Essential Properties Realty Trust Q1 Earnings: Letting Fundamentals Catch Up To The Valuation

REITer's Digest4.44K FollowersFollow5ShareSavePlay(12min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryEPRT has delivered sector-leading growth, with Q1 revenue up 23% and AFFO per share up 11%. EPRT’s aggressive external growth, funded by equity issuance, has led to a low leverage ratio but limits near-term share price upside. Trading at 15.8x AFFO, EPRT’s premium valuation reflects past outperformance, but future upside appears constrained as growth tailwinds fade. I assign EPRT a Hold rating, citing unique risk factors from its sale-leaseback model and tenant credit profile. gabetcarlson/iStock via Getty Images Today, we venture back to the world of net lease real estate, the core of REITer’s Digest. Recently, we have discussed the re-emergence of net lease as interest begins to return to long leased assets. The stable cash flows backedThis article was written byREITer's Digest4.44K FollowersFollowREITer's DigestAnalyst’s Disclosure: I/we have a beneficial long position in the shares of EPRT, ADC, O either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.