EPRT - Earnings call transcript Q2 2021 | Essential Properties Realty Trust, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to Essential Properties Realty Trust's Second Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] This conference is being recorded and a replay of the call 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 an available be archive XX be website Essential available will days. www.essentialproperties.com, at of there audio on webcast Properties for Additionally, which will Dan turn now Capital of Essential call pleasure is at Vice to It over and my Markets to Donlan, Properties. Head Senior President the you. Thank

You may begin.

Dan Donlan

Thank appreciate Call. joining good us Quarter today We and you, Second Conference everyone. for XXXX operator, morning you Essential Properties'

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

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

Pete Mavoides

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

our for has second XX% portfolio. XXX%, fronts. With July returned The in and us collections to levels. the strong was portfolio quarter Starting another at quarter collections at all pre-pandemic on with the second quarter

we to properties previously repositioned pandemic potentially strong emerged at we COVID focus our in recoveries a survive not vacant effectively With one our on activity pandemic. of the have fungible how properties single-tenant XXth, we our properties With quality could of realities estate, XX% XX adapted tenants impact all leased of trailing did but property basis. not current disciplined that at as and operators. end real just as continue an and monitor to months our which today, vacant the the While of on to have largely ended is June indicator quarter re-leasing only portfolio, appropriate stronger two of mind, over all experienced that the owning the tenants

of the levels the our relationships quarter, our historical industry of relative work growth strengthen our drove as deploy our business high pandemic terms to which investments to cultivate to bulk during XX% and this and relationship In investments, capital we continue being pace. at of we

and During of the with cash into $XXX invested quarter we provisions. X.X% containing XX% average sale-leasebacks originated lease properties million rate investments at XX% weighted of XX master being direct a through cap

the markets. On capital

of from the quarter the marking achieved and offering third our two million With inaugural investment-grade of milestones the the S&P and issue anniversary with XXX% becoming full base asset second several unencumbered public of completion of ratings payoff our and $XXX the our notes. including XX-year retirement unsecured Moody's, ABS IPO, bond we receipt our

with net that we intends match obligations our and REIT schedule. public market, the lease thrilled a to are access portfolio bond can unsecured to As of maintain our fund long-dated lease we a as better leases, now have maturity to debt build

a end, investment to quarter capitalize issuance ample issuance. ATM adjusted pipeline. net X.X EBITDAre Additionally, active debt million annualized of have with equity we of we on continue to $XXX $XX gross capacity offering the remained and robust April on With follow-on in to front times, million our

X,XXX ended XX.X% investments in the operating quarter that more to tenants, in to properties leased with XX the specifically. Turning We portfolio industries. were XXX

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

times. quarter's was coverage Our of weighted which average improved ratio last unit level times, X.X X.X coverage versus

that statistics implied by the shutdowns coverage occurred negatively remain credit ratings mentioned, unit have which credit previously pandemic level our we related focus on As last skewed and year. traditional

trailing the reporting solid months in depths tenants lag, of most with XX reporting next period. the the no to we improvement statistics to with experience when one of us pandemic XXXX expect quarter financials in the our quarter second these a However, of longer are quarter

half Looking this and the portfolio of occupied accretive highly We share previously. up $X.XX our opportunities. are the AFFO and capital our to quarter This to second year. guidance with $X.XX XXXX outlook When attractive to to current anticipate our of pipeline and XXXX to our growing the range remain per performance to strong investment raising $X.XX and we balance to for for our generate $X.XX. focused positive position, coupling back compares

dividend and strong portfolio activity believe of the will well-covered growth over in X.X% that call investors I'd return Seibert, turn the risk With take opportunity. AFFO with Gregg who Gregg? manage commitment investment continue our our to greater total our prudently like our a through offers We COO, and portfolio our to and combined to to sheet balance you detail. compelling

