- First Quarter Net Income per Share of $0.28
and AFFO per Share of $0.42 - - Closed Investments of $248.8
million at an 8.1% Weighted Average Cash Cap Rate - - Updates 2024
AFFO Guidance to $1.72 to $1.75 per Share -
Essential Properties Realty Trust, Inc. (NYSE: EPRT; “Essential
Properties” or the “Company”) today announced operating results for
the three months ended March 31, 2024.
First Quarter 2024 Financial and Operating
Highlights:
Operating Results (compared to First
Quarter 2023):
• Investments (79 properties)
$ Invested
$248.8 million
Weighted Avg Cash Cap Rate
8.1%
• Dispositions (7 properties)
Net Proceeds
$11.9 million
Weighted Avg Cash Cap Rate
6.5%
• Net Income per Share
Decreased by 5%
$0.28
• Funds from Operations ("FFO") per
Share
Increased by 7%
$0.46
• Core Funds from Operations ("Core FFO")
per Share
Increased by 9%
$0.46
• Adjusted Funds from Operations ("AFFO")
per Share
Increased by 5%
$0.42
Debt, Equity & Leverage Update:
• Equity Raised (Gross) - Follow-On
Offering (March 14, 2024) (1)
$24.75/share
$256.2 million
• Equity Raised (Gross) - ATM Program
$24.17/share
$53.4 million
• Pro Forma Net Debt to Annualized
Adjusted EBITDAre (2)
As of Quarter End
3.6x
_______________
1.
All shares were sold on a forward
basis and 7,828,852 shares remain unsettled for estimated net
proceeds of $184.2 million.
2.
See page 12 for detailed
calculation.
Activity Subsequent to First Quarter 2024:
• Investments (20 properties)
$ Invested
$61.0 million
• Dispositions (2 properties)
$ Gross Proceeds
$1.3 million
CEO Comments
Commenting on the first quarter 2024 results, the Company's
President and Chief Executive Officer, Pete Mavoides, said, “The
year has started off on a positive note, with our highest first
quarter amount of investments since inception, reflecting favorable
competitive dynamics and the benefits of our differentiated
relationship-driven sale-leaseback platform. With a healthy
portfolio and strong tenant credit trends, coupled with our
conservative leverage position and strong liquidity, we are
well-positioned to continue to invest accretively. Our favorable
performance in the first quarter and a strong second quarter
investment pipeline provide us with the support to increase the
bottom end of our 2024 AFFO per share guidance range to $1.72 to
$1.75.”
Portfolio Highlights
The Company’s investment portfolio as of March 31, 2024 is
summarized as follows:
Number of properties
1,937
Weighted average lease term (WALT)
14.1 years
Weighted average rent coverage ratio
3.9x
Number of tenants
383
Number of concepts (i.e., brands)
548
Number of industries
16
Number of states
48
Weighted average occupancy
99.9%
Total square feet of rentable space
19,254,998
Cash ABR - service-oriented or
experience-based
93.2%
Cash ABR - properties subject to master
lease
67.0%
Portfolio Update
Investments
The Company’s investment activity during the three months ended
March 31, 2024 is summarized as follows:
Quarter Ended
March 31, 2024
Investments:
Investment volume
$248.8 million
Number of transactions
36
Property count
79
Weighted average cash / GAAP cap rate
8.1%/9.3%
Weighted average lease escalation
1.9%
% Subject to master lease
82%
% Sale-leaseback transactions
100%
% Existing relationship
87%
% Required financial reporting
(tenant/guarantor)
100%
WALT
17.2 years
Dispositions
The Company’s disposition activity during the three months ended
March 31, 2024 is summarized as follows:
Quarter Ended
March 31, 2024
Dispositions:
Net proceeds
$11.9 million
Number of properties sold
7
Net gain / (loss)
$1.5 million
Weighted average cash cap rate (excluding
vacant properties and sales subject to a tenant purchase option
)
6.5%
Loan Repayments
Loan repayments to the Company during the three months ended
March 31, 2024 are summarized as follows:
Quarter Ended
March 31, 2024
Loan Repayments:
Proceeds—Principal
$2.8 million
Number of properties
6
Weighted average interest rate
7.0%
Leverage and Balance Sheet and Liquidity
The Company's leverage, balance sheet and liquidity as of March
31, 2024 are summarized in the following table.
