Essential Properties Realty Trust Inc (EPRT) Announces Q3 2023 Results
Essential Properties Realty Trust Inc (NYSE:EPRT) reported a net income per share of $0.29 and AFFO per share of $0.42 for Q3 2023.
The company closed investments of $213.3 million at a 7.6% weighted average cash cap rate.
EPRT issued 2024 AFFO guidance of $1.71 to $1.75 per share and increased the bottom end of the range for 2023 AFFO guidance to $1.64 to $1.65 per share.
The company's portfolio as of September 30, 2023, consisted of 1,793 properties with a weighted average lease term of 13.9 years and a weighted average rent coverage ratio of 4.0x.
Essential Properties Realty Trust Inc (NYSE:EPRT) announced its Q3 2023 results on October 25, 2023. The company reported a net income per share of $0.29, an increase of 12% compared to Q3 2022. The AFFO per share was $0.42, marking an 11% increase from the same period last year. EPRT closed investments of $213.3 million at a 7.6% weighted average cash cap rate.
Financial and Operating Highlights
EPRT's Q3 2023 financial and operating highlights include a new $450 million 2029 term loan with a delayed draw feature, of which $375.0 million was drawn as of September 30, 2023. The company also raised $276.1 million through a follow-on offering and $10.7 million through an ATM program.
Year to date, EPRT invested $697.8 million in 200 properties at a weighted average cash cap rate of 7.5%. The company's net income per share increased by 27% to $0.94, and the AFFO per share increased by 7% to $1.23.
CEO's Commentary
We are pleased to report strong third quarter results, which were highlighted by continued healthy tenant trends, solid investment activity, and timely capital market executions. With quarter-end pro forma leverage of 3.7x and nearly $1 billion of available liquidity, our balance sheet is well-positioned to capitalize on accretive investment opportunities in a marketplace characterized by increasing pricing power for our capital. Our newly issued AFFO per share guidance for 2024 assumes continued balance sheet discipline and a measured pace of investment activity. - Pete Mavoides, President and Chief Executive Officer of EPRT
Portfolio Highlights
As of September 30, 2023, EPRT's investment portfolio consisted of 1,793 properties with a weighted average lease term (WALT) of 13.9 years and a weighted average rent coverage ratio of 4.0x. The portfolio was 99.8% leased to 363 tenants operating 584 different concepts in 16 industries across 48 states.
Guidance
EPRT issued its 2024 AFFO guidance, expecting the per-share amount to be within a range of $1.71 to $1.75. The company also updated its 2023 AFFO guidance, increasing the bottom end of the range to $1.64 to $1.65 per share.
Essential Properties Realty Trust Inc (NYSE:EPRT) is an internally managed REIT that acquires, owns, and manages primarily single-tenant properties that are net leased on a long-term basis to companies operating service-oriented or experience-based businesses.
Explore the complete 8-K earnings release (here) from Essential Properties Realty Trust Inc for further details.
This article first appeared on GuruFocus.
