EPRT - Earnings call transcript Q3 2020 | Essential Properties Realty Trust, Inc.

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Operator

Good morning ladies and gentlemen, and welcome to the Essential Properties Realty Trust Third Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. [Operator Instructions] This call is recorded and a replay will be available two hours after the completion of the call for the next two weeks. The dial in details for the replay can be found in today's press release.

an available be webcast essential will www.essentialproperties.com. at there audio on webcast properties Additionally, which available will of archive An be for days. XX Donlan, now it's over of my to Markets Senior Dan Capital turn Head Vice-President Essential And at and the pleasure to Properties. call you. Thank

begin. may You

Dan Donlan

operator We you Thank today and joining call. conference morning third Properties Essential quarter good us everyone. you, appreciate for

COO; our President Here results are year with and and Gregg quarter CEO; full me Patten, today third to and Seibert, our Mavoides, CFO. discuss our Mark our Pete

call, made. federal greater the this disclosed certain company's future expectations to in from that The go Factors to risks During after differ results statements. Pete, that, in that from will we are statements forward-looking filings we considered actual these ahead. actual significantly press And the may make revisions changes and be those statements may please may the time forward-looking forward-looking be in could release detail to to matters and results company's yesterday's cause reflect securities earnings SEC statements considered may release. materially differ With with statements discussed the from under time were law. not

Pete Mavoides

And today Essential thank everyone Thank you, interest joining Properties. us to Dan. is for who you in your

quarter, our experienced During tenants the business. third in as improvement we reopened a for rent collections market their properties

saw markets sheet. in our stabilization balance and capital trend, cost a a constructive was environment that In we addition conducive operating this to capital a towards positive conservative of maintaining

wanted As growth to these our circumstances we see occur to plans. deciding we resume stated prior before external calls, on

us and in fourth $XX the for early looking million to million this began quarter opportunities we another in such, $XXX third quarter. allowed quarter, which invest investment to date the As attractive

tangible transactions the to quarter third a our existing involve pandemic an direct of tenant were base. relationship based we We that at sale use the navigate Looking that XX% approach opportunities and investments, believe XX% were these output accommodative backs relationship. direct and lease were our with

aggressive of for short longer existing raised We We delivered should the higher, have that raised and offering While flexibility in our investors million may pipeline more million continued $XXX to strengthened term. posture, our have proceeds our the taken mid-September. a like company fund our which supporting net of quarter, new equity order appropriately to opportunities. confidence In our that us. been financial including actions net maintain those thank would just our over $XXX relationships in company collections and in term demonstrated of benefit overnight the had we tenant

of XX% of opened percent our in terms portfolio mid-April. stabilization, which In approximately XX% portfolio back compares today, is operating just and to XX% in August, a of early as and ABR

terms us including the recollections, in August, XX% of quarter, XX% XX% in and we of July, to third owed In in rent contractual collected September. cash approximately in XX%

lost attributable For is follows; remaining rent October, on scheduled to X% remaining AMC Tuesdays. cash chapter rejected theaters are our leased have X.X% the in contractual to which that recognize we rent collected The of rental are XX X% mostly In X% currently December. five theaters. attributable XX% of another town Tuesday's to unresolved, deferrals, attributable to mostly is which of end after town proceedings. allocated contractual cash which sports, to rent. temporarily master X.X% non-recognized rent is is or the as deferrals and movie to sports, and is case our is abated is attributable lease bankruptcy Ruby Ruby The XX. tenant All September

had to tenants to seven different three including we leased quarter Turning leased the International. were fitness quarter industries. investments at XX.X% with the that properties XXX that XX centers operating We formerly portfolio, in vacant ended end, the properties were XXXX in Town to Sports

our value see does the our and consistently our before, not Therefore, ability stated keep it stable reside a we and in find key we or vacant to and company replacement them indicator our properties, of leases, solid term. for leased. have the our high an tenants tenants demand to to As in we we the value. More expect properties that come occupancy resides current of specifically, have as agreement seen with near in

