John Alichowski's questions to Essential Properties Realty Trust Inc (EPRT) leadership • Q4 2024
Question
Speaking on behalf of John Alichowski, an analyst named Cheryl asked about the drivers for the $0.01 raise to the low end of the AFFO guidance. She also inquired about year-to-date acquisition trends, pipeline status, recent cap rate compression, and the reasons for a pickup in the 1.5x-1.99x tenant credit coverage bucket.
Answer
CEO Peter Mavoides explained that the guidance range is driven by a variety of assumptions around investments, credit experience, and cost of capital. He confirmed the pipeline is full but reflects modest cap rate compression, with expected transaction yields in the mid-to-high 7% range. Regarding the credit coverage bucket, he stated the shift was broad-based across the portfolio and not attributable to any specific industry or tenant trend.