AlphaMadera

EPRT Essential Properties Realty Trust, Inc.

$25.37

Real Estate Investment Trust 85%

P/FFO × Diversified REIT Multiple

Moderate · Conviction

Undervalued

Trading 32.9% below fair value

You pay $25.37

Bear $31.38

Fair $37.82

Bull $44.26

Bear $31.38 +23.7% $1.88 FFO × 18x

Fair $37.82 +49.1% $1.88 FFO × 22x

Bull $44.26 +74.5% $1.88 FFO × 26x

Adjust Assumptions

P/FFO Multiple

22.1x

FFO per Share

1.88$

Key Value Driver

FFO/share ($1.88) × diversified P/FFO multiple

Terminal Value % of EV

Implied Market Multiple 13.5x

Market is pricing in (growth)

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (22 analysts) $34.46

Divergence from AlphaVal 10%

Summary

At $1.88 FFO/share with a 22x diversified REIT multiple, the base-case value is $37.82 per share. Dividend yield: 5.0%. DDM cross-check: $29.10.

Warnings

⚠ Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.

Key Risks

P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
Interest rate sensitivity: REIT multiples compress when rates rise
FFO approximation (NI + D&A) may include gains on property sales — verify