- Earnings call transcript Q3 2022

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Operator

Good morning, ladies and gentlemen. And welcome to Essential Properties Realty Trust Third Quarter 2022 Earnings Conference Call. [Operator Instructions] This conference call is being recorded and a replay of the call will be available two hours after the completion of the call for the next few weeks. The dial-in details for the replay can be found in yesterday's press release.

Additionally, there will be an audio webcast available on Essential Properties website at www.essentialproperties.com and archive of which will be available for 90-days. pleasure Vice the Capital President Essential my Dan over Markets now Properties. Senior Donlan, and is to call turn to at It Head of sir. you, Thank Please go ahead.

Daniel Donlan

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

and today President and with Mavoides, me results Peter our discuss to Here Mark operating Patten, our are our CEO CFO.

company’s on differ actual we that discussed forward-looking may from as forward-looking these the and statements During future matters statements in with earnings be changes are cause from the press Company's forward-looking Law. That may certain could yesterday’s this expectations Pete, that, our release. will conference in Securities actual make the results statements. significantly not, call, disclosed ahead. the from But statements reflect results Federal greater please these filings considered were differ these in go materially may statements SEC to time-to-time revisions, With made. in detail

Peter Mavoides

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

testament a X.X% properties. and the quarter and experience just is out our performing times. continues a at Same-store perform weak of our capital record our growth level performance level of indicate, with our our rent based consistent strong service This disciplined underwriting of As process, tenancy to of to properties. resiliency oriented recycling high level vacant X.X of portfolio three unit results third coverage and

to continued XXX the leverage times our moves standing continue adjust balance sellers markets. liquidity to of On capital the is expectation and well our the remained we sheet end better of and and investment. for quarter abrupt investment tenant cap capitalized relationships support reflect we nearly X.X the in quarter long million, front, in With active rates of throughout

to X.X remain balance of within times should are to to X.X We maintaining times. us leverage well sheet, historical a conservative investors expect and our range committed

$X.XX last over to current external growth and $X.XX, growth share spreads. from to experienced measured guidance results This volatility establishing mostly earnings relative AFFO XXXX, at projection the the midpoint-to-midpoint. X% two-years, investment which outlook, in underlying growth capital markets are We per growth our implies double-digit the

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

Our X.X% X.X health ABR percentage versus XX-years, weighted perspective, stood through average lease at of ratio of only unit X.X% ABR with declining coverage times one quarter. of term coverage with average quarter, level weighted a this From just our times improved last X.X% ABR to of to tenant or sequentially our XXXX. expiring under

We expect our this the own back reporting half positive trailing of by municipalities certain placing various fact our still lowest on negatively by remain two industries in continue coverage trend these statistics XXXX. quarters convention, which to lags reporting skewed still capacity that or were among XX-month restrictions and our one cohorts as the

X.X our which financial requirements of through investments with strategy our and our the of investments activity from the subject casual quarter XX% restaurant, The lease this X.X property During sale average times weighted reporting annual ongoing Consistent XX.X per with level was the provisions. X.X%. rental, lease XXX million and up XX equipment These to XX points form originated prior lease average coming medical unit average was contain industries, invested was yield XX% our The weighted The investment X.X% industries. years. on different quarter. was investments a escalation basis quick in million. weighted approximately term average the made rent XX which master are quarterly direct investment at cash XX% weighted through our average separate transactions, third versus and were was of lease coverage backs, were quarter, we with service dining

childhood fourth closed increasingly the of an portfolio date, and our our higher XX.X% XX perspective, to cap rates. to at service Of and active early industry have ABR, above remains From level remains quarter, ahead car industry at early investments washes million unit our Looking education of pipeline to largest coverage XX%. we followed for at restaurants Dental childhood note, levels. continues and XX.X% XX.X% by Medical pre-pandemic quick education increase at

ABR. favorable risk top tool account X.X% unrated power offers operators opportunity benefit strong and market our only of our on direct From pricing of is for tenant end, represents our it ABR experienced which a set. our tenants differentiator tenant a imbalance. focus As at and have largest us. XX to Tenant middle expansive XX.X% mitigation important due of tenants is operators supply perspective, diversity concentration for quarter an demand And and an

dispositions, properties XX.X sold of yield for coverage average in proceeds X.X million average at XX unit net X.X% terms this In a with weighted level times. we quarter cash a weighted of

an is investment As of unit us proactively mentioned and our industries, fungible portfolio. the allows owning it as risks important we manage tenants, have and in discipline level liquid to the aspect properties within past,

elevated properties financials the lows. balance level fourth I sheet would that, With take cap near to second rates quarter, to like remain CFO for our and the who will as you in Mark. to our through it Patten, for quarter. historic remain expect dispositions We Mark turn of the the over individual granular

