Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Q1 2020 Earnings Presentation
19 slides from Essential Properties Realty Trust's earnings presentation, May 11, 2020
Slide 1: Supplemental Operating & Financial Data, First Quarter Ended March 31, 2020
Supplemental Operating & Financial Data First Quarter Ended March 31, 2020
Slide 2: Table of Contents
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, Debt Summary and Leverage Metrics 6 Net Investment Act
Slide 3: Consolidated Statements of Operations
Financial Summary Consolidated Statements of Operations Three Months Ended March 31, (in thousands, except share and per share data) 2020 2019 (unaudited) (unaudited) Revenues: Rental revenue1,2 $ 39,542 $ 30,774 Interest on loans and direct financing leases 1,938 326 Other revenue 7 7 Total revenue
Slide 4: Funds from Operations and Adjusted Funds from Operations
Financial Summary Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) Three Months Ended March 31, (unaudited, in thousands except per share amounts) 2020 2019 Net income $ 14,043 $ 8,723 Depreciation and amortization of real estate 12,988 9,097 Provision for impairment of real est
Slide 5: Consolidated Balance Sheets
Financial Summary Consolidated Balance Sheets March 31, 2020 December 31, 2019 (in thousands, except share and per share amounts) (unaudited) (audited) ASSETS Investments: Real estate investments, at cost: Land and improvements $ 632,628 $ 588,279 Building and improvements 1,317,406 1,224,682 Lease
Slide 6: GAAP Reconciliations to EBITDAre, GAAP NOI and Cash NOI
Financial Summary GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics Three Months Ended (unaudited, in thousands) March 31, 2020 Net income $ 14,043 Depreciation and amortization 13,012 Interest expense 6,833 Interest income (231) Income tax expense 31 EBITDA 33,688
Slide 7: Market Capitalization, Debt Summary and Leverage Metrics
Financial Summary Market Capitalization, Debt Summary and Leverage Metrics (dollars in thousands, except share and per share amounts) March 31, 2020 Rate Maturity1 Secured debt: Series 2017-1, Class A $ 160,455 4.10% 4.2 years Series 2017-1, Class B 15,669 5.11% 4.2 years Total secured debt 176,124
Slide 8: Investment Summary
Net Investment Activity Investment Summary $240,000 $214,427 $204,709 $190,280 $200,000 Activity ($000s) $173,590 $167,490 Investment $160,000 $133,745 $118,187 $120,000 $103,660 $80,000 $40,000 $0 Investments 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 20196 3Q 20197 4Q 20198 1Q 20209 Number of Transactions
Slide 9: Disposition Summary
Net Investment Activity Disposition Summary $30,000 $26,804 $25,000 Activity ($000s)1 Disposition $19,406 $19,542 $19,495 $19,571 $20,000 $15,229 $13,799 $15,000 $10,480 $10,000 $5,000 $0 Dispositions 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 20197 3Q 2019 4Q 2019 1Q 2020 5 6 Realized Gain/(Loss)1,2 9.7% (
Slide 10: Portfolio Highlights
Portfolio Summary Portfolio Highlights As of March 31, 2020 Investment Properties (#)1 1,050 Square Footage (mm) 8.3 Tenants (#) 212 Concepts (#) 283 Industries (#) 16 States (#) 43 Weighted Average Remaining Lease Term (Years) 14.6 Triple-Net Leases (% of Cash ABR) 93.8% Master Leases (% of Cash AB
Slide 11: Tenant and Industry Diversification
Portfolio Summary Tenant and Industry Diversification Top 10 Tenant Exposure Diversification by Industry % of Cash Type of Cash ABR % of Cash # of Building Rent Per Top 10 Tenants1 Properties ABR Tenant Industry Business ($'000s) ABR Properties2 SqFt SqFt3 Quick Service Service $ 23,080 14.3% 317 84
Slide 12: Portfolio Health
Portfolio Summary Portfolio Health Tenant Financial Reporting % of Cash ABR by Unit-Level Coverage Tranche1 < 1.00x % of Cash 1.00x to 2.7% Tenant Financial Reporting Requirements ABR 1.49x Unit-Level Financial Information 98.3% 5.7% Corporate-Level Financial Reporting 98.7% 1.50x to 1.99x Both Unit
Slide 13: Leasing Expiration Schedule, Leasing Activity and Statistics
Leasing Summary Leasing Expiration Schedule, Leasing Activity and Statistics Annual Lease Expiration by Cash ABR Leasing Activity – Trailing 12 Months Cash % of # of Wgt. Avg. Renewed Per Re-Leased to New Tenant Total Year1 ABR Cash ABR Properties2 Coverage3 $(000)s Terms of Lease Without Vacancy Af
Slide 14: Same-Store Analysis
Leasing Summary Same-Store Analysis Defined Terms Same-Store Portfolio Performance Contractual Cash Rent ($000s) % Same-Store Portfolio: Type of Business 1Q 2020 1Q 2019 Change All properties owned, excluding new sites Service $ 18,547 $ 18,342 1.1% under construction, for the entire same-store Expe
Slide 15: Lease Escalations
Leasing Summary Lease Escalations Lease Escalation Frequency Lease Escalation Type Weighted Average CPI- Flat Lease Escalation Frequency % of Cash ABR Annual Escalation Rate1,2 Based 1% 7% Annually 79.6% 1.5% Every 2 years 2.4 1.4 Every 3 years 1.0 1.4 Every 4 years 0.5 0.8 Every 5 years 13.8 1.3 Ev
Slide 16: COVID-19 Impact: Portfolio and April Rent Status
COVID-19 Impact: Portfolio and April Rent Status Over 71% of Our Portfolio is Currently Open or Operating in a Limited Capacity • Portfolio Operating Status: As of early May, 48% of our ABR was open, 23% was open on a limited operating basis and 29% was closed • April Rent Collection Totaled 61%: Ca
Slide 17: Glossary: Supplemental Reporting Measures
Glossary Supplemental Reporting Measures FFO, Core FFO and AFFO evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it Our reported results are presented in accordance with U.S. generally removes the effect of unusual i
Slide 18: Glossary: Supplemental Reporting Measures
Glossary Supplemental Reporting Measures We also present our earnings before interest, taxes and depreciation and may not be comparable to similarly titled measures reported by other amortization for real estate (“EBITDA”), EBITDA further adjusted to equity REITs. exclude gains (or losses) on sales
Slide 19: Glossary: Supplemental Reporting Measures
Glossary Supplemental Reporting Measures Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI GE Seed Portfolio We further adjust EBITDAre, NOI and Cash NOI i) based on an estimate GE seed portfolio means our acquisition of a portfolio of 262 net leased calculated as if all investment and dispositio
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