ESSENTIAL PROPERTIES REALTY TRUST, INC. (Form: 8-K, Received: 07/28/2021 17:15:52)

false000172895100017289512021-07-282021-07-28

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 July 28, 2021, Essential Properties Realty Trust, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the three and six months ended June 30, 2021. The press release is furnished hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.01— Regulation FD Disclosure.

On July 28, 2021, the Company issued its Supplemental Operating & Financial Data—Second Quarter Ended June 30, 2021. 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 July 28, 2021 for the quarter ended June 30, 2021
99.2			Supplemental Operating & Financial Data—Second Quarter Ended June 30, 2021
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: July 28, 2021	ESSENTIAL PROPERTIES REALTY TRUST, INC.

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

Essential Properties Announces Second Quarter 2021 Results

- Second Quarter Net Income per Share of $0.20 and AFFO per Share of $0.34 -

- Completed Initial Public Debt Offering of $400 million 2.950% Senior Notes due 2031 -

- Increases 2021 AFFO Guidance to $1.30 to $1.32 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 six months ended June 30, 2021.

Second Quarter 2021 Financial and Operating Highlights


Operating Results (compared to Second Quarter 2020):
•Investments (94 properties)	$ Invested	$223.2 million
	Weighted Avg Cash Cap Rate	7.1%
•Net Income per share	Increased by 82%	$0.20
•Funds from Operations ("FFO") per share	Increased by 23%	$0.32
•Core Funds from Operations ("Core FFO") per share	Increased by 30%	$0.35
•Adjusted Funds from Operations ("AFFO") per share	Increased by 26%	$0.34
Equity Activity:
•Equity Raised - Follow-On Offering (April 15, 2021)	$23.50/share	$193.2 million
•Equity Raised - ATM Program	$26.67/share	$15.0 million
Debt Activity:
•Initial Public Debt Offering (June 22, 2021)	10 years; 2.95% coupon	$400.0 million
•Full Retirement of Secured Master Trust Funding Notes	4.19% wtd. avg. coupon	$171.2 million

Year to Date 2021 Financial and Operating Highlights


Operating Results (compared to YTD Second Quarter 2020):
•Investments (168 properties)	$ Invested	$421.0 million
	Weighted Avg Cash Cap Rate	7.1%
•Net Income per share	Increased by 31%	$0.34
•FFO per share	Increased by 11%	$0.62
•Core FFO per share	Increased by 14%	$0.66
•AFFO per share	Increased by 11%	$0.64
Equity Activity:
•Equity Raised - ATM Program	$23.79/share	$79.9 million

Highlights Subsequent to Second Quarter 2021


•Investments (20 properties)	$ Invested	$53.0 million
•Dispositions (9 properties)	$ Gross Proceeds	$6.3 million

Equity Activity:
•Equity Raised - ATM Program	$27.63/share	$7.6 million

Essential Properties’ President and Chief Executive Officer, Pete Mavoides, said, “During the second quarter and into the third quarter, we saw our operations normalize to pre-pandemic levels with rent collection at 99% in the quarter with July collections essentially at 100%. With just two vacant properties today and an 87% recovery rate on leasing over the trailing 12 months, our portfolio has remained resilient despite the challenges presented by the pandemic. On the external growth front, we invested over $220 million in the quarter, the predominance of which were sale-leaseback transactions with master lease provisions generated through existing relationships. Having recently achieved investment grade issuer ratings from Moody’s and S&P, we reached an important milestone in June with the completion of our inaugural unsecured public bond issuance. Coupling these strong second quarter results with a robust investment pipeline, we are raising our 2021 AFFO guidance range to $1.30 to $1.32 per share.”

The Company’s investment activity during the three and six months ended June 30, 2021 is summarized as follows:

Quarter Ended
June 30, 2021

Year to Date
June 30, 2021

Investments:

$ Invested

$223.2 million

$421.0 million

# of Properties

168

# of Separate Transactions

Weighted Average Cash and GAAP Cap Rate

7.1%/7.8%

WALT

13.5 years

14.7 years

% Sale-Leaseback Transactions

88%

86%

% Subject to Master Lease

83%

81%

% Required Financial Reporting (tenant/guarantor)

100%

The Company’s disposition activity during the three and six months ended June 30, 2021 is summarized as follows:

Quarter Ended
June 30, 2021

Year to Date
June 30, 2021

Dispositions:

Net Proceeds

$19.6 million

$44.8 million

# of Properties Sold

Net Gain / (Loss)

$3.7 million

$7.5 million

Weighted Average Cash Cap Rate (excluding vacant properties)