quarters and XX.X weighted Our stood X.X% at X.X% next next year over expiring lease of years. our only term over average the at years end expiring ABR the with five

lower, level have times, continue lingering full unit moderating to certain at pace, which migrate the impacts on financials. average the would to industries. X.X weighted albeit coverage second includes coverage pandemic tenant Our was quarter ratio impact of a as our ratio We to expect continues

leverage Turning we EBITDAre, of with annualized of times finished four nearly adjusted million. sheet, balance to debt to excellent quarter an $XXX the liquidity net the

share. our and This set opportunity with Looking pandemic causing pipeline is for attractive impact negative on of an middle our experienced opportunities forward, market operators increase to generating growing tenants, and company. the a market more purchase smaller smaller operators seeing investment many are

While we prospects operators, our we is recognize the alongside means to grow that behind we in by these as us. are pandemic no confident future look beyond us

who I'd balance in we on call the and over for impact you like Mark financials highly to focused and diligent Patton, such, no Mark? sheet the to our take industries the through pandemic. from experienced minimal will our current underwriting With quarter. to turn As that CFO, remain have that, the

Mark Patten

Thanks, Pete.

assembled I for of It's our Greg to I'd a board Pete into maximize opportunity participate a the to the be Pete part the thank Before and of to to privilege and shareholders. opportunity to EPRT. terrific get to value helping like of for remarks, be my the part a and in prepared you have say team

results, pandemic. release night, third given with by last we're pleased our the reported our particularly we significant As presented quarter the challenges in earnings on-going

compared QX or for included XXXX for approximately increased million. the Our of revenue $XX.X operating results third XX.X%, by period to $X.X same the XXXX total quarter XXXX of million, totaling

the of both XXXX improved QX and any revenue percentage as We QX XXXX. $X.X impairment charges also of trend in our from was which was million capital, the a as with from on-going not down the investments recognize but basis was see QX, Net to adjusting of pandemic, XX.X%. is approximately associated to G&A the to selectively you total near eight in We QX can monetize including term. release the saw related from approximately to in $XX.X sequentially recurring recycle income we This quarter. expect our efforts in impact million

with million, up our share was a totaling in $XX $X.XX, Our per in the FFO from FFO over $X.XX XXXX. million, up period increase, reaching share same XX% $X.X per

million, of share a equates a was XXXX. compared per decrease penny an that's $X.XX FFO share, core totaling nearly to of up per increase million, XX%, which $X.X Our to $XX.X

was per million AFFO XX% a increase up that’s per totaling AFFO equaling share Our $X.XX approximately $X.X per penny $XX.X compared our down XXXX. also share share, to million, a that’s with

impacted adjustments Our were the we in revenues made by per share pandemic. the and FFO to connection metrics obviously adversely AFFO for core with

increase importantly, being the basis. remarks move also additional the completed an these we million XXX% tenants cash nonaccrual had a in owed from accounted we basis. status on And accrual collected deferred third $X.X that of meaning we the a no the in into third tenants we were for quarter, the for tenants no accounted in these investments. addition, share capital the in deployment the I on our Picking late had count that net in marginal yielding of overnight numerator shares in reflect impact lease while In of share collection calculations our Pete's on September levels, approximately offering mention effectively million to regarding our in are don't XX.X from wanted per up additional quarter rent those on metrics,

balance sheet, few our Regarding I'll just points. a highlight

of million the $XXX during nearly quarter. the investments of addition we the With completed

