Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (May 2021)
26 slides from Essential Properties Realty Trust's investor presentation, May 11, 2021
Slide 1: May 2021 Presentation
May 2021 Presentation
Slide 2: Disclaimer
Investor Presentation – May 20211 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,” “p
Slide 3: Investment Highlights
Investor Presentation – May 20212 Investment Highlights Newly Assembled Portfolio of Single-Tenant Net Lease Properties with Long Duration Leases and Solid Unit-Level Rent Coverage Experienced Senior Management Team with Track Record of Growing and Managing Public Net Lease Companies to Significant
Slide 4: Consistent & Disciplined External Growth
Investor Presentation – May 20213 Consistent & Disciplined External Growth • 2Q’21 and Probable Investment Activity: Completed ~$49mm1 of QTD investments at a 6.9% cash yield with another ~$110mm under PSA and ~$155mm under LOI, with a solid pipeline of additional opportunities • Differentiated Inve
Slide 5: COVID-19: Virtually No Remaining Impact on Portfolio
Investor Presentation – May 20214 COVID-19: Virtually No Remaining Impact on Portfolio Rent Collection and Deferral Information Note: Ratios are based on percentage of Cash ABR as of March 31, 2021. 1. Percentages may not add up due to rounding. 2. Recognized rent deferrals are included in revenue o
Slide 6: Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth
Investor Presentation – May 20215 Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth Ample Liquidity and Balance Sheet Capacity to Support External Growth • Strong Liquidity: We have $492mm in total immediate liquidity as our pro forma1 1Q’21 balance sheet has $92mm in cash and full ava
Slide 7: Service-Oriented & Experience-Based Industries
Investor Presentation – May 20216 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 ✓ Lo
Slide 8: Seek to be the Capital Provider of Choice
Investor Presentation – May 20217 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, 2021 tha
Slide 9: New Vintage Portfolio is Focused on Targeted Industries
Investor Presentation – May 20218 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 1,240 Square Foo
Slide 10: Top Tenants and Diversification by Industry
Investor Presentation – May 20219 Top 10 Tenants1,2 Properties % of Cash ABR 74 2.6% 23 2.5% 16 2.4% 13 2.3% 34 2.0% 5 1.8% 19 1.8% 13 1.7% 20 1.6% 13 1.5% Top 10 Tenants 230 20.2% Total 1,240 100.0% Top 10 Tenants Diversification by Industry 1. Represents tenant, guarantor or parent company. 2. Our
Slide 11: Unit-Level Coverage and Tenant Financial Reporting
Investor Presentation – May 202110 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 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 A B R < 1.00x 1.00 to 1.49x 1.50 to 1.99x ≥ 2.00x NR 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 2 0 2 1 2 0 2 2
Slide 12: Investment Activity
Investor Presentation – May 202111 1. Includes investments in mortgage loans receivable. 2. Cash ABR for the first full month after the investment divided by the gross purchase price for the property plus transaction costs. 3. GAAP rent for the first twelve months after the investment divided by the
Slide 13: Disposition Activity
Investor Presentation – May 202112 1. Includes transaction costs. 2. Gains/(losses) based on our initial purchase price. 3. Cash ABR at time of sale divided by gross sale price (excluding transaction costs) for the property. 4. Property count excludes dispositions in which only a portion of the owne
Slide 14: Lease Escalation
Investor Presentation – May 202113 1. Based on cash ABR as of March 31, 2021. 2. Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occur annually. For leases in which rent escalates by the greater of a stated fixed percentage or CPI, we have assumed
Slide 15: Debt Structure Allows for Capital Flexibility
Investor Presentation – May 202114 $3 $4 $5 $160 $200 $430 $0 $100 $200 $300 $400 $500 2021 2022 2023 2024 2025 2026 M a tu ri n g P ri n c ip a l B a la n c e ( $ m m ) Secured ABS Notes Five-Year Unsecured Term Loan Seven-Year Unsecured Term Loan Revolving Credit Facility Availability Outstanding
Slide 16: Differentiated Net Lease Portfolio
Investor Presentation – May 202115 86% 84% 38% 36% 35% 27% 22% 20% 19% 18% 3.1x 3.0x 2.7x 2.6x 2.6x 2.6x 2.4x NA NA NA 4% 4% 6% 10% 14% 15% 19% 21% 27% 34% 100% 100% 95% 72% 65% 51% 44% 42% 42% 27% 14.0 Weighted Average Lease Term (# of Years) 14.3 10.2 10.7 9.5 9.7 10.1 10.7 9.0 8.4 Differentiated
Slide 17: 2021E AFFO per Share Multiple and Growth
Investor Presentation – May 202116 10.8% 6.7% 6.7% 6.5% 6.0% 5.0% 4.8% 4.8% 4.3% 1.9% 21.0x 20.4x 19.6x 18.3x 17.7x 16.9x 16.4x 15.6x 15.5x 14.7x 11.4% 8.7% 8.5% 8.0% 7.3% 4.9% 4.6% 2.9% 2.7% 2.4% 19.1x 18.9x 18.5x 17.2x 16.8x 16.6x 15.6x 14.9x 14.6x 14.1x 2021E AFFO per Share Multiple1 2021E AFFO p
Slide 18: Appendix
+ Appendix
Slide 19: Consolidated Statements of Operations
Investor Presentation – May 202118 Three Months Ended March 31, (in thousands, except share and per share data) 2021 2020 (Unaudited) (Unaudited) Revenues: Rental revenue1,2 $ 45,432 $ 39,542 Interest on loans and direct financing leases 3,105 1,938 Other revenue 15 7 Total revenues 48,552 41,487 Ex
Slide 20: FFO, Core FFO and AFFO Reconciliation
Investor Presentation – May 202119 Three months ended March 31, (unaudited, in thousands except per share amounts) 2021 2020 Net income $ 15,375 $ 14,043 Depreciation and amortization of real estate 15,621 12,988 Provision for impairment of real estate 5,722 373 Gain on dispositions of real estate,
Slide 21: Consolidated Balance Sheets
Investor Presentation – May 202120 (in thousands, except share and per share amounts) March 31, 2021 December 31, 2020 ASSETS (Unaudited) (Audited) Investments: Real estate investments, at cost: Land and improvements $ 790,395 $ 741,254 Building and improvements 1,631,763 1,519,665 Lease incentive 1
Slide 22: EBITDAre and NOI Reconciliation
Investor Presentation – May 202121 Three Months Ended (unaudited, in thousands) March 31, 2021 Net income $ 15,375 Depreciation and amortization 15,646 Interest expense 7,678 Interest income (20) Income tax expense 56 EBITDA 38,735 Provision for impairment of real estate 5,722 Gain on dispositions o
Slide 23: Capitalization and Debt Summary
Investor Presentation – May 202122 (dollars in thousands, except share and per share amounts) March 31, 2021 Rate1 Maturity2 Secured debt: Series 2017-1, Class A $ 156,522 4.10% 3.2 years Series 2017-1, Class B 15,669 5.11% 3.2 years Total secured debt 172,191 4.19% 3.2 years Unsecured debt: $200mm
Slide 24: Glossary: Supplemental Reporting Measures
Investor Presentation – May 202123 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”) and
Slide 25: Glossary: Supplemental Reporting Measures (EBITDA)
Investor Presentation – May 202124 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 impairme
Slide 26: Glossary: Adjusted EBITDAre / Adjusted NOI
Investor Presentation – May 202125 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 quarte
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