March 31, 2024
Pro Forma (1) March 31,
2024
Leverage:
Net debt to Annualized Adjusted
EBITDAre
4.1x
3.6x
Balance Sheet and Liquidity:
Cash and cash equivalents and restricted
cash
$79.2 million
$263.3 million
Unused revolving credit facility
capacity
$600.0 million
$600.0 million
Forward equity sales - unsettled
$184.2 million
—
Total available liquidity
$863.3 million
$863.3 million
ATM Program:
2022 ATM Program initial availability
$500.0 million
Aggregate gross sales under the 2022 ATM
Program
$274.0 million
Availability remaining under the 2022 ATM
Program
$226.0 million
Average price per share of gross sales
since inception in May 2022
$23.72
_______________
1.
Pro forma adjustments have been made to reflect the 7,828,852
unsettled shares sold on a forward basis in the Company's March
2024 follow-on offering as if they had been physically settled for
cash on March 31, 2024.
Guidance
2024 Guidance
The Company has increased the low end of its previously issued
fully diluted 2024 AFFO per share estimate and now expects that
2024 AFFO per share on a fully diluted basis will be within a range
of $1.72 to $1.75.
Note: The Company does not provide guidance for the most
comparable GAAP financial measure, net income, or a reconciliation
of the forward-looking non-GAAP financial measure of AFFO to net
income computed in accordance with GAAP, because it is unable to
reasonably predict, without unreasonable efforts, certain items
that would be contained in the GAAP measure, including items that
are not indicative of the Company's ongoing operations, such as,
without limitation, potential impairments of real estate assets,
net gain/loss on dispositions of real estate assets, changes in
allowance for credit losses and stock-based compensation expense.
These items are uncertain, depend on various factors, and could
have a material impact on the Company's GAAP results for the
guidance period.
Dividend Information
As previously announced, on March 7, 2024, Essential Properties'
board of directors declared a cash dividend of $0.285 per share of
common stock for the quarter ended March 31, 2024. The first
quarter 2024 dividend represents an annualized dividend of $1.14
per share of common stock. The dividend was paid on April 12, 2024
to stockholders of record as of the close of business on March 29,
2024.
Conference Call Information
In conjunction with the release of Essential Properties’
operating results, the Company will host a conference call on
Thursday, April 25, 2024 at 10:00 a.m. EDT to discuss the results.
To access the conference, dial 877-407-9208 (International:
201-493-6784). A live webcast will also be available in listen-only
mode by clicking on the webcast link in the Investor Relations
section at www.essentialproperties.com.
A telephone replay of the conference call can also be accessed
by calling 844-512-2921 (International: 412-317-6671) and entering
the access code: 13745503. The telephone replay will be available
through May 9, 2024.
A replay of the conference call webcast will be available on our
website approximately two hours after the conclusion of the live
broadcast. The webcast replay will be available for 90 days. No
access code is required for this replay.
Supplemental Materials
The Company’s Supplemental Operating & Financial Data—First
Quarter Ended March 31, 2024 is available on Essential Properties’
website at investors.essentialproperties.com.
About Essential Properties Realty Trust, Inc.
