The AFFO beat and raised 2026 guidance combined with initial 2027 guidance above the raised 2026 range confirm the growth trajectory. The revenue miss vs consensus is a modest headwind, but the 16.4% YoY revenue growth and strong investment pipeline at attractive cap rates support the bullish thesis. Monitor the Q4 earnings call for updates on the 2027 investment pipeline and whether the forward equity overhang (~$483M unsettled) gets settled at current lower stock prices.
Price Chart
Executive Summary
Essential Properties Realty Trust reported Q3 2026 AFFO per share of $0.51, beating consensus of $0.49 by 4.1%, while total revenue of $168.7M missed the $176.3M estimate. The company raised its 2026 AFFO guidance to $2.02-$2.05 per share and issued initial 2027 AFFO guidance of $2.10-$2.18, signaling continued earnings growth. Investment activity remained robust at $342.2M at a 7.7% cash cap rate, and the credit facility was upsized to $1.3B with a 5bps spread reduction, reinforcing balance sheet strength.
Key Financial Metrics
Key Facts
- Q3 2026 AFFO per share of $0.51, up 6% YoY from $0.48, beating consensus of $0.49
- Total revenue of $168.7M, up 16.4% YoY from $144.9M, but below $176.3M consensus
- GAAP diluted EPS of $0.27, down 18% YoY from $0.33, due to higher depreciation and impairment charges
- 2026 AFFO guidance raised to $2.02-$2.05 per share from $2.01-$2.05
- Initial 2027 AFFO guidance of $2.10-$2.18 per share issued
- Closed $342.2M of investments in Q3 at a 7.7% weighted average cash cap rate
- Pro forma net debt to annualized Adjusted EBITDAre of 3.8x, up from 3.5x at Q2 2026
- Revolving credit facility upsized to $1.3B with 5bps spread reduction
- Portfolio 99.6% leased with 3.5x unit-level rent coverage and 14.2-year WALT
- Dividend increased to $0.32/share quarterly ($1.28 annualized), up from $0.31
Financial Impact
AFFO beat consensus by ~$0.02/share (+4.1%), revenue miss of ~$7.6M (-4.3%) vs consensus; 2027 AFFO guidance midpoint of $2.14 implies ~7% growth over raised 2026 midpoint of $2.035
Risk Factors
- GAAP net income declined 8% YoY due to higher impairment charges ($15.0M vs $1.4M) and interest expense growth
- Pro forma leverage ticked up to 3.8x from 3.5x at Q2 2026, though still conservative
- Revenue miss vs consensus of ~4.3% may pressure the stock in the near term
- Forward equity overhang of ~15.8M shares ($483M) could pressure the stock if settled at current levels
- Higher interest rate environment increases cost of debt (weighted avg rate 4.33%, up from 4.22% at Q1 2026)
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001728951-26-000069 |
| Document: a3q26investorpresentatio.htm | 0001728951-26-000069 |
| Document: eprt-20261021.htm | 0001728951-26-000069 |
| Document: 0001728951-26-000069-index-headers.html | 0001728951-26-000069 |
| Document: 0001728951-26-000069-index.html | 0001728951-26-000069 |
| Document: 0001728951-26-000069.txt | 0001728951-26-000069 |
| 8-K Data (Synthetic) | 0001728951-26-000069 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $26.26 $26.67 | ▲ +1.56% | ▲ +2.08% | $26.81 (+2.08%) |
Sep 16, 2026 5w ago | 8-K | $26.80 $26.75 | ▼ −0.19% | ▼ −0.07% | $26.81 (+0.02%) |
Sep 16, 2026 5w ago | 8-K | $26.80 $26.75 | ▼ −0.19% | ▼ −0.07% | $26.81 (+0.02%) |
Jul 24, 2026 13w ago | 424B5 | $31.93 $32.10 | ▲ +0.53% | ▲ +0.29% | $26.81 (−16.05%) |
Jun 5, 2026 20w ago | 424B5 | $30.02 $30.36 | ▲ +1.13% | ▲ +1.43% | $26.81 (−10.71%) |
Jun 4, 2026 20w ago | 424B5 | $29.67 $30.27 | ▲ +2.02% | ▲ +4.62% | $26.81 (−9.66%) |
Jun 1, 2026 21w ago | 8-K | $30.14 $29.71 | ▼ −1.43% | ▼ −0.71% | $26.81 (−11.07%) |
Apr 22, 2026 26w ago | 8-K | $31.50 $31.42 | ▼ −0.25% | ▼ −1.04% | $26.81 (−14.90%) |
Apr 7, 2026 29w ago | 8-K | $31.63 $31.68 | ▲ +0.16% | ▼ −2.38% | $26.81 (−15.25%) |
Mar 20, 2026 31w ago | Insider Cluster | $31.39 $30.98 | ▼ −1.29% | ▼ −2.40% | $26.81 (−14.61%) |
US Market Status
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