Essential Properties Delivers $0.50 in Q2 AFFO and Lifts Full-Year Outlook

summarizeSummary

Essential Properties posted Q2 AFFO of $0.50 per share, a 9% increase, and raised its full-year 2026 AFFO and investment guidance, reflecting strong portfolio performance and ample capital to fund growth.

check_boxKey Events · Earnings and Guidance · EPRT

• Q2 AFFO per Share Rises 9%

  Driven by $332.4 million in new investments at a 7.8% cash cap rate, adjusted funds from operations reached $0.50 per share, up from $0.46 a year ago.

• Full-Year Guidance Raised

  Management increased 2026 AFFO guidance to $2.01–$2.05 per share (from $2.00–$2.05) and raised the investment volume target to $1.2–$1.5 billion (from $1.1–$1.5 billion).

• Strong Balance Sheet and Liquidity

  Pro forma net debt to annualized adjusted EBITDAre stood at 3.5x, with $1.7 billion in total liquidity, including $574.7 million in unsettled forward equity.

• Portfolio Remains Healthy

  Occupancy held at 99.6%, same-store rent growth averaged 1.5% over the last four quarters, and only 2.3% of annual base rent expires through 2028.

auto_awesomeAnalysis · EPRT · Real Estate & Construction

A strong second quarter saw AFFO per share climb 9% year-over-year to $0.50, fueled by $332.4 million in new investments at a 7.8% cash cap rate. Reflecting that momentum, management raised its full-year 2026 AFFO guidance to $2.01–$2.05 per share and boosted the investment volume target to $1.2–$1.5 billion, signaling confidence in sustained external growth. The balance sheet remains well-positioned, with pro forma net debt to annualized adjusted EBITDAre of 3.5x and $1.7 billion in total liquidity, including $575 million in unsettled forward equity. These results underscore the company's ability to compound AFFO per share at an above-peer rate while maintaining conservative leverage.