PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Essential Properties Realty Trust, Inc. as of June 30, 2023, including balance sheets, statements of operations, and cash flows Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$4,312,822** | **$4,000,033** | | Net Investments | $4,133,233 | $3,779,078 | | Cash and cash equivalents | $14,108 | $62,345 | | **Total Liabilities** | **$1,505,562** | **$1,503,262** | | Unsecured term loans, net | $1,026,053 | $1,025,492 | | Senior unsecured notes, net | $395,566 | $395,286 | | **Total Equity** | **$2,807,260** | **$2,496,771** | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$86,516** | **$71,446** | **$170,204** | **$141,567** | | Rental revenue | $81,819 | $67,089 | $159,991 | $133,201 | | **Net Income** | **$53,000** | **$35,812** | **$96,056** | **$62,630** | | Net Income Attributable to Stockholders | $52,802 | $35,653 | $95,698 | $62,352 | | **Diluted Net Income Per Share** | **$0.35** | **$0.27** | **$0.64** | **$0.48** | Consolidated Statement of Cash Flows Highlights (Six months ended June 30, in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$119,086** | **$101,987** | | **Net cash used in investing activities** | **($388,826)** | **($325,848)** | | Investment in real estate, including capital expenditures | ($447,244) | ($322,707) | | Proceeds from sales of real estate, net | $78,897 | $44,514 | | **Net cash provided by financing activities** | **$212,348** | **$190,317** | | Proceeds from issuance of common stock, net | $296,567 | $190,577 | | Dividends paid | ($80,581) | ($66,943) | | **Net decrease in cash** | **($57,392)** | **($33,544)** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the company's financial condition, operations, and liquidity, including business overview and non-GAAP measures [Overview](index=43&type=section&id=Overview) The company is an internally managed REIT focused on single-tenant, net-leased properties, with a diversified portfolio Portfolio Snapshot as of June 30, 2023 | Metric | Value | | :--- | :--- | | Properties (incl. mortgage collateral) | 1,742 | | Occupancy | 99.9% | | Annualized Base Rent | $328.7 million | | Tenants | 360 | | Concepts | 560 | | Industries | 16 | | States | 48 | | Weighted Average Lease Term | 14.0 years | | Weighted Average Rent Coverage Ratio | 4.1x | - The company's investment strategy focuses on diversification, with a goal that no single tenant will contribute more than **5%** of annualized base rent over time. As of June 30, 2023, the largest tenant contributed **3.6%**[217](index=217&type=chunk) - A significant portion of investments are sale-leaseback transactions, accounting for approximately **99.1%** of investments in Q2 2023[219](index=219&type=chunk) [Our Business and Growth Strategies](index=45&type=section&id=Our%20Business%20and%20Growth%20Strategies) The company maximizes stockholder value by growing a diversified portfolio through disciplined underwriting and sale-leaseback transactions - Focus on originating sale-leaseback transactions, which accounted for **89.0%** of the portfolio's annualized base rent (excluding the Initial Portfolio) as of June 30, 2023[232](index=232&type=chunk) - Emphasize investments in properties leased to tenants in service-oriented or experience-based businesses, such as car washes, quick-service restaurants, and early childhood education, which are considered more insulated from e-commerce pressures[234](index=234&type=chunk) - Maintain a prudent balance sheet, targeting a net debt to annualized adjusted EBITDAre ratio of **less than six times** over time[237](index=237&type=chunk) [Historical Investment and Disposition Activity](index=47&type=section&id=Historical%20Investment%20and%20Disposition%20Activity) This section summarizes investment and disposition activities, highlighting Q2 2023 investment volume of **$277.4 million** Quarterly Investment Activity (dollars in thousands) | Quarter Ended | Investment Activity | Cash Cap Rate | | :--- | :--- | :--- | | June 30, 2023 | $277,361 | 7.4% | | March 31, 2023 | $207,147 | 7.6% | | December 31, 