Essential Properties Realty Trust Reports 25% Revenue Growth to $129.4 Million

Essential Properties Realty Trust, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $129.4 million for the three months ended March 31, 2025, compared to $103.5 million in the same period last year, marking an increase of 25%. The rise in revenue was primarily driven by a 23.6% increase in rental income, which amounted to $121.8 million, attributed to the expansion of the company's real estate investment portfolio, which grew by 188 properties, or 10%, since March 31, 2024. Additionally, interest income from loans and direct financing lease receivables surged by 58.8% to $7.5 million, reflecting a higher average balance of loans outstanding.

The company's net income also saw a notable increase, rising to $56.3 million from $47.1 million year-over-year. This growth was accompanied by a rise in expenses, which totaled $54.7 million, up from $42.6 million in the prior year. The increase in expenses was largely due to higher general and administrative costs, property expenses, and depreciation, which collectively rose in line with the company's expanded operations. The provision for impairment of real estate also increased, reflecting ongoing evaluations of asset performance.

In terms of strategic developments, Essential Properties Realty Trust continued to focus on expanding its portfolio through acquisitions, with a total of 2,138 properties as of March 31, 2025. The company reported that 90% of its new investments during the quarter were sale-leaseback transactions, emphasizing its strategy of acquiring properties leased to middle-market companies. The company also maintained a high occupancy rate of 99.7%, with a diversified tenant base across various industries, ensuring stability in rental income.

Looking ahead, the company expressed optimism about its growth trajectory, supported by a robust pipeline of investment opportunities and a strong balance sheet. As of March 31, 2025, the company had $47 million in cash and cash equivalents, alongside significant borrowing capacity under its revolving credit facility. The company plans to continue leveraging its operational efficiencies and strategic relationships to enhance its portfolio and maximize shareholder value. The management remains committed to maintaining a prudent balance between debt and equity financing while ensuring compliance with REIT regulations to sustain its tax-advantaged status.