Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Q3 2024 Earnings Presentation
18 slides from Essential Properties Realty Trust's earnings presentation, Oct 24, 2024
Slide 1: Supplemental Information Third Quarter 2024
Supplemental Information Third Quarter 2024
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
Slide 3: Consolidated Statements of Operations
Financial Summary Consolidated Statements of Operations Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Rental revenue1,2 $ 110,512 $ 86,969 $ 313,392 $ 246,
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 September 30, Nine Months Ended September 30, (unaudited, in thousands except per share amounts) 2024 2023 2024 2023 Net income $ 49,293 $ 46,088 $ 148,089 $ 142,144 Depreciation and amortizati
Slide 5: Consolidated Balance Sheets
Financial Summary Consolidated Balance Sheets December 31, (in thousands, except share and per share amounts) September 30, 2024 2023 ASSETS (Unaudited) (Audited) Investments: Real estate investments, at cost: Land and improvements $ 1,799,183 $ 1,542,302 Building and improvements 3,302,198 2,938,01
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) September 30, 2024 Net income $ 49,293 Depreciation and amortization 30,879 Interest expense 21,627 Interest income (1,169) Income tax expense 159 EBITDA
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) September 30, 2024 Rate Wtd. Avg. Maturity Unsecured debt: February 2027 term loan1 $ 430,000 2.4% 2.4 years January 2028 term loan1 400,000 4.6% 3.3 years February 2
Slide 8: Investment Summary
Net Investment Activity Investment Summary $360,000 $328,370 $333,910 $314,865 $307,615 $320,000 $277,361 $280,000 $248,770 Activity ($000s) $240,000 $213,327 Investment $207,147 $200,000 $160,000 $120,000 $80,000 $40,000 $— Investments1 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Number of Tran
Slide 9: Disposition Summary
Net Investment Activity Disposition Summary $80,000 $75,522 $70,000 $60,000 Activity ($000s)1 $50,000 Disposition $41,736 $40,000 $37,161 $28,496 $30,602 $30,000 $20,000 $16,973 $11,949 $10,000 $4,783 $— Dispositions 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 1,2 Realized Gain/(Loss) 7.2% (2.1)
Slide 10: Portfolio Highlights
Portfolio Summary Portfolio Highlights As of September 30, 2024 Investment Properties (#)1 2,053 Square Footage (mm) 21.0 Tenants (#) 407 Concepts (#) 583 Industries (#) 16 States (#) 49 Weighted Average Remaining Lease Term (Years) 14.1 Triple-Net Leases (% of Cash ABR) 96.4% Master Leases (% of Ca
Slide 11: Tenant and Industry Diversification
Portfolio Summary Tenant and Industry Diversification Top 10 Tenants Diversification by Industry % of Cash Type of Cash ABR % of Cash # of Building Rent Per Top 10 Tenants1 Properties2 ABR Tenant Industry Business ($'000s) ABR Properties2 SqFt3 SqFt3 Car Washes Service $ 67,515 15.4% 204 1,008,703 $
Slide 12: Portfolio Health
Portfolio Summary Portfolio Health Tenant Financial Reporting Requirements % of Cash ABR by Unit-Level Coverage Tranche1 < 1.00x % of Cash 3.0% Reporting Requirements ABR Unit-Level Financial Information 99.0% 1.00x to 1.49x Corporate-Level Financial Reporting 99.0% 10.4% Both Unit-Level and Corpora
Slide 13: Leasing Expiration Schedule, Lease Renewal Activity and Statistics
Leasing Summary Leasing Expiration Schedule, Lease Renewal 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 Vaca
Slide 14: Same-Store Analysis
Leasing Summary Same-Store Analysis Same-Store Portfolio Performance ¹ Contractual Cash Rent ($000s)² % Type of Business 3Q'23 3Q'24 Change Service $ 61,242 $ 62,076 1.4% Experience 10,573 10,714 1.3% Retail 3,268 3,296 0.8% Industrial 2,883 2,937 1.9% Total Same-Store Rent $ 77,966 $ 79,023 1.4% Tr
Slide 15: Lease Escalations
Leasing Summary Lease Escalations Lease Escalation Frequency Lease Escalation Type Weighted Average Lease Escalation Frequency % of Cash ABR Annual Escalation Rate1,2 CPI Flat 2.0% Annually 82.0% 1.7% 1.1% Every 2 years 0.9% 1.5% Every 3 years 0.1% 1.7% Every 4 years 0.1% 1.0% Every 5 years 13.7% 1.
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
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
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 investment and dispositio
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