Essential Properties Realty Trust Inc (EPRT) Q3 2024 Earnings Call Highlights: Strong AFFO ...

GuruFocus.com10-25

AFFO per Share: $0.43, a 2% increase versus Q3 2023. Total AFFO: $77.9 million, up $11.6 million or 17% year-over-year. Cash Dividend: $0.29 per share, with an AFFO payout ratio of 67%. Retained Free ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEssential Properties Realty Trust Inc (EPRT) Q3 2024 Earnings Call Highlights: Strong AFFO ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-25 15:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/essential-properties-realty-trust-inc-071448853.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AFFO per Share: $0.43, a 2% increase versus Q3 2023.\nTotal AFFO: $77.9 million, up $11.6 million or 17% year-over-year.\nCash Dividend: $0.29 per share, with an AFFO payout ratio of 67%.\nRetained Free ...</p>\n\n<a href=\"https://finance.yahoo.com/news/essential-properties-realty-trust-inc-071448853.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EPRT","symbol_name":"Essential Properties Realty Trust Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/essential-properties-realty-trust-inc-071448853.html","article_id":"2478553676","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/GJ2YpJP1JuFIrIOeknOtkA--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/5b566a4f9ce1f1439ea9fcbd430b38d7"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2478553676","pubTimestamp":1729840488,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"AFFO per Share: $0.43, a 2% increase versus Q3 2023.Total AFFO: $77.9 million, up $11.6 million or 17% year-over-year.Cash Dividend: $0.29 per share, with an AFFO payout ratio of 67%.Retained Free Cash Flow: $26.8 million for the quarter.Income-Producing Gross Assets: $5.8 billion at quarter end.Investment Activity: $308 million through 37 transactions at an 8.1% cash yield.Same Store Rent Growth: 1.4% for the third quarter.Weighted Average Unit Level Rent Coverage Ratio: 3.6 times.2025 AFFO per Share Guidance: $1.84 to $1.89, implying over 7% growth at the midpoint.Cash G&A Expense Guidance for 2025: $28 million to $31 million.Dispositions: Nine properties sold for $17 million in net proceeds.GuruFocus has detected 8 Warning Sign with EPRT.Essential Properties Realty Trust Inc  reported strong portfolio performance with high occupancy and healthy same-store growth.Q: Why did Essential Properties Realty Trust decide to provide acquisition guidance for 2025, and is the implied AFFO grow","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"EPRT":"Essential Properties Realty Trust Inc."},"translate_title":"Essential Properties Realty Trust Inc(EPRT)2024年第三季度收益看涨期权亮点：强劲的AFFO……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EPRT":1},"content_text":"AFFO per Share: $0.43, a 2% increase versus Q3 2023.\nTotal AFFO: $77.9 million, up $11.6 million or 17% year-over-year.\nCash Dividend: $0.29 per share, with an AFFO payout ratio of 67%.\nRetained Free Cash Flow: $26.8 million for the quarter.\nIncome-Producing Gross Assets: $5.8 billion at quarter end.\nInvestment Activity: $308 million through 37 transactions at an 8.1% cash yield.\nWeighted Average Lease Term: 14.1 years.\nSame Store Rent Growth: 1.4% for the third quarter.\nWeighted Average Unit Level Rent Coverage Ratio: 3.6 times.\nPro Forma Leverage: 3.5 times.\nLiquidity: $1.2 billion.\n2025 AFFO per Share Guidance: $1.84 to $1.89, implying over 7% growth at the midpoint.\nCash G&A Expense Guidance for 2025: $28 million to $31 million.\nDispositions: Nine properties sold for $17 million in net proceeds.\n\n\nWarning! GuruFocus has detected 8 Warning Sign with EPRT.\n\nRelease Date: October 24, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nEssential Properties Realty Trust Inc (NYSE:EPRT) reported strong portfolio performance with high occupancy and healthy same-store growth.\nThe company maintained a low leverage ratio of 3.5 times and liquidity of $1.2 billion, positioning it well for future growth.\nEPRT established a 2025 AFFO per share guidance range of $1.84 to $1.89, implying a growth rate of over 7% at the midpoint.\nThe company achieved a weighted average cash yield of 8.1% on investments during the quarter, reflecting strong investment performance.\nEPRT's tenant base is diverse, with the largest tenant representing only 4.3% of annual base rent, reducing concentration risk.\n\n Negative Points \n\nFive properties reported damage due to hurricanes, causing substantial disruption and warranting insurance claims.\nThe company anticipates modest cap rate compression due to increased competition as capital markets normalize.\nThere is a potential headwind to AFFO per share due to the treasury stock method on unsettled forward equity, estimated at $0.02 for the full year 2024.\nThe company expects cash G&A expenses to increase slightly in 2025, driven by investments in infrastructure and staffing.\nEPRT's exposure to the car wash industry is above its soft ceiling of 15%, prompting proactive management to reduce concentration.\n\n Q & A Highlights \nQ: Why did Essential Properties Realty Trust decide to provide acquisition guidance for 2025, and is the implied AFFO growth sustainable? A: Peter Mavoides, President and CEO, explained that providing acquisition guidance is a natural evolution as the company matures, with a more predictable pipeline and stable cost of capital. While they have a robust business plan and differentiated investment strategy, he stopped short of projecting growth rates beyond 2025.\nQ: What are the assumptions regarding bad debt or tenant credit in the 2025 outlook, and is there any conservatism built into these assumptions? A: Mavoides noted that the watch list remains under 100 basis points, indicating a good historical spot. The guidance includes conservative assumptions, with historical credit loss statistics at 30 basis points per annum. The company typically provisions for credit events that may not materialize, allowing for potential upside.\nQ: Can you explain the decision-making process behind using existing forward shares versus issuing more shares? A: Mark Patten, CFO, stated that they plan to settle a fair amount of forward shares in the fourth quarter to address the investment pipeline and pay down the revolver. They have significant liquidity to execute their strategy and expect minimal equity issuance in 2025.\nQ: What factors drive the decision to dispose of certain properties, and who are the typical buyers? A: Mavoides explained that dispositions are driven by managing industry concentrations, lightening up on individual tenants, and selling assets that don't align with their strategy. Buyers are typically third parties, including local and regional buyers, sometimes motivated by 1031 exchanges.\nQ: How does the current competitive environment affect your acquisition strategy, and what are your expectations for cap rates? A: Mavoides noted that the competitive environment is influenced by the volatility of the 10-year treasury rate. A high 10-year rate limits competition, while a lower rate could lead to more aggressive competition. They expect cap rate compression as competition returns, but have not yet seen it in their pipeline.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2478553676"}