recent $400 million bond offering that supports continued pipeline execution. Look To REITs For Reliable Yield Even In Recessionary Environment Essential Properties Realty Trust (NYSE:EPRT) raised its 2026 outlook after reporting second-quarter results that management said were supported by stronger investment activity, stable portfolio fundamentals and a well-capitalized balance sheet. The net-lease real estate investment trust reported GAAP net income of $74.5 million and adjusted funds from operations, or AFFO, of $110.1 million for the quarter, according to Sheryl Kaul, director of financial planning and data analytics. Chief Financial Officer Rob Salisbury said AFFO per share was $0.50, up 9% from the second quarter of 2025, while nominal AFFO increased 18% year over year. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? President and CEO Peter Mavoides said the company “accretively invested” $332 million during the quarter, citing the strength of Essential Properties’ deal sourcing platform and relationships with middle-market operators. He said transaction activity accelerated through the quarter, allowing the company to convert a strong pipeline into closed sale-leaseback investments. Chief Operating Officer Max Jenkins said the company completed 36 transactions covering 103 properties in the second quarter. About 84% of investment volume was sourced through sale-leaseback transactions. The investments carried an average initial cash yield of 7.8%, a weighted average initial lease term of 16 years and weighted average annual rent escalations of 1.9%, producing an average GAAP yield of 9.1%. → 3 Photonics Companies Making Quantum Tech Possible Mavoides said cap rates were “slightly better” than in the prior quarter and preserved a meaningful spread to the company’s cost of capital. Jenkins said pricing in the forward pipeline continues to produce cap rates in the mid- to high-7% range. The company increased its full-year 2026 investment volume guidance to a range of $1.2 billion to $1.5 billion. Mavoides said Essential Properties has more than $1 billion of closed plus identified opportunities year to date. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off During the quarter, Essential Properties also completed its first operating partnership unit transaction. Jenkins said the transaction, in the early childhood education sector, was partially funded through OP units in a tax-efficient structure. In response to an analyst question, Mavoides said the transaction helped differentiate Essential Properties from competitors, but added that such opportunities are expected to be episodic because they require a “pretty unique seller.” Chief Investment Officer AJ Peil said portfolio fundamentals remained healthy and continued to perform in line with management’s expectations. Occupancy was 99.6% at quarter-end, with nine vacant properties. Same-store rent growth improved sequentially to 1.5%, and portfolio rent coverage was stable at 3.5 times. Peil said the share of annual base rent with rent coverage below 1.5 times declined by 50 basis points sequentially, reflecting continued improvement in credit quality. Mavoides later said the smaller under-1-times coverage bucket experienced normal “ebbs and flows” and that nothing in that group had created a credit concern for management. Essential Properties ended the quarter with investments in 2,493 properties leased to more than 500 tenants. Mavoides said the portfolio had a weighted average lease term of more than 14 years, weighted average lease escalations of 1.9% and only 2.3% of annual base rent expiring through 2028. Peil also emphasized the portfolio’s diversification. The top 10 tenants represented 15.2% of annual base rent, while the top 20 tenants represented 25.4%. The company’s top industry exposure declined by 40 basis points to 12.6% of annual base rent. Peil said the company’s top three industries — car wash, medical/dental and early childhood education — each represented approximately 12% of annual base rent. Essential Properties disposed of $54.3 million of assets during the quarter at a weighted average cap rate of 7.3%. Peil said the dispositions were largely the result of proactive asset management decisions. Mavoides told analysts that dispositions are a regular part of the business and said activity should moderate to a normalized level of about $20 million to $30 million per quarter. Salisbury said the company’s financial position remained robust. During the quarter, Essential Properties completed a $400 million 10-year unsecured bond offering with a 5.375% coupon. He said the transaction supports the company’s 2026 growth plan, extends its weighted average debt maturity and adds liquidity to its bond complex. The company raised approximately $85 million of equity during the second quarter and after quarter-end through its at-the-market program and the OP unit transaction. Salisbury said Essential Properties did not settle any forward equity during the quarter because of the liquidity generated by the bond offering, leaving about $575 million of unsettled forward equity at quarter-end. Pro forma net debt to annualized adjusted