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Sep 30, 2025
Essential Properties Q3 2025 Earnings Report
Essential Properties reported strong third quarter results with solid growth in net income and AFFO.
Key Takeaways
Essential Properties delivered a robust Q3 2025, driven by higher rental and interest revenue, a 22% increase in net income per share, and a 12% rise in AFFO per share. Investment activity remained strong, with $369.8 million deployed across 87 properties, and the company raised its 2025 AFFO guidance.
Q3 net income reached $65.6 million, up from $49.1 million in Q3 2024.
AFFO per share increased 12% year-over-year to $0.48.
Invested $369.8 million in 87 properties during the quarter at an 8.0% cash cap rate.
Increased 2025 AFFO guidance to a range of $1.87 to $1.89 per share.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Essential Properties raised its 2025 AFFO guidance and issued 2026 AFFO guidance, reflecting confidence in continued investment activity and tenant performance.
Positive Outlook
- Raised 2025 AFFO guidance to $1.87–$1.89 per share.
- Issued 2026 AFFO guidance of $1.98–$2.04 per share.
- Expected investment volume of $1.2–$1.4 billion in 2025.
- Tenant credit performance exceeded expectations.
- Achieved record 10.0% GAAP cap rate on new investments.
Challenges Ahead
- AFFO guidance does not include GAAP net income outlook due to unpredictability of certain non-cash items.
- Uncertainty remains around potential impairments and credit losses.
- High reliance on sale-leaseback model (97%) may concentrate risk.
- Rising interest expenses could pressure margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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