7.1%

Portfolio Highlights

The Company’s investment portfolio as of June 30, 2021 is summarized as follows:


Number of properties						1,325
Weighted average lease term						14.0 years
Weighted average rent coverage ratio						3.2x
Number of tenants						281
Number of states						44
Number of industries						17
Weighted average occupancy						99.8%
Total square feet of rentable space						11,509,433
Cash ABR - service-oriented or experience-based						94.8%
Cash ABR - properties subject to master lease						59.5%

Leverage and Balance Sheet and Liquidity

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

June 30, 2021

Leverage:

Net debt to Annualized Adjusted EBITDAre

4.6x

Balance Sheet and Liquidity:

Cash and cash equivalents and restricted cash

$129.7 million

Unused borrowing capacity

$400.0 million

Total available liquidity

$529.7 million

ATM Program:

2020 ATM Program initial availability

$250.0 million

Aggregate gross sales under the 2020 ATM Program

$159.2 million

Availability remaining under the 2020 ATM Program

$90.8 million

Dividend Information

As previously announced, on May 27, 2021 Essential Properties' board of directors declared a cash dividend of $0.25 per share of common stock for the quarter ended June 30, 2021. The dividend was paid on July 15, 2021 to stockholders of record as of the close of business on June 30, 2021.

The Company is increasing its expectation that 2021 AFFO per share on a fully diluted basis will be within a range of $1.30 to $1.32, which compares to its prior guidance of $1.24 to $1.28.

Conference Call Information

In conjunction with the release of Essential Properties’ operating results, the Company will host a conference call on Thursday, July 29, 2021 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: 13721779. The telephone replay will be available through August 12, 2021.

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—Second Quarter Ended June 30, 2021 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 June 30, 2021, the Company’s portfolio consisted of 1,325 freestanding net lease properties with a weighted average lease term of 14.0 years and a weighted average rent coverage ratio of 3.2x. In addition, as of June 30, 2021, the Company’s portfolio was 99.8% leased to 281 tenants operating 402 different concepts in 17 industries across 44 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 June 30, 2021 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 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 June 30,				Six months ended June 30,
(in thousands, except share and per share data)	2021		2020		2021		2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues:
Rental revenue1,2,3	$	53,150	$	36,465	$	98,582	$	76,007
Interest on loans and direct financing lease receivables	3,879		2,037		6,984		3,976
Other revenue	37		1		52		8
Total revenues	57,066		38,503		105,618		79,991

Expenses:
General and administrative4	6,470		6,253		12,901		13,789
Property expenses5	1,174		572		2,588		945
Depreciation and amortization	17,184		13,464		32,830		26,476
Provision for impairment of real estate	398		1,486		6,120		1,859
Change in provision for loan losses	(166)		48		(128)		516
Total expenses	25,060		21,823		54,311		43,585
Other operating income:
Gain on dispositions of real estate, net	3,710		1,093		7,498		2,968
Income from operations	35,716		17,773		58,805		39,374
Other (expense)/income:
Loss on repayment of secured borrowings6	(4,461)		—		(4,461)		(924)
Interest expense	(7,811)		(7,403)		(15,489)		(14,236)
Interest income	17		144		37		375
Income before income tax expense	23,461		10,514		38,892		24,589
Income tax expense	61		70		117		101
Net income	23,400		10,444		38,775		24,488
Net income attributable to non-controlling interests	(116)		(63)		(196)		(147)
Net income attributable to stockholders	$	23,284	$	10,381	$	38,579	$	24,341

Basic weighted-average shares outstanding	116,318,386		91,604,397		111,678,562		90,963,400
Basic net income per share	$	0.20	$	0.11	$	0.34	$	0.27

Diluted weighted-average shares outstanding	117,513,344		92,483,898		112,770,501		91,908,098
Diluted net income per share	$	0.20	$	0.11	$	0.34	$	0.26

1.Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $62, $56, $231 and $257 for the three and six months ended June 30, 2021 and 2020, respectively.

2.Includes reimbursable income from the Company’s tenants of $399, $347, $852 and $511 for the three and six months ended June 30, 2021 and 2020, respectively.

3.During the three and six months ended June 30, 2021, includes the recognition of $2,061 and $1,044 of cash and straight-line rent receivables, respectively, for previously unaccrued amounts from tenants that were moved from non-accrual to accrual accounting.

4.During the three and six months ended June 30, 2020, includes non-recurring expenses of $441 and $1,093, respectively, for costs and charges incurred in connection with the termination of one of our executive officers and $119 of non-recurring recruiting costs.

