A Brief History of Essential Properties Realty Trust, Inc. (EPRT)

Formation and Initial Public Offering

Essential Properties Realty Trust, Inc. was formed in 2018 as a publicly traded real estate investment trust (REIT) focusing on single-tenant properties. The company went public on May 2, 2019, on the New York Stock Exchange under the ticker symbol EPRT, raising approximately $300 million during its initial public offering (IPO).

Investment Strategy

EPRT primarily invests in single-tenant, net lease properties. The company’s portfolio consists mainly of retail, restaurant, and industrial properties, which are leased to various tenants across the United States. By the close of Q3 2023, EPRT reported a portfolio of over 500 properties, with an aggregate value exceeding $1.2 billion.

Financial Performance

As of the end of Q3 2023, EPRT's annual revenues were reported at $105 million, showing significant growth since its IPO. The company’s net income for the same period was approximately $35 million, translating into a Funds From Operations (FFO) of $85 million.

Dividends and Shareholder Returns

EPRT has consistently paid dividends since its IPO, with dividends growing annually. The annualized dividend was $1.00 per share in 2023, representing a dividend yield of approximately 5.5%.

Recent Developments

In 2022, EPRT acquired over $200 million in new properties, further diversifying its portfolio. The company also announced plans to expand its holdings internationally in the near future. Recent strategic partnerships have allowed EPRT to enhance its operational efficiencies and tenant relations.

Conclusion

As EPRT continues to develop its niche in the single-tenant net lease sector, it remains committed to creating value for its stakeholders through strategic acquisitions and effective property management.

A Who Owns Essential Properties Realty Trust, Inc. (EPRT)

Ownership Structure

The ownership structure of Essential Properties Realty Trust, Inc. (EPRT) is characterized by a diverse range of institutional and individual investors. As of the latest reports in 2023, the following data outlines the major shareholders:

Major Institutional Shareholders

Some of the key institutional shareholders as of the end of 2023 include:

Executive Ownership

Details on executive ownership as of the latest fiscal year indicate the following:

Recent Market Performance

As of October 2023, EPRT's stock performance has demonstrated the following metrics:

• Current Stock Price: $23.45
• Market Capitalization: $1.2 Billion
• Dividend Yield: 4.2%
• Price-to-Earnings (P/E) Ratio: 22.3

Investment Trends

Investment trends indicate a growing interest in EPRT among institutional funds, driven by its strategic acquisition of properties that generate stable cash flows. The company continues to focus on single-tenant net lease properties, which represent a significant portion of its asset base, with a total investment portfolio valued at:

• Total Property Investments: $1.5 Billion
• Average Lease Term: 12.8 years
• Occupancy Rate: 99.2%

Essential Properties Realty Trust, Inc. (EPRT) Mission Statement

Overview of EPRT

Essential Properties Realty Trust, Inc. (EPRT) is a real estate investment trust (REIT) specializing in the acquisition and management of high-quality net lease properties. As of the third quarter of 2023, EPRT's portfolio consisted of approximately 1,400 properties located across 48 states, diversified across 55 different property types. The company focuses on properties leased to companies in sectors such as necessity retail and service-oriented businesses.

Mission Statement

The mission of Essential Properties Realty Trust is to be a leading net lease REIT that provides exceptional returns to its shareholders through a disciplined acquisition strategy and proactive asset management. EPRT aims to deliver stable cash flows and sustainable growth by focusing on high-quality, necessity-driven properties leased to creditworthy tenants on long-term net leases.

Core Values

• Integrity: EPRT adheres to the highest ethical standards in all business transactions.
• Stewardship: The company is committed to responsible management of assets and resources.
• Transparency: EPRT provides clear and open communication with investors and stakeholders.
• Innovation: Continuous improvement and adaptation in investment strategies and property management.

Portfolio Statistics

Financial Performance

As of Q3 2023, Essential Properties Realty Trust reported the following financial metrics:

Growth Strategy

EPRT employs a growth strategy that includes:

• Targeting high-quality properties leased to strong tenants with a focus on necessity-based retail.
• Acquisition of properties in emerging markets to capitalize on growth potential.
• Enhancing existing properties through proactive management and improvements.
• Maintaining a conservative capital structure to support future acquisitions.

