Essential Properties Announces Second Quarter 2026 Results
- Second Quarter Net Income per Share of $0.34 and AFFO per Share of $0.50 -
- Closed Investments of $332.4 million at a 7.8% Weighted Average Cash Cap Rate -
- Increases 2026 AFFO Guidance to $2.01 to $2.05 per Share -
- Increases 2026 Investment Guidance to $1.2 billion to $1.5 billion -
PRINCETON, N.J.--(BUSINESS WIRE)--Essential Properties Realty Trust, Inc. (NYSE: EPRT; “Essential Properties” or the “Company”) today announced operating results for the three and six months ended June 30, 2026.
Second Quarter 2026 Financial and Operating Highlights:
Operating Results (compared to Second Quarter 2025): |
|
| ||
• Investments (103 properties) | $ Invested | $332.4 million | ||
| Weighted Avg Cash Cap Rate | 7.8% | ||
• Dispositions (17 properties) | Net Proceeds | $54.3 million | ||
| Weighted Avg Cash Cap Rate | 7.3% | ||
• Net Income per Share | Increased by 6% | $0.34 | ||
• Funds from Operations (“FFO”) per Share (1) | Increased by 6% | $0.53 | ||
• Core Funds from Operations (“Core FFO”) per Share (1) | Increased by 6% | $0.53 | ||
• Adjusted Funds from Operations (“AFFO”) per Share (1) | Increased by 9% | $0.50 | ||
Debt, Equity & Leverage: |
|
| ||
• Public Debt Issuance (June 4, 2026) | 10 years; 5.38% coupon | $400.0 million | ||
• Equity Raised (Gross) - ATM Program (2) | $30.70/share | $36.6 million | ||
• Equity Raised (Gross) - Common OP Units | $30.39/unit | $36.6 million | ||
• Pro Forma Net Debt to Annualized Adjusted EBITDAre (1) | As of Quarter End | 3.5x |
Full Year 2026 Financial and Operating Highlights:
Operating Results (compared to YTD Second Quarter 2025): |
|
| ||
• Investments (229 properties) | $ Invested | $721.1 million | ||
| Weighted Avg Cash Cap Rate | 7.7% | ||
• Dispositions (23 properties) | Net Proceeds | $64.4 million | ||
| Weighted Avg Cash Cap Rate | 7.2% | ||
• Net Income per share | Increased by 2% | $0.62 | ||
• FFO per share (1) | Increased by 9% | $1.07 | ||
• Core FFO per share (1) | Increased by 9% | $1.07 | ||
• AFFO per share (1) | Increased by 10% | $1.00 | ||
Debt, Equity & Leverage: |
|
| ||
• Public Debt Issuance (June 4, 2026) | 10 years; 5.38% coupon | $400.0 million | ||
• Equity Raised (Gross) - Follow-On Offering & ATM Program (2) | $32.06/share | $455.8 million |
| _______________ | ||
1. |
| See page 8 for reconciliations of non-GAAP financial measures to corresponding GAAP metrics. |
2. |
| All shares were sold on a forward basis and a total of 18,887,181 shares remain unsettled for estimated net proceeds of $574.7 million. |
CEO Comments
Commenting on the second quarter 2026 results, the Company's Chief Executive Officer, Pete Mavoides, said, “The second quarter was highlighted by strong execution across our investment activity, reflecting the strength of our sourcing platform and deep operator relationships across the middle market industries in which we invest. With continued strong portfolio performance and our debt and equity capital needs largely addressed for the remainder of the year and well into 2027, we are able to increase our AFFO per share guidance for the year.”
