ESSENTIAL PROPERTIES REALTY TRUST, INC. (Form: 8-K, Received: 10/27/2022 16:28:23)

false000172895100017289512022-07-282022-07-28

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

Essential Properties Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland

001-38530

82-4005693

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

902 Carnegie Center Blvd., Suite 520

Princeton, New Jersey

08540

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code:

(609) 436-0619


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
☐			Written communications pursuant to Rule 425 under the Securities Act 17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common stock, $0.01 par value

EPRT

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Item 2.02 — Results of Operations and Financial Condition.

On October 27, 2022, Essential Properties Realty Trust, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the three and nine months ended September 30, 2022. The press release is furnished hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.01— Regulation FD Disclosure.

On October 27, 2022, the Company issued its Supplemental Operating & Financial Data—Third Quarter Ended September 30, 2022. The Supplemental Operating & Financial Data is furnished hereto as Exhibit 99.2 and incorporated herein by reference.

The foregoing information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and Item 7.01, “Regulation FD Disclosure.” The information in Items 2.02 and 7.01 of this Current Report on Form 8-K and the exhibits furnished therewith shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, and shall not be or be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.

Item 9.01 — Financial Statements and Exhibits.


Exhibit No.			Description
99.1			Earnings Press Release dated October 27, 2022 for the quarter ended September 30, 2022
99.2			Supplemental Operating & Financial Data—Third Quarter Ended September 30, 2022
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: October 27, 2022	ESSENTIAL PROPERTIES REALTY TRUST, INC.

	By:	/s/ Mark E. Patten
		Mark E. Patten
		Executive Vice President, Chief Financial Officer, Treasurer, and Secretary (Principal Financial Officer)

Essential Properties Announces Third Quarter 2022 Results

- Third Quarter Net Income per Share of $0.26 and AFFO per Share of $0.38 -

- Closed Investments of $195.5 million at a 7.1% Weighted Average Cash Cap Rate -

- Issues 2023 AFFO Guidance of $1.58 to $1.64 per Share -

PRINCETON, N.J.--(BUSINESS WIRE)--Essential Properties Realty Trust, Inc. (NYSE: EPRT; “Essential Properties” or the “Company”) today announced operating results for the three and nine months ended September 30, 2022.

Third Quarter 2022 Financial and Operating Highlights:


Operating Results (compared to Third Quarter 2021):
•Investments (40 properties)	$ Invested	$195.5 million
	Weighted Avg Cash Cap Rate	7.1%
•Dispositions (12 properties)	Net Proceeds	$35.5 million
	Weighted Avg Cash Cap Rate	6.2%
•Net Income per Share	Increased by 13%	$0.26
•Funds from Operations ("FFO") per Share	Increased by 6%	$0.38
•Core Funds from Operations ("Core FFO") per Share	Increased by 6%	$0.38
•Adjusted Funds from Operations ("AFFO") per Share	Increased by 15%	$0.38


Equity Activity:
•Equity Raised (Gross) - ATM Program	$21.57/share	$20.5 million
•Equity Raised (Gross) - Follow-On Offering (August 4, 2022)	$23.00/share	$201.0 million

Year to Date 2022 Financial and Operating Highlights:


Operating Results (compared to YTD Third Quarter 2021):
•Investments (184 properties)	$ Invested	$609.0 million
	Weighted Avg Cash Cap Rate	7.0%
•Dispositions (26 properties)	Net Proceeds	$80.0 million
	Weighted Avg Cash Cap Rate	6.4%
•Net Income per share	Increased by 30%	$0.74
•FFO per share	Increased by 19%	$1.17
•Core FFO per share	Increased by 17%	$1.19
•AFFO per share	Increased by 19%	$1.15


Equity Activity:
•Equity Raised (Gross) - ATM Program	$24.08/share	$212.8 million
•Equity Raised (Gross) - Follow-On Offering (August 4, 2022)	$23.00/share	$201.0 million

Highlights Subsequent to Third Quarter 2022:


•Investments (14 properties)	$ Invested	$59.6 million
•Dispositions (2 properties)	$ Gross Proceeds	$7.5 million



Debt Activity:
•2028 Term Loan	Drew Remaining Available Principal	$150.0 million

Commenting on the third quarter 2022 results, the Company's President and Chief Executive Officer, Pete Mavoides, said, "We were pleased to see strong AFFO per share growth in our third quarter results, which were defined by continued improvement in unit-level coverages, solid investment activity, and proactive capital market executions. With quarter-end leverage of 4.4x and nearly $900 million of available liquidity, our balance sheet is well positioned to capitalize on accretive investment opportunities in today’s dynamic marketplace. Looking ahead to 2023, our newly issued guidance assumes continued balance sheet discipline and a moderated level of investment activity, which we see as prudent given the uncertain economic outlook and challenged capital markets environment."

Portfolio Highlights

The Company’s investment portfolio as of September 30, 2022 is summarized as follows:


Number of properties						1,572
Weighted average lease term (WALT)						14.0 years
Weighted average rent coverage ratio						4.2x
Number of tenants						329
Number of states						48
Number of industries						16
Weighted average occupancy						99.8%
Total square feet of rentable space						14,821,496
Cash ABR - service-oriented or experience-based						93.1%
Cash ABR - properties subject to master lease						64.2%

The Company’s investment activity during the three and nine months ended September 30, 2022 is summarized as follows:


	Quarter Ended September 30, 2022	Year to Date September 30, 2022
Investments:
Investment volume	$195.5 million	$609.0 million
Number of transactions	27	73
Property count	40	184
Weighted average cash / GAAP cap rate	7.1%/8.2%	7.0%/8.0%
Weighted average lease escalation	1.6%	1.5%
% Subject to master lease	68%	79%
% Sale-leaseback transactions	89%	96%
% Existing relationship	94%	86%
% Required financial reporting (tenant/guarantor)	100%	100%
WALT	16.5 years	16.1 years

The Company’s disposition activity during the three and nine months ended September 30, 2022 is summarized as follows:

Quarter Ended
September 30, 2022

Year to Date
September 30, 2022

Dispositions:

Net proceeds

$35.5 million

$80.0 million

Number of properties sold

Net gain / (loss)

$6.3 million

$18.1 million

Weighted average cash cap rate (excluding vacant properties and sales subject to a tenant purchase option )

6.2%

6.4%

Loan repayments to the Company during the three and nine months ended September 30, 2022 are summarized as follows:

Quarter Ended
September 30, 2022

Year to Date
September 30, 2022

Proceeds—Principal

$23.1 million

$71.5 million

Proceeds—Prepayment penalties

$0.4 million

$0.8 million

Number of properties

Leverage and Balance Sheet and Liquidity

The Company's leverage, balance sheet and liquidity are summarized in the following table.

September 30, 2022

Leverage:

Net debt to Annualized Adjusted EBITDAre

4.4x

Balance Sheet and Liquidity:

Cash and cash equivalents and restricted cash

$144.2 million

Unused revolving credit facility capacity

$600.0 million

2028 Term Loan - remaining availability

$150.0 million

Total available liquidity

$894.2 million

ATM Program:

2022 ATM Program initial availability

$500.0 million

Aggregate gross sales under the 2022 ATM Program

$53.2 million

Availability remaining under the 2022 ATM Program

$446.8 million

Average price per share of gross sales since inception in May 2022

$21.57

Subsequent Debt Activity

In October 2022, the Company drew the remaining $150.0 million available under its $400.0 million 2028 term loan.

