18 slides from Essential Properties Realty Trust's earnings presentation, Feb 15, 2024
Slide 1: Supplemental Information Fourth Quarter 2023
Supplemental Information Fourth Quarter 2023 0 Supplemental Information | As of December 31, 2023
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 December 31, Year Ended December 31, (in thousands, except share and per share data) 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (audited) Revenues: Rental revenue1,2 $ 92,937 $ 70,101 $ 339,897 $ 269,827 Interest
Slide 4: Funds from Operations and Adjusted Funds from Operations
Financial Summary Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) Three Months Ended December 31, Year Ended December 31, (unaudited, in thousands except per share amounts) 2023 2022 2023 2022 Net income $ 49,271 $ 35,521 $ 191,415 $ 134,742 Depreciation and amortization of rea
Slide 5: Consolidated Balance Sheets
Financial Summary Consolidated Balance Sheets (in thousands, except share and per share amounts) December 31, 2023 December 31, 2022 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 1,542,302 $ 1,228,687 Building and improvements 2,938,012 2,440,630
Slide 6: GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Run Rate Metrics
Financial Summary GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics Three Months Ended (unaudited, in thousands) December 31, 2023 Net income $ 49,271 Depreciation and amortization 27,440 Interest expense 15,760 Interest income (595) Income tax expense 164 EBITDA 92
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) December 31, 2023 Rate Wtd. Avg. Maturity Unsecured debt: February 2027 term loan1 $ 430,000 2.4% 3.1 years January 2028 term loan1 400,000 4.6% 4.1 years February 20
Slide 8: Investment Summary
Net Investment Activity Investment Summary $360,000 $328,370 $314,865 $320,000 $277,361 Activity ($000s) $280,000 $237,795 Investment $240,000 $207,147 $213,327 $195,454 $200,000 $175,738 $160,000 $120,000 $80,000 $40,000 $0 Investments1 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 Number of Tran
Slide 9: Disposition Summary
Net Investment Activity Disposition Summary $80,000 $75,522 Activity ($000s)1 $70,000 Disposition $60,000 $50,000 $41,736 $35,513 $37,161 $40,000 $30,602 $26,091 $28,496 $30,000 $18,443 $20,000 $10,000 $0 Dispositions 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 Realized Gain/(Loss)1,2 0.4% 38.6%
Slide 10: Portfolio Highlights
Portfolio Summary Portfolio Highlights As of December 31, 2023 Investment Properties (#)1 1,873 Square Footage (mm) 18.7 Tenants (#) 374 Concepts (#) 588 Industries (#) 16 States (#) 48 Weighted Average Remaining Lease Term (Years) 14.0 Triple-Net Leases (% of Cash ABR) 95.9% Master Leases (% of Cas
Slide 11: Tenant and Industry Diversification
Portfolio Summary Tenant and Industry Diversification Top 10 Tenants Diversification by Industry % of Cash Type of Cash ABR % of Cash # of Building Rent Per Top 10 Tenants1 Properties2 ABR Tenant Industry Business (#039;000s) ABR Properties2 SqFt3 SqFt3 Car Washes Service $ 55,177 15.1% 179 887,863 $ 6
Slide 12: Portfolio Health
Portfolio Summary Portfolio Health Tenant Financial Reporting Requirements % of Cash ABR by Unit-Level Coverage Tranche1 % of Cash < 1.00x: Reporting Requirements ABR 3.1% Unit-Level Financial Information 98.8% 1.00x to Corporate-Level Financial Reporting 98.8% 1.49x: 9.9% Both Unit-Level and Corpor
Slide 13: Leasing Expiration Schedule, Leasing Activity and Statistics
Leasing Summary Leasing Expiration Schedule, Leasing Activity and Statistics Annual Lease Expiration by Cash ABR Leasing Activity – Trailing 12 Months Cash ABR % of # of Wgt. Avg. Lease Terminated Leases Re-Leased Total Year1 ($’000)s Cash ABR Properties2 Coverage3 $(000)s Renewals Without Vacancy A
Slide 14: Same-Store Analysis
Leasing Summary Same-Store Analysis Same-Store Portfolio Performance1 Contractual Cash Rent ($000s) 2 % Type of Business 4Q’22 4Q’23 Change Service $ 52,191 $ 52,958 1.5% Experience 8,112 8,247 1.7% Retail 2,810 2,821 0.4% Industrial 1,663 1,691 1.7% Total Same-Store Rent $ 64,777 $ 65,717 1.5% Trai
Slide 15: Lease Escalations
Leasing Summary Lease Escalations Lease Escalation Frequency Lease Escalation Type Weighted Average CPI 2.4% Flat 1.3% Lease Escalation Frequency % of Cash ABR Annual Escalation Rate1,2 Annually 81.9% 1.7% Every 2 years 1.1% 1.5% Every 3 years 0.2% 0.0% Every 4 years 0.2% 1.0% Every 5 years 12.9% 1.
Slide 16: 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 17: 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 18: Glossary: Supplemental Reporting Measures
Glossary Supplemental Reporting Measures Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI Initial Portfolio We further adjust EBITDAre, NOI and Cash NOI i) based on an estimate Initial Portfolio means our acquisition of a portfolio of 262 net leased calculated as if all re-leasing, investment an