EPRT Files Q2 2024 10-Q: Financials and Operations Detailed

TL;DR

EPRT's Q2 10-Q is in: financials look solid, operations on track.

AI Summary

Essential Properties Realty Trust, Inc. (EPRT) filed its 10-Q for the period ending June 30, 2024. The company reported its financial results for the second quarter and the first six months of 2024. Key financial data and operational updates are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Essential Properties Realty Trust, Inc., crucial for understanding its current market position and future outlook.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report and does not indicate any immediate or significant new risks.

Key Numbers

• 2024 Q2 — Reporting Period (Second quarter of 2024 financial results)
• 2024-01-01 to 2024-06-30 — Year-to-Date Period (First six months of 2024 financial performance)

Key Players & Entities

• ESSENTIAL PROPERTIES REALTY TRUST, INC. (company) — Filer of the 10-Q
• 0001728951 (company) — Central Index Key for EPRT
• 20240630 (date) — End of the reporting period
• 20240724 (date) — Date of filing

FAQ

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value EPRT New York Stock Exchang

Filing Documents

• eprt-20240630.htm (10-Q) — 2537KB
• eprt10-qxex311xworkingfile.htm (EX-31.1) — 10KB
• eprt10-qxex312xworkingfile.htm (EX-31.2) — 10KB
• eprt10-qxex321xworkingfile.htm (EX-32.1) — 6KB
• eprt10-qxex322xworkingfile.htm (EX-32.2) — 6KB
• 0001728951-24-000130.txt ( ) — 13406KB
• eprt-20240630.xsd (EX-101.SCH) — 117KB
• eprt-20240630_cal.xml (EX-101.CAL) — 140KB
• eprt-20240630_def.xml (EX-101.DEF) — 463KB
• eprt-20240630_lab.xml (EX-101.LAB) — 1055KB
• eprt-20240630_pre.xml (EX-101.PRE) — 776KB
• eprt-20240630_htm.xml (XML) — 2315KB

Financial Statements

Financial Statements Consolidated Balance Sheets as of June 3 0 , 202 4 (unaudited) and December 31, 202 3 2 Consolidated Statements of Operations for the three and six months ended June 3 0 , 202 4 and 202 3 (unaudited) 3 Consolidated Statements of Comprehensive Income for the three and six months ended June 3 0 , 202 4 and 202 3 (unaudited) 4 Consolidated Statements of Stockholders' Equity for the three and six months ended June 3 0 , 202 4 and 202 3 (unaudited) 5 Consolidated Statements of Cash Flows for the six months ended June 3 0 , 202 4 and 202 3 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 68 Item 4.

Controls and Procedures

Controls and Procedures 69 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 71 Item 1A.

Risk Factors

Risk Factors 71 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 3. Defaults Upon Senior Securities 71 Item 4. Mine Safety Disclosures 71 Item 5. Other Information 71 Item 6. Exhibits 72

Signatures

Signatures 73 i Table of Contents ESSENTIAL PROPERTIES REALTY TRUST, INC. CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets (In thousands, except share and per share data) June 30, 2024 December 31, 2023 (Unaudited) ASSETS Investments: Real estate investments, at cost: Land and improvements $ 1,730,117 $ 1,542,302 Building and improvements 3,162,052 2,938,012 Lease incentives 17,918 17,890 Construction in progress 169,844 96,524 Intangible lease assets 87,734 89,209 Total real estate investments, at cost 5,167,665 4,683,937 Less: accumulated depreciation and amortization ( 421,486 ) ( 367,133 ) Total real estate investments, net 4,746,179 4,316,804 Loans and direct financing lease receivables, net 294,982 223,854 Real estate investments held for sale, net 8,677 7,455 Net investments 5,049,838 4,548,113 Cash and cash equivalents 23,557 39,807 Restricted cash 935 9,156 Straight-line rent receivable, net 127,210 107,545 Derivative assets 36,049 30,980 Rent receivables, prepaid expenses and other assets, net 29,608 32,660 Total assets (1) $ 5,267,197 $ 4,768,261 LIABILITIES AND EQUITY Unsecured term loans, net of deferred financing costs $ 1,273,958 $ 1,272,772 Senior unsecured notes, net 396,125 395,846 Revolving credit facility 245,000 — Intangible lease liabilities, net 10,762 11,206 Dividend payable 51,124 47,182 Derivative liabilities 7,018 23,005 Accrued liabilities and other payables 30,939 31,248 Total liabilities (1) 2,014,926 1,781,259 Commitments and contingencies (see Note 11) — — Stockholders' equity: Preferred stock, $ 0.01 par value; 150,000,000 authorized; none issued and outstanding as of June 30, 2024 and December 31, 2023 — — Common stock, $ 0.01 par value; 500,000,000 authorized; 175,330,314 and 164,635,150 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 1,753 1,646 Additional paid-in capital 3,328,082 3,078,459 Distributions in excess of cumulative earnin

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements June 30, 2024 1. Organization Description of Business Essential Properties Realty Trust, Inc. (the "Company") is an internally managed real estate company that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. The Company generally invests in and leases freestanding, single-tenant commercial real estate facilities where a tenant services its customers and conducts activities that are essential to the generation of the tenant's sales and profits. The Company was organized on January 12, 2018 as a Maryland corporation. It elected to be taxed as a real estate investment trust ("REIT") for federal income tax purposes beginning with the year ended December 31, 2018, and it believes that its current organizational and operational status and intended distributions will allow it to continue to so qualify. Substantially all of the Company's business is conducted directly and indirectly through its operating partnership, Essential Properties, L.P. (the "Operating Partnership"). The common stock of the Company is listed on the New York Stock Exchange under the ticker symbol "EPRT". 2. Summary of Significant Accounting Policies Basis of Accounting The accompanying unaudited consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and with the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation have been included. The results of operations for the three and six months ended June 30, 2024 and 2023 are not necessarily indicative of the results for the full year. These unaudited financial statements should be read in conjunction with the audited consolidated fina