# Essential Properties Q3 2026 Earnings Report

> Essential Properties raises 2027 guidance with strong portfolio performance and strategic debt prepayment.
- Title: Essential Properties Q3 2026 Earnings Report · The Motley Fool
- Summary: Essential Properties raises 2027 guidance with strong portfolio performance and strategic debt prepayment. Essential Properties increased 2027 AFFO guidance…
- Keywords: essential properties, eprt, affo, q3 2026, debt prepayment, 2027 guidance, real estate, reit, finance, money, Essential, Properties
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/22/essential-properties-eprt-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-22T16:54:10+00:00
- Read time: 1 min
- Topics: essential properties, eprt, affo, q3 2026, debt prepayment, 2027 guidance, real estate, reit, finance, money
## Q3 2026 Results
Net income fell 18% to $60.7 million as interest expense and asset impairments increased.
## AFFO Performance
AFFO rose 6% to $111.9 million with 99.6% portfolio occupancy.
## Investment Activity
Invested $342.2 million across 100 properties with 91% from sale-leasebacks.
## Yield Metrics
7.7% average initial cash yield and 9.4% average GAAP yield for new acquisitions.
## Portfolio Health
99.6% occupancy with only 11 vacant properties in 2,580-property portfolio.
## Lease Terms
Weighted average lease term of 14.2 years with new investments at 17.9 years.
## Rent Coverage
3.5x unit-level rent coverage with 1.4% same-store rent growth.
## 2026 Guidance
Raised AFFO to $2.02-$2.05 per share and investment volume to $1.3-$1.5 billion.
## 2027 Guidance
Set AFFO at $2.10-$2.18 per share with $1 billion-$1.5 billion investment volume.
## Debt Management
Prepaid $430 million term loan maturing in 2027 leaving no debt until 2028.
## Liquidity
Maintained $1.3 billion liquidity with $809m revolver capacity and $483m unsettled equity.
## Dispositions
Sold 11 properties for $17.9 million at 6.1% weighted average cash cap rate.
## Tenant Concentration
Top 10 tenants represent 15.2% of ABR with top 20 at 25.1%.
## Pro Forma Leverage
Maintained 3.8x net debt to annualized adjusted EBITDAre.
## Capital Deployment
91% of quarterly investment volume from sale-leaseback transactions.
## 2027 Funding Plan
2027 funding fully covered by existing sources without external capital.
## Key takeaway

Essential Properties increased 2027 AFFO guidance to $2.10-$2.18 per share while prepaying $430m debt to eliminate 2027 maturities.