- First Quarter Net Income per Share of $0.29 and AFFO per Share of $0.45 - - Closed Investments of $307.7 million at a 7.8% Weighted Average Cash Cap Rate - - Reiterates 2025 AFFO Guidance of $1.85 to $1.89 per Share -

PRINCETON, N.J., April 23, 2025--(BUSINESS WIRE)--Essential Properties Realty Trust, Inc. (NYSE: EPRT; "Essential Properties" or the "Company") today announced operating results for the three months ended March 31, 2025.

First Quarter 2025 Financial and Operating Highlights:

Operating Results (compared to First Quarter 2024):  •Investments (48 properties) $ Invested $307.7 million Weighted Avg Cash Cap Rate 7.8% •Dispositions (11 properties) Net Proceeds $24.3 million Weighted Avg Cash Cap Rate 6.9% •Net Income per Share Increased by 4% $0.29 •Funds from Operations ("FFO") per Share Increased by 4% $0.48 •Core Funds from Operations ("Core FFO") per Share Increased by 4% $0.48 •Adjusted Funds from Operations ("AFFO") per Share Increased by 7% $0.45 Equity & Leverage Update:  •Equity Raised (Gross) - Follow-On Offering (March 20, 2025) (1) $31.00/share $292.3 million •Equity Raised (Gross) - ATM Program (1) $32.43/share $20.6 million •Pro Forma Net Debt to Annualized Adjusted EBITDAre (2) As of Quarter End 3.4x

All shares were sold on a forward basis and a total of 13,452,504 shares remain unsettled for estimated net proceeds of $410.4 million. See page 10 for detailed calculation.

Activity Subsequent to First Quarter 2025:

•Investments $ Invested $135.0 million •Dispositions $ Gross Proceeds $3.8 million

CEO Comments

Commenting on the first quarter 2025 results, the Company's President and Chief Executive Officer, Pete Mavoides, said, "We've started off the year on a positive note, with strong execution on the investment front and resilient portfolio trends, supported by our capital markets activity. While the macroeconomic backdrop is choppy, our investment pipeline remains healthy, as we continue to support and build upon our existing relationships in our target middle market industries."

Portfolio Highlights

The Company’s investment portfolio as of March 31, 2025 is summarized as follows:

March 31, 2025 Number of properties  2,138 Weighted average lease term (WALT)  14.0 years Weighted average rent coverage ratio  3.5x Number of tenants  423 Number of industries  16 Weighted average occupancy  99.7% Total square feet of rentable space  22,991,664 Cash ABR - service-oriented or experience-based  93.3% Cash ABR - properties subject to master lease  66.3%

Portfolio Update

Investments

During the three months ended March 31, 2025, the Company's $307.7 million of investment activity had a weighted average closing date of February 26, 2025. Additional details about the Company’s investment activity during the three months ended March 31, 2025 are summarized as follows:

Story Continues

Quarter Ended

March 31, 2025 Investments:  Investment volume  $307.7 million Number of transactions  21 Property count  48 Weighted average cash / GAAP cap rate  7.8%/9.4% Weighted average lease escalation  2.2% % Subject to master lease  71% % Sale-leaseback transactions  90% % Existing relationship  86% % Required financial reporting (tenant/guarantor)  100% WALT  17.5 years

Dispositions

The Company’s disposition activity during the three months ended March 31, 2025 is summarized as follows:

Quarter Ended

March 31, 2025 Dispositions:  Net proceeds  $24.3 million Number of properties sold  11 Net gain / (loss)  $5.0 million Weighted average cash cap rate

(excluding vacant properties and sales subject to a tenant purchase option )  6.9%

Loan Repayments

Loan repayments to the Company during the three months ended March 31, 2025 are summarized as follows:

Quarter Ended

March 31, 2025 Loan Repayments:  Proceeds—Principal  $2.4 million Number of properties  3 Weighted average interest rate  7.0%

Leverage and Liquidity

The Company's leverage and liquidity as of March 31, 2025 are summarized in the following table.