2022 | $328,370 | 7.5% | | September 30, 2022 | $195,454 | 7.1% | Quarterly Disposition Activity (dollars in thousands) | Quarter Ended | Disposition Volume | Cash Cap Rate (Leased) | | :--- | :--- | :--- | | June 30, 2023 | $41,736 | 6.2% | | March 31, 2023 | $37,161 | 6.1% | | December 31, 2022 | $75,522 | 6.9% | | September 30, 2022 | $35,513 | 6.2% | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company had **$14.1 million** cash and **$600.0 million** available credit, with **$159.1 million** in future commitments - As of June 30, 2023, the company had **$14.1 million** of cash and cash equivalents and full availability of **$600.0 million** under its Revolving Credit Facility[134](index=134&type=chunk)[244](index=244&type=chunk) - The company has a future funding commitment of approximately **$159.1 million** for tenant construction and development, which it expects to fund by June 30, 2024[246](index=246&type=chunk) Contractual Obligations as of June 30, 2023 (in thousands) | Obligation | Total | Due 2024 - 2025 | Due 2026 - 2027 | Thereafter | | :--- | :--- | :--- | :--- | :--- | | Unsecured term loans | $1,030,000 | $200,000 | $430,000 | $400,000 | | Senior unsecured notes | $400,000 | $0 | $0 | $400,000 | | Tenant construction financing | $159,070 | $159,070 | $0 | $0 | | Operating lease obligations | $20,998 | $2,585 | $1,435 | $16,263 | | **Total** | **$1,610,068** | **$361,655** | **$431,435** | **$816,263** | [Our Real Estate Investment Portfolio](index=54&type=section&id=Our%20Real%20Estate%20Investment%20Portfolio) As of June 30, 2023, the diversified portfolio includes **1,742** properties generating **$328.7 million** in annualized base rent Top 5 Tenants by Annualized Base Rent (as of June 30, 2023) | Tenant | Concept | % of Annualized Base Rent | | :--- | :--- | :--- | | EquipmentShare.com Inc. | EquipmentShare | 3.6% | | Mdsfest, Inc. | Festival Foods | 1.7% | | The Track Holdings, LLC | Five Star | 1.7% | | Captain D's, LLC | Captain D's | 1.7% | | CNP Holdings, LLC | Chicken N Pickle | 1.7% | Top 5 Industries by Annualized Base Rent (as of June 30, 2023) | Tenant Industry | % of Annualized Base Rent | | :--- | :--- | | Car Washes | 15.6% | | Early Childhood Education | 12.0% | | Quick Service | 10.8% | | Medical / Dental | 10.6% | | Automotive Service | 8.2% | - The portfolio has a long-duration lease profile, with a weighted average remaining lease term of **14.0 years**. Only **5.2%** of annualized base rent is attributable to leases expiring before January 1, 2028[287](index=287&type=chunk) [Results of Operations](index=60&type=section&id=Results%20of%20Operations) Q2 2023 total revenues increased **21.1%** to **$86.5 million**, driven by portfolio growth and reduced impairment Comparison of Q2 2023 vs Q2 2022 (in thousands) | Item | Q2 2023 | Q2 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Rental Revenue | $81,819 | $67,089 | +22.0% | | Total Revenues | $86,516 | $71,446 | +21.1% | | Provision for impairment | $802 | $6,258 | -87.2% | | Interest Expense | $12,071 | $9,190 | +31.3% | | Net Income | $53,000 | $35,812 | +47.9% | Comparison of H1 2023 vs H1 2022 (in thousands) | Item | H1 2023 | H1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Rental Revenue | $159,991 | $133,201 | +20.1% | | Total Revenues | $170,204 | $141,567 | +20.2% | | Provision for impairment | $1,479 | $10,193 | -85.5% | | Interest Expense | $24,204 | $18,350 | +31.9% | | Net Income | $96,056 | $62,630 | +53.4% | [Non-GAAP Financial Measures](index=64&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP metrics including FFO, Core FFO, and AFFO, highlighting Q2 2023 AFFO at **$61.9 million** Reconciliation of Net Income to FFO and AFFO (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $53,000 | $35,812 | $96,056 | $62,630 | | FFO | $65,972 | $54,024 | $128,589 | $103,406 | | Core FFO | $66,144 | $54,024 | $127,885 | $105,544 | | AFFO | $61,880 | $50,617 | $120,136 | $99,552 | Reconciliation of Net Income to EBITDAre (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $53,000 | $35,812 | $96,056 | $62,630 | | EBITDA | $89,524 | $67,321 | $168,052 | $123,895 | | EBITDAre | $77,779 | $63,485 | $152,070 | $122,336 | - Annualized Adjusted EBITDAre for the three months ended June 30, 2023 was calculated to be **$331.7 million**[332](index=332&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed by matching long-term leases with fixed-rate debt - The company's primary market risk exposure is to interest rate changes[338](index=338&type=chunk) - The company has effectively fixed the interest rates on its variable-rate 2024, 2027, and 2028 Term Loans by entering into interest rate swap agreements[340](index=340&type=chunk) Fair Value of Fixed-Rate Debt as of June 30, 2023 (in thousands) | Debt Instrument | Carrying Value | Estimated Fair Value | | :--- | :--- | :--- | | Senior unsecured notes | $400,000 | $299,760 | [Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of June 30, 2023, with no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[347](index=347&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the quarter[348](index=348&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings, not expected to materially affect its business or financial condition - Management does not believe that the resolution of any current legal matters, individually or in the aggregate, will have a material adverse effect on the company[351](index=351&type=chunk) [Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to risk factors from the Annual Report on Form 10-K for the year ended December 31, 2022[352](index=352&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[353](index=353&type=chunk) [Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[354](index=354&type=chunk) [Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[355](index=355&type=chunk) [Other Information](index=70&type=section&id=Item%205.%20Other%20Information) The President and CEO adopted a 10b5-1 Stock Trading Plan for the potential sale of approximately **160,000** shares - The President and CEO, Peter M. Mavoides, adopted a 10b5-1 Stock Trading Plan on June 18, 2023, for the potential sale of approximately **160,000** shares of common stock[356](index=356&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits filed include CEO and CFO certifications (Rule 302 and Section 906) and Inline XBRL data files[358](index=358&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________________________________ FORM 10-Q _____________________________________________________________________________________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR ...

Essential Properties Realty Trust, Inc. (NYSE:EPRT) Q4 2022 Earnings Conference Call February 16, 2023 10:00 AM ET Company Participants Daniel Donlan - Senior Vice President and Head of Capital Markets Peter Mavoides - President and Chief Executive Officer Mark Patten - Executive Vice President and Chief Financial Officer Conference Call Participants Ravi Vaidya - Mizuho Securities RJ Milligan - Raymond James & Associates Joshua Dennerlein - Bank of America Merrill Lynch Greg McGinniss - Scotiabank Nick Ker ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38530 Essential Properties Realty Trust, Inc. (Exact name of Registrant as specified in its Charter) Maryland 82-4005693 (State or ot ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________________________________ FORM 10-Q _____________________________________________________________________________________________________________ (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR ...

April 2022 Presentation 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," "plan," "will," "estimate," "project," "intend," "believe," "guidance," and other similar expressions that do not relate to historical matters. These forward-looking statements are subject to known and unknown risks and unce ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________________________________ FORM 10-Q _____________________________________________________________________________________________________________ (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 O ...