Recent Acquisitions

In 2023, EPRT completed notable acquisitions, reinforcing its mission to expand its portfolio:

Conclusion

Through its mission statement and strategic focus, Essential Properties Realty Trust, Inc. continues to position itself as a leader in the net lease REIT sector, demonstrating an ongoing commitment to stability, growth, and value creation for its shareholders.

How Essential Properties Realty Trust, Inc. (EPRT) Works

Business Model

Essential Properties Realty Trust, Inc. (EPRT) operates as a self-administered and self-managed real estate investment trust (REIT). The company focuses primarily on acquiring and managing single-tenant net lease properties, typically leased to retail and service-oriented tenants. As of the latest reports in Q3 2023, EPRT's total revenue reached approximately $94 million.

Portfolio Overview

EPRT's portfolio includes a diversified mix of properties across various sectors. As of September 30, 2023, the company owned 1,734 properties located in 48 states. The weighted average remaining lease term stands at approximately 14.5 years.

Financial Performance

The company's financial performance has shown consistent growth. In Q3 2023, EPRT reported a net income of approximately $38 million, while the funds from operations (FFO) totaled about $55 million.

• Net Income: $38 million
• Funds from Operations (FFO): $55 million
• Dividend per share: $0.25
• Market Capitalization: $2.1 billion

Investment Strategy

EPRT's investment strategy focuses on acquiring high-quality assets in strategically favorable locations. The company seeks properties leased to tenants with strong credit profiles and robust business models. The weighted average credit rating of tenants is approximately Baa according to Moody's analytics.

Recent Acquisitions

In 2023, EPRT completed several significant acquisitions, totaling $215 million. Key acquisitions include:

Dividend Policy

EPRT maintains a consistent dividend policy, with a current annualized dividend yield of approximately 4.7% as of October 2023. The company has a history of incrementally increasing its dividend payouts, reflecting its commitment to returning value to shareholders.

Market Trends

The market for single-tenant net lease properties remains robust, with significant demand driven by e-commerce growth and changing consumer behaviors. As of October 2023, the average capitalization rate for net lease properties stands at approximately 6.5%.

How Essential Properties Realty Trust, Inc. (EPRT) Makes Money

Revenue Streams

Essential Properties Realty Trust, Inc. (EPRT) primarily generates revenue through rental income from its diversified portfolio of properties. As of Q3 2023, EPRT reported total rental revenue of approximately $56.4 million for the quarter.

Property Acquisition

EPRT focuses on acquiring single-tenant, net lease properties. As of September 30, 2023, the company owned 1,033 properties across 49 states, with a total investment value of about $1.4 billion.

Lease Structure

Most of EPRT's leases are structured as net leases, where tenants are responsible for property expenses including taxes, insurance, and maintenance costs. As of Q3 2023, approximately 98.8% of EPRT's rental revenue came from net leases.

Tenant Diversification

EPRT's portfolio includes tenants from various sectors. The largest sectors include:

• Dollar Stores: 25%
• Convenience Stores: 20%
• Food & Beverage: 15%
• Health & Fitness: 12%
• Other: 28%

Investment Strategy

EPRT employs a strategy to invest in high-quality properties leased to tenants with strong creditworthiness. As of Q3 2023, approximately 92% of EPRT’s tenants were rated investment grade.

Financial Performance

For the fiscal year 2022, EPRT reported total revenue of $203.5 million and a net income of $46.3 million. For Q3 2023, EPRT's Adjusted Funds from Operations (AFFO) was approximately $43 million, translating to an AFFO per share of $0.31.

Dividend Distribution

EPRT has consistently paid dividends to its shareholders. As of October 2023, the annualized dividend rate was $0.92 per share, yielding a dividend yield of approximately 4.5% based on a share price of $20.50.

Debt Management

EPRT maintains a disciplined approach to its capital structure. As of Q3 2023, the company had total debt of $575 million and a debt-to-equity ratio of 0.65. The weighted average interest rate on the debt portfolio was approximately 3.5%.

Market Trends

The net lease real estate sector has shown resilience and growth, driven by strong demand for essential retail and service properties. For 2023, analysts predict continued expansion in the sector, with gross lease revenues growing by approximately 3.5%.

Future Growth Prospects

EPRT plans to expand its portfolio through strategic acquisitions targeting sectors with high growth potential. The projected capital expenditure for 2024 is approximately $200 million, intending to enhance property acquisitions and portfolio diversification.