Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (February 2023)
29 slides from Essential Properties Realty Trust's investor presentation, Feb 21, 2023
Slide 1: Investor Presentation – February 2023
Investor Presentation – February 2023 Exhibit 99.1
Slide 2: Disclaimer
Investor Presentation – February 20231 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 – February 20232 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 • Discipli
Slide 4: Healthy Net Lease Portfolio
Investor Presentation – February 20233 Healthy Net Lease Portfolio1 • Stable Portfolio: 99.9% leased; same-store rent growth has averaged 1.8% over the last four quarters • Strong Coverage: Unit-level coverage of 4.0x with 99% of ABR required to report unit-level P&Ls • De-Minimis Near-Term Expirati
Slide 5: Service-Oriented & Experience-Based Industries
Investor Presentation – February 20234 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 – February 20235 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,
Slide 7: New Vintage Portfolio is Focused on Targeted Industries
Investor Presentation – February 20236 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 1,653 Squar
Slide 8: Top Tenant Concentration
Investor Presentation – February 20237 Top 10 Tenant Concentration Our Top 10 Tenants Operate 203 Properties and Represent 18.0% of Cash ABR Diversification by Industry 1. Represents tenant, guarantor or parent company. 2. Property count includes 153 properties that secure mortgage loans receivable
Slide 9: Disciplined Underwriting Leading to Healthy Portfolio Metrics
Investor Presentation – February 20238 Disciplined Underwriting Leading to Healthy Portfolio Metrics 98.6% of Unit-Level Reporting Provides (Near) Real-Time Tenant Visibility 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% C C C + B - B B + B B - B B B B + B B B - B B B B B B + A - A A + A A - % o f C a s h
Slide 10: Established and Proven Investment Infrastructure
Investor Presentation – February 20239 Established and Proven Investment Infrastructure Scalable Platform Allows for Consistent Sourcing of Investment Activity at Attractive Yields without Sacrificing Underwriting Standards and Investment Focus $197,816 $223,186 $230,755 $322,203 $237,795 $175,738 $
Slide 11: Active Asset Management
Investor Presentation – February 202310 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 (e
Slide 12: Leasing Summary
Investor Presentation – February 202311 Leasing Summary Contractual Rent Escalations Generate Dependable Internal Growth Contractual Fixed 95.3% CPI 3.0% Flat 1.8% 1. Based on cash ABR as of December 31, 2022. 2. Represents the weighted average annual escalation rate of the entire portfolio as if al
Slide 13: Debt Maturity Schedule
Investor Presentation – February 202312 $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 Solid AFFO/sh Growth
Investor Presentation – February 202313 6.3% 4.5% 4.1% 2.8% 2.6% 2.1% 1.8% 1.6% 1.2% 0.9% Low Leverage and Ample Liquidity to Drive Solid AFFO/sh Growth Strong Liquidity and Balance Sheet Capacity to Support External Growth • 100% Unsecured Balance Sheet: Asset base is 100% unencumbered with no secu
Slide 15: Differentiated Net Lease Investment Opportunity
Investor Presentation – February 202314 4% 8% 8% 12% 15% 15% 16% 17% 18% 21% 76% 74% 54% 38% 33% 28% 22% 18% 18% 17% 4.0x 4.0x 3.1x 2.8x 2.8x 2.7x NR NR NR NR EPRT FCPT BNL O SRC GTY WPC ADC NNN NTST 100% 100% 93% 71% 46% 46% 39% 28% 28% 13% FCPT GTY EPRT NNN SRC O BNL WPC ADC NTST Differentiated Ne
Slide 16: AFFO per Share Multiples and Growth vs. Peers
Investor Presentation – February 202315 19.5x 17.3x 17.0x 17.0x 16.9x 16.7x 15.9x 14.6x 13.1x 12.4x 6.3% 4.5% 4.1% 2.8% 2.6% 2.1% 1.8% 1.6% 1.2% 0.9% 23.3% 14.2% 9.9% 9.1% 8.4% 7.7% 6.9% 5.3% 5.2% 5.1% 19.0x 16.9x 16.7x 16.3x 16.0x 15.9x 15.7x 14.4x 12.9x 12.2x Source: Public filings, FactSet and SN
Slide 17: Commitment to ESG
+ Commitment to ESG
Slide 18: Our Commitment, Progress and Goals
Investor Presentation – February 202317 Our Commitment Our Progress Our Goals • Reducing our Carbon Footprint Implementing sustainability upgrades at our properties to reduce our carbon footprint and specifically our Scope 3 emissions • Expanding our Relationship with our Tenants through Sustainabil
Slide 19: Workforce, Benefits and Development
Investor Presentation – February 202318 • Providing a dynamic work environment, rewarding work experience and career development for our team • Providing a positive work environment for everyone, valuing equal opportunity and fair employment practices • Strive to offer our employees attractive and e
Slide 20: Board Composition and Governance Practices
Investor Presentation – February 202319 Avg. Tenure 3.9 yrs. 7 Independent 38% Female 13% Diverse Board Practices: • Independent Chairman of the Board • Annual elections for all directors • All committees are fully independent • Opted out of MUTA • Opted out of control share acquisition provisions o
Slide 21: 4Q'22 Financials
+ 4Q’22 Financials
Slide 22: Financial Summary – 4Q'22 Consolidated Statements of Operations
Investor Presentation – February 202321 Financial Summary – 4Q’22 Consolidated Statements of Operations 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $156, $257 ,$682 and $721 for the three months and year ended December 31, 2022 and 2021,
Slide 23: Financial Summary – 4Q'22 FFO and AFFO
Investor Presentation – February 202322 Financial Summary – 4Q’22 Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) 1. Includes $0.2 million of fees incurred in conjunction with the August 2022 amendment to our 2027 Term Loan and our $2.1 million loss on debt extinguishment durin
Slide 24: Financial Summary – 4Q'22 Consolidated Balance Sheets
Investor Presentation – February 202323 Financial Summary – 4Q’22 Consolidated Balance Sheets (in thousands, except share and per share amounts) December 31, 2022 December 31, 2021 ASSETS (audited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 1,228,687 $ 1,004,154
Slide 25: Financial Summary – 4Q'22 GAAP Reconciliations to EBITDAre, NOI
Investor Presentation – February 202324 Financial Summary – 4Q’22 GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics 1. Adjustment is made to reflect EBITDAre, NOI and Cash NOI as if all re-leasing activity, investments in and dispositions of real estate and loan rep
Slide 26: Market Capitalization, Debt Summary and Leverage Metrics
Investor Presentation – February 202325 Financial Summary – 4Q’22 Market Capitalization, Debt Summary and Leverage Metrics (dollars in thousands, except share and per share amounts) December 31, 2022 Rate Wtd. Avg. Maturity Unsecured debt: April 2024 term loan1 $ 200,000 2.9% 1.3 years February 2027
Slide 27: Glossary Supplemental Reporting Measures
Investor Presentation – February 202326 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 28: Glossary Supplemental Reporting Measures
Investor Presentation – February 202327 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 imp
Slide 29: Glossary Supplemental Reporting Measures
Investor Presentation – February 202328 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 q
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