5.Includes reimbursable expenses from the Company’s tenants $398, $346, $850 and $511 for the three and six months ended June 30, 2021 and 2020, respectively.

6.Includes a make-whole payment of $2,543 and the write-off of $1,873 of deferred financing costs during the three and six months ended June 30, 2021 and the write-off of $924 of deferred financing costs during the six months ended June 30, 2020.

Essential Properties Realty Trust, Inc.

Consolidated Balance Sheets


(in thousands, expect share and per share amounts)	June 30, 2021		December 31, 2020
	(Unaudited)		(Audited)
ASSETS
Investments:
Real estate investments, at cost:
Land and improvements	$	835,542	$	741,254
Building and improvements	1,723,811		1,519,665
Lease incentive	13,152		14,297
Construction in progress	4,329		3,908
Intangible lease assets	85,276		80,271
Total real estate investments, at cost	2,662,110		2,359,395
Less: accumulated depreciation and amortization	(165,731)		(136,097)
Total real estate investments, net	2,496,379		2,223,298
Loans and direct financing lease receivables, net	237,648		152,220
Real estate investments held for sale, net	6,349		17,058
Net investments	2,740,376		2,392,576
Cash and cash equivalents	126,465		26,602
Restricted cash	3,212		6,388
Straight-line rent receivable, net	47,739		37,830
Rent receivables, prepaid expenses and other assets, net	30,882		25,406
Total assets	$	2,948,674	$	2,488,802

LIABILITIES AND EQUITY
Secured borrowings, net of deferred financing costs	$	—	$	171,007
Unsecured term loans, net of deferred financing costs	626,628		626,272
Senior unsecured notes, net	394,955		—
Revolving credit facility	—		18,000
Intangible lease liabilities, net	10,465		10,168
Dividend payable	29,698		25,703
Derivative liabilities	23,169		38,912
Accrued liabilities and other payables	21,189		16,792
Total liabilities	1,106,104		906,854
Commitments and contingencies	—		—
Stockholders' equity:
Preferred stock, $0.01 par value; 150,000,000 authorized; none issued and outstanding as of June 30, 2021 and December 31, 2020	—		—
Common stock, $0.01 par value; 500,000,000 authorized; 117,982,993 and 106,361,524 issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	1,181		1,064
Additional paid-in capital	1,955,450		1,688,540
Distributions in excess of cumulative earnings	(94,911)		(77,665)
Accumulated other comprehensive loss	(26,327)		(37,181)
Total stockholders' equity	1,835,393		1,574,758
Non-controlling interests	7,177		7,190
Total equity	1,842,570		1,581,948
Total liabilities and equity	$	2,948,674	$	2,488,802

Essential Properties Realty Trust, Inc.

Reconciliation of Non-GAAP Financial Measures


	Three months ended June 30,				Six months ended June 30,
(unaudited, in thousands except per share amounts)	2021		2020		2021		2020
Net income	$	23,400	$	10,444	$	38,775	$	24,488
Depreciation and amortization of real estate	17,158		13,439		32,779		26,427
Provision for impairment of real estate	398		1,486		6,120		1,859
Gain on dispositions of real estate, net	(3,710)		(1,093)		(7,498)		(2,968)
Funds from Operations	37,246		24,276		70,176		49,806
Other non-recurring expenses1,2	4,461		560		4,461		2,136
Core Funds from Operations	41,707		24,837		74,637		51,942
Adjustments:
Straight-line rental revenue, net	(5,220)		(2,170)		(8,864)		(5,361)
Non-cash interest expense	417		237		896		771
Non-cash compensation expense	1,856		1,399		3,451		2,690
Other amortization expense	1,315		919		2,420		1,353
Other non-cash charges	(168)		48		(132)		516
Capitalized interest expense	(15)		(65)		(35)		(160)
Transaction costs	—		42		—		109
Adjusted Funds from Operations	$	39,892	$	25,247	$	72,373	$	51,861

Net income per share3:
Basic	$	0.20	$	0.11	$	0.34	$	0.27
Diluted	$	0.20	$	0.11	$	0.34	$	0.26
FFO per share3:
Basic	$	0.32	$	0.26	$	0.60	$	0.54
Diluted	$	0.32	$	0.26	$	0.60	$	0.54
Core FFO per share3:
Basic	$	0.35	$	0.27	$	0.64	$	0.57
Diluted	$	0.35	$	0.27	$	0.64	$	0.56
AFFO per share3:
Basic	$	0.34	$	0.27	$	0.62	$	0.57
Diluted	$	0.34	$	0.27	$	0.62	$	0.56

1.During the three and six months ended June 30, 2021, includes a make-whole payment of $2,543 and the write-off of $1,873 of deferred financing costs.