Our total billion. at September assets stood nearly at XX $X.X

million. unrestricted totaled Our cash nearly $XXX

a million Our consistent approximately remained basis. debt quarter long totaling gross the term prior with $XXX on

just offering at our net oversubscribed over of average weighted proceeds, overnight our $XXX also that to per proceeds we approximately over program, of net $XX X.X addition million shares ATM share. price from million generated a $XX.XX In generated of million selling

believe by net us at target be Our strategic end provides providing challenging was to given continues within especially a annualized created the investment macroeconomic pandemic. quarter growth. We which mentioned, for well this as debt to runway times EBITDAre, with four ample the environment our continued range, adjusted advantage, Pete

that, approximately liquidity cash available $XXX quarter capacity accordion the feature via an That capacity that facility totaled and call I'll by credit excludes accordion available on our million and of end, including an of of With have our unsecured $XXX our the on growth we one significant of million million unsecured of the million Our COO. the which over Gregg our Seibert, turn return million is loans. additional term borrowing at $XXX to on credit. supported position, seven $XXX line year feature to $XX

Gregg Seibert

pages on of impact our to our have with on want summarized of XX we start on-going I portfolio, Mark. and Thanks the Supplemental. which pandemic XX the

closed, XX% portfolio, in was late ABR and of is limited basis October XX% to X% of open a open, on leased operators. was largely family our which operating casual entertainment properties and As dining concentrated our was and

rent we $XX rent. terms requests in In million deferrals, tenants representing granted rent have of deferral to approximately

had for only third $X.X which future revenues. of remaining we quarter, we million periods, the of future rent and As million $X.X approximately in of expect deferred recognize to

to behind collect are term have begun these we concessions. and deferrals of us, repayment majority vast of the So short

to investments. Moving on

coming at service with were from our average largest transactions, average different at quarter, sale an $XXX X.X%. made with was lease rate financial quick through over strategy service of followed XX cash third master reporting remain carwashes weighted invested our average form escalation was to XX.X%, properties we cap backs, the was four Consistent industries; third industry XX of annual X.X and seven XX% the ABR, investments which third at with auto lease rent our a These The XX.X%, XX% medical XX.X% level contained quarter XX%, at into During term are investment originated million. carwashes industries, property at and the XX% at on-going activity million and at quarter average requirements, our per and of restaurants Grocery subject unit weighted of Childhood X.X%. convenience within by at provisions. coverage XX%. weighted dental direct lease XX% and investments quick weighted stores our XX.X industry X.X investment our years, our Education of From at XX.X% restaurants times lease XX%, at Early were X.X%, service perspective, was average investments

industries furnishings, we concentrations aggregate, of XXXX, pet perspective, movie one we business quarter forward representing and no a which ABR continue concentration our XX.X% dining, materials more end, for our in tier XX.X% care tenant continuing health Publicly our and increasing at now In XX of in as five quarter central top to rental fitness Reit. and and segments these of decline. services, grocery. casual represent and going home properties in Conversely, compares ABR service, equipment with see family second our view And represented which concentration ABR. these of auto the theaters expect properties. of X% building We sales, as tenant XX.X% our From to was quarter than industries Traded to a first our the

for XX the properties terms When net quarter, costs, In including dispositions and $XX.X this cap achieve we vacant on vacant weighted million in properties, properties cash transaction in of average we dispositions the quarter. three sold excluding rate X% our proceeds.

As manage risk will the remarks. we unit that, it to With for industries, allows aspect owning highly level important proactively past, portfolio. liquid mentioned back concluding investment turn is that to his discipline, properties the our and Pete I as of in are it an tenants within have us

Pete Mavoides

Thanks, Gregg.

forward and our investment environment tenants pipeline are pandemic our and lot drive markets accretive operating We that open continue please granular the issues We opportunities continuing look with properties. move of the that to may order -- for growth. With as excited of forward lease balance properties to robust year to of through have accretively our on pandemic us net the portfolio questions. call the and earnings with we the in put managing build to related capital from and behind of capitalizing operator, a

Operator

from [Operator you. the of Instructions] comes line Haendel St. question Our Thank first

Please question. with proceed Mizuho. with Juste your

Haendel St. Juste

Hey, -- would you morning please? So, there.

your of guess travel So gyms portfolio. quarter on attenders I question to entertainment. About is tied a revenue the a movies,

center. where that get In childhood to movies, think So like remarks prepared and reducing you'd time. perhaps, not your gyms I you on mentioned curious over but

maybe Thank these, of well So potential could more? portfolio discuss post-vaccine post-COVID, bit as as you a you. some shifts,