Portfolio Highlights
The Company’s investment portfolio as of June 30, 2026 is summarized as follows:
|
| June 30, 2026 |
Number of properties |
| 2,493 |
Weighted average lease term (WALT) |
| 14.3 years |
Weighted average rent coverage ratio |
| 3.5x |
Top 10 tenant concentration (% of cash ABR) |
| 15.2% |
Top 20 tenant concentration (% of cash ABR) |
| 25.4% |
Weighted average occupancy (9 vacant properties) |
| 99.6% |
Total square feet of rentable space |
| 28.5 million |
Service-oriented or experience-based (% of cash ABR) |
| 91.6% |
Properties subject to master lease (% of cash ABR) |
| 64.6% |
Portfolio Update
Investments
During the three months ended June 30, 2026, the Company's $332.4 million of investment activity had a weighted average closing date of June 11, 2026. Additional details about the Company’s investment activity during the three and six months ended June 30, 2026 are summarized as follows:
|
| Quarter Ended June 30, 2026 |
| Year to Date June 30, 2026 |
Investments: |
|
|
|
|
Investment volume |
| $332.4 million |
| $721.1 million |
Number of transactions |
| 36 |
| 58 |
Property count |
| 103 |
| 229 |
Weighted average cash / GAAP cap rate |
| 7.8%/9.1% |
| 7.7%/8.9% |
Weighted average lease escalation |
| 1.9% |
| 1.9% |
% Subject to master lease |
| 50% |
| 49% |
% Sale-leaseback transactions |
| 84% |
| 92% |
% Existing relationship |
| 72% |
| 64% |
% Required financial reporting (tenant/guarantor) |
| 100% |
| 100% |
WALT |
| 16.0 years |
| 16.9 years |
Dispositions
The Company’s disposition activity during the three and six months ended June 30, 2026 is summarized as follows:
|
| Quarter Ended June 30, 2026 |
| Year to Date June 30, 2026 |
Dispositions: |
|
|
|
|
Net proceeds |
| $54.3 million |
| $64.4 million |
Number of properties sold |
| 17 |
| 23 |
Net gain / (loss) |
| $4.7 million |
| $10.0 million |
Weighted average cash cap rate (excluding vacant properties and sales subject to a tenant purchase option) |
| 7.3% |
| 7.2% |
Loan Repayments
Loan repayments received by the Company during the three and six months ended June 30, 2026 are summarized as follows:
|
| Quarter Ended June 30, 2026 |
| Year to Date June 30, 2026 |
Loan Repayments: |
|
|
|
|
Proceeds—Principal |
| $27.9 million |
| $34.1 million |
Number of properties |
| 10 |
| 13 |
Weighted average interest rate |
| 9.3% |
| 9.3% |
Leverage and Liquidity
The Company's leverage and liquidity as of June 30, 2026 are summarized in the following table.
|
| June 30, 2026 |
| Pro Forma (1) June 30, 2026 |
Leverage: |
|
|
|
|
Net debt to Annualized Adjusted EBITDAre |
| 4.5x |
| 3.5x |
|
|
|
|
|
Liquidity: |
|
|
|
|
Cash and cash equivalents and restricted cash |
| $134.2 million |
| $708.9 million |
Unused revolving credit facility capacity |
| $1.0 billion |
| $1.0 billion |
Forward equity sales - unsettled |
| $574.7 million |
| — |
Total available liquidity |
| $1.7 billion |
| $1.7 billion |
|
|
|
|
|
ATM Program: |
|
|
|
|
October 2024 ATM Program initial availability |
| $750.0 million |
|
|
Aggregate gross sales under the October 2024 ATM Program |
| $455.9 million |
|
|
Availability remaining under the October 2024 ATM Program |
| $294.1 million |
|
|
| _______________ | ||
1. |
| Pro forma adjustments have been made to reflect 18,887,181 unsettled shares sold on a forward basis as if they had been physically settled for cash on June 30, 2026. |
Equity Activity
The Company's equity activity during the three months ended June 30, 2026 is summarized in the following table.