2.Includes non-recurring expenses of $441 and $1,093 for accruals of severance payments and acceleration of non-cash compensation expense in connection with the termination of an executive officers during the three and six months ended June 30, 2020, respectively, $119 of non-recurring recruiting costs during the three and six months ended June 30, 2020 and our $924 loss on repayment of secured borrowings during the six months ended June 30, 2020.

3.Calculations exclude $68, $77, $187 and $207 from the numerator for the three and six months ended June 30, 2021 and 2020, 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 June 30, 2021
Net income	$	23,400
Depreciation and amortization	17,184
Interest expense	7,811
Interest income	(17)
Income tax expense	61
EBITDA	48,439
Provision for impairment of real estate	398
Gain on dispositions of real estate, net	(3,710)
EBITDAre	45,127
Adjustment for current quarter re-leasing, acquisition and disposition activity1	2,945
Adjustment to exclude other non-recurring activity2	1,191

Adjusted EBITDAre - Current Estimated Run Rate	49,263
General and administrative	6,470
Adjusted net operating income ("NOI")	55,733
Straight-line rental revenue, net1	(4,090)
Other amortization expense3	244
Adjusted Cash NOI	$	51,887

Annualized EBITDAre	$	180,508
Annualized Adjusted EBITDAre	$	197,052
Annualized Adjusted NOI	$	222,932
Annualized Adjusted Cash NOI	$	207,548

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 June 30, 2021 had occurred on April 1, 2021.

2.Adjustment includes $4,461 of non-core expenses added back to compute Core FFO, offset by $3,105 of cash and straight-line rent receivables from tenants moved from non-accrual to accrual accounting that was previously unaccrued and the $166 adjustment to our provision for loan loss.

3.Adjustment excludes $1,071 of non-recurring amortization expense recorded upon lease termination.

Essential Properties Realty Trust, Inc.

Reconciliation of Non-GAAP Financial Measures


(dollars in thousands, except share and per share amounts)	June 30, 2021



Total secured debt	$	—

Unsecured debt:
$200mm term loan	200,000
$430mm term loan	430,000
Senior Unsecured Notes	400,000
Revolving credit facility1	—
Total unsecured debt	1,030,000
Gross debt	1,030,000
Less: cash & cash equivalents	(126,465)
Less: restricted cash available for future investment	(3,212)
Net debt	900,323

Equity:
Preferred stock	—
Common stock & OP units (118,536,840 shares @ $27.04/share as of 6/30/21)2	3,205,236
Total equity	3,205,236
Total enterprise value ("TEV")	$	4,105,559









Net Debt / TEV	21.9		%
Net Debt / Annualized Adjusted EBITDAre	4.6x

1.The Company’s revolving credit facility provides a maximum aggregate initial original principal amount of up to $400 million and includes an accordion feature to increase, subject to certain conditions, the maximum availability of the facility by up to $200 million.

2.Common equity & units as of June 30, 2021, based on 117,982,993 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 Second Quarter Ended June 30, 2021

