Tuesday, Stifel maintained a Buy rating on Essential Properties Realty Trust (NYSE: NYSE:EPRT) and increased the price target to $27.50 from $27.00. The adjustment comes as the firm fine-tuned its 2024 estimated adjusted funds from operations (AFFO) to $1.76, a slight decrease from the previous estimate of $1.77, and altered its 2025 AFFO estimate to $1.87 from $1.88.
The analyst noted Essential Properties' recent financial activities, including last week's pricing of an upsized 10.35 million share forward equity offering at $24.75 per share. Assuming the underwriters' option is fully exercised, the offering is expected to yield net proceeds of approximately $245.9 million. The capital raised is intended to support the company's 2024 investment pipeline.
Essential Properties provided an update on its first-quarter acquisitions and capital market activities, which included the acquisition of $102.1 million in assets as of March 8, an increase from the $85 million reported on March 1. Additionally, the company has sold assets totaling $11.4 million within the same timeframe.
The company's investment pipeline is robust, with $360 million in assets under purchase agreements or letters of intent, projecting an 8.0% cash yield for the first quarter of 2024. Furthermore, Essential Properties has sold approximately 2.2 million forward shares through its at-the-market (ATM) program, anticipating gross proceeds of $53.4 million.
As for the forward equity settlements, the company has settled around 4.6 million previously issued shares for an estimated $102.6 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.