Gregg Seibert

Pete. Thanks

level subject with originated escalation million. XX% requirements our master times, second separate XX are and from The average the of this investment a rent different our property per medical quarter lease dental, Consistent XX.X X.X%. investments with During we weighted average contain weighted The casual our made restaurants, which $XXX of quarter, X.X investments of into the term ongoing direct childhood years. our The quick-service to weighted rate cap with transactions XX reporting lease through investment were was our in weighted million XX early second coming XX% cash financial strategy, X.X%. and activity industries properties These XX% at was provisions. with unit form dining. through sale-leasebacks, over annual lease coverage was average quarter $X.X investments invested being of education, average average were

new we as appreciation increased existing industries are a is ahead, growing for market tenancy. middle competition there seeing focused participants Looking and durability our the of market from at

followed childhood XX.X%. XX.X%, cap From medical carwashes our and rate closely protect at quick-service relationships. industry by ABR, dental nearly as compression XX.X%, our a at at XX% of As early we largest perspective, seek restaurants are and we result, service experiencing an at to are industry education

for to highest the for segments business our view the Tier continue foreseeable they note activity to Essential future. for at an publicly perspective, represented Properties versus and as Of tenant Increasing basis a Properties industries quarter of these XX.X% last therefore, a industries no and concentration than our investment of a X is months points four while XX the tenant more and remain last in over down ABR, to differentiator tenant much are account we which end X.X% rebounds in likely for more We XX important locations and market XX From resistant and it been concentration tenants is offers which was operators focus proven rated set and quarter. of of significantly our top profits. our entertainment both direct which started ABR opportunity benefit pandemic companies strategy of experience have more investment-grade risk invest diversity profitable is industries, selectively and Essential traded on credits. casual expansive strong mitigation concentrated that has focused on to in middle dining tool continue industries, a revenues our just

dispositions, which quarter average ratio vacant When coverage of unit we excluding nine proceeds. cash achieved transaction $XX.X had X.X% in we X.X and of million these yield net weighted for terms In dispositions properties on times. properties weighted a costs, a this average sold

investment the the balance industries, for the level to of over tenants, I'd the proactively as Patten, financials discipline we turn mentioned to take within to allows the properties call is portfolio. risk sheet through manage in fourth As that it who quarter. and CFO liquid Mark? an unit and owning will past, us important like our Mark With [ph] aspect our you

Mark Patten

investments second strong QX $XX.X $XXX $XXX average in XXXX, weighted quarter revenue Thanks since good benefits versus X.X%. totaled external are million which have our QX of QX or up And million growth the cash The our morning same restarted of for broadly, elements activity Gregg totaling operating cap reflects at quarter total follows; and results more of XX.X% certainly everyone. total the a full reported second quarter. of XXXX did for a in investment our $XX.X in XXXX. of the million was a we period XXXX, rate XXXX, our of notable We as which million

tenant's to approximately back share related G&A our for largely owed tenants to under in the not as $X.X which an expense, this to $X.X arrangements lease total, of $X.X outsourced FFO and operations versus supported was adjustment, properties In was to including of million AFFO. in condition that periods per and assessment was efficiencies rent increase just well components $X well basis. including to added deferral was AMC, an and rent and approximately due each rent. one-time I'll of XXXX a the offset in period straight-line our was on as The another quarter tenant's total industries. but million $X.X five recognized million base dynamics that future recognition as determination services as which increased related and in of current certain payments related share their the services. number in cash million million largely probability same QX in to operating was incurred pursuant $X.XX professional That's note nearly adjustment of based our regarding this increase, Total to end per XXXX. for their by by $X.XX performance accrual amounts our further the revenues of addition financial adjustment an any leased X.X% reflected of resulted move revenue the our to revenue assessment compensation from evaluation non-cash in to G&A prior as stock of In of both

in was to basis that's Net for G&A versus XXXX. XX% total percentage cash from was continues as More million income as for our QX of XXX% quarter, XXXX. XXXX $XX.X XX% QX importantly, revenue a scale up our QX the G&A

quarter XXXX. same a $XX.X the Our over per or period fully FFO the in XX% diluted million totaled for increase $X.XX share,

Our million diluted increase of AFFO XXXX. XX% share, per was an up QX versus fully that's or $X.XX $XX.X

nearly were As in Pete in July levels hit collection mentioned, XXX% XXXX QX XXX% XXXX. our and

should substantially second the and agreed rent, deferred that regard deferred total quarter in was So our recognized million our upon be of stands to and amount collections pandemic our total all recognized the collected of of deferred us. the in fleet impact of the $X.X behind roughly With the largely XX% owed gray at results. we rent

have reaching of which to following; really great to at investments with producing to to assets contributed our I'd in gross by start of another properties, are quarter balance $XXX.X totaling income quarter million Turning the investments billion our XX the our sheet, $X.X team, like elements, you highlight end.