The Company currently expects 2023 AFFO per share on a fully diluted basis to be within a range of $1.58 to $1.64.

The Company reiterates its previously issued expectation that 2022 AFFO per share on a fully diluted basis will be within a range of $1.52 to $1.54.

Note: The Company does not provide guidance for the most comparable GAAP financial measure, net income, or a reconciliation of the forward-looking non-GAAP financial measure of AFFO to net income computed in accordance with GAAP, because it is unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measure, including items that are not indicative of the Company's ongoing operations, such as, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses and stock-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on the Company's GAAP results for the guidance periods.

Dividend Information

As previously announced, on September 2, 2022, Essential Properties' board of directors declared a cash dividend of $0.27 per share of common stock for the quarter ended September 30, 2022. The dividend was paid on October 14, 2022 to stockholders of record as of the close of business on September 30, 2022.

Conference Call Information

In conjunction with the release of Essential Properties’ operating results, the Company will host a conference call on Friday, October 28, 2022 at 11:00 a.m. EDT to discuss the results. To access the conference, dial 877-407-9208 (International: 201-493-6784). A live webcast will also be available in listen-only mode by clicking on the webcast link in the Investor Relations section at www.essentialproperties.com.

A telephone replay of the conference call can also be accessed by calling 844-512-2921 (International: 412-317-6671) and entering the access code: 13733465. The telephone replay will be available through November 11, 2022.

A replay of the conference call webcast will be available on our website approximately two hours after the conclusion of the live broadcast. The webcast replay will be available for 90 days. No access code is required for this replay.

Supplemental Materials

The Company’s Supplemental Operating & Financial Data—Third Quarter Ended September 30, 2022 is available on Essential Properties’ website at investors.essentialproperties.com.

About Essential Properties Realty Trust, Inc.

Essential Properties Realty Trust, Inc. is an internally managed REIT that acquires, owns and manages primarily single- tenant properties that are net leased on a long-term basis to companies operating service-oriented or experience-based businesses. As of September 30, 2022, the Company’s portfolio consisted of 1,572 freestanding net lease properties with a weighted average lease term of 14.0 years and a weighted average rent coverage ratio of 4.2x. In addition, as of September 30, 2022, the Company’s portfolio was 99.8% leased to 329 tenants operating 486 different concepts in 16 industries across 48 states.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. When used in this press release, the words “estimate,” “anticipate,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “seek,” “approximately” or “plan,” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions of management. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and the Company may not be able to realize them. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. While forward-looking

statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur as described, or at all.

Additional information concerning factors that could cause actual results to differ materially from these forward-looking statements is contained in the company’s Securities and Exchange Commission (the "Commission”) filings, including, but not limited to, the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Copies of each filing may be obtained from the Company or the Commission. Such forward-looking statements should be regarded solely as reflections of the Company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release.

The results reported in this press release are preliminary and not final. There can be no assurance that these results will not vary from the final results reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 that it will file with the Commission.

Non-GAAP Financial Measures and Certain Definitions

The Company’s reported results are presented in accordance with GAAP. The Company also discloses the following non-GAAP financial measures: FFO, Core FFO, AFFO, earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA further adjusted to exclude gains (or losses) on sales of depreciable property and real estate impairment losses (“EBITDAre”), adjusted EBITDAre, annualized adjusted EBITDAre, net debt, net operating income (“NOI”) and cash NOI (“Cash NOI”). The Company believes these non-GAAP financial measures are industry measures used by analysts and investors to compare the operating performance of REITs.

FFO, Core FFO and AFFO

The Company computes FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as GAAP net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO is used by management, and may be useful to investors and analysts, to facilitate meaningful comparisons of operating performance between periods and among the Company’s peers primarily because it excludes the effect of real estate depreciation and amortization and net gains and losses on sales (which are dependent on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions).

The Company computes Core FFO by adjusting FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that it believes are infrequent and unusual in nature and/or not related to its core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Core FFO provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis.

Core FFO is used by management in evaluating the performance of our core business operations. Items included in calculating FFO that may be excluded in calculating Core FFO include certain transaction related gains, losses, income or expense or other non-core amounts as they occur.

To derive AFFO, the Company modifies its computation of Core FFO to include other adjustments to GAAP net income related to certain items that it believes are not indicative of the Company’s operating performance, including straight-line rental revenue, non-cash interest expense, non-cash compensation expense, other amortization expense, other non-cash charges (including changes to our provision for loan losses following the adoption of ASC 326), capitalized interest expense and transaction costs. Such items may cause short-term fluctuations in net income but have no impact on

operating cash flows or long-term operating performance. The Company believes that AFFO is an additional useful supplemental measure for investors to consider when assessing the Company’s operating performance without the distortions created by non-cash items and certain other revenues and expenses.

FFO, Core FFO and AFFO do not include all items of revenue and expense included in net income, they do not represent cash generated from operating activities and they are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, our computation of FFO, Core FFO and AFFO may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs.

The Company computes EBITDA as earnings before interest, income taxes and depreciation and amortization. In 2017, NAREIT issued a white paper recommending that companies that report EBITDA also report EBITDAre. The Company computes EBITDAre in accordance with the definition adopted by NAREIT. NAREIT defines EBITDAre as EBITDA (as defined above) excluding gains (or losses) from the sales of depreciable property and real estate impairment losses. The Company presents EBITDA and EBITDAre as they are measures commonly used in its industry and the Company believes that these measures are useful to investors and analysts because they provide supplemental information concerning its operating performance, exclusive of certain non-cash items and other costs. The Company uses EBITDA and EBITDAre as measures of its operating performance and not as measures of liquidity.

EBITDA and EBITDAre do not include all items of revenue and expense included in net income, they do not represent cash generated from operating activities and they are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, the Company’s computation of EBITDA and EBITDAre may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs.

The Company calculates its net debt as its gross debt (defined as total debt plus net deferred financing costs on its secured borrowings) less cash and cash equivalents and restricted cash available for future investment. The Company believes excluding cash and cash equivalents and restricted cash available for future investment from gross debt, all of which could be used to repay debt, provides an estimate of the net contractual amount of borrowed capital to be repaid, which it believes is a beneficial disclosure to investors and analysts.

The Company computes NOI as total revenues less property expenses. NOI excludes all other items of expense and income included in the financial statements in calculating net income or loss. Cash NOI further excludes non-cash items included in total revenues and property expenses, such as straight-line rental revenue and other amortization and non-cash charges. The Company believes NOI and Cash NOI provide useful information because they reflect only those revenue and expense items that are incurred at the property level and present such items on an unlevered basis.

NOI and Cash NOI are not measures of financial performance under GAAP. You should not consider the Company’s NOI and Cash NOI as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. Additionally, the Company’s computation of NOI and Cash NOI may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs.

Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI

The Company further adjusts EBITDAre, NOI and Cash NOI i) based on an estimate calculated as if all investment and disposition activity that took place during the quarter had occurred on the first day of the quarter, ii) to exclude certain GAAP income and expense amounts that the Company believes are infrequent and unusual in nature and iii) to eliminate the impact of lease termination or loan prepayment fees and contingent rental revenue from its tenants which is subject to sales thresholds specified in the lease. The Company then annualizes these estimates for the current quarter by multiplying them by four, which it believes provides a meaningful estimate of the Company’s current run rate for all investments as of the end of the current quarter. You should not unduly rely on these measures, as they are based on assumptions and estimates that may prove to be inaccurate. The Company’s actual reported EBITDAre, NOI and Cash NOI for future periods may be significantly less than these estimates of current run rates.

Cash ABR means annualized contractually specified cash base rent in effect as of the end of the current quarter for all of the Company’s leases (including those accounted for as direct financing leases) commenced as of that date and annualized cash interest on its mortgage loans receivable as of that date.

Cash Cap Rate means annualized contractually specified cash base rent for the first full month after investment or disposition divided by the purchase or sale price, as applicable, for the property.

GAAP Cap Rate means annualized rental income computed in accordance with GAAP for the first full month after investment divided by the purchase price, as applicable, for the property.

Rent coverage ratio means the ratio of tenant-reported or, when unavailable, management’s estimate based on tenant-reported financial information, annual EBITDA and cash rent attributable to the leased property (or properties, in the case of a master lease) to the annualized base rental obligation as of a specified date.

Essential Properties Realty Trust, Inc. and the Essential Properties Realty Trust REIT are not affiliated with or sponsored by Griffin Capital Essential Asset Operating Partnership, L.P. or the Griffin Capital Essential Asset REIT, information about which can be obtained at (https://www.gcear.com).

Essential Properties Realty Trust, Inc.

Consolidated Statements of Operations


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except share and per share data)	2022		2021		2022		2021
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues:
Rental revenue1,2	$	66,525	$	54,929	$	199,726	$	153,511
Interest on loans and direct financing lease receivables	3,719		4,574		11,490		11,558
Other revenue	419		98		1,014		150
Total revenues	70,663		59,601		212,230		165,219

Expenses:
General and administrative	7,868		5,596		22,956		18,497
Property expenses3	830		1,358		2,668		3,946
Depreciation and amortization	22,054		17,355		64,441		50,185
Provision for impairment of real estate	349		—		10,541		6,120
Change in provision for loan losses	(30)		16		136		(112)
Total expenses	31,071		24,325		100,742		78,636
Other operating income:
Gain on dispositions of real estate, net	6,329		1,343		18,082		8,841
Income from operations	45,921		36,619		129,570		95,424
Other (expense)/income:
Loss on debt extinguishment4	—		—		(2,138)		(4,461)
Interest expense	(9,892)		(8,955)		(28,242)		(24,444)
Interest income	752		37		800		74
Income before income tax expense	36,781		27,701		99,990		66,593
Income tax expense	190		55		769		172
Net income	36,591		27,646		99,221		66,421
Net income attributable to non-controlling interests	(163)		(139)		(441)		(335)
Net income attributable to stockholders	$	36,428	$	27,507	$	98,780	$	66,086

Basic weighted-average shares outstanding	139,068,188		119,230,645		132,438,157		114,223,586
Basic net income per share	$	0.26	$	0.23	$	0.74	$	0.58

Diluted weighted-average shares outstanding	139,890,693		120,298,680		133,321,987		115,339,656
Diluted net income per share	$	0.26	$	0.23	$	0.74	$	0.57

1.Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $210, $233 ,$526 and $464 for the three and nine months ended September 30, 2022 and 2021, respectively.

2.Includes reimbursable income from the Company’s tenants of $530, $399, $1,584 and $852 for the three and nine months ended September 30, 2022 and 2021, respectively.

3.Includes reimbursable expenses from the Company’s tenants $530, $399, $1,584 and $852 for the three and nine months ended September 30, 2022 and 2021, respectively.

4.During the nine months ended September 30, 2022, includes debt extinguishment costs associated with the Company's restructuring of its credit and term loan facilities and, during the nine months ended September 30, 2021, includes debt extinguishment costs associated with the full repayment of the Company's remaining secured debt.

Essential Properties Realty Trust, Inc.

Consolidated Balance Sheets


(in thousands, expect share and per share amounts)	September 30, 2022		December 31, 2021
	(Unaudited)		(Audited)
ASSETS
Investments:
Real estate investments, at cost:
Land and improvements	$	1,163,660	$	1,004,154
Building and improvements	2,305,254		2,035,919
Lease incentive	12,496		13,950
Construction in progress	29,973		8,858
Intangible lease assets	89,393		87,959
Total real estate investments, at cost	3,600,776		3,150,840
Less: accumulated depreciation and amortization	(259,092)		(200,152)
Total real estate investments, net	3,341,684		2,950,688
Loans and direct financing lease receivables, net	204,742		189,287
Real estate investments held for sale, net	11,907		15,434
Net investments	3,558,333		3,155,409
Cash and cash equivalents	136,303		59,758
Restricted cash	7,925		—
Straight-line rent receivable, net	74,583		57,990
Derivative assets	50,670		—
Rent receivables, prepaid expenses and other assets, net	25,731		25,638
Total assets	$	3,853,545	$	3,298,795

LIABILITIES AND EQUITY

Unsecured term loans, net of deferred financing costs	$	875,239	$	626,983
Senior unsecured notes, net	395,145		394,723
Revolving credit facility	—		144,000
Intangible lease liabilities, net	11,909		12,693
Dividend payable	38,682		32,610
Derivative liabilities	13		11,838
Accrued liabilities and other payables	28,855		32,145
Total liabilities	1,349,843		1,254,992
Commitments and contingencies	—		—
Stockholders' equity:
Preferred stock, $0.01 par value; 150,000,000 authorized; none issued and outstanding as of September 30, 2022 and December 31, 2021	—		—
Common stock, $0.01 par value; 500,000,000 authorized; 142,377,215 and 124,649,053 issued and outstanding as of September 30, 2022 and December 31, 2021, respectively	1,424		1,246
Additional paid-in capital	2,561,124		2,151,088
Distributions in excess of cumulative earnings	(113,275)		(100,982)
Accumulated other comprehensive loss	46,870		(14,786)
Total stockholders' equity	2,496,143		2,036,566
Non-controlling interests	7,559		7,237
Total equity	2,503,702		2,043,803
Total liabilities and equity	$	3,853,545	$	3,298,795

Essential Properties Realty Trust, Inc.

