Essential Properties: Q3 Earnings Snapshot
Wednesday, Oct 23, 2024 4:55 pm ET
1min read Essential Properties Realty Trust, Inc. (EPRT) recently reported its third-quarter 2023 earnings, showcasing robust growth and a strong financial position. This article provides a snapshot of the company's earnings and key drivers, along with a comparison to analyst expectations and sector peers.
**Earnings and Revenue Growth**
EPRT's earnings per share (EPS) increased by 12% year-over-year (YoY) to $0.29, while funds from operations (FFO) per share grew by 18% to $0.45. The company's revenue growth outpaced its peers in the REIT sector, driven by strong investment activity and healthy tenant trends.
**Key Drivers of Earnings Growth**
1. **Investment Activity**: EPRT invested $213.3 million in 65 properties during Q3, with a weighted average cash cap rate of 7.6%. This strategic investment contributed significantly to FFO growth.
2. **Tenant Trends and Occupancy**: The company's weighted average occupancy remained high at 99.8%, with a strong weighted average rent coverage ratio of 4.0x. This stable occupancy and solid tenant trends supported earnings growth.
3. **Capital Market Executions**: EPRT raised $276.1 million through a follow-on offering and $10.7 million through its ATM program. These capital market executions allowed the company to fund its investment activities and strengthen its balance sheet.
**Balance Sheet Discipline and Investment Pace**
EPRT's balance sheet discipline and measured investment pace contributed to its strong FFO growth. The company ended the quarter with pro forma leverage of 3.7x and nearly $1 billion in available liquidity. This solid financial position enables EPRT to capitalize on accretive investment opportunities in the market.
In conclusion, Essential Properties Realty Trust, Inc. delivered a strong performance in Q3, with robust earnings and revenue growth driven by strategic investment activity, healthy tenant trends, and effective capital market executions. The company's balance sheet discipline and measured investment pace further support its financial sustainability. As EPRT continues to execute on its strategic objectives, investors should remain optimistic about the company's future prospects.
**Earnings and Revenue Growth**
EPRT's earnings per share (EPS) increased by 12% year-over-year (YoY) to $0.29, while funds from operations (FFO) per share grew by 18% to $0.45. The company's revenue growth outpaced its peers in the REIT sector, driven by strong investment activity and healthy tenant trends.
**Key Drivers of Earnings Growth**
1. **Investment Activity**: EPRT invested $213.3 million in 65 properties during Q3, with a weighted average cash cap rate of 7.6%. This strategic investment contributed significantly to FFO growth.
2. **Tenant Trends and Occupancy**: The company's weighted average occupancy remained high at 99.8%, with a strong weighted average rent coverage ratio of 4.0x. This stable occupancy and solid tenant trends supported earnings growth.
3. **Capital Market Executions**: EPRT raised $276.1 million through a follow-on offering and $10.7 million through its ATM program. These capital market executions allowed the company to fund its investment activities and strengthen its balance sheet.
**Balance Sheet Discipline and Investment Pace**
EPRT's balance sheet discipline and measured investment pace contributed to its strong FFO growth. The company ended the quarter with pro forma leverage of 3.7x and nearly $1 billion in available liquidity. This solid financial position enables EPRT to capitalize on accretive investment opportunities in the market.
In conclusion, Essential Properties Realty Trust, Inc. delivered a strong performance in Q3, with robust earnings and revenue growth driven by strategic investment activity, healthy tenant trends, and effective capital market executions. The company's balance sheet discipline and measured investment pace further support its financial sustainability. As EPRT continues to execute on its strategic objectives, investors should remain optimistic about the company's future prospects.
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