Essential Properties Realty Trust, Inc. is an internally managed
REIT that acquires, owns and manages primarily single- tenant
properties that are net leased on a long-term basis to companies
operating service-oriented or experience-based businesses. As of
March 31, 2024, the Company’s portfolio consisted of 1,937
freestanding net lease properties with a weighted average lease
term of 14.1 years and a weighted average rent coverage ratio of
3.9x. In addition, as of March 31, 2024, the Company’s portfolio
was 99.9% leased to 383 tenants operating 548 different concepts in
16 industries across 48 states.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. When used in this press
release, the words “estimate,” “anticipate,” “expect,” “believe,”
“intend,” “may,” “will,” “should,” “seek,” “approximately” or
“plan,” or the negative of these words and phrases or similar words
or phrases that are predictions of or indicate future events or
trends and that do not relate solely to historical matters are
intended to identify forward-looking statements. You can also
identify forward-looking statements by discussions of strategy,
plans or intentions of management. Forward-looking statements
involve numerous risks and uncertainties and you should not rely on
them as predictions of future events. Forward-looking statements
depend on assumptions, data or methods that may be incorrect or
imprecise and the Company may not be able to realize them. The
Company does not guarantee that the transactions and events
described will happen as described (or that they will happen at
all). You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
press release. While forward-looking statements reflect the
Company’s good faith beliefs, they are not guarantees of future
performance. The Company undertakes no obligation to publicly
release the results of any revisions to these forward-looking
statements that may be made to reflect events or circumstances
after the date of this press release or to reflect the occurrence
of unanticipated events, except as required by law. In light of
these risks and uncertainties, the forward-looking events discussed
in this press release might not occur as described, or at all.
Additional information concerning factors that could cause
actual results to differ materially from these forward-looking
statements is contained in the company’s Securities and Exchange
Commission (the "Commission”) filings, including, but not limited
to, the Company’s most recent Annual Report on Form 10-K. Copies of
each filing may be obtained from the Company or the Commission.
Such forward-looking statements should be regarded solely as
reflections of the Company’s current operating plans and estimates.
Actual operating results may differ materially from what is
expressed or forecast in this press release.
The results reported in this press release are preliminary and
not final. There can be no assurance that these results will not
vary from the final results reported in the Company’s Quarterly
Report on Form 10-Q for the year ended March 31, 2024 that it will
file with the Commission.
Non-GAAP Financial Measures and Certain Definitions
The Company’s reported results are presented in accordance with
GAAP. The Company also discloses the following non-GAAP financial
measures: FFO, Core FFO, AFFO, earnings before interest, taxes,
depreciation and amortization (“EBITDA”), EBITDA further adjusted
to exclude gains (or losses) on sales of depreciable property and
real estate impairment losses (“EBITDAre”), adjusted EBITDAre,
annualized adjusted EBITDAre, net debt, net operating income
(“NOI”) and cash NOI (“Cash NOI”). The Company believes these
non-GAAP financial measures are industry measures used by analysts
and investors to compare the operating performance of REITs.
FFO, Core FFO and AFFO
The Company computes FFO in accordance with the definition
adopted by the Board of Governors of the National Association of
Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as
GAAP net income or loss adjusted to exclude extraordinary items (as
defined by GAAP), net gain or loss from sales of depreciable real
estate assets, impairment write-downs associated with depreciable
real estate assets and real estate-related depreciation and
amortization (excluding amortization of deferred financing costs
and depreciation of non-real estate assets), including the pro rata
share of such adjustments of unconsolidated subsidiaries. FFO is
used by management, and may be useful to investors and analysts, to
facilitate meaningful comparisons of operating performance between
periods and among the Company’s peers primarily because it excludes
the effect of real estate depreciation and amortization and net
gains and losses on sales (which are dependent on historical costs
and implicitly assume that the value of real estate diminishes
predictably over time, rather than fluctuating based on existing
market conditions).
The Company computes Core FFO by adjusting FFO, as defined by
NAREIT, to exclude certain GAAP income and expense amounts that it
believes are infrequent and unusual in nature and/or not related to
its core real estate operations. Exclusion of these items from
similar FFO-type metrics is common within the equity REIT industry,
and management believes that presentation of Core FFO provides
investors with a metric to assist in their evaluation of our
operating performance across multiple periods and in comparison to
the operating performance of our peers, because it removes the
effect of unusual items that are not expected to impact our
operating performance on an ongoing basis.
Core FFO is used by management in evaluating the performance of
our core business operations. Items included in calculating FFO
that may be excluded in calculating Core FFO include certain
transaction related gains, losses, income or expenses or other
non-core amounts as they occur.