Reconciliation of Non-GAAP Financial Measures


	Three months ended September 30,				Nine months ended September 30,
(unaudited, in thousands except per share amounts)	2022		2021		2022		2021
Net income	$	36,591	$	27,646	$	99,221	$	66,421
Depreciation and amortization of real estate	22,028		17,329		64,363		50,108
Provision for impairment of real estate	349		—		10,541		6,120
Gain on dispositions of real estate, net	(6,329)		(1,343)		(18,082)		(8,841)
Funds from Operations	52,639		43,632		156,043		113,808
Other non-recurring expenses1	250		—		2,388		4,461
Core Funds from Operations	52,889		43,632		158,431		118,269
Adjustments:
Straight-line rental revenue, net	(3,810)		(5,086)		(16,610)		(13,950)
Non-cash interest expense	645		488		1,995		1,407
Non-cash compensation expense	2,233		1,103		7,257		4,554
Other amortization expense	1,775		68		2,177		2,487
Other non-cash charges	(34)		15		126		(118)
Capitalized interest expense	(236)		(19)		(363)		(55)

Adjusted Funds from Operations	$	53,462	$	40,201	$	153,013	$	112,594

Net income per share2:
Basic	$	0.26	$	0.23	$	0.74	$	0.58
Diluted	$	0.26	$	0.23	$	0.74	$	0.57
FFO per share2:
Basic	$	0.38	$	0.36	$	1.17	$	0.99
Diluted	$	0.38	$	0.36	$	1.17	$	0.98
Core FFO per share2:
Basic	$	0.38	$	0.36	$	1.19	$	1.03
Diluted	$	0.38	$	0.36	$	1.19	$	1.02
AFFO per share2:
Basic	$	0.38	$	0.33	$	1.15	$	0.98
Diluted	$	0.38	$	0.33	$	1.15	$	0.97

1.Includes $0.2 million of fees incurred in conjunction with the August 2022 amendment to our 2027 Term Loan during the three and nine months ended September 30, 2022, our $2.1 million loss on debt extinguishment during the nine months ended September 30, 2022 and our $4.5 million of loss on debt extinguishment during the nine months ended September 30, 2021.

2.Calculations exclude $93, $61, $280 and $249 from the numerator for the three and nine months ended September 30, 2022 and 2021, respectively, related to dividends paid on unvested restricted share awards and restricted share units.

Essential Properties Realty Trust, Inc.

Reconciliation of Non-GAAP Financial Measures


(in thousands)	Three months ended September 30, 2022
Net income	$	36,591
Depreciation and amortization	22,054
Interest expense	9,892
Interest income	(752)
Income tax expense	190
EBITDA	67,975
Provision for impairment of real estate	349
Gain on dispositions of real estate, net	(6,329)
EBITDAre	61,995
Adjustment for current quarter re-leasing, acquisition and disposition activity1	2,844
Adjustment to exclude other non-core or non-recurring activity2	134
Adjustment to exclude termination/prepayment fees and certain percentage rent3	(429)
Adjusted EBITDAre - Current Estimated Run Rate	64,544
General and administrative expense	7,618
Adjusted net operating income ("NOI")	72,162
Straight-line rental revenue, net1	(3,055)
Other amortization expense	193
Adjusted Cash NOI	$	69,300

Annualized EBITDAre	$	247,980
Annualized Adjusted EBITDAre	$	258,176
Annualized Adjusted NOI	$	288,648
Annualized Adjusted Cash NOI	$	277,200

1.These adjustments are made to reflect EBITDAre, NOI and Cash NOI as if all investments, dispositions and re-leasing activity completed during the three months ended September 30, 2022 had occurred on July 1, 2022.

2.Adjustment is made to exclude non-core expenses added back to compute Core FFO, our provision for loan losses and to eliminate the impact of seasonal fluctuation in certain non-cash compensation expense recorded in the period.

3.Adjustment excludes lease termination or loan prepayment fees and contingent rent (based on a percentage of the tenant's gross sales at the leased property) where payment is subject to exceeding a sales threshold specified in the lease, if any.

Essential Properties Realty Trust, Inc.

Reconciliation of Non-GAAP Financial Measures


(dollars in thousands, except share and per share amounts)	September 30, 2022			Rate	Wtd. Avg. Maturity





Unsecured debt:
2024 term loan1	$	200,000		2.9%	1.5 years
2027 term loan1	430,000			2.4%	4.4 years
2028 term loan1,2	250,000			4.4%	5.3 years
Senior unsecured notes	400,000			3.1%	8.8 years
Revolving credit facility3	—			—%	3.4 years
Total unsecured debt	1,280,000			3.1%	5.5 years
Gross debt	1,280,000
Less: cash & cash equivalents	(136,303)
Less: restricted cash available for future investment	(7,925)
Net debt	1,135,772

Equity:
Preferred stock	—
Common stock & OP units (142,931,062 shares @ $19.45/share as of 9/30/22)4	2,780,009
Total equity	2,780,009
Total enterprise value ("TEV")	$	3,915,781









Net Debt / TEV	29.0		%
Gross Debt / Undepreciated Gross Assets	31.1		%
Net Debt / Annualized Adjusted EBITDAre	4.4x

1.Rates presented for the Company's term loans are fixed at the stated rates after giving effect to its interest rate swaps, applicable margin of 85bps and SOFR premium of 10bps.

2.The Company's 2028 term loan provides for $400 million in available principal and the Company drew $250 million of this principal in July 2022. Subsequent to quarter end, the Company drew the remaining $150 million in October 2022, $100 million of which bears interest at Term SOFR plus applicable margin of 85bps and SOFR premium of 10bps.

3.The Company's revolving credit facility provides a maximum aggregate initial original principal amount of up to $600 million and includes an accordion feature to increase, subject to certain conditions, the maximum availability of the facility by up to $600 million. Borrowings bear interest at Term SOFR plus applicable margin of 77.5bps and SOFR premium of 10bps.

4.Common equity & units as of September 30, 2022, based on 142,377,215 common shares outstanding (including unvested restricted share awards) and 553,847 OP units held by non-controlling interests.

Essential Properties Realty Trust, Inc.

Daniel Donlan, Senior Vice President, Capital Markets

info@essentialproperties.com

Source: Essential Properties Realty Trust, Inc.

Supplemental Operating & Financial Data Third Quarter Ended September 30, 2022

Supplemental Financial and Operating Information | As of September 30, 20221 Table of Contents Financial Summary Consolidated Statements of Operations 2 Funds from Operations and Adjusted Funds from Operations 3 Consolidated Balance Sheets 4 GAAP Reconciliations to EBITDAre, GAAP NOI and Cash NOI 5 Market Capitalization, Debt Summary and Leverage Metrics 6 Net Investment Activity Investment Summary 7 Disposition Summary 8 Portfolio Summary Portfolio Highlights 9 Tenant and Industry Diversification 10 Portfolio Health 11 Leasing Summary Leasing Expiration Schedule, Leasing Activity and Statistics 12 Same-Store Analysis 13 Lease Escalations 14 Glossary 15-17

