Highlights

  • Total revenues for the three months ended September 30, 2026 were $168,671 thousand, and net income was $60,657 thousand.
  • Provision for impairment of real estate was $15,032 thousand for the quarter, compared with $1,439 thousand a year earlier.
  • Management raised 2026 AFFO guidance to $2.02 to $2.05 per share and investment volume guidance to $1.3 billion to $1.5 billion.
  • Management set initial 2027 AFFO guidance of $2.10 to $2.18 per share and investment volume guidance of $1 billion to $1.5 billion.

Essential Properties Realty Trust, Inc. (NYSE: EPRT) shares were trading at USD 26.75 on October 27, 2026, down 1.55%, with a relative volume at time of 2.07. The net lease real estate company partially exercised the accordion on its revolving credit facility in the third quarter, filed its quarterly report for the period ended September 30, 2026 on October 21, 2026, and gave 2026 and 2027 guidance on its October 22 call.

Essential Properties Realty Trust is a Maryland corporation with principal executive offices in Princeton, New Jersey. It is an internally managed real estate company that acquires, owns and manages primarily single-tenant properties net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. As of September 30, 2026, its portfolio had 2,580 properties with annualized base rent of $629.7 million, and the company had 220,275,169 shares of common stock outstanding as of October 21, 2026. Its fiscal year ends December 31.

Third Quarter 2026 Results

Total revenues were $168,671 thousand for the three months ended September 30, 2026, compared with $144,934 thousand a year earlier.

Net income was $60,657 thousand, compared with $65,800 thousand in the third quarter of 2025. Net income attributable to stockholders was $60,157 thousand, compared with $65,620 thousand. For the nine months, net income was $195,088 thousand, compared with $185,453 thousand.

Interest expense was $34,214 thousand for the quarter, compared with $28,348 thousand. The provision for impairment of real estate was $15,032 thousand for the quarter, compared with $1,439 thousand, and $33,227 thousand for the nine months, compared with $7,934 thousand. During the nine months, the company recorded provisions for impairment at 11 tenanted properties and seven vacant properties.

On the call, management said AFFO, a non-GAAP measure, was $111.9 million, or $0.51 per share, an increase of 6% per share from the prior-year period. It said same-store rent growth was 1.4%, rent coverage was 3.5x and occupancy was 99.6%, and that cash G&A was $7.3 million for the quarter.

Balance Sheet, Liquidity and Capital

At September 30, 2026, cash and cash equivalents were $25.2 million, compared with $60.2 million at December 31, 2025. The balance sheet showed unsecured term loans, net of deferred financing costs, of $1,297,361 thousand and $491,000 thousand outstanding under the revolving credit facility.

Net investments were $7,348,001 thousand across 2,580 properties. The company has agreed to provide construction financing or reimburse tenants for development costs in an aggregate amount of $239.1 million, of which $154.6 million has been funded, and expects to fund the remaining $84.5 million by September 30, 2027.

On the call, management said the company increased revolving credit facility capacity by $300 million to $1.3 billion and prepaid a $430 million term loan, its sole 2027 maturity. It reported $483 million of unsettled forward equity at an average price of $30.50 per share. The company declared a cash dividend of $0.32 per share for the quarter.

Subsequent to September 30, 2026, the company invested in 12 real estate properties for $46.6 million and sold four properties for an aggregate gross sales price of $22.0 million.

Guidance

Management said it is increasing 2026 AFFO per share guidance to $2.02 to $2.05 and investment volume guidance to $1.3 billion to $1.5 billion, with more than $1 billion invested year to date. Cash G&A guidance for 2026 is $30 million to $34 million.

For 2027, management established initial guidance of AFFO per share of $2.10 to $2.18, investment volume of $1 billion to $1.5 billion, expected to be back-end loaded, and cash G&A of $32 million to $37 million. It said the 2027 guidance assumes approximately $200 million of dispositions and no need for external capital.