|
| Shares |
| Price (Net) (1) |
| Net Proceeds (000s) |
Forward Shares Unsettled - March 31, 2026 |
| 17,695,008 |
| $30.44 |
| $538,686 |
Shares Sold - Current Quarter |
| 1,192,173 |
| 30.24 |
| 36,051 |
Shares Settled - Current Quarter |
| — |
| — |
| — |
Forward Shares Unsettled - June 30, 2026 |
| 18,887,181 |
| $30.43 |
| $574,737 |
| _______________ | ||
1. |
| Prices are inclusive of forward price adjustments as of June 30, 2026. |
Guidance
2026 Guidance
The Company is increasing its previously issued 2026 AFFO per share estimate from $2.00 to $2.05 to a new range of $2.01 to $2.05. The Company is also increasing its guidance range for 2026 investment volume from $1.1 billion to $1.5 billion to an updated range of $1.2 billion to $1.5 billion, and is reiterating its prior guidance range for 2026 Cash G&A of $30.0 million to $34.0 million.
Note: The Company does not provide guidance for the most comparable GAAP financial measures, net income and general and administrative expense, or a reconciliation of the forward-looking non-GAAP financial measures of AFFO to net income computed in accordance with GAAP and Cash G&A expense to general and administrative expense computed in accordance with GAAP, because it is unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measures, including items that are not indicative of the Company's ongoing operations, such as, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses and non-cash compensation expense. These items are uncertain, depend on various factors, and could have a material impact on the Company's GAAP results for the guidance period.
Dividend Information
As previously announced, on May 29, 2026, Essential Properties' board of directors declared a cash dividend of $0.32 per share of common stock for the quarter ended June 30, 2026. The second quarter 2026 dividend represents an annualized dividend of $1.28 per share of common stock. The dividend was paid on July 14, 2026 to stockholders of record as of the close of business on June 30, 2026.
Conference Call Information
In conjunction with the release of Essential Properties’ operating results, the Company will host a conference call on Thursday, July 23, 2026 at 10:00 a.m. ET to discuss the results. To access the conference, dial 800-579-2543 (International: 785-424-1789) and use the conference ID: EPRT. A live webcast will also be available in listen-only mode by clicking on the webcast link in the Investor Relations section at www.essentialproperties.com.
A telephone replay of the conference call can also be accessed by calling 844-512-2921 (International: 412-317-6671) and entering the access code: 11162070. The telephone replay will be available through August 6, 2026.
A replay of the conference call webcast will be available on our website approximately three hours after the conclusion of the live broadcast. The webcast replay will be available for 90 days. No access code is required for this replay.
Supplemental Materials
The Company’s Investor Presentation and Supplemental Information—Second Quarter 2026 is available on Essential Properties’ website at investors.essentialproperties.com.
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, 2026, the Company’s portfolio consisted of 2,493 freestanding net lease properties with a weighted average lease term of 14.3 years and a weighted average rent coverage ratio of 3.5x. In addition, as of June 30, 2026, the Company’s portfolio was 99.6% leased to tenants operating 715 different concepts across 48 states.
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 “estimate,” “anticipate,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “seek,” “approximately” or “plan,” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends 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 of strategy, plans or intentions of management. 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 and the Company may not be able to realize them. 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 in the company’s Securities and Exchange Commission (the “Commission”) filings, including, but not limited to, the Company’s most recent Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the Commission. Such forward-looking statements should be regarded solely as reflections of the Company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release.
The results reported in this press release are preliminary and not final. There can be no assurance that these results will not vary from the final results reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 that it will file with the Commission.