EBITDAre was 3.5 times at quarter-end, and total available liquidity increased to $1.7 billion. Salisbury said the liquidity gives the company capacity to execute on its investment pipeline “well into next year.” Income-producing gross assets totaled $7.8 billion at quarter-end. Salisbury said the company declared a $0.32 cash dividend in the quarter, representing an AFFO payout ratio of 64%. Retained free cash flow after dividends totaled $43 million in the quarter, or about $170 million annualized. Essential Properties raised the low end of its 2026 AFFO per share guidance by $0.01, bringing the new range to $2.01 to $2.05. Mavoides said the revised guidance implies growth of more than 7% at the midpoint and more than 8% at the high end. Salisbury said the guidance includes a conservative assumption for treasury stock method dilution related to the unsettled forward equity balance, amounting to a $0.01 to $0.02 headwind for the full year. In response to an analyst question, he said the company is currently trending closer to the high end of that range because of the recent movement in the stock price. Management also discussed the company’s February 2027 term loan maturity, which Salisbury said carries a 2.26% all-in rate. He said refinancing it would likely be dilutive under most scenarios, with a potential AFFO impact of about $0.04 to $0.06 depending on the approach. Salisbury said Essential Properties has several options, including the bond market, term loan market, credit facility, forward equity and internally generated cash flow. On restaurants, Mavoides said operators have generally been flat, with same-store flat margins resulting in largely flat coverage. He said management has not seen a material drop-off in restaurant coverage. Asked about fitness sector exposure, Mavoides discussed tenants operating within the Crunch Fitness franchise system, saying the company likes the model because of its high-volume, low-price-point structure and comparatively moderate investment size. He said the company generally invests through new development or repositioning of older boxes, but added that management does not expect the category to grow disproportionately. On the loan portfolio, Salisbury said the company had about $400 million of loans outstanding. He said the loan book was current with nothing on non-accrual, while a larger loan loss reserve in the quarter reflected management conservatism and was a non-cash item. Mavoides said loans are generally made as an accommodation to counterparties, and the company’s preference remains sale-leaseback transactions and owned real estate. Mavoides concluded that management was pleased with the second-quarter results and said the company’s diversified portfolio and balance sheet capacity support its long-term growth trajectory. Essential Properties Realty Trust, Inc (NYSE: EPRT) is a self-administered real estate investment trust that acquires, owns and manages single-tenant commercial properties subject to long-term, triple-net leases. The company’s portfolio primarily consists of small-box retail and industrial assets, including convenience stores, automotive service centers, quick-service restaurants, fitness centers and other necessity-based businesses. Under a triple-net lease structure, tenants assume responsibility for property taxes, insurance and most maintenance expenses, providing Essential Properties with predictable, stable cash flows. Since its founding in April 2016 and its initial public offering later that year, Essential Properties has pursued a growth strategy focused on partnering with creditworthy tenants operating in densely populated trade areas. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Essential Properties Realty Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

- Second Quarter Net Income per Share of $0.34 and AFFO per Share of $0.50 - - Closed Investments of $332.4 million at a 7.8% Weighted Average Cash Cap Rate - - Increases 2026 AFFO Guidance to $2.01 to $2.05 per Share - - Increases 2026 Investment Guidance to $1.2 billion to $1.5 billion - PRINCETON, N.J., July 22, 2026--(BUSINESS WIRE)--Essential Properties Realty Trust, Inc. (NYSE: EPRT; "Essential Properties" or the "Company") today announced operating results for the three and six months ended June 30, 2026. Second Quarter 2026 Financial and Operating Highlights: Full Year 2026 Financial and Operating Highlights: CEO Comments Commenting on the second quarter 2026 results, the Company's Chief Executive Officer, Pete Mavoides, said, "The second quarter was highlighted by strong execution across our investment activity, reflecting the strength of our sourcing platform and deep operator relationships across the middle market industries in which we invest. With continued strong portfolio performance and our debt and equity capital needs largely addressed for the remainder of the year and well into 2027, we are able to increase our AFFO per share guidance for the year." Portfolio Highlights The Company’s investment portfolio as of June 30, 2026 is summarized as follows: Portfolio Update Investments During the three months ended June 30, 2026, the Company's $332.4 million