Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Q1 2024 Earnings Presentation
18 slides from Essential Properties Realty Trust's earnings presentation, Apr 24, 2024
Slide 1: Supplemental Information First Quarter 2024
Supplemental Information | As of March 31, 20240 Supplemental Information First Quarter 2024 Exhibit 99.2
Slide 2: Table of Contents
Supplemental Information | As of March 31, 20241 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
Slide 3: Consolidated Statements of Operations
Supplemental Information | As of March 31, 20242 l t l I f r ti | s f rc , 2 Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 (unaudited) (unaudited) Revenues: Rental revenue1,2 $ 98,510 $ 78,172 Interest on loans and direct financing lease receivables 4,740 4,4
Slide 4: Funds from Operations and Adjusted Funds from Operations
Supplemental Information | As of March 31, 20243 l t l I f r ti | s f rc , 3 Three Months Ended March 31, (unaudited, in thousands except per share amounts) 2024 2023 Net income $ 47,123 $ 43,056 Depreciation and amortization of real estate 28,485 23,799 Provision for impairment of real estate 3,752
Slide 5: Consolidated Balance Sheets
Supplemental Information | As of March 31, 20244 l t l I f r ti | s f rc , 4 Financial Summary Consolidated Balance Sheets (in thousands, except share and per share amounts) March 31, 2024 December 31, 2023 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvem
Slide 6: GAAP Reconciliations to EBITDAre, GAAP NOI and Cash NOI
Supplemental Information | As of March 31, 20245 l t l I f r ti | s f rc , 5 Financial Summary GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics 1. Adjustment made to reflect EBITDAre, NOI and Cash NOI as if all re-leasing activity, investments in and dispositions o
Slide 7: Market Capitalization, Debt Summary and Leverage Metrics
Supplemental Information | As of March 31, 20246 l t l I f r ti | s f rc , 6 Financial Summary Market Capitalization, Debt Summary and Leverage Metrics 1. Rates presented for our term loans are fixed at the stated rates after giving effect to our interest rate swaps, applicable margin of 85bps (for
Slide 8: Investment Summary
Supplemental Information | As of March 31, 20247 $175,738 $195,454 $328,370 $207,147 $277,361 $213,327 $314,865 $248,770 $0 $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 $320,000 $360,000 In ve st m en t Ac tiv ity ($ 00 0s ) In ve st m en t Ac tiv ity ($ 00 0s ) Net Investment Activi
Slide 9: Disposition Summary
Supplemental Information | As of March 31, 20248 $26,091 $35,513 $75,522 $37,161 $41,736 $28,496 $30,602 $11,949 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 D is po si tio n Ac tiv ity ($ 00 0s )1 D is po si tio n Ac tiv ity ($ 00 0s )1 Net Investment Activity Disposition Summ
Slide 10: Portfolio Highlights
Supplemental Information | As of March 31, 20249 Portfolio Summary Portfolio Highlights Investment Properties (#)1 1,937 Square Footage (mm) 19.3 Tenants (#) 383 Concepts (#) 548 Industries (#) 16 States (#) 48 Weighted Average Remaining Lease Term (Years) 14.1 Triple-Net Leases (% of Cash ABR) 96.1
Slide 11: Tenant and Industry Diversification
Supplemental Information | As of March 31, 202410 Top 10 Tenants1 Properties2 % of Cash ABR 54 4.3% 8 2.2% 31 1.8% 16 1.6% 25 1.6% 28 1.6% 40 1.5% 6 1.5% 10 1.5% 77 1.5% Top 10 Tenants 295 19.1% Total 1,936 100.0% Portfolio Summary Tenant and Industry Diversification Top 10 Tenants Diversification b
Slide 12: Portfolio Health
Supplemental Information | As of March 31, 202411 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 20 24 20 25 20 26 20 27 20 28 20 29 20 30 20 31 20 32 20 33 20 34 20 35 20 36 20 37 20 38 20 39 Th er ea fte r % o f C as h AB R < 1.00x 1.00 to 1.49x 1.50 to 1.99x ≥ 2.00x NR 38.4% 0% 2% 4% 6% 8% 10% 12% 14% 16
Slide 13: Leasing Expiration Schedule, Leasing Activity and Statistics
Supplemental Information | As of March 31, 202412 Cash ABR % of # of Wgt. Avg. Lease Terminated Leases Re-Leased Total Year1 ($’000)s Cash ABR Properties2 Coverage3 $(000)s Renewals Without Vacancy After Vacancy Leasing 2024 1,148 0.3% 16 2.4x Prior Cash ABR $ 4,384 $ 803 $ 787 $ 5,973 2025 2,613 0.
Slide 14: Same-Store Analysis
Supplemental Information | As of March 31, 202413 Leasing Summary Same-Store Analysis Same-Store Portfolio Performance1 Contractual Cash Rent ($000s) 2 % Type of Business 1Q’23 1Q’24 Change Service $ 56,255 $ 57,106 1.5% Experience 8,621 8,748 1.5% Retail 2,812 2,833 0.8% Industrial 2,124 2,161 1.8%
Slide 15: Lease Escalations
Supplemental Information | As of March 31, 202414 Contractual Fixed 96.6% CPI 2.2% Flat 1.2% Leasing Summary Lease Escalations 1. Based on cash ABR as of March 31, 2024. 2. Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occur annually. For leases
Slide 16: Glossary: Supplemental Reporting Measures
Supplemental Information | As of March 31, 202415 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 (
Slide 17: Glossary: Supplemental Reporting Measures
Supplemental Information | As of March 31, 202416 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
Slide 18: Glossary: Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI
Supplemental Information | As of March 31, 202417 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 du
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