March 31, 2025  Pro Forma (1) March 31, 2025 Leverage:  Net debt to Annualized Adjusted EBITDAre  4.3x  3.4x  Liquidity:  Cash and cash equivalents and restricted cash  $47.0 million  $457.4 million Unused revolving credit facility capacity  $1.0 billion  $1.0 billion Forward equity sales - unsettled  $410.4 million  — Total available liquidity  $1.5 billion  $1.5 billion  ATM Program:  October 2024 ATM Program initial availability  $750.0 million  Aggregate gross sales under the October 2024 ATM Program  $99.5 million  Availability remaining under the October 2024 ATM Program  $650.5 million

Pro forma adjustments have been made to reflect the 13,452,504 unsettled shares sold on a forward basis through the Company's March 2025 follow-on offering and through its ATM Program as if they had been physically settled for cash on March 31, 2025.

Equity Activity

The Company's equity activity during the three months ended March 31, 2025 is summarized in the following table.

Primary Offerings  ATM Program  Total Shares  Price

(Net) (1)  Shares  Price

(Net) (1)  Shares  Price

(Net) (1)  Net Proceeds (000s) Forward Shares Unsettled -

December 31, 2024  —  $—  13,119,110   $29.18  13,119,110   $29.18  $382,838  Shares Sold - Current Quarter  9,430,000  30.32  635,400   31.99  10,065,400   30.42  306,225  Shares Settled - Current Quarter  —  —  (9,732,006 )  28.63  (9,732,006 )  28.63  (278,627 ) Forward Shares Unsettled - March 31, 2025  9,430,000    4,022,504     13,452,504   $30.51  $410,436

All prices are inclusive of forward price adjustments as of March 31, 2025.

Guidance

2025 Guidance

The Company reiterates its previously issued expectation that 2025 AFFO per share on a fully diluted basis will be within a range of $1.85 to $1.89. The guidance range includes an estimate for investment volume of $900 million to $1.1 billion, and Cash G&A expense of $28 million to $31 million.

Note: The Company does not provide guidance for the most comparable GAAP financial measure, net income, or a reconciliation of the forward-looking non-GAAP financial measure of AFFO to net income computed in accordance with GAAP, because it is unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measure, including items that are not indicative of the Company's ongoing operations, such as, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses and stock-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on the Company's GAAP results for the guidance period.

Dividend Information

As previously announced, on March 7, 2025, Essential Properties' board of directors declared a cash dividend of $0.295 per share of common stock for the quarter ended March 31, 2025. The first quarter 2025 dividend represents an annualized dividend of $1.18 per share of common stock. The dividend was paid on April 11, 2025 to stockholders of record as of the close of business on March 31, 2025.

Conference Call Information

In conjunction with the release of Essential Properties’ operating results, the Company will host a conference call on Thursday, April 24, 2025 at 10:00 a.m. EDT to discuss the results. To access the conference, dial 800-274-8461 (International: 203-518-9814) and use the conference ID: EPRT. A live webcast will also be available in listen-only mode by clicking on the webcast link in the Investor Relations section at www.essentialproperties.com.

A telephone replay of the conference call can also be accessed by calling 844-512-2921 (International: 412-317-6671) and entering the access code: 11158704. The telephone replay will be available through May 8, 2025.

A replay of the conference call webcast will be available on our website approximately three hours after the conclusion of the live broadcast. The webcast replay will be available for 90 days. No access code is required for this replay.

Supplemental Materials

The Company’s Investor Presentation and Supplemental Information—First Quarter 2025 is available on Essential Properties’ website at investors.essentialproperties.com.

About Essential Properties Realty Trust, Inc.

Essential Properties Realty Trust, Inc. 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. As of March 31, 2025, the Company’s portfolio consisted of 2,138 freestanding net lease properties with a weighted average lease term of 14.0 years and a weighted average rent coverage ratio of 3.5x. In addition, as of March 31, 2025, the Company’s portfolio was 99.7% leased to 423 tenants operating 604 different concepts in 16 industries across 49 states.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. When used in this press release, the words "estimate," "anticipate," "expect," "believe," "intend," "may," "will," "should," "seek," "approximately" or "plan," or the negative of these words and phrases or similar words or phrases that are predictions of or indicate 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 or intentions of management. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and the Company may not be able to realize them. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur as described, or at all.

