On July 24, 2024, Essential Properties Realty Trust Inc (EPRT, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Essential Properties Realty Trust Inc is a real estate investment trust that acquires, owns, and manages single-tenant properties net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses.
Performance Overview
Essential Properties Realty Trust Inc reported a net income per share of $0.29 for the second quarter of 2024, which represents a 17% decrease compared to the same period last year. This figure fell short of the analyst estimate of $0.30 per share. However, the company reported revenue of $106.41 million, surpassing the analyst estimate.
Financial Achievements
Despite the decline in net income per share, Essential Properties Realty Trust Inc achieved several financial milestones. The company closed investments worth $333.9 million at an 8.0% weighted average cash cap rate. Additionally, the company raised $137.0 million through its ATM program at a price of $27.15 per share.
Key Metrics and Financial Statements
Essential Properties Realty Trust Inc's Funds from Operations (FFO) per share increased by 9% to $0.47, while Core FFO per share also rose by 7% to $0.47. Adjusted Funds from Operations (AFFO) per share saw a 5% increase to $0.43. These metrics are crucial for REITs as they provide a clearer picture of the company's operational performance by excluding non-cash items and other non-recurring expenses.
| Metric | Q2 2024 | Change |
|---|---|---|
| Net Income per Share | $0.29 | -17% |
| FFO per Share | $0.47 | +9% |
| Core FFO per Share | $0.47 | +7% |
| AFFO per Share | $0.43 | +5% |
Debt, Equity, and Leverage
The company maintained a pro forma net debt to annualized adjusted EBITDAre ratio of 3.8x as of the quarter's end. Essential Properties Realty Trust Inc also raised $256.2 million through a follow-on offering in March 2024 and an additional $190.4 million through its ATM program.
CEO Commentary
"Our company continued to execute at a high level in the second quarter, raising and deploying capital accretively into attractive investments against the backdrop of a growing opportunity set. With our debt and equity capital needs met for the year, our focus remains on responsibly deploying our dry powder to drive earnings growth into 2025," said Pete Mavoides, President and CEO.
Portfolio Highlights
As of June 30, 2024, Essential Properties Realty Trust Inc's portfolio consisted of 2,009 properties with a weighted average lease term of 14.1 years and a weighted average rent coverage ratio of 3.7x. The portfolio was 99.8% leased to 395 tenants across 16 industries.
Guidance and Dividend Information
The company reiterated its 2024 AFFO guidance range of $1.72 to $1.75 per share. Additionally, a cash dividend of $0.29 per share was declared for the second quarter of 2024, representing an annualized dividend of $1.16 per share.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Essential Properties Realty Trust Inc for further details.