Mark Patten

everyone. and morning good Pete Thanks,

our a $X.XX, was compared portfolio XXXX. total night, basis in in liquidity growth of which to and quarter in highly headlines the period AFFO our for solid up million share quarter balance our last third XX.X produce the of Among million night over XXXX. release increase favorable internal the to another or an nearly and nearly evident per second same XX.X basis per QX of nominal the the X% to On versus continuing a quarter was XX% quarter XXXX, rent XX% in a fully of an preceding was share, increase with sheet As on was us consistent position. for last AFFO our diluted

period nine-months is total $X.XX XX, in the an X.X an in increase the XXXX ended XXXX approximately nominal million for increase XXXX Total on in with that XX% per XXXX the versus That totaled expense. On X.X We a same stock increase in our last XX%. our QX the a a also per compensation million basis, same period G&A XXXX. for in which an $XXX share share diluted night same per AFFO, reported was year-to-date increase of September fully increase million. AFFO over share XXXX non-cash majority $XX.X of the basis of over period nearly relating to million is the

was item relating cash costs off. moved one-time with to approximately quarter our the by third nearly expensing an required which of XXX,XXX write in the sequentially G&A term-loan, higher Our we XXX,XXX to that associated were XXXX lower of amendment which a rates

basis XXXX. of through as to of XXXX G&A Our quarter, into the total a was to during revenue and the rationalize up but we balance cash percentage this percentage expect continue

quarter equity over that overnight strong from Turning offering to a reached million an $XXX balance quarter our billion we demand, based end. the investments, From In generated a we following. at $XXX perspective, will income-producing strong markets highlight upsized sheet, August, gross capital With net million completed just I perspective. assets very a proceeds. our was in debt which XXXX on and $X.X both in our XQ had

third approximately our We net $XX quarter ATM from in the of proceeds also generated the million program. part in early

we million five a $XXX July. XXXX available closing the fixed call, swapped year to fixed this loan, loan completed an with drew earnings our In during quarter. that and an closed which October, to and $XX we the was amendment $XXX second term under XXXX reported term swap we to the a fixed quarter half the we XXX which million initial the facility million have the drew term of we loan We remaining of to million in at expect third our we As XXXX $XXX we remaining credit through near-term. million past and swapped

adjusted X.X Our nearly times at to end, our EBITDAre net quarter was At quarter stood at total end. million. annualized liquidity $XXX debt

balance to in be investment our Our growth XXXX. liquidity to supportive continues our and future plans significant sheet position, position, strong conservative fund sufficient of and current pipeline leverage

current maintain a reiterate $X.XX XXXX per core have we previously and us as share year-over-year outlook that $X.XX provided to of Lastly, the for growth rate range guidance pipeline, I continued XX% our investment this our implies noted will quarter which with AFFO our to basis midpoint. strong performance portfolio the the at

high turn last to our Pete ends we AFFO X% the low at our range, growth over X% of per guidance I release share mentioned, the XXXX for which will $X.XX XXXX night, per and $X.XX in With our the to as the that, relative guidance. back midpoint of issued share a of Lastly, AFFO a range to call Pete. implies to at

Peter Mavoides

for call the open please let's Operator, questions. Mark. Thanks

Operator

Thank you [Operator Instructions]. sir.

proceed Please comes question Joseph of the with question. line Citi. from first your with Nick Our

Unidentified Analyst

one there. is morning. around for sort for have It prudent quarterly the being Nick Kerr] just acquisition is of means [Nick volume, quantify average more Joseph quick could acquisition me. million? all the think was on I set which what you on wondering this Hi, XXX what versus (Ph) market if you I A

Peter Mavoides

cap And the on position depend where rates and our pace capital to is our capital and in And I we are relationships. would Yes, our our I been certainly be mean materials a reluctant put to have markets volatile. going invest. quantify investment move had on to to fortunate we ample that, a number really what will and that with we markets in the be in on ability

And will it bring. on so we time. are expectations, markets depend trying what it but obviously is dynamic moderate to the And a

Unidentified Analyst

quick sort active think if you Okay, will threshold thanks for acquisitions that. And more little then a is, bring you of the on there be rates a that back going forward? follow-up on cap that bit would into is on markets a

Peter Mavoides

based transaction. would providing price appropriate for to individual we risk the, I threshold and, view create And each transaction stopped adjusted accretion. the we returns that a of short our make Yes, of investments upon

little spread because as But no our have there. capital, is there so cap are, more hard number isn't are wide rates current are as we and a have past, we of than we And cost in we given the seen. being the judicious certainly,

Unidentified Analyst

Great. Thanks.