Additional information concerning factors that could cause actual results to differ materially from these forward-looking statements is contained in the company’s Securities and Exchange Commission (the "Commission") filings, including, but not limited to, the Company’s most recent Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the Commission. Such forward-looking statements should be regarded solely as reflections of the Company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release.

The results reported in this press release are preliminary and not final. There can be no assurance that these results will not vary from the final results reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 that it will file with the Commission.

Essential Properties Realty Trust, Inc. Consolidated Statements of Operations

Three months ended March 31, (in thousands, except share and per share data)   2025    2024  (Unaudited)  (Unaudited) Revenues:  Rental revenue1,2  $ 121,792   $ 98,510  Interest on loans and direct financing lease receivables   7,525    4,740  Other revenue   37    251  Total revenues   129,354    103,501   Expenses:  General and administrative   11,543    9,358  Property expenses2   2,257    993  Depreciation and amortization   34,993    28,525  Provision for impairment of real estate   5,883    3,752  Change in provision for credit losses   44    2  Total expenses   54,720    42,630  Other operating income:  Gain on dispositions of real estate, net   4,984    1,512  Income from operations   79,618    62,383  Other (expense)/income:  Interest expense   (23,793 )   (15,597 ) Interest income   614    493  Income before income tax expense   56,439    47,279  Income tax expense   158    156  Net income   56,281    47,123  Net income attributable to non-controlling interests   (173 )   (148 ) Net income attributable to stockholders  $ 56,108   $ 46,975   Basic weighted-average shares outstanding   188,460,600    167,290,702  Basic net income per share  $ 0.30   $ 0.28   Diluted weighted-average shares outstanding   190,955,103    168,854,601  Diluted net income per share  $ 0.29   $ 0.28

Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $207 and $238 for the three months ended March 31, 2025 and 2024, respectively. Includes reimbursable income or reimbursable expenses from the Company’s tenants of $1,529 and $548 for the three months ended March 31, 2025 and 2024, respectively.

Essential Properties Realty Trust, Inc. Consolidated Balance Sheets

(in thousands, expect share and per share amounts)  March 31, 2025  December 31, 2024 (Unaudited)  (Audited) ASSETS  Investments:  Real estate investments, at cost:  Land and improvements  $ 1,949,333   $ 1,865,610  Building and improvements   3,796,460    3,536,000  Lease incentives   18,622    17,903  Construction in progress   88,295    153,789  Intangible lease assets   98,190    94,047  Total real estate investments, at cost   5,950,900    5,667,349  Less: accumulated depreciation and amortization   (510,188 )   (476,827 ) Total real estate investments, net   5,440,712    5,190,522  Loans and direct financing lease receivables, net   354,716    352,066  Real estate investments held for sale, net   3,446    10,018  Net investments   5,798,874    5,552,606  Cash and cash equivalents   47,003    40,713  Restricted cash   —    4,265  Straight-line rent receivable, net   153,985    143,435  Derivative assets   17,744    27,714  Rent receivables, prepaid expenses and other assets, net   39,307    29,949  Total assets  $ 6,056,913   $ 5,798,682   LIABILITIES AND EQUITY  Unsecured term loans, net of deferred financing costs  $ 1,722,094   $ 1,721,114  Senior unsecured notes, net   396,542    396,403  Revolving credit facility   —    —  Intangible lease liabilities, net   10,399    10,700  Dividend payable   58,655    55,608  Derivative liabilities   20,099    7,585  Accrued liabilities and other payables   25,887    35,145  Total liabilities   2,233,676    2,226,555  Commitments and contingencies   —    —  Stockholders' equity:  Preferred stock, $0.01 par value; 150,000,000 authorized; none issued and outstanding as of March 31, 2025 and December 31, 2024   —    —  Common stock, $0.01 par value; 500,000,000 authorized; 197,512,316 and 187,537,592 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   1,974    1,875  Additional paid-in capital   3,940,268    3,658,219  Distributions in excess of cumulative earnings   (121,862 )   (113,302 ) Accumulated other comprehensive (loss) income   (5,409 )   16,886  Total stockholders' equity   3,814,971    3,563,678  Non-controlling interests   8,266    8,449  Total equity   3,823,237    3,572,127  Total liabilities and equity  $ 6,056,913   $ 5,798,682

