Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (September 2022)
25 slides from Essential Properties Realty Trust's investor presentation, Sep 12, 2022
Slide 1: Investor Presentation - September 2022
Investor Presentation - September 2022 Exhibit 99.1
Slide 2: Disclaimer
Investor Presentation – September 20221 Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements can be identified by the use of words such as “expec
Slide 3: Investment Highlights
Investor Presentation – September 20222 Investment Highlights • Newly Assembled Portfolio of Net Lease Properties • Long Duration Leases with Solid Unit-Level Rent Coverage • Concentrated on Service-Oriented and Experience-Based Tenants • Fungible and Smaller-Scale Single-Tenant Properties • Discipl
Slide 4: Healthy Net Lease Portfolio
Investor Presentation – September 20223 Healthy Net Lease Portfolio1 • Stable Growth Portfolio: 100% occupied with wgt. avg. embedded escalators of 1.5% per annum • Solid Coverage: Unit-level rent coverage of 4.0x with 99% of ABR required to report unit-level P&Ls • De-Minimis Near-Term Expirations:
Slide 5: Service-Oriented & Experience-Based Industries
Investor Presentation – September 20224 Service-Oriented & Experience-Based Industries Sale-Leaseback Transactions with Middle-Market Tenants Small-Scale Net Leased Properties ✓ E-commerce resistant ✓ Profit centers essential to tenant’s operations ✓ Customers must visit to receive service/experienc
Slide 6: Seek to be the Capital Provider of Choice
Investor Presentation – September 20225 Seek to be the Capital Provider of Choice Maintain Direct Relationships with Our Tenants and Actively Seek to Leverage Our Relationships to Identify New Investment Opportunities Relationship-Based Sourcing 1. Percentage of portfolio cash ABR as of June 30, 202
Slide 7: New Vintage Portfolio is Focused on Targeted Industries
Investor Presentation – September 20226 New Vintage Portfolio is Focused on Targeted Industries Our Portfolio is the Result of a Disciplined Adherence to Investing in Properties Leased to Service-Oriented and Experience-Based Businesses with Unit-Level Reporting Investment Properties (#)1 1,561 Squa
Slide 8: Top Tenant Concentration
Investor Presentation – September 20227 Top 10 Tenant Concentration Our Top 10 Tenants Operate 197 Properties and Represent 19.0% of Cash ABR Top 10 Tenants Diversification by Industry Top 10 Tenants1 Properties2 % of Cash ABR 28 3.2% 75 2.0% 16 1.8% 23 1.8% 9 1.7% 5 1.7% 17 1.7% 6 1.7% 13 1.7% 5 1.
Slide 9: Disciplined Underwriting Leading to Healthy Portfolio Metrics
Investor Presentation – September 20228 Disciplined Underwriting Leading to Healthy Portfolio Metrics 98.5% of Unit-Level Reporting Provides (Near) Real-Time Tenant Visibility Tenant Financial Reporting Requirements % of Cash ABR by Unit-Level Coverage Tranche1 Unit-Level Coverage by Lease Expiratio
Slide 10: Investment Activity
Investor Presentation – September 20229 1. Includes investments in mortgage loans receivable. 2. Cash ABR for the first full month after the investment divided by the gross investment in the property plus transaction costs. 3. GAAP rent and interest income for the first twelve months after the inves
Slide 11: Disposition Activity
Investor Presentation – September 202210 1. Includes the impact of transaction costs. 2. Gains/(losses) based on our initial purchase price. 3. Cash ABR at time of sale divided by gross sale price (excluding transaction costs) for the property. 4. Property count excludes dispositions of undeveloped
Slide 12: Lease Escalations
Investor Presentation – September 202211 1. Based on cash ABR as of June 30, 2022. 2. Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occur annually. For leases in which rent escalates by the greater of a stated fixed percentage or CPI, we have as
Slide 13: Debt Maturity Schedule
