Essential Properties Realty Trust, Inc. Announces Primary Public Offering of Common Stock

Rhea-AI Summary

Essential Properties Realty Trust, Inc. (NYSE: EPRT) has initiated an underwritten public offering of 6,500,000 shares of its common stock, with a potential additional 975,000 shares available to underwriters. Proceeds will be used to repay outstanding amounts on its revolving credit facility and for general corporate purposes, including potential future investments. Wells Fargo Securities, BofA Securities, and Citigroup are the joint book-running managers for the offering. The offering is made under the Company’s effective shelf registration statement with the SEC.

Positive

• Company intends to use proceeds for repaying debt, enhancing financial stability.
• Potential future investments may lead to growth opportunities.

Negative

• New share offering may result in shareholder dilution.

PRINCETON, N.J.--(BUSINESS WIRE)-- Essential Properties Realty Trust, Inc. (NYSE: EPRT; the “Company”) announced today that it has commenced an underwritten public offering of 6,500,000 shares of its common stock. The Company expects to grant the underwriters a 30-day option to purchase up to an additional 975,000 shares of common stock. The Company expects to use the net proceeds from the offering to repay amounts outstanding on its revolving credit facility and for general corporate purposes, including potential future investments. All of the shares are being offered by the Company.

Wells Fargo Securities, BofA Securities and Citigroup are acting as the joint book-running managers of the offering.

The offering of the common stock is being made pursuant to the Company’s effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. When available, a copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering may be obtained from Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 30 Hudson Yards, 500 West 33rd Street - 14th Floor, New York, NY 10001, by telephone at 1-800-326-5897 or by email at cmclientsupport@wellsfargo.com; BofA Securities, Inc., NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com; or Citigroup Global Markets, Inc.: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146), or by visiting the EDGAR database on the SEC’s web site at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. When used in this press release, the words “expect” and “will,” or the negative of these words, or similar words or phrases that are predictions of or indicate future events and that do not relate solely to historical matters, are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions regarding strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur as described, or at all.

Additional information concerning factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the Company’s SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent Quarterly Reports on Form 10-Q. Copies of each filing may be obtained from the Company or the SEC. Such forward-looking statements should be regarded solely as reflections of the Company’s current plans and estimates. Actual results may differ materially from what is expressed or forecast in this press release.

About Essential Properties Realty Trust, Inc.

Essential Properties Realty Trust, Inc. is an internally managed REIT that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to companies operating service-oriented or experience-based businesses. As of June 30, 2022, the Company’s portfolio consisted of 1,561 freestanding net lease properties with a weighted average remaining lease term of 13.8 years and a weighted average rent coverage ratio of 4.0x. As of the same date, the Company’s portfolio was 99.9% leased to 322 tenants operating 469 different concepts in 16 industries across 46 states.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220801005768/en/

Investor/Media:

Essential Properties Realty Trust, Inc.

Daniel Donlan

Senior Vice President, Capital Markets

609-436-0619

investors@essentialproperties.com

Source: Essential Properties Realty Trust, Inc.

FAQ

What is the recent stock offering by EPRT?

EPRT has commenced a public offering of 6,500,000 shares of common stock, with an option for underwriters to purchase an additional 975,000 shares.

How will EPRT use the proceeds from its stock offering?

The proceeds will be used to repay amounts on its revolving credit facility and for general corporate purposes, including potential future investments.

Who are the joint book-running managers for EPRT's offering?

The joint book-running managers are Wells Fargo Securities, BofA Securities, and Citigroup.

What impact could EPRT's stock offering have on shareholders?

The stock offering may result in shareholder dilution due to the increase in total shares outstanding.