EPRT

MKT CAP $5.9BP/E 21.1DIV YIELD 4.56%FCF YIELD —REV TTM $615.5M +22.3%NET INCOME $267.8M +19.6%NET DEBT $2.8B52W 24.89 – 34.59SEC XBRL · TTM TO Invalid Date

How EPRT rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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As of December 31, 2025, 91.5% of our $555.0 million of annualized base rent was attributable to properties operated by tenants in service-oriented and experience-based businesses.
"Annualized base rent" means annualized contractually specified cash base rent in effect on December 31, 2025 for all of our leases (including those accounted for as loans or direct financing leases) commenced as of that date and annualized cash interest on our mortgage loans receivable as of that date.
We elected to be taxed as a REIT for U.S. federal income tax purposes beginning with the year ended December 31, 2018, and we believe that our current organization, operations and intended distributions will allow us to continue to so qualify.
Our common stock is listed on the NYSE under the symbol “EPRT”.
As of December 31, 2025, we had a portfolio of 2,300 properties (inclusive of one undeveloped land parcel and 150 properties which secure our investments in mortgage loans receivable) that was diversified by tenant, industry, concept and geography, had annualized base rent of $555.0 million and was 99.7% occupied.
As of December 31, 2025, our portfolio was 99.7% occupied by tenants operating 659 different brands, or concepts, across 48 states, with none of our tenants contributing more than 3.4% of our annualized base rent.
As of December 31, 2025, our leases had a weighted average remaining lease term of 14.4 years (based on annualized base rent), with 5.2% of our annualized base rent attributable to leases expiring prior to January 1, 2031.
During the year ended December 31, 2025, 95% of our investments were sale-leaseback transactions.
As of December 31, 2025, 66.8% of our annualized base rent was attributable to master leases.
As of December 31, 2025, 97.9% of our leases (based on annualized base rent) provided for increases in future base rent at a weighted average rate of 1.8% per year.
As of December 31, 2025, our average investment per property was $3.1 million (which equals our aggregate investment in our properties (including transaction costs, lease incentives and amounts funded for construction in progress) divided by the number of properties owned at such date), and we believe investments of similar size allow us to grow our portfolio without concentrating a large amount of capital in individual properties and limit our exposure to events that may adversely affect a particular property.
As of December 31, 2025, our portfolio’s weighted average rent coverage ratio was 3.6x, and 99.2% of our leases (based on annualized base rent) obligate the tenant to periodically provide us with specified unit-level financial reporting.
Historical Investment and Disposition Activity The following table sets forth select information about our investment activity for the previous eight quarters beginning with the quarter ended March 31, 2024 through the quarter ended December 31, 2025 (dollars in thousands): Three Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Investment activity $ 248,770 $ 333,910 $ 307,615 $ 333,435 Number of transactions 36 35 37 37 Property count 79 83 57 78 Avg. investment per unit $ 2,767 $ 3,393 $ 4,102 $ 3,281 Cash cap rate 1 8.1% 8.0% 8.1% 8.0% GAAP cap rate 2 9.3% 9.1% 9.1% 9.2% Master lease percentage 3,4 82% 76% 57% 69% Sale-leaseback percentage 3,5 100% 100% 89% 100% Existing relationship percentage 87% 82% 79% 79% Percentage of financial reporting 3 100% 100% 100% 100% Rent coverage ratio 2.7x 3.0x 4.7x 3.4x Lease term (years) 17.2 17.8 17.2 17.7 Three Months Ended March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Investment activity $ 307,706 $ 334,041 $ 369,848 $ 295,814 Number of transactions 21 25 35 34 Property count 48 77 87 58 Avg. investment per unit $ 5,453 $ 3,971 $ 3,849 $ 4,588 Cash cap rate 1 7.8% 7.9% 8.0% 7.7% GAAP cap rate 2 9.4% 9.7% 10.0% 9.1% Master lease percentage 3,4 71% 69% 76% 76% Sale-leaseback percentage 3,5 90% 93% 97% 100% Existing relationship percentage 86% 88% 70% 85% Percentage of financial reporting 3 100% 100% 100% 100% Rent coverage ratio 3.0x 3.4x 5.9x 4.7x Lease term (years) 17.5 19.5 18.6 19.4 _____________________________________ (1) Cash annualized base rent for the first full month after the investment divided by the gross investment in the property plus transaction costs.