Peter Mavoides

You congrats got it. to Thank and you Nick. Nick

Operator

line comes with your question Milligan RJ proceed question. of next our Raymond Please And with James. to the

RJ Milligan

capital? good how it? here. I with guys. do your my you question And And I it? calculate of view you boiler start cost Hey is What plate morning current do guess how will

Peter Mavoides

that capital been don't said, of to deploy were But Yes, raised. cost so that in we to fortunate already as love have and raise capital current we earlier the has said capital. year I our Nick, to

specifics in obviously, have raise pretty been as is given volatile. And it. number Dan, it you of But range, this over, recycling, at accelerated our the give it kind through low six capital of go through think about because we But specific on you Dan a stop ahead. shorter the how point, activities. to capital disposition kick also We kind ability that see

Daniel Donlan

terms the we A, RJ capital know, do our then you and XX straight weighted versus you our mix basis way basis our when flow and as average add that. traditional, kind weighted between of today at And of pipeline cap which we on that, dividends. to points which, average put our, free yield implied XX a cost Yes, about of math analysis, view another is X.X weighted XX, can XXX know, together that cost And and whack, a and seeing XX look points basis in at where XX, of anywhere as our a we you line rate basis. on look we spread you are debt, of is at shorthand that a always And X.X to you to initial cash everything around equity, XXX and is a X.X. capital to look

RJ Milligan

XX helpful. was the for the cap then guess acquired is rate? And what million far That quarter, so this average I

Peter Mavoides

The rate. average cap

Mark Patten

I would to add it X.X.

Peter Mavoides

Yes. X.X.

in overall So upon, you but about based tend quarter, deals to on rates to the mix certainly any on of think we that we that have XX. the pipeline, XX listen, and know, given cap the

a for to would wider want think we low I be better, the range more a entire mid-Xs to quarter.

RJ Milligan

Got it.

your little based spread. So bit certainly a far on quarter, just whack, tighter this but current so deal accretive

Peter Mavoides

appetite. parcel with I Yes. kind think and our that investment goes is is tempering accurate. of one that Which part

RJ Milligan

That sense. Thank makes you.

Peter Mavoides

Thank you RJ.

Operator

line next comes of our Wendy with Ma from proceed And the your question. Please with question Evercore.

Wendy Ma

Hi you thank good for morning my taking questions. and

current acquisitions the also my this levels? how question acquisition So to your first would talking pipeline XQ the compare in how the pipeline are much of and is, acquisitions you and would to-date, given about you historical like mind

Peter Mavoides

Yes.

levels. historical million indicate XX to So pace with date would a quarter consistent relatively

year-end. fourth and is I typically, quarter at historical is our is remains As capital prepared it pipeline it volatility market sellers said, in on And the remarks, markets. and buyers tax motivated sellers, given elevated and certainly is a But ask the a an the spread volatile the a bid with given basis there robust. little

So, quarter we put to But on But continuing sellers cap a we opportunities. to rates it meet the is ours. to seeing try early point are little is fine push in to good get the full, that. are a pipeline to expectations

Wendy Ma

Okay, this or next think your the thanks. you your occupancy slowdown And year economic and the recession any you tenants expectation and my second do going of the question remainder of current impact about does for into any have would how year? is,

Peter Mavoides

Listen, rollover. I occupancy very very first high, that, of are very I to subject always have little as kind start fungible leases, that and expect continues assets long we our have to because dated would we a

in And fourth expect so, I would dip quarter materially not the next our year. occupancy or to our,

embedded don't situations that for this All those portfolio for be both the great the losses, we As that that two we guidance year, part the next operating year. and guidance, reiterated anticipate, that and our we and of credit anticipate, is would spot. model situations for in assumptions one a provided said in we we assumptions, for

our good a record X, we cohorts is are operating which coverage is it operators what to is fashion we hearing are with that X.X pool migrate see like at point. and doesn't and below level, Our continue coverage a tenants. at smaller improvements with in with see - from lower feel it really we below continuing seeing our or a in is portfolio this performing The sites to there a recession

