Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (November 2024)
34 slides from Essential Properties Realty Trust's investor presentation, Nov 19, 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024 Exhibit 99.1
Slide 2: Disclaimer
Investor Presentation - November 20241 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Table of Contents 242, 242, 242 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securit
Slide 3: Business Update: Continuing to Execute Our Business Plan
Investor Presentation - November 20242 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Healthy Net Lease Portfolio1 • Stable Portfolio: 99.9% leased; same-store rent growth has averaged 1.5% over the last four quarters • Strong Coverage: Unit-level coverage of 3.6x with ~9
Slide 4: Investment Highlights
Investor Presentation - November 20243 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 EPRT Board Meeting Management Presentation First Quarter Ended March 31, 2023 Investment Highlights
Slide 5: Investment Highlights
Investor Presentation - November 20244 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Investment Highlights New Vintage Portfolio + External Growth Capacity = Compelling Investment Opportunity 242, 242, 242 • Newly Assembled Portfolio of Net Lease Properties • Long Durati
Slide 6: Focused Investment Strategy Based on Decades of Experience
Investor Presentation - November 20245 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Focused Investment Strategy Based on Decades of Experience Investment Discipline Refined Over Multiple Decades Across Various Credit Cycles Service-Oriented & Experience-Based Industries
Slide 7: Relationship Based Strategy – Capital Provider of Choice
Investor Presentation - November 20246 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Relationship Based Strategy – Capital Provider of Choice Actively Leveraging Our Relationships to Directly Originate New Investment Opportunities Relationship-Based Sourcing 1. Percentag
Slide 8: Portfolio Review
Investor Presentation - November 20247 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Portfolio Review
Slide 9: New Vintage Portfolio Focused on Targeted Industries
Investor Presentation – November 20248 New Vintage Portfolio Focused on Targeted Industries Disciplined Investing Focused on Service-Oriented and Experience-Based Businesses with Unit-Level Reporting 1. As of September 30, 2024 2. Includes 149 properties that secure mortgage loans receivable. 3. Exc
Slide 10: Top Tenants and Diversification by Industry
Investor Presentation - November 20249 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 Top 10 Tenants1 Diversification by Industry 1. Represents tenant, guarantor or parent company. 2. Property count includes 149 properties that secure mortgage loans receivab
Slide 11: Diversified Portfolio – Geographic Diversity
Investor Presentation - November 202410 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Diversified Portfolio – Our Tenants Identify the Location of Opportunities Geographical Diversity is an Output of our Strategy • Geographic Diversity1 ~78% of Total Cash ABR comes from
Slide 12: Investment Activity
Investor Presentation - November 202411 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 1. Includes investments in mortgage loans receivable. 2. Cash ABR for the first full month after the investment divided by the gross investment in the property plus transa
Slide 13: Disposition Activity
Investor Presentation - November 202412 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 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 (excluding tran
Slide 14: Lease Escalation Frequency and Type
Investor Presentation - November 202413 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 1. Based on cash ABR as of September 30, 2024. 2. Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occur annually. For
Slide 15: Same-Store Portfolio Performance
Investor Presentation - November 202414 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 Same-Store Portfolio Performance¹ 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
Slide 16: Unit-Level Coverage and Tenant Reporting
Investor Presentation - November 202415 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 21% % o f C as h A B R < 1.00x 1.00 to 1.49x 1.50 to 1.99x ≥ 2.00x NR 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 A fte r —% 2% 4% 6%
Slide 17: Leverage & Liquidity
Investor Presentation - November 202416 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Leverage & Liquidity
Slide 18: Conservative and Flexible Debt Structure
Investor Presentation - November 202417 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 1. As of September 30, 2024. 2. Pro forma adjustments made to reflect the unsettled portion of shares sold on a forward basis as if they had been physically settled on September 30, 202
Slide 19: Consistently Strong Liquidity to Fund Growth
Investor Presentation - November 202418 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Consistently Strong Liquidity to Fund Growth ($mm) Strong Liquidity to Drive Leading AFFO/sh Growth $1.2B of Liquidity1 and Balance Sheet Capacity to Support External Growth Aspirations
Slide 20: Peer Comparison
Investor Presentation - November 202419 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Peer Comparison
Slide 21: Differentiated Net Lease Investment Opportunity
Investor Presentation - November 202420 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 18% 20% 21% 24% 32% 37% 49% 65% 67% EPRT WPC BNL O NNN ADC NTST FCPT GTY 98% 93% 89% 71% 37% 31% 28% 24% 20% GTY EPRT FCPT NNN O BNL ADC WPC NTST 5.0x 3.6x 3.3x 2.9x 2.6x FCPT EPRT BNL
Slide 22: Relative Valuation, Growth and Leverage
Investor Presentation - November 202421 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 3.5x 3.6x 4.0x 4.9x 5.0x 5.2x 5.3x 5.4x 5.4x EPRT ADC NTST BNL GTY NNN FCPT O WPC Source: Public filings and S&P Capital IQ. Note: Market data as of November 13, 2024. Data based on rep
Slide 23: Commitment to ESG
Investor Presentation - November 202422 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Commitment to ESG
Slide 24: Environmental, Social and Governance
Investor Presentation - November 202423 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Governance • Leading governance practices, Board accountability, strong board diversity, required minimum stock ownership, published compensation clawback policy, and no hedging or pled
Slide 25: Financials
Investor Presentation - November 202424 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Financials
Slide 26: Consolidated Statements of Income
Investor Presentation - November 202425 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 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) Reve
Slide 27: FFO, Core FFO and AFFO Reconciliation
Investor Presentation - November 202426 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 1. Includes the following during the: i) three months ended September 30, 2023 — $0.1 million loss on debt extinguishment; ii) nine months ended September 30, 2023 — $0.1 million loss o
Slide 28: Consolidated Balance Sheets
Investor Presentation - November 202427 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 (in thousands, except share and per share amounts) September 30, 2024 December 31, 2023 ASSETS (Unaudited) (Audited) Investments: Real estate investments, at cost: Land an
Slide 29: EBITDAre and NOI Reconciliation
Investor Presentation - November 202428 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 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 repayments completed dur
Slide 30: Debt Summary and Capitalization
Investor Presentation - November 202429 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 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 2027 and 2028 Term Loan
Slide 31: Glossary
Investor Presentation - November 202430 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 Glossary
Slide 32: Glossary: FFO, Core FFO and AFFO
Investor Presentation - November 202431 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 Glossary Supplemental Reporting Measures FFO, Core FFO and AFFO Our reported results are presented in accordance with U.S. generally accepted accounting principles ("GAAP"
Slide 33: Glossary: EBITDA, EBITDAre, Net Debt, NOI
Investor Presentation - November 202432 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 Glossary Supplemental Reporting Measures We also present our earnings before interest, taxes and depreciation and amortization for real estate (“EBITDA”), EBITDA further a
Slide 34: Glossary: Adjusted EBITDAre / Adjusted NOI
Investor Presentation - November 202433 254, 192, 59 75, 108, 127 146, 204, 238 0, 0, 0 38, 169, 224 153, 223, 227 242, 242, 242 Glossary Supplemental Reporting Measures Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI We further adjust EBITDAre, NOI and Cash NOI i) based on an estimate calculat
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