The following table sets forth select information about our disposition activity for the previous eight quarters beginning with the quarter ended March 31, 2024 through the quarter ended December 31, 2025 (dollars in thousands): Three Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Disposition volume 1 $ 11,949 $ 4,783 $ 16,973 $ 60,449 Cash cap rate on leased assets 2 6.5% 7.3% 6.8% 7.0% Leased properties sold 3 6 4 7 24 Vacant properties sold 3 1 2 2 — Three Months Ended March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Disposition volume 1 $ 24,338 $ 46,193 $ 11,455 $ 48,083 Cash cap rate on leased assets 2 6.9% 7.3% 6.6% 6.9% Leased properties sold 3 10 18 6 13 Vacant properties sold 3 1 5 1 6 _____________________________________ (1) Net of transaction costs.
Liquidity and Capital Resources As of December 31, 2025, the net investment value of our income property portfolio totaled $6.6 billion, consisting of investments in 2,300 properties (inclusive of one undeveloped land parcel and 150 properties which secure our investments in mortgage loans receivable), with annualized base rent of $555.0 million.
The occupancy level of our portfolio is high (99.7% as of December 31, 2025) and, because substantially all of our leases are triple-net (whereby our tenants are generally responsible for all maintenance, costs for operating the property, and insurance and property taxes associated with the leased properties), our liquidity requirements are not significantly impacted by property costs.
As of December 31, 2025, six of our investment properties were vacant, less than 1% of our portfolio, and all remaining properties were subject to a lease (excluding one undeveloped land parcel) or mortgage loan receivable.
When we sell properties, we generally reinvest the cash proceeds in new single-tenant properties.
Our short-term liquidity requirements also include the funding needs associated with 74 properties where we have agreed to reimburse the tenant for certain development, construction, or renovation costs or to provide construction financing in exchange for contractual payments of interest or increased rent that generally increases in proportion with our level of funding.
As of December 31, 2025, we agreed to provide construction financing or reimburse the tenant for certain development, construction and renovation costs in an aggregate amount of $388.4 million, and, as of such date, we have funded $273.9 million of this commitment.
We expect to fund the remaining commitment totaling approximately $114.5 million by December 31, 2026.
Additionally, as of February 6, 2026, we were under contract to acquire 1 property with an aggregate purchase price of $9.6 million, subject to completion of our due diligence procedures and satisfaction of customary closing conditions.
We expect to meet our short-term liquidity requirements, including our construction financing and tenant reimbursement obligations and potential investment in future single-tenant properties, primarily with our cash and cash equivalents, net cash from operating activities, issuance of common stock subject to outstanding forward purchase commitments, borrowings under the Revolving Credit Facility and potentially through proceeds generated from asset sales and our October 2024 ATM Program, under which we may offer and sell common stock with an aggregate gross sales price of up to $338.5 million as of February 6, 2026.
Holders of OP Units and LTIP Units are entitled to distributions per unit equivalent to those paid by us per share of common stock.
During the year ended December 31, 2025, our Board declared total cash distributions of $1.205 per share of common stock/OP Unit/LTIP Unit totaling $243.7 million and $65.4 million is payable as of December 31, 2025.
Although we are not required to maintain a particular leverage ratio and may not be able to do so, we generally consider that, over time, a level of pro forma net debt (which includes recourse and non-recourse borrowings and any outstanding preferred stock less cash and cash equivalents, restricted cash available for future investment and estimated proceeds from unsettled forward equity contracts assuming full physical settlement) that is less than 5.5 times our annualized adjusted EBITDA re is prudent for a real estate company like ours.