Essential Properties Realty Trust, Inc. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
|
| Three months ended June 30, |
| Six months ended June 30, | ||||||||||||
(unaudited, in thousands, except share and per share data) |
|
| 2026 |
|
|
| 2025 |
|
|
| 2026 |
|
|
| 2025 |
|
Revenues: |
|
|
|
|
|
|
|
| ||||||||
Rental revenue (1)(2) |
| $ | 151,113 |
|
| $ | 129,108 |
|
| $ | 300,505 |
|
| $ | 250,900 |
|
Interest on loans and direct financing lease receivables |
|
| 9,805 |
|
|
| 7,573 |
|
|
| 18,432 |
|
|
| 15,098 |
|
Other revenue |
|
| 970 |
|
|
| 381 |
|
|
| 1,749 |
|
|
| 418 |
|
Total revenues |
|
| 161,888 |
|
|
| 137,062 |
|
|
| 320,686 |
|
|
| 266,416 |
|
|
|
|
|
|
|
|
|
| ||||||||
Expenses: |
|
|
|
|
|
|
|
| ||||||||
General and administrative |
|
| 10,913 |
|
|
| 10,670 |
|
|
| 23,240 |
|
|
| 22,213 |
|
Property expenses (2) |
|
| 1,081 |
|
|
| 1,497 |
|
|
| 2,575 |
|
|
| 3,754 |
|
Depreciation and amortization |
|
| 46,130 |
|
|
| 38,590 |
|
|
| 89,319 |
|
|
| 73,583 |
|
Provision for impairment of real estate |
|
| 1,365 |
|
|
| 612 |
|
|
| 18,195 |
|
|
| 6,495 |
|
Change in provision for credit losses |
|
| 2,635 |
|
|
| (44 | ) |
|
| 3,257 |
|
|
| — |
|
Total expenses |
|
| 62,124 |
|
|
| 51,325 |
|
|
| 136,586 |
|
|
| 106,045 |
|
Other operating income: |
|
|
|
|
|
|
|
| ||||||||
Gain on dispositions of real estate, net |
|
| 4,654 |
|
|
| 2,076 |
|
|
| 9,966 |
|
|
| 7,060 |
|
Income from operations |
|
| 104,418 |
|
|
| 87,813 |
|
|
| 194,066 |
|
|
| 167,431 |
|
Other (expense)/income: |
|
|
|
|
|
|
|
| ||||||||
Interest expense |
|
| (30,269 | ) |
|
| (24,998 | ) |
|
| (60,215 | ) |
|
| (48,791 | ) |
Interest income |
|
| 580 |
|
|
| 711 |
|
|
| 990 |
|
|
| 1,325 |
|
Other income, net |
|
| 387 |
|
|
| — |
|
|
| 387 |
|
|
| — |
|
Income before income tax expense |
|
| 75,116 |
|
|
| 63,526 |
|
|
| 135,228 |
|
|
| 119,965 |
|
Income tax expense |
|
| 635 |
|
|
| 156 |
|
|
| 795 |
|
|
| 314 |
|
Net income |
|
| 74,481 |
|
|
| 63,370 |
|
|
| 134,433 |
|
|
| 119,651 |
|
Net income attributable to non-controlling interests |
|
| (194 | ) |
|
| (158 | ) |
|
| (353 | ) |
|
| (331 | ) |
Net income attributable to stockholders |
| $ | 74,287 |
|
| $ | 63,212 |
|
| $ | 134,080 |
|
| $ | 119,320 |
|
|
|
|
|
|
|
|
|
| ||||||||
Basic weighted-average shares outstanding |
|
| 216,260,528 |
|
|
| 197,551,003 |
|
|
| 213,235,988 |
|
|
| 193,030,913 |
|
Basic net income per share |
| $ | 0.34 |
|
| $ | 0.32 |
|
| $ | 0.63 |
|
| $ | 0.62 |
|
|
|
|
|
|
|
|
|
| ||||||||
Diluted weighted-average shares outstanding |
|
| 217,918,955 |
|
|
| 199,632,311 |
|
|
| 215,008,074 |
|
|
| 195,317,678 |
|
Diluted net income per share |
| $ | 0.34 |
|
| $ | 0.32 |
|
| $ | 0.62 |
|
| $ | 0.61 |
|
| _______________ | ||
1. |
| Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $276, $236, $370 and $442 for the three and six months ended June 30, 2026 and 2025, respectively. |
