EPRTMEDIUM SIGNALOPPORTUNITY10-K

EPRT executed significant portfolio expansion with 196 new properties while improving tenant concentration risk and maintaining strong occupancy metrics.

The company grew its portfolio from 2,104 to 2,300 properties while reducing maximum tenant concentration from 4.2% to 3.4% of annualized base rent, demonstrating effective diversification strategy. The expansion came with extended weighted average lease terms (14.0 to 14.4 years) and maintained near-perfect 99.7% occupancy, indicating disciplined growth execution in quality assets.

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

EPRT delivered solid growth across key metrics with revenue expanding 24.8% to $561.2M and operating income growing 29.4% to $359.9M, supported by the portfolio expansion. Total assets increased 18.4% to $6.9B while debt grew proportionally at 18.8% to $2.5B, maintaining reasonable leverage ratios. Operating cash flow grew 23.5% to $381.1M, demonstrating the cash-generative nature of the expanded real estate portfolio, though interest expense increased 30.3% reflecting higher debt levels and potentially rising rates.

FINANCIAL STATEMENT CHANGES
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.

Stockholders Equity
Balance Sheet
+17.9%
$3.6B→$4.2B

Equity base grew 17.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

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.
Among the benefits of the sale-leaseback structure is the use of a standard lease form that we structured, with terms we believe are favorable to us, including, for substantially all our investments, the requirement for the lessee/operator to provide us with unit-level and corporate-level financial statements, typically on a quarterly basis in arrears.
For the year ended December 31, 2025, 95% of our investments (weighted by annualized base rent) were through the sale-leaseback structure.
As of December 31, 2025, 66.8% of our annualized base rent was attributable to master leases.
For the year ended December 31, 2025, 73% of our investments (weighted by annualized base rent) were in a master lease structure.
As of December 31, 2025, 97.9% of our leases (based on annualized base rent) provided for increases in future base rent at a weighted average rate of 1.8% per year.
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.
Among the benefits of the sale-leaseback structure is the use of a standard lease form that we structured, with terms we believe are favorable to us, including the requirement for the lessee/operator to provide us with unit-level and, in some instances, corporate-level financial statements on a quarterly basis, in arrears.
For the year ended December 31, 2024, 97.2% of our investments (weighted by annualized base rent) were through the sale-leaseback structure.
As of December 31, 2024, 66.1% of our annualized base rent was attributable to master leases.
For the year ended December 31, 2024, 71% of our investments (weighted by annualized base rent) were in a master lease structure.
As of December 31, 2024, 98.4% of our leases (based on annualized base rent) provided for increases in future base rent at a weighted average rate of 1.7% per year.
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