10-Q - ESSENTIAL PROPERTIES REALTY TRUST, INC. (0001728951) (Filer)

Wed, Apr 23, 9:11 PM (25 days ago)

**Essential Properties Realty Trust, Inc. (EPRT) Q1 2025 Financial Health and Performance:** **Revenue and Profit Margins:** - **Revenue:** $129.4 million (up 25.9% YoY) - **Rental Revenue:** $121.8 million (up 23.6% YoY) - **Interest on Loans:** $7.5 million (up 58.8% YoY) - **Net Income:** $56.3 million (up 19.6% YoY) - **EPS:** $0.29 (up 3.6% YoY) **Cash Flow:** - **Operating Cash Flow:** $77.2 million (up 15.8% YoY) - **Investing Cash Flow:** -$284.1 million (up 23.2% YoY in outflow) - **Financing Cash Flow:** $209.0 million (up 109.6% YoY) **Earnings Changes:** - **Rental Revenue Growth:** Driven by portfolio growth (188 properties added) - **Interest Income Growth:** Due to increased mortgage loans receivable - **Interest Expense Increase:** Due to higher debt balance and interest rates **Quarterly Performance Discussion:** - **Portfolio Growth:** 2,138 properties (up 10% YoY) - **Occupancy:** 99.7% - **Top Ten Tenants:** Contribute 17.3% of annualized base rent - **Lease Terms:** Weighted average remaining lease term of 14.0 years - **Debt Maturity:** Weighted average debt maturity of 3.9 years **Trends and Uncertainties:** - **Market Conditions:** Potential impact of interest rate fluctuations - **Economic Factors:** Inflation and general economic climate - **Operational Risks:** Tenant defaults, property vacancies, and market competition **Future Operations Impact:** - **Investment Strategy:** Focus on middle-market companies and sale-leaseback transactions - **Financing Strategy:** Use of debt and equity capital, revolving credit facility, and potential asset sales - **Growth Strategy:** Continue portfolio diversification and strategic acquisitions **Summary:** EPRT's Q1 2025 shows strong revenue growth driven by portfolio expansion and increased interest income. The company maintains high occupancy rates and a diversified tenant base. However, rising interest expenses and potential economic uncertainties pose risks. EPRT's strategic focus on middle-market companies and disciplined underwriting will be crucial for sustained growth and risk management.