EPRT Earnings Prediction
The chart below shows how EPRT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EPRT sees a -1.13% change in stock price 10 days leading up to the earnings, and a +1.03% change 10 days following the report. On the earnings day itself, the stock moves by -0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
EPRT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
117.13M
27.79%
7.20%
Gross Margin
72.12%
3.04%
0.80%
Operating Margin
64.75%
4.17%
1.84%
Net Margin
42.08%
-16.31%
-11.02%
EPS
0.27
-6.90%
-6.90%
No Data Available
EPRT Earnings Analysis
Essential Properties Realty Trust, Inc. Corporation (EPRT.N) Earnings Conference Call
Positive
AFFO Growth Increase: 1. Strong AFFO Growth: The company reported an AFFO per share of $0.43 for Q3 2024, marking a 2% increase compared to Q3 2023, and a total AFFO of $77.9 million, which is up 17% year-over-year.
Investment Activity Overview: 2. High Investment Activity: Essential Properties invested $308 million through 37 transactions in Q3 2024, achieving a weighted average cash yield of 8.1%, which is an increase of 50 basis points from the previous year.
Strong Tenant Stability: 3. Robust Portfolio Performance: The company ended the quarter with 2,053 properties that were 99.9% leased, with a weighted average lease term of 14.1 years, indicating strong tenant stability and long-term cash flow.
Tenant Profitability Ratio: 4. Healthy Tenant Coverage: The weighted average unit level rent coverage ratio was 3.6x, reflecting strong profitability among tenants at the unit level, which supports the sustainability of rental income.
Strong Liquidity Position: 5. Solid Liquidity Position: The company maintained a liquidity of $1.2 billion and a pro forma leverage of 3.5x, positioning it well for future growth and investment opportunities.
Negative
AFFO Per Share Decline: 1. Decreased AFFO per Share: The AFFO per share for Q3 2024 was $0.43, which, while a 2% increase year-over-year, reflects only a modest growth rate compared to previous quarters, indicating potential stagnation in earnings growth.
Equity Dilution Impact: 2. Increased Dilution from Equity Issuance: The company faced a headwind of approximately $0.01 to AFFO per share due to the treasury stock method related to unsettled forward equity, with an estimated total dilution reaching $0.02 for the full year 2024.
Tenant Profitability Risk: 3. Tenant Coverage Ratio Decline: The weighted average unit level rent coverage ratio decreased to 3.6x from previous levels, indicating a decline in tenant profitability and potential risk in the portfolio.
Rising General & Administrative Costs: 4. High G&A Expenses: Total G&A expenses increased to $28 million to $31 million for 2025, reflecting a rise in operational costs that could impact profitability if not managed effectively.
Conservative Acquisition Outlook: 5. Reduced Acquisition Guidance: The company provided a conservative acquisition guidance of $250 million per quarter moving forward, down from previous levels, indicating a potential slowdown in growth and investment activity.
EPRT FAQs
How does EPRT typically perform around its earnings report dates?
Is Essential Properties Realty Trust, Inc. (EPRT) Q3 2024 Earnings Call Summary positive or negative?
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EPRT Earning Call Sentiment
Essential Properties Realty Trust, Inc. (EPRT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
EPRT.N
0.52%Positive
The earnings call summary indicates strong financial performance with a 17% increase in total AFFO and a 2% increase in AFFO per share. The company has a robust liquidity position and a positive growth outlook, with expectations to reach $6 billion in assets. The shareholder return plan is favorable with a healthy dividend payout ratio and a share repurchase program. The Q&A session did not reveal significant negative sentiment, and management's optimistic guidance suggests potential stock price appreciation. Considering the company's market cap, a positive stock price movement (2% to 8%) is anticipated.