Essential Properties Realty Trust, Inc. Reconciliation of Non-GAAP Financial Measures

Three months ended March 31, (unaudited, in thousands except per share amounts)   2025    2024  Net income  $ 56,281   $ 47,123  Depreciation and amortization of real estate   34,950    28,485  Provision for impairment of real estate   5,883    3,752  Gain on dispositions of real estate, net   (4,984 )   (1,512 ) Funds from Operations   92,130    77,848  Non-core expense (income)   —    —  Core Funds from Operations   92,130    77,848  Adjustments:  Straight-line rental revenue, net   (10,973 )   (9,980 ) Non-cash interest   1,278    949  Non-cash compensation expense   3,968    2,945  Other amortization expense   252    219  Other non-cash adjustments   272    (7 ) Capitalized interest expense   (1,226 )   (859 ) Adjusted Funds from Operations  $ 85,701   $ 71,115   Net income per share1:  Basic  $ 0.30   $ 0.28  Diluted  $ 0.29   $ 0.28  FFO per share1:  Basic  $ 0.49   $ 0.46  Diluted  $ 0.48   $ 0.46  Core FFO per share1:  Basic  $ 0.49   $ 0.46  Diluted  $ 0.48   $ 0.46  AFFO per share1:  Basic  $ 0.45   $ 0.42  Diluted  $ 0.45   $ 0.42

Calculations exclude $226 and $116 from the numerator for the three months ended March 31, 2025 and 2024, respectively, related to dividends paid on unvested restricted stock units and LTIP units.

Essential Properties Realty Trust, Inc. Reconciliation of Non-GAAP Financial Measures

(in thousands)  Three months ended March 31, 2025 Net income  $ 56,281  Depreciation and amortization   34,993  Interest expense   23,793  Interest income   (614 ) Income tax expense   158  EBITDA   114,611  Provision for impairment of real estate   5,883  Gain on dispositions of real estate, net   (4,984 ) EBITDAre   115,510  Adjustment for current quarter re-leasing, acquisition and disposition activity1   4,267  Adjustment for other non-core or non-recurring activity2   2,487  Adjustment to exclude termination/prepayment fees and certain percentage rent3   (157 ) Adjusted EBITDAre - Current Estimated Run Rate   122,107  General and administrative expense   10,550  Adjusted net operating income ("NOI")   132,657  Straight-line rental revenue, net1   (12,836 ) Other amortization expense   252  Adjusted Cash NOI  $ 120,073   Annualized EBITDAre  $ 462,040  Annualized Adjusted EBITDAre  $ 488,428  Annualized Adjusted NOI  $ 530,628  Annualized Adjusted Cash NOI  $ 480,292

Adjustment is made to reflect EBITDAre, NOI and Cash NOI as if all re-leasing activity, investments in and dispositions of real estate and loan repayments completed during the three months ended March 31, 2025 had occurred on January 1, 2025. Adjustment is made to i) exclude non-core adjustments made in computing Core FFO, ii) exclude changes in the Company's provision for credit losses and iii) eliminate the impact of seasonal fluctuation in certain non-cash compensation expense recorded in the period. Adjustment excludes lease termination or loan prepayment fees and contingent rent (based on a percentage of the tenant's gross sales at the leased property) where payment is subject to exceeding a sales threshold specified in the lease, if any.