As to the milestone significant a we Moody's for very public for first a access unsecured and to ratings pleased investment-grade company. is time, having our be are debt certainly the from noted, obtained markets This position in Pete S&P.

of XXX% secured activity of our rate Our notes pay off X.XX% forward the a taking ABS in on we allowed outstanding approximately quarter April, rate was noted, our bonds to X.XX% ATM proceeds when approximately in bond net coupon public when Pete debt $XX XXX% of into account upsized $XXX generated $XXX the effective unsecured public program, X.X% which also repeating, million of result is us quarter. pay that perspective an early down issuance million the million an to carried unsecured with our Worth into unsecured pleased these which latter $XXX equity proceeds decided we on primary bonds. the generated did and notes asset entered of a of position were revolver. certainly lock that issuance We to unencumbered. off a our the at From million is unsecured and the issue pay the million and ABS part notes, our have agreement we the the overnight base settlement net for offering the of the outstanding $XXX which coupon

to was noted, As X.X Pete end. at quarter net also adjusted our annualized debt times EBITDAre

million. at stood $XXX liquidity total our addition, In strong a

a our and support sheet positioned our balance remains investment well future to result, growth goals. pipeline As

pipeline reiterate Lastly, note the important that I'll the third current for Pete's quarter.

turn per a our from XXXX provided to is Our range share the back us outperformance increase guidance which AFFO over this to raise outlook call the $X.XX to basis Pete. for the a and back for quarter $X.XX, with of prior decision to half guidance. With in strong our increased I'll portfolio our at the performance of X% that XXXX midpoint

Pete Mavoides

drive to allowed We're with in pre-pandemic return on capitalizing environment Mark. growth. and that markets to accretive capital attractive operating to pipeline have of investment move robust and our us excited Thanks, forward earnings opportunities order levels the

open future. differentiated strategy the let's believe call incredibly to importantly, With we More created an portfolio has attractive operator, please that that net into risk-adjusted we the our resilient disciplined investment grow should lease for returns and as generate continue questions.

Operator

Thank you.

session question Berenberg. now of be Crossett from proceed conducting Nate Instructions] line your first the will [Operator question. a with Please with We question-and-answer Our comes

Nate Crossett

the question. Thanks good morning. for Hey, taking

Just deal wondering the was on could a characterize the if bit. pipeline, I flow you

be of competition. we heightened the now? of How what's And outlook you this be size viewing Are where see should mentioned right baking the should the kind execute half we X%, still over flow You for do on? kind into you of that trending? the at the the year? can kind in of it amount we deal that or What's going terms pricing, of of, in pipeline back of looking

Pete Mavoides

and But, our obviously, question than Thanks. feel have seeing -- a a we're to visibility Yes. XX-day for tend say, we into as what XX-day pipeline, and third had our I good quarter. quarter your often more transactions really we Thanks, the about that strong Listen we we morning. have forward cycle. on as good Nate transaction never

tend in pipeline of remains do. investment as think, we're average and point couple remains quarters, of We clearly, not our look the to said, opportunities as to you guidance people position. good we've we've likely it's consistent to that been to our what give an robust. and back, So And That the transact been over if historical regard. that really indicator elevated I last seen pretty

rate, of the where the X tend that a size a is of low of industries selection any transact credits and factors. the really kind cap given in and of out the deals quarter, to lot of of we high terms output X.XX and blends of In an maybe and of to

We Xs. that. people a with deviation low wouldn't the guiding in have I from expectation material been the expect

Nate Crossett

that acquisitions? Okay. able That's in and Or escalation contracts? get competition heightened see helpful. do over that how lease these harder the to out playing What it about just the of higher to Is you you're sale-leasebacks making those underwrite in kind time? escalation

Pete Mavoides

get are as vary, competition, the of the pretty extent of kind rate that in call mass hard market. one cap part I that so the really still to escalations of be having initial and investments out of expect into economics just The flows Yes. we're years. well it, in in the of the that's the the given impacting deals overall which economics, - to that in as bumps of bumps We that, nature that's it's given X.X, we majority and we we the get deals X.X, selection again, But think bonds center the the we the of to to deals But and any work going best can. quarter. do will the

Nate Crossett

guys. Thanks, Okay.

Pete Mavoides

the Appreciate Nate. Thanks, questions.

