Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (June 2022)
25 slides from Essential Properties Realty Trust's investor presentation, Jun 6, 2022
Slide 1: June 2022 Investor Presentation
June 2022 Presentation Exhibit 99.1
Slide 2: Disclaimer
Investor Presentation – June 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 – June 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 – June 20223 Stable Net Lease Portfolio1 • Stable Portfolio: 100% occupied with no tenants on non-accrual / cash accounting • Solid Coverage: Unit-level rent coverage of 3.8x with 99% of ABR required to report unit-level P&Ls • De-Minimis Near-Term Expirations: <5.0% of ABR exp
Slide 5: Service-Oriented & Experience-Based Industries
Investor Presentation – June 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 L
Slide 6: Seek to be the Capital Provider of Choice
Investor Presentation – June 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 March 31, 2022 th
Slide 7: New Vintage Portfolio is Focused on Targeted Industries
Investor Presentation – June 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 1,545 Square Fo
Slide 8: Top Tenant Concentration
Investor Presentation – June 20227 Top 10 Tenant Concentration Our Top 10 Tenants Operate 209 Properties and Represent 19.2% of Cash ABR Top 10 Tenants1 Properties2 % of Cash ABR 28 3.3% 75 2.0% 16 1.9% 23 1.9% 5 1.8% 17 1.7% 13 1.7% 6 1.7% 9 1.6% 17 1.5% Top 10 Tenants 209 19.2% Total 1,545 100.0%
Slide 9: Disciplined Underwriting Leading to Healthy Portfolio Metrics
Investor Presentation – June 20228 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% C C C + B- B B+ BB - BB BB + BB B- BB B BB B+ A- A A+ AA - % o f C as h AB R < 1.00x 1.00 to 1.49x 1.50 to 1.99x ≥ 2.00x NR 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 20 22 20 23 20 24 20 25 20 26 20 27 20 28 20 29 20 30 20 31 20
Slide 10: Established and Proven Investment Infrastructure
Investor Presentation – June 20229 $42,369 $148,877 $244,078 $197,816 $223,186 $230,755 $322,203 $237,795 $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 ) Established and Proven Investment Infrastructure Scalable Platform Allows
Slide 11: Active Asset Management
Investor Presentation – June 202210 $3,420 $19,595 $39,042 $25,197 $19,578 $10,089 $4,466 $18,443 $0 $10,000 $20,000 $30,000 $40,000 D is po si tio n Ac tiv ity ($ 00 0s )1 Active Asset Management Proactive Asset Management Mitigates Risk and Maximizes Risk-Adjusted Returns 1. Includes the impact of
Slide 12: Annual Rent Escalations Provide Dependable Internal Rent Growth
Investor Presentation – June 202211 Contractual Fixed 94.0% CPI 3.5% Flat 2.5% Leasing Summary Annual Rent Escalations Provide Dependable Internal Rent Growth ease Escalations 1. Based on cash ABR as of March 31, 2022. 2. Represents the weighted average annual escalation rate of the entire portfolio
Slide 13: Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth
Investor Presentation – June 202212 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 secured debt • Flexible Debt Structure: We have no debt ma
Slide 14: Flexible Debt Structure
Investor Presentation – June 202213 $600 $200 $430 $400 0 100 200 300 400 500 600 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 M at ur in g Pr in ci pa l B al an ce ($ m m ) Outstanding Revolving Credit Facility Revolving Credit Facility Availability Five-Year Unsecured Term Loan Seven-Year Uns
Slide 15: Differentiated Net Lease Investment Opportunity
Investor Presentation – June 202214 4% 5% 9% 9% 14% 16% 18% 18% 20% 24% 4.7x 4.6x 3.8x 3.2x 2.9x 2.7x 2.6x NR NR NR 79% 75% 53% 36% 33% 28% 21% 19% 18% 17% 100% 100% 93% 71% 64% 47% 47% 40% 28% 16% Differentiated Net Lease Investment Opportunity Portfolio Mix and Underlying Fundamentals are Favorabl
Slide 16: Relative Valuation
Investor Presentation – June 202215 11.3% 6.7% 4.8% 4.7% 4.5% 3.8% 3.7% 3.6% 3.4% 2.1% 18.4x 18.0x 17.2x 16.7x 15.2x 15.0x 13.7x 13.0x 12.4x 11.7x 17.2x 16.7x 16.6x 16.0x 14.4x 14.2x 13.4x 12.4x 11.9x 11.3x 2022E AFFO per Share Multiple1 2022E AFFO per Share Growth2 Source: Public filings, FactSet a
Slide 17: Appendix
+ Appendix
Slide 18: Financial Summary – 1Q'22 Consolidated Statements of Operations
Investor Presentation – June 202217 Financial Summary – 1Q’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 and $169 for the three months ended March 31, 2022 and 2021, respectively. 2. Includes re
Slide 19: Financial Summary – 1Q'22 FFO and AFFO
Investor Presentation – June 202218 Financial Summary – 1Q’22 Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) 1. During the three months ended March 31, 2022, includes fees and the write-off of deferred financing costs associated with the Company’s amendment to the credit and t
Slide 20: Financial Summary – 1Q'22 Consolidated Balance Sheets
Investor Presentation – June 202219 Financial Summary – 1Q’22 Consolidated Balance Sheets (in thousands, except share and per share amounts) March 31, 2022 December 31, 2021 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 1,083,007 $ 1,004,154 Buil
Slide 21: GAAP Reconciliations to EBITDAre, NOI and Run Rate Metrics
Investor Presentation – June 202220 Financial Summary – 1Q’22 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 investments, dispositions and re-leasing activity of real estate made during
Slide 22: Market Capitalization, Debt Summary and Leverage Metrics
Investor Presentation – June 202221 Financial Summary – 1Q’22 Market Capitalization, Debt Summary and Leverage Metrics 1. The Company’s revolving credit facility provides a maximum aggregate initial original principal amount of up to $600 million and includes an accordion feature to increase, subjec
Slide 23: Glossary Supplemental Reporting Measures and Other Terms
Investor Presentation – June 202222 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 operations
Slide 24: Glossary Supplemental Reporting Measures and Other Terms
Investor Presentation – June 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 rea
Slide 25: Glossary Supplemental Reporting Measures
Investor Presentation – June 202224 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 quart
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