Supplemental Financial and Operating Information | As of September 30, 20222 l t l i ci l r ti I f r ti | s f t r , 2 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $210, $233, $526 and $464 for the three and nine months ended September 30, 2022 and 2021, respectively. 2. Includes reimbursable income from the Company’s tenants of $530, $399, $1,584 and $852 for the three and nine months ended September 30, 2022 and 2021, respectively. 3. Includes reimbursable expenses from the Company’s tenants of $530, $399, $1,584, and $852 for the three and nine months ended September 30, 2022 and 2021, respectively. 4. During the nine months ended September 30, 2022, includes debt extinguishment costs associated with the Company's restructuring of its credit and term loan facilities and, during the three and nine months ended September 30, 2021, includes debt extinguishment costs associated with the full repayment of the Company's remaining secured debt. Financial Summary Consolidated Statements of Operations Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Rental revenue1,2 $ 66,525 $ 54,929 $ 199,726 $ 153,511 Interest on loans and direct financing lease receivables 3,719 4,574 11,490 11,558 Other revenue, net 419 98 1,014 150 Total revenues 70,663 59,601 212,230 165,219 Expenses: General and administrative 7,868 5,596 22,956 18,497 Property expenses3 830 1,358 2,668 3,946 Depreciation and amortization 22,054 17,355 64,441 50,185 Provision for impairment of real estate 349 — 10,541 6,120 Change in provision for loan losses (30) 16 136 (112) Total expenses 31,071 24,325 100,742 78,636 Other operating income: Gain on dispositions of real estate, net 6,329 1,343 18,082 8,841 Income from operations 45,921 36,619 129,570 95,424 Other (expense)/income: Loss on debt extinguishment4 — — (2,138) (4,461) Interest expense (9,892) (8,955) (28,242) (24,444) Interest income 752 37 800 74 Income before income tax expense 36,781 27,701 99,990 66,593 Income tax expense 190 55 769 172 Net income 36,591 27,646 99,221 66,421 Net income attributable to non-controlling interests (163) (139) (441) (335) Net income attributable to stockholders $ 36,428 $ 27,507 $ 98,780 $ 66,086 Basic weighted-average shares outstanding 139,068,188 119,230,645 132,438,157 114,223,586 Basic net income per share $ 0.26 $ 0.23 $ 0.74 $ 0.58 Diluted weighted-average shares outstanding 139,890,693 120,298,680 133,321,987 115,339,656 Diluted net income per share $ 0.26 $ 0.23 $ 0.74 $ 0.57

Supplemental Financial and Operating Information | As of September 30, 20223 l t l i ci l r ti I f r ti | s f t r , 3 1. During the nine months ended September 30, 2022, includes debt extinguishment costs associated with the Company's restructuring of its credit and term loan facilities and, during the three and nine months ended September 30, 2021, includes debt extinguishment costs associated with the full repayment of the Company's remaining secured debt. 2. Calculations exclude $93, $61, $280 and $249 from the numerator for the three and nine months ended September 30, 2022 and 2021, respectively, related to dividends paid on unvested restricted share awards and restricted share units. Financial Summary Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) Three months ended September 30, Nine months ended September 30, (unaudited, in thousands except per share amounts) 2022 2021 2022 2021 Net income $ 36,591 $ 27,646 $ 99,221 $ 66,421 Depreciation and amortization of real estate 22,028 17,329 64,363 50,108 Provision for impairment of real estate 349 — 10,541 6,120 Gain on dispositions of real estate, net (6,329) (1,343) (18,082) (8,841) Funds from Operations 52,639 43,632 156,043 113,808 Other non-recurring expenses1,2 250 — 2,388 4,461 Core Funds from Operations 52,889 43,632 158,431 118,269 Adjustments: Straight-line rental revenue, net (3,810) (5,086) (16,610) (13,950) Non-cash interest expense 645 488 1,995 1,407 Non-cash compensation expense 2,233 1,103 7,257 4,554 Other amortization expense 1,775 68 2,177 2,487 Other non-cash charges (34) 15 126 (118) Capitalized interest expense (236) (19) (363) (55) Adjusted Funds from Operations $ 53,462 $ 40,201 $ 153,013 $ 112,594 Net income per share3: Basic $ 0.26 $ 0.23 $ 0.74 $ 0.58 Diluted $ 0.26 $ 0.23 $ 0.74 $ 0.57 FFO per share3: Basic $ 0.38 $ 0.36 $ 1.17 $ 0.99 Diluted $ 0.38 $ 0.36 $ 1.17 $ 0.98 Core FFO per share3: Basic $ 0.38 $ 0.36 $ 1.19 $ 1.03 Diluted $ 0.38 $ 0.36 $ 1.19 $ 1.02 AFFO per share3: Basic $ 0.38 $ 0.33 $ 1.15 $ 0.98 Diluted $ 0.38 $ 0.33 $ 1.15 $ 0.97

Supplemental Financial and Operating Information | As of September 30, 20224 l t l i ci l r ti I f r ti | s f t r , 4 Financial Summary Consolidated Balance Sheets (in thousands, except share and per share amounts) September 30, 2022 December 31, 2021 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 1,163,660 $ 1,004,154 Building and improvements 2,305,254 2,035,919 Lease incentive 12,496 13,950 Construction in progress 29,973 8,858 Intangible lease assets 89,393 87,959 Total real estate investments, at cost 3,600,776 3,150,840 Less: accumulated depreciation and amortization (259,092) (200,152) Total real estate investments, net 3,341,684 2,950,688 Loans and direct financing lease receivables, net 204,742 189,287 Real estate investments held for sale, net 11,907 15,434 Net investments 3,558,333 3,155,409 Cash and cash equivalents 136,303 59,758 Restricted cash 7,925 — Straight-line rent receivable, net 74,583 57,990 Derivative assets 50,670 — Rent receivables, prepaid expenses and other assets, net 25,731 25,638 Total assets $ 3,853,545 $ 3,298,795 LIABILITIES AND EQUITY Unsecured term loans, net of deferred financing costs 875,239 626,983 Senior unsecured notes, net 395,145 — Revolving credit facility — 144,000 Intangible lease liabilities, net 11,909 12,693 Dividend payable 38,682 32,610 Derivative liabilities 13 11,838 Accrued liabilities and other payables 28,855 32,145 Total liabilities 1,349,843 1,254,992 Commitments and contingencies — — Stockholders' equity: Preferred stock, $0.01 par value; 150,000,000 authorized; none issued and outstanding as of 9/30/22 and 12/31/21 — — Common stock, $0.01 par value; 500,000,000 authorized; 142,377,215 and 124,649,053 issued and outstanding as of 9/30/22 and 12/31/21, respectively 1,424 1,246 Additional paid-in capital 2,561,124 2,151,088 Distributions in excess of cumulative earnings (113,275) (100,982) Accumulated other comprehensive loss 46,870 (14,786) Total stockholders' equity 2,496,143 2,036,566 Non-controlling interests 7,559 7,237 Total equity 2,503,702 2,043,803 Total liabilities and equity $ 3,853,545 $ 3,298,795

Supplemental Financial and Operating Information | As of September 30, 20225 l t l i ci l r ti I f r ti | s f t r , 5 Financial Summary GAAP Reconciliations to EBITDAre, GAAP NOI, Cash NOI and Estimated Run Rate Metrics 1. These adjustments are made to reflect EBITDAre, NOI and Cash NOI as if all re-leasing activity, investments in and dispositions of real estate made during the three months ended September 30, 2022 had occurred on July 1, 2022. 2. Adjustment is made to exclude non-core expenses added back to compute Core FFO, our provision for loan losses and to eliminate the impact of seasonal fluctuation in certain non-cash compensation expense recorded in the period. 3. Adjustment excludes contingent rent (based on a percentage of the tenant's gross sales at the leased property) where payment is subject to exceeding a sales threshold specified in the lease and lease termination or loan prepayment fees, if any. Three Months Ended (unaudited, in thousands) September 30, 2022 Net income $ 36,591 Depreciation and amortization 22,054 Interest expense 9,892 Interest income (752) Income tax expense 190 EBITDA 67,975 Provision for impairment of real estate 349 Gain on dispositions of real estate, net (6,329) EBITDAre 61,995 Adjustment for current quarter re-leasing, acquisition and disposition activity1 2,844 Adjustment to exclude other non-core and non-recurring activity2 134 Adjustment to exclude termination/prepayment fees and certain percentage rent3 (429) Adjusted EBITDAre - Current Estimated Run Rate 64,544 General and administrative 7,618 Adjusted net operating income ("NOI") 72,162 Straight-line rental revenue, net1 (3,055) Other amortization expense 193 Adjusted Cash NOI $ 69,300 Annualized EBITDAre $ 247,980 Annualized Adjusted EBITDAre $ 258,176 Annualized Adjusted NOI $ 288,648 Annualized Adjusted Cash NOI $ 277,200