Investor Presentation – September 202212 $600 $200 $430 $400 $400 0 100 200 300 400 500 600 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 M a tu ri n g P ri n c ip a l B a la n c e ( $ m m ) Revolving Credit Facility Availability 2024 Unsecured Term Loan 2027 Unsecured Term Loan Public Unsecured
Slide 14: Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth
Investor Presentation – September 202213 Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth Strong Liquidity and Balance Sheet Capacity to Support External Growth • 100% Unsecured Balance Sheet: Asset base is 100% unencumbered with no secured debt • Flexible Debt Structure: We have no d
Slide 15: Differentiated Net Lease Investment Opportunity
Investor Presentation – September 202214 4% 4% 8% 9% 14% 15% 17% 17% 18% 22% 4.7x 4.6x 4.0x 3.3x 2.8x 2.7x 2.7x NR NR NR 77% 76% 53% 36% 34% 28% 22% 19% 18% 17% 100% 100% 93% 71% 64% 47% 47% 40% 28% 15% FCPT GTY EPRT NNN STOR SRC O BNL ADC NTST Differentiated Net Lease Investment Opportunity Portfol
Slide 16: AFFO per Share Multiples and Growth vs Peers
Investor Presentation – September 202215 8.7% 5.5% 4.7% 4.5% 3.6% 3.2% 3.1% 2.9% 2.8% 1.7% 22.7% 13.7% 10.7% 9.9% 9.5% 8.6% 7.8% 7.0% 6.0% 5.5% 18.6x 16.6x 15.8x 15.6x 14.0x 13.9x 13.7x 13.6x 11.9x 11.3x Source: Public filings, FactSet and SNL. Note: Market data as of September 9, 2022. 1. 2022E AFF
Slide 17: 2Q'22 Financials
+ 2Q’22 Financials
Slide 18: Financial Summary – 2Q'22
Investor Presentation – September 202217 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $159, $62, $315 and $231 for the three and six months ended June 30, 2022 and 2021, respectively. 2. Includes reimbursable income from the Company’s tena
Slide 19: Funds from Operations (FFO) and AFFO
Investor Presentation – September 202218 1. During the six months ended June 30, 2022, includes debt extinguishment costs associated with the Company's restructuring of its credit and term loan facilities and, during the three and six months ended June 30, 2021, includes debt extinguishment costs as
Slide 20: Consolidated Balance Sheets
Investor Presentation – September 202219 Financial Summary – 2Q’22 Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2022 December 31, 2021 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 1,124,147 $ 1,004,154
Slide 21: GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI
Investor Presentation – September 202220 Financial Summary – 2Q’22 GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics 1. These adjustments are made to reflect EBITDAre, NOI and Cash NOI as if all re-leasing activity, investments in and dispositions of real estate mad
Slide 22: Market Capitalization, Debt Summary and Leverage Metrics
Investor Presentation – September 202221 Financial Summary – 2Q’22 Market Capitalization, Debt Summary and Leverage Metrics 1. Our revolving credit facility provides a maximum aggregate initial original principal amount of up to $600 million and includes an accordion feature to increase, subject to
Slide 23: Glossary
Investor Presentation – September 202222 Glossary Supplemental Reporting Measures FFO, Core FFO and AFFO Our reported results are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We also disclose funds from operations (“FFO”), core funds from operations (“Core FFO
Slide 24: Glossary
Investor Presentation – September 202223 Glossary Supplemental Reporting Measures We also present our earnings before interest, taxes and depreciation and amortization for real estate (“EBITDA”), EBITDA further adjusted to exclude gains (or losses) on sales of depreciable property and real estate im
Slide 25: Glossary
Investor Presentation – September 202224 Glossary Supplemental Reporting Measures Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI We further adjust EBITDAre, NOI and Cash NOI i) based on an estimate calculated as if all re-leasing, investment and disposition activity that took place during the
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