moderate - While service-oriented tenants (restaurants, car washes, childcare) have some recession exposure, the focus on value-oriented quick-service restaurants and non-discretionary services provides downside protection versus traditional retail. Consumer spending weakness impacts tenant sales volumes and ability to pay rent, but long-term lease structures and diversification across 1,900+ properties mitigate single-tenant risk. Historical rent collection remained above 95% even during 2020 disruptions.

Rising interest rates create multiple headwinds: (1) higher cost of debt for acquisitions compresses cap rate spreads and investment returns, (2) REIT valuations compress as dividend yields become less attractive versus risk-free rates, and (3) mortgage rate increases reduce consumer spending at tenant locations. The company's 0.61 debt-to-equity ratio and need for continuous capital market access amplify rate sensitivity. Conversely, falling rates expand acquisition economics and improve valuation multiples.

dividend - EPRT appeals to income-focused investors seeking 4-5% dividend yields with modest growth potential (5-7% annual FFO growth target). The net-lease model provides predictable cash flows and quarterly dividend stability. Value investors may find appeal during REIT selloffs when yield spreads widen versus Treasuries. Limited appeal to pure growth investors given capital-intensive, acquisition-dependent growth model.