Supplemental Financial and Operating Information | As of September 30, 20226 l t l i ci l r ti I f r ti | s f t r , 6 Financial Summary Market Capitalization, Debt Summary and Leverage Metrics 1. Rates presented for our term loans are fixed at the stated rates after giving effect to our interest rate swaps, applicable margin of 85bps and SOFR premium of 10bps. 2. Our 2028 term loan provides for $400 million in available principal and we drew $250 million of this principal in July 2022. Subsequent to quarter end, we drew the remaining $150 million in October 2022, $100 million of which bears interest at Term SOFR plus applicable margin of 85bps and SOFR premium of 10bps. 3. Our revolving credit facility provides a maximum aggregate initial original principal amount of up to $600 million and includes an accordion feature to increase, subject to certain conditions, the maximum availability of the facility by up to $600 million. Borrowings bear interest at Term SOFR plus applicable margin of 77.5bps and SOFR premium of 10bps. 4. Common equity & units as of September 30, 2022, based on 142,377,215 common shares outstanding (including unvested restricted share awards) and 553,847 OP units held by non-controlling interests. (dollars in thousands, except share and per share amounts) September 30, 2022 Rate Wtd. Avg. Maturity Unsecured debt: April 2024 term loan1 $ 200,000 2.9% 1.5 years February 2027 term loan1 430,000 2.4% 4.4 years January 2028 term loan1,2 250,000 4.4% 5.3 years Senior unsecured notes due July 2031 400,000 3.1% 8.8 years Revolving credit facility3 — —% 3.4 years Total unsecured debt $ 1,280,000 3.1% 5.5 years Gross debt $ 1,280,000 Less: cash & cash equivalents (136,303) Less: restricted cash available for future investment (7,925) Net debt $ 1,135,772 Equity: Preferred stock $ — Common stock & OP units (142,931,062 shares @ $19.45/share as of 9/30/22)4 2,780,009 Total equity $ 2,780,009 Total enterprise value ("TEV") $ 3,915,781 Net Debt / TEV 29.0% Gross Debt / Undepreciated Gross Assets 31.1% Net Debt / Annualized Adjusted EBITDAre 4.4x

Supplemental Financial and Operating Information | As of September 30, 20227 Net Investment Activity Investment Summary 1. Includes investments in mortgage loans receivable. 2. Cash ABR for the first full month after the investment divided by the gross investment in the property plus transaction costs. 3. GAAP rent and interest income for the first twelve months after the investment divided by the gross investment in the property plus transaction costs. 4. As a percentage of cash ABR for the quarter. 5. Includes investments in mortgage loan receivables collateralized by more than one property. 6. Includes investments in mortgage loans receivable made in support of sale-leaseback transactions. Investments1 4Q’20 1Q’21 2Q'21 3Q'21 4Q'21 1Q’22 2Q’22 3Q’22 Number of Transactions 19 33 22 34 31 55 23 27 Property Count 50 108 74 94 85 96 105 40 Average Investment per Unit (in 000s) $2,866 $2,218 $2,650 $2,354 $2,676 $3,230 $2,187 $3,750 Cash Cap Rates2 7.1% 7.1% 7.0% 7.1% 7.0% 6.9% 7.0% 7.1% GAAP Cap Rates3 7.9% 7.7% 7.9% 7.8% 7.9% 7.8% 7.8% 8.2% Weighted Average Lease Escalation 1.4% 1.8% 1.4% 1.6% 1.6% 1.4% 1.5% 1.6% Master Lease %4,5 79% 89% 79% 83% 80% 59% 83% 68% Sale-Leaseback %4,6 92% 88% 85% 88% 84% 96% 100% 89% Existing Relationship %4 98% 89% 81% 97% 81% 89% 83% 94% % of Financial Reporting4 100% 100% 100% 100% 100% 98% 100% 100% Rent Coverage Ratio 2.8x 3.6x 3.0x 2.7x 2.8x 3.0x 3.3x 4.4x Lease Term Years 17.6 16.3 16.1 13.5 16.4 16.3 15.0 16.5 $244,078 $197,816 $223,186 $230,755 $322,203 $237,795 $175,738 $195,454 $0 $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 $320,000 $360,000 In ve st m en t Ac tiv ity ($ 00 0s )

Supplemental Financial and Operating Information | As of September 30, 20228 Net Investment Activity Disposition Summary 1. Includes the impact of transaction costs. 2. Gains/(losses) based on our initial purchase price. 3. Cash ABR at time of sale divided by gross sale price (excluding transaction costs) for the property. 4. Property count excludes dispositions of undeveloped land parcels or dispositions where only a portion of the owned parcel is sold. 5. Excludes properties sold pursuant to an existing tenant purchase option. Dispositions 4Q’20 1Q’21 2Q'21 3Q'21 4Q'21 1Q’22 2Q’22 3Q’22 Realized Gain/(Loss)1,2 (10.2%) 4.5% (7.3%) 29.8%5 7.5% 0.4% 38.6% 11.1% Cash Cap Rate on Leased Assets3 7.4% 7.1% 7.1% 6.5%5 6.0% 7.1%5 6.2% 6.2%5 Leased Properties Sold4 21 15 6 11 2 6 8 12 Vacant Properties Sold4 2 1 1 -- -- -- -- -- Rent Coverage Ratio 2.3x 1.8x 1.8x 1.2x 0.0x 2.5x5 1.1x 1.2x $39,042 $25,197 $19,578 $10,089 $4,466 $18,443 $26,091 $35,513 $0 $10,000 $20,000 $30,000 $40,000 D is po si tio n Ac tiv ity ($ 00 0s )1

Supplemental Financial and Operating Information | As of September 30, 20229 Portfolio Summary Portfolio Highlights Investment Properties (#)1 1,572 Square Footage (mm) 14.8 Tenants (#) 329 Concepts (#) 486 Industries (#) 16 States (#) 48 Weighted Average Remaining Lease Term (Years) 14.0 Triple-Net Leases (% of Cash ABR) 94.5% Master Leases (% of Cash ABR) 64.2% Sale-Leaseback (% of Cash ABR)2,3 86.8% Unit-Level Rent Coverage 4.2x Unit-Level Financial Reporting (% of Cash ABR) 98.5% Leased (%) 99.8% Top 10 Tenants (% of Cash ABR) 19.4% Average Investment Per Property ($mm) $2.4 Total Cash ABR ($mm) $277.3 1. Includes 146 properties that secure mortgage loans receivable. 2. Exclusive of our Initial Portfolio. 3. Includes investments in mortgage loans receivable made in support of sale-leaseback transactions. As of September 30, 2022

