Essential Properties Realty Trust, Inc. · NYSE:EPRT

Essential Properties Realty Trust — Q2 2024 Earnings Presentation

18 slides from Essential Properties Realty Trust's earnings presentation, Jul 25, 2024

  1. Slide 1: Supplemental Information Second Quarter 2024

    Supplemental Information Second Quarter 2024 0 Supplemental Information | As of June 30, 2024

  2. Slide 2: Table of Contents

    Table of Contents Financial Summary Consolidated Statements of Operations 2 Funds from Operations and Adjusted Funds from Operations 3 Consolidated Balance Sheets 4 GAAP Reconciliations to EBITDAre, GAAP NOI and Cash NOI 5 Market Capitalization, Debt Summary and Leverage Metrics 6 Net Investment Act

  3. Slide 3: Consolidated Statements of Operations

    Financial Summary Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Rental revenue1,2 $ 104,369 $ 81,819 $ 202,880 $ 159,991 Interes

  4. Slide 4: Funds from Operations and Adjusted Funds from Operations

    Financial Summary Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) Three Months Ended June 30, Six Months Ended June 30, (unaudited, in thousands except per share amounts) 2024 2023 2024 2023 Net income $ 51,676 $ 53,000 $ 98,798 $ 96,056 Depreciation and amortization of real es

  5. Slide 5: Consolidated Balance Sheets

    Financial Summary Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2024 December 31, 2023 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 1,730,117 $ 1,542,302 Building and improvements 3,162,052 2,938,012 Lea

  6. Slide 6: GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Run Rate Metrics

    Financial Summary GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics Three Months Ended (unaudited, in thousands) June 30, 2024 Net income $ 51,676 Depreciation and amortization 29,927 Interest expense 17,361 Interest income (847) Income tax expense 155 EBITDA 98,272

  7. Slide 7: Market Capitalization, Debt Summary and Leverage Metrics

    Financial Summary Market Capitalization, Debt Summary and Leverage Metrics (dollars in thousands, except share and per share amounts) June 30, 2024 Rate Wtd. Avg. Maturity Unsecured debt: February 2027 term loan1 $ 430,000 2.4% 2.6 years January 2028 term loan1 400,000 4.6% 3.6 years February 2029 t

  8. Slide 8: Investment Summary

    Net Investment Activity Investment Summary $360,000 $328,370 $333,910 $314,865 $320,000 $277,361 Activity ($000s) $280,000 $248,770 Investment $240,000 $207,147 $213,327 $195,454 $200,000 $160,000 $120,000 $80,000 $40,000 $0 Investments1 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 Number of Tran

  9. Slide 9: Disposition Summary

    Net Investment Activity Disposition Summary $80,000 $75,522 Activity ($000s)1 $70,000 Disposition $60,000 $50,000 $41,736 $35,513 $37,161 $40,000 $30,602 $28,496 $30,000 $20,000 $11,949 $10,000 $4,783 $0 Dispositions 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 Realized Gain/(Loss)1,2 11.1% 7.2%

  10. Slide 10: Portfolio Highlights

    Portfolio Summary Portfolio Highlights As of June 30, 2024 Investment Properties (#)1 2,009 Square Footage (mm) 20.1 Tenants (#) 395 Concepts (#) 568 Industries (#) 16 States (#) 49 Weighted Average Remaining Lease Term (Years) 14.1 Triple-Net Leases (% of Cash ABR) 96.4% Master Leases (% of Cash AB

  11. Slide 11: Tenant and Industry Diversification

    Portfolio Summary Tenant and Industry Diversification Top 10 Tenants Diversification by Industry % of Cash Type of Cash ABR % of Cash # of Building Rent Per Top 10 Tenants1 Properties2 ABR Tenant Industry Business ($'000s) ABR Properties2 SqFt3 SqFt3 Car Washes Service $ 63,430 15.4% 200 1,000,248 $

  12. Slide 12: Portfolio Health

    Portfolio Summary Portfolio Health Tenant Financial Reporting Requirements % of Cash ABR by Unit-Level Coverage Tranche1 % of Cash < 1.00x: Reporting Requirements ABR 4.4% Unit-Level Financial Information 98.9% 1.00x to Corporate-Level Financial Reporting 98.9% 1.49x: 8.7% Both Unit-Level and Corpor

  13. Slide 13: Leasing Expiration Schedule, Leasing Activity and Statistics

    Leasing Summary Leasing Expiration Schedule, Leasing Activity and Statistics Annual Lease Expiration by Cash ABR Leasing Activity – Trailing 12 Months Cash ABR % of # of Wgt. Avg. Lease Terminated Leases Re-Leased Total Year1 ($’000)s Cash ABR Properties2 Coverage3 $(000)s Renewals Without Vacancy A

  14. Slide 14: Same-Store Analysis

    Leasing Summary Same-Store Analysis Same-Store Portfolio Performance1 Contractual Cash Rent ($000s) 2 % Type of Business 2Q’23 2Q’24 Change Service $ 59,082 $ 59,897 1.4% Experience 9,041 9,149 1.2% Retail 2,812 2,833 0.8% Industrial 2,650 2,699 1.9% Total Same-Store Rent $ 73,585 $ 74,578 1.4% Trai

  15. Slide 15: Lease Escalations

    Leasing Summary Lease Escalations Lease Escalation Frequency Lease Escalation Type Weighted Average CPI 2.1% Flat 1.1% Lease Escalation Frequency % of Cash ABR Annual Escalation Rate1,2 Annually 82.2% 1.7% Every 2 years 1.0% 1.5% Every 3 years 0.1% 0.0% Every 4 years 0.1% 1.0% Every 5 years 13.3% 1.

  16. Slide 16: Glossary: Supplemental Reporting Measures

    Glossary Supplemental Reporting Measures FFO, Core FFO and AFFO evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it Our reported results are presented in accordance with U.S. generally removes the effect of unusual i

  17. Slide 17: Glossary: Supplemental Reporting Measures

    Glossary Supplemental Reporting Measures We also present our earnings before interest, taxes and depreciation and may not be comparable to similarly titled measures reported by other amortization for real estate (“EBITDA”), EBITDA further adjusted to equity REITs. exclude gains (or losses) on sales

  18. Slide 18: Glossary: Supplemental Reporting Measures

    Glossary Supplemental Reporting Measures Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI Initial Portfolio We further adjust EBITDAre, NOI and Cash NOI i) based on an estimate Initial Portfolio means our acquisition of a portfolio of 262 net leased calculated as if all re-leasing, investment an

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