Essential Properties Realty Completes $400M Senior Notes Offering, Strengthens Capital Structure

Essential Properties Realty Trust closed a $400M public offering of 5.400% Senior Notes due 2035, guaranteed by its parent company. This strategic financial move is expected to strengthen the company's capital structure and provide stakeholders with a secure investment opportunity. Analysts rate the stock as a Buy with a $36.00 price target.

Essential Properties Realty Trust, Inc. (NYSE: EPRT) has successfully closed a $400 million public offering of 5.400% Senior Notes due 2035. The notes, priced at 98.317% of their principal amount, will mature on December 1, 2035. The offering is expected to settle on August 21, 2025, subject to customary closing conditions. The notes are fully and unconditionally guaranteed by the Company [1].

The proceeds from the offering will be used to repay amounts outstanding under the Operating Partnership's revolving credit facility and for general corporate purposes, including funding future investment activity. Wells Fargo Securities, Mizuho, BMO Capital Markets, BofA Securities, Capital One Securities, TD Securities, and Truist Securities are acting as joint book-running managers for the offering. Barclays, BNP PARIBAS, Citigroup, Citizens Capital Markets, Goldman Sachs & Co. LLC, Huntington Capital Markets, Morgan Stanley, Regions Securities LLC, Scotiabank, Stifel, and Wolfe Capital Markets and Advisory are acting as co-managers [1].

Essential Properties Realty Trust is an internally managed real estate investment trust that acquires, owns, and manages primarily single-tenant properties that are net leased on a long-term basis to companies operating service-oriented or experience-based businesses. As of June 30, 2025, the Company’s portfolio consisted of 2,190 freestanding net lease properties with a weighted average lease term of 14.3 years and a weighted average rent coverage ratio of 3.4x. In addition, as of June 30, 2025, the Company’s portfolio was 99.6% leased to tenants operating 606 different concepts across 48 states [1].

Analysts have rated the stock as a Buy with a $36.00 price target, reflecting confidence in the company's strategic financial move. The offering is expected to strengthen the company's capital structure and provide stakeholders with a secure investment opportunity [2].

References:
[1] https://www.ainvest.com/news/essential-properties-realty-trust-announces-400-million-5-400-senior-notes-offering-2508/
[2] https://www.businesswire.com/news/home/20250318837896/en/Essential-Properties-Realty-Trust-Inc.-Announces-Pricing-of-Upsized-Public-Offering-of-Common-Stock