Essential Properties Announces First Quarter 2021 Results
Essential Properties Realty Trust (NYSE: EPRT) reported its Q1 2021 results, highlighting a $197.8 million investment in 74 properties, down 7% in net income per share to $0.14, while Funds from Operations (FFO) per share increased by 7% to $0.30. The company also raised $64.9 million through its ATM program. Subsequent to Q1, EPRT invested $45.6 million in 19 properties and disposed of 4 properties for $4.8 million. The firm's leverage improved with a net debt to Annualized Adjusted EBITDA decreased to 4.1x after a follow-on offering that raised $185.5 million.
- Funds from Operations (FFO) per share increased by 7% to $0.30.
- Invested $197.8 million in 74 properties during Q1 2021.
- Successful equity raising through ATM program, totaling $64.9 million.
- Leverage improved with net debt to Annualized Adjusted EBITDA reduced to 4.1x post-offering.
- Net income per share decreased by 7% to $0.14.
Essential Properties Realty Trust, Inc. (NYSE: EPRT; “Essential Properties” or the “Company”), today announced operating results for the three months ended March 31, 2021.
First Quarter 2021 Financial and Operating Highlights
Operating Results (as compared to First Quarter 2020): |
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$ Invested |
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Weighted Avg Cash Cap Rate |
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Decreased by |
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Increased by |
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Remained unchanged |
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Increased by |
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Equity Activity: |
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Highlights Subsequent to First Quarter 2021
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$ Invested |
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$ Gross Proceeds |
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Equity Activity: |
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CEO Comments
Commenting on the first quarter 2021 results, Essential Properties’ President and Chief Executive Officer, Pete Mavoides, said, “We are pleased with our first quarter results, particularly the continuation of the key trends that drove our robust fourth quarter results, including the increased stability of our portfolio, strong investment activity, and attractively priced capital raising.” Mr. Mavoides added, “With regards to our
Portfolio Update
Investments
The Company’s investment activity during the three months ended March 31, 2021 is summarized as follows:
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Quarter Ended
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Investments: |
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$ Invested |
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# of Properties |
74 |
# of Separate Transactions |
22 |
Weighted Average Cash and GAAP Cap Rate |
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WALT |
16.1 years |
% Sale-Leaseback Transactions |
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% Subject to Master Lease |
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% Required Financial Reporting (tenant/guarantor) |
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Dispositions
The Company’s disposition activity during the three months ended March 31, 2021 is summarized as follows:
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Quarter Ended
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Dispositions: |
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Net Proceeds |
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# of Properties Sold |
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16 |
Net Gain / (Loss) |
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Weighted Average Cash Cap Rate (excluding vacant properties) |
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Portfolio Highlights
The Company’s investment portfolio as of March 31, 2021 is summarized as follows:
Number of properties |
1,240 |
Weighted average lease term |
14.3 years |
Weighted average rent coverage ratio |
3.0x |
Number of tenants |
259 |
Number of states |
43 |
Number of industries |
17 |
Weighted average occupancy |
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Total square feet of rentable space |
10,801,149 |
Cash ABR - service-oriented or experience-based |
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Cash ABR - properties subject to master lease |
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Leverage and Balance Sheet and Liquidity
The Company's leverage, balance sheet and liquidity are summarized in the following table. Pro forma adjustments have been made to reflect the impact of the Company’s April 2021 follow-on offering of common stock. On April 15, 2021, the Company issued 8,222,500 shares of common stock for proceeds of
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March 31, 2021 |
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Pro Forma
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Leverage: |
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Net debt to Annualized Adjusted EBITDAre |
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5.1x |
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4.1x |
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Balance Sheet and Liquidity: |
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Cash and cash equivalents and restricted cash |
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Unused borrowing capacity |
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Total available liquidity |
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