Essential Properties Realty Trust, Inc. · NYSE:EPRT
Essential Properties Realty Trust — ESG Presentation (March 2023)
36 slides from Essential Properties Realty Trust's sustainability presentation, Mar 7, 2023
Slide 1: Environmental, Social, and Governance 2022 Corporate Responsibility Report
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE 2022 CORPORATE RESPONSIBILITY REPORT Exhibit 99.1
Slide 2: Table of Contents
Introduction ..................................................................................... 3 Letter from Our Chairman and Our CEO ................................................ 3 EPRT Overview ................................................................................. 4 EPRT Business
Slide 3: Letter from Our Chairman and Our CEO
To our fellow Stakeholders, On behalf of our Board of Directors and our dedicated team of professionals at Essential Properties Realty Trust, Inc. (‘EPRT’ or the ‘Company’), we are pleased to present EPRT’s inaugural Corporate Responsibility Report for the year ended December 31, 2022 (the ‘2022 Cor
Slide 4: EPRT Overview
EPRT OVERVIEW [ '
Slide 5: EPRT Business Overview
Essential Properties (‘EPRT’) is a triple-net lease REIT headquartered in Princeton, New Jersey with a team of nearly 40 dedicated and diverse professionals. EPRT acquires, owns, and manages primarily single-tenant properties leased to middle-market companies operating primarily service-oriented and
Slide 6: Business History and Approach
We completed our initial public offering (‘IPO’) in June 2018 and qualified to be taxed as a REIT. As of December 31, 2022, 93% of our approximately $300 million of annualized base rent (“ABR”) was attributable to properties operated by tenants in service-oriented and experience-based businesses. Ou
Slide 7: Key 2022 Figures and Highlights
KEY 2022 FIGURES AND HIGHLIGHTS TENANT INDUSTRY DIVERSIFICATION 1,653 79.8% 350 4.0% 48 13.2% 99.9% 3.0% Properties Service Tenants Retail States Experience Leased Other Industrial *Metrics as of 12/31/2022 13.2% Car Washes 12.8% Early Childhood Education 11.6% Quick Service Restaurants 11.1% Medica
Slide 8: Our Investment Strategy
OUR INVESTMENT STRATEGY 85.8% 39.2% We acquire, own, and manage single-tenant properties that are net leased to middle-market companies operating primarily in service-oriented or experience-based businesses. It is our guiding principle that properties leased to tenants in these businesses are essent
Slide 9: Environmental, Social, and Governance (ESG)
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) We believe that responsible and effective corporate governance, a positive corporate culture, good corporate citizenship, and the promotion of sustainability initiatives are critical to our ability to create long- term stockholder value. Our approach to ES
Slide 10: Our ESG Strategy
Accountability and Transparency EPRT is committed to strong corporate governance. As stewards of our stockholder’s capital, we are committed to accountability and transparency regarding our ESG efforts. Reducing our Carbon Footprint Implement sustainability upgrades at our properties to reduce our c
Slide 11: 2022 ESG Highlights
2022 ESG HIGHLIGHTS Dedicated Resource Hired a Director of Sustainability to implement our ESG strategy IMPLEMENTED GREEN LEASE Nearly 80% of our property investments in 2022 are subject to our Green Lease, which provides us with the contractual right to install sustainability improvements at our pr
Slide 12: Governance
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Slide 13: Board Composition
8 Directors 3 New Directors in 2020 3 Female Directors 1 Director Board Independence BOARD COMPOSITION 78+22 40+6060+40 13+877 38%3.9 13% Independent FemaleYrs Avg Tenure Diverse INDEPENDENCE TENURE GENDER DIVERSITY RACIAL_ETHNIC DIVERSITY Board Tenure Board Diversity We value gender and racial-ethn
Slide 14: Corporate Governance Policies
VENDOR CODE OF CONDUCT We have a Vendor Code of Conduct that established that we are committed to conducting our business in accordance with the highest ethical standards and in compliance with all applicable laws, rules, and regulations. Vendors are expected to have similar standards. NO HEDGING OR
Slide 15: ESG Oversight
ESSENTIAL PROPERTIES HAS AN ACTIVE AND ENGAGED NOMINATING AND CORPORATE GOVERNANCE COMMITTEE The Nominating and Corporate Governance Committee (‘Nom Gov Committee’) of our Board, which is chaired by an independent director, oversees our efforts to promote environmental stewardship; our responsibilit
Slide 16: Environmental
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Slide 17: Environmental Stewardship and Assessing Climate Risk
ENVIRONMENTAL STEWARDSHIP ASSESSING CLIMATE RISK We recognize that our commercial real estate assets can substantially impact the environment and the health and safety of building occupants. We believe that being aware of and addressing these issues are important aspects of maintaining a successful
Slide 18: Reducing Our Operational Footprint
REDUCING OUR OPERATIONAL FOOTPRINT In addition to assisting our tenants with their sustainability initiatives, we recognize that EPRT has a carbon footprint that we are committed to reducing. Our headquarters building is certified under the EPA’s ENERGY STAR certification program, using 35% less ene
