Essential Properties Realty Trust closes $400 million senior notes offering

Essential Properties Realty Trust , Inc. (NYSE:EPRT), a $6.19 billion market cap real estate investment trust with a "GREAT" financial health score according to InvestingPro, announced Thursday the closing of a public offering of $400 million in aggregate principal amount of 5.400% senior notes due 2035. The notes were issued by Essential Properties, L.P., a Delaware limited partnership and subsidiary of the company, and are fully and unconditionally guaranteed by Essential Properties Realty Trust, Inc.

According to a press release statement included in a Securities and Exchange Commission filing, the notes were sold to underwriters at 97.667% of the principal amount. The notes are senior unsecured obligations of the issuer and rank equally in right of payment with all other existing and future senior unsecured indebtedness. They are effectively subordinated to all existing and future mortgage and other secured indebtedness, as well as to all indebtedness and liabilities of the issuer’s subsidiaries and certain affiliates.

Interest on the notes will be paid at a rate of 5.400% per year, with payments scheduled for June 1 and December 1 of each year, beginning December 1, 2025. The notes are set to mature on December 1, 2035.

The issuer may redeem the notes, in whole or in part, at its option before September 1, 2035, at a price equal to the greater of 100% of the principal amount or a make-whole amount as described in the indenture, plus accrued interest. After September 1, 2035, the notes may be redeemed at 100% of the principal amount plus accrued interest, without a make-whole premium.

The indenture governing the notes includes restrictive covenants, such as requirements for the guarantor to maintain a certain percentage of unencumbered assets. The agreement also outlines events of default that could result in the acceleration of the notes’ maturity, including missed interest or principal payments, the guarantee not being in effect, and certain bankruptcy or insolvency events.

The offering was made pursuant to an effective shelf registration statement filed on June 17, 2024, and an underwriting agreement dated August 18, 2025, with Wells Fargo (NYSE:WFC) Securities, LLC and Mizuho (NYSE:MFG) Securities USA LLC as representatives of the underwriters. For investors seeking deeper insights into EPRT’s financial position and growth prospects, including its impressive 25.14% revenue growth, InvestingPro offers comprehensive analysis and additional ProTips in its detailed Research Report, available exclusively to subscribers.

All information is based on a press release statement and the company’s filing with the SEC.

In other recent news, Essential Properties Realty Trust Inc. reported its second-quarter earnings for 2025, surpassing market expectations. The company achieved earnings per share of $0.32, slightly above the forecast of $0.31, resulting in a 3.23% surprise. Additionally, revenue reached $137.06 million, exceeding the anticipated $128.23 million by 6.89%. Furthermore, Essential Properties Realty Trust has priced a $400 million offering of 5.400% senior notes due 2035. The notes were priced at 98.317% of par value with a yield to maturity of 5.62%. This marks the company’s first unsecured bond offering since June 2021. Stifel reiterated its Buy rating on the stock, maintaining a price target of $36.00. These developments reflect recent activities within the company.

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