Supplemental Financial and Operating Information | As of September 30, 202210 Portfolio Summary Tenant and Industry Diversification Top 10 Tenants1 Properties2 % of Cash ABR 34 3.7% 6 2.0% 75 1.9% 23 1.8% 16 1.8% 5 1.7% 9 1.7% 17 1.6% 13 1.6% 6 1.6% Top 10 Tenants 204 19.4% Total 1,572 100.0% Top 10 Tenants Diversification by Industry 1. Represents tenant, guarantor or parent company. 2. Property count includes 146 properties that secure mortgage loans receivable and excludes three vacant properties. 3. Calculation excludes properties with no annualized base rent and properties under construction. Tenant Industry Type of Business Cash ABR ($'000s) % of Cash ABR # of Properties2 Building SqFt Rent Per SqFt3 Early Childhood Education Service $ 37,507 13.5% 169 1,774,859 $ 21.00 Quick Service Service 34,956 12.6% 402 1,107,012 31.55 Medical / Dental Service 31,744 11.4% 186 1,344,356 23.61 Car Washes Service 30,606 11.0% 105 562,678 54.39 Automotive Service Service 23,481 8.5% 179 1,115,089 20.84 Casual Dining Service 17,809 6.4% 97 607,702 28.41 Convenience Stores Service 15,348 5.5% 136 518,011 30.01 Equipment Rental and Sales Service 13,498 4.9% 51 929,605 13.82 Other Services Service 5,589 2.0% 25 291,352 19.18 Pet Care Services Service 4,990 1.8% 46 371,069 14.40 Family Dining Service 4,717 1.7% 32 179,942 26.21 Service Subtotal $ 220,245 79.4% 1,428 8,801,673 $ 24.95 Entertainment Experience 21,604 7.8% 39 1,103,950 20.51 Health and Fitness Experience 11,894 4.3% 30 1,112,394 9.92 Movie Theatres Experience 4,301 1.6% 6 293,206 14.67 Experience Subtotal $ 37,799 13.6% 75 2,509,550 $ 15.05 Grocery Retail 9,725 3.5% 28 1,341,200 7.25 Home Furnishings Retail 2,048 0.7% 4 217,339 9.42 Retail Subtotal $ 11,774 4.2% 32 1,558,539 $ 7.55 Building Materials Industrial 3,855 1.4% 23 1,257,017 3.07 Other Industrial Industrial 3,604 1.3% 11 686,724 5.25 Industrial Subtotal $ 7,459 2.7% 34 1,943,741 $ 3.84 Total $ 277,277 100.0% 1,569 14,813,503 $ 18.66

Supplemental Financial and Operating Information | As of September 30, 202211 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 20 22 20 23 20 24 20 25 20 26 20 27 20 28 20 29 20 30 20 31 20 32 20 33 20 34 20 35 20 36 20 37 20 38 Th er ea fte r % o f C as h AB R < 1.00x 1.00 to 1.49x 1.50 to 1.99x ≥ 2.00x NR 33.6% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% C C C + B- B B+ BB - BB BB + BB B- BB B BB B+ A- A A+ AA - % o f C as h AB R < 1.00x 1.00 to 1.49x 1.50 to 1.99x ≥ 2.00x NR Portfolio Summary Portfolio Health Tenant Financial Reporting Requirements % of Cash ABR by Unit-Level Coverage Tranche1 Unit-Level Coverage by Lease ExpirationUnit-Level Coverage by Tenant Credit2 Note: ‘NR’ means not reported. 1. Certain tenants, whose leases do not require unit-level financial reporting, provide the Company with unit-level financial information. The data shown includes unit-level coverage for these leases. 2. The chart illustrates the portions of annualized base rent as of September 30, 2022, attributable to leases with tenants having specified implied credit ratings based on their Moody’s RiskCalc scores. Moody’s equates the EDF scores generated using RiskCalc with a corresponding credit rating. Reporting Requirements % of Cash ABR Unit-Level Financial Information 98.5% Corporate-Level Financial Reporting 98.8% Both Unit-Level and Corporate-Level Financial Information 97.9% No Financial Information 1.0% Rent Coverage Ratio (x) Rent Coverage Ratio (x) ≥ 2.00x 73.7%Not Reported 1.4% 1.50x to 1.99x 13.7% 1.00x to 1.49x 7.5% < 1.00x 3.7%

Supplemental Financial and Operating Information | As of September 30, 202212 Cash ABR % of # of Wgt. Avg. Lease Terminated Leases Re-Leased Total Year1 ($’000)s Cash ABR Properties2 Coverage3 $(000)s Renewals Without Vacancy After Vacancy Leasing 2022 280 0.1% 4 2.1x Prior Cash ABR $ 212 $ 2,971 $ 1,473 $ 4,655 2023 1,436 0.5% 15 2.9x New Cash ABR4 212 2,756 703 3,671 2024 4,881 1.8% 47 6.0x Recovery Rate 100.0% 92.8% 47.7% 78.9% 2025 2,246 0.8% 19 2.0x Number of Leases 1 11 3 15 2026 2,736 1.0% 17 4.4x Average Months Vacant - - 4.8 - 2027 6,899 2.5% 68 2.6x % of Total Cash ABR5 0.1% 1.0% 0.3% 1.3% 2028 3,919 1.4% 12 2.2x 2029 5,665 2.0% 78 4.1x 2030 4,482 1.6% 49 6.7x 2031 13,735 5.0% 80 2.8x 2032 11,080 4.0% 45 3.8x Vacant Properties at June 30, 2022 2 2033 8,134 2.9% 27 3.4x Expiration Activity — 2034 28,559 10.3% 206 5.9x Properties Subject to Lease Termination +4 2035 14,628 5.3% 99 5.1x Vacant Property Sales — 2036 42,406 15.3% 182 3.4x Properties Leased -3 2037 21,452 7.7% 105 10.7x Vacant Properties at September 30, 2022 3 2038 11,530 4.2% 78 2.5x 2039 20,726 7.5% 102 3.6x 2040 32,408 11.7% 151 2.6x 2041 22,661 8.2% 115 2.4x Thereafter 17,413 6.3% 70 3.3x Total $277,277 100.0% 1,569 4.2x Leasing Summary Leasing Expiration Schedule, Leasing Activity and Statistics 1. Expiration year of contracts in place as of September 30, 2022, excluding any tenant option renewal periods that have not been exercised. 2. Property count includes 146 properties that secure mortgage loans receivable but excludes three vacant properties. 3. Weighted by cash ABR as of September 30, 2022. 4. New cash ABR reflects full lease rental rate without giving effect to free rent or discounted rent periods. 5. New cash ABR divided by total cash ABR as of September 30, 2022. Annual Lease Expiration by Cash ABR Leasing Activity – Trailing 12 Months Leasing Statistics

Supplemental Financial and Operating Information | As of September 30, 202213 Leasing Summary Same-Store Analysis Same-Store Portfolio: All properties owned, excluding new sites under construction, for the entire same-store measurement period, which is June 30, 2021, through September 30, 2022. The same-store portfolio for 3Q’22 is comprised of 1,283 properties and represents 77% of our total portfolio as measured by contractual cash rent and interest divided by our cash ABR at September 30, 2022. Contractual Cash Rent: The amount of cash rent and interest our tenants are contractually obligated to pay per the in-place lease or mortgage as of September 30, 2022; excludes 1.) percentage rent that is subject to sales breakpoints per the lease and 2.) redevelopment properties in a free rent period. Defined Terms Same-Store Portfolio Performance Contractual Cash Rent ($000s) % Type of Business 3Q’22 3Q’21 Change Service $ 44,208 $ 43,521 1.6% Experience 5,801 5,619 3.2% Retail 2,161 2,133 1.3% Industrial 964 950 1.4% Total Same-Store Rent $ 53,134 $ 52,223 1.7%

