Joseph Peil
Chief Investment Officer at ESSENTIAL PROPERTIES REALTY TRUST
Executive
About Joseph Peil
A Joseph Peil, age 43, is Executive Vice President and Chief Investment Officer at Essential Properties Realty Trust (EPRT) since March 2025, having held increasing responsibilities at EPRT since May 2017; prior roles include Senior Vice President and Head of Credit at Spirit Realty Capital (2011–2017), analyst at Arizona State Retirement System (2009–2011), and analyst at Smith Barney (2005–2009). He holds a B.A. in Philosophy from Gonzaga University and is a CFA charterholder . Under his leadership areas (underwriting, credit, asset management and investments), EPRT executed $1.2B of gross investments in 2024 at 8.0% initial cash yields with 99.7% occupancy and 14.0-year average lease term, while net debt/annualized adjusted EBITDAre was 4.6x; AFFO per share reached $1.74 and 2024 TSR translated to $156.77 (vs $98.85 for FTSE NAREIT All Equity REITs) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Essential Properties Realty Trust | EVP & Chief Investment Officer | 2025–present | Oversees investments; responsible for underwriting, credit, asset management; promoted from senior roles held since 2017 . |
| Essential Properties Realty Trust | Increasing responsibility roles | 2017–2025 | Built credit/asset management functions; supported deployment, dispositions, and portfolio performance . |
| Spirit Realty Capital | Senior VP & Head of Credit | 2011–2017 | Led credit; supported net-lease investments at large public REIT . |
| Arizona State Retirement System | Analyst | 2009–2011 | Public pension investment analysis . |
| Smith Barney (Morgan Stanley) | Analyst | 2005–2009 | Sell-side/wealth management analytics . |
External Roles
- None disclosed (no current public company boards reported for Peil) .
Fixed Compensation
| Component | 2024 Details | Notes |
|---|---|---|
| Base Salary | $350,000 | Set in Feb 2024 upon promotion to EVP; increased from $300,000 in 2023 (+16.7%) . |
| Target Bonus % | 125% of base salary | Threshold 50%; Target 125%; Maximum 200% (straight-line interpolation) . |
| Actual Bonus Paid | $550,000 | Paid at 126% of target based on corporate and individual metrics . |
Performance Compensation
Short-Term Incentive (2024) – Metrics, Targets, Results, Payout
| Metric | Weighting | Threshold | Target | High | 2024 Actual | Payout vs Hurdle |
|---|---|---|---|---|---|---|
| AFFO per Share | 25% | $1.71 | $1.73 | $1.75 | $1.74 | Between Target and High . |
| Gross Investments | 25% | $900M | $1.05B | $1.2B | $1.2B | At High . |
| Same Store Rent Growth | 25% | 1.35% | 1.45% | 1.55% | 1.40% | Between Threshold and Target . |
| Individual Performance | 25% | Qualitative | Qualitative | Qualitative | Strong execution across sourcing, asset management, capital markets and investor engagement | Overall payout 126% of target . |
Long-Term Incentives (RSUs)
| Award Type | Grant Date | Target/Units | Threshold | Maximum | Vesting | Grant Date Fair Value |
|---|---|---|---|---|---|---|
| Performance-Based RSUs (2024 LTIP; TSR vs peer group) | 2/16/2024 | 13,642 | 6,821 | 34,105 | 50% on 12/31/2026; 50% on 12/31/2027, subject to performance and continued employment | $511,000 . |
| Time-Based RSUs (2024 LTIP) | 2/16/2024 | 9,094 | N/A | N/A | 25% annually over 4 years on each Jan 18 anniversary (2024–2027) | $223,000 . |
| 2021 Subjective Performance RSUs (viewed as granted in 2024 upon certification) | 2/13/2024 | 2,085 | N/A | N/A | 50% vested 2/13/2024; 50% vested 12/31/2024 | $50,000 . |
| 2022 Performance RSUs (3-year period ended 12/31/2024) | 2022 grant | 7,996 target; earned 19,990 (250%) | 50% at 30th pct | 250% at 75th pct | 50% vested 12/31/2024; 50% vest 12/31/2025; plus 2,852 dividend equivalent shares . | N/A (earn-out result) . |
Peer group for TSR measurement includes ADC, BNL, EPR, FCPT, GTY, GNL, NNN, NETS, O, SAFE, STAG, WPC; Spirit dropped; Broadstone added in 2024 .
