Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Q2 2023 Earnings Presentation
18 slides from Essential Properties Realty Trust's earnings presentation, Jul 27, 2023
Slide 1: Supplemental Information Second Quarter 2023
Supplemental Information Second Quarter 2023 0 Supplemental Information | As of June 30, 2023
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 June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Rental revenue1,2 $ 81,819 $ 67,089 $ 159,991 $ 133,201 Interest
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 June 30, Six months ended June 30, (unaudited, in thousands except per share amounts) 2023 2022 2023 2022 Net income $ 53,000 $ 35,812 $ 96,056 $ 62,630 Depreciation and amortization of real es
Slide 5: Consolidated Balance Sheets
Financial Summary Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2023 December 31, 2022 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 1,370,069 $ 1,228,687 Building and improvements 2,684,807 2,440,630 Lea
Slide 6: GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI
Financial Summary GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics Three Months Ended (unaudited, in thousands) June 30, 2023 Net income $ 53,000 Depreciation and amortization 24,742 Interest expense 12,071 Interest income (448) Income tax expense 159 EBITDA 89,524
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) June 30, 2023 Rate Wtd. Avg. Maturity Unsecured debt: April 2024 term loan1 $ 200,000 2.9% 0.8 years February 2027 term loan1 430,000 2.4% 3.6 years January 2028 term
Slide 8: Investment Summary
Net Investment Activity Investment Summary $360,000 $322,203 $328,370 $320,000 $277,361 Activity ($000s) $280,000 $237,795 Investment $230,755 $240,000 $207,147 $195,454 $200,000 $175,738 $160,000 $120,000 $80,000 $40,000 $0 Investments1 3Q'21 4Q'21 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 Number of Tran
Slide 9: Disposition Summary
Net Investment Activity Disposition Summary $80,000 $75,522 Activity ($000s)1 $70,000 Disposition $60,000 $50,000 $41,736 $35,513 $37,161 $40,000 $30,000 $26,091 $18,443 $20,000 $10,089 $10,000 $4,466 $0 Dispositions 3Q'21 4Q'21 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 Realized Gain/(Loss)1,2 29.8%5 7.5%
Slide 10: Portfolio Highlights
Portfolio Summary Portfolio Highlights As of June 30, 2023 Investment Properties (#)1 1,742 Square Footage (mm) 17.2 Tenants (#) 360 Concepts (#) 560 Industries (#) 16 States (#) 48 Weighted Average Remaining Lease Term (Years) 14.0 Triple-Net Leases (% of Cash ABR) 95.4% Master Leases (% of Cash AB
Slide 11: Tenant and Industry Diversification
Portfolio Summary Tenant and Industry Diversification Top 10 Tenants Diversification by Industry % of Cash Type of Cash ABR % of Cash # of Building Rent Per Top 10 Tenants1 Properties2 ABR Tenant Industry Business ($'000s) ABR Properties2 SqFt SqFt3 Car Washes Service $ 51,190 15.6% 175 848,609 $ 60
Slide 12: Portfolio Health
Portfolio Summary Portfolio Health Tenant Financial Reporting Requirements % of Cash ABR by Unit-Level Coverage Tranche1 % of Cash < 1.00x Reporting Requirements ABR 3.1% 1.00x to Unit-Level Financial Information 98.6% 1.49x Corporate-Level Financial Reporting 98.9% 9.8% Both Unit-Level and Corporat
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 ABR % of # of Wgt. Avg. Lease Terminated Leases Re-Leased Total Year1 ($’000)s Cash ABR Properties2 Coverage3 $(000)s Renewals Without Vacancy A
Slide 14: Same-Store Analysis
Leasing Summary Same-Store Analysis Same-Store Portfolio Performance1 Contractual Cash Rent ($000s) 2 % Type of Business 2Q’22 2Q’23 Change Service $ 49,819 $ 50,673 1.7% Experience 7,090 7,102 0.2% Retail 2,775 2,812 1.3% Industrial 1,565 1,590 1.6% Total Same-Store Rent $ 61,249 $ 62,178 1.5% Trai
Slide 15: Lease Escalations
Leasing Summary Lease Escalations Lease Escalation Frequency Lease Escalation Type Weighted Average CPI 2.6% Flat Lease Escalation Frequency % of Cash ABR Annual Escalation Rate1,2 1.5% Annually 80.1% 1.7% Every 2 years 1.2 1.5 Every 3 years 0.2 0.0 Every 4 years 0.2 1.0 Every 5 years 12.3 1.8 Other
Slide 16: Glossary
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 17: Glossary
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 18: Glossary
Glossary Supplemental Reporting Measures Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI Initial Portfolio We further adjust EBITDAre, NOI and Cash NOI i) based on an estimate Initial Portfolio means our acquisition of a portfolio of 262 net leased calculated as if all re-leasing, investment an
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