Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (November 2021)
24 slides from Essential Properties Realty Trust's investor presentation, Nov 9, 2021
Slide 1: November 2021 Presentation
November 2021 Presentation
Slide 2: Disclaimer
Investor Presentation – November 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
Slide 3: Investment Highlights
Investor Presentation – November 20212 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 • Discipli
Slide 4: 4Q'21 Update / Executive Summary
Investor Presentation – November 20213 4Q’21 Update • Investment Activity1: Completed $47.1mm of QTD investments • Dispositions1: Sold two properties QTD for $4.6mm in gross proceeds • Occupancy: Portfolio remains 99.9% leased with one vacant property Well Positioned Balance Sheet • Low Leverage: Ne
Slide 5: Service-Oriented & Experience-Based Industries; Targeted Investment Strategy
Investor Presentation – November 20214 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
Slide 6: Seek to be the Capital Provider of Choice
Investor Presentation – November 20215 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 September 30,
Slide 7: New Vintage Portfolio Focused on Targeted Industries
Investor Presentation – November 20216 Early Childhood Education 14.5% Quick Service 13.2% Car Washes 12.9% Medical / Dental 11.7% Auto Service 8.2% C-Stores 6.8% Casual Dining 6.4% Equipment Rental & Sales 3.5% Family Dining 2.5% Other Services 2.4% Pet Care Services 1.8% Health and Fitness 4.6% En
Slide 8: Top Tenants, Diversification by Industry, Portfolio Summary
Investor Presentation – November 20217 Top 10 Tenants Diversification by Industry Portfolio Summary Our Top 10 Tenants Operate 230 Properties and Represent 19.0% of Cash ABR Top 10 Tenants1 Properties % of Cash ABR 21 2.7% 74 2.3% 23 2.1% 13 1.9% 6 1.9% 16 1.7% 34 1.7% 19 1.6% 5 1.6% 19 1.5% Top 10
Slide 9: Disciplined Underwriting Leading to Healthy Portfolio Metrics
Investor Presentation – November 20218 Disciplined Underwriting Leading to Healthy Portfolio Metrics 98.4% of Unit-Level Reporting Provides (Near) Real-Time Tenant Visibility 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20 21 20 22 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
Slide 10: Investment Activity
Investor Presentation – November 20219 1. Includes investments in mortgage loans receivable. 2. Cash ABR for the first full month after the investment divided by the gross investment in the property plus transaction costs. 3. GAAP rent and interest income for the first twelve months after the invest
Slide 11: Active Asset Management
Investor Presentation – November 202110 $15,229 $19,571 $3,420 $19,595 $39,042 $25,197 $19,578 $10,089 $0 $10,000 $20,000 $30,000 $40,000 D is p o s it io n A ct iv it y ($ 0 00 s )1 Active Asset Management Proactive Asset Management Mitigates Risk and Maximizes Risk-Adjusted Returns Dispositions Ha
Slide 12: Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth
Investor Presentation – November 202111 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 deb
Slide 13: Flexible Debt Structure
Investor Presentation – November 202112 Flexible Debt Structure No Significant Debt Maturities Until 2024 Debt Maturity Schedule1 Our $400mm Unsecured Revolving Line of Credit had $0mm Outstanding1 3 1. As of September 30, 2021. • Well-Laddered Debt Maturities: Weighted average debt maturity is 6.4
Slide 14: Peer comparison: unit-level coverage, lease term, industries
Investor Presentation – November 202113 4.6x 3.5x 3.5x 3.0x 2.7x 2.7x 2.6x NR NR 81% 75% 36% 35% 34% 23% 19% 19% 18% 4% 4% 7% 9% 12% 13% 14% 17% 23% 100% 100% 95% 71% 66% 48% 47% 39% 28% 13.5 Weighted Average Lease Term (# of Years) 13.9 9.6 10.6 9.5 8.8 10.3 10.6 8.8 Strong Unit-Level Coverage3 & T
Slide 15: Peer AFFO per share multiples and growth
Investor Presentation – November 202114 13.1% 8.3% 8.0% 7.8% 6.3% 5.9% 5.5% 4.4% 2.1% 23.2x 20.4x 20.4x 20.2x 19.1x 17.9x 17.1x 15.4x 15.0x 17.1% 13.1% 11.5% 8.5% 8.4% 7.2% 7.0% 5.2% 4.9% 20.5x 19.2x 19.0x 18.7x 18.1x 16.6x 16.3x 15.1x 14.2x 2021E AFFO per Share Multiple1 2021E AFFO per Share Growth
Slide 16: Appendix
+ Appendix
Slide 17: Income statement and AFFO reconciliation
Investor Presentation – November 202116 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $233, $99, $464 and $356 for the three and nine months ended September 30, 2021 and 2020, respectively. 2. Includes reimbursable income from the Company’s
Slide 18: FFO and AFFO reconciliation
Investor Presentation – November 202117 1. During the nine months ended September 30, 2021, includes a make-whole payment of $2,543 and the write-off of $1,873 of deferred financing costs. 2. Includes non-recurring expenses of $39 related to reimbursement of executive relocation costs during the thr
Slide 19: Financial Summary – 3Q'21 Consolidated Balance Sheets
Investor Presentation – November 202118 Financial Summary – 3Q’21 Consolidated Balance Sheets (in thousands, except share and per share amounts) September 30, 2021 December 31, 2020 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 925,622 $ 741,254
Slide 20: Financial Summary – 3Q'21 GAAP Reconciliations to EBITDAre, NOI
Investor Presentation – November 202119 Financial Summary – 3Q’21 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 re-leasing activity, investments in and dispositions of real estate made
Slide 21: Market Capitalization, Debt Summary and Leverage Metrics
Investor Presentation – November 202120 Financial Summary – 3Q’21 Market Capitalization, Debt Summary and Leverage Metrics 1. Our revolving credit facility provides a maximum aggregate initial original principal amount of up to $400 million and includes an accordion feature to increase, subject to c
Slide 22: Glossary Supplemental Reporting Measures
Investor Presentation – November 202121 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”
Slide 23: Glossary Supplemental Reporting Measures
Investor Presentation – November 202122 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 imp
Slide 24: Glossary: Adjusted EBITDAre / NOI / Cash NOI
Investor Presentation – November 202123 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 q
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