Essential Properties Realty Trust Reports 27.8% Revenue Growth, Net Income Increase in Q3 2024

Essential Properties Realty Trust, Inc. reported significant growth in its financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company’s total revenues increased to $117.1 million for Q3 2024, up from $91.7 million in Q3 2023, marking a 27.8% rise. Rental revenue also saw a substantial increase, reaching $110.5 million in Q3 2024, compared to $87.0 million in the prior year, driven by a 15% growth in the real estate investment portfolio, which expanded by 249 properties.

For the nine months ended September 30, 2024, total revenues rose to $329.9 million, up from $261.9 million in the same period of 2023. Net income for Q3 2024 was $49.3 million, a slight increase from $46.1 million in Q3 2023, while net income for the nine months increased to $148.1 million from $142.1 million year-over-year.

The company’s total real estate investments at cost reached $5.4 billion as of September 30, 2024, up from $4.7 billion at the end of 2023. Total assets also increased to $5.5 billion, while total liabilities rose to $2.3 billion, resulting in total stockholders' equity of $3.2 billion, up from $2.9 billion at the end of 2023.

General and administrative expenses increased by $3.3 million for the nine months ended September 30, 2024, primarily due to higher salary expenses and professional fees. Property expenses rose slightly, attributed to increased operational costs. Notably, impairment charges on real estate investments surged to $12.3 million for the nine months, compared to $1.6 million in the previous year, reflecting a more cautious approach to asset valuation.

The company continued to expand its financing capabilities, with total principal outstanding for unsecured term loans increasing to $2.2 billion as of September 30, 2024, from $1.7 billion at the end of 2023. The weighted average interest rate for these loans rose to 4.2% from 3.6%. The company also reported net cash provided by operating activities of $221.4 million for the nine months, compared to $182.0 million in the prior year.

In terms of strategic developments, Essential Properties Realty Trust has been actively managing its portfolio, with a focus on acquiring properties leased to middle-market service-oriented businesses. As of September 30, 2024, the company held 2,053 properties with a 99.9% occupancy rate, and no single tenant contributed more than 4.3% of the annualized base rent, maintaining a diversified tenant base across various industries.