Pete Mavoides

to five we XX, think, we've material. as you And much of that quite been that. saw frankly was And remarks. for through concentrated in has And XX family and some that from coming in lighting Gregg rate, that movie estate and that you thanks have I retail at casual And real the largely focusing stats durable dramatically, gave those investments a a has well characteristics We've down as our as dining. and, been Since prepared very had our industries Notably, trend, taking deliberately theater. And as slower industries been we disposition. or is And invested really, liked. in we in pre-pandemic. our haven't as since been growing both we saw exposure public, well, coming growth up generic down kind which furniture. gyms Sure.

And had child and impacted and Obviously, slow operators good place but in operating good so in shift industry pretty have a space recovering performing, we care. one by that as has that, care, nicely, our our mix. you it that fundamentals. well. in pointed has was to performing significantly we've pandemic, child portfolio the deliberate, very and has outlier industry in think a to our We is The like that been

expect childcare. And invest so to you continue in us should to see

not other material a way continue. in should those you to industries, of see been have that investing and expect any in We

Haendel St. Juste

you. Thank in discuss cap the Thank helpful. quarter the rate. And you. of maybe bit That's investments more you a can

the cap and higher some discuss rates, in low of some investment X%. We've seen north even yield peers Here heard sevens. I've

about you asset continue that rate low term So you're millionish this of could seven, actually to trends near discuss interest quarter good is you XX to expect Is a the some you. in Thanks. the the in term. rate pricing the maybe run seeing and and acquired hundred seven, we near think that

Pete Mavoides

Sure.

is rate, discussion that our around in generally which, quarter. pointing consistent trailing to terms and our, volume our has been average, cap with so, pretty of this quarterly And

that's transact. think I we're So, of to a good where up indicator set

is is expect people industries transact pandemic, I that relatively of furniture. and impact In and terms to And of adversely range. QSRs, deminimis staying had are cap gyms think theaters one and there some industries this low such see to of clearly mid the telling you to and the we been seven end that low really And range, kind deliberately cap rates, as, of the carwashes. we Service at quarter focusing Auto and generally have sevens from from in away what us higher were towards movie that the notably, impacted,

I of industry to going forward relatively during in so that the should from And tenants that driving consistent the down the we low did XXs past and a rate practice. a little continue quarter. bit transact see select, the mid think you with selection to mix cap a range But is us at our the that's perspective, pace

Haendel St. Juste

Got it? Thank you.

Operator

you. Thank

line Please your Nathan Our next question from comes the Crossett with of question. Berenberg. proceed with

Nate Crossett

Hey, guys. good morning,

get lockdown, trying a Just your wanted pipeline. of activity it the was affect people that went thoughts from elevated if election? before deal on your into things whether potential any may there also we how to done to get back kind And

Pete Mavoides

of deals, what Sure, we of really, I a months’ from come and of has backlog on deal six they've, lot they worth growth operators put, there's M&A, And would of restarted activity pandemic. development other saw of relationships grappling our as backlog the and of a kind say elevated those I as a hold, we side, with created back the think out expansion while opportunity. and plans, on that focus and

seen that We have quarter, late of to there may here have fourth in but sales. be the election not lot not seen late, in related the we And some date. a

to pipeline. XX-year of, of in terms the potential be and and terms industries that say, shutdowns to we're durable, think a and impact would investments making we In I lasting.

may shouldn't and work some as massive we'll In But to our weigh really through pandemic. shutdown, think I have on shutdowns navigate the very on impact temporary be to temporary that. on have our continue a localized portfolio. we pipeline. impact view, monitor aren't and obviously heavily tenants would that so, It And with and going this our

Nate Crossett

you. potential thank worst are properties going to there AMCs. and theater ask one I have the any cases? specifically, Okay, guess, a then only case for I your And I five use scenario on in asset, for But them? other was

Pete Mavoides

another that very contractual with $XX, XX,XXX a And I XX,XXX operator. our and about one [Indiscernible] square we we to course believe know action per re-let They're into rent that day, they're, of operators a to have boxes real they're the you to the extent six to and theater that foot go they're square are just generic random would a first square square role extent and of the with them And, to think $XX we reposition end buy I foot. survive will be they think Yes, foot the have theaters average, the of AMC. theaters estate. theaters, boxes, them to but extent the a firmly continue were reasonable On foot. with uses. At that other had exist, and out

Nate Crossett

thank Okay, you.

