T TD i t F I P P 1 P T Klaus Vedfelt Introduction - EPRT, who are you? Essential Properties Realty Trust (NYSE:EPRT) operates within the e-commerce/recession-resilient, service-oriented property sector. The Company is not as popular as some of its peers, like Agree Realty (ADC), Realty Income (O) or NNN REIT (NNN). As of June 2024, EPRT had 2009 properties across 49 states, with 96.4% of its ABR generated through triple-net leases. For those unacquainted with the 'triple-net' lease term, it's a highly favou ...

DNY59 Overview The real estate sector (XLRE) continues to be one of the worst performing asset classes since the initial pandemic drop in 2020. The embracing of remote work changed the sentiment around demand for real estate and this was coupled with aggressive interest rate hikes throughout 2022 and 2023. As a result, the sector severely underperformed the rest of the market indexes like the S&P 500 (SPY). However, I believe that the outlook has drastically improved and we can look forward to interest rate ...

jetcityimage Introduction I've previously covered many companies that have significant real estate assets that are often non-core to their business (often as a hidden source of value). Often times, these may be regular brick and mortar businesses with a restaurant or warehouse operations where they happen to own the real estate upon which their primary business sits on. For these companies, being involved in the real estate business isn't their main focus. As the prices of land rises over time, many compani ...

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Financial Data and Key Metrics Changes - The company reiterated its AFFO per share guidance range of $1.72 to $1.75 for 2024, indicating a strong operational performance [4][41] - AFFO per share for Q2 2024 was $0.43, a 5% increase compared to Q2 2023, with total AFFO reaching $77.1 million, up 25% year-over-year [12][41] - General and administrative expenses (G&A) increased to $8.7 million in Q2 2024 from $7.6 million in Q2 2023, but G&A as a percentage of total revenue improved to 5.6% from 6.1% [13] Business Line Data and Key Metrics Changes - The company ended the quarter with investments in 2009 properties, 99.8% leased to 395 tenants across 16 industries, with a weighted average lease term of 14.1 years [4] - Same-store rent growth was 1.4% in Q2 2024, slightly down from the previous quarter, impacted by properties affected by the Red Lobster bankruptcy [4] Market Data and Key Metrics Changes - The company invested $334 million through 35 transactions in Q2 2024, maintaining a weighted average cash yield of 8%, consistent with the previous quarter and up 60 basis points year-over-year [8] - The investment pipeline remains solid, with expectations of modest cap rate compression later in the year due to potential Fed easing [9] Company Strategy and Development Direction - The company aims to maintain a well-capitalized balance sheet with low leverage and significant liquidity to support external growth, with pro forma net debt to annualized adjusted EBITDAre at 3.8x [16] - The focus remains on sale-leaseback transactions, which constitute 80% to 90% of the portfolio, as they provide a higher value-added way to deploy capital [78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business prospects, highlighting strong tenant credit trends and investment volumes, despite short-term headwinds from conservative leverage posture [32] - The competitive landscape is expected to normalize as interest rates decline, which may lead to increased competition and downward pressure on lease terms and cap rates [81][95] Other Important Information - The company recognized $1.5 million of other income related to a legal settlement, which was included in AFFO for the quarter [36] - A cash dividend of $0.29 was declared, representing an AFFO payout ratio of 67% [37] Q&A Session Summary Question: Why not raise the AFFO guidance? - Management indicated that while performance is strong, the capital position poses a headwind, limiting visibility to raise guidance [44] Question: Details on acquisition guidance and pipeline? - The pipeline is ahead of last year, but timing variability affects closings, making it hard to forecast [26] Question: Will the company issue forward equity to lock in current share prices? - Management is open to being opportunistic with equity issuance but is currently well-funded [54] Question: How does the company view tenant categories amid consumer weakness? - The company remains focused on service and experience-based industries, which are less affected by consumer spending fluctuations [104] Question: What is the outlook for cap rates and competition? - Management expects some downward pressure on cap rates as competition normalizes with rate cuts [95][141]

ESSENTIAL = PROPERTIES Chicken MPickle, Table of Contents 1 Supplemental Information | As of June 30, 2024 Three Months Ended June 30, Six Months Ended June 30, 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $96, $144, $334 and $320 for the three and six months ended June 30, 2024 and 2023, respectively. 2. Includes reimbursable income or reimbursable expenses from the Company's tenants of $613, $750, $1,161 and $1,341 for the three and six months e ...

The reported revenue represents a surprise of +0.19% over the Zacks Consensus Estimate of $109.06 million. With the consensus EPS estimate being $0.43, the company has not delivered EPS surprise. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Revenues- Interest on loans and direct financing lease receivables: $4.86 million versus the threeanalyst average estim ...

