EPRT Releases 2024 Corporate Responsibility Report

By Greg Peters • Thursday, September 18 06:02 • Permanent Link

Essential Properties Realty Trust, Inc. (EPRT) has just released its 2024 Corporate Responsibility Report, showcasing its environmental, social, and governance (ESG) initiatives and progress. Let's delve into some specific facts and figures to understand the changes and highlights from the previous period.

Business Overview: EPRT is a triple-net lease Real Estate Investment Trust (REIT) focused on single-tenant properties leased to middle-market companies, primarily in service-oriented and experience-based businesses. As of December 31, 2024, EPRT had approximately $365 million in annualized base rent (ABR), with 93.2% attributable to service-oriented and experience-based businesses.
Investment Growth: In 2024, EPRT completed $1.2 billion of gross investments in 297 properties across 145 transactions, marking the highest level of annual gross investments in the company's history. This significant increase in investment reflects EPRT's commitment to expanding its portfolio and maximizing shareholder value.
Portfolio Characteristics: As of December 31, 2024, EPRT's portfolio consisted of 2,104 properties, demonstrating key investment characteristics such as diversified tenant industry exposure, long lease terms, utilization of master leases, and contractual base rent escalation.
Tenant Industry Diversification: EPRT's portfolio is focused on service-oriented and experience-based businesses, with tenants operating in 16 industries across 49 states. The intent is to limit ABR concentration from any single tenant or property, reducing risk exposure.
Geographic Exposure: Approximately 77% of EPRT's total cash ABR comes from the top 20 states, with around 51% of total cash ABR derived from sunbelt states, reflecting the geographic diversification of its tenant base.
Stockholder Engagement: EPRT engaged in extensive outreach, holding 301 1-on-1 meetings with stockholders and participating in 8 industry conferences. Notably, the company met with 31 of its top 50 stockholders, representing 54% of its shares outstanding, demonstrating a proactive approach to engaging with its investors.
ESG Strategy and Progress: EPRT's 2024 report emphasizes its commitment to ESG goals as a critical component of achieving meaningful growth and attractive risk-adjusted returns for its shareholders. The report details initiatives aimed at environmental stewardship, reducing operational footprint, employee development, and community impact.

These specific metrics and insights from the 2024 Corporate Responsibility Report demonstrate EPRT's focus on growth, diversification, and ESG initiatives, reflecting the company's commitment to responsible and sustainable business practices. Today the company's shares have moved 2.21% to a price of $30.06. Check out the company's full 8-K submission here.

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