As of December 31, 2025, all of our long-term debt was fixed-rate debt or was effectively converted to a fixed-rate for the term of the debt though hedging strategies and our weighted average debt maturity was 4.2 years.
We believe that the cash generated by our operations, together with our cash and cash equivalents at December 31, 2025, our borrowing availability under the Revolving Credit Facility, issuance of common stock subject to outstanding forward purchase commitments, and our potential access to additional sources of capital, will be sufficient to fund our operations for the next 12 months, including investing in the real estate for which we currently have commitments, and the longer term period thereafter.
At December 31, 2025, the Operating Partnership had issued and outstanding $800.0 million of senior notes.
The obligations of the Operating Partnership under these senior notes are guaranteed by the Company.
Description of Certain Debt The following table summarizes our outstanding indebtedness as of December 31, 2025 and 2024: Principal Outstanding Weighted Average Interest Rate (1) (in thousands) Maturity Date December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Unsecured term loans: 2027 Term Loan February 2027 $ 430,000 $ 430,000 2.36% 2.46% 2028 Term Loan January 2028 400,000 400,000 4.51% 4.71% 2029 Term Loan February 2029 (2) 450,000 450,000 5.25% 5.45% 2030 Term Loan January 2030 (2) 450,000 450,000 4.67% 4.87% Senior unsecured notes: 2031 Notes July 2031 400,000 400,000 3.12% 3.12% 2035 Notes December 2035 400,000 — 5.40% —% Revolving Credit Facility February 2026 — — —% —% Total principal outstanding $ 2,530,000 $ 2,130,000 4.23% 4.14% _______________________________________________________________ (1) Interest rates are presented after giving effect to our interest rate swap and lock agreements, where applicable.
Revolving Credit Facility and Credit Facility Term Loans Through our Operating Partnership, we are party to an Amended and Restated Credit Agreement with a group of lenders, which was most recently amended on February 6, 2025 (the "Amended Credit Agreement"), and provides for revolving loans of up to $1.0 billion (the "Revolving Credit Facility") and an additional $1.3 billion of term loans, consisting of a $400.0 million term loan (the "2028 Term Loan"), a $450.0 million term loan (the “2029 Term Loan”) and a $450.0 million term loan (the "2030 Term Loan" and, together with the 2028 Term Loan and 2029 Term Loan, the “CF Term Loans”).
All principal amounts available under the CF Term Loans were drawn as of December 31, 2025.
The loans under each of the Revolving Credit Facility and the CF Term Loans initially bear interest at an annual rate of applicable Adjusted Term SOFR (as defined in the Amended Credit Agreement) plus an applicable margin (which applicable margin varies between the Revolving Credit Facility and the CF Term Loans).
The Amended Credit Agreement has an accordion feature to increase, subject to certain conditions, the maximum availability of credit (either through increased revolving commitments or additional term loans) by up to $1.0 billion.
The Operating Partnership is the borrower under the Amended Credit Agreement, and we and certain of the subsidiaries of the Operating Partnership that own a direct or indirect interest in an eligible real property asset are guarantors under the Amended Credit Agreement.
Under the terms of the Amended Credit Agreement, we are subject to customary restrictive financial and nonfinancial covenants which, among other things, require us to maintain certain leverage ratios, cash flow and debt service coverage ratios, secured borrowing ratios.
As of December 31, 2025, we were in compliance with these covenants.
The Amended Credit Agreement also restricts our ability to pay distributions to our stockholders under certain circumstances.
In addition to the financial covenants described above, the Amended Credit Agreement contains customary affirmative and negative covenants that, among other things and subject to exceptions, limit or restrict our ability to incur indebtedness and liens, consummate mergers or other fundamental changes, dispose of assets, make certain restricted payments, make certain investments, modify our organizational documents, transact with affiliates, change our fiscal periods, provide negative pledge clauses, make subsidiary distributions, enter into certain new lines of business or engage in certain activities, and fail to meet the requirements for taxation as a REIT. 2027 Term Loan Through our Operating Partnership, we are party to a $430.0 million term loan (the “2027 Term Loan”) that matures in February 2027.