Operator

you. Thank

Linus question Our Sheila proceed McGrath with from question. Please your comes with next Evercore.

Sheila McGrath

Good COVID morning, evidence comment your via ahead that into Peter. bode you I tenant more may target be that given might raising from pressure capital if was leaseback sale to the seek as could base wondering for well out prone XXXX. if look opportunities, more you there's acquisition any

Pete Mavoides

haven't that Sheila. Generally seen our tenant middle We market base.

universe be and, mind-set. One capital the our think of I as is tenant become borrowings in the financing really bit bank cost I weighted really they're that can favorable the that capital, people of the hasn't benefits expensive, average to own say shifted that limited get that, more the base can probably as of kind and of access, against see that the more there capital. the as And weighted cheap pandemic. a of of people would it. our some our you sources result of capital people are of leaseback know, there, low alternative is view they average a margin, reasons cost of traditional will But to the of rates and pandemic the their that that sale that transactions in is,

So, haven't long some that's pipeline. I seen way we of saying it, of a robust to we opportunities But plenty have, see of it at guess regardless, that's, would margin. the expect a and we

Sheila McGrath

One more. a lease, on you just already the what I'm Okay, great. they say I said rejected missed but tenant? did have you you sports, town

Pete Mavoides

have we in is kind I've we've what shortly. short coming that and the we time, and would hopefully have of But in said past. No those the the there's discussions not. gyms, order, robust expect we and we find worries. demand did and to be here bankruptcy I And good productive saw in demand, for and what that long tenants, number re-let on. have a which them market with Listen, engaged those properties will of going on be those sites call to a we said

Sheila McGrath

you And you expect units to have one your is expectation? what Tuesday's. one on have many do Ruby there? Or those vacant? back last great. buildings their on And quick get visibility How do forward? you Do path any Okay,

Pete Mavoides

I with those to outcome we be sports, extent like to would another we're would reuse that process, the confident of good seven would, in a that's us rent to pay say, there'll favorable come Ruby listen, in sites. have I that, through say Tuesdays tenant. Yes, generically, What leased town potential. a with and this an And, sites that, them just our confident levels in similar have, user we're don't assets, we -- they I And lease. master that negotiation and on-going would that, the basis much

Sheila McGrath

you. thank Okay,

Pete Mavoides

you, Thank Sheila.

Operator

you. Thank

line from with McConnell with your comes Katy question next Group. Please Citi of Our question. proceed

Katy McConnell

and good morning. thanks Hey,

seeing And so elaborate made occupancy can it vacant the really expect any what that you've today? demand you've you you to on set you're do space far, to the trend? seen on on based that based already today, So fallout progress,

Pete Mavoides

we're quarter. to and seen vacancy I on would the haven't vacant we Yes, of leased the end, quarter us of argue a came fallout. were listen, last we over At seven properties, three had XX%, that which day

these good and have high a prepared for evidenced that by And so we keep occupancy. occupied, to our demand properties, and properties tried this I as in say ability very think, and our very we robust there's to leased our remarks,

a have to when do And has is underwriting of our they have in the of have, that I part an important our think assets high sites ability ready properties. it's job return reuses occupancy maintaining fungible to team excellent very vacant. become our and So done

Katy McConnell

unresolved can strategic fallout rents Okay, versus see you categories, floor thanks. the of how XX color could And And at where XX% have your this where potentially plan the some much more on for of XQ provide uncollected point [Indiscernible]? those covering. the you you for we then left exposure deferred the expect have

