HD - Essential Properties: 4 Reasons Why This REIT Continues To Outperform

2024-07-08 07:30:00 ET

Summary

• Essential Properties Realty Trust continues to outperform peers due to lower-rated (non-investment grade) tenants, longer leases, and their conservative payout ratio.
• EPRT's strong fundamentals, including a lower leveraged balance sheet at just 3.6x, support future growth efforts.
• Despite being a potential M&A target, EPRT's performance, structure, and growth potential make it a buy recommendation.
• Even with their strong performance YTD, EPRT stock still offers double-digit upside to their long-term price target of roughly $33.

Introduction

Most investors buy stocks with the thought of getting some good upside soon after. And while this is great, a lot of this has to do with our egos, let's be honest.

I love capital appreciation as much as the next investor, but it's a little more complex than buying and a stock instantly going up after. I actually don't mind suppressed share prices, as this gives me more time to accumulate shares in some of my favorite holdings....

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