ESSENTIAL PROPERTIES REALTY TRUST, INC. has recently released its 10-K report, providing an in-depth look at the company's financial performance for the year ended December 31, 2025. Essential Properties Realty Trust, Inc. is a real estate company that focuses on acquiring, owning, and managing single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, medical and dental services, and convenience stores on a long-term basis. As of December 31, 2021, the company had a portfolio of 1,451 properties and qualifies as a real estate investment trust for federal income tax purposes.
In the 10-K report, under "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Comparison of the years ended December 31, 2024 and 2023," Essential Properties Realty Trust, Inc. reported the following key financial figures for the year ended December 31, 2025:
- Revenues: The company's rental revenue increased by $101.8 million compared to the previous year, primarily driven by the growth in the size of its real estate investment portfolio, which grew from 1,947 rental properties to 2,142 rental properties during the same period.
- Interest on Loans and Direct Financing Lease Receivables: Interest on loans and direct financing lease receivables increased by $8.2 million due to an increase in investments in loans receivable during 2025, leading to a higher average daily balance of loans receivable outstanding.
- Other Revenue: Other revenue increased by $1.6 million primarily due to the receipt of non-recurring lease termination fees during the year ended December 31, 2025.
Expenses also saw notable changes: General and Administrative Expenses: General and administrative expense increased by $5.7 million, primarily related to an increase in salary expense and professional fees incurred during the year ended December 31, 2025. Property Expenses: Property expenses increased by $2.6 million, primarily due to increased reimbursable property taxes and property-related operational costs. * Depreciation and Amortization: Depreciation and amortization expense increased by $31.4 million, in proportion to the increase in the size of the real estate investment portfolio during the year ended December 31, 2025.
The company also provided non-GAAP financial measures, including funds from operations (FFO), core funds from operations (Core FFO), adjusted funds from operations (AFFO), earnings before interest, taxes, depreciation and amortization (EBITDA), and EBITDA further adjusted to exclude gains (or losses) on sales of depreciable property and real estate impairment losses (EBITDAre). These measures are used to compare the operating performance of REITs and provide additional insight into the company's financial performance. For the year ended December 31, 2025, the company reported FFO attributable to stockholders and non-controlling interests of $406.3 million and Core FFO attributable to stockholders and non-controlling interests of $403.9 million.
The reconciliation of net income to FFO, Core FFO, and AFFO, as well as the reconciliation of net income to EBITDA and EBITDAre, were also included in the 10-K report, providing a comprehensive overview of the company's financial performance and operations.
These figures and measures provide a detailed insight into Essential Properties Realty Trust, Inc.'s financial performance and operational activities for the year 2025, showcasing the company's growth and financial stability in the real estate market. The market has reacted to these announcements by moving the company's shares 0.95% to a price of $30.83. Check out the company's full 10-K submission here.