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Gone since FY2024

As of December 31, 2024, 93.2% of our $460.6 million of annualized base rent was attributable to properties operated by tenants in service-oriented and experience-based businesses.
"Annualized base rent" means annualized contractually specified cash base rent in effect on December 31, 2024 for all of our leases (including those accounted for as loans or direct financing leases) commenced as of that date and annualized cash interest on our mortgage loans receivable as of that date.
We elected to be taxed as a REIT for federal income tax purposes beginning with the year ended December 31, 2018, and we believe that our current organization, operations and intended distributions will allow us to continue to so qualify.
Our common stock is listed on the New York Stock Exchange under the symbol “EPRT”.
As of December 31, 2024, we had a portfolio of 2,104 properties (inclusive of 150 properties which secure our investments in mortgage loans receivable) that was diversified by tenant, industry, concept and geography, had annualized base rent of $460.6 million and was 99.7% occupied.
As of December 31, 2024, our portfolio was 99.7% occupied by 413 tenants operating 592 different brands, or concepts, in 16 industries across 49 states, with none of our tenants contributing more than 4.2% of our annualized base rent.
As of December 31, 2024, our leases had a weighted average remaining lease term of 14.0 years (based on annualized base rent), with 5.8% of our annualized base rent attributable to leases expiring prior to January 1, 2030.
During the year ended December 31, 2024, approximately 97.2% of our investments were sale-leaseback transactions.
As of December 31, 2024, 66.1% of our annualized base rent was attributable to master leases.
As of December 31, 2024, 98.4% of our leases (based on annualized base rent) provided for increases in future base rent at a weighted average rate of 1.7% per year.
As of December 31, 2024, our average investment per property was $2.9 million (which equals our aggregate investment in our properties (including transaction costs, lease incentives and amounts funded for construction in progress) divided by the number of properties owned at such date), and we believe investments of similar size allow us to grow our portfolio without concentrating a large amount of capital in individual properties and limit our exposure to events that may adversely affect a particular property.
As of December 31, 2024, our portfolio’s weighted average rent coverage ratio was 3.5x, and 98.9% of our leases (based on annualized base rent) obligate the tenant to periodically provide us with specified unit-level financial reporting.
Historical Investment and Disposition Activity The following table sets forth select information about our investment activity for the previous eight quarters beginning with the quarter ended March 31, 2023 through the quarter ended December 31, 2024 (dollars in thousands): Three Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Investment activity $ 248,770 $ 333,910 $ 307,615 $ 333,435 Number of transactions 36 35 37 37 Property count 79 83 57 78 Avg. investment per unit $ 2,767 $ 3,393 $ 4,102 $ 3,281 Cash cap rate 1 8.1% 8.0% 8.1% 8.0% GAAP cap rate 2 9.3% 9.1% 9.1% 9.2% Master lease percentage 3,4 82% 76% 57% 69% Sale-leaseback percentage 3,5 100% 100% 89% 100% Existing relationship percentage 87% 82% 79% 79% Percentage of financial reporting 3 100% 100% 100% 100% Rent coverage ratio 2.7x 3.0x 4.7x 3.4x Lease term (years) 17.2 17.8 17.2 17.7 Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Investment activity $ 207,147 $ 277,361 $ 213,327 $ 314,865 Number of transactions 24 29 30 43 Property count 57 78 65 93 Avg. investment per unit $ 3,401 $ 3,350 $ 2,812 $ 3,008 Cash cap rate 1 7.6% 7.4% 7.6% 7.9% GAAP cap rate 2 9.0% 8.7% 8.7% 9.1% Master lease percentage 3,4 86% 57% 60% 72% Sale-leaseback percentage 3,5 100% 99% 100% 97% Existing relationship percentage 94% 66% 86% 96% Percentage of financial reporting 3 100% 100% 100% 100% Rent coverage ratio 3.3x 3.9x 3.3x 3.3x Lease term (years) 19.0 19.3 17.6 17.6 _____________________________________ (1) Cash annualized base rent for the first full month after the investment divided by the gross investment in the property plus transaction costs.