Wendy Ma

thanks. That helpful. is Okay,

Operator

from comes St. Haendel question of our line next the And

Juste Please proceed question. your Mizuho. with with

Haendel St. Juste

leverage assumptions next guidance? capital the I'm shifting are equity, confidence, capital Good there. given you price And morning. on I'm the guess new what and curious put year. you that what challenging curious, I to markets a underlying for Hey, within a guidance recycling guidance parameters guess, gave mentioned. out Thanks. follow-up asset the I and macro there for range

Peter Mavoides

Yes, Haendel.

of assumptions One underlying guidance buying capital I -- a cap is, and issuing are factors of deploying raising relates wide assets One a confidence guidance we two. to wide the in guidance at of that and very rates and range is gave it guess, has which capital. us two range those that the is the

is confident in volatile. So unfortunately, range are those those say give in you at range of But already to million lot we with of to and our $XXX historic around this today position not we balance that, the leverage inputs. would that, as point, And looking we at the a sit scenario on one a our more biggest is built as I point of are components, factors we nearly fact have specific contributed availability that pretty a that because low level at liquidity. of levels clarity capital into of they of comfort wide out, sheet are all provided, a we

Haendel St. Juste

offering. Okay. Fair enough. the guess, A July separate debt on question, I

guys issued you think I a floating million five-year. had XXX on

XX you fixed that. million think mentioned of I you

thinking of can you back been of XXX the expect first curious, for? didn't fixed? the the I'm you to should are all walk what there you looking and all, fixed When us issue why is long-term for then remaining that plan guess million for hasn't I and Thanks. What that? So fix we them end through the

Peter Mavoides

specifics Yes. I tackle the on will Mark loan. the let term

give we when had we in when have schedule Mark you XX-year execution. was fixed it to than drew and of left. basis bond we it And we specifics very given and five opted term unsecured the maturity that on issuing debt longer-term market where a was. just terms because But runway to short-term what profile, In we efficient more ample go our to on pay, the efficient year market layer can much it, long-term

Mark Patten

second this extremely Frankly for Pete has from unsecured may But but year call, of as apologies the though Yes. first I through that. hopefully, reiterating gone will the And have we mentioned to pretty dislocated. on maybe mentioned, been quarter market this really bond dislocated into foremost, balance has dislocated. the and

so a deal. loan the And bond execution, really anticipation term modeled fixed doing we even opted in the for unsecured though of we

was itself and our initial from capital kind - borrowing. thought actual our it of was our to initial what draw initial loan execution, the indication that an we of the As relates term really need

So of schedule, see you we into think our decided once weighted the swapping our that the we that sort X.X. I that fixed, way legged in rate is debt can average

XXX time, swapping So probably where once too And and we, frankly, to that swap remaining to I of going we our draw they the choppy in pretty frankly, Once in challenging north are of that once the the October. legged we first to markets not quite continued is to to up, some be to be looking going were again, buttoned started actually that be for we is XXX. kind like think going be far way and quickly. decided

Haendel St. Juste

then Okay, Curious specifically particularly of concerned in there? was sense tenant to more about list. going recession, what town guess, guess, and on, I'm your the one I categories thanks. on curious about I watch And a is categories, watch list sports, happen incremental anything here on what is any

Peter Mavoides

basis, of in just guess, industry recession. don't be But on who may you have concerns is not tend as weaker I have a the we spot, think watch good high-level great first really any is we a balance or macro our overall, that sheets I I know, said, that be the is concerns into operators Yes, on. as looking focus and and specific. as become and or at been, list as and maturities, spot. good to portfolio specific, a tenants going less tenant Really more low in level it And,

of fall like feel sets this certainly kind in, watch very one first is recession and point operators of will industries as doesn't certainly this casual those a it in will recession at people closely point. if off dining the Some we to to

As with new that a those Town of point. have put top that bankruptcy and a went they we relates our ours, we fortunate went think to a hands and those points over release And at and from it company used entity Sports, in that into through probably of struggle continues entity to bankruptcy of entity, better sights the to were ABR represents be assets that out tenant restructuring a we assets to basis a year-ago. XX this away operator, three about new coming

about any commentary have specific how Sports performing. or specific don't we So concerns is Town

Haendel St. Juste

me, an follow-up a forgive investor. I question Great, from had

willing comment the a next a know for to guidance I were you you Thanks. assumptions, guide on there the equity? of new without question put midpoint up to range range a the If year, of you is but get is, can wide it wide with

Peter Mavoides

Yes. a the Listen, there equity. can without we we can. them, and is we midpoint can variables get could And all of and with we to issuing of lot play additional

Mark Patten

what Actually, using facility, the without would I issuing debt, of is additional add. just but kind credit

Peter Mavoides

historical well staying And X.X within range handout. our to X.X of

Haendel St. Juste

it. you I Okay, important. appreciate adding

Peter Mavoides

That is important.

