Essential Properties: Emerging Tenant Woes In Net Lease
Portfolio Pulse from
Essential Properties Realty Trust (EPRT) is facing challenges due to rising interest rates and inflation affecting commercial real estate, particularly net lease REITs. Despite outperforming peers with a sale-leaseback model, EPRT's reliance on tenants with lower creditworthiness poses risks.
January 24, 2025 | 10:15 am
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Essential Properties Realty Trust (EPRT) is experiencing share price declines due to rising treasury yields. The company's reliance on tenants with lower creditworthiness increases risk, despite its strong sale-leaseback model.
EPRT's share price is declining due to rising treasury yields, which affect valuations in the net lease REIT sector. The company's strategy of relying on tenants with lower creditworthiness adds risk, making it more vulnerable compared to peers with investment-grade portfolios.
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