2. |
| Includes reimbursable income or reimbursable expenses from the Company’s tenants of $502, $954, $1,305 and $2,483 for the three and six months ended June 30, 2026 and 2025, respectively. |
Essential Properties Realty Trust, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(in thousands, except share and per share data) |
| June 30, 2026 |
| December 31, 2025 | ||||
|
| (Unaudited) |
| (Audited) | ||||
ASSETS |
|
|
|
| ||||
Investments: |
|
|
|
| ||||
Real estate investments, at cost: |
|
|
|
| ||||
Land and improvements |
| $ | 2,401,926 |
|
| $ | 2,200,829 |
|
Building and improvements |
|
| 4,723,454 |
|
|
| 4,388,959 |
|
Lease incentives |
|
| 23,192 |
|
|
| 24,154 |
|
Construction in progress |
|
| 39,075 |
|
|
| 49,881 |
|
Intangible lease assets |
|
| 116,423 |
|
|
| 99,217 |
|
Total real estate investments, at cost |
|
| 7,304,070 |
|
|
| 6,763,040 |
|
Less: accumulated depreciation and amortization |
|
| (688,346 | ) |
|
| (612,674 | ) |
Total real estate investments, net |
|
| 6,615,724 |
|
|
| 6,150,366 |
|
Loans and direct financing lease receivables, net |
|
| 457,107 |
|
|
| 401,323 |
|
Real estate investments held for sale, net |
|
| 3,918 |
|
|
| 2,635 |
|
Net investments |
|
| 7,076,749 |
|
|
| 6,554,324 |
|
Cash and cash equivalents |
|
| 126,165 |
|
|
| 60,181 |
|
Restricted cash |
|
| 8,064 |
|
|
| 10,184 |
|
Straight-line rent receivable, net |
|
| 225,831 |
|
|
| 191,008 |
|
Derivative assets |
|
| 7,535 |
|
|
| 7,861 |
|
Rent receivables, prepaid expenses and other assets, net |
|
| 45,969 |
|
|
| 39,465 |
|
Total assets |
| $ | 7,490,313 |
|
| $ | 6,863,023 |
|
|
|
|
|
| ||||
LIABILITIES AND EQUITY |
|
|
|
| ||||
Unsecured term loans, net of deferred financing costs |
| $ | 1,726,971 |
|
| $ | 1,725,010 |
|
Senior unsecured notes, net |
|
| 1,176,075 |
|
|
| 786,708 |
|
Revolving credit facility |
|
| — |
|
|
| — |
|
Intangible lease liabilities, net |
|
| 14,196 |
|
|
| 10,766 |
|
Intangible lease liabilities held for sale, net |
|
| 76 |
|
|
| — |
|
Dividends and distributions payable |
|
| 70,152 |
|
|
| 65,391 |
|
Derivative liabilities |
|
| 6,784 |
|
|
| 26,226 |
|
Accrued liabilities and other payables |
|
| 44,088 |
|
|
| 41,028 |
|
Total liabilities |
|
| 3,038,342 |
|
|
| 2,655,129 |
|
Commitments and contingencies |
|
| — |
|
|
| — |
|
Stockholders' equity: |
|
|
|
| ||||
Preferred stock, $0.01 par value; 150,000,000 authorized; none issued and outstanding as of June 30, 2026 and December 31, 2025 |
|
| — |
|
|
| — |
|
Common stock, $0.01 par value; 500,000,000 authorized; 216,271,958 and 209,702,433 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively |
|
| 2,163 |
|
|
| 2,097 |
|
Additional paid-in capital |
|
| 4,527,700 |
|
|
| 4,328,137 |
|
Distributions in excess of cumulative earnings |
|
| (119,778 | ) |
|
| (109,261 | ) |
Accumulated other comprehensive loss |
|
