Investment Thesis - Essential Properties Realty Trust (EPRT) is guided by an effective investment strategy, resulting in elite-level business metrics and outperforming many popular triple-net lease REITs in terms of AFFO per share growth and dividend growth [1][34] Company Overview - EPRT is a service-oriented triple-net lease REIT with 1,937 properties owned as of March 2024, with 79.8% of ABR derived from service-oriented properties [3][34] - The company has a well-diversified portfolio across 48 states, with approximately 80% of ABR generated from the top 21 states and around 50% from Sunbelt states [18][19] Business Metrics - EPRT maintains a high occupancy rate of 99.9% as of March 2024, outperforming peers Agree Realty (99.6%) and NNN REIT (99.4%) [9] - The weighted average lease term (WALT) for EPRT is 14.1 years, significantly higher than peers ADC (8.2 years) and NNN (10.0 years) [11] - EPRT's weighted average annual rent escalation rate is 1.7%, with 98.8% of its ABR subject to such increases [15][16] Dividend and AFFO Growth - EPRT has achieved a compound annual growth rate (CAGR) of 6.2% in dividends from 2020 to 2023, with a forward-looking dividend yield of approximately 4.2% [22] - The company outperformed peers in AFFO per share growth during the same period, achieving a CAGR of 9.7% compared to ADC's 6.9% and NNN's 3.9% [23][24] Financial Position - EPRT has a solid balance sheet with a BBB credit rating, 100% of its debt at a fixed rate, and a fixed charge coverage ratio of 5.9x, the highest among its peers [27][29] - The company has strong liquidity of $863.3 million, ensuring it can address near-term investment opportunities [29] Valuation Outlook - The forward-looking P/FFO multiple for EPRT is expected to appreciate to a range of 15.5x-16.0x, reflecting its unique investment approach and solid financial stance [31][35]

Core Insights - The article discusses the top stocks across 11 market sectors, emphasizing the importance of quantitative analysis in identifying strong investment opportunities [2][3][36]. Quantitative Analysis - Quantitative analysis combines traditional investment research with advanced computer processing to evaluate thousands of stocks daily [4][5][6]. - The strategy focuses on a GARP (Growth at a Reasonable Price) approach, incorporating analyst EPS revisions and momentum [8][9][10]. Sector Performance - Over the past year, communication technology has been the best-performing sector, while real estate and consumer staples have underperformed [21][35]. - Year-to-date, utilities, energy, and communication sectors have led, with consumer discretionary and real estate lagging [21][35]. Top Stock Picks by Sector - **Consumer Discretionary**: Giga Cloud (GCT) has shown a 97% increase, with strong growth and profitability metrics [42][54]. - **Consumer Staples**: Sprouts Farmers (SFM) is up 111% over the last year, with a notable EPS growth of 24% [58][60]. - **Energy**: Weatherford International (WFRD) has a 154% EPS growth year-over-year, outperforming major competitors [61][62]. - **Financials**: Berkshire Hathaway (BRK.A) has outperformed the S&P 500 Financials sector, with strong growth and profitability metrics [64][66]. - **Healthcare**: Tenet Healthcare Corporation (THC) has a net income growth of 12%, significantly outperforming the sector [70][72]. - **Industrials**: SkyWest (SKYW) has shown a 190% increase, with a projected EPS growth rate of 787% for fiscal year 2024 [73][76]. - **Materials**: Taseko Mines (TGB) is up 95% year-to-date, with a forward EPS growth of 210% [79][80]. - **Real Estate**: EPR Properties (EPRT) has outperformed the real estate sector, with a year-to-date increase of 7.7% [82][83]. - **Technology**: Super Micro Computer (SMCI) has increased by 590% in the last year, with strong growth and profitability metrics [86][87]. - **Utilities**: NRG has shown a 150% increase over the last year, with a strong return on equity of 62% [95][96]. Performance Metrics - The top stocks identified have collectively outperformed the S&P 500, with an average increase of 175% over the past year [38][39]. - The Seeking Alpha Quant system has been validated by an independent study, showing superior performance compared to traditional factor models [16].

Seiya Tabuchi Many yield-chasing investors out there (including myself) apply buy and hold strategies to construct portfolios, which do not require an active involvement beside some periodic rebalancing. The key objective is to select defensive enough companies that offer above-average current income streams and leave them untouched in portfolios for a long period of time, thereby fostering a snowball effect via a combination of dividend growth and reinvestments. While this requires a somewhat heavy due dil ...

Andy Sotiriou Introduction In their Q1 2024 earnings call, Essential Properties Realty Trust, Inc.'s (NYSE:EPRT) CEO updated the 2024 adjusted funds from operations (AFFO) guidance to a range of $1.72 to $1.75 which implies a 5.15% growth in AFFO at the midpoint as compared to 2023. Please take a look at Table 1 for EPRT's AFFO yield using the AFFO estimate and the stock's closing price on May 6th 2024. Table 1: AFFO Yield 2024 AFFO guidance at midpoint $1.735 Share price at the close on 5/6/24 $27.15 ...

Hispanolistic Since September 2023, when I issued my first bull thesis on Essential Properties Realty Trust (NYSE:EPRT) I have been actively covering the stock and made several additions to the position. The thesis is based on a relatively depressed P/FFO multiple, strong underlying growth and a fairly conservative AFFO payout ratio, which allows EPRT to act opportunistically in the M&A field. Moreover, the fact that EPRT carries a below-average debt load with the first notable maturities kicking in only in ...

Essential Properties (EPRT) reported $103.5 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 23.7%. EPS of $0.42 for the same period compares to $0.29 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $103.37 million, representing a surprise of +0.13%. The company delivered an EPS surprise of -2.33%, with the consensus EPS estimate being $0.43.While investors closely watch year-over-year changes in headline numbers -- revenue and earnin ...

Essential Properties (EPRT) came out with quarterly funds from operations (FFO) of $0.42 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to FFO of $0.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -2.33%. A quarter ago, it was expected that this company would post FFO of $0.42 per share when it actually produced FFO of $0.42, delivering no surprise.Over the last four quarters, the company has n ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________________________________ FORM 10-Q _____________________________________________________________________________________________________________ (Mark One) Registrant's telephone number, including area code: (609) 436-0619 ______________________________________________________________________________________________________ Securities ...

Exhibit 99.1 Essential Properties Announces First Quarter 2024 Results - First Quarter Net Income per Share of $0.28 and AFFO per Share of $0.42 - - Closed Investments of $248.8 million at an 8.1% Weighted Average Cash Cap Rate - - Updates 2024 AFFO Guidance to $1.72 to $1.75 per Share - April 24, 2024 PRINCETON, N.J.--(BUSINESS WIRE)--Essential Properties Realty Trust, Inc. (NYSE: EPRT; "Essential Properties" or the "Company") today announced operating results for the three months ended March 31, 2024. Fir ...

The Zacks REIT and Equity Trust - Retail industry constituents are expected to benefit from consumers’ growing preference for in-store shopping experiences and limited new supply of retail real estate space. Efforts to support omnichannel retailing, adaptive reuse capabilities and a focus on e-commerce resistant sectors have poised Essential Properties Realty Trust, Inc. (EPRT) and Tanger Inc. (SKT) well for growth.Nevertheless, concerns loom due to rising retailer bankruptcies, elevated borrowing costs, hi ...