Essential Properties Realty Trust (EPRT) Financials

Essential Properties Realty Trust (EPRT) has shown consistent growth in its financial performance over the last four years, based on the quarterly data from 2022 through Q1 2025. Here’s an analysis highlighting key trends and observations:

• Steady Increase in Net Income: Net income attributable to common shareholders has grown from approximately $36.4 million in Q1 2023 to about $56.1 million in Q1 2025, representing solid earnings growth on a yearly basis.
• Total Revenue Growth: Total revenue increased steadily from about $64 million in Q4 2022 to $106 million by Q1 2025, reflecting robust top-line growth driven by higher non-interest income.
• Growing Non-Interest Income: Other non-interest income has grown from $74 million in Q4 2022 to over $129 million by Q1 2025, suggesting diversification away from solely interest earnings and potential expansion in service-related revenues.
• Increasing Property & Equipment Assets: Net premises and equipment grew from $3.85 billion in Q1 2023 to about $5.75 billion in Q1 2025, signaling continual investment in the company's real estate portfolio.
• Market Equity Expansion: Total common equity rose from around $2.62 billion in Q1 2023 to approximately $3.81 billion in Q1 2025, indicating stronger capital base and shareholder value.
• Consistent Dividend Payments: Cash dividends per share increased slightly from $0.28 in Q1 2023 to $0.295 in Q1 2025, showing the company’s commitment to returning cash to shareholders.

• High Long-Term Debt Level: Long-term debt rose from around $1.42 billion in Q1 2023 to over $2.11 billion as of Q1 2025. While total liabilities remain manageable relative to assets, investors should monitor debt management and interest costs.
• Stable Earnings Per Share (EPS): Basic and diluted EPS have largely remained in the $0.25 to $0.31 range per quarter, showing steady profitability despite share count changes.
• Accumulated Other Comprehensive Income (Loss) Fluctuations: The company shows swings in AOCI with negative values in recent quarters, indicating potential volatility in items like unrealized gains/losses on securities.

• Negative Net Interest Income: The company consistently reported negative net interest income (i.e., interest expense exceeds interest income) reaching nearly -$23 million in Q1 2025, reflecting the high interest burden on its debt.
• High and Growing Interest Expense: Interest expense on long-term debt rose from approximately $12 million in late 2022 to about $23.8 million by Q1 2025, indicating increased financing costs which could pressure future earnings if not offset by revenue growth.
• Impairment Charges: While impairment charges vary, Q1 2025 recorded $5.9 million in impairments, reflecting asset value risks and occasional write-downs.
• Large Capital Expenditures and Investment Purchases: The company invests heavily, with property improvements and investment security purchases in the hundreds of millions each quarter, leading to consistently negative cash flow from investing activities (e.g., -$284 million in Q1 2025).

Summary: Essential Properties Realty Trust has demonstrated strong and sustained revenue and earnings growth driven by expanding non-interest income and real estate investments. The company maintains a solid equity base, consistent dividend payments, and a steady EPS, appealing to income-focused investors.

However, the growth has been accompanied by rising long-term debt levels and significant interest expenses, which result in negative net interest income. Heavy capital expenditures and periodic impairment charges introduce some risks to cash flow and asset values that investors should monitor. Overall, the financials suggest a real estate investment trust leveraging debt to grow its portfolio and income, with prudent monitoring of financing costs necessary.