Supplemental Financial and Operating Information | As of June 30, 20212 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 June 30, 20213 1. Includes contingent rent (based on a percentage of the tenant's gross sales at the leased property) of $62, $56,,$231 and $257 for the three and six months ended June 30, 2021 and 2020, respectively. 2. Includes reimbursable income from the Company’s tenants of $399, $347, $852 and $511 for the three and six months ended June 30, 2021 and 2020, respectively. 3. During the three and six months ended June 30, 2021, includes the recognition of $2,061 and $1,044 of cash and straight-line rent receivables, respectively, for previously unaccrued amounts from tenants that were moved from non-accrual to accrual accounting. 4. During the three and six months ended June 30, 2020, includes non-recurring expenses of $441 and $1,093, respectively, for costs and charges incurred in connection with the termination of one of our executive officers and $119 of non-recurring recruiting costs. 5. Includes reimbursable expenses from the Company’s tenants $398, $346, $850, and $511 for the three and six months ended June 30, 2021 and 2020, respectively. 6. Includes a make-whole payment of $2,543 and the write-off of $1,873 of deferred financing costs during the three and six months ended June 30, 2021 and the write-off of $924 of deferred financing costs during the six months ended June 30, 2020. Financial Summary Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Rental revenue1,2,3 $ 53,150 $ 36,465 $ 98,582 $ 76,007 Interest on loans and direct financing lease receivables 3,879 2,037 6,984 3,976 Other revenue, net 37 1 52 8 Total revenues 57,066 38,503 105,618 79,991 Expenses: General and administrative4 6,470 6,253 12,901 13,789 Property expenses5 1,174 572 2,588 945 Depreciation and amortization 17,184 13,464 32,830 26,476 Provision for impairment of real estate 398 1,486 6,120 1,859 Change in provision for loan losses (166) 48 (128) 516 Total expenses 25,060 21,823 54,311 43,585 Other operating income: Gain on dispositions of real estate, net 3,710 1,093 7,498 2,968 Income from operations 35,716 17,773 58,805 39,374 Other (expense)/income: Loss on repayment and repurchase of secured borrowings6 (4,461) — (4,461) (924 Interest expense (7,811) (7,403) (15,489) (14,236 Interest income 17 144 37 375 Income before income tax expense 23,461 10,514 38,892 24,589 Income tax expense 61 70 117 101 Net income 23,400 10,444 38,775 24,488 Net income attributable to non-controlling interests (116) (63) (196) (147 Net income attributable to stockholders and members $ 23,284 $ 10,381 $ 38,579 $ 24,341 Basic weighted-average shares outstanding 116,318,386 91,604,397 111,678,562 90,963,400 Basic net income per share $ 0.20 $ 0.11 $ 0.34 $ 0.27 Diluted weighted-average shares outstanding 117,513,344 92,483,898 112,770,501 91,908,098 Diluted net income per share $ 0.20 $ 0.11 $ 0.34 $ 0.26

Supplemental Financial and Operating Information | As of June 30, 20214 1. During the three and six months ended June 30, 2021, includes a make-whole payment of $2,543 and the write-off of $1,873 of deferred financing costs. 2. Includes non-recurring expenses of $441 and $1,093 for accruals of severance payments and acceleration of non-cash compensation expense in connection with the termination of an executive officers during the three and six months ended June 30, 2020, respectively, $119 of non-recurring recruiting costs during the three and six months ended June 30, 2020 and our $924 loss on repayment of secured borrowings during the six months ended June 30, 2020. 3. Calculations exclude $68, $77, $187 and $207 from the numerator for the three and six months ended June 30, 2021 and 2020, 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 June 30, Six months ended June 30, (unaudited, in thousands except per share amounts) 2021 2020 2021 2020 Net income $ 23,400 $ 10,444 $ 38,775 $ 24,488 Depreciation and amortization of real estate 17,158 13,439 32,779 26,427 Provision for impairment of real estate 398 1,486 6,120 1,859 Gain on dispositions of real estate, net (3,710) (1,093) (7,498) (2,968 Funds from Operations 37,246 24,276 70,176 49,806 Other non-recurring expenses1,2 4,461 560 4,461 2,136 Core Funds from Operations 41,707 24,837 74,637 51,942 Adjustments: Straight-line rental revenue, net (5,220) (2,170) (8,864) (5,361 Non-cash interest expense 417 237 896 771 Non-cash compensation expense 1,856 1,399 3,451 2,690 Other amortization expense 1,315 919 2,420 1,353 Other non-cash charges (168) 48 (132) 516 Capitalized interest expense (15) (65) (35) (160 Transaction costs — 42 — 109 Adjusted Funds from Operations $ 39,892 $ 25,247 $ 72,373 $ 51,861 Net income per share3: Basic $ 0.20 $ 0.11 $ 0.34 $ 0.27 Diluted $ 0.20 $ 0.11 $ 0.34 $ 0.26 FFO per share3: Basic $ 0.32 $ 0.26 $ 0.60 $ 0.54 Diluted $ 0.32 $ 0.26 $ 0.60 $ 0.54 Core FFO per share3: Basic $ 0.35 $ 0.27 $ 0.64 $ 0.57 Diluted $ 0.35 $ 0.27 $ 0.64 $ 0.56 AFFO per share3: Basic $ 0.34 $ 0.27 $ 0.62 $ 0.57 Diluted $ 0.34 $ 0.27 $ 0.62 $ 0.56

