IPO: Essential Properties Realty Trust (EPRT)

Essential Properties Realty Trust, Inc. (NYSE:EPRT) was founded in March 2016 and is headquartered in Princeton, New Jersey, USA. It has 19 full-time employees. It is an internally managed real estate company that mainly acquires, owns and manages single-tenant properties. Based on long-term contracts, leased to service-oriented and experience-oriented companies, such as consulting companies, human resources companies, etc.

Essential Properties Realty Trust

Essential Properties Realty Trust (EPRT):

Essential Properties Realty Trust, Inc. has combined a diversified investment portfolio with an investment strategy that focuses on the catering industry (such as fast food services and leisure and home catering), car washes, car services, medical services, convenience stores, entertainment , Early childhood education, health and fitness industry tenants lease properties. The company believes that the properties leased to these corporate tenants are critical to the tenant’s sales and profit generation, and these companies show good growth characteristics and usually do not directly face the pressure of e-commerce.

As of March 31, 2018, 87.6% of Essential Properties Realty Trust’s $75.7 million annual base rent came from service-oriented and experience-oriented tenants.

The goal of Essential Properties Realty Trust is to create attractive risk-adjusted returns by owning, managing and developing a diversified commercial property portfolio, thereby maximizing shareholder value. Since the start of investment activities in June 2016, the company has achieved strategic growth. As of March 31, 2018, Essential Properties Realty Trust has a portfolio of 530 properties (including two undeveloped plots and two properties under development), built on the following core features:

1. Diversified Portfolio (Diversified Portfolio) . In the company’s investment portfolio, 127 tenants account for 99.1% of the share, and 112 different brands operate in 15 industries in 42 states. The company’s single tenant contributes less than 6.8% to the company’s revenue.

2. Long Remaining Lease Term (Long Remaining Lease Term) . The weighted average remaining lease term of the company’s lease contract is 13.8 years (calculated on an annualized base rent), and only 4.4% of annualized lease contracts expire before January 1, 2023.

3. Significant Use of Master Leases . 64.8% of Essential Properties Realty Trust’s annual basic rent is attributable to the main lease.

4. Healthy Rent Coverage Ratio and Extensive Tenant Financial Reporting (Healthy Rent Coverage Ratio and Extensive Tenant Financial Reporting) . The weighted average rental coverage of the company’s investment portfolio is 2.9 times, and 97.4% of the company’s leases (based on the annualized base rent) promises that the lessee will provide the company with designated unit-level financial reports on a regular basis.

5. Contractual Base Rent Escalation (Contractual Base Rent Escalation) . 95.4% of Essential Properties Realty Trust’s lease (based on annualized base rent) is used for future base rent increases, with a weighted average interest rate of 1.5% per annum.

6. Differentiated Investment Approach . The average total investment of each property of the company is 1.9 million U.S. dollars (calculated by dividing the total investment as of March 31, 2018 by the number of properties owned by the company, including transaction costs, lease concessions and appropriations of funds for construction in progress) ), the company believes that investments of similar scale enable it to expand its investment portfolio without concentrating large amounts of funds on individual properties and reduce incidents that adversely affect dependence on specific properties.

For the year ended December 31, 2017, Essential Properties Realty Trust purchased 212 properties in 62 separate transactions for a total purchase price of US$534.3 million and an average quarterly investment of US$133.6 million. For the three months ended March 31, 2018, the company purchased 28 properties in 16 separate transactions for a total purchase price of US$64.1 million.

Essential Properties Realty Trust (EPRT) investment:

Essential Properties Realty Trust, Inc. (NYSE:EPRT) submitted its IPO prospectus on 5/25/2018 and listed on the NYSE on 6/21/2018. The issue price was US$14.00, 32.5 million shares were issued, and US$455,000,000 was raised.

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