The following table sets forth select information about our disposition activity for the previous eight quarters beginning with the quarter ended March 31, 2023 through the quarter ended December 31, 2024 (dollars in thousands): Three Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Disposition volume 1 $ 11,949 $ 4,783 $ 16,973 $ 60,449 Cash cap rate on leased assets 2 6.5% 7.3% 6.8% 7.0% Leased properties sold 3 6 4 7 24 Vacant properties sold 3 1 2 2 — Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Disposition volume 1 $ 37,161 $ 41,736 $ 28,496 $ 30,602 Cash cap rate on leased assets 2 6.1% 6.2% 6.5% 6.6% Leased properties sold 3 17 14 9 9 Vacant properties sold 3 — 2 1 — _____________________________________ (1) Net of transaction costs.
Liquidity and Capital Resources As of December 31, 2024, the net investment value of our income property portfolio totaled $5.6 billion, consisting of investments in 2,104 properties (inclusive of 150 properties which secure our investments in mortgage loans receivable), with annualized base rent of $460.6 million.
The occupancy level of our portfolio is high (99.7% as of December 31, 2024) and, because substantially all of our leases are triple-net (whereby our tenants are generally responsible for all maintenance, costs for operating the property, and insurance and property taxes associated with the leased properties), our liquidity requirements are not significantly impacted by property costs.
As of December 31, 2024, seven of our investment properties were vacant, significantly less than 1% of our portfolio, and all remaining properties were subject to a lease or mortgage loan receivable.
When we sell properties, we generally reinvest the cash proceeds from our sales in new single-tenant properties.
Our short-term liquidity requirements also include the funding needs associated with 104 properties where we have agreed to reimburse the tenant for certain development, construction, or renovation costs or to provide construction financing in exchange for contractual payments of interest or increased rent that generally increases in proportion with our level of funding.
As of December 31, 2024, we agreed to provide construction financing or reimburse the tenant for certain development, construction and renovation costs in an aggregate amount of $627.3 million, and, as of such date, we have funded $472.5 million of this commitment.
We expect to fund the remaining commitment totaling approximately $154.8 million by December 31, 2025.
Additionally, as of February 7, 2025, we were under contract to acquire 13 properties with an aggregate purchase price of $41.9 million, subject to completion of our due diligence procedures and satisfaction of customary closing conditions.
We expect to meet our short-term liquidity requirements, including our construction financing and tenant reimbursement obligations and potential investment in future single-tenant properties, primarily with our cash and cash equivalents, net cash from operating activities, issuance of common stock subject to outstanding forward purchase commitments, borrowings under the Revolving Credit Facility and potentially through proceeds generated from asset sales and our October 2024 ATM Program, under which we may issue common stock with an aggregate gross sales price of up to $671.1 million as of February 7, 2025.
Holders of OP Units are entitled to distributions per unit equivalent to those paid by us per share of common stock.
During the year ended December 31, 2024, our Board declared total cash distributions of $1.16 per share of common stock/OP Unit totaling $208.1 million and $55.6 million is payable as of December 31, 2024.
Although we are not required to maintain a particular leverage ratio and may not be able to do so, we generally consider that, over time, a level of net debt (which includes recourse and non-recourse borrowings and any outstanding preferred stock less cash and cash equivalents and restricted cash available for future investment) that is less than six times our annualized adjusted EBITDA re is prudent for a real estate company like ours.
As of December 31, 2024, all of our long-term debt was fixed-rate debt or was effectively converted to a fixed-rate for the term of the debt though hedging strategies and our weighted average debt maturity was 4.2 years.
