EPRTMEDIUM SIGNALOPPORTUNITY10-K

EPRT demonstrated strong portfolio expansion with 196 new properties and 20.5% growth in annualized base rent, while improving tenant concentration risk and extending lease terms.

The company successfully scaled its real estate portfolio by nearly 10% while maintaining 99.7% occupancy and reducing maximum tenant concentration from 4.2% to 3.4% of base rent. The enhanced financial reporting requirements for substantially all tenants (versus previous "some instances") indicates improved risk monitoring capabilities as the portfolio grows.

Comparing 2026-02-11 vs 2025-02-12View on EDGAR →
FINANCIAL ANALYSIS

EPRT delivered robust growth across all key metrics with revenue increasing 24.8% to $561.2M and operating income rising 29.4% to $359.9M, demonstrating strong operational leverage. The company successfully funded expansion through increased debt (18.8% growth to $2.5B) while maintaining healthy cash flow growth of 23.5% and building cash reserves 47.8% higher. The reversal of credit loss provisions from $830K to a $204K recovery signals improving tenant credit quality despite the significant portfolio expansion.

FINANCIAL STATEMENT CHANGES
Provision for Credit Losses
P&L
-124.6%
$830K→-$204K

Provisions reduced 124.6% — improving credit quality or reserve release boosting reported earnings.

Cash & Equivalents
Balance Sheet
+47.8%
$40.7M→$60.2M

Cash position surged 47.8% — strong cash generation or capital raise providing significant financial cushion.

Interest Expense
P&L
+30.3%
$40.4M→$52.6M

Interest expense surged 30.3% — significant debt increase or rising rates materially impacting earnings.

Operating Income
P&L
+29.4%
$278.2M→$359.9M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Revenue
P&L
+24.8%
$449.6M→$561.2M

Revenue growing 24.8% — solid top-line momentum, watch margins for quality of growth.

Net Income
P&L
+24.6%
$203.0M→$253.0M

Net income grew 24.6% — bottom-line growth signals improving overall business health.

Operating Cash Flow
Cash Flow
+23.5%
$308.5M→$381.1M

Operating cash flow grew 23.5% — strong conversion of earnings to cash, healthy business fundamentals.

Total Liabilities
Balance Sheet
+19.2%
$2.2B→$2.7B

Liabilities increased 19.2% — monitor debt-to-equity ratio and interest coverage.

Total Debt
Balance Sheet
+18.8%
$2.1B→$2.5B

Debt rose 18.8% — additional borrowing for investment or operations; monitor coverage ratios.

Total Assets
Balance Sheet
+18.4%
$5.8B→$6.9B

Asset base grew 18.4% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-11
PRIOR — 2025-02-12
ADDED
Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 7A.
As of December 31, 2025, 91.5% of our total annualized base rent of $555.0 million was attributable to properties operated by tenants in service-oriented and experience-based businesses.
As of December 31, 2025, our portfolio consisted of 2,300 properties, inclusive of one undeveloped land parcel and 150 properties which secure our investments in mortgage loans receivable.
As of December 31, 2025, our portfolio was 99.7% occupied by tenants operating 659 different concepts (i.e., brands) across 48 states, with none of our tenants contributing more than 3.4% of our annualized base rent.
As of December 31, 2025, our leases had a weighted average remaining lease term of 14.4 years (based on annualized base rent), with only 5.2% of our annualized base rent attributable to leases expiring prior to January 1, 2031.
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REMOVED
Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Item 7A.
As of December 31, 2024, 93.2% of our total annualized base rent of $460.6 million was attributable to properties operated by tenants in service-oriented and experience-based businesses.
As of December 31, 2024, our portfolio consisted of 2,104 properties, inclusive of 150 properties which secure our investments in mortgage loans receivable.
As of December 31, 2024, our portfolio was 99.7% occupied by 413 tenants operating 592 different concepts (i.e., generally brands) in 16 industries across 49 states, with none of our tenants contributing more than 4.2% of our annualized base rent.
As of December 31, 2024, our leases had a weighted average remaining lease term of 14.0 years (based on annualized base rent), with only 5.8% of our annualized base rent attributable to leases expiring prior to January 1, 2030.
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