To derive AFFO, the Company modifies its computation of Core FFO
to include other adjustments to GAAP net income related to certain
items that it believes are not indicative of the Company’s
operating performance, including straight-line rental revenue,
non-cash interest expense, non-cash compensation expense, other
amortization expense, other non-cash charges (including changes to
our provision for loan losses following the adoption of ASC 326),
capitalized interest expense and transaction costs. Such items may
cause short-term fluctuations in net income but have no impact on
operating cash flows or long-term operating performance. The
Company believes that AFFO is an additional useful supplemental
measure for investors to consider when assessing the Company’s
operating performance without the distortions created by non-cash
items and certain other revenues and expenses.
FFO, Core FFO and AFFO do not include all items of revenue and
expense included in net income, they do not represent cash
generated from operating activities and they are not necessarily
indicative of cash available to fund cash requirements;
accordingly, they should not be considered alternatives to net
income as a performance measure or cash flows from operations as a
liquidity measure and should be considered in addition to, and not
in lieu of, GAAP financial measures. Additionally, our computation
of FFO, Core FFO and AFFO may differ from the methodology for
calculating these metrics used by other equity REITs and,
therefore, may not be comparable to similarly titled measures
reported by other equity REITs.
EBITDA and EBITDAre
The Company computes EBITDA as earnings before interest, income
taxes and depreciation and amortization. In 2017, NAREIT issued a
white paper recommending that companies that report EBITDA also
report EBITDAre. The Company computes EBITDAre in accordance with
the definition adopted by NAREIT. NAREIT defines EBITDAre as EBITDA
(as defined above) excluding gains (or losses) from the sales of
depreciable property and real estate impairment losses. The Company
presents EBITDA and EBITDAre as they are measures commonly used in
its industry and the Company believes that these measures are
useful to investors and analysts because they provide supplemental
information concerning its operating performance, exclusive of
certain non-cash items and other costs. The Company uses EBITDA and
EBITDAre as measures of its operating performance and not as
measures of liquidity.
EBITDA and EBITDAre do not include all items of revenue and
expense included in net income, they do not represent cash
generated from operating activities and they are not necessarily
indicative of cash available to fund cash requirements;
accordingly, they should not be considered alternatives to net
income as a performance measure or cash flows from operations as a
liquidity measure and should be considered in addition to, and not
in lieu of, GAAP financial measures. Additionally, the Company’s
computation of EBITDA and EBITDAre may differ from the methodology
for calculating these metrics used by other equity REITs and,
therefore, may not be comparable to similarly titled measures
reported by other equity REITs.
Net Debt
The Company calculates its net debt as its gross debt (defined
as total debt plus net deferred financing costs on its secured
borrowings) less cash and cash equivalents and restricted cash
available for future investment. The Company believes excluding
cash and cash equivalents and restricted cash available for future
investment from gross debt, all of which could be used to repay
debt, provides an estimate of the net contractual amount of
borrowed capital to be repaid, which it believes is a beneficial
disclosure to investors and analysts.
NOI and Cash NOI
The Company computes NOI as total revenues less property
expenses. NOI excludes all other items of expense and income
included in the financial statements in calculating net income or
loss. Cash NOI further excludes non-cash items included in total
revenues and property expenses, such as straight-line rental
revenue and other amortization and non-cash charges. The Company
believes NOI and Cash NOI provide useful information because they
reflect only those revenue and expense items that are incurred at
the property level and present such items on an unlevered
basis.
NOI and Cash NOI are not measures of financial performance under
GAAP. You should not consider the Company’s NOI and Cash NOI as
alternatives to net income or cash flows from operating activities
determined in accordance with GAAP. Additionally, the Company’s
computation of NOI and Cash NOI may differ from the methodology for
calculating these metrics used by other equity REITs and,
therefore, may not be comparable to similarly titled measures
reported by other equity REITs.
Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI
The Company further adjusts EBITDAre, NOI and Cash NOI i) based
on an estimate calculated as if all investment and disposition
activity that took place during the quarter had occurred on the
first day of the quarter, ii) to exclude certain GAAP income and
expense amounts that the Company believes are infrequent and
unusual in nature and iii) to eliminate the impact of lease
termination or loan prepayment fees and contingent rental revenue
from its tenants which is subject to sales thresholds specified in
the lease. The Company then annualizes these estimates for the
current quarter by multiplying them by four, which it believes
provides a meaningful estimate of the Company’s current run rate
for all investments as of the end of the current quarter. You
should not unduly rely on these measures, as they are based on
assumptions and estimates that may prove to be inaccurate. The
Company’s actual reported EBITDAre, NOI and Cash NOI for future
periods may be significantly less than these estimates of current
run rates.
Cash ABR
Cash ABR means annualized contractually specified cash base rent
in effect as of the end of the current quarter for all of the
Company’s leases (including those accounted for as direct financing
leases) commenced as of that date and annualized cash interest on
its mortgage loans receivable as of that date.
Cash Cap Rate
Cash Cap Rate means annualized contractually specified cash base
rent for the first full month after investment or disposition
divided by the purchase or sale price, as applicable, for the
property.
GAAP Cap Rate
GAAP Cap Rate means annualized rental income computed in
accordance with GAAP for the first full month after investment
divided by the purchase price, as applicable, for the property.
Rent Coverage Ratio
Rent coverage ratio means the ratio of tenant-reported or, when
unavailable, management’s estimate based on tenant-reported
financial information, annual EBITDA and cash rent attributable to
the leased property (or properties, in the case of a master lease)
to the annualized base rental obligation as of a specified
date.
Essential Properties Realty
Trust, Inc.
Consolidated Statements of
Operations
Three months ended March
31,
(in thousands, except share and per
share data)
2024
2023
(Unaudited)
(Unaudited)
Revenues:
Rental revenue1,2
$
98,510
$
78,172
Interest on loans and direct financing
lease receivables
4,740
4,446
Other revenue
251
1,069
Total revenues
103,501
83,687
Expenses:
General and administrative
9,358
8,583
Property expenses2
993
843
Depreciation and amortization
28,525
23,824
Provision for impairment of real
estate
3,752
677
Change in provision for credit losses
2
(30
)
Total expenses
42,630
33,897
Other operating income:
Gain on dispositions of real estate,
net
1,512
4,914
Income from operations
62,383
54,704
Other (expense)/income:
Interest expense
(15,597
)
(12,133
)
Interest income
493
638
Income before income tax
expense
47,279
43,209
Income tax expense
156
153
Net income
47,123
43,056
Net income attributable to non-controlling
interests
(148
)
(160
)
Net income attributable to
stockholders
$
46,975
$
42,896
Basic weighted-average shares
outstanding
167,290,702
144,406,044
Basic net income per share
$
0.28
$
0.30
Diluted weighted-average shares
outstanding
168,854,601
146,000,007
Diluted net income per share
$
0.28
$
0.29
______________
1.
Includes contingent rent (based
on a percentage of the tenant's gross sales at the leased property)
of, $238 and $176 for the three months ended March 31, 2024 and
2023, respectively.
2.
Includes reimbursable income or
reimbursable expenses from the Company’s tenants of $548 and $591
for the three months ended March 31, 2024 and 2023,
respectively.
Essential Properties Realty
Trust, Inc.
