Cash conversion remains strained as 2026Q1 capital expenditures of $311.0 million significantly exceed operating cash flow of $99.8 million, necessitating ongoing external capital reliance.
| Cash from Operations | 403.68M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M | 99.39M | 88.57M | 45.92M | 22.47M | 10.52M |
| Operating CF Growth % | 107.66% | 23.53% | 21.18% | 20.64% | 26.06% | 68.42% | 12.22% | 92.89% | 104.31% | 113.67% | - |
| Operating CF / Revenue % | 68.06% | 67.82% | 68.61% | 70.79% | 73.65% | 72.71% | 60.6% | 63.55% | 47.72% | 41.24% | 67.71% |
| Net Income | 256.69M | 253.73M | 203.64M | 191.41M | 134.74M | 96.21M | 42.53M | 48.02M | 20.61M | 6.3M | 3.75M |
| Depreciation & Amortization | 161.63M | 153.47M | 121.92M | 101.94M | 88.34M | 69.89M | 59.41M | 43.28M | 31.69M | 20.05M | 5.43M |
| Stock-Based Compensation | 13.38M | 13.18M | 10.83M | 9.01M | 9.49M | 5.68M | 6.08M | 6.24M | 2.44M | 841K | 0 |
| Other Non-Cash Items | -32.92M | -40.16M | -21.73M | -42.6M | -22.12M | -19.18M | -8.76M | -11.41M | -5.86M | -2.31M | 10.27M |
| Working Capital Changes | 4.19M | 852K | -6.17M | -5.19M | 564K | 16.65M | -7.82M | 2.43M | -2.41M | 1.82M | 1.93M |
| Cash from Investing | -1.24B | -1.15B | -1.12B | -857.13M | -706.08M | -829.68M | -545.51M | -607.84M | -461.86M | -464.38M | -279.13M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.69M | 48K | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | -985.77M | -616.21M | -2.13M | -519K | -275K | -293.57M |
| Sale of Investments | 115.64M | 128.56M | 96.93M | 128.6M | 126.61M | 58.38M | 82.89M | 66.77M | 60.45M | 53.63M | 16.51M |
| Other Investing | -1.36B | -1.28B | -1.22B | -985.72M | -832.69M | 97.7M | -12.19M | -672.47M | -521.79M | -517.73M | -2.08M |
| Cash from Financing | 808.38M | 798.35M | 810.7M | 580.01M | 506.8M | 689.06M | 457.79M | 524.35M | 412.75M | 449.42M | 280.53M |
| Dividends Paid | -243.72M | -233.94M | -199.66M | -168.23M | -141.69M | -112.33M | -86.47M | -63.9M | -14.07M | -101.22M | -7.54M |
| Common Dividends | -243.72M | -233.94M | -199.66M | -168.23M | -141.69M | -112.33M | -86.47M | -63.9M | -14.07M | -101.22M | -10.05M |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -9.11M | -15.97M | -4.45M | -7.04M | -8.92M | -3.69M | -2.83M | -7.96M | -188.54M | 78.14M | 290.58M |
| Net Change in Cash | -30.83M | 25.39M | -3.98M | -22.54M | 11.74M | 26.77M | 11.67M | 5.08M | -3.19M | 7.51M | 11.92M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 70.36M | 44.98M | 48.96M | 71.5M | 59.76M | 32.99M | 21.32M | 16.24M | 19.43M | 11.92M | 0 |
| Cash at End | 16.17M | 70.36M | 44.98M | 48.96M | 71.5M | 59.76M | 32.99M | 21.32M | 16.24M | 19.43M | 11.92M |
| Free Cash Flow | -151.21M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M | 99.39M | 88.57M | 44.23M | 22.43M | 10.52M |
| FCF Growth % | 53.7% | 23.53% | 21.18% | 20.64% | 26.06% | 68.42% | 12.22% | 100.25% | 97.22% | 113.22% | - |
| FCF / Revenue % | -25.5% | 67.82% | 68.61% | 70.79% | 73.65% | 72.71% | 60.6% | 63.55% | 45.96% | 41.15% | 67.71% |
Aggressive acquisition-driven cash burn
According to reported financial statements, EPRT consistently reports negative AFFO figures, yet maintains a dividend payout ratio relative to AFFO that appears mathematically inconsistent, suggesting that the company is funding distributions through capital recycling or external financing rather than recurring cash flow generated from its property portfolio.
The persistent negative AFFO figures, which reached -$207.6 million in 2026Q1, indicate that the company's recurring capital expenditures and leasing costs significantly outweigh its net operating cash flow. Investors should monitor whether this reliance on external capital to fund dividends is sustainable, as it implies that the dividend is not currently supported by the underlying property operations.
Based on the provided cash flow data, EPRT's aggressive acquisition strategy is evidenced by massive quarterly capital expenditures, such as the $311.0 million outflow in 2026Q1, which consistently dwarfs the company's operating cash flow and obscures the true maintenance requirements of the existing, aging property portfolio.
The scale of these capital outlays suggests that the company is prioritizing rapid portfolio expansion over organic cash generation. This strategy makes it difficult to isolate the true maintenance capex required to sustain the current asset base, potentially masking the long-term cost of managing a middle-market tenant portfolio.
As reported in recent SEC filings, the company's FFO consistently exceeds Net Income, with FFO/NI ratios ranging from 1.38 to 1.67, highlighting the significant impact of non-cash depreciation and amortization charges that are standard in the REIT sector but complicate the assessment of true economic earnings.
This persistent spread between FFO and Net Income suggests that the company's reported earnings are heavily influenced by accounting adjustments rather than cash-based performance. Analysts should remain cautious, as this distortion makes it challenging to determine the actual cash-generative capacity of the business without adjusting for these non-cash items.
Based on the observed financial data, the conversion of GAAP operating cash flow into distributable cash appears strained, as the company's OCF of $99.8 million in 2026Q1 is insufficient to cover the substantial capital expenditures required to maintain and grow the portfolio, leading to a reliance on external funding.
The gap between operating cash flow and the capital-intensive nature of the business model suggests that the company's cash flow quality is currently low. This dependency on external capital markets to bridge the gap between OCF and total cash requirements warrants further investigation into the company's long-term financing strategy.
Quick answers to the most common questions about buying EPRT stock.
Essential Properties Realty Trust, Inc. (EPRT) generated $381.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Essential Properties Realty Trust, Inc. (EPRT) generated $381.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Essential Properties Realty Trust, Inc. (EPRT) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Essential Properties Realty Trust, Inc. (EPRT) returned $233.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.