Operator

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

Greg McGinniss

question. to the I'm that way for had time or about the cap view, and impacted my this view trying this the QX. appreciate beginning some acquisitions best at achieved? I kind of approach context, towards morning. of you taking if think just of have level Thanks maybe acquisitions. might rate And to this How moderated approach for this

Peter Mavoides

probably going instead quarter that QX, of up XXX had a a into XX. million seven of messaging, similar think, level similar had I caution we ended Listen, and and a that we around

to the which what and that will bid market If And that depend range is that be and pace expectations ability work muted. we really wide bid ample then the if like. get that the levels the And end to at spread appropriate, between exists capacity, too narrows kind extremely tell sellers. think tethered might acquisition buyers dynamic, are could is yields, a and really put that and that and hold upon we then ask bridge up our earlier bid spread ask the current and are to have look really, to are we to so, the ask could persists capital of it investment doing continue our more markets early market able we to fortunate it we spread really is to sellers that

Greg McGinniss

thinking that bid seeing about the I you And in spread today. ask this, guess, are

right of just of cap that XX, kind if of just maintaining the it with your at the is cost with the wouldn't in enough you If change? buyers that or the to there increase happened forces Is now come have I still sellers guess, expectation acquisitions rates in all you, for. were dealing capital. didn't What at everyone kind are and looking same the that deals

Peter Mavoides

Yes.

however, a I buyers less been leverage the relationships, competition think standing there And also could tends decided it aggressive. financing, markets it transactions becoming away capital and a long it be be has sale themselves to alternative with companies leaseback be from equity, becoming in aggressive. change could could in with us. public to certainly debt the competitive these the with landscape We less our private sources, - be doing capitalize little

not necessarily real spectrum, across which is, it but so, solutions are capital we cost repricing. are estate capital, of of currently just competing the And all against,

they with source. so of is But a combination whether rate hard would or transactions away is say have I different think happened us just have And wouldn't that. or us capital from the would have away it some happened from probably happened to different

Greg McGinniss

Okay, thank you.

Peter Mavoides

Greg. you Thank

Operator

from of your Joshua next proceed question the America. our Dennerlein with with question. Bank comes line Please of And

Joshua Dennerlein

the of Yes, like sellers, that out competition Two changed and conversations then like you what similar cost is hey of and with pricing have everyone. do what recognize at kind for questions. pushback this point? they buying competition buyers what today giving - just capital are on is there One the they

Peter Mavoides

a increasingly just finding is buyers public for with That little our that are into away. come are searching buyer from is we going of and a perspective. bit kind and more private I peers alluded kind little the as space muted of Yes. yield competitive getting The competitive some environment it to said,

operating not as say they year. what the recognize in was on that competitive pretty last understand of interest they fourth it on their even or quarter the the and but of of competitive, first cost and buying so, in as what And live is balance, capitals are And and sophisticated year the from going we it on environment. quarter companies the markets how in rate sellers run it work and still is businesses is through going

And so, they through process certainly it mean going to are it. we now. see they doesn't and kind it, is a discovery It pay willing that of price are necessarily

Joshua Dennerlein

is Got for it it. Thank me. you. That

Operator

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

John Massocca

Good morning.

of in cap of rate end today. kind LOI maybe cap bringing even a you rate of PSA under look is the of spread the kind the was quarter environment in the closed kind pipeline is at what what into versus as quarter Maybe how or As wide or terms bucket? between during

Peter Mavoides

size the upon of Yes. call certainly widely hard earlier is It - is in operators deals, investing mix kind I were the and because kind of dependent as look is that at that to industries said is, pipeline, the the really in. number of in the the that of

the Our basis course throughout XX, cap have XX the moved rates points of up year.

the of you X.X%. just activity the versus X.X% If disclosed look at kind we subsequent on

basis is a points as I good so, think proxy And any. that thirty

John Massocca

December as XX I January even going year your points? year, - you have is an enter of in to seen November, about additional something in are mean, basis acquisitions, visibility of they is expansion that that like PSA LOI next think maybe level that bucket you this