Supplemental Financial and Operating Information | As of June 30, 20215 Financial Summary Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2021 December 31, 2020 ASSETS (unaudited) (audited) Investments: Real estate investments, at cost: Land and improvements $ 835,542 $ 741,254 Building and improvements 1,723,811 1,519,665 Lease incentive 13,152 14,297 Construction in progress 4,329 3,908 Intangible lease assets 85,276 80,271 Total real estate investments, at cost 2,662,110 2,359,395 Less: accumulated depreciation and amortization (165,731) (136,097) Total real estate investments, net 2,496,379 2,223,298 Loans and direct financing lease receivables, net 237,648 152,220 Real estate investments held for sale, net 6,349 17,058 Net investments 2,740,376 2,392,576 Cash and cash equivalents 126,465 26,602 Restricted cash 3,212 6,388 Straight-line rent receivable, net 47,739 37,830 Rent receivables, prepaid expenses and other assets, net 30,882 25,406 Total assets $ 2,948,674 $ 2,488,802 LIABILITIES AND EQUITY Secured borrowings, net of deferred financing costs $ — $ 171,007 Unsecured term loans, net of deferred financing costs 626,628 626,272 Senior unsecured notes, net 394,955 — Revolving credit facility — 18,000 Intangible lease liabilities, net 10,465 10,168 Dividend payable 29,698 25,703 Derivative liabilities 23,169 38,912 Accrued liabilities and other payables 21,189 16,792 Total liabilities 1,106,104 906,854 Commitments and contingencies — — Stockholders' equity: Preferred stock, $0.01 par value; 150,000,000 authorized; none issued and outstanding as of 6/30/21 and 12/31/20 — — Common stock, $0.01 par value; 500,000,000 authorized; 117,982,993 and 106,361,524 issued and outstanding as of 6/30/21 and 12/31/20, respectively 1,181 1,064 Additional paid-in capital 1,955,450 1,688,540 Distributions in excess of cumulative earnings (94,911) (77,665) Accumulated other comprehensive loss (26,327) (37,181) Total stockholders' equity 1,835,393 1,574,758 Non-controlling interests 7,177 7,190 Total equity 1,842,570 1,581,948 Total liabilities and equity $ 2,948,674 $ 2,488,802

Supplemental Financial and Operating Information | As of June 30, 20216 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 June 30, 2021 had occurred on April 1, 2021. 2. Adjustment includes $4,461 of non-core expenses added back to compute Core FFO, offset by $3,105 of cash and straight-line rent receivables from tenants moved from non-accrual to accrual accounting that was previously unaccrued and the $166 adjustment to our provision for loan loss. 3. Adjustment excludes $1,071 of non-recurring amortization expense recorded upon lease termination. Three Months Ended (unaudited, in thousands) June 30, 2021 Net income $ 23,400 Depreciation and amortization 17,184 Interest expense 7,811 Interest income (17) Income tax expense 61 EBITDA 48,439 Provision for impairment of real estate 398 Gain on dispositions of real estate, net (3,710) EBITDAre 45,127 Adjustment for current quarter re-leasing, acquisition and disposition activity1 2,945 Adjustment to exclude other non-recurring activity2 1,191 Adjusted EBITDAre - Current Estimated Run Rate 49,263 General and administrative 6,470 Adjusted net operating income ("NOI") 55,733 Straight-line rental revenue, net1 (4,090) Other amortization expense3 244 Adjusted Cash NOI $ 51,887 Annualized EBITDAre $ 180,508 Annualized Adjusted EBITDAre $ 197,052 Annualized Adjusted NOI $ 222,932 Annualized Adjusted Cash NOI $ 207,548

Supplemental Financial and Operating Information | As of June 30, 20217 Financial Summary Market Capitalization, Debt Summary and Leverage Metrics 1. Our revolving credit facility provides a maximum aggregate initial original principal amount of up to $400 million and includes an accordion feature to increase, subject to certain conditions, the maximum availability of the facility by up to $200 million. 2. Common equity & units as of June 30, 2021, based on 117,982,993 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) June 30, 2021 Rate Maturity Total secured debt $ — —% N/A Unsecured debt: $200mm term loan $ 200,000 3.26% 2.8 years $430mm term loan 430,000 3.02% 5.4 years Senior Unsecured Notes 400,000 3.12% 10.0 years Revolving credit facility1 — —% 1.8 years Total unsecured debt $ 1,030,000 3.11% 6.7 years Gross debt $ 1,030,000 3.11% 6.7 years Less: cash & cash equivalents (126,465) Less: restricted cash deposits held for the benefit of lenders (3,212) Net debt $ 900,323 Equity: Preferred stock $ — Common stock & OP units (118,536,840 shares @ $27.04/share as of 6/30/21)2 3,205,236 Total equity $ 3,205,236 Total enterprise value ("TEV") $ 4,105,559 Net Debt / TEV 21.9% Net Debt / Annualized Adjusted EBITDAre 4.6x

