Overview

• US net lease REIT's preliminary Q2 net income per share rose 6% yr/yr to $0.34

• Q2 AFFO per share increased 9% yr/yr to $0.50

• Company raised 2026 AFFO and investment guidance

Outlook

• Company raises 2026 AFFO per share guidance to $2.01-$2.05 from $2.00-$2.05

• Company lifts 2026 investment volume guidance to $1.2 bln-$1.5 bln from $1.1 bln-$1.5 bln

• Company maintains 2026 cash G&A expense guidance at $30 mln-$34 mln

Result Drivers

• INVESTMENT ACTIVITY - Q2 results driven by $332.4 mln invested in 103 properties at a 7.8% weighted average cash cap rate

• PORTFOLIO PERFORMANCE - High occupancy and long lease terms supported results, with 99.6% occupancy and 14.3-year weighted average lease term

• CAPITAL MARKETS EXECUTION - Debt and equity capital needs largely addressed for the remainder of the year, per CEO Pete Mavoides

Company press release: ID:nBw8SNdw8a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.34
Q2 Adjusted FFO Per Share		$0.50

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified reits peer group is "buy"

• Wall Street's median 12-month price target for Essential Properties Realty Trust Inc is $37.00, about 11.2% above its July 21 closing price of $33.26

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• July 22 - Netstreit Q2 net income per share up 50%, co lifts FY AFFO guidance

• July 22 - Getty Realty Q2 rental income rises on rental hikes, lifts 2026 AFFO outlook

• July 20 - LXP Industrial Trust agrees to $5.2 billion deal by Brookfield, CPP Investments

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