Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Q3 2023 Earnings Presentation
18 slides from Essential Properties Realty Trust's earnings presentation, Oct 25, 2023
Slide 1: Supplemental Information Third Quarter 2023
Supplemental Information | As of September 30, 20230 Supplemental Information Third Quarter 2023 Exhibit 99.2
Slide 2: Table of Contents
Supplemental Information | As of September 30, 20231 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, D
Slide 3: Consolidated Statements of Operations
Supplemental Information | As of September 30, 20232 l t l I f r ti | s f t r , 2 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $198, $210, $518 and $526 for the three and nine months ended September 30, 2023 and 2022, respectively. 2. Incl
Slide 4: Funds from Operations and Adjusted Funds from Operations
Supplemental Information | As of September 30, 20233 l t l I f r ti | s f t r , 3 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 on debt extinguishment, $0.9 milli
Slide 5: Consolidated Balance Sheets
Supplemental Information | As of September 30, 20234 l t l I f r ti | s f t r , 4 Financial Summary Consolidated Balance Sheets (in thousands, except share and per share amounts) September 30, 2023 December 31, 2022 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and
Slide 6: GAAP Reconciliations to EBITDAre, GAAP NOI and Cash NOI
Supplemental Information | As of September 30, 20235 l t l I f r ti | s f t r , 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 dispositi
Slide 7: Market Capitalization, Debt Summary and Leverage Metrics
Supplemental Information | As of September 30, 20236 l t l I f r ti | s f t r , 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
Slide 8: Net Investment Activity: Investment Summary
Supplemental Information | As of September 30, 20237 $322,203 $237,795 $175,738 $195,454 $328,370 $207,147 $277,361 $213,327 $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 ) Net Investment Activity Investment Summary 1. Includes
Slide 9: Net Investment Activity: Disposition Summary
Supplemental Information | As of September 30, 20238 $4,466 $18,443 $26,091 $35,513 $75,522 $37,161 $41,736 $28,496 $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 Net Investment Activity Disposition Summary 1. Includes the impact of transac
Slide 10: Portfolio Highlights
Supplemental Information | As of September 30, 20239 Portfolio Summary Portfolio Highlights Investment Properties (#)1 1,793 Square Footage (mm) 17.8 Tenants (#) 363 Concepts (#) 584 Industries (#) 16 States (#) 48 Weighted Average Remaining Lease Term (Years) 13.9 Triple-Net Leases (% of Cash ABR)
Slide 11: Tenant and Industry Diversification
Supplemental Information | As of September 30, 202310 Top 10 Tenants1 Properties2 % of Cash ABR 39 3.3% 7 2.0% 31 2.0% 6 1.7% 10 1.7% 77 1.6% 16 1.4% 21 1.4% 12 1.4% 13 1.3% Top 10 Tenants 232 17.8% Total 1,790 100.0% Portfolio Summary Tenant and Industry Diversification Top 10 Tenants Diversificati
Slide 12: Portfolio Health
Supplemental Information | As of September 30, 202311 ≥ 2.00x: 74.1% Not Reported: 1.4% 1.50x to 1.99x: 12.1% 1.00x to 1.49x: 9.3% < 1.00x: 3.1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 20 23 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 Th er ea fte r % o f
Slide 13: Leasing Expiration Schedule, Leasing Activity and Statistics
Supplemental Information | As of September 30, 202312 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 2023 234 0.1% 4 2.7x Prior Cash ABR $ 333 $ 2,561 $ 284 $ 3,178 2024 5,297 1
Slide 14: Same-Store Analysis
Supplemental Information | As of September 30, 202313 Leasing Summary Same-Store Analysis Same-Store Portfolio Performance1 Contractual Cash Rent ($000s) 2 % Type of Business 3Q’22 3Q’23 Change Service $ 52,056 $ 52,774 1.4% Experience 7,645 7,644 0.0% Retail 2,804 2,816 0.4% Industrial 1,662 1,690
Slide 15: Lease Escalations
Supplemental Information | As of September 30, 202314 Contractual Fixed 96.1% CPI 2.5% Flat 1.4% Leasing Summary Lease Escalations 1. Based on cash ABR as of September 30, 2023. 2. Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occur annually. Fo
Slide 16: Glossary: Supplemental Reporting Measures
Supplemental Information | As of September 30, 202315 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 operatio
Slide 17: Glossary: Supplemental Reporting Measures
Supplemental Information | As of September 30, 202316 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 r
Slide 18: Glossary: Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI
Supplemental Information | As of September 30, 202317 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 plac
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