Operator

you. Thank

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

Parker Decraene

Hey, on Katy. for is guys. Decraene Parker actually This

from Just of couple a ones me. quick

at the included some I sort in of think, vacancies of resolution or this you First can wondering, leased that on off eight seven auto I assets you guys back and you just came off, maybe, assets give nine just was all or those that seven quarter. I color of Were nine you that? service came quarter it discussed through termination. last to this think, point, that

Pete Mavoides

the have give on Yes. activity The stats in of re-tenanting auto we plenty not an related of one resolutions Listen, is re-leasing operator. to vacancy service our XX%. at our we color

what can pretty you of clarity happened of seven nine that, those to re-leased. that's And infer darn that, we I all and them we've XX So got were think, that of good re-leased related sites given and there.

Parker Decraene

guess, balance of basis the sort accounting, then, Okay. of, those of, basis, be for to just the total have a other secondly, tenants that from, sort there's still And accrued under guys and might some want aggregate? I in accounting I any what cash you revenue rent if understand cash

Pete Mavoides

you that? Mark, answer don't why

Mark Patten

of recognized, just maybe than a of represents bit little more handful It's has It tenants. not the I that AFFO sometime recognized, Yes. that reversed in deferred be a appreciate the $X.XX to future. question. potential

Parker Decraene

all for That’s Thanks. Okay. me.

Pete Mavoides

Thank you.

Operator

you. Thank

Our line the McGinniss proceed next from with question. of Scotiabank. your question Please comes with Greg

Greg McGinniss

Hey, good morning.

year. quarter the a for bit? participation How compress now you're the does rates Gregg, And of also about cap Does maybe $XXX just million like should increased acquisitions or then, we feel volumes, averaging, that? a a should to impact that sustainable last think market So, looks we level? like,

Pete Mavoides

of That The it competition, the is it terms I the seen increase in and leaning growing, elevated. necessarily create cap that we're drift the Listen, that stop eight-quarter trailing current to M&A that would going along drift. -- you've stopped We down certainly by point we're setting kind we're we of remain couple I've but have $XXX we're to what I given really our just, Yes. expectation. cost cap indicator are market. our last really setting our -- investing such at is itself million has and doesn't said in spreads stopped expectation the go-forward a into environment manifest the But relationships short created of improved rate. and year. to the indicator environment, an the that said, trailing with how to for as I that acquisitions, always does economic capital deal as us of And over average, to expect. think the But create years, indicator that attractive. rates pretty that deal fortunately flows flow say, in of of I transact And fighting overall it of hard short

Greg McGinniss

acquisitions, the versus Okay. relationships Thanks. was prior tenants? the much last year for closed by driven And or last of how then on new what were quarter

Pete Mavoides

XXs. we with as of basis. we've and looking past our And X that to generally, deals Listen, and that we at sub, high just the tends done provide be then the relationships define mid quarterly in guys that on page a to in prior

Greg McGinniss

I just this thank I time But you. you provide guys I guess, missed it. it recall, around. Yeah, Okay. to used

Pete Mavoides

in presentation. that's our investor think I

Greg McGinniss

I sorry. Yeah, am

Pete Mavoides

was it this But XX%. anyhow listen in quarter,

investment of remains relationships to reliably. and our main a our activity kind driver with so it those guys of work our ability And

Greg McGinniss

tenant tenants Okay. point. Harps on and their that in looks, the total just those and growth And it's you to own stores? more if compares some sense average new looks just maybe number of got relationships quick Spare those follow-up or like It get stores. new on try having top the based how just mine portfolio? to how Time that curious, really a Just XX% your of I'm for tenants like can XX% about much you

Pete Mavoides

one I'll stores any you we the XXX%. – it's there. of giving X% short of stop tenant, I And an percent Listen average Yeah. to from from range would it own can say,

consideration those allows and us of being effectiveness that As and relationships by with it – relates they've and you to able continue take add over and because XX% to serve Spare we with we've to into it's offset a want better been units, ultimately embedded do synergies and in both and top people cost tenants. been road. down Time But past relationships that our XX. your business our provides for top of to where full provider, a existing That we've deals the overall the at exposure obviously, Harps, But – that times populate to growing denominator time the when doing become manage individual with as XX, us them with and to unfortunately and capital you're transacted the advantage names you've ours, with tends get our economics both tenant. we

Greg McGinniss

All right.