Consolidated Balance
Sheets
(in thousands, expect share and per
share amounts)
March 31, 2024
December 31, 2023
(Unaudited)
(Audited)
ASSETS
Investments:
Real estate investments, at cost:
Land and improvements
$
1,635,673
$
1,542,302
Building and improvements
3,045,579
2,938,012
Lease incentive
17,892
17,890
Construction in progress
121,633
96,524
Intangible lease assets
88,320
89,209
Total real estate investments, at cost
4,909,097
4,683,937
Less: accumulated depreciation and
amortization
(393,784
)
(367,133
)
Total real estate investments, net
4,515,313
4,316,804
Loans and direct financing lease
receivables, net
235,905
223,854
Real estate investments held for sale,
net
1,235
7,455
Net investments
4,752,453
4,548,113
Cash and cash equivalents
79,161
39,807
Restricted cash
3
9,156
Straight-line rent receivable, net
117,130
107,545
Derivative assets
37,207
30,980
Rent receivables, prepaid expenses and
other assets, net
27,491
32,660
Total assets
$
5,013,445
$
4,768,261
LIABILITIES AND EQUITY
Unsecured term loans, net of deferred
financing costs
$
1,273,365
$
1,272,772
Senior unsecured notes, net
395,985
395,846
Revolving credit facility
—
—
Intangible lease liabilities, net
10,936
11,206
Intangible lease liabilities held for
sale, net
76
—
Dividend payable
50,236
47,182
Derivative liabilities
9,490
23,005
Accrued liabilities and other payables
25,798
31,248
Total liabilities
1,765,886
1,781,259
Commitments and contingencies
—
—
Stockholders' equity:
Preferred stock, $0.01 par value;
150,000,000 authorized; none issued and outstanding as of March 31,
2024 and December 31, 2023
—
—
Common stock, $0.01 par value; 500,000,000
authorized; 175,306,386 and 164,635,150 issued and outstanding as
of March 31, 2024 and December 31, 2023, respectively
1,753
1,646
Additional paid-in capital
3,325,668
3,078,459
Distributions in excess of cumulative
earnings
(111,926
)
(105,545
)
Accumulated other comprehensive loss
23,594
4,019
Total stockholders' equity
3,239,089
2,978,579
Non-controlling interests
8,470
8,423
Total equity
3,247,559
2,987,002
Total liabilities and equity
$
5,013,445
$
4,768,261
Essential Properties Realty
Trust, Inc.
Reconciliation of Non-GAAP
Financial Measures
Three months ended March
31,
(unaudited, in thousands except per
share amounts)
2024
2023
Net income
$
47,123
$
43,056
Depreciation and amortization of real
estate
28,485
23,799
Provision for impairment of real
estate
3,752
677
Gain on dispositions of real estate,
net
(1,512
)
(4,914
)
Funds from Operations
77,848
62,618
Non-core expense (income)1
—
(876
)
Core Funds from Operations
77,848
61,742
Adjustments:
Straight-line rental revenue, net
(9,980
)
(6,838
)
Non-cash interest
949
819
Non-cash compensation expense
2,945
2,721
Other amortization expense
219
281
Other non-cash adjustments
(7
)
(35
)
Capitalized interest expense
(859
)
(432
)
Adjusted Funds from Operations
$
71,115
$
58,258
Net income per share2:
Basic
$
0.28
$
0.30
Diluted
$
0.28
$
0.29
FFO per share2:
Basic
$
0.46
$
0.43
Diluted
$
0.46
$
0.43
Core FFO per share2:
Basic
$
0.46
$
0.43
Diluted
$
0.46
$
0.42
AFFO per share2:
Basic
$
0.42
$
0.40
Diluted
$
0.42
$
0.40
______________
1.
During the three months ended
March 31, 2023, includes $0.9 million of insurance recovery income
related to two properties.
2.
Calculations exclude $116 and
$101 from the numerator for the three months ended March 31, 2024
and 2023, respectively, related to dividends paid on unvested
restricted stock units.
Essential Properties Realty
Trust, Inc.
Reconciliation of Non-GAAP
Financial Measures
(in thousands)
Three months ended March 31,
2024
Net income
$
47,123
Depreciation and amortization
28,525
Interest expense
15,597
Interest income
(493
)
Income tax expense
156
EBITDA
90,908
Provision for impairment of real
estate
3,752
Gain on dispositions of real estate,
net
(1,512
)
EBITDAre
93,148
Adjustment for current quarter re-leasing,
acquisition and disposition activity1
4,122
Adjustment to exclude other non-core or
non-recurring activity2
392
Adjustment to exclude
termination/prepayment fees and certain percentage rent3
(183
)
Adjusted EBITDAre - Current Estimated
Run Rate
97,479
General and administrative expense
8,784
Adjusted net operating income
("NOI")
106,263
Straight-line rental revenue, net1
(10,544
)
Other amortization expense
219
Adjusted Cash NOI
$
95,938
Annualized EBITDAre
$
372,592
Annualized Adjusted EBITDAre
$
389,916
Annualized Adjusted NOI
$
425,052
Annualized Adjusted Cash NOI
$
383,752
______________
1.