We believe that the cash generated by our operations, together with our cash and cash equivalents at December 31, 2024, our borrowing availability under the Revolving Credit Facility, issuance of common stock subject to outstanding forward purchase commitments, and our potential access to additional sources of capital, will be sufficient to fund our operations for the next 12 months, including investing in the real estate for which we currently have commitments, and the longer term period thereafter.
At December 31, 2024, the Operating Partnership had issued and outstanding $400.0 million of senior notes.
The obligations of the Operating Partnership under the senior notes are guaranteed on a senior basis by the Company.
Description of Certain Debt The following table summarizes our outstanding indebtedness as of December 31, 2024 and 2023: Principal Outstanding Weighted Average Interest Rate (1) (in thousands) Maturity Date December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Unsecured term loans: 2027 Term Loan February 2027 $ 430,000 $ 430,000 2.5% 2.4% 2028 Term Loan January 2028 400,000 400,000 4.7% 4.6% 2029 Term Loan February 2029 (2) 450,000 450,000 5.4% 4.3% 2030 Term Loan January 2030 (2) 450,000 — 4.9% —% Senior unsecured notes July 2031 400,000 400,000 3.1% 3.1% Revolving Credit Facility February 2026 — — —% —% Total principal outstanding $ 2,130,000 $ 1,680,000 4.1% 3.6% _______________________________________________________________ (1) Interest rates are presented after giving effect to our interest rate swap and lock agreements, where applicable.
Revolving Credit Facility and Credit Facility Term Loans Through our Operating Partnership, we are party to an Amended and Restated Credit Agreement with a group of lenders, which was most recently amended on February 6, 2025 (the "Credit Agreement") and provides for revolving loans of up to $1.0 billion (the "Revolving Credit Facility") and an additional $1.3 billion of term loans, consisting of a $400.0 million term loan (the "2028 Term Loan"), a $450.0 million term loan (the “2029 Term Loan”) and a $450.0 million term loan (the "2030 Term Loan" and, together with the 2028 Term Loan and 2029 Term Loan, the “CF Term Loans”).
All principal amounts available under the CF Term Loans were drawn prior to December 31, 2024.
The loans under each of the Revolving Credit Facility and the CF Term Loans initially bear interest at an annual rate of applicable Adjusted Term SOFR (as defined in the Credit Agreement) plus an applicable margin (which applicable margin varies between the Revolving Credit Facility and the CF Term Loans).
The Credit Agreement has an accordion feature to increase, subject to certain conditions, the maximum availability of credit (either through increased revolving commitments or additional term loans) by up to $1.0 billion.
The Operating Partnership is the borrower under the Credit Agreement, and we and certain of the subsidiaries of the Operating Partnership that own a direct or indirect interest in an eligible real property asset are guarantors under the Credit Agreement.
Under the terms of the Credit Agreement, we are subject to customary restrictive financial and nonfinancial covenants which, among other things, require us to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios.
As of December 31, 2024, we were in compliance with these covenants.
The Credit Agreement also restricts our ability to pay distributions to our stockholders under certain circumstances.
In addition to the financial covenants described above, the Credit Agreement contains customary affirmative and negative covenants that, among other things and subject to exceptions, limit or restrict our ability to incur indebtedness and liens, consummate mergers or other fundamental changes, dispose of assets, make certain restricted payments, make certain investments, modify our organizational documents, transact with affiliates, change our fiscal periods, provide negative pledge clauses, make subsidiary distributions, enter into certain new lines of business or engage in certain activities, and fail to meet the requirements for taxation as a REIT. 2027 Term Loan On February 18, 2022, we, through our Operating Partnership, amended our existing $430.0 million term loan credit facility (the "2027 Term Loan") to, among other things, reduce the Applicable Margin, extend the maturity date to February 18, 2027 and make certain other changes consistent with market terms and conditions.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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