Okay. much, Pete. Thanks so

Pete Mavoides

Thank it. you. got You

Operator

you. Thank

McGrath comes Sheila question of your question. the Our from next with Please Evercore. with line proceed

Sheila McGrath

revenue percent just as over the as you was a of the XX% G&A Yes. since best read highlighted Good that's IPO. morning.

or personnel? quarter you run add Just meaningfully do your that Is to to G&A second what a having good envision rate metric? target to is

Mark Patten

cash we've Yeah. efficiencies some good look guess, in Thanks, achieved I our Sheila. G&A. pretty say I'd what

of well a for But we're headcount pick percentage trend that it's increase conferences I terms we business think half and But of as staffed in going I of of travel might the we though think slight down. as cash a the starts see in continue handling year the to revenue I half us. to see up ahead the think think pretty back on to G&A. the So back I

Sheila McGrath

your the have guys you tenants. rent looking at of then benefit coverage And Great. metrics for Okay.

Just have recovery sectors already and laggard? kind had – been that of businesses returned there the are Which worth noting have pre-pandemic any levels? the quickest have which to sectors

Dan Donlan

and guys at I tackle service the have of September. that. operators, lowest ramping Yeah, impacted some would Sheila, have the are in impact by early probably work sectors And impact. education of theaters stores pre-pandemic also still return convenience – pandemic. knows – to and back level level which certainly country I a There's we service were to our the then I'll barely level most but would And of hope and the But say, the see longest auto movie quick The had say, our car everyone our childhood recovered. kind clearly, been of greatest gyms as impact, the isn't full slow, which in up to status, levels understand. washes

there's they're So our a feel and and wide the dollar been certainly, collecting dispersion on but of good we performance, operating. all cents that open

Sheila McGrath

Can you Okay, question. you it to Is higher. managing On ratio? Last your your thoughts thoughts outlook? on guidance Just certain dividend? are the the a you great. dividend payout on us moved remind -- AFFO

Pete Mavoides

Yeah.

maintain the the historically like dividend to share we've And with that rationally looks in we've that ratio think range. do Board I and -- AFFO quarter been and at we to So per like we'll a or growing the growth alongside continue to maintain the XX% every Board said would our payout that.

Sheila McGrath

a lot. Thanks

Pete Mavoides

Sure. Thank you.

Operator

you. Thank

with question Please proceed Sachs. Goldman comes question. line your Burrows the Our from with of Caitlin next

Caitlin Burrows

higher coverage in Hi, but three seems times now. total good past about under than wondering one-time over larger the portion like we it's been the the past watch was than I It the coverage is the morning. is of could if talk the actually maybe in list. portfolio

some XXXX? continue of those go are still you tenants what your list? this the seen coverage Or down may XXXX you dragging And And end means half levels? that is of much first to could struggle? watch for already through those So how in improvement have the

Pete Mavoides

really not -- on said those that as any of impacted for tenants. the -- obviously, our of are second adjusted COVID, many for down being are quarter last Caitlin severely numbers the by call it statistics the we deferral. with rent year all have shut those Yeah. And

So what full burdened revenue with trailing one-quarter see in XX is of rent. essentially the you numbers no

think that list going on I would And materially is capitalization we watch just at quarter-over-quarter more say So we're as periods and our much these are refined to basis our those basis those estate. a a off. real improve numbers coverage burn looking guys and and than

overall And where very list watch spot tenants pandemic. are so in our statistics good legacy is the a really just our and are a we about of feel good those that COVID and

Caitlin Burrows

others just that are Got clarify the mean X.X level doing like -- fair? coverage then it. I to are seems times that really Is well. And just it that there with of overall that

Pete Mavoides

that really and also those have as well pandemic we people are and which there industries have added to is investment statistics Yeah. influenced you the doing really that -- activity that emerged are doing There's operators. so but very are the strong well others and do selection significant being from by of

Caitlin Burrows

Got NOI? them could financing that. it. certain wondering investments details way portfolio And incremental or if interest that been acquisitions is NOI like regular so that's result you and certain through of of growing, then interest classified to And a makes on and that some direct it income nuance go for line a and the the of of maybe versus increasing get just is the just it the leases looks has loan I receivable loans just think income --

Pete Mavoides

in that loans. a are or great NOI. would a are to similar. may motivation, investment -- tax that And economics certain is concerns, incremental for to be will reasons interest less us ownership. sale-leaseback traditional portfolio at assets and make where loan whatever can't our we own get we There loan generally That against seller fee that's it's We our reason but to income tends a structuring for otherwise at want invest that circumstances we we that and loan loan-to-value than but

It past to loan been over a modest we've some year some our be seen modest But loans activity. to fortunately investment And has that. good part so and the part. a opportunities continue we've done of should the make book

Caitlin Burrows

Got it.

thanks. Okay,

Pete Mavoides

you. Thank

Operator

line you. question. Please with question comes proceed Thank Massocca Ladenburg. Instructions] from next [Operator with the Our your of John

John Massocca

Good morning.

