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 ...

Core Viewpoint - The retail real estate industry is experiencing a recovery driven by consumer demand for in-store shopping, limited new supply, and a focus on service-oriented tenants, which positions companies like Essential Properties Realty Trust, Realty Income Corporation, and Retail Opportunity Investments Corp. for growth [2][4][5]. Industry Overview - The Zacks REIT and Equity Trust - Retail industry includes REITs that own, develop, manage, and lease various retail spaces, significantly influenced by economic health, employment, and consumer spending patterns [3]. - The industry has seen a resurgence due to renewed consumer enthusiasm for in-store shopping, despite previous challenges like store closures and retailer insolvencies [3]. Demand and Supply Dynamics - Healthy consumer spending, supported by income growth and employment, is expected to drive demand for retail spaces, while sluggish new construction due to high costs will limit supply [4]. - Retail landlords are increasingly opting for mixed-use developments, further reducing available retail space and supporting industry fundamentals [4]. Economic Challenges - Despite a lower likelihood of recession, consumer caution and retailer bankruptcy filings pose challenges, potentially moderating demand for retail space and affecting landlords' cash flows [5]. - High debt costs and elevated operating expenses are expected to create financial challenges for retailers, leading to more conservative expansion plans [5]. Industry Performance and Valuation - The Zacks REIT and Equity Trust - Retail industry ranks 66, placing it in the top 26% of over 250 Zacks industries, indicating robust near-term prospects [6][7]. - The industry has underperformed compared to the broader Finance sector and the S&P 500 over the past year, with a current forward 12-month price-to-FFO ratio of 14.81X [10][16][17]. Company-Specific Insights - Essential Properties Realty Trust focuses on single-tenant properties leased to service-oriented businesses, with a weighted average lease term of 14.1 years and an average unit-level rent coverage ratio of 3.9 [1][9]. - Realty Income Corporation specializes in freestanding commercial properties with stable rental revenues from service and non-discretionary tenants, holding a Zacks Rank 2 (Buy) [22][23][24]. - Retail Opportunity Investments Corp. targets grocery-anchored shopping centers in metropolitan markets, benefiting from essential retail tenants [20][21]. Future Growth Potential - Omnichannel retailing is gaining traction, with retailers expanding physical presence to enhance customer connections, which is expected to support rental revenues for retail landlords [13]. - The consensus estimate for Essential Properties' 2024 FFO per share suggests a 5.45% increase year-over-year, indicating positive growth potential [26].

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 ...

Investment Thesis - Essential Properties Realty Trust (EPRT) is guided by an effective investment strategy, resulting in elite-level business metrics and outperforming many popular triple-net lease REITs in terms of AFFO per share growth and dividend growth [1][34] Company Overview - EPRT is a service-oriented triple-net lease REIT with 1,937 properties owned as of March 2024, with 79.8% of ABR derived from service-oriented properties [3][34] - The company has a well-diversified portfolio across 48 states, with approximately 80% of ABR generated from the top 21 states and around 50% from Sunbelt states [18][19] Business Metrics - EPRT maintains a high occupancy rate of 99.9% as of March 2024, outperforming peers Agree Realty (99.6%) and NNN REIT (99.4%) [9] - The weighted average lease term (WALT) for EPRT is 14.1 years, significantly higher than peers ADC (8.2 years) and NNN (10.0 years) [11] - EPRT's weighted average annual rent escalation rate is 1.7%, with 98.8% of its ABR subject to such increases [15][16] Dividend and AFFO Growth - EPRT has achieved a compound annual growth rate (CAGR) of 6.2% in dividends from 2020 to 2023, with a forward-looking dividend yield of approximately 4.2% [22] - The company outperformed peers in AFFO per share growth during the same period, achieving a CAGR of 9.7% compared to ADC's 6.9% and NNN's 3.9% [23][24] Financial Position - EPRT has a solid balance sheet with a BBB credit rating, 100% of its debt at a fixed rate, and a fixed charge coverage ratio of 5.9x, the highest among its peers [27][29] - The company has strong liquidity of $863.3 million, ensuring it can address near-term investment opportunities [29] Valuation Outlook - The forward-looking P/FFO multiple for EPRT is expected to appreciate to a range of 15.5x-16.0x, reflecting its unique investment approach and solid financial stance [31][35]

Core Insights - The article discusses the top stocks across 11 market sectors, emphasizing the importance of quantitative analysis in identifying strong investment opportunities [2][3][36]. Quantitative Analysis - Quantitative analysis combines traditional investment research with advanced computer processing to evaluate thousands of stocks daily [4][5][6]. - The strategy focuses on a GARP (Growth at a Reasonable Price) approach, incorporating analyst EPS revisions and momentum [8][9][10]. Sector Performance - Over the past year, communication technology has been the best-performing sector, while real estate and consumer staples have underperformed [21][35]. - Year-to-date, utilities, energy, and communication sectors have led, with consumer discretionary and real estate lagging [21][35]. Top Stock Picks by Sector - **Consumer Discretionary**: Giga Cloud (GCT) has shown a 97% increase, with strong growth and profitability metrics [42][54]. - **Consumer Staples**: Sprouts Farmers (SFM) is up 111% over the last year, with a notable EPS growth of 24% [58][60]. - **Energy**: Weatherford International (WFRD) has a 154% EPS growth year-over-year, outperforming major competitors [61][62]. - **Financials**: Berkshire Hathaway (BRK.A) has outperformed the S&P 500 Financials sector, with strong growth and profitability metrics [64][66]. - **Healthcare**: Tenet Healthcare Corporation (THC) has a net income growth of 12%, significantly outperforming the sector [70][72]. - **Industrials**: SkyWest (SKYW) has shown a 190% increase, with a projected EPS growth rate of 787% for fiscal year 2024 [73][76]. - **Materials**: Taseko Mines (TGB) is up 95% year-to-date, with a forward EPS growth of 210% [79][80]. - **Real Estate**: EPR Properties (EPRT) has outperformed the real estate sector, with a year-to-date increase of 7.7% [82][83]. - **Technology**: Super Micro Computer (SMCI) has increased by 590% in the last year, with strong growth and profitability metrics [86][87]. - **Utilities**: NRG has shown a 150% increase over the last year, with a strong return on equity of 62% [95][96]. Performance Metrics - The top stocks identified have collectively outperformed the S&P 500, with an average increase of 175% over the past year [38][39]. - The Seeking Alpha Quant system has been validated by an independent study, showing superior performance compared to traditional factor models [16].

Seiya Tabuchi Many yield-chasing investors out there (including myself) apply buy and hold strategies to construct portfolios, which do not require an active involvement beside some periodic rebalancing. The key objective is to select defensive enough companies that offer above-average current income streams and leave them untouched in portfolios for a long period of time, thereby fostering a snowball effect via a combination of dividend growth and reinvestments. While this requires a somewhat heavy due dil ...