EPRT · Essential Properties Realty Trust, Inc. Q2 FY2026 earnings call record财报电话会记录

“Cap rates came in slightly better versus prior quarter at an average initial cash yield of 7.8% and a GAAP yield of 9.1%, preserving a meaningful spread to our cost of capital that is a key driver of our earnings growth.”

“Investment activity and portfolio operating trends are tracking ahead of budgeted expectations, allowing us to once again increase our 2026 AFFO per share guidance to a new range of $2.01-$2.05, and our investment volume guidance to a range of $1.2 billion-$1.5 billion.”

“Our portfolio benefits from broad diversification as our top ten tenants represent just 15.2% of ABR at quarter end, while our top 20 tenants account for only 25.4%, reflecting our continued focus on partnering with a broad base of middle-market operators and limiting concentration risk.”

“Pricing in our forward pipeline continues to produce cap rates in the mid to high 7% range, and with over $1 billion of closed plus identified opportunities year-to-date, we are well positioned to execute on our increased full year investment guidance range of $1.2 billion-$1.5 billion.”

“Our cash G&A was $7.2 million, which is trending toward the bottom half of our guidance range of $30 million-$34 million for the year, and represents just 4.4% of total revenue, down from 5.2% in the same period a year-ago.”

“We declared a cash dividend of $0.32 in the second quarter, which represents an AFFO payout ratio of 64%.”

“Our retained free cash flow after dividends totaled $43 million in the quarter, equating to approximately $170 million on an annualized basis, representing a substantial source of internally generated capital to support our future growth.”

“As a result, our pro forma net debt to annualized adjusted EBITDAre remained low at 3.5x at quarter end, and total available liquidity increased to $1.7 billion, providing us with ample capacity to execute on our investment pipeline well into next year.”

“Just looking at the volume you've accomplished in the first half of the year on acquisitions and what your updated guide is suggests a pretty meaningful decel or slowdown in volume in the back half of the year.”

“First question is, as of May read, the acquisition volumes were pretty muted through the quarter but clearly picked up through the back half of June.”

“Understanding that you don't guide to bad debt, but just thinking about the restaurant vacancy in the first quarter and then maybe coupled with an increase in the sometimes one-time coverage in the second quarter, do you expect bad debt expense to remain near your long-term average of roughly 28 basis points, or is there a risk it trends modestly above that level?”

“As we continue to invest in our investment volumes, sourcing and processing and underwriting deals takes incremental personnel, as well as managing additional assets.”