The article compares Realty Income and Essential Properties (EPRT), two net lease REITs, to determine which offers better long-term value. It highlights EPRT's superior total returns over five years and the defensive characteristics of net lease REITs.

Real estate stocks rose as a strong start to the quarterly earnings season boosted optimism, with 67% of S&P 500 real estate companies beating earnings estimates and 83% surpassing revenue forecasts. Key companies like Digital Realty and Weyerhaeuser reported strong results, while mergers and strategic partnerships drove market movements.

Essential Properties Realty received a Buy rating from analyst Ki Bin Kim of Truist Financial, with a $36.00 price target. The company reported slightly lower-than-expected AFFO per share for Q2 but raised full-year guidance, reflecting an 8% year-over-year growth rate. Its acquisition strategy, including $334 million in high-yield deals, and resilient credit metrics, including improved tenant coverage ratios, support the rating.

Essential Properties EPRT has outperformed the market over the past 5 years with an annualized return of 2.05% and an average annual return of 15.99%. The company currently has a market capitalization of $6.13 billion, and a $100 investment in EPRT stock five years ago would now be worth $208.82. The article emphasizes the impact of compounded returns on long-term investment growth.

Proterra Investment Partners LP has launched a Net Lease Real Estate strategy, focusing on food, beverage, and agribusiness sectors with a defensive cash yield approach. Led by David Kay, a former VEREIT CEO, the strategy leverages sale-leaseback investments and the firm's established relationships in the food value chain. Proterra, based in Minneapolis, operates globally with offices in Shanghai, Singapore, and Sydney.