Essential Properties(EPRT) - 2025 Q1 - Quarterly Results

Financial Performance - First Quarter 2025 net income per share was $0.29, representing a 4$0.45, reflecting a 7% increase year-over-year[2] - Total revenues for the three months ended March 31, 2025, increased to $129,354,000, up 25.0$103,501,000 in the same period of 2024[27] - Net income attributable to stockholders for Q1 2025 was $56,108,000, representing a 19.0$46,975,000 in Q1 2024[27] - Basic net income per share rose to $0.30 in Q1 2025, up from$0.28 in Q1 2024, reflecting a 7.1% increase[27] - Funds from Operations (FFO) for Q1 2025 were $92,130,000, a 18.4$77,848,000 in Q1 2024[32] - Adjusted Funds from Operations (AFFO) per share for Q1 2025 was $0.45, compared to$0.42 in Q1 2024, indicating a 7.1% growth[32] Investment Activity - The company closed investments totaling $307.7 million at a weighted average cash cap rate of 7.8$900 million and $1.1 billion[13] - The company reported net proceeds of$24.3 million from the disposition of 11 properties during the first quarter[7] Portfolio and Asset Management - As of March 31, 2025, the investment portfolio consisted of 2,138 properties with a weighted average lease term of 14.0 years and a weighted average rent coverage ratio of 3.5x[5] - The weighted average occupancy rate of the portfolio was 99.7%[5] - Total assets as of March 31, 2025, increased to $6,056,913,000, compared to$5,798,682,000 as of December 31, 2024, marking a 4.5% increase[30] - The company’s total equity increased to $3,823,237,000 as of March 31, 2025, up from$3,572,127,000 at the end of 2024, a growth of 7.0%[30] - The company reported a total of 197,512,316 common shares outstanding and 553,847 OP units held by non-controlling interests as of March 31, 2025[41] Liquidity and Capital Structure - Total available liquidity as of March 31, 2025, was $1.5 billion, including$47.0 million in cash and cash equivalents[10] - The company raised $292.3 million through a follow-on offering at$31.00 per share and $20.6 million through its ATM program at$32.43 per share[2] - Total liabilities stood at $2,233,676,000 as of March 31, 2025, slightly up from$2,226,555,000 at the end of 2024[30] - The company’s net debt as of March 31, 2025, was $2,082,997,000, with a Net Debt to Annualized Adjusted EBITDAre ratio of 4.3x[39] Non-GAAP Financial Measures - The company utilizes non-GAAP financial measures such as FFO, Core FFO, and AFFO to provide insights into its operating performance, which are commonly used in the REIT industry[43] - FFO is defined as GAAP net income adjusted for extraordinary items, net gains or losses from sales of depreciable real estate assets, and real estate-related depreciation and amortization[44] - Core FFO excludes infrequent and unusual GAAP income and expense amounts, providing a clearer view of the company's core operations[45] - AFFO further adjusts Core FFO by including non-cash items and other adjustments, offering a supplemental measure for assessing operating performance[46] - The company calculates net debt by subtracting cash and cash equivalents from its gross debt, providing a clearer picture of its borrowed capital obligations[51] Operational Metrics - The company reported an annualized Adjusted EBITDAre of$488,428,000 for Q1 2025, reflecting strong operational performance[35] - NOI is computed as total revenues minus property expenses, while Cash NOI excludes non-cash items, reflecting property-level performance[52] - Adjusted EBITDAre, NOI, and Cash NOI are annualized estimates based on quarterly investment and disposition activity, providing insights into the company's current run rate[54] - Cash ABR represents the annualized contractually specified cash base rent for all leases as of the end of the current quarter[55] - The company defines the Rent Coverage Ratio as the ratio of tenant-reported annual EBITDA to the annualized base rental obligation, indicating financial health of tenants[58]