Essential Properties Realty Trust Inc (NYSE:EPRT)
$ 31.73 +0.20 (+0.63%) Market Cap: 6.27 Bil Enterprise Value: 8.36 Bil PE Ratio: 27.59 PB Ratio: 1.64 GF Score: 87/100
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Q4 2024 Essential Properties Realty Trust Inc Earnings Call Transcript

Feb 13, 2025 / 03:00PM GMT
Release Date Price: $31.12 (+1.37%)

Key Points

Positve
  • Essential Properties Realty Trust Inc (EPRT) invested $333 million in the fourth quarter through 37 transactions, maintaining a strong investment pace.
  • The company achieved an AFFO per share of $0.45, marking a 7% increase compared to Q4 2023.
  • Tenant concentration is low, with the largest tenant representing only 4.2% of ABR, enhancing risk diversification.
  • The company declared a cash dividend of $0.295, with a payout ratio of 66%, indicating strong cash flow management.
  • EPRT's balance sheet remains strong with a pro forma net debt to annualized adjusted EBITDAre of 3.8x, reflecting low leverage and significant liquidity.
Negative
  • The company is dealing with a bankruptcy situation involving Zips Car Wash, which could impact future lease expectations.
  • There was a slight increase in total G&A expenses, rising to $8.5 million in Q4 2024 from $7.3 million in Q4 2023.
  • The carwash sector exposure remains a concern, with efforts to reduce it from above the 15% soft ceiling.
  • Interest rate volatility poses challenges, potentially affecting transaction pricing and cap rate compression.
  • Occupancy slightly decreased, with vacant properties increasing from 3 to 7, indicating potential leasing challenges.
Operator

Good morning, ladies and gentlemen, and welcome to Essential Properties Realty Trust Fourth Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded, and a replay of the call will be available 3 hours after the completion of the call for the next two weeks. The dial-in details for the replay can be found in yesterday's press release. Additionally, there will be an audio webcast available on Essential Properties' website at www.essentialproperties.com, an archive of which will be available for 90 days.

On the call this morning are Pete Mavoides, President and Chief Executive Officer; Mark Patten, Chief Financial Officer; Rob Salisbury, Head of Capital Markets; Max Jenkins, Head of Investments; and A.J. Peil, Head of Asset Management.

It is now my pleasure to turn the call over to Rob Salisbury.

Robert Salisbury
Essential Properties Realty Trust Inc - Senior VP & Head of Capital Markets

Thank you, operator.

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