EPRT Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 10:29 AM CDT 32 min read

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Thursday, April 23, 2026 astatine 10 a.m. ET

• President & Chief Executive Officer — Peter M. Mavoides

• Chief Investment Officer — A. Joseph Peil

• Chief Operating Officer — R. Max Jenkins

• Chief Financial Officer — Robert W. Salisbury

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Peter M. Mavoides: Thanks, Sheryl, and convey you to everyone joining america contiguous for your involvement successful Essential Properties Realty Trust, Inc. We had a productive archetypal quarter, deploying $389 cardinal into 126 properties and raising $419 cardinal of equity successful enactment of our pipeline, portion increasing our AFFO per stock by 11% year-over-year. Despite a macro backdrop characterized by heightened volatility, our squad continued to root and execute charismatic concern opportunities, arsenic our quality to present superior is highly valued successful this environment. Our absorption connected servicing relationships and providing sale-leaseback superior to increasing mediate marketplace operators crossed our targeted industries continues to beryllium a differentiator for our company.

Investment headdress rates were unchangeable this quarter, with an archetypal headdress complaint of 7.7% and a GAAP output of 8.8%. This meaningful dispersed to our outgo of superior is simply a cardinal operator of our net growth. With $1.5 cardinal of disposable liquidity and debased leverage of 3.5x pro forma nett indebtedness to annualized adjusted EBITDAre, our equilibrium expanse positions america good to proceed to present compelling growth. Overall, concern enactment and portfolio recognition trends person started the twelvemonth up of our budgeted expectations. Coupling this with our concern trajectory drives our quality to summation our 2026 AFFO per stock guidance to a caller scope of $2.00 to $2.05.

We commensurately accrued our concern measurement guidance scope by $100 cardinal to a caller scope of $1.1 cardinal to $1.5 billion, and our currency G&A guidance has improved by $1 cardinal arsenic a effect of outgo subject arsenic the level continues to scale. Turning to the portfolio, we ended the 4th with investments successful 2,417 properties that were leased to implicit 400 tenants. Our weighted mean lease word accrued to astir 15 years, with conscionable 2.8% of our yearly basal rent expiring implicit the adjacent 3 years. With that, I volition crook the telephone implicit to A. Joseph Peil, our Chief Investment Officer, who volition supply an update connected our portfolio and plus absorption activity. AJ?

A. Joseph Peil: Thanks, Pete. Overall, our portfolio recognition trends stay healthy. With same-store rent maturation successful the archetypal 4th of 1.4% and occupancy of 99.7%, we had conscionable 7 vacant properties. Portfolio rent sum remains beardown astatine 3.5x, and the percent of ABR nether 1.5x rent sum declined by 140 ground points. Disposition measurement moderated to $10.2 cardinal astatine a headdress complaint of 6.9% pursuing an elevated 4th fourth of car lavation spot sales. Looking ahead, we proceed to expect humble disposition enactment driven by proactive plus management, arsenic good arsenic wide portfolio operation shaping.