Essential Properties Realty Gains Momentum with Analyst Upgrade and Strong Fundamentals

A significant analyst upgrade and robust quarterly results have injected fresh optimism into Essential Properties Realty Trust’s investment narrative. The net-lease REIT, which has consistently demonstrated operational strength, now enjoys enhanced market sentiment following a major endorsement from Wall Street.

Quarterly Performance Exceeds Projections

The company’s operational momentum was clearly demonstrated in its second-quarter 2025 results, released on July 23. Essential Properties Realty surpassed analyst expectations across key financial metrics, reinforcing confidence in its business model.

• Revenue: $137.06 million, exceeding projections of $128.23 million
• Adjusted Funds From Operations (AFFO) per share: $0.46
• Net income per share: $0.32, ahead of the anticipated $0.31

This outperformance stems from efficient portfolio management and strategic acquisitions that have directly enhanced profitability.

Major Wall Street Endorsement

Adding substantial fuel to the bullish case, investment bank Evercore ISI Group issued a powerful upgrade on September 15. Analyst Sheila McGrath elevated her rating on Essential Properties Realty from “In-Line” to “Outperform.” More significantly, she raised her price target by 5.88%, from $34 to $36 per share. This upward revision reflects growing confidence in the fundamental strength and growth potential embedded within the company’s real estate portfolio.

This positive outlook is part of a broader consensus on Wall Street. Among the 11 banks covering the stock, nine maintain a “Buy” recommendation, while two advise holding. The average price target of approximately $35.40 implies a potential upside of nearly 18% from current levels, presenting a compelling opportunity for investors.

Should investors sell immediately? Or is it worth buying Essential Properties Realty?

Reliable Income Profile Reinforced

Beyond its growth prospects, Essential Properties Realty continues to appeal to income-focused investors through its dependable dividend. On September 8, the company confirmed a quarterly cash dividend of $0.30 per share for the third quarter of 2025. This distribution will be paid on October 14 to shareholders of record as of September 30.

• Annualized Dividend: $1.20 per share
• Current Dividend Yield: Approximately 4.0%
• Dividend Growth Track Record: 7 consecutive years of increases

This consistent history of returning capital to shareholders underscores the company’s reliable income-generating character.

Strategic Growth Initiatives and Financing

Bolstered by its strong performance, management has raised its full-year 2025 guidance. The company increased its AFFO forecast to a range of $1.86 to $1.89 per share. Its acquisition guidance was even more ambitious, projecting investment activity between $1.0 billion and $1.2 billion, signaling an aggressive expansion strategy within the net-lease market.

To fund this growth, Essential Properties Realty successfully placed a $400 million bond offering on August 18. The senior notes, carrying a 5.4% interest rate, are designated for repaying existing credit facility balances and financing future investments. This strategic capital raise strengthens the balance sheet and provides ample flexibility to execute its ambitious acquisition plans.