Essential Properties Raises 2026 AFFO Guidance Following Q3 Earnings Call
Essential Properties Realty Trust (EPRT) reported its third-quarter 2026 earnings, raising its full-year adjusted funds from operations (AFFO) guidance to a range of $2.02 to $2.05 per share. The company also provided optimistic initial guidance for 2027, projecting AFFO between $2.10 and $2.18 per share, signaling strong recurring cash flow from its single-tenant commercial property portfolio. Management highlighted that tightening credit standards among commercial lenders have reduced competition in the middle market, allowing EPRT to demand higher capitalization rates on new acquisitions. The company is heavily utilizing sale-leaseback transactions—which accounted for 91% of recent investment volume—to provide capital to tenants while securing high yields. Furthermore, EPRT plans to fund its 2027 growth strategy entirely through internal cash generation and asset dispositions, avoiding the need for dilutive equity issuances.
Tickers: $EPRT
Topics: AFFO guidance Commercial Real Estate Real Estate Investment Trust Sale-Leaseback