Essential Properties Realty Trust (NYSE: EPRT) reported Q1 EPS of $0.15, $0.02 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $41.49 million versus the consensus estimate of $42.01 million.

First Quarter 2020 Financial and Operating Highlights

• Ended the quarter with a 99.5% leased portfolio with a weighted average lease term (“WALT”) of 14.6 years and a weighted average rent coverage ratio of 2.9x
• Reduced top 10 tenant concentration to 23.1%, a 30 bps sequential decline
• Invested $167.5 million in 63 properties at a 7.1% weighted average cash cap rate
• Net income per fully diluted share increased 15% to $0.15 per share
• Funds from Operations (“FFO”) per fully diluted share decreased 3% to $0.28 per share
• Grew Core Funds from Operations (“Core FFO”) per fully diluted share by 3% to $0.30
• Grew Adjusted Funds from Operations (“AFFO”) per fully diluted share by 7% to $0.29
• Raised $206.3 million in gross proceeds from the sale of shares of common stock through a follow-on equity offering and the Company’s at-the-market equity program (“ATM Program”)
• Net Debt to Annualized Adjusted EBITDAre was 4.6x at quarter end
• Cash and cash equivalents and restricted cash plus available capacity under revolving credit facility of $549.1 million at quarter end

CEO Comments

Commenting on the first quarter 2020 results, Essential Properties’ President and Chief Executive Officer, Pete Mavoides, said, “Our first quarter results were consistent with past quarters as our reliable execution resulted in a high percentage of our first quarter investment activity being relationship-based sale-leaseback transactions with operators of service-oriented and experience-based businesses. However, with the COVID-19 pandemic and wide-spread stay-at-home orders having a significant impact on the vast majority of our tenants, our focus has shifted away from external growth in order to stabilize our portfolio by proactively collaborating with our tenants to manage through the current crisis. While much uncertainty remains, we are confident in our portfolio’s ability to produce an attractive and predictable stream of cash flow over the long-term. Our balance sheet remains in excellent shape with nearly $550 million in available liquidity at quarter-end. Coupled with our experienced team of professionals, we are well positioned to manage the current situation and position this Company for growth as we emerge.”

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