Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Q2 2020 Earnings Presentation
20 slides from Essential Properties Realty Trust's earnings presentation, Aug 5, 2020
Slide 1: Supplemental Operating & Financial Data Second Quarter Ended June 30, 2020
Supplemental Operating & Financial Data Second Quarter Ended June 30, 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 June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Rental revenue1,2 $ 36,465 $ 32,111 $ 76,007 $ 62,884 Interest o
Slide 4: Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
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) 2020 2019 2020 2019 Net income $ 10,444 $ 10,571 $ 24,488 $ 19,294 Depreciation and amortization of real es
Slide 5: Consolidated Balance Sheets
Financial Summary Consolidated Balance Sheets June 30, 2020 December 31, 2019 (in thousands, except share and per share amounts) (unaudited) (audited) ASSETS Investments: Real estate investments, at cost: Land and improvements $ 646,445 $ 588,279 Building and improvements 1,341,421 1,224,682 Lease i
Slide 6: GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics
Financial Summary GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics Three Months Ended (unaudited, in thousands) June 30, 2020 Net income $ 10,444 Depreciation and amortization 13,464 Interest expense 7,403 Interest income (144) Income tax expense 70 EBITDA 31,237 P
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, 2020 Rate Maturity1 Secured debt: Series 2017-1, Class A $ 159,491 4.10% 4.0 years Series 2017-1, Class B 15,669 5.11% 4.0 years Total secured debt 175,160 4
Slide 8: Investment Summary
Net Investment Activity Investment Summary $240,000 $204,709 $190,280 $200,000 $173,590 $167,490 $160,000 $133,745 $118,187 $120,000 $103,660 Investment $80,000 Activity Activity ($000s) $42,369 $40,000 $0 Investments 3Q 2018 4Q 2018 1Q 2019 2Q 20196 3Q 20197 4Q 20198 1Q 20209 2Q 2020 Number of Tran
Slide 9: Disposition Summary
Net Investment Activity Disposition Summary $30,000 $26,804 1 $25,000 $19,406 $19,542 $19,495 $19,571 $20,000 $15,229 $15,000 $10,480 Disposition $10,000 Activity Activity ($000s) $5,000 $3,420 $0 Dispositions 3Q 2018 4Q 2018 1Q 2019 2Q 20197 3Q 2019 4Q 2019 1Q 2020 2Q 2020 6 5 Realized Gain/(Loss)1
Slide 10: Portfolio Highlights
Portfolio Summary Portfolio Highlights As of June 30, 2020 Investment Properties (#)1 1,060 Square Footage (mm) 8.5 Tenants (#) 215 Concepts (#) 289 Industries (#) 16 States (#) 43 Weighted Average Remaining Lease Term (Years) 14.6 Triple-Net Leases (% of Cash ABR) 93.8% Master Leases (% of Cash ABR
Slide 11: Tenant and Industry Diversification
Portfolio Summary Tenant and Industry Diversification Top 10 Tenant Exposure Diversification by Industry % of Cash Type of Cash ABR % of Cash # of Building Rent Per Top 10 Tenants1 Properties ABR Tenant Industry Business ($'000s) ABR Properties2 SqFt SqFt3 Quick Service Service $ 23,037 14.3% 314 83
Slide 12: Portfolio Health
Portfolio Summary Portfolio Health Tenant Financial Reporting % of Cash ABR by Unit-Level Coverage Tranche1 < 1.00x % of Cash 3.2% Tenant Financial Reporting Requirements ABR 1.00x to Unit-Level Financial Information 98.3% 1.49x 9.8% Corporate-Level Financial Reporting 98.7% Both Unit-Level and Corp
Slide 13: Leasing Expiration Schedule, Lease Renewal Activity and Statistics
Leasing Summary Leasing Expiration Schedule, Lease Renewal Activity and Statistics Annual Lease Expiration by Cash ABR Leasing Activity – Trailing 12 Months Cash % of # of Wgt. Avg. Lease Terminated Leases Re-Leased Total Year1 ABR Cash ABR Properties2 Coverage3 $(000)s Renewals Without Vacancy Afte
Slide 14: Same-Store Analysis
Leasing Summary Same-Store Analysis Defined Terms Same-Store Portfolio Performance Same-Store Portfolio: Contractual Cash Rent ($000s) % All properties owned, excluding new sites Type of Business 2Q 2020 2Q 2019 Change under construction, for the entire same-store Service $ 20,101 $ 19,996 0.5% Expe
Slide 15: Lease Escalations
Leasing Summary Lease Escalations Lease Escalation Frequency Lease Escalation Type Weighted Average Flat Lease Escalation Frequency % of Cash ABR Annual Escalation Rate1,2 0.9% CPI- Annually 78.6% 1.6% Based Every 2 years 2.4 1.4 4.4% Every 3 years 0.9 1.5 Every 4 years 0.5 0.8 Every 5 years 12.9 1.
Slide 16: COVID-19 Impact on Portfolio: Operating Stats, Rent Collection and Deferral
COVID-19 Impact on Portfolio Portfolio Operating Stats, Rent Collection and Deferral Information Reported Period April May June 2Q 2020 July Portfolio % Open 48% 61% 73% -- 80% % Limited 23% 21% 16% -- 13% % Closed 29% 18% 11% -- 7% % Open + % Limited 71% 82% 89% -- 93% Rent Collection1 Paid 68% 67%
Slide 17: COVID-19 Impact on Portfolio: Tenant Industry Breakdown
COVID-19 Impact on Portfolio Tenant Industry Breakdown % of July Projected Level of % of Total % of Total Tenant Industry % of ABR1,2 % Open2 % Limited2 % Closed2 ABR1 Recovery Impact Closed ABR1,2 Deferred Rent Collected Quick Service Fast Light 14.3% 16% 81% 3% 7% 90% 6% Child Care Moderate Severe
Slide 18: 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 19: 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 20: Glossary: Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI
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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