Group 1 - As of October 22, 2025, two stocks in the real estate sector are showing signs of being overbought, which may concern momentum-focused investors [1][2] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating that a stock may be overbought [2] Group 2 - Curbline Properties Corp. (NYSE:CURB) has an RSI value of 73.9, with a recent stock price of $24.23, reflecting a 3.2% increase [6] - Essential Properties Realty Trust Inc (NYSE:EPRT) has an RSI value of 72.4, with a recent stock price of $31.63, reflecting a 0.8% increase [6] Group 3 - Morgan Stanley analyst upgraded Curbline Properties from Equal-Weight to Overweight with a price target of $27, and the stock has gained approximately 7% over the past month [6] - Berenberg analyst initiated coverage on Essential Properties with a Buy rating and a price target of $36, with the stock gaining around 6% over the past five days [6]

Core Insights - Two stocks in the real estate sector are showing signs of being overbought, which may concern momentum-focused investors [1][2] Company Summaries - **Curbline Properties Corp. (NYSE:CURB)**: - Upgraded from Equal-Weight to Overweight by Morgan Stanley analyst Ronald Kamdem with a price target of $27 - Stock gained approximately 7% over the past month, reaching a 52-week high of $25.69 - RSI Value is 73.9, indicating overbought conditions - Recent price action shows shares rose 3.2% to close at $24.23 [3][6] - **Essential Properties Realty Trust Inc (NYSE:EPRT)**: - Initiated coverage with a Buy rating by Berenberg analyst Kai Klose, with a price target of $36 - Stock gained around 6% over the past five days, achieving a 52-week high of $34.88 - RSI Value is 72.4, also indicating overbought conditions - Recent price action shows shares gained 0.8% to close at $31.63 [4][6]

Core Insights - Essential Properties Realty Trust, Inc. (EPRT) is recognized as one of the 20 Best Stocks to Buy and Hold for a Lifetime due to its consistent revenue and dividend growth [1] Financial Performance - Stifel maintained a Buy rating on EPRT, lowering the price target to $35.00, citing a solid portfolio and financial standing. The company reported sales of $137 million and EPS of $0.32 for Q2 2025, exceeding expectations [2] - EPRT closed a $400 million senior notes issue due in 2035 at a 5.4% interest rate, showcasing strong financing capabilities and a sound balance sheet with $1.7 billion in liquidity [3] - The company anticipates a 7.5% CAGR from 2024 to 2027, along with a third-quarter dividend of $0.30 per share, indicating durability and consistent income potential for investors [3] Business Model - EPRT's mission is to buy, hold, and manage single-tenant buildings in the US, leasing them to middle-market companies for extended periods [4]

Core Viewpoint - The articles emphasize the importance of dividend investing in quality blue-chip stocks, Business Development Companies (BDCs), and Real Estate Investment Trusts (REITs) for building investment portfolios aimed at financial independence [1][2]. Group 1: Investment Strategy - The focus is on a buy-and-hold investment strategy that prioritizes quality over quantity, aiming to supplement retirement income through dividends within the next 5-7 years [1]. - The aspiration is to assist lower and middle-class workers in constructing high-quality, dividend-paying investment portfolios [1]. Group 2: Analyst's Position - The analyst holds a beneficial long position in shares of ADC and VICI, indicating a personal investment interest in these companies [2]. - The article reflects the analyst's own opinions and is not influenced by compensation from any company mentioned [2].

Core Insights - The article highlights the extensive experience of Roberts Berzins in financial management, particularly in shaping financial strategies for top-tier corporates and executing large-scale financings [1] - It emphasizes Berzins' contributions to institutionalizing the REIT framework in Latvia, aimed at enhancing the liquidity of pan-Baltic capital markets [1] - The article also notes Berzins' involvement in developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [1] Group 1 - Roberts Berzins has over a decade of experience in financial management [1] - He has played a significant role in institutionalizing the REIT framework in Latvia [1] - Berzins is involved in policy-level work, including national SOE financing guidelines [1] Group 2 - His efforts aim to boost the liquidity of pan-Baltic capital markets [1] - Berzins holds a CFA Charter and an ESG investing certificate [1] - He has participated in thought-leadership activities to support capital market development [1]