Supplemental Financial and Operating Information | As of September 30, 202214 Leasing Summary Lease Escalations 1. Based on cash ABR as of September 30, 2022. 2. Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occur annually. For leases in which rent escalates by the greater of a stated fixed percentage or CPI, we have assumed an escalation equal to the stated fixed percentage in the lease. As any future increase in CPI is unknowable at this time, we have not included an increase in the rent pursuant to these leases in the weighted average annual escalation rate presented. Lease Escalation Frequency Lease Escalation Type Weighted Average Lease Escalation Frequency % of Cash ABR Annual Escalation Rate1,2 Annually 79.1% 1.6% Every 2 years 1.4 1.5 Every 3 years 0.3 0.0 Every 4 years 0.3 1.0 Every 5 years 11.8 1.7 Other escalation frequencies 5.3 1.1 Flat 1.9 0.0 Total / Weighted Average 100.0% 1.6% Contractual Fixed 95.0% CPI 3.1% Flat 1.9%

Supplemental Financial and Operating Information | As of September 30, 202215 Glossary Supplemental Reporting Measures FFO, Core FFO and AFFO Our reported results are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We also disclose funds from operations (“FFO”), core funds from operations (“Core FFO”) and adjusted funds from operations (“AFFO”), each of which is a non-GAAP financial measures. We believe these non-GAAP financial measures are industry measures used by analysts and investors to compare the operating performance of REITs. We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as GAAP net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO is used by management, and may be useful to investors and analysts, to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains and losses on sales (which are dependent on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions). We compute Core FFO by adjusting FFO, as defined by NAREIT, to exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in nature and/or not related to our core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Core FFO provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. Core FFO is used by management in evaluating the performance of our core business operations. Items included in calculating FFO that may be excluded in calculating Core FFO include items like certain transaction related gains, losses, income or expense or other non-core amounts as they occur. To derive AFFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to certain items that we believe are not indicative of our operating performance, including straight- line rental revenue, non-cash interest expense, non-cash compensation expense, other amortization and non-cash charges, capitalized interest expense and transaction costs. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. We believe that AFFO is an additional useful supplemental measure for investors to consider to assess our operating performance without the distortions created by non-cash and certain other revenues and expenses. FFO, Core FFO and AFFO do not include all items of revenue and expense included in net income, they do not represent cash generated from operating activities, and they are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, our computation of FFO, Core FFO and AFFO may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs.

Supplemental Financial and Operating Information | As of September 30, 202216 Glossary Supplemental Reporting Measures We also present our earnings before interest, taxes and depreciation and amortization for real estate (“EBITDA”), EBITDA further adjusted to exclude gains (or losses) on sales of depreciable property and real estate impairment losses (“EBITDAre”), net debt, net operating income (“NOI”) and cash NOI (“Cash NOI”), all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are accepted industry measures used by analysts and investors to compare the operating performance of REITs. EBITDA and EBITDAre We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. In 2017, NAREIT issued a white paper recommending that companies that report EBITDA also report EBITDAre. We compute EBITDAre in accordance with the definition adopted by NAREIT. NAREIT defines EBITDAre as EBITDA (as defined above) excluding gains (or losses) from the sales of depreciable property and real estate impairment losses. We present EBITDA and EBITDAre as they are measures commonly used in our industry and we believe that these measures are useful to investors and analysts because they provide important supplemental information concerning our operating performance, exclusive of certain non-cash and other costs. We use EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. EBITDA and EBITDAre do not include all items of revenue and expense included in net income, they do not represent cash generated from operating activities and they are not necessarily indicative of cash available to fund cash requirements; accordingly, the should not be considered alternatives to net income as a performance measure or cash flows from operations as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Additionally, our computation of EBITDA and EBITDAre may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs. Net Debt We calculate our net debt as our gross debt (defined as total debt plus net deferred financing costs on our secured borrowings) less cash and cash equivalents and restricted cash available for future investment. We believe excluding cash and cash equivalents and restricted cash available for future investment, all of which could be used to repay debt, provides an estimate of the net contractual amount of borrowed capital to be repaid, which we believe is a beneficial disclosure to investors and analysts. NOI and Cash NOI We compute NOI as total revenues less property expenses. NOI excludes all other items of expense and income included in the financial statements in calculating net income or loss. Cash NOI further excludes non-cash items included in total revenues and property expenses, such as straight- line rental revenue and other amortization and non-cash charges. We believe NOI and Cash NOI provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level and present such items on an unlevered basis. NOI and Cash NOI are not measurements of financial performance under GAAP. You should not consider our NOI and Cash NOI as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. Additionally, our computation of NOI and Cash NOI may differ from the methodology for calculating these metrics used by other equity REITs and, therefore, may not be comparable to similarly titled measures reported by other equity REITs.

Supplemental Financial and Operating Information | As of September 30, 202217 Glossary Supplemental Reporting Measures Adjusted EBITDAre / Adjusted NOI / Adjusted Cash NOI We further adjust EBITDAre, NOI and Cash NOI i) based on an estimate calculated as if all re-leasing, investment and disposition activity that took place during the quarter had been made on the first day of the quarter, ii) to exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in nature and iii) to eliminate the impact of lease termination or loan prepayment fees and contingent rental revenue from our tenants which is subject to sales thresholds specified in the lease. We then annualize these estimates for the current quarter by multiplying them by four, which we believe provides a meaningful estimate of our current run rate for all investments as of the end of the current quarter. You should not unduly rely on these measures, as they are based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre, NOI and Cash NOI for future periods may be significantly less than these estimates of current run rates. Cash ABR Cash ABR means annualized contractually specified cash base rent in effect as of the end of the current quarter for all of our leases (including those accounted for as direct financing leases) commenced as of that date and annualized cash interest on our mortgage loans receivable as of that date. Rent Coverage Ratio Rent coverage ratio means the ratio of tenant-reported or, when unavailable, management’s estimate based on tenant-reported financial information, annual EBITDA and cash rent attributable to the leased property (or properties, in the case of a master lease) to the annualized base rental obligation as of a specified date. Initial Portfolio Initial Portfolio means our acquisition of a portfolio of 262 net leased properties on June 16, 2016, consisting primarily of restaurants, that were being sold as part of the liquidation of General Electric Capital Corporation for an aggregate purchase price of $279.8 million (including transaction costs). GAAP Cap Rate GAAP Cap Rate means annualized rental income computed in accordance with GAAP for the first full month after investment divided by the purchase price, as applicable, for the property. Cash Cap Rate Cash Cap Rate means annualized contractually specified cash base rent for the first full month after investment or disposition divided by the purchase or sale price, as applicable, for the property. Disclaimer Essential Properties Realty Trust, Inc. and the Essential Properties Realty Trust REIT are not affiliated with or sponsored by Griffin Capital Essential Asset Operating Partnership, L.P. or the Griffin Capital Essential Asset REIT, information about which can be obtained at (https://www.gcear.com).