Three net lease REITs are buying properties at spreads well above Treasury yields and quietly building cash reserves, but rising rates are forcing a refinancing reckoning that will separate the dividend survivors from the ones that quietly stumble.
EPRT is upgraded to Buy as valuation compresses, with AFFO yield now 285 bps above the 10-year Treasury. Essential Properties Realty Trust's share price decline has eliminated its premium, with implied cap rates now closely aligned to acquisition yields, improving relative value. Tenant credit risk is rising, evidenced by higher credit adjustments and impairments, but remains manageable given portfolio diversification and strong rent coverage.
Essential Properties offers a secure payout with room to keep growing over the long haul. Once again, the net lease REIT upped its investment volume guidance for 2026. EPRT net leverage ratio was just 3.5x and it had $1.7 billion of pro forma liquidity to close out Q2 2026.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| DI David Izzi Brown, LISLE/CUMMINGS Inc. | 24 | $729 | $629.28 | -$99.72 | -13.68% |
Curtis Ellergodt Rothschild Investment LLC | 294 | $9,121.37 | $7,541.1 | -$1,580.27 | -17.32% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 15,211 | $454,040 | $390,162.15 | -$63,877.85 | -14.07% |
| PER Paul E. Rasmussen SIT INVESTMENT ASSOCIATES Inc. | 37,225 | $965,954.74 | $971,572.5 | $5,617.76 | 0.58% |
| ABB Alexander Bjornager Bonde Danske Bank A/S | 100 | $2,966 | $2,619.5 | -$346.5 | -11.68% |
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
Simon Yarmak Stifel | 535.22 | $16,513.86 | $13,974.68 | -$2,539.18 | -15.38% |
| Diversified REITs Industry | Real Estate Sector | Peter Mavoides CEO | NYSE Exchange | 29670E107 CUSIP |
| US Country | 56 Employees | 30 Sep 2026 Last Dividend | - Last Split | 21 Jun 2018 IPO Date |
Essential Properties Realty Trust, Inc., established in 2016 and based in Princeton, New Jersey, operates as a real estate company within the United States, focusing primarily on the acquisition, ownership, and management of single-tenant properties. As a real estate investment trust (REIT), it is designed to meet federal income tax requirements, avoiding federal corporate income taxes by distributing at least 90% of its taxable income to its stockholders. This strategic positioning allows the company to focus on serving middle-market companies across various industries, leveraging a portfolio of 1,451 properties as of December 31, 2021.