Pete Mavoides

return so rebound Sure, bowling trampoline open, entertainment, operating industries, casual profitability, everyone gyms. our and dining, recovery draw casual theaters. nicely They're doing them dining fitness, alleys. that. and parks the And are the is and the profitability. really their And at would slowest the and largely say which slower the where entertainment seen in health can returning of I our to to in and We've the I has, X.X% recovery restaurants is ABR sector the on very our well think, movie conclusion both own

is not it's it content. that the Our the is, bring of sites there open release operating. should horizon, which recovery and related the is back, more release to, like on necessarily pandemic And those view seems related,

And of The theatres, that million, recognized AMC. and commentary which is call vast so, of gets, X million some $X the about largely is to majority our attributable balance We one to revenue. deferred. have going left that that on only little of be into point, something the is we very to had be one

Operator

question Our line Bank. next with Instructions] with from comes [Operator you. proceed McGinniss Greg Please the of question. Thank Scotia your

Greg McGinniss

mean we just collections XX% those tick to for up closer sure be Greg, in November, have I starting last the heard months. XX% few correctly that could given to make collections like repaid. number It sounds see to consistent deferrals morning. Does held are repayments? good Hey,

Gregg Seibert

not ABR. periods not repayments aren't that prior The collected. really was really, repayments the rent is going Well, that's recognized,

probably XX cash happen recognized X%. that is is I of of XX the those So think really will deferrals deferrals just paid the and the burn really year. the which off from most going And the be that's number. of of to wreck flow the end go The through up to taking

that going place. to to So think us pay our XX, said, good, money recognizing That because we contracted. return deferrals tenants as those it's are their those in to going be revenue, are we're slower and

the our reckon X% deferrals. big there's view, So those not in in between, recognized XX and differential a XX the

Greg McGinniss

okay. Right,

So reflecting vice it's were agreements place just QX we're that. different deferral why basically be but that may in QX, and versa. That's not for seeing

Gregg Seibert

same the year. just that there's end Yes, agreements the place, the deferral span of through in they were

Greg McGinniss

Okay. of to imagine that Pete then given And the on return your that quarter the full opportunities this kind uncertainty. the obviously acquisitions. backlog pandemic acquisitions comments they front, of to speed pandemic pre I of have But to and against up kind weren't balancing level backlog, on

Just feeling we obviously be kind about But not XQ it? XXXX. about thinking and on of should that guidance level of acquisitions into you're how curious how

Pete Mavoides

stabilization to you the pretty, Yes, of pretty about got kind of think to see right. the look collections trailing August We scale of I quarter pipeline. result sustained wanting started or quarter the you're cost a It's rate. is I pipeline. the kind it's But, quarter and if listen indicative feel at working good We of think of run in right late, a on our XXX as ability a through in the capital. the in largely,

filed end, we XX last our in look that queue we've about million. subsequent to closed quarter you night, If

the the quarter, me, year, of and so almost back back looking we the excuse half And kind feel good there. of at

Greg McGinniss

much. Thank thank you you. right, All very

Operator

Thank you.

Bank from America. comes your Perkinokis with of line question [ph] of Please Alexander proceed question. the next Our with

Unidentified Analyst

for included I'm on if thanks taking missed quarterly a this, much is but guys, in sorry that? Hey, I is and cash revenue town questions. basis sports how

Dan Donlan

is sports Donlan. basis. on town non-accrual Dan so a Yes, is This is,

on page So you the should look disclosure at XX.

that unresolved non-accrual last the non-recognized give bucket, on X% is in so debated should You their all all everybody status. it assume take or on

So on accounting. cash they're all

Unidentified Analyst

outlook over how's course Great, the watchlist changed your And then the tenant pandemic? bankruptcies the over you. of your XX months. of Okay. thank kind next for give And

Pete Mavoides

was most all Yes, onset to our tenants I industries impacted. we tenant of the around the really felt list sectors focused watch on at disclosure give I we and pandemic, would XX. And the and of that the of on page think good our comprised be that say,

down I rent or sit would get here not main is today, not our As they that road. either us that say are on this guys we on the that deferral accrual sure the X%, we cash we're paying that's going owe focus were us, to

is recover. think would so really the focus been slowest a with have imagine hopefully what work and operators, the you is those us. pandemic put I impacted that, And as think to our continue see them put But path or really monitor is. where and And are we'll and I is we most them that most that to as we the in of this sectors behind

Unidentified Analyst

Great, thank you. Thank you.

