Essential Properties Realty Trust, Inc. reported fourth‑quarter 2025 results that included net income of $0.34 per share and adjusted funds from operations (AFFO) of $0.49 per share. The earnings per share beat the consensus estimate of $0.33, while the AFFO figure matched the $0.49 estimate, reflecting disciplined cost management and the continued efficiency of the company’s sale‑leaseback acquisition model.
Revenue for the quarter was $149.87 million, a figure that sits close to the range of analyst estimates that clustered around $151.6 million, though some estimates were lower. The revenue performance was driven by steady demand in the company’s core service‑oriented tenant base, offset by modest pricing pressure in a few legacy segments.
During the quarter Essential Properties invested $295.8 million in 58 new properties, achieving a weighted‑average cash cap rate of 7.7%. The portfolio remained highly occupied at 99.7% and maintained a rent‑coverage ratio of 3.6×, underscoring the resilience of the company’s long‑term lease structure and the strength of its tenant mix.
On a full‑year basis, the company added $1.3 billion in new investments and generated $130.1 million in net proceeds from 60 dispositions, resulting in a full‑year AFFO of $1.89 per share. The year‑over‑year growth in AFFO was driven by the company’s ability to scale its asset base through repeat‑relationship deals and sale‑leaseback transactions.
Management raised its 2026 AFFO guidance to a range of $1.99 to $2.04 per share, based on an expected investment volume of $1.0 billion to $1.4 billion and cash operating expenses of $31 million to $35 million. The company also completed a $400 million 10‑year debt issuance at 5.40% and sold $323.6 million of equity through its ATM program, providing additional capital for future growth.
CEO Pete Mavoides said, “Our fourth quarter wrapped up another very strong year for the Company, as growth in our team has enabled us to efficiently scale our asset base, supporting an impressive 9% growth in AFFO per share.” He added, “We fight hard to win deals. We fight hard to add value to our counterparties.”
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