| (1,674 | ) |
|
| (20,979 | ) |
Total stockholders' equity |
|
| 4,408,411 |
|
|
| 4,199,994 |
|
Non-controlling interests |
|
| 43,560 |
|
|
| 7,900 |
|
Total equity |
|
| 4,451,971 |
|
|
| 4,207,894 |
|
Total liabilities and equity |
| $ | 7,490,313 |
|
| $ | 6,863,023 |
|
Essential Properties Realty Trust, Inc. | ||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
|
| Three months ended June 30, |
| Six months ended June 30, | ||||||||||||
(unaudited, in thousands except per share data) |
|
| 2026 |
|
|
| 2025 |
|
|
| 2026 |
|
|
| 2025 |
|
Net income |
| $ | 74,481 |
|
| $ | 63,370 |
|
| $ | 134,433 |
|
| $ | 119,651 |
|
Depreciation and amortization of real estate |
|
| 45,755 |
|
|
| 38,549 |
|
|
| 88,884 |
|
|
| 73,499 |
|
Provision for impairment of real estate |
|
| 1,365 |
|
|
| 612 |
|
|
| 18,195 |
|
|
| 6,495 |
|
Gain on dispositions of real estate, net |
|
| (4,654 | ) |
|
| (2,076 | ) |
|
| (9,966 | ) |
|
| (7,060 | ) |
Funds from Operations |
|
| 116,947 |
|
|
| 100,455 |
|
|
| 231,546 |
|
|
| 192,585 |
|
Non-core (income) expense, net (1) |
|
| (266 | ) |
|
| — |
|
|
| (218 | ) |
|
| — |
|
Core Funds from Operations |
|
| 116,681 |
|
|
| 100,455 |
|
|
| 231,328 |
|
|
| 192,585 |
|
Adjustments: |
|
|
|
|
|
|
|
| ||||||||
Straight-line rental revenue, net |
|
| (15,133 | ) |
|
| (12,105 | ) |
|
| (30,498 | ) |
|
| (23,078 | ) |
Non-cash interest |
|
| 1,452 |
|
|
| 1,357 |
|
|
| 2,894 |
|
|
| 2,635 |
|
Non-cash compensation expense |
|
| 3,461 |
|
|
| 3,496 |
|
|
| 7,626 |
|
|
| 7,464 |
|
Other amortization expense |
|
| 946 |
|
|
| 268 |
|
|
| 1,233 |
|
|
| 520 |
|
Change in provision for credit losses |
|
| 2,635 |
|
|
| (44 | ) |
|
| 3,257 |
|
|
| — |
|
Other non-cash adjustments |
|
| 625 |
|
|
| 505 |
|
|
| 1,194 |
|
|
| 733 |
|
Capitalized interest expense |
|
| (550 | ) |
|
| (911 | ) |
|
| (1,111 | ) |
|
| (2,137 | ) |
Adjusted Funds from Operations |
| $ | 110,117 |
|
| $ | 93,021 |
|
| $ | 215,923 |
|
| $ | 178,722 |
|
|
|
|
|
|
|
|
|
| ||||||||
Net income per share: (2) |
|
|
|
|
|
|
|
| ||||||||
Basic |
| $ | 0.34 |
|
| $ | 0.32 |
|
| $ | 0.63 |
|
| $ | 0.62 |
|
Diluted |
| $ | 0.34 |
|
| $ | 0.32 |
|
| $ | 0.62 |
|
| $ | 0.61 |
|
FFO per share: (2) |
|
|
|
|
|
|
|
| ||||||||
Basic |
| $ | 0.54 |
|
| $ | 0.51 |
|
| $ | 1.08 |
|
| $ | 0.99 |
|
Diluted |
| $ | 0.53 |
|
| $ | 0.50 |
|
| $ | 1.07 |
|
| $ | 0.98 |
|
Core FFO per share: (2) |
|
|
|
|
|
|
|
| ||||||||
Basic |
| $ | 0.54 |
|
| $ | 0.51 |
|
| $ | 1.08 |
|
| $ | 0.99 |
|
Diluted |
| $ | 0.53 |
|
| $ | 0.50 |
|
| $ | 1.07 |
|
| $ | 0.98 |
|
AFFO per share: (2) |
|
|
|
|
|
|
|
| ||||||||
Basic |
| $ | 0.51 |
|
| $ | 0.47 |
|
| $ | 1.01 |
|
| $ | 0.92 |
|
Diluted |
| $ | 0.50 |
|
| $ | 0.46 |
|
| $ | 1.00 |
|
| $ | 0.91 |
|
| _______________ | ||
1. |
| Includes net insurance recovery income during the three months ended June 30, 2026 and non-core technology expenses during the three and six months ended June 30, 2026. |
