Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (September 2021)
24 slides from Essential Properties Realty Trust's investor presentation, Sep 14, 2021
Slide 1: September 2021 Investor Presentation
September 2021 Presentation Exhibit 99.1
Slide 2: Disclaimer
Investor Presentation – September 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 “expec
Slide 3: Investment Highlights
Investor Presentation – September 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 Signif
Slide 4: 3Q'21 Update
Investor Presentation – September 20213 3Q’21 Update • Investment Activity1: Completed ~$169mm of QTD investments at a 7.2% cash yield with another ~$67mm under PSA and ~$210mm under LOI • Investment Statistics2: Closed and probable3 investments are 89% sale-leaseback, 78% master leased and 94% prio
Slide 5: Service-Oriented & Experience-Based Industries
Investor Presentation – September 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/experienc
Slide 6: Seek to be the Capital Provider of Choice
Investor Presentation – September 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 June 30, 202
Slide 7: New Vintage Portfolio is Focused on Targeted Industries
Investor Presentation – September 20216 Quick Service 13.8% Car Washes 13.8% Early Childhood Education 13.6% Medical / Dental 12.5% Auto Service 8.2% C-Stores 7.5% Casual Dining 5.4% Equipment Rental and Sales 3.1% Family Dining 2.8% Pet Care Services 1.7% Other Services 1.4% Health and Fitness 4.7%
Slide 8: Top Tenants and Diversification by Industry
Investor Presentation – September 20217 Top 10 Tenants1 Properties % of Cash ABR 74 2.5% 17 2.4% 23 2.3% 13 2.1% 34 1.8% 5 1.8% 19 1.7% 5 1.7% 19 1.6% 13 1.6% Top 10 Tenants 222 19.5% Total 1,325 100.0% Top 10 Tenants Diversification by Industry 1. Represents tenant, guarantor or parent company. 2.
Slide 9: Unit-Level Coverage and Tenant Financial Reporting
Investor Presentation – September 20218 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 2 0 3 6 2 0 3 7 2 0 3 8 T h e re a ft e r % o f C a s h A B R < 1.00x 1.00 to 1.49x 1.50 to 1.99x ≥ 2.00x
Slide 10: Investment Activity
Investor Presentation – September 20219 $173,590 $204,709 $167,490 $42,369 $148,877 $244,078 $197,816 $221,834 $0 $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 In v e s tm e n t A c ti v it y ( $ 0 0 0 s ) 1. Includes investments in mortgage loans receivable. 2. Cash ABR for the first
Slide 11: Active Asset Management: Dispositions
Investor Presentation – September 202110 $19,495 $15,229 $19,571 $3,420 $19,595 $39,042 $25,197 $19,578 $0 $10,000 $20,000 $30,000 $40,000 D is p o s it io n A c ti v it y ( $ 0 0 0 s )1 1. Includes transaction costs. 2. Gains/(losses) based on our initial purchase price. 3. Cash ABR at time of sale
Slide 12: Low Leverage and Ample Liquidity to Drive AFFO/sh Growth
Investor Presentation – September 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: Balance sheet has no secured debt, and asset base is 100% unencumbered • Flexible Debt Struct
Slide 13: Flexible Debt Structure
Investor Presentation – September 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 June 30, 2021. • Well-Laddered Low-Cost Debt: Our weighted average debt maturity is 6.7 ye
Slide 14: Peer Comparison
Investor Presentation – September 202113 4.4x 3.3x 3.2x 3.0x 2.7x 2.7x 2.7x 2.6x NA NA NA 4% 4% 6% 9% 13% 16% 18% 25% 31% 83% 78% 37% 36% 35% 27% 22% 20% 18% 18% 100% 99% 95% 73% 64% 48% 42% 42% 42% 27% 8.9 Weighted Average Lease Term (# of Years) 14.0 14.0 9.7 10.4 9.7 10.1 10.6 8.8 8.5 Strong Unit
Slide 15: AFFO per Share Multiple and Growth
Investor Presentation – September 202114 12.5% 7.7% 7.7% 6.8% 6.2% 5.5% 5.5% 5.1% 4.7% 2.1% 24.1x 20.7x 20.6x 19.2x 17.9x 17.5x 15.7x 15.4x 15.3x 14.8x 16.7% 12.2% 10.5% 8.3% 8.3% 7.2% 6.7% 5.1% 5.1% 4.5% 21.4x 19.4x 19.1x 18.1x 16.6x 16.6x 15.0x 15.0x 14.6x 14.0x 2021E AFFO per Share Multiple1 2021
Slide 16: Appendix
+ Appendix
Slide 17: Financial Summary – 2Q'21 Statements of Operations
Investor Presentation – September 202116 Financial Summary – 2Q’21 Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Rental revenue1
Slide 18: Financial Summary – 2Q'21 FFO and AFFO
Investor Presentation – September 202117 Financial Summary – 2Q’21 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) 2021 2020 2021 2020 Net income $ 23,400 $ 10,444 $ 38,775
Slide 19: Financial Summary – 2Q'21 Consolidated Balance Sheets
Investor Presentation – September 202118 Financial Summary – 2Q’21 Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2021 December 31, 2020 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 835,542 $ 741,254 Buil
Slide 20: GAAP Reconciliations to EBITDAre, NOI and Run Rate Metrics
Investor Presentation – September 202119 Financial Summary – 2Q’21 GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics Three Months Ended (unaudited, in thousands) June 30, 2021 Net income $ 23,400 Depreciation and amortization 17,184 Interest expense 7,811 Interest i
Slide 21: Market Capitalization, Debt Summary and Leverage Metrics
Investor Presentation – September 202120 Financial Summary – 2Q’21 Market Capitalization, Debt Summary and Leverage Metrics (dollars in thousands, except share and per share amounts) June 30, 2021 Rate Maturity Total secured debt $ — —% N/A Unsecured debt: $200mm term loan $ 200,000 3.26% 2.8 years
Slide 22: Glossary Supplemental Reporting Measures
Investor Presentation – September 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 – September 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 im
Slide 24: Glossary: Adjusted EBITDAre, NOI and Cash NOI
Investor Presentation – September 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
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