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most rated 5 stars, indicating a strong reputation in the market [1] Group 2 - The article does not provide any specific investment recommendations or advice, emphasizing that past performance does not guarantee future results [3] - It clarifies that the analysts involved do not hold any positions in the mentioned companies and have no plans to initiate any positions in the near future [2]

Financial Data and Key Metrics Changes - The company reported an AFFO per share of $0.46, representing a 7% increase compared to Q2 2024 [19] - Total AFFO for the quarter was $93 million, up 21% from the same period in 2024 [19] - General and administrative expenses increased to $10.7 million from $8.7 million year-over-year, primarily due to increased compensation expenses [20] - The company declared a cash dividend of $0.30, resulting in an AFFO payout ratio of 65% [20] - Income-producing gross assets reached $6.6 billion at quarter end [21] Business Line Data and Key Metrics Changes - The company invested $334 million in the second quarter at a weighted average cash yield of 7.9% [6][11] - The weighted average lease term for new investments was 19.5 years, with a weighted average annual rent escalation of 2.2% [11] - The portfolio ended the quarter with investments in 2,190 properties leased to over 400 tenants, with a weighted average lease term of 14 years [9] - Same store rent growth was reported at 1.4%, with occupancy at 99.6% [14] Market Data and Key Metrics Changes - The company closed $642 million of investments in the first half of the year and increased its full-year investment guidance range to $1 billion to $1.2 billion [8][9] - The weighted average unit level coverage ratio was 3.4 times, indicating strong profitability and cash flow generation by tenants [10] - The company sold 23 properties for $46.2 million in net proceeds during the quarter, with an average cash yield of 7.3% [17] Company Strategy and Development Direction - The company focuses on middle market sale leasebacks with growing operators in targeted industries, emphasizing the value of recurring business with its tenant base [6][8] - The management anticipates that competition may increase as capital markets normalize, leading to potential cap rate compression [8] - The company aims to maintain a well-capitalized balance sheet with low leverage and significant liquidity to support external growth [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting favorable conditions for sourcing attractive investment opportunities [6] - The company is increasing its 2025 AFFO per share guidance to a range of $1.86 to $1.89, reflecting an 8% growth at the midpoint [23] - Management highlighted strong portfolio performance and healthy tenant credit trends, with no major concerns emerging in the credit landscape [71] Other Important Information - The company raised approximately $119 million of equity through its ATM program during the quarter [21] - The pro forma net debt to annualized adjusted EBITDA was 3.5 times at quarter end [23] Q&A Session Summary Question: What is preventing the company from leaning more into acquisitions despite a strong pipeline? - Management indicated they are leaning strongly into acquisitions but are conservative in guidance due to limited visibility on the pipeline [30] Question: Can you provide an update on occupancy and the quantum of assets in the vacancy bucket? - Management noted a slight increase in vacancy with nine properties out of 2,190, primarily in the restaurant space, and emphasized strong forward indicators of risk [31][32] Question: What are the expectations regarding competition and cap rates? - Management expects competition to increase as substantial capital has been raised for net lease investments, which may impact transaction markets [39][40] Question: Can you elaborate on the acquisition of the Whistle car wash portfolio? - Management explained that the acquisition was part of a strategy to manage industry concentration and that the portfolio had strong lease economics [58][61] Question: How does the company view the current credit environment? - Management expressed confidence in the stability of cash flows and tenant performance, with no major concerns emerging [71] Question: What is the company's strategy regarding future debt capital? - Management indicated a preference for the bond market as a long-term source of permanent debt capital, while remaining opportunistic in the current market [125][126]

