Essential Properties’ 4Q AFFO Misses Estimates; Street Stays Bullish


Essential Properties Realty Trust delivered lower-than-expected earnings and revenues in the fourth quarter. Further, the company’s 4Q AFFO (adjusted funds from operations) lagged the consensus estimates. However, the real estate investment trust maintained its AFFO guidance for 2021.

Essential Properties’ (EPRT) 4Q revenues of $41.1 million grew 4.9% year-over-year but lagged the Street’s estimates of $44.6 million. Its 4Q earnings of $0.05 per share missed the consensus estimates of $0.15 per share and came in below the year-ago period’s earnings of $0.18 per share.

The company’s AFFO also declined to $0.27 per share compared to the year-ago period’s AFFO of $0.29 per share. Analysts were looking for an AFFO of $0.28 per share.

The company’s CEO Pete Mavoides said, “95% collection rate of January 2021 rent have confirmed the stability of our portfolio, and the quality and durability of our middle market tenant base.” He added, “After completing a record level of investments in the fourth quarter, we are encouraged by the continued strength of our investment pipeline, which enabled us to introduce our 2021 AFFO guidance earlier this year.”

Essential Properties expects 2021 AFFO to be in the range of $1.22-$1.26 per share, versus analysts’ expectations of $1.25 per share. (See Essential Properties stock analysis on TipRanks)

Earlier on Feb. 16, Credit Suisse analyst Sam Choe maintained a Buy rating and a price target of $24 (2.6% upside potential) on the stock, citing the company’s strong portfolio and improving earnings outlook.

The Street has a Strong Buy consensus rating on EPRT based on 6 unanimous Buys. The average analyst price target of $23.92 implies upside potential of about 2.3% to current levels. Shares have declined by about 7% in one year.

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