Essential Properties Realty: A Strong Buy on Solid Growth and Favorable Financial Indicators

Ki Bin Kim, an analyst from Truist Financial, maintained the Buy rating on Essential Properties Realty (EPRT – Research Report). The associated price target was raised to $36.00.

Ki Bin Kim has given his Buy rating due to a combination of factors that indicate Essential Properties Realty’s positive performance and promising outlook. The company has demonstrated a robust and consistent acquisition pipeline, securing $128 million in purchases as of the third quarter, with an additional $187 million under a letter of intent. This activity suggests a strong growth trajectory for EPRT, which is further supported by the company’s ability to maintain high capitalization rates in the favorable range of 7%-8%.
Moreover, the company has benefited from an improved cost of capital, with a notable compression in implied capitalization rates to 5.6%, which enhances their investment spread to approximately 250-275 basis points. The steady credit watch list at around 0.9% also contributes to a stable financial outlook. These financial indicators, combined with Ki Bin Kim’s upward revision of the 2025 AFFO per share estimate and an increased target price, support the rationale for the Buy recommendation.

In another report released on October 1, Wells Fargo also maintained a Buy rating on the stock with a $37.00 price target.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EPRT in relation to earlier this year.

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Essential Properties Realty (EPRT) Company Description:

Essential Properties Realty Trust, Inc. engages in the acquisition, ownership, and management of single-tenant properties that are net leased on a long-term basis to middle-market companies, which operates service-oriented or experience-based businesses. Its portfolio includes the following: Captain D’s, Art Van Furniture, Mister Car Wash, Zips Car Wash, AMC Theaters, Perkins, 84 Lumber, Mirabito, Ruby Tuesday and White Oak Station. The company was founded on January 12, 2018 and is headquartered in Princeton, NJ.