Essential Properties Realty Trust Q3 2024 10-Q Filed

TL;DR

**EPRT Q3 2024 10-Q is IN. Check financials for latest performance.**

AI Summary

Essential Properties Realty Trust, Inc. filed its 10-Q for the period ending September 30, 2024. The company, a real estate investment trust, reported its financial performance for the third quarter and the first nine months of the year. Key financial data and operational details are presented in this filing.

Why It Matters

This filing provides investors with the latest financial performance data for Essential Properties Realty Trust, Inc., crucial for understanding the company's operational health and investment value.

Risk Assessment

Risk Level: medium — As a real estate investment trust, EPRT is subject to market fluctuations, interest rate changes, and tenant-specific risks that can impact its financial performance.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which financial data is reported.)
• 2024-09-30 — As of Date (The date as of which the financial statements are presented.)
• 2023-12-31 — Prior Year End (Provides a comparison point to the previous fiscal year-end.)

Key Players & Entities

• ESSENTIAL PROPERTIES REALTY TRUST, INC. (company) — Filer
• 0001728951 (company) — Central Index Key
• 20240930 (date) — Period of Report
• 20241023 (date) — Filed as of Date

FAQ

Key Financial Figures

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

Filing Documents

• eprt-20240930.htm (10-Q) — 2596KB
• eprt10-qxex22xworkingfile.htm (EX-22) — 2KB
• 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
• 0001728951-24-000166.txt ( ) — 13269KB
• eprt-20240930.xsd (EX-101.SCH) — 114KB
• eprt-20240930_cal.xml (EX-101.CAL) — 143KB
• eprt-20240930_def.xml (EX-101.DEF) — 436KB
• eprt-20240930_lab.xml (EX-101.LAB) — 1038KB
• eprt-20240930_pre.xml (EX-101.PRE) — 756KB
• eprt-20240930_htm.xml (XML) — 2267KB

Financial Statements

Financial Statements Consolidated Balance Sheets as of September 3 0 , 202 4 (unaudited) and December 31, 202 3 2 Consolidated Statements of Operations for the three and nine months ended September 3 0 , 202 4 and 202 3 (unaudited) 3 Consolidated Statements of Comprehensive Income for the three and nine months ended September 3 0 , 202 4 and 202 3 (unaudited) 4 Consolidated Statements of Stockholders' Equity for the three and nine months ended September 3 0 , 202 4 and 202 3 (unaudited) 5 Consolidated Statements of Cash Flows for the nine months ended September 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 41 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 67 Item 4.

Controls and Procedures

Controls and Procedures 68 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 70 Item 1A.

Risk Factors

Risk Factors 70 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 70 Item 3. Defaults Upon Senior Securities 70 Item 4. Mine Safety Disclosures 70 Item 5. Other Information 70 Item 6. Exhibits 71

Signatures

Signatures 72 i Table of Contents ESSENTIAL PROPERTIES REALTY TRUST, INC. CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets (In thousands, except share and per share data) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Investments: Real estate investments, at cost: Land and improvements $ 1,799,183 $ 1,542,302 Building and improvements 3,302,198 2,938,012 Lease incentives 18,731 17,890 Construction in progress 200,725 96,524 Intangible lease assets 94,894 89,209 Total real estate investments, at cost 5,415,731 4,683,937 Less: accumulated depreciation and amortization ( 450,454 ) ( 367,133 ) Total real estate investments, net 4,965,277 4,316,804 Loans and direct financing lease receivables, net 336,210 223,854 Real estate investments held for sale, net 6,882 7,455 Net investments 5,308,369 4,548,113 Cash and cash equivalents 32,656 39,807 Restricted cash 6,055 9,156 Straight-line rent receivable, net 137,729 107,545 Derivative assets 17,823 30,980 Rent receivables, prepaid expenses and other assets, net 29,423 32,660 Total assets (1) $ 5,532,055 $ 4,768,261 LIABILITIES AND EQUITY Unsecured term loans, net of deferred financing costs $ 1,720,158 $ 1,272,772 Senior unsecured notes, net 396,264 395,846 Revolving credit facility 80,000 — Intangible lease liabilities, net 10,894 11,206 Dividend payable 51,124 47,182 Derivative liabilities 40,403 23,005 Accrued liabilities and other payables 31,566 31,248 Total liabilities (1) 2,330,409 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 September 30, 2024 and December 31, 2023 — — Common stock, $ 0.01 par value; 500,000,000 authorized; 175,331,836 and 164,635,150 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 1,753 1,646 Additional paid-in capital 3,330,653 3,078,459 Distributions in excess of

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 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 nine months ended September 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 consol