of investment activity had a weighted average closing date of June 11, 2026. Additional details about the Company’s investment activity during the three and six months ended June 30, 2026 are summarized as follows: Dispositions The Company’s disposition activity during the three and six months ended June 30, 2026 is summarized as follows: Loan Repayments Loan repayments received by the Company during the three and six months ended June 30, 2026 are summarized as follows: Leverage and Liquidity The Company's leverage and liquidity as of June 30, 2026 are summarized in the following table. Equity Activity The Company's equity activity during the three months ended June 30, 2026 is summarized in the following table. Guidance 2026 Guidance The Company is increasing its previously issued 2026 AFFO per share estimate from $2.00 to $2.05 to a new range of $2.01 to $2.05. The Company is also increasing its guidance range for 2026 investment volume from $1.1 billion to $1.5 billion to an updated range of $1.2 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. Note: The Company does not provide guidance for the most comparable GAAP financial measures, net income and general and administrative expense, or a reconciliation of the forward-looking non-GAAP financial measures of AFFO to net income computed in accordance with GAAP and Cash G&A expense to general and administrative expense computed in accordance with GAAP, because it is unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measures, including items that are not indicative of the Company's ongoing operations, such as, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses and non-cash compensation expense. These items are uncertain, depend on various factors, and could have a material impact on the Company's GAAP results for the guidance period. Dividend Information As previously announced, on May 29, 2026, Essential Properties' board of directors declared a cash dividend of $0.32 per share of common stock for the quarter ended June 30, 2026. The second quarter 2026 dividend represents an annualized dividend of $1.28 per share of common stock. The dividend was paid on July 14, 2026 to stockholders of record as of the close of business on June 30, 2026. Conference Call Information In conjunction with the release of Essential Properties’ operating results, the Company will host a conference call on Thursday, July 23, 2026 at 10:00 a.m. ET to discuss the results. To access the conference, dial 800-579-2543 (International: 785-424-1789) and use the conference ID: EPRT. A live webcast will also be available in listen-only mode by clicking on the webcast link in the Investor Relations section at www.essentialproperties.com. A telephone replay of the conference call can also be accessed by calling 844-512-2921 (International: 412-317-6671) and entering the access code: 11162070. The telephone replay will be available through August 6, 2026. A replay of the conference call webcast will be available on our website approximately three hours after the conclusion of the live broadcast. The webcast replay will be available for 90 days. No access code is required for this replay. Supplemental Materials The Company’s Investor Presentation and Supplemental Information—Second Quarter 2026 is available on Essential Properties’ website at investors.essentialproperties.com. About Essential Properties Realty Trust, Inc. Essential Properties Realty Trust, Inc. is an internally managed REIT that acquires, owns and manages primarily single- tenant properties that are net leased on a long-term basis to companies operating service-oriented or experience-based businesses. As of June 30, 2026, the Company’s portfolio consisted of 2,493 freestanding net lease properties with a weighted average lease term of 14.3 years and a weighted average rent coverage ratio of 3.5x. In addition, as of June 30, 2026, the Company’s portfolio was 99.6% leased to tenants operating 715 different concepts across 48 states. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. When used in this press release, the words "estimate," "anticipate," "expect," "believe," "intend," "may," "will," "should," "seek," "approximately" or "plan," or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters, are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions of management. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and the Company may not be able to realize them. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur as described, or at all. Additional information concerning factors that could cause actual results to differ materially from these forward-looking statements is contained in the company’s Securities and Exchange Commission (the "Commission") filings, including, but not limited to, the Company’s most recent Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the Commission. Such forward-looking statements should be regarded solely as reflections of the Company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The results reported in this press release are preliminary and not final. There can be no assurance that these results will not vary from the final results reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 that it will file with the Commission. Non-GAAP Financial Measures and Certain Definitions The Company’s reported results are presented in accordance with GAAP. The Company also discloses the following non-GAAP financial measures: FFO, Core FFO, AFFO, earnings before interest, taxes, depreciation and amortization ("EBITDA"), EBITDA further adjusted to exclude gains (or losses) on sales of depreciable property and real estate impairment losses ("EBITDAre"), net debt, net operating income ("NOI"), cash NOI ("Cash NOI"), adjusted EBITDAre, adjusted NOI, adjusted Cash NOI and cash general and administrative expense ("Cash G&A"). The Company believes these non-GAAP financial measures are industry measures used by analysts and investors to compare the operating performance of REITs. FFO, Core FFO and AFFO The Company computes FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as GAAP net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO is used by management, and may be useful to investors and analysts, to facilitate meaningful comparisons of operating performance between periods and among the Company’s peers primarily because it excludes the effect of real estate depreciation and amortization and net gains and losses on sales (which are dependent on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions). The Company computes Core FFO by adjusting FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that it believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Core FFO provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of our core business operations. Items included in calculating FFO that may be excluded in calculating Core FFO include certain transaction related gains, losses, income or expenses or other non-core amounts as they occur. To derive AFFO, the Company modifies its computation of Core FFO to include other adjustments to GAAP net income related to certain items that it believes are not indicative of the Company’s operating performance, including straight-line rental revenue, non-cash interest, non-cash compensation expense, other amortization expense, the change in our provision for credit losses, other non-cash adjustments and capitalized interest expense. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. The Company believes that AFFO is an additional useful supplemental measure for investors to consider when assessing the Company’s operating performance without the distortions created by non-cash items and certain other revenues and expenses. FFO, Core FFO and AFFO do not include all items of revenue and expense included in net income, they do not represent cash generated from operating activities and they are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, our computation of FFO, Core FFO and AFFO may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs. EBITDA and EBITDAre The Company computes EBITDA as earnings before interest, income taxes and depreciation and amortization. In 2017, NAREIT issued a white paper recommending that companies that report EBITDA also report EBITDAre. The Company computes EBITDAre in accordance with the definition adopted by NAREIT. NAREIT defines EBITDAre as EBITDA (as defined above) excluding gains (or losses) from the sales of depreciable property and real estate impairment losses. The Company presents EBITDA and EBITDAre as they are measures commonly used in its industry and the Company believes that these measures are useful to investors and analysts because they provide supplemental information concerning its operating performance, exclusive of certain non-cash items and other costs. The Company uses EBITDA and EBITDAre as measures of its operating performance and not as measures of liquidity. EBITDA and EBITDAre do not include all items of revenue and expense included in net income, they do not represent cash generated from operating activities and they are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, the Company’s computation of EBITDA and EBITDAre may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs. Net Debt The Company calculates its net debt as its gross debt (defined as total debt plus net deferred financing costs on its secured borrowings) less cash and cash equivalents and restricted cash available for future investment. The Company believes excluding cash and cash equivalents and restricted cash available for future investment from gross debt, all of which could be used to repay debt, provides an estimate of the net contractual amount of borrowed capital to be repaid, which it believes is a beneficial disclosure to investors and analysts. NOI and Cash NOI The Company computes NOI as total revenues less property expenses. NOI excludes all other items of expense and income included in the financial statements in calculating net income or loss. Cash NOI further excludes non-cash items included in total revenues and property expenses, such as straight-line rental revenue and other amortization and non-cash adjustments. The Company believes NOI and Cash NOI provide useful information because they reflect only those revenue and expense items that are incurred at the property level and present such items on an unlevered basis. NOI and Cash NOI are not measures of financial performance under GAAP. You should not consider the Company’s NOI and Cash NOI as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. Additionally, the Company’s computation of NOI and Cash NOI may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs. Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI The Company further adjusts EBITDAre, NOI and Cash NOI i) based on an estimate calculated as if all investment and disposition activity that took place during the quarter had occurred on the first day of the quarter, ii) to exclude certain GAAP income and expense amounts that the Company believes are infrequent and unusual in nature and iii) to eliminate the impact of lease termination or loan prepayment fees and contingent rental revenue from its tenants which is subject to sales thresholds specified in the lease. The Company then annualizes these estimates for the current quarter by multiplying them by four, which it believes provides a meaningful estimate of the Company’s current run rate for all investments as of the end of the current quarter. You should not unduly rely on these measures, as they are based on assumptions and estimates that may prove to be inaccurate. The Company’s actual reported EBITDAre, NOI and Cash NOI for future periods may be significantly less than these estimates of current run rates. Cash G&A The Company computes Cash G&A as general and administrative expense, as determined in accordance with GAAP, less non-core general and administrative expense, non-cash compensation expense and straight-line rent expense on leases where it is the lessee. The Company excludes non-core general and administrative expense, non-cash compensation expense and straight-line rent expense because they may cause short-term fluctuations in general and administrative expense but have no impact on operating cash flows or long-term operating performance. The Company believes that Cash G&A is a useful supplemental measure for investors to consider when assessing its operating performance without the distortion created by non-cash and non-core items. Cash G&A is not a measure of financial performance under GAAP. You should not consider the Company's Cash G&A as an alternative to general and administrative expense determined in accordance with GAAP. Additionally, the Company's computation of Cash G&A may differ from the methodology for calculating this metric used by other equity REITs, and, therefore, may not be comparable to similarly titled measures reported by other equity REITs. Cash ABR Cash ABR means annualized contractually specified cash base rent in effect as of the end of the current quarter for all of the Company’s leases (including those accounted for as direct financing leases) commenced as of that date and annualized cash interest on its mortgage loans receivable as of that date. Cash Cap Rate Cash Cap Rate means expected annual contractually specified cash rent and interest at the time of investment or disposition divided by the gross investment or sale price, as applicable, for the property, including transaction costs. GAAP Cap Rate GAAP Cap Rate means expected annual rental and interest income computed in accordance with GAAP at the time of investments divided by the gross investment in the property, including transactions costs. Rent Coverage Ratio Rent coverage ratio means the ratio of tenant-reported or, when unavailable, management’s estimate based on tenant-reported financial information, annual EBITDA and cash rent attributable to the leased property (or properties, in the case of a master lease) to the annualized base rental obligation as of a specified date. Weighted Average Annual Escalation Weighted average annual escalation rate means the entire portfolio reflects as if all escalations occur annually. For leases in which rent escalates by the greater of a stated fixed percentage or CPI, we have assumed an escalation equal to the stated fixed percentage in the lease. As any future increase in CPI is unknowable at this time, we have not included an increase in the rent pursuant to these leases in the weighted average annual escalation rate presented. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722631449/en/ Contacts Investor/Media: Essential Properties Realty Trust, Inc.Sheryl KaulDirector, Financial Planning & Data [email protected]

