EPRT

Many REITs are repriced to the downside and offer better yields. Yet this is just optics, as the underlying problem is very significant. The issue I see is that at the current valuations and market dynamics, REITs can't (or should not) be considered solid passive income investments.

Essential Properties offers a secure payout with room to keep growing over the long haul. Once again, the net lease REIT upped its investment volume guidance for 2026. EPRT net leverage ratio was just 3.5x and it had $1.7 billion of pro forma liquidity to close out Q2 2026.

Net lease REITs are fundamentally driven by the spread over the ten year treasury yield. Regression analysis shows net lease cap rates move about 28 basis points for every 1% move in the ten year, with about half of cap rate movement explained by treasury shifts. EPRT stands out for its lower payout ratio, higher reinvestment rate, and materially lower leverage, positioning it for superior forward growth versus O and ADC.

PRINCETON, N.J.--(BUSINESS WIRE)--Essential Properties Realty Trust, Inc. (NYSE: EPRT; the “Company”) announced today that its Board of Directors declared a quarterly cash dividend of $0.32 per share of common stock for the third quarter of 2026. On an annualized basis, the third quarter 2026 dividend of $0.32 equals $1.28 per share of common stock. The dividend is payable on October 14, 2026, to stockholders of record as of the close of business on September 30, 2026.About Essential Properties.

Essential Properties Realty Trust delivers sector-leading AFFO per share growth, robust dividend protection, and disciplined external growth, underpinned by a transparent, potent business model. EPRT's low payout ratio (~64%) enables superior internal growth, dividend safety, and significant reinvestment capacity, supporting double-digit annual total return potential. Portfolio diversification, prudent asset recycling, and stable acquisition pacing position EPRT for continued outperformance and potential credit rating upgrades.

Essential Properties Realty Trust, Inc. maintains sector-leading growth and operational resilience, but its valuation remains elevated, limiting near-term upside. EPRT's Q2 saw $300M invested at a 7.8% yield, driving 18% AFFO growth and 99.6% occupancy, with guidance raised to $2.01–$2.05 AFFO per share. The company retains a conservative 64% AFFO payout ratio, supporting a defensive balance sheet and dividend protection amid rising acquisition activity.

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.

Essential Properties Realty Trust, Inc. (EPRT) Q2 2026 Earnings Call Transcript

PRINCETON, N.J.--(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: Operating Results (compared to Second Quarter 2025):     • Investments (103 properties) $ Invested $332.4 million   Weighted Avg Cash Cap Rate 7.8% • Dispositions (17 properties) Net Proceeds $54.3 million   Weighted Avg Cash Cap R.

Essential Properties has raised its payout each year since it began paying a dividend after its initial public offering in 2018. EPRT looks well-positioned to continue putting up exceptional AFFO per share growth in the net lease REIT space. As of Q1 2026, the REIT possessed considerable liquidity and a very low pro forma net debt-to-annualized adjusted EBITDAre ratio.