Supplemental Financial and Operating Information | As of June 30, 20218 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 purchase price for the property plus transaction costs. 3. GAAP rent for the first twelve months after the investment divided by the gross purchase price for 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 3Q’19 4Q’19 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 Number of Transactions 28 41 32 11 19 33 22 34 Property Count 139 94 63 13 50 108 74 94 Avg. Investment per Unit (in 000s) $ 1,174 $ 2,049 $ 2,551 $ 2,870 $ 2,866 $ 2,218 $ 2,650 $ 2,354 Cash Cap Rates2 7.5% 7.3% 7.1% 7.4% 7.1% 7.1% 7.0% 7.1% GAAP Cap Rates3 8.3% 8.0% 8.0% 8.1% 7.9% 7.7% 7.9% 7.8% Master Lease %4,5 73% 41% 54% 68% 79% 89% 79% 83% Sale-Leaseback %4,6 93% 81% 88% 100% 92% 88% 85% 88% % of Financial Reporting4 100% 99% 100% 100% 100% 100% 100% 100% Rent Coverage Ratio 3.2x 3.1x 2.7x 4.3x 2.8x 3.6x 3.0x 2.7x Lease Term Years 16.6 16.3 16.1 16.7 17.6 16.3 16.1 13.5 In ve st m en t Ac tiv ity ($ 00 0s )

Supplemental Financial and Operating Information | As of June 30, 20219 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 was sold. Dispositions 3Q’19 4Q’19 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 Realized Gain/(Loss) 1,2 17.8% 8.5% 3.2% 29.5% (4.5)% (10.2)% 4.5% (7.3)% Cash cap rate on leased assets 3 6.7% 6.9% 7.1% 6.8% 7.0% 7.4% 7.1% 7.1% Leased properties sold 4 9 7 10 3 11 21 15 6 Vacant properties sold 4 1 1 — — 3 2 1 1 Rent Coverage Ratio 1.1x 1.7x 0.7x 1.3x 2.2x 2.3x 1.8x 1.8x

Supplemental Financial and Operating Information | As of June 30, 202110 Portfolio Summary Portfolio Highlights 1. Includes 159 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 June 30, 2021 Investment Properties (#)1 1,325 Square Footage (mm) 11.6 Tenants (#) 281 Concepts (#) 402 Industries (#) 17 States (#) 44 Weighted Average Remaining Lease Term (Years) 14.0 Triple-Net Leases (% of Cash ABR) 94.0% Master Leases (% of Cash ABR) 59.5% Sale-Leaseback (% of Cash ABR)2,3 84.7% Unit-Level Rent Coverage 3.2x Unit-Level Financial Reporting (% of Cash ABR) 98.3% Leased (%) 99.8% Top 10 Tenants (% of Cash ABR) 19.5% Average Investment Per Property ($mm) $2.2 Total Cash ABR ($mm) $209.3

Supplemental Financial and Operating Information | As of June 30, 202111 Portfolio Summary Tenant and Industry Diversification Top 10 Tenants Diversification by Industry 1. Represents tenant, guarantor or parent company. 2. Property count includes 159 properties that secure mortgage loans receivable, but exclude 2 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 Properties3 Building SqFt Rent Per SqFt4 Quick Service Service $ 28,975 13.8% 350 958,092 $ 30.11 Car Washes Service 28,802 13.8% 119 559,428 50.61 Early Childhood Education Service 28,426 13.6% 122 1,288,886 21.71 Medical / Dental Service 26,083 12.5% 158 1,089,845 23.97 Automotive Service Service 17,075 8.2% 125 876,015 20.57 Convenience Stores Service 15,800 7.5% 144 570,876 27.68 Casual Dining Service 11,368 5.4% 82 466,641 24.93 Equipment Rental and Sales Service 6,503 3.1% 27 540,352 12.04 Family Dining Service 5,768 2.8% 39 227,894 25.31 Pet Care Services Service 3,622 1.7% 36 262,371 17.35 Other Services Service 3,055 1.4% 18 199,983 16.06 Service Subtotal $ 175,477 83.8% 1220 7,040,383 $ 25.21 Health and Fitness Experience $ 9,885 4.7% 25 1,004,189 $ 9.84 Entertainment Experience 9,097 4.3% 22 735,738 12.36 Movie Theatres Experience 4,171 2.0% 6 293,206 14.22 Experience Subtotal $ 23,153 11.0% 53 2,033,133 $ 11.39 Grocery Retail $ 4,966 2.4% 23 961,560 $ 5.16 Home Furnishings Retail 1,998 1.0% 4 217,339 9.19 Retail Subtotal $ 6,964 3.4% 27 1,178,899 $ 5.91 Building Materials Industrial $ 3,748 1.8% 23 1,257,017 $ 2.98 Total/Weighted Average $ 209,342 100% 1,323 11,509,433 $ 18.28 Top 10 Tenants1,2 Properties % of Cash ABR 74 2.5% 17 2.4% 23 2.3% 13 2.1% 34 1.8% 5 1.8% 19 1.7% 5 1.7% 19 1.6% 13 1.6% Top 10 Tenants 222 19.5% Total 1,325 100%