Realty Income’s O recently released first-quarter results gave investors a familiar mix: steady rent collection, dependable dividends, and a larger investment pipeline, but also only moderate per-share growth. For a stock known as “The Monthly Dividend Company,” the question is less about survival and more about whether the latest results are strong enough to justify buying more. We chose to wait before publishing our review, giving the stock’s recent trading pattern time to show whether investors were becoming more confident or simply staying cautious. What we found is that Realty Income’s share price has been firm overall, but the move looks more measured than aggressive. The stock recently traded near $61.96, after a small daily gain, though it remains below its 52-week high, showing that investors are still selective rather than fully bullish. The likely reason is not just first-quarter earnings. Realty Income is benefiting from demand for steady dividend payers, its roughly 5% yield, and hopes that REITs could regain favor if interest-rate pressure eases. At the same time, higher borrowing costs and modest growth expectations continue to limit enthusiasm. Textually, the first quarter was a solid one. Revenues rose to $1.55 billion, and AFFO per share increased 6.6% to $1.13. Management also lifted full-year adjusted funds from operations (AFFO) and investment guidance, which suggests confidence in the rest of 2026. While the company’s strategic investments augur well for long-term growth, its investment thesis presents both compelling growth drivers and legitimate concerns. Let’s explore them to ultimately arrive at the decision of whether to hold the stock for now, buy or sell and book profits. Realty Income’s earnings were strong enough to support a constructive view, especially for income-focused investors. AFFO per share rose to $1.13 from $1.06 a year earlier. The company’s results were helped by rental income, interest income from credit investments, and active asset management. Importantly, the dividend payout ratio was manageable at 71.7% of AFFO, leaving a cushion for reinvestment and balance sheet needs. The biggest positive was capital deployment. Realty Income invested $2.8 billion, or $2.6 billion on a pro-rata basis, at a 7.1% initial weighted average cash yield. The mix included real estate acquisitions, development activity, and more than $1.0 billion of other investments, including loans in the United States, Europe and Mexico. Management also raised 2026 investment volume guidance to $9.5 billion, up from $8.0 billion, which points to a healthy pipeline. The balance sheet still looks solid for a large net lease REIT. Realty Income ended the quarter with $3.9 billion of liquidity on a pro-rata basis and net debt to annualized pro forma adjusted EBITDAre of 5.2x. Its investor presentation also highlights A3/A- credit ratings, 92.7% fixed-rate debt, and a 5.9-year weighted average term to maturity for notes and bonds. That financial position matters because it allows the company to keep investing even when capital markets are uneven. Operationally, Realty Income continues to show why investors treat it as a defensive REIT. The company owned or held interests in 15,571 properties, leased to 1,786 clients across 92 industries, with portfolio occupancy of 98.9% and a weighted average remaining lease term of about 8.7 years. Rent recapture on re-leased properties was 103.4%, suggesting the company is not simply filling space, but doing so at attractive economics. The concern is valuation versus growth. Even with a strong quarter, same-store rental revenue increased only 0.8%, and revised AFFO guidance of $4.41 to $4.44 implies annual per-share growth of only 3.0% to 3.7%. That is respectable, but not high. Management raised AFFO guidance, while keeping same-store rent growth guidance at 1.0% to 1.3% and occupancy near 98.5%. The company is also leaning more into private capital partnerships and credit investments, which may improve returns but add complexity for investors who prefer the simple legacy net lease model. Nevertheless, dividends remain the main attraction. The company recently declared its 671st consecutive monthly dividend yesterday, keeping the payout at 27.05 cents per share, or $3.246 annualized. Earlier in March, it marked its 134th dividend increase since listing on the NYSE, a record that keeps income investors watching closely. Check Realty Income’s dividend history here. Over the past 30 days, while FFO per share estimates for the second quarter have remained unchanged, the same for both 2026 and 2027 have been revised slightly downward, indicating a balanced view of growth and cost pressures. Image Source: Zacks Investment Research So far this year, Realty Income stock has gained 9.9%, but underperformed the Zacks REIT and Equity Trust - Retail industry and the S&P 500 Composite. However, O stock has outpaced its close peers, like Agree Realty Corporation ADC and Essential Properties Realty Trust, Inc. EPRT. Image Source: Zacks Investment Research Valuation-wise, Realty Income stock is trading at a forward 12-month price-to-FFO of 13.72X, below the retail REIT industry average of 16.58X but ahead of its three-year median. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. This valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 16.25X, while Essential Properties Realty Trust is trading at 14.67X. The Value Score of D suggests that Realty Income may not be a bargain at current levels. Still, the company’s strategic investments, consistent dividend growth, underpinned by predictable rental income, keep it appealing for long-term income-oriented investors. Image Source: Zacks Investment Research Realty Income’s first-quarter results were good, but not game-changing. The company delivered higher AFFO, strong occupancy, active investment volume, healthy liquidity, and solid dividend. Those are real positives, especially for investors who own the stock for monthly income and lower drama. Still, growth remains modest, and the stock does not look like an obvious bargain after the update. Estimate revisions and valuation also point in the same direction, and therefore, for new investors, patience may be better than chasing. For current shareholders, the dividend and operating stability remain enough reasons to stay invested. At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Realty Income Corporation O, a leader in the net lease sector, is slated to release first-quarter 2026 results on May 6, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s adjusted funds from operations (AFFO) and revenues is pegged at $1.10 per share and $1.50 billion, respectively. The Zacks Consensus Estimate for first-quarter 2026 AFFO per share has been revised a cent upward to $1.10 over the past two months, which suggests 3.77% growth year over year. The Zacks Consensus Estimate for quarterly revenues implies a notable year-over-year increase of 8.54%. Realty Income Estimate Revisions Image Source: Zacks Investment Research For the current year, the Zacks Consensus Estimate for Realty Income’s revenues is pegged at $6.20 billion, indicating a rise of 7.86% year over year. The consensus mark for 2026 AFFO per share stands at $4.45, calling for an expansion of around 3.97% on a year-over-year basis. Over the trailing four quarters, the company’s AFFO per share surpassed the Zacks Consensus Estimate on one occasion, met in the other two and missed in another. This is depicted in the graph below: Realty Income Corporation price-eps-surprise | Realty Income Corporation Quote Our proven model predicts a surprise in terms of AFFO per share for Realty Income this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here. Realty Income currently carries a Zacks Rank of 3 and has an Earnings ESP of +1.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Realty Income’s first-quarter 2026 earnings report is expected to show that the company experienced another steady operating period, aided by high occupancy, stable rent collections and disciplined investment activity. Investors will likely look for signs that the REIT’s core net-lease portfolio continued to hold up well despite a still-uneven rate and consumer backdrop. Management’s 2026 guidance sets the baseline. Realty Income is expected to have experienced modest AFFO per share growth, supported by same-store rent growth of 1-1.3% and occupancy near 98.5%. After ending 2025 with 98.9% occupancy and 103.9% rent recapture, the company is likely to have benefited from durable tenant demand and limited vacancy pressure. The consensus mark for rental revenues (excluding reimbursable) is pegged at $1.32 billion, nearly in line with the prior quarter and up from $1.23 billion in the year-ago quarter. The company is also expected to have experienced a healthy start to its acquisition year. Realty Income guided for $8 billion of 2026 investment volume, above the $6.3 billion deployed in 2025. The first quarter should show whether the pipeline in the United States, Europe and adjacent investment channels began converting at attractive spreads. Realty Income is further expected to have seen a growing contribution from its broader capital platform. Its GIC build-to-suit partnership, Mexico industrial entry, U.S. private fund, Blackstone-related CityCenter investment and Apollo retail JV are all designed to widen the investment funnel while reducing dependence on public equity. On the balance sheet side, the company is expected to have experienced a continued focus on liquidity, funding costs and leverage control. Recent debt transactions and its long dividend record suggest management remains focused on funding growth while preserving financial flexibility and supporting the monthly payout. Shares of Realty Income have rallied 12.6% so far in the year, closing at $63.45 yesterday on the NYSE. The Zacks REIT and Equity Trust - Retail industry has risen 18.4%, while the S&P 500 composite has increased 6% over the same time frame. While Realty Income has underperformed its industry, it has rallied more than its peers like Agree Realty Corporation ADC and Essential Properties Realty Trust, Inc. EPRT, as well as the S&P 500 composite. Year-to-Date Price Performance Image Source: Zacks Investment Research Valuation-wise, Realty Income trades at a forward price-to-FFO of 14.09X, below the retail REIT industry average of 16.76X and above its one-year median of 13.35X. