Question · Q4 2025
Ryan Caviolla noted the record-high average investment per unit this quarter and asked if it was due to acquisition mix or an increased appetite for larger assets. He also requested details on the tenant credit assumptions included in the 2026 guidance, including any industry-specific color.
Answer
Pete Mavoides, President and CEO, attributed the higher average investment per unit to transaction and industry mix, with sectors like early childhood education and industrial outdoor storage having higher price points. He clarified it's not a change in underwriting or risk appetite. Regarding tenant credit, he stated they don't guide to specific losses but use a conservative approach, analyzing specific situations and making generic assumptions for unknown events, with scenarios supporting guidance typically more conservative than their historical 30 basis points credit loss.
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