Financial Data and Key Metrics Changes - The company reported an AFFO per share of $0.46, representing a 7% increase compared to Q2 2024 [18] - Total AFFO for the quarter was $93 million, up 21% from the same period in 2024 [18] - General and administrative expenses increased to $10.7 million from $8.7 million year-over-year, primarily due to increased compensation expenses [19] - The company declared a cash dividend of $0.30, resulting in an AFFO payout ratio of 65% [19] - Income-producing gross assets reached $6.6 billion at quarter end [20] Business Line Data and Key Metrics Changes - The company invested $334 million in the second quarter at a weighted average cash yield of 7.9% [11] - The investment activity was broad-based across most top industries, with a weighted average initial lease term of 19.5 years and a weighted average annual rent escalation of 2.2% [11] - Same store rent growth was reported at 1.4% with an occupancy rate of 99.6% [14] Market Data and Key Metrics Changes - The company closed $642 million of investments in the first half of the year and increased its full-year investment guidance range to $1 billion to $1.2 billion [8] - The weighted average lease term remained at 14 years, with 4.9% of annual base rent expiring over the next five years [8] Company Strategy and Development Direction - The company focuses on middle market sale leasebacks with growing operators in targeted industries, emphasizing the importance of recurring business with its tenant base [6] - The company expects investment cap rates to trend lower in 2025 due to anticipated competition as capital markets normalize [7] - The company aims to maintain a well-capitalized balance sheet with low leverage and significant liquidity to support external growth [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, noting strong tenant credit trends and healthy same store rent performance [6] - The company remains optimistic about its investment pipeline and the overall performance of its portfolio [24] - Management indicated that while competition may increase, the company continues to have ample opportunities and a strong capital position [36] Other Important Information - The company sold 23 properties for $46.2 million in net proceeds during the quarter, highlighting the importance of owning liquid properties [16] - The company has a weighted average unit level coverage ratio of 3.4 times, indicating strong profitability and cash flow generation by its tenants [9] Q&A Session Summary Question: What is preventing the company from leaning more into acquisitions? - The company is leaning strongly into acquisitions but maintains conservative guidance due to limited visibility on the pipeline [26][28] Question: Can you provide an update on occupancy and the quantum of assets in the vacancy bucket? - The company has nine properties out of 2,190 that are vacant, with an average property value of $3 million [29][30] Question: What are the expectations for competition impacting cap rates? - The company expects competition to eventually impact the transaction market, but currently has a strong opportunity set [36][37] Question: Can you elaborate on the acquisition of the Whistle car washes portfolio? - The company managed its car wash exposure while acquiring well-established sites with strong lease coverage [54][56] Question: How does the company view the credit side of its portfolio? - The company sees stability in cash flows and no major concerns emerging from its operators [64] Question: What are the characteristics the company looks for in convenience store investments? - The company seeks well-positioned convenience stores with strong inside store sales and stable corporate credit [102][103]

Portfolio & Leasing - The portfolio is healthy and stable, with 99.6% leased[11] - Same-store rent growth has averaged 1.4% over the last four quarters[11] - Only 4.9% of ABR is expiring through 2029, with a coverage of 4.0x[11] - The portfolio is diversified, with the top 10 tenants representing just 17.6% of ABR[11] - 93% of cash ABR comes from service-oriented and experience-based tenants, indicating e-commerce resilience[28] Financial Performance & Liquidity - The company raised approximately $119 million of common equity through the ATM Program in 2Q'25[11] - The company settled ~$20 million of forward common equity, leaving ~$507 million of net proceeds available from unsettled forward equity as of June 30, 2025[11] - Proforma Net Debt / Annualized Adjusted EBITDAre is 3.5x at 2Q'25-end[11] - The company has ~$1.3 billion of pro forma liquidity[11] Investment & Capital Recycling - Closed investments of ~$334 million at an initial cash yield of ~7.9%[11] - Closed ~$46 million of dispositions at a 7.3% cash yield[11] Debt Profile - Weighted average debt maturity is 3.8 years, and the weighted average interest rate is 4.2%[11]

Core Viewpoint - Essential Properties (EPRT) reported quarterly funds from operations (FFO) of $0.46 per share, which missed the Zacks Consensus Estimate of $0.47 per share, representing an FFO surprise of -2.13% [1] Financial Performance - The company posted revenues of $137.06 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.92%, compared to $109.27 million in the same quarter last year [2] - Over the last four quarters, the company has not surpassed consensus FFO estimates, but it has topped consensus revenue estimates three times [2] Stock Performance - Essential Properties shares have declined approximately 1.3% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The current consensus FFO estimate for the upcoming quarter is $0.48 on revenues of $138.26 million, and for the current fiscal year, it is $1.91 on revenues of $543.84 million [7] Industry Outlook - The REIT and Equity Trust - Retail industry is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]