Essential Properties Realty Trust, Inc. Reconciliation of Non-GAAP Financial Measures

(dollars in thousands, except share and per share amounts)  March 31, 2025  Rate  Wtd. Avg. Maturity  Unsecured debt:  February 2027 term loan1  $ 430,000   2.4 %  1.9 years January 2028 term loan1   400,000   4.6 %  2.8 years February 2029 term loan1,2   450,000   5.3 %  3.9 years January 2030 term loan1,2   450,000   4.8 %  4.8 years Senior unsecured notes due July 2031   400,000   3.1 %  6.3 years Revolving credit facility2,3   —   — %  4.9 years Total unsecured debt   2,130,000   4.1 %  3.9 years Gross debt   2,130,000  Less: cash & cash equivalents   (47,003 )  Less: restricted cash available for future investment   —  Net debt   2,082,997   Equity:  Preferred stock   —  Common stock & OP units (198,066,163 shares @ $32.64/share as of 3/31/25)4   6,464,880  Total equity   6,464,880  Total enterprise value ("TEV")  $ 8,547,877   Pro forma adjustments to Net debt and TEV:5  Net debt  $ 2,082,997  Less: Unsettled forward equity (13,452,504 shares @ $30.51/share as of 3/31/25)   (410,436 )  Pro forma net debt   1,672,561  Total equity   6,464,880  Common stock — unsettled forward equity (13,452,504 shares @ $32.64/share as of 3/31/25)   439,090  Pro forma TEV  $ 8,576,531   Gross Debt / Undepreciated Gross Assets   32.4 %  Net Debt / TEV   24.4 %  Net Debt / Annualized Adjusted EBITDAre  4.3x   Pro Forma Gross Debt / Undepreciated Gross Assets   30.5 %  Pro Forma Net Debt / Pro Forma TEV   19.5 %  Pro Forma Net Debt / Annualized Adjusted EBITDAre  3.4x

Rates presented for the Company's term loans are fixed at the stated rates after giving effect to its interest rate swaps plus applicable margin and SOFR premium of 95bps. Weighted average maturity calculation is made after giving effect to extension options exercisable at the Company's election. The Company's revolving credit facility provides a maximum aggregate initial original principal amount of up to $1.0 billion and includes an accordion feature to increase, subject to certain conditions, the maximum availability of the facility by up to $1.0 billion. Borrowings bear interest at Term SOFR plus applicable margin of 77.5bps. Common stock & OP units as of March 31, 2025, based on 197,512,316 common shares outstanding and 553,847 OP units held by non-controlling interests. Pro forma adjustments have been made to reflect the unsettled portion of shares sold on a forward basis through the Company's March 2025 follow-on offering and through its ATM Program as if they had been physically settled for cash on March 31, 2025.

Non-GAAP Financial Measures and Certain Definitions

The Company’s reported results are presented in accordance with GAAP. The Company also discloses the following non-GAAP financial measures: FFO, Core FFO, AFFO, earnings before interest, taxes, depreciation and amortization ("EBITDA"), EBITDA further adjusted to exclude gains (or losses) on sales of depreciable property and real estate impairment losses ("EBITDAre"), adjusted EBITDAre, annualized adjusted EBITDAre, net debt, net operating income ("NOI") and cash NOI ("Cash NOI"). The Company believes these non-GAAP financial measures are industry measures used by analysts and investors to compare the operating performance of REITs.

FFO, Core FFO and AFFO

The Company computes FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as GAAP net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO is used by management, and may be useful to investors and analysts, to facilitate meaningful comparisons of operating performance between periods and among the Company’s peers primarily because it excludes the effect of real estate depreciation and amortization and net gains and losses on sales (which are dependent on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions).

The Company computes Core FFO by adjusting FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that it believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Core FFO provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of our core business operations. Items included in calculating FFO that may be excluded in calculating Core FFO include certain transaction related gains, losses, income or expenses or other non-core amounts as they occur.

To derive AFFO, the Company modifies its computation of Core FFO to include other adjustments to GAAP net income related to certain items that it believes are not indicative of the Company’s operating performance, including straight-line rental revenue, non-cash interest, non-cash compensation expense, other amortization expense, other non-cash adjustments and capitalized interest expense. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. The Company believes that AFFO is an additional useful supplemental measure for investors to consider when assessing the Company’s operating performance without the distortions created by non-cash items and certain other revenues and expenses.

