Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — Investor Presentation (May 2022)
25 slides from Essential Properties Realty Trust's investor presentation, May 10, 2022
Slide 1: May 2022 Presentation
May 2022 Presentation Exhibit 99.1
Slide 2: Disclaimer
Investor Presentation – May 20221 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,” “p
Slide 3: Investment Highlights
Investor Presentation – May 20222 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 • Disciplined a
Slide 4: Stable Net Lease Portfolio
Investor Presentation – May 20223 Stable Net Lease Portfolio1 • Stable Portfolio1: 100% occupied with no tenants on non-accrual / cash accounting • Solid Coverage: Unit-level rent coverage of 3.8x with 99% of ABR required to report unit-level P&Ls • De-Minimis Near-Term Expirations: <5.0% of ABR exp
Slide 5: Service-Oriented & Experience-Based Industries
Investor Presentation – May 20224 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 Longer lea
Slide 6: Seek to be the Capital Provider of Choice
Investor Presentation – May 20225 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 March 31, 2022 tha
Slide 7: New Vintage Portfolio is Focused on Targeted Industries
Investor Presentation – May 20226 New Vintage Portfolio is Focused on Targeted Industries Our Portfolio is the Result of a Disciplined Adherence to Investing in Properties Leased to Service-Oriented and Experience-Based Businesses with Unit-Level Reporting Investment Properties (#)1 1,545 Square Foo
Slide 8: Top Tenant Concentration
Investor Presentation – May 20227 Top 10 Tenant Concentration Our Top 10 Tenants Operate 209 Properties and Represent 19.2% of Cash ABR Top 10 Tenants1 Properties2 % of Cash ABR 28 3.3% 75 2.0% 16 1.9% 23 1.9% 5 1.8% 17 1.7% 13 1.7% 6 1.7% 9 1.6% 17 1.5% Top 10 Tenants 209 19.2% Total 1,545 100.0% T
Slide 9: Disciplined Underwriting Leading to Healthy Portfolio Metrics
Investor Presentation – May 20228 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 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 20 22 20 23 20 24 20 25 20 26 20 27 20 28 20 29 20 30 20 31 20 3
Slide 10: Established and Proven Investment Infrastructure
Investor Presentation – May 20229 $42,369 $148,877 $244,078 $197,816 $223,186 $230,755 $322,203 $237,795 $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 ) Established and Proven Investment Infrastructure Scalable Platform Allows f
Slide 11: Active Asset Management
Investor Presentation – May 202210 $3,420 $19,595 $39,042 $25,197 $19,578 $10,089 $4,466 $18,443 $0 $10,000 $20,000 $30,000 $40,000 D is po si tio n Ac tiv ity ($ 00 0s )1 Active Asset Management Proactive Asset Management Mitigates Risk and Maximizes Risk-Adjusted Returns 1. Includes the impact of
Slide 12: Annual Rent Escalations Provide Dependable Internal Rent Growth
Investor Presentation – May 202211 Contractual Fixed 94.0% CPI 3.5% Flat 2.5% Leasing Summary Annual Rent Escalations Provide Dependable Internal Rent Growth ease Escalations 1. Based on cash ABR as of March 31, 2022. 2. Represents the weighted average annual escalation rate of the entire portfolio
Slide 13: Low Leverage and Ample Liquidity to Drive Robust AFFO/sh Growth
Investor Presentation – May 202212 20.7% 12.9% 8.8% 8.7% 8.2% 7.3% 6.7% 6.7% 6.6% 5.2% 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
Slide 14: Flexible Debt Structure
Investor Presentation – May 202213 $600 $200 $430 $400 0 100 200 300 400 500 600 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 M at ur in g Pr in ci pa l B al an ce ($ m m ) Outstanding Revolving Credit Facility Revolving Credit Facility Availability Five-Year Unsecured Term Loan Seven-Year Unse
Slide 15: Differentiated Net Lease Investment Opportunity
Investor Presentation – May 202214 4% 5% 9% 9% 14% 16% 18% 18% 20% 24% 4.7x 4.6x 3.8x 3.2x 2.9x 2.7x 2.6x NR NR NR 79% 75% 53% 36% 33% 28% 21% 19% 18% 17% 100% 100% 93% 71% 64% 47% 47% 40% 28% 16% Differentiated Net Lease Investment Opportunity Portfolio Mix and Underlying Fundamentals are Favorable
Slide 16: Relative Valuation
Investor Presentation – May 202215 13.1% 7.6% 5.1% 4.9% 4.8% 4.5% 4.3% 4.3% 4.0% 2.4% 17.9x 17.6x 16.5x 15.7x 14.6x 13.7x 13.5x 12.2x 12.1x 11.3x 16.9x 15.9x 15.8x 14.9x 13.5x 13.2x 13.2x 11.7x 11.6x 10.8x 2022E AFFO per Share Multiple1 2022E AFFO per Share Growth2 Source: Public filings, FactSet an
Slide 17: Appendix
Appendix
Slide 18: Financial Summary – 1Q'22 Consolidated Statements of Operations
Investor Presentation – May 202217 Financial Summary – 1Q’22 Consolidated Statements of Operations 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $156 and $169 for the three months ended March 31, 2022 and 2021, respectively. 2. Includes rei
Slide 19: Financial Summary – 1Q'22 FFO and AFFO
Investor Presentation – May 202218 Financial Summary – 1Q’22 Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) 1. During the three months ended March 31, 2022, includes fees and the write-off of deferred financing costs associated with the Company’s amendment to the credit and te
Slide 20: Financial Summary – 1Q'22 Consolidated Balance Sheets
Investor Presentation – May 202219 Financial Summary – 1Q’22 Consolidated Balance Sheets (in thousands, except share and per share amounts) March 31, 2022 December 31, 2021 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 1,083,007 $ 1,004,154 Build
Slide 21: GAAP Reconciliations to EBITDAre, NOI and Cash NOI
Investor Presentation – May 202220 Financial Summary – 1Q’22 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 investments, dispositions and re-leasing activity of real estate made during
Slide 22: Market Capitalization, Debt Summary and Leverage Metrics
Investor Presentation – May 202221 Financial Summary – 1Q’22 Market Capitalization, Debt Summary and Leverage Metrics 1. The Company’s revolving credit facility provides a maximum aggregate initial original principal amount of up to $600 million and includes an accordion feature to increase, subject
Slide 23: Glossary Supplemental Reporting Measures and Other Terms
Investor Presentation – May 202222 Glossary Supplemental Reporting Measures and Other Terms 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 24: Glossary Supplemental Reporting Measures and Other Terms
Investor Presentation – May 202223 Glossary Supplemental Reporting Measures and Other Terms 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
Slide 25: Glossary Supplemental Reporting Measures and Other Terms
Investor Presentation – May 202224 Glossary Supplemental Reporting Measures and Other Terms 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
Essential Properties Realty Trust — Investor Presentation (May 2022) on 6ix