Despite positive FFO of $120.6M in 2026Q2, AFFO turned deeply negative at -$90.8M, and capital expenditures of $211.5M far exceeded FFO, signaling potential strain on distributable cash flow.
Essential Properties Realty Trust, Inc. (EPRT) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | 414.07M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M | 99.39M | 88.57M | 45.92M | 22.47M | 10.52M |
| Operating CF Growth % | 95.1% | 23.53% | 21.18% | 20.64% | 26.06% | 68.42% | 12.22% | 92.89% | 104.31% | 113.67% | - |
| Operating CF / Revenue % | 62.36% | 67.82% | 68.61% | 70.79% | 73.65% | 72.71% | 60.6% | 63.55% | 47.72% | 41.24% | 67.71% |
| Net Income | 267.96M | 253.73M | 203.64M | 191.41M | 134.74M | 96.21M | 42.53M | 48.02M | 20.61M | 6.3M | 3.75M |
| Depreciation & Amortization | 169.21M | 153.47M | 121.92M | 101.94M | 88.34M | 69.89M | 59.41M | 43.28M | 31.69M | 20.05M | 5.43M |
| Stock-Based Compensation | 13.35M | 13.18M | 10.83M | 9.01M | 9.49M | 5.68M | 6.08M | 6.24M | 2.44M | 841K | 0 |
| Other Non-Cash Items | -32.93M | -40.16M | -21.73M | -42.6M | -22.12M | -19.18M | -8.76M | -11.41M | -5.86M | -2.31M | 10.27M |
| Working Capital Changes | -4.07M | 852K | -6.17M | -5.19M | 564K | 16.65M | -7.82M | 2.43M | -2.41M | 1.82M | 1.93M |
| Cash from Investing | -1.17B | -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 | -83.5M | 0 | 0 | 0 | 0 | -985.77M | -616.21M | -2.13M | -519K | -275K | -293.57M |
| Sale of Investments | 151.16M | 128.56M | 96.93M | 128.6M | 126.61M | 58.38M | 82.89M | 66.77M | 60.45M | 53.63M | 16.51M |
| Other Investing | -1.03B | -1.28B | -1.22B | -985.72M | -832.69M | 97.7M | -12.19M | -672.47M | -521.79M | -517.73M | -2.08M |
| Cash from Financing | 868.39M | 798.35M | 810.7M | 580.01M | 506.8M | 689.06M | 457.79M | 524.35M | 412.75M | 449.42M | 280.53M |
| Dividends Paid | -252.64M | -233.94M | -199.66M | -168.23M | -141.69M | -112.33M | -86.47M | -63.9M | -14.07M | -101.22M | -7.54M |
| Common Dividends | -252.64M | -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 | -9.51M | -15.97M | -4.45M | -7.04M | -8.92M | -3.69M | -2.83M | -7.96M | -188.54M | 78.14M | 290.58M |
| Net Change in Cash | 113.16M | 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 | 16.17M | 44.98M | 48.96M | 71.5M | 59.76M | 32.99M | 21.32M | 16.24M | 19.43M | 11.92M | 0 |
| Cash at End | 134.23M | 70.36M | 44.98M | 48.96M | 71.5M | 59.76M | 32.99M | 21.32M | 16.24M | 19.43M | 11.92M |
| Free Cash Flow | -140.82M | 381.08M | 308.48M | 254.57M | 211.02M | 167.39M | 99.39M | 88.57M | 44.23M | 22.43M | 10.52M |
| FCF Growth % | -182.77% | 23.53% | 21.18% | 20.64% | 26.06% | 68.42% | 12.22% | 100.25% | 97.22% | 113.22% | - |
| FCF / Revenue % | -21.21% | 67.82% | 68.61% | 70.79% | 73.65% | 72.71% | 60.6% | 63.55% | 45.96% | 41.15% | 67.71% |
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.
Key Metrics
Top Statement Risk
Interest rate spread compression
Metrics are mathematically derived from official filings.
AFFO Deficits Threaten Dividend Coverage
Despite positive FFO, EPRT's AFFO turned deeply negative, reaching -$90.8M in 2026Q2, as per financial statements, implying dividends are not covered by true distributable cash flow.
The reported AFFO figures, which subtract recurring capex like tenant improvements and leasing commissions, have been consistently negative over the past year, with 2026Q2 at -$90.8M. This suggests that the company's dividend payments, totaling $67.6M in the same quarter, are being funded through external sources or cash reserves rather than internally generated cash flow. Investors should monitor whether this trend persists, as it may indicate a structural shortfall in cash available for distribution.
Heavy Capex Outlays Outpace FFO
Capital expenditures surged to $211.5M in 2026Q2, as reported in SEC filings, far exceeding FFO of $120.6M, indicating aggressive reinvestment that may strain near-term liquidity.
The magnitude of capex, which includes acquisitions and development, has consistently exceeded FFO, with 2026Q1 reaching $311.0M. This suggests that EPRT is prioritizing portfolio growth over immediate cash generation, likely to enhance long-term earnings. However, the negative AFFO implies that a significant portion of this capex is not immediately income-producing, warranting scrutiny of the yield on these investments.
External Capital Fuels Expansion
With AFFO negative and dividends exceeding operating cash flow, EPRT appears reliant on external funding, as evidenced by a low debt/equity ratio of 0.60, per balance sheet data, suggesting recent equity issuance.
The company's ability to fund large capex and dividends despite negative AFFO points to reliance on capital markets. The unusually low debt/equity ratio may indicate a recent equity raise, which could dilute shareholders if not accretive. Investors should assess the cost of this capital relative to acquisition yields to ensure value creation.
Depreciation Masks Cash Generation
GAAP net income of $74.5M in 2026Q2 understates cash generation, as FFO of $120.6M, per financial statements, reveals a 1.48x coverage, highlighting depreciation's distortionary effect.
The consistent FFO/net income ratio above 1.4 indicates that depreciation is a significant non-cash charge, making GAAP earnings a poor proxy for cash flow. This underscores the importance of FFO and AFFO in evaluating EPRT's performance. However, the negative AFFO suggests that other non-cash adjustments, such as straight-line rent, may be inflating FFO relative to actual cash available.
Negative AFFO Hides True Cash Needs
Despite positive FFO, AFFO has been negative for five consecutive quarters, reaching -$90.8M in 2026Q2, as reported, suggesting that capitalized maintenance costs and tenant improvements are consuming cash beyond reported earnings.
The persistent gap between FFO and AFFO indicates that EPRT is incurring substantial recurring capex that is not captured in FFO. This may include tenant improvements and leasing commissions necessary to maintain lease renewals, which are essential for sustaining occupancy. The negative AFFO raises questions about the sustainability of the dividend and the true cost of maintaining the portfolio.