Essential Properties Realty Trust Files 2024 10-K

TL;DR

EPRT filed its 2024 10-K. All systems go for this REIT.

AI Summary

Essential Properties Realty Trust, Inc. filed its 2024 10-K on February 12, 2025, detailing its financial performance for the fiscal year ending December 31, 2024. The company, a real estate investment trust, operates within the real estate sector. The filing provides comprehensive financial data and business operations for the period.

Why It Matters

This filing provides investors with a detailed look at Essential Properties Realty Trust's financial health and operational performance for the past fiscal year, crucial for investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not inherently indicate new risks beyond those typical for a real estate investment trust.

Key Numbers

• 2024 — Fiscal Year (Reporting period for the 10-K filing.)
• 1231 — Fiscal Year End (Indicates the end date of the reporting period.)
• 001-38530 — SEC File Number (Unique identifier for the company's SEC filings.)

Key Players & Entities

• ESSENTIAL PROPERTIES REALTY TRUST, INC. (company) — Filer
• 0001728951 (company) — Central Index Key
• 2024-12-31 (date) — Fiscal Year End
• 2025-02-12 (date) — Filing Date
• 902 CARNEGIE CENTER BLVD. SUITE 520, PRINCETON, NJ 08540 (location) — Business Address

FAQ

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value EPRT New York Stock Exchange
• $27.71 — ased on the last reported sale price of $27.71 per share on the New York Stock Exchang
• $460.6 million — 2% of our total annualized base rent of $460.6 million was attributable to properties operated
• $2.9 million — our average investment per property was $2.9 million (which equals our aggregate investment
• $1.2 billion — g Highlights During 2024, we completed $1.2 billion of investments in 297 properties, inclu
• $138.5 million — nvestments in 297 properties, including $138.5 million in newly originated mortgage loans rece
• $6.0 billion — ments in mortgage loans receivable, was $6.0 billion and we had total debt of $2.1 billion.
• $2.1 billion — s $6.0 billion and we had total debt of $2.1 billion. During 2024, our Board of Directors (
• $1.16 — ar ended December 31, 2024 that totaled $1.16 per share of common stock. In March 20
• $24.75 — l shares, at a public offering price of $24.75 per share. All shares were physically s
• $245.0 million — and commissions and other expenses, of $245.0 million. During 2024, we sold 19,704,599 share
• $29.52 — t a weighted average price per share of $29.52 for gross proceeds of $581.7 million, i
• $581.7 m — r share of $29.52 for gross proceeds of $581.7 million, including 13,119,110 shares sold
• $1.0 b — ecember 31, 2024, our liquidity totaled $1.0 billion, which includes $45.0 million of
• $45.0 million — ty totaled $1.0 billion, which includes $45.0 million of cash and cash equivalents and restri

Filing Documents

• eprt-20241231.htm (10-K) — 5759KB
• eprt10-kxexx108xworkingfile.htm (EX-10.8) — 1339KB
• eprt10-kxexx191xworkingfile.htm (EX-19.1) — 34KB
• eprt10-kxexx211xworkingfile.htm (EX-21.1) — 10KB
• eprt10-kxexx22xworkingfile.htm (EX-22) — 2KB
• eprt10-kxexx231xworkingfile.htm (EX-23.1) — 2KB
• eprt10-kxexx311xworkingfile.htm (EX-31.1) — 11KB
• eprt10-kxexx312xworkingfile.htm (EX-31.2) — 12KB
• eprt10-kxexx321xworkingfile.htm (EX-32.1) — 6KB
• eprt10-kxexx322xworkingfile.htm (EX-32.2) — 6KB
• eprt10-kxexx971xworkingfile.htm (EX-97.1) — 24KB
• eprt-20241231_g1.jpg (GRAPHIC) — 96KB
• image_1.jpg (GRAPHIC) — 39KB
• image_1a.jpg (GRAPHIC) — 39KB
• 0001728951-25-000031.txt ( ) — 26931KB
• eprt-20241231.xsd (EX-101.SCH) — 132KB
• eprt-20241231_cal.xml (EX-101.CAL) — 150KB
• eprt-20241231_def.xml (EX-101.DEF) — 528KB
• eprt-20241231_lab.xml (EX-101.LAB) — 1212KB
• eprt-20241231_pre.xml (EX-101.PRE) — 878KB
• eprt-20241231_htm.xml (XML) — 5628KB

Business

Item 1. Business 4

Risk Factors

Item 1A. Risk Factors 16

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 35

Cybersecurity

Item 1C. Cybersecurity 35

Properties

Item 2. Properties 37

Legal Proceedings

Item 3. Legal Proceedings 43

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 43 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 44

[Reserved]

Item 6. [Reserved] 45

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

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 46

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 64

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 65

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 108

Controls and Procedures

Item 9A. Controls and Procedures 108

Other Information

Item 9B. Other Information 109

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 109 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 110

Executive Compensation

Item 11. Executive Compensation 110

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 110

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 110

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 110 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 111

Form 10-K Summary

Item 16. Form 10-K Summary 113

Signatures

Signatures 114 Schedules F- 1 2 PART I In this Annual Report, we refer to Essential Properties Realty Trust, Inc., a Maryland corporation, together with its consolidated subsidiaries, including, Essential Properties, L.P., a Delaware limited partnership and its operating partnership (the "Operating Partnership"), as "we," "us," "our" or "the Company" unless we specifically state otherwise or the context otherwise requires. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In particular, statements pertaining to our business and growth strategies, investment, financing and leasing activities and trends in our business, including trends in the market for long-term, net leases of freestanding, single-tenant properties, contain forward-looking statements. When used in this report, the words "estimate," "anticipate," "expect," "believe," "intend," "may," "will," "should," "seek," "approximately" and "plan," and variations of such words, and similar words or phrases, that are predictions of 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, beliefs or intentions of management. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from the results of operations or plans expressed or implied by such forward-looking statements; accordingly, you should not rely on forward-looking statements as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and may not be realized. We do not g

Business

Item 1. Business. We are 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. We have assembled a diversified portfolio using a disciplined strategy that focuses on properties leased to tenants in businesses including, but not limited to,: Car washes, Medical and dental services, Early childhood education, 4 Quick service restaurants, Entertainment, Automotive services, Casual dining restaurants, Convenience stores, Equipment rental and sales, Health and fitness, and Grocery. We believe that, in general, properties leased to tenants in these industries and similar businesses are essential to the generation of the tenants' sales and profits. We also believe that these businesses have favorable growth potential and, because of their nature, they are more insulated from the competitive pressures presented by e-commerce than many other businesses. We completed our initial public offering in June 2018 and we qualified to be taxed as a REIT beginning with our taxable year ended December 31, 2018. As of December 31, 2024, 93.2% of our total annualized base rent of $460.6 million was attributable to properties operated by tenants in service-oriented and experience-based businesses. "Annualized base rent" means annualized contractually specified cash base rent in effect on December 31, 2024 for all of our leases (including those accounted for as loans or direct financing leases) commenced as of that date and annualized cash interest on our mortgage loans receivable as of that date. Our primary business objective is to maximize stockholder value by generating attractive risk-adjusted returns through owning, managing and growing a diversified portfolio of commercially desirable properties. We have grown significantly since commencing our operations and investment activities in Jun