Essential Properties(EPRT) - 2025 Q4 - Annual Results

Financial Performance - Fourth Quarter 2025 net income per share was $0.34, representing a 13% increase compared to the same quarter in 2024[2] - Adjusted Funds from Operations (AFFO) per share for Q4 2025 was $0.49, a 9% increase year-over-year[2] - Net income attributable to stockholders for Q4 2025 was $68,067,000, compared to $55,374,000 in Q4 2024, reflecting a 22.9% increase[28] - Funds from Operations (FFO) for Q4 2025 were $108,927,000, a 26.2% increase from $86,346,000 in Q4 2024[33] - Core Funds from Operations (CFFO) for the year ended December 31, 2025, were $403,978,000, up 20.8% from $334,503,000 in 2024[33] - Total revenues for the year ended December 31, 2025, reached $561,219,000, up 24.8% from $449,610,000 in 2024[28] - Rental revenue for Q4 2025 was $140,091,000, a 24.8% increase from $112,358,000 in Q4 2024[28] - Basic net income per share for Q4 2025 was $0.34, up from $0.31 in Q4 2024[33] - Net income for the three months ended December 31, 2025, was $68,274,000[37] Investments and Portfolio - The company closed investments totaling $295.8 million at a weighted average cash cap rate of 7.7% during Q4 2025[2] - For the full year 2025, total investments amounted to $1.3 billion across 270 properties, with a weighted average cash cap rate of 7.9%[3] - As of December 31, 2025, the company had a total of 2,300 properties in its portfolio, with a weighted average lease term of 14.4 years and a weighted average rent coverage ratio of 3.6x[21] Liquidity and Capital Structure - Total available liquidity as of December 31, 2025, was $1.4 billion, including cash and cash equivalents of $70.4 million[12] - The company raised $170.3 million through its ATM program at an average price of $30.93 per share during Q4 2025[2] - Total unsecured debt amounted to $2,530,000,000 with a weighted average interest rate of 4.23%[41] - Net debt stood at $2,459,635,000, resulting in a Net Debt to Annualized Adjusted EBITDAre ratio of 4.4x[41] - Pro forma net debt, after adjustments for unsettled forward equity, was $2,127,484,000[41] Dividends - A cash dividend of $0.31 per share was declared for the quarter ended December 31, 2025, representing an annualized dividend of $1.24 per share[17] Assets and Liabilities - Total assets as of December 31, 2025, were $6,863,023,000, an increase from $5,798,682,000 in 2024[31] - Total liabilities increased to $2,655,129,000 as of December 31, 2025, compared to $2,226,555,000 in 2024[31] - Cash and cash equivalents increased to $60,181,000 as of December 31, 2025, from $40,713,000 in 2024[31] - The company reported a total of 199,903,360 basic weighted-average shares outstanding for Q4 2025, compared to 177,425,316 in Q4 2024[28] Operational Metrics - Adjusted EBITDAre for the current estimated run rate was $140,604,000[37] - Annualized EBITDAre was reported at $557,704,000[37] - The company reported an annualized adjusted NOI of $606,920,000[37] - Cash NOI for the quarter was $137,939,000[37] - The company’s total enterprise value (TEV) was $8,695,836,000[41] Ratios and Metrics - GAAP Cap Rate is calculated as expected annual rental and interest income divided by the gross investment in the property, including transaction costs[62] - Rent Coverage Ratio measures the ratio of annual EBITDA and cash rent to the annualized base rental obligation[63] - Weighted Average Annual Escalation reflects the entire portfolio as if all escalations occur annually, assuming fixed percentage escalations in leases[64]