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. However, this valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 16.43X, while Essential Properties Realty Trust is trading at 14.88X. However, the Value Score of D suggests that Realty Income may not be a bargain at current levels. Forward 12 Month Price-to-FFO (P/FFO) Ratio Image Source: Zacks Investment Research Realty Income continues to appeal to investors seeking dependable income and lower-risk real estate exposure. Its large and well-diversified portfolio, focus on essential-service tenants and long-term net leases support steady rental cash flows across cycles. The company’s move into areas beyond traditional retail also adds flexibility to its growth platform. Backed by a solid dividend yield and an investment-grade balance sheet, Realty Income remains one of the more defensive names in the REIT space. That said, its dependable model also keeps growth measured. Same-store rent gains are usually modest, and long lease terms can limit earnings upside when the economy strengthens. Its broad diversification lowers risk but may also dilute exposure to faster-growing property segments, likely keeping near-term upside in check. Given this balanced setup, maintaining a position looks sensible. Existing shareholders can rely on consistent dividends, while potential investors may prefer to wait for a better entry point. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. GAAP Net Income: $60 million for Q1 2026. AFFO: $105.8 million for the quarter. AFFO Per Share: $0.50, an increase of 11% year-over-year. Equity Raised: $419 million in support of the investment pipeline. Investment Activity: $389 million deployed into 126 properties. Investment Cap Rate: Initial cap rate of 7.7% and GAAP yield of 8.8%. Available Liquidity: $1.5 billion. Net Debt to EBITDAre: 3.5 times pro forma. Same-Store Rent Growth: 1.4% in Q1. Occupancy Rate: 99.7% with seven vacant properties. Cash G&A: $8 million, representing 5% of total revenue. Cash Dividend: $0.31 per share, with an AFFO payout ratio of 62%. Income-Producing Gross Assets: Over $7.5 billion at quarter end. Forward Equity: $541 million unsettled at quarter end. 2026 AFFO Per Share Guidance: Increased to $2 to $2.05. Warning! GuruFocus has detected 7 Warning Signs with EPRT. Is EPRT fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Essential Properties Realty Trust Inc (NYSE:EPRT) reported a GAAP net income of $60 million and AFFO of $105.8 million for the first quarter of 2026. The company deployed $389 million into 126 properties and raised $419 million of equity, supporting its investment pipeline. AFFO per share grew by 11% year-over-year, demonstrating strong financial performance. The company increased its 2026 AFFO per share guidance to a range of $2 to $2.05, reflecting confidence in future growth. EPRT maintains a low leverage ratio of 3.5 times pro forma net debt to annualized adjusted EBITDAre, providing financial stability and flexibility. One of EPRT's restaurant tenants filed for bankruptcy, affecting seven properties and representing approximately 30 basis points of ABR. The company experienced a decline in investment cap rates to 7.7%, down from previous quarters, due to market conditions and industry mix. There is potential strain on the consumer due to macroeconomic volatility, which could impact portfolio performance. The entertainment and casual dining sectors are experiencing some weakness, with flat to down sales and margin pressure. EPRT's term loan expiring in early February 2027 at a low rate could pose a refinancing challenge, potentially impacting future earnings. Q: Could you explain the decline in cap rates this quarter and whether you expect this trend to continue? A: Peter Mavoides, President and CEO, explained that cap rates were in the mid- to high 7% range, down from 8% last quarter. This decline is attributed to capital markets and competition, as well as industry mix. The 7.7% cap rate is considered healthy, and they feel confident about it. Q: How has macroeconomic volatility impacted Essential Properties Realty Trust, and what are the implications for competition? A: Peter Mavoides noted that most of the current volatility will impact future quarters. Deals closing in Q1 were priced in a more stable Q4 environment. The companys reliable capital provision is valued in volatile markets, which could be beneficial. However, ongoing volatility may strain consumers and marginally affect the portfolio, but not significantly enough to alter their guidance. Q: Can you provide more details on the Denny's transaction, including lease structure and tenant comfort level? A: Max Jenkins, COO, explained that the Denny's transaction involved 74 properties with a mix of corporate-owned and franchisee stores. The properties have strong unit-level coverage and stable performance. The transaction was structured creatively to accommodate various franchisees, and the company is comfortable with the tenant due to the properties' fungibility and long operating history. Q: How do you view the investment spread to your cost of capital going forward? A: Robert Salisbury, CFO, stated that the investment spread is more of an output than an input. The weighted average cost of capital is in the mid-5s, while capital is being deployed in the mid- to high-7s, maintaining a healthy spread of over 200 basis points, which supports long-term growth. Q: What are your thoughts on larger scale deals versus one-offs in the current market environment? A: Peter Mavoides indicated that larger transactions are episodic, and the company expects to continue focusing on small, granular deals. The pipeline is expected to remain granular, with no significant shift towards larger M&A-type transactions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.