Operator

you. Thank

comes line question from Our next with John proceed of the Massocca Ladenburg Thalmann. Please with your question.

John Massocca

morning. Good

Pete Mavoides

Hey, John. good morning,

John Massocca

same industrial missed drove big in store rents? the what this decline I earlier, sorry, if but I'm

Dan Donlan

was John, That a is that's Dan. fault. this hey my typo, Yes,

around industrial You the the should retail on was the and updated just switch website.

So retail that actually is that's the amount down related really to...

John Massocca

to seeing Are bid? think capital dining sense. kind recycling be kind as you acceleration as strong about there there assuming your dining Okay, appears And bait then properties. that in out end? that are well QSR? same you for restaurant dispositions, that I And and makes seeing kind casual drive of on an Could as assets extended of of strong family

Pete Mavoides

QSR. bid there's for are Yes, listen, stronger the a QSRs clearly

our We disposition risking XXs has exposure the sectors. about dining kind good and pretty as and in focused a portfolio, casual largely the and been on Our our there. activity family focused result been has QSR feel of de

you don't to the to recycle so sell feel And need capital.

I capital. think, we have great capital good position access to and

sectors. casual just risk of the kind and sales assets, of really, and that'll be of in the moving out so And our family portfolio, dining

John Massocca

the Okay, of kind that could a thesis of of would launch a via by but as out the be that partially potentially out something in comes over be portfolio, dispositions? portfolio how you or those portfolio time dispositions, I maybe mean,

Pete Mavoides

a you asset think an industries the is through are important since portfolio we're our size where day those of very we disposition that's as a I kind kind basis. activity gave we've where from that John, Yes, there discussed, been XX construction and bite selling. assets and liquidity the I exists commentary strategic five seen disclose you've lot And of bid and individual asset of granular XX. to are, thesis think that level Gregg disposition. a, one. owning of regular having the down good asset industries bringing a is on part in And

sell, most of we our appropriate, and we vast think so the part, have us industry where And, that for bids. And allows think the assets to majority strong manage exposures

John Massocca

mean the generally what tough dining to spread kind generic, so its kind guess still bid of I out of Now an just of out and the versus between it’s QSR? casual family know of is and kind there. it’s but spread there I asset, I know of kind

Pete Mavoides

I no think X.X be to dining deals be X casual to X.X to they X bid, could new could QSR right.

And not there’s but of range, focused of for the casual diners lot demand dining. so a a and the that’s pretty casual a lot were think I wide bankruptcies in

doing flip side, the are guys QSR the On great.

John Massocca

me. Okay, it from that’s

Pete Mavoides

QSR [Indiscernible] replacing and Perkins can in They Tuesday. quarter. XX as liked a by this out dropped operator quarter top replaced operator. We them again a see them really So franchisee, names last you like great our Carrols Ruby that a was QSR and

that’s time So a long for now. underway been

John Massocca

helpful. very Thanks from That’s That’s color. for me. the it

Pete Mavoides

John. Thanks

Operator

comments. for Thank this you. at the turn questions further There floor are back over like closing to I’d to no management time.

Pete Mavoides

and this a your you. Great. the Have with we Well forward look in Conference. Thank for been today. you coming Nareit great helpful, to time all thank has all Hopefully day. engaging you

Operator

teleconference. This concludes today’s

lines this your disconnect Thank have may participation day. and a you at wonderful your for time. You

Essential Properties Realty Trust (EPRT) 5 Nov 202020 Q3 Earnings call transcript