Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (March 2022)
24 slides from Essential Properties Realty Trust's investor presentation, Mar 1, 2022
Slide 1: March 2022 Investor Presentation
March 2022 Presentation Exhibit 99.1
Slide 2: Disclaimer
Investor Presentation – March 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 “expect,”
Slide 3: Investment Highlights
Investor Presentation – March 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 • Disciplined
Slide 4: Stable Net Lease Portfolio
Investor Presentation – March 20223 Stable Net Lease Portfolio1 • Solid Coverage: Unit-level rent coverage of 3.7x with 99% of ABR required to report unit-level P&Ls • De-Minimis Near-Term Expirations: <5.5% of ABR expiring over next five years • Fungible & Diversified: Average asset size is $2.3mm;
Slide 5: Service-Oriented & Experience-Based Industries
Investor Presentation – March 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/experience ✓
Slide 6: Seek to be the Capital Provider of Choice
Investor Presentation – March 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 December 31, 202
Slide 7: New Vintage Portfolio is Focused on Targeted Industries
Investor Presentation – March 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 1,451 Square F
Slide 8: Top Tenant Concentration
Investor Presentation – March 20227 Top 10 Tenant Concentration Our Top 10 Tenants Operate 246 Properties and Represent 19.7% of Cash ABR Top 10 Tenants1 Properties2 % of Cash ABR 26 3.3% 75 2.2% 16 2.0% 23 2.0% 17 1.8% 13 1.8% 6 1.8% 17 1.6% 19 1.6% 34 1.6% Top 10 Tenants 246 19.7% Total 1,450 100.
Slide 9: Disciplined Underwriting Leading to Healthy Portfolio Metrics
Investor Presentation – March 20228 Disciplined Underwriting Leading to Healthy Portfolio Metrics 98.5% of Unit-Level Reporting Provides (Near) Real-Time Tenant Visibility 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3
Slide 10: Established and Proven Investment Infrastructure
Investor Presentation – March 20229 $167,490 $42,369 $148,877 $244,078 $197,816 $223,186 $230,755 $322,203 $0 $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 $320,000 $360,000 In v e s tm e n t A c ti v it y ( $ 0 0 0 s ) Established and Proven Investment Infrastructure Scalable Platfor
Slide 11: Active Asset Management
Investor Presentation – March 202210 Active Asset Management Proactive Asset Management Mitigates Risk and Maximizes Risk-Adjusted Returns 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 (excl
Slide 12: Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth
Investor Presentation – March 202211 19.3% 11.5% 10.5% 8.8% 7.4% 6.8% 6.2% 5.8% 5.1% 5.1% Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth Ample Liquidity and Balance Sheet Capacity to Support External Growth • 100% Unsecured Balance Sheet: Asset base is 100% unencumbered with no secu
Slide 13: Flexible Debt Structure
Investor Presentation – March 202212 $600 $200 $430 $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 ) Outstanding Revolving Credit Facility Revolving Credit Facility Availability Five-Year Unsecured Term Loan Seven-Y
Slide 14: Differentiated Net Lease Investment Opportunity
Investor Presentation – March 202213 5% 5% 8% 9% 15% 17% 19% 20% 22% 26% 79% 75% 54% 36% 34% 29% 22% 20% 18% 18% 4.6x 4.4x 3.7x 3.2x 2.8x 2.6x 2.6x NR NR NR 100% 100% 93% 72% 65% 48% 47% 40% 28% 17% Differentiated Net Lease Investment Opportunity Portfolio Mix and Underlying Fundamentals are Favorab
Slide 15: Relative Valuation and AFFO per Share Growth
Investor Presentation – March 202214 16.8% 9.3% 6.7% 6.7% 5.7% 5.3% 5.2% 4.3% 3.9% 3.1% 19.9x 17.2x 17.0x 17.0x 16.3x 15.4x 14.2x 13.9x 13.5x 13.2x 17.0x 16.3x 16.3x 15.6x 15.5x 14.4x 13.5x 13.3x 13.0x 12.6x 2022E AFFO per Share Multiple1 2022E AFFO per Share Growth2 Source: Public filings, FactSet
Slide 16: Appendix
+ Appendix
Slide 17: Financial Summary – 4Q'21 Consolidated Statements of Operations
Investor Presentation – March 202216 Financial Summary – 4Q’21 Consolidated Statements of Operations 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $257, $88, $721 and $444 for the three months and year ended December 31, 2021 and 2020, resp
Slide 18: Financial Summary – 4Q'21 FFO and AFFO
Investor Presentation – March 202217 Financial Summary – 4Q’21 Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) 1. During the year ended December 31, 2021, includes a make-whole payment of $2,543 and the write-off of $1,873 of deferred financing costs. 2. Includes non-recurring
Slide 19: Financial Summary – 4Q'21 Consolidated Balance Sheets
Investor Presentation – March 202218 Financial Summary – 4Q’21 Consolidated Balance Sheets December 31, 2021 December 31, 2020 (in thousands, except share and per share amounts) (audited) (audited) ASSETS Investments: Real estate investments, at cost: Land and improvements $ 1,004,154 $ 741,254 Buil
Slide 20: GAAP Reconciliations to EBITDAre, NOI and Cash NOI
Investor Presentation – March 202219 Financial Summary – 4Q’21 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 and loa
Slide 21: Market Capitalization, Debt Summary and Leverage Metrics
Investor Presentation – March 202220 Financial Summary – 4Q’21 Market Capitalization, Debt Summary and Leverage Metrics 1. Prior to its amendment in February 2022, our revolving credit facility provided a maximum aggregate initial original principal amount of up to $400 million and included an accor
Slide 22: Glossary
Investor Presentation – March 202221 Glossary Supplemental Reporting Measures and Other Terms 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 operation
Slide 23: Glossary
Investor Presentation – March 202222 Glossary Supplemental Reporting Measures and Other Terms 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 re
Slide 24: Glossary
Investor Presentation – March 202223 Glossary Supplemental Reporting Measures and Other Terms 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 re
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