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 26, 2023
Slide 1: Second Quarter 2023 Supplemental Information
Supplemental Information | As of June 30, 20230 Exhibit 99.2 Second Quarter 2023 Supplemental Information
Slide 2: Table of Contents
Supplemental Information | As of June 30, 20231 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 S
Slide 3: Consolidated Statements of Operations
Supplemental Information | As of June 30, 20232 l t l I f r ti | s f J , 2 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $144, $159, $320 and $315 for the three and six months ended June 30, 2023 and 2022, respectively. 2. Includes reimburs
Slide 4: Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
Supplemental Information | As of June 30, 20233 l t l I f r ti | s f J , 3 1. During the three and six months ended June 30, 2023, includes $0.2 million of severance expense and non-cash compensation expense in connection with the departure of one of our junior executives; during the six months ende
Slide 5: Consolidated Balance Sheets
Supplemental Information | As of June 30, 20234 l t l I f r ti | s f J , 4 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 improvement
Slide 6: GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics
Supplemental Information | As of June 30, 20235 l t l I f r ti | s f J , 5 Financial Summary GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics 1. Adjustment made to reflect EBITDAre, NOI and Cash NOI as if all re-leasing activity, investments in and dispositions of
Slide 7: Market Capitalization, Debt Summary and Leverage Metrics
Supplemental Information | As of June 30, 20236 l t l I f r ti | s f J , 6 Financial Summary Market Capitalization, Debt Summary and Leverage Metrics 1. Rates presented for our term loans are fixed at the stated rates after giving effect to our interest rate swaps, applicable margin of 85bps and SOF
Slide 8: Net Investment Activity: Investment Summary
Supplemental Information | As of June 30, 20237 $230,755 $322,203 $237,795 $175,738 $195,454 $328,370 $207,147 $277,361 $0 $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 $320,000 $360,000 In ve st m en t Ac tiv ity ($ 00 0s ) Net Investment Activity Investment Summary 1. Includes inves
Slide 9: Net Investment Activity: Disposition Summary
Supplemental Information | As of June 30, 20238 $10,089 $4,466 $18,443 $26,091 $35,513 $75,522 $37,161 $41,736 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 D is po si tio n Ac tiv ity ($ 00 0s )1 Net Investment Activity Disposition Summary 1. Includes the impact of transaction
Slide 10: Portfolio Highlights
Supplemental Information | As of June 30, 20239 Portfolio Summary Portfolio Highlights 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%
Slide 11: Tenant and Industry Diversification
Supplemental Information | As of June 30, 202310 Top 10 Tenants1 Properties2 % of Cash ABR 40 3.6% 6 1.7% 10 1.7% 77 1.7% 6 1.7% 16 1.5% 12 1.4% 21 1.4% 17 1.4% 13 1.4% Top 10 Tenants 218 17.5% Total 1,742 100.0% Portfolio Summary Tenant and Industry Diversification Top 10 Tenants Diversification by
Slide 12: Portfolio Health
Supplemental Information | As of June 30, 202311 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% C C C + B- B B+ BB - BB BB + BB B- BB B BB B+ A- A A+ AA - % o f C as h AB R < 1.00x 1.00 to 1.49x 1.50 to 1.99x ≥ 2.00x NR ≥ 2.00x 73.3% Not Reported 1.7% 1.50x to 1.99x 12.1% 1.00x to 1.49x 9.8% < 1.00x 3.1% Po
Slide 13: Leasing Expiration Schedule, Leasing Activity and Statistics
Supplemental Information | As of June 30, 202312 Cash ABR % of # of Wgt. Avg. Lease Terminated Leases Re-Leased Total Year1 ($’000)s Cash ABR Properties2 Coverage3 $(000)s Renewals Without Vacancy After Vacancy Leasing 2023 746 0.2% 10 3.8x Prior Cash ABR $ 402 $ 4,181 $ 156 $ 4,739 2024 5,091 1.5%
Slide 14: Same-Store Analysis
Supplemental Information | As of June 30, 202313 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%
Slide 15: Lease Escalations
Supplemental Information | As of June 30, 202314 Contractual Fixed 95.9% CPI 2.6% Flat 1.5% Leasing Summary Lease Escalations 1. Based on cash ABR as of June 30, 2023. 2. Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occur annually. For leases i
Slide 16: Glossary: Supplemental Reporting Measures
Supplemental Information | As of June 30, 202315 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 (“
Slide 17: Glossary: Supplemental Reporting Measures
Supplemental Information | As of June 30, 202316 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 e
Slide 18: Glossary: Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI
Supplemental Information | As of June 30, 202317 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 dur
Essential Properties Realty Trust — Q2 2023 Earnings Presentation on 6ix