Peter Mavoides

expectations, reasons it, sure we that of and we to to get are we we if is Potentially not as likely are are it less. will why basis like is think going the see get additional. and And that But would don't another we it. to appropriate. XX points, invest we moderate An we one trying investment

rates and are we investments cap protect do our cap that warranted. and is as service read rate And of while to think continuing we move get so wide can, to has our as endeavoring relationships our But pushing cost moved to I continuing recognizing relationships. that capital

John Massocca

people you a acquisition any attractive acquisition the priced have into seen kind range of side, of maybe then kind out their institutionalized of And more tenants target pricing an makes perspective. from they who with that of for on back you that of targets, come kind become doing enamored or kind to credit, because being for sense case

Peter Mavoides

away other I buyer Yes, was, us, priced quarter or adjusted went upon thought where our a second retreated, from where return first us, risk we that and have perform priced to based at else in and back private from who deals the think, the of fair to cap maybe didn't buyers, seen appropriate that a someone reliability come rates. away we amount or higher or certainty or

And so would choppy a as is and and are that, there these. fair that of expect, markets amount as as you volatile

John Massocca

of in And of of is things. language then on half the back there I remarks being the the disposition side mean, kind year. prepared about dispositions elevated the in

of an could or review is elevated that dispositions, accelerate in happened further? pace XQ of kind what should You

Peter Mavoides

moved short is quarter we for good of I third that are average scores a think active, that portfolio, think, in The it the expectations have remains said, reason, we liquid buyers, and indicator the a much Yes. elevated. of I market have not one cap a rates beyond that as what expect. to would that. very quarter That market, a stop retail expect, setting is would as

it So probably forward. I and is source capital reasonable for quarter going remains the third so us of attractive an expectation think

John Massocca

me. that helpful Very for is Thank it Okay. you.

Peter Mavoides

appreciate Thanks John. it. I

Operator

to Capital line your And the our question of Chris proceed One next Lucas Please Securities. with question. comes with

Chris Lucas

for questions guys. me. Three Hey morning good

bigger So question. picture one

business between period I time. in be your long rate, normalized over at been what a this or you guess a see, what time? should cap to and acquisition as of curious this cost experience have just I'm the You as And spread has a capital long been

Peter Mavoides

be of But estimate. threshold, as XX. expect that I the people for say, high spot these the reasonable appreciation was there from that there for in a it excess low do as to come asset and certainly as the of class, ad would kind spread class, class north through a assets XXX cycles. inefficiency excess durability XXX spread, overall I Yes, appreciation out should the various XXX durability as would and think as or is as the is evolved asset a growing overtime to asset the greater of have I of given that and has

Chris Lucas

Okay, a sellers, essentially with for it at given the ago? conversations you the having or all in three, motivation their And of or still four-years environment changing what terms was it is thanks is that. are potential just year-ago then,

Peter Mavoides

say, M&A by leasebacks, call tend to that as debt largest it are acquisition, or driven motivations that me part could be XX% of tends be growth a sale I leaseback sale given be that recaps would be Yes, could there refinancing we catalysts, well. defined equity to some of business of doing and the set

And so by our markets. our buy to seeking that grow sale the But change factors driven slightly. leaseback relationship up adjacent those competitors tenants and in are grow majority and are transactions of vast

Chris Lucas

rate, one smaller over question, prior your a or Okay. cash rate and time? mentioned asset more that that retail last for all an which typical more is because liquid relates the stickier question you think is me will you cap be likely it and cap and find that you are therefore buyer just the stickier. been Do to little buyer,

Peter Mavoides

to are call a see end is in our that it assets fundamental why stickier an selling you the is a be to tend Absolutely. that That is one to asset to $X $XX asset less that, going wouldn't have third-party of owning million to million and see than $X a to to buy the rates we interest cap million asset lot a at rates. you look more key the a financing. tied tethered asset and and buyer What not extent to we and and that of asset risk how ability liquidity

Chris Lucas

Okay, had I thank is That this all you. morning.

Operator

time. floor the further turn to no would to remarks. questions over I at for are this Pete There any Mavoides like closing back

Peter Mavoides

Well, have and Great. thank for that and diligence you all in great to look you navigating time forward questions. your us you Take all today. with dynamic and and upcoming NAREIT. day. time working with are care we the Certainly a we we a your Thank appreciate your meeting for through

Essential Properties Realty Trust (EPRT) 28 Oct 222022 Q3 Earnings call transcript