Slide 19: Green Leasing
The properties in our portfolio are leased to our tenants generally under long-term triple net leases, which give our tenants exclusive control over the property and the decision to institute energy conservation and environmental management programs at our properties. Generally, our leases require t
Slide 20: Sustainability Partnership with Budderfly
SUSTAINABILITY PARTNERSHIP WITH BUDDERFLY In September 2022, we entered a partnership with Budderfly Inc., the fastest growing Energy-Efficiency-as-a-Service ("EEaaS") provider in the United States. The Essential Sustainability Partnership intends to deploy significant energy infrastructure improvem
Slide 21: Environmental Performance and Goals
Published our first Corporate Responsibility Report aligned with the SASB standard and TCFD framework as part of FY’22 year-end reporting. 2022 ENVIRONMENTAL PERFORMANCE Engaged an ESG advisory firm, HXE Partners, to support us in executing our ESG strategy. Hired a Director of Sustainability to imp
Slide 22: Social
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Slide 23: Our Employees
At Essential Properties we seek to provide a dynamic, rewarding work environment that promotes the retention and career development of our employees and is a differentiating factor in our ability to attract new talent. We strive to offer our employees attractive and equitable compensation, regular o
Slide 24: Diversity and Inclusion
DIVERSITY AND INCLUSION At Essential Properties we value diversity and inclusion. We have built a diverse and inclusive culture that encourages, supports, and celebrates our employees' diverse voices and experiences. We believe a diverse employee base enhances our execution as a company, encourages
Slide 25: Human Capital Management
HUMAN CAPITAL MANAGEMENT The following highlights certain key aspects of our commitment to our employees: ATTRACTIVE COMPENSATION Our approach to compensation includes an attractive market-based base salary and annual incentive compensation with the following additional elements: ƒ Equity incentive
Slide 26: Internship Program and Employee Engagement
INTERNSHIP PROGRAM We are committed to developing talented individuals through our paid college internship program by providing career learning opportunities and an introduction to our business to students at the outset of their careers. In 2022, we had five individuals work as interns at the Compan
Slide 27: Community Impact
COMMUNITY IMPACT We are committed to improving the community around us, and we believe that giving back is an important part of being a responsible corporate citizen. We actively support many organizations in the greater Princeton, New Jersey area surrounding our corporate headquarters, and we encou
Slide 28: About This Report and Indices
ABOUT THIS REPORT AND INDICES
Slide 29: About This Report: Forward Looking Statements
ABOUT THIS REPORT FORWARD LOOKING STATEMENTS This presentation may contain 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 30: SASB Framework
SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) FRAMEWORK The Sustainability Accounting Standards Board (SASB) enables businesses around the world to identify, manage, and communicate financially-material sustainability information to their investors. SASB provides a complete set of globally applic
Slide 31: SASB Framework: Water Management
TOPIC CODE DESCRIPTION RESPONSE Water Management IF-RE-140a.1 Water withdrawal data coverage as a percentage of (1) total floor area and (2) floor area in regions with High or Extremely High Baseline Water Stress, by property subsector Not disclosed at this time. IF-RE-140a.2 (1) Total water withdra
Slide 32: SASB Framework: Climate Change Adaptation and Activity Metrics
TOPIC CODE DESCRIPTION RESPONSE Climate Change Adaptation IF-RE-450a.1 Area of properties located in 100-year flood zones, by property subsector We have not performed flood risk assessments for our entire portfolio. IF-RE- 450a.2 Description of climate change risk exposure analysis, degree of system
Slide 33: Task Force on Climate-Related Financial Disclosures (TCFD)
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) The Financial Stability Board Task Force on Climate-related Financial Disclosures is a market-driven initiative, set up to develop a set of recommendations for voluntary and consistent climate-related financial risk disclosures in mainstream
Slide 34: TCFD: Strategy, Risk Management, Metrics and Targets
PILLAR TOPIC REFERENCE Strategy Resilience of strategy using 2-degree or lower scenarios We do not currently employ scenario analysis in our strategy. Risk Management Process to assess climate- related risks We are still finalizing our process for assessing climate-related risks. Process to manage c
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Slide 36: Headquarters and Contact
Headquarters 902 Carnegie Center Boulevard, Suite 520 Princeton, New Jersey 08540 Contact 609-436-0619 info@essentialproperties.com www.essentialproperties.com
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