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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]

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 ...

Company Performance - Essential Properties (EPRT) reported quarterly funds from operations (FFO) of $0.43 per share, matching the Zacks Consensus Estimate and showing an increase from $0.41 per share a year ago [1] - The company posted revenues of $109.27 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 0.19% and up from $86.52 million in the same quarter last year [2] - Essential Properties shares have increased approximately 21.1% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] Future Outlook - The company is expected to report quarterly earnings of $0.60 per share in its upcoming report, reflecting a year-over-year change of +1.7% [5] - The current consensus FFO estimate for the upcoming quarter is $0.45 on revenues of $114.73 million, and for the current fiscal year, it is $1.74 on revenues of $447.45 million [12] - The estimate revisions trend for Essential Properties is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [9] Industry Context - The REIT and Equity Trust - Retail industry, to which Essential Properties belongs, is currently ranked in the top 13% of over 250 Zacks industries, suggesting a strong performance potential [10] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked using tools like the Zacks Rank [11]

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 ...

For Immediate Release Industry: Retail REIT Consumers' preference for in-store shopping experiences and the limited new supply of retail real estate space are likely to benefit the constituents of the Zacks REIT and Equity Trust - Retail industry. Retail landlords' efforts to support omnichannel retailing, adaptive reuse capabilities and a focus on e-commerce resistant sectors are likely to aid this industry's growth and have poised Realty Income Corp., Essential Properties Realty Trust, Inc. and Retail Opp ...

tirc83 A Sound Business Model And Positive Demographics Profile EPRT June 2024 Investor Presentation PRINCETON, N.J.-(BUSINESS WIRE)--Essential Properties Realy Trast, Inc. (NYSE: EPRT; "Essential Properties" or the "Company") today announced operating results for the thre When EPRT shared its financial results for the first quarter on April 24, it did just fine for shareholders. The company's total revenue surged 23.7% higher year-over-year to $103.5 million during the quarter. For context, that was $2 mil ...

AndreyPopov/iStock via Getty Images Previous Buy Rating #1 Lower Rated (Non-Investment Grade) Tenants When you lease to investment-grade tenants like Walmart or Starbucks (SBUX), they are unlikely to negotiate these sorts of leases, as this could handicap the company. That's why REITs with lower rated tenant exposure are not always a bad investment. This is also a reason why EPRT's portfolio was 99.9% leased at the end of their latest quarter. NNN REIT (NNN) & Realty Income's portfolios were 99.4% and 98.6% ...

MCCAIG/iStock via Getty Images Recently, I ran across an article by Cohen & Steers explaining capital markets expectations over the next ten years. As a private real estate and REIT investor (for over three decades), I'm always interested to hear other opinions, especially after witnessing transformational changes over the last two years. As the co-authors at Cohen & Steers explain, Gone are near-zero interest rates, low inflation, stable growth and long economic cycles that were observed for well over a de ...