Essential Properties (EPRT) came out with quarterly funds from operations (FFO) of $0.43 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.41 per share a year ago. These figures are adjusted for non-recurring items. Essential Properties, which belongs to the Zacks REIT and Equity Trust - Retail industry, posted revenues of $109.27 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $86.52 million. The ...

Portfolio Overview - As of June 30, 2024, the company had a portfolio of 2,009 properties with an annualized base rent of $412.2 million and an occupancy rate of 99.8%[190] - As of June 30, 2024, the net investment value of the income property portfolio totaled $5.0 billion, consisting of investments in 2,009 properties[228] - The company operates 2,004 properties with a total building area of 20,067,873 square feet[332] - The company has a total of 2,009 properties across various states, with a significant presence in Texas and Georgia[333] Financial Performance - Rental revenue for the six months ended June 30, 2024, was $202.9 million, representing a 26.8% increase from $160.0 million in the same period of 2023[193] - For the six months ended June 30, 2024, total lease revenues were $203,022 thousand, compared to $159,995 thousand for the same period in 2023, representing a 27% increase[344] - Total revenues for the three months ended June 30, 2024, were $109.3 million, up from $86.5 million in the same period of 2023, reflecting a change of $22.8 million[314] - Rental revenue increased by $22.6 million, or 27.6%, to $104.4 million for the three months ended June 30, 2024, compared to $81.8 million for the same period in 2023[314] Income and Expenses - For the three months ended June 30, 2024, net income was $51,676,000, a decrease of 2.5% from $53,000,000 in the same period of 2023[216] - General and administrative expenses increased by $1.9 million for the six months ended June 30, 2024, primarily due to non-cash share-based compensation and salary expenses[240] - General and administrative expenses rose by $1.1 million, or 14.8%, to $8.7 million for the three months ended June 30, 2024[314] - Interest expense increased by 36.2% to $32.96 million for the six months ended June 30, 2024, compared to $24.20 million in the same period of 2023[193] Debt and Financing - The company aims to maintain a net debt level generally less than six times its annualized adjusted EBITDAre[203] - As of June 30, 2024, the company's long-term debt was entirely fixed-rate or effectively converted to fixed-rate, with a weighted average debt maturity of 4.1 years[210] - Total principal outstanding debt as of June 30, 2024, is $1,925,000, compared to $1,680,000 on December 31, 2023, reflecting an increase of approximately 14.6%[251] - The weighted average interest rate on total principal outstanding debt increased from 3.6% on December 31, 2023, to 4.2% as of June 30, 2024[251] Impairment and Provisions - The company recorded a provision for impairment of real estate of $6.6 million for the six months ended June 30, 2024, compared to $1.5 million in 2023, indicating a 343.8% increase[195] - Impairment charges on real estate investments were $2.8 million for the three months ended June 30, 2024, compared to $0.8 million for the same period in 2023, reflecting a significant increase in impairment recognition[267] Cash Flow and Distributions - Total cash distributions declared during the six months ended June 30, 2024, amounted to $101.4 million, with a distribution of $0.575 per share[209] - For the six months ended June 30, 2024, net cash provided by operating activities was $147.9 million, with a net income of $98.8 million[281] - The company reported net cash provided by financing activities of $388.5 million, including $244.7 million from the issuance of common stock[282] Tenant and Lease Information - 93.3% of the annualized base rent as of June 30, 2024, was attributable to tenants operating in service-oriented and experience-based businesses[196] - The top ten tenants contributed 18.6% of the annualized base rent, with the largest tenant representing 4.7%[303] - The rent coverage ratio for the five largest tenants was 7.1x, indicating strong financial health[303] - The weighted average remaining term of leases was 14.1 years, with only 4.1% of annualized base rent attributable to leases expiring before January 1, 2029[309] Investment Strategy - The investment strategy focuses on middle-market companies in service-oriented or experience-based businesses, which are believed to offer superior risk-adjusted returns[225] - The company aims to maximize stockholder value by generating attractive risk-adjusted returns through a diversified portfolio of commercially desirable properties[223] Market and Economic Conditions - The company expects to meet short-term liquidity requirements primarily through cash and cash equivalents, net cash from operating activities, and potential asset sales[208] - The estimated market risk exposure for variable-rate borrowings under the revolving credit facility was $2.5 million based on a hypothetical adverse change in interest rates of 100 basis points as of June 30, 2024[347]

Exhibit 99.1 Essential Properties Announces Second Quarter 2024 Results Operating Results (compared to YTD Second Quarter 2023): • Investments (162 properties) $ Invested $582.7 million Weighted Avg Cash Cap Rate 8.0% • Dispositions (13 properties) Net Proceeds $16.7 million Weighted Avg Cash Cap Rate 6.7% • Net Income per share Decreased by 11% $0.57 • FFO per share Increased by 8% $0.93 • Core FFO per share Increased by 8% $0.93 • AFFO per share Increased by 5% $0.85 Debt & Equity Activity: • Equity Raise ...