Pete Mavoides

Hi John.

John Massocca

Maybe with Time, the the just going additions you two on list. got kind give can back center of and family tenant to were for by little What Spare the color you mean specifically a more of new alley I tenant? hit top the to maybe entertainment how similar bounced given bowling initial back companies pretty pandemic? comfortable with they've that focused, hard underwriting the wave

Pete Mavoides

are and the and doing we've for and great tenant, out a great which their real a we pent-up for sites is Sure. wanting point sites at Time business there at think things. in family-owned do really the our operations, some a for people been operator. look taking benefiting corporate Listen invested Time the great in be space. company we And demand like with and from taking estate look that we with great that that in be that family the the have valuing to company, have a get is operator doing perform units, any really And and ability a we rebounded and fair. think and a is well at for comfort think and as how John they entertainment It's our that during is entertained while, an Spare individual business Spare a the tenant. we was quarter to that own is -- a great tenant at going the look consistent underwriting taking I the underwriting credit, a

John Massocca

a based had on Spare what it You you maybe Time -- assets fair that in pre-pandemic portfolio assumption said? is though the

Pete Mavoides

I think yes. I said that,

John Massocca

I guess, just the kind kind of the for Harps, grocery them backing that color space? there, of for financial of the tenant any And kind maybe the then outlook with particularly given just given financial of competitiveness what's

Pete Mavoides

Yes.

existing regional Harps sales like sites that is with the are well-located bought And case but and profitability. a So when balance Harps. it's grocer a are strong XXX and have sites we I underwrite competitive strong I with the was is a with doing unit strong that and the well know records sale-leaseback sites And that that capitalized with you're industry, we buying long can purchased believe we sheet. track sites you're

John Massocca

Those that's Okay. been had I questions covered.

So time. thanks very much for the

Pete Mavoides

Thank you, questions. John. Appreciate the

Operator

you. Thank

Securities. Our Lucas proceed of your with line Capital the question comes question. One with next from Please Chris

Chris Lucas

Pete. Hi, guys. Hi,

what unit on at of to questions. I go couple if XX-month like kind the basis, quarter status on of appreciate a the up current if what it most it one-time Pete to of trailing do back number looked issue. out less as a following trying coverage. less looks is. guess could sort recent than sort the guys annualized I you you have Just one-time? really we to Maybe that Just of figure than level

Pete Mavoides

the trend that that not and disclosed the recovered a those It's as back committed currently I everyone's a to going we are disclose. not to us we that's some a think varied that industries, on to fact do we the industries something it's good We said, gives and level how concerning number commentary largely we Yes. own. gave tenants sites to we're But comfort across will number or are and paying sites are normalized us. the And not that performing.

Chris Lucas

into opportunity? growth to is or Or just sale-leasebacks? through you that you to that that would not of relates it of it call have of related transactions more of into other are creating Okay. that or to compare In their source And they then kind it tenant pre-pandemic? that portfolio sort that? as as And does insight how the M&A legacy of is I whether and curious entering sort is to the the words, completed disposing of unit have sort organic has an the what gone

Pete Mavoides

Yes. us. They of a say over time. not -- I for driver and big Yes. to organic the tends one investment to would growth both activity be two tend be units

So the and operator business two driver big rolling buying are is to sources for going us M&A us. or of business of be where that for a a is competitor up an

the the seller sheet, it's the skewed And doing activity. need. operator is XX-XX assets motivation, recent where harvesting quarter M&A. real another to assets source would say, meet The for or sale-leaseback capital haven't an towards other estate I is I But probably down broken balance their on harvesting motivation the or

Chris Lucas

I all Okay. morning. this That's Thank you. have

Pete Mavoides

much, Chris. Thank it. Great. you very Appreciate

Operator

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

Pete Mavoides

a Well have into us It Great. we momentum third. this we're great quarter to strong excited for going and quarter. the really was report

and So all for great today participation you your thank a Have your Thank you. questions. day.

Operator

This concludes today's teleconference.

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

Essential Properties Realty Trust (EPRT) 29 Jul 212021 Q2 Earnings call transcript