Adjustment is made to reflect EBITDAre, NOI and Cash NOI as if all
re-leasing activity, investments in and dispositions of real estate
and loan repayments completed during the three months ended March
31, 2024 had occurred on January 1, 2024.
2.
Adjustment is made to i) exclude non-core expenses added back to
compute Core FFO, ii) exclude changes in the Company's provision
for credit losses and iii) eliminate the impact of seasonal
fluctuation in certain non-cash compensation expense recorded in
the period.
3.
Adjustment excludes lease termination or loan prepayment fees and
contingent rent (based on a percentage of the tenant's gross sales
at the leased property) where payment is subject to exceeding a
sales threshold specified in the lease, if any.
Essential Properties Realty
Trust, Inc.
Reconciliation of Non-GAAP
Financial Measures
(dollars in thousands, except share and
per share amounts)
March 31, 2024
Rate
Wtd. Avg. Maturity
Unsecured debt:
February 2027 term loan1
$
430,000
2.4%
2.9 years
January 2028 term loan1
400,000
4.6%
3.8 years
February 2029 term loan1,2
450,000
4.3%
4.9 years
Senior unsecured notes due July 2031
400,000
3.1%
7.3 years
Revolving credit facility3
—
—%
1.9 years
Total unsecured debt
1,680,000
3.6%
4.7 years
Gross debt
1,680,000
Less: cash & cash equivalents
(79,161
)
Less: restricted cash available for future
investment
(3
)
Net debt
1,600,836
Equity:
Preferred stock
—
Common stock & OP units (175,860,233
shares @ $26.66/share as of 3/31/24)4
4,688,434
Total equity
4,688,434
Total enterprise value ("TEV")
$
6,289,270
Pro forma adjustments to Net debt and
TEV:5
Net debt
$
1,600,836
Less: Unsettled forward equity (7,828,852
shares @ $23.53/share as of 3/31/24)
(184,178
)
Pro forma net debt
1,416,658
Total equity
4,688,434
Common stock — unsettled forward equity
(7,828,852 shares @ $26.66/share as of 3/31/24)
208,717
Pro forma TEV
$
6,313,809
Gross Debt / Undepreciated Gross
Assets
31.1
%
Net Debt / TEV
25.5
%
Net Debt / Annualized Adjusted
EBITDAre
4.1x
Pro Forma Gross Debt / Undepreciated
Gross Assets
30.0
%
Pro Forma Net Debt / Pro Forma
TEV
22.4
%
Pro Forma Net Debt / Annualized
Adjusted EBITDAre
3.6x
______________
1.
Rates presented for the Company's term loans are fixed at the
stated rates after giving effect to its interest rate swaps,
applicable margin of 85bps (for 2027 and 2028 Term Loans) or 95bps
(for 2029 Term Loan) and SOFR premium of 10bps.
2.
Weighted average maturity calculation is made after giving effect
to extension options exercisable at the Company's election.
3.
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 to certain
conditions, the maximum availability of the facility by up to $600
million. Borrowings bear interest at Term SOFR plus applicable
margin of 77.5bps and SOFR premium of 10bps.
4.
Common stock & OP units as of March 31, 2024, based on
175,306,386 common shares outstanding and 553,847 OP units held by
non-controlling interests.
5.
Pro forma adjustments have been made to reflect the unsettled
portion of shares sold on a forward basis in the Company's March
2024 follow-on offering as if they had been physically settled on
March 31, 2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424956793/en/
Investor/Media: Essential Properties Realty Trust, Inc.
Robert W. Salisbury, CFA Senior Vice President, Head of Capital
Markets 609-436-0619 investors@essentialproperties.com
Essential Properties Rea... (NYSE:EPRT)
Historical Stock Chart
From Jul 2024 to Aug 2024
Essential Properties Rea... (NYSE:EPRT)
Historical Stock Chart
From Aug 2023 to Aug 2024