Essential Properties Realty Trust, Inc. (NYSE:EPRT) Q4 2021 Earnings Conference Call February 17, 2022 10:00 AM ET Company Participants Daniel Donlan - SVP & Head, Capital Markets Peter Mavoides - President, CEO & Director Gregg Seibert - EVP & COO Mark Patten - EVP, CFO & Treasurer Conference Call Participants Nathan Crossett - Berenberg Mary McConnell - Citigroup Michael Bilerman - Citigroup Ki Bin Kim - Truist Securities Caitlin Burrows - Goldman Sachs Group John Massocca - Ladenburg Thalmann & Co. Tayo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38530 | --- | --- | |-------------------------------------------------------------------------------------------|-------------------- ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $59.6 million, up $16.7 million or almost 40% compared to the same period in 2020, driven by a full quarter of investments totaling $223 million in Q2 2021 and nearly $600 million in net investment activity year-to-date [21][22] - General and administrative (G&A) expenses decreased by 5.4% to just under $5.6 million in Q3 2021 from $5.9 million in Q3 2020, with G&A as a percentage of total revenue improving to 7.5% from 10.6% [21][22] - Net income for the quarter was $27.6 million, with funds from operations (FFO) totaling $43.6 million or $0.36 per fully diluted share, a 38% increase year-over-year [22] - Adjusted funds from operations (AFFO) totaled $40.2 million for the quarter, up $13.9 million over the same period in 2020, translating to $0.33 per share, an increase of over 22% [22][24] Business Line Data and Key Metrics Changes - The company invested $231 million in Q3 2021 across 31 transactions, with a weighted average cash yield of 7%, primarily in grocery, auto service, equipment rental, early childhood education, and casual dining sectors [9][15] - The weighted average lease term of investments was 16.4 years, with a weighted average annual rent escalation of 1.6% and a unit level coverage ratio of 2.8x [15] - The portfolio consisted of 1,397 properties, 99.9% leased to 297 tenants across 17 industries, with a weighted average lease term of 13.9 years [11] Market Data and Key Metrics Changes - The company reported strong portfolio performance with collections at 100% and only one vacant property, indicating full stabilization [9] - The company noted increased competition in the market, particularly for larger deals and credits, leading to cap rate compression [16][39] Company Strategy and Development Direction - The company aims to maintain a disciplined investment strategy focused on building a resilient net lease portfolio that generates attractive risk-adjusted returns [25] - Future investment activity levels are expected to moderate due to the recapture of pandemic-induced demand and potential changes in tax laws affecting seller motivations [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment and capital markets, which have allowed the company to capitalize on a robust pipeline of investment opportunities [25] - The company reaffirmed its 2021 AFFO per share guidance of $1.30 to $1.32 and established a 2022 guidance range of $1.46 to $1.50 per share, indicating a 13% year-over-year growth [13][24] Other Important Information - The company sold 11 properties for $10.1 million in net proceeds during the quarter, achieving a 6.5% average cash yield on these dispositions [19] - The company maintains a strong balance sheet with net debt to annualized adjusted EBITDAre at 4.5x and total liquidity of $428 million [23] Q&A Session Summary Question: Acquisition guidance and future acquisition pace - Management indicated that moderating acquisition activity would be closer to historical averages of $160 million to $200 million per quarter [27] Question: Improvement in unit level rent coverage - The improvement to 3.5x was attributed to strong performance in certain industries, with higher coverage in sectors like equipment rental and medical services [28] Question: G&A outlook for 2022 - Management does not expect significant additions to G&A personnel, indicating the current team is well-staffed for high transaction levels [30] Question: Same-store NOI profile changes - Changes were driven by significant repositionings in the portfolio, affecting the same-store sales numbers [32] Question: Impact of labor shortages on service-based tenants - While labor shortages are noted, they have not yet impacted collections, with coverage improving across the board [48] Question: Pricing and competition outlook - Increased competition is noted, particularly for larger deals, but the company remains focused on maintaining a competitive edge through strong relationships [36][39] Question: Tax law changes and M&A activity - Potential tax law changes are expected to drive increased M&A activity, particularly among small business owners looking to sell [54]