Supplemental Financial and Operating Information | As of June 30, 202112 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 June 30, 2021 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. Rent Coverage Ratio (x) Rent Coverage Ratio (x) 29.1% Reporting Requirements % of Cash ABR Unit-Level Financial Information 98.3% Corporate-Level Financial Reporting 98.3% Both Unit-Level and Corporate-Level Financial Information 97.8% No Financial Information 1.5%

Supplemental Financial and Operating Information | As of June 30, 202113 Leasing Summary Leasing Expiration Schedule, Lease Renewal Activity and Statistics 1. Expiration year of contracts in place as of June 30, 2021 and excludes any tenant option renewal periods that have not been exercised. 2. Property count includes 159 properties that secure mortgage loans receivable, but exclude 2 vacant properties. 3. Weighted by cash ABR as of June 30, 2021. 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 June 30, 2021. Annual Lease Expiration by Cash ABR Leasing Activity – Trailing 12 Months Leasing Statistics Lease Terminated Leases Re-Leased Total $(000)s Renewals Without Vacancy After Vacancy Leasing Prior Cash ABR $ 72 $ 6,325 $ 4,688 $ 11,084 New Cash ABR4 $ 74 $ 5,402 $ 4,209 $ 9,684 Recovery Rate 103.0% 85.4% 89.8% 87.4% Number of Leases 1 36 20 57 Average Months Vacant 0 0 3.9 0 % of Total Cash ABR5 —% 2.6% 2.0% 4.6% Vacant Properties at March 31, 2021 11 Expiration Activity 0 Lease Termination 1 Vacant Property Sales -1 Lease Activity -9 Vacant Properties at June 30, 2021 2 Cash % of # of Wgt. Avg. Year1 ABR Cash ABR Properties2 Coverage3 2021 $ 31 —% 0 0.0 2022 490 0.2% 5 3.0x 2023 1,426 0.7% 16 2.9x 2024 4,926 2.4% 49 4.8x 2025 1,726 0.8% 18 2.5x 2026 4,435 2.1% 30 3.6x 2027 4,470 2.1% 28 2.8x 2028 4,324 2.1% 15 1.6x 2029 5,283 2.5% 74 4.1x 2030 5,238 2.5% 49 3.9x 2031 12,193 5.8% 73 2.3x 2032 10,380 5.0% 50 4.0x 2033 7,889 3.8% 26 2.9x 2034 34,260 16.4% 244 4.6x 2035 20,612 9.8% 129 2.8x 2036 14,178 6.8% 94 2.5x 2037 5,205 2.5% 27 8.2x 2038 11,857 5.7% 74 2.5x 2039 22,259 10.6% 119 2.7x 2040 27,948 13.4% 147 2.1x Thereafter 10,212 4.8% 56 2.0x Total $ 209,342 100.0% 1,323 3.2x

Supplemental Financial and Operating Information | As of June 30, 202114 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 April 1, 2020 through June 30, 2021. The same-store portfolio for 2Q’21 is comprised of 966 properties and represented 70% of our total portfolio as measured by contractual cash rent and interest divided by our cash ABR at June 30, 2021. Contractual Cash Rent: The amount of cash rent and interest our tenants are contractually obligated to pay per the in-place lease as of June 30, 2021; 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 2Q’21 2Q’20 Change Service $ 30,373 $ 30,549 (0.6)% Experience 5,105 5,355 (4.7)% Retail 738 587 25.8% Industrial 660 647 2.0% Total Same-Store Rent $ 36,876 $ 37,138 (0.7)%

Supplemental Financial and Operating Information | As of June 30, 202115 Leasing Summary Lease Escalations 1. Based on cash ABR as of June 30, 2021. 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 80.3% 1.6% Every 2 years 1.9% 1.5% Every 3 years 0.5% —% Every 4 years 0.3% 1.0% Every 5 years 10.5% 1.7% Every 6 years 0.2% 0.8% Other escalation frequencies 4.7% 1.1% Flat 1.6% 1.0% Total / Weighted Average 100.0% 1.6%

Supplemental Financial and Operating Information | As of June 30, 202116 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 June 30, 202117 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 June 30, 202118 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 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).