2. |
| Calculations exclude $377, $229, $739 and $455 from the numerator for the three and six months ended June 30, 2026 and 2025, respectively, related to dividend equivalents and distributions paid on unvested restricted stock units and LTIP units. |
|
| Three months ended June 30, |
| Six months ended June 30, | ||||||||||||
(unaudited, in thousands) |
|
| 2026 |
|
|
| 2025 |
|
|
| 2026 |
|
|
| 2025 |
|
General and administrative expense |
| $ | 10,913 |
|
| $ | 10,670 |
|
| $ | 23,240 |
|
| $ | 22,213 |
|
Non-core general and administrative expense (1) |
|
| (121 | ) |
|
| — |
|
|
| (169 | ) |
|
| — |
|
Non-cash compensation expense |
|
| (3,461 | ) |
|
| (3,496 | ) |
|
| (7,626 | ) |
|
| (7,464 | ) |
Straight-line rent expense, net |
|
| (151 | ) |
|
| 10 |
|
|
| (250 | ) |
|
| 21 |
|
Cash G&A |
| $ | 7,180 |
|
| $ | 7,184 |
|
| $ | 15,195 |
|
| $ | 14,770 |
|
| _______________ | ||
1. |
| Includes non-core technology expenses during the three and six months ended June 30, 2026. |
Essential Properties Realty Trust, Inc. | ||||
Reconciliation of Non-GAAP Financial Measures | ||||
(unaudited, in thousands) |
| Three months ended June 30, 2026 | ||
Net income |
| $ | 74,481 |
|
Depreciation and amortization |
|
| 46,130 |
|
Interest expense |
|
| 30,269 |
|
Interest income |
|
| (580 | ) |
Income tax expense |
|
| 635 |
|
EBITDA |
|
| 150,935 |
|
Provision for impairment of real estate |
|
| 1,365 |
|
Gain on dispositions of real estate, net |
|
| (4,654 | ) |
EBITDAre |
|
| 147,646 |
|
Adjustment for current quarter re-leasing, acquisition and disposition activity (1) |
|
| 5,623 |
|
Adjustment for other non-core or non-recurring activity (2) |
|
| 4,406 |
|
Adjustment to exclude termination/prepayment fees and certain percentage rent (3) |
|
| (856 | ) |
Adjusted EBITDAre - Current Estimated Run Rate |
|
| 156,819 |
|
General and administrative expense |
|
| 11,115 |
|
Adjusted net operating income ("NOI") |
|
| 167,934 |
|
Straight-line rental revenue, net (1) |
|
| (18,172 | ) |
Other amortization expense |
|
| 946 |
|
Adjusted Cash NOI |
| $ | 150,708 |
|
|
|
| ||
Annualized EBITDAre |
| $ | 590,584 |
|
Annualized Adjusted EBITDAre |
| $ | 627,276 |
|
Annualized Adjusted NOI |
| $ | 671,736 |
|
Annualized Adjusted Cash NOI |
| $ | 602,832 |
|
| _______________ | ||
1. |
| Adjustment is made to reflect EBITDAre, NOI and Cash NOI as if all re-leasing activity, investments in and dispositions of real estate and loan repayments completed during the three months ended June 30, 2026 had occurred on April 1, 2026. |
2. |
| Adjustment is made to i) exclude non-core adjustments made in computing Core FFO, if any, ii) exclude changes in the Company's provision for credit losses and iii) eliminate the impact of seasonal fluctuation in certain non-cash compensation expense recorded in the period. |