Equity Ownership & Alignment
| Ownership Item | Detail |
|---|---|
| Total Beneficial Ownership (shares + OP units) | 97,523; <1% of outstanding shares as of March 21, 2025 . |
| Outstanding, Unvested RSUs (12/31/2024) | 30,023 units; market value $939,000 (share price $31.28) . |
| Performance RSUs (expected level, unearned at 12/31/2024) | 64,250 units; market/payout value $2,010,000 . |
| 2024 Stock Vested | 20,526 shares; value realized $615,000 . |
| Stock Ownership Guidelines | NEOs must hold 3x base salary; executives must retain 50% of shares until guideline met; all NEOs in compliance as of record date . |
| Hedging/Pledging | Company prohibits hedging and prohibits directors/executive officers from pledging; filings state no shares are pledged, though some accounts may, from time to time, utilize margin borrowing secured by securities held in such accounts . |
Employment Terms
| Term Element | Peil’s Agreement (March 2025) |
|---|---|
| Term and Renewal | Initial 3-year term; automatic one-year renewals unless non-renewal notice . |
| Severance (no CIC) | 1x base salary + average bonus for prior 3 years; pro-rata current-year bonus; 12 months COBRA reimbursement; vesting of awards granted after March 2025 . |
| Severance (with CIC; “double trigger”) | 2x base salary + target bonus if termination during CIC period; installments over 24 months; 12 months COBRA reimbursement; vesting of awards granted after March 2025 . |
| Equity Treatment on Termination | Time-based RSUs: accelerated vesting; Performance RSUs: vest based on performance through termination (target if termination within first year of performance period) . |
| Non-Compete/Non-Solicit | Non-compete and non-solicit generally end six months post-termination . |
| Clawback Policy | Compliant with Dodd-Frank and NYSE; recoup excess incentive comp after a material restatement . |
| Tax Gross-Ups | None; company does not provide tax gross-ups . |
| Perquisites/Pension | Limited perquisites; no pension/defined benefit; 401(k) match 100% up to 6% . |
Performance & Track Record
- 2024 operating execution: $1.2B gross investments in 297 properties at 8.0% initial cash yield; portfolio occupancy 99.7%; weighted average lease term 14.0 years; rent coverage 3.5x; same-store cash rent growth 1.4% .
- Balance sheet and capital markets: net debt/annualized adjusted EBITDAre 4.6x; $256.2M overnight equity offering; $450M term loan maturing 2030; >180 investor meetings and 9 conferences in 2024 .
- Company TSR context: $156.77 value of $100 initial investment by 12/31/2024 vs $98.85 for FTSE NAREIT All Equity REITs; Net income $203.6M; AFFO per share $1.74 .
- Compensation alignment: 2022 performance RSUs vested at 250% of target based on top-quartile relative TSR and strategic objectives; Peil earned 19,990 shares with split vesting through 12/31/2025 .
Compensation Structure Analysis
- Pay mix and at-risk: Material equity-based compensation with 60% performance-based RSUs tied to 3-year relative TSR and 40% time-based RSUs; performance RSU payouts range 0%–250% of target; no options .
- Annual incentives: Weighted to AFFO/share and investment volume; qualitative individual metrics reflect underwriting quality, tenant relationships, and asset management outcomes; 2024 payout 126% of target for Peil .
- Governance safeguards: No single-trigger CIC acceleration; clawback policy in place; no tax gross-ups; anti-hedging and anti-pledging policies; high say-on-pay support (98% in 2024) .
Equity Vesting Schedules and Potential Selling Pressure
| Vesting Event | Schedule | Units |
|---|---|---|
| 2022 Performance RSUs (earned) | 50% vested 12/31/2024; 50% vest 12/31/2025 | 19,990 earned; additional 2,852 dividend shares allocated . |
| 2024 Time-Based RSUs | 25% annually (Jan 18, 2025–2028) | 9,094 granted . |
| 2024 Performance RSUs (if earned) | 50% on 12/31/2026; 50% on 12/31/2027 | Target 13,642; up to 34,105 at max . |
These clustered vesting dates (12/31/2025, 12/31/2026, 12/31/2027) can create episodic supply; however, stock ownership guidelines requiring retention of 50% of shares until guideline compliance dampen immediate selling pressure .
Equity Ownership & Pledging
- Beneficial ownership: 97,523 shares/OP units as of March 21, 2025; <1% of outstanding .
- Pledging/hedging: Company prohibits hedging and pledging by executive officers; filings state no shares pledged, though some accounts may utilize margin borrowing secured by securities held in such accounts .
Employment Terms
See table above; Peil’s agreement uses double-trigger CIC, modest severance multiples (1x or 2x), six-month restrictive covenants, and accelerated vesting limited to awards granted after March 2025 .
Investment Implications
- Alignment: High proportion of at-risk equity tied to 3-year relative TSR and strict ownership/retention guidelines supports long-term alignment with shareholders .
- Retention risk: Severance multiples are moderate (1x/2x) and non-compete is short (six months), but sustained equity grants with multi-year vesting and compliance with ownership guidelines mitigate near-term exit risk .
- Trading signals: Anticipate potential liquidity around year-end vesting cycles (12/31/2025–2027); monitor Form 4 filings for actual disposition behavior given retention requirements and anti-hedging/anti-pledging policies .
- Execution track record: Strong 2024 deployment at attractive yields, conservative leverage (4.6x), and above-peer TSR underpin confidence in Peil’s investment and asset management leadership—supportive for continued value creation, subject to capital market conditions and tenant health .
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