FFO, Core FFO and AFFO do not include all items of revenue and expense included in net income, they do not represent cash generated from operating activities and they are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, our computation of FFO, Core FFO and AFFO may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs.

EBITDA and EBITDAre

The Company computes EBITDA as earnings before interest, income taxes and depreciation and amortization. In 2017, NAREIT issued a white paper recommending that companies that report EBITDA also report EBITDAre. The Company computes EBITDAre in accordance with the definition adopted by NAREIT. NAREIT defines EBITDAre as EBITDA (as defined above) excluding gains (or losses) from the sales of depreciable property and real estate impairment losses. The Company presents EBITDA and EBITDAre as they are measures commonly used in its industry and the Company believes that these measures are useful to investors and analysts because they provide supplemental information concerning its operating performance, exclusive of certain non-cash items and other costs. The Company uses EBITDA and EBITDAre as measures of its operating performance and not as measures of liquidity.

EBITDA and EBITDAre do not include all items of revenue and expense included in net income, they do not represent cash generated from operating activities and they are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, the Company’s computation of EBITDA and EBITDAre may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs.

Net Debt

The Company calculates its net debt as its gross debt (defined as total debt plus net deferred financing costs on its secured borrowings) less cash and cash equivalents and restricted cash available for future investment. The Company believes excluding cash and cash equivalents and restricted cash available for future investment from gross debt, all of which could be used to repay debt, provides an estimate of the net contractual amount of borrowed capital to be repaid, which it believes is a beneficial disclosure to investors and analysts.

NOI and Cash NOI

The Company computes NOI as total revenues less property expenses. NOI excludes all other items of expense and income included in the financial statements in calculating net income or loss. Cash NOI further excludes non-cash items included in total revenues and property expenses, such as straight-line rental revenue and other amortization and non-cash adjustments. The Company believes NOI and Cash NOI provide useful information because they reflect only those revenue and expense items that are incurred at the property level and present such items on an unlevered basis.

NOI and Cash NOI are not measures of financial performance under GAAP. You should not consider the Company’s NOI and Cash NOI as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. Additionally, the Company’s computation of NOI and Cash NOI may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs.

Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI

The Company further adjusts EBITDAre, NOI and Cash NOI i) based on an estimate calculated as if all investment and disposition activity that took place during the quarter had occurred on the first day of the quarter, ii) to exclude certain GAAP income and expense amounts that the Company believes are infrequent and unusual in nature and iii) to eliminate the impact of lease termination or loan prepayment fees and contingent rental revenue from its tenants which is subject to sales thresholds specified in the lease. The Company then annualizes these estimates for the current quarter by multiplying them by four, which it believes provides a meaningful estimate of the Company’s current run rate for all investments as of the end of the current quarter. You should not unduly rely on these measures, as they are based on assumptions and estimates that may prove to be inaccurate. The Company’s actual reported EBITDAre, NOI and Cash NOI for future periods may be significantly less than these estimates of current run rates.

Cash ABR

Cash ABR means annualized contractually specified cash base rent in effect as of the end of the current quarter for all of the Company’s leases (including those accounted for as direct financing leases) commenced as of that date and annualized cash interest on its mortgage loans receivable as of that date.

Cash Cap Rate

Cash Cap Rate means annualized contractually specified cash base rent for the first full month after investment or disposition divided by the purchase or sale price, as applicable, for the property.

GAAP Cap Rate

GAAP Cap Rate means annualized rental income computed in accordance with GAAP for the first full month after investment divided by the purchase price, as applicable, for the property.

Rent Coverage Ratio

Rent coverage ratio means the ratio of tenant-reported or, when unavailable, management’s estimate based on tenant-reported financial information, annual EBITDA and cash rent attributable to the leased property (or properties, in the case of a master lease) to the annualized base rental obligation as of a specified date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250423004332/en/

Contacts

Investor/Media: 
Essential Properties Realty Trust, Inc.
Robert W. Salisbury, CFA
Senior Vice President, Head of Corporate Finance & Strategy
609-436-0619
[email protected]

View Comments