3. |
| Adjustment excludes lease termination or loan prepayment fees and contingent rent (based on a percentage of the tenant's gross sales at the leased property) where payment is subject to exceeding a sales threshold specified in the lease, if any. |
Essential Properties Realty Trust, Inc. | |||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||
(unaudited, dollars in thousands, except share and per share data) |
| June 30, 2026 |
| Rate |
| Wtd. Avg. Maturity | |||
|
|
|
|
|
|
| |||
Unsecured debt: |
|
|
|
|
|
| |||
February 2027 term loan (1) |
| $ | 430,000 |
|
| 2.26 | % |
| 0.6 years |
January 2028 term loan (1) |
|
| 400,000 |
|
| 4.51 | % |
| 1.6 years |
February 2029 term loan (1)(2) |
|
| 450,000 |
|
| 5.25 | % |
| 2.7 years |
January 2030 term loan (1)(2) |
|
| 450,000 |
|
| 4.67 | % |
| 3.5 years |
Senior unsecured notes due July 2031 |
|
| 400,000 |
|
| 3.12 | % |
| 5.0 years |
Senior unsecured notes due December 2035 |
|
| 400,000 |
|
| 5.40 | % |
| 9.4 years |
Senior unsecured notes due July 2036 |
|
| 400,000 |
|
| 5.38 | % |
| 10.0 years |
Revolving credit facility (2)(3) |
|
| — |
|
| — | % |
| 3.6 years |
Total unsecured debt |
|
| 2,930,000 |
|
| 4.37 | % |
| 4.6 years |
Gross debt |
|
| 2,930,000 |
|
|
|
|
| |
Less: cash & cash equivalents |
|
| (126,165 | ) |
|
|
|
| |
Less: restricted cash available for future investment |
|
| (8,064 | ) |
|
|
|
| |
Net debt |
|
| 2,795,771 |
|
|
|
|
| |
|
|
|
|
|
|
| |||
Equity: |
|
|
|
|
|
| |||
Preferred stock |
|
| — |
|
|
|
|
| |
Common stock, OP Units & vested LTIP Units (218,048,119 shares @ $29.85/share as of 6/30/26) (4) |
|
| 6,508,736 |
|
|
|
|
| |
Total equity |
|
| 6,508,736 |
|
|
|
|
| |
Total enterprise value ("TEV") |
| $ | 9,304,507 |
|
|
|
|
| |
|
|
|
|
|
|
| |||
Pro forma adjustments to Net debt and TEV: (5) |
|
|
|
|
|
| |||
Net debt |
| $ | 2,795,771 |
|
|
|
|
| |
Less: Unsettled forward equity (18,887,181 shares @ $30.43/share as of 6/30/26) |
|
| (574,737 | ) |
|
|
|
| |
Pro forma net debt |
|
| 2,221,034 |
|
|
|
|
| |
Total equity |
|
| 6,508,736 |
|
|
|
|
| |
Common stock — unsettled forward equity (18,887,181 shares @ $29.85/share as of 6/30/26) |
|
| 563,782 |
|
|
|
|
| |
Pro forma TEV |
| $ | 9,293,552 |
|
|
|
|
| |
|
|
|
|
|
|
| |||
Gross Debt / Undepreciated Gross Assets |
|
| 35.8 | % |
|
|
|
| |
Net Debt / TEV |
|
| 30.0 | % |
|
|
|
| |
Net Debt / Annualized Adjusted EBITDAre |
| 4.5x |
|
|
|
| |||
|
|
|
|
|
|
| |||
Pro Forma Gross Debt / Undepreciated Gross Assets |
|
| 33.5 | % |
|
|
|
| |
Pro Forma Net Debt / Pro Forma TEV |
|
| 23.9 | % |
|
|
|
| |
Pro Forma Net Debt / Annualized Adjusted EBITDAre |
| 3.5x |
|
|
|
| |||
Contacts
Investor/Media:
Essential Properties Realty Trust, Inc.
Sheryl Kaul
Director, Financial Planning & Data Analytics
609-436-0619
investors@essentialproperties.com
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