Essential Properties Realty Trust, Inc. (EPRT) reported significant financial growth for the fiscal year ending December 31, 2024, with total revenues reaching $449.6 million, a 25% increase from $359.6 million in 2023. The company's net income also rose to $203.6 million, up from $191.4 million the previous year. This growth was primarily driven by a 25.3% increase in rental revenue, which amounted to $425.7 million, attributed to the expansion of its real estate investment portfolio, which grew by 217 properties, or 12%, during the year.
In terms of operational metrics, EPRT's portfolio consisted of 2,104 properties, with an impressive occupancy rate of 99.7%. The company maintained a diversified tenant base, with 413 tenants operating across 592 different concepts in 16 industries. Notably, no single tenant contributed more than 4.2% of the total annualized base rent, which stood at $460.6 million as of December 31, 2024. The weighted average remaining lease term for the portfolio was 14.0 years, with only 5.8% of annualized base rent attributable to leases expiring before January 1, 2030.
Strategically, EPRT completed $1.2 billion in investments across 297 properties during 2024, including $138.5 million in newly originated mortgage loans secured by 31 properties. The company also executed a successful public offering of 10.35 million shares in March 2024, generating net proceeds of $245 million. Additionally, EPRT's liquidity position remained strong, totaling $1 billion, which includes cash and cash equivalents, available forward equity contracts, and a revolving credit facility.
The company reported a healthy rent coverage ratio of 3.5x across its portfolio, indicating strong tenant financial performance. As of December 31, 2024, 98.4% of leases provided for annual rent increases at a weighted average rate of 1.7%. EPRT's management expressed confidence in the company's growth trajectory, emphasizing its focus on acquiring properties leased to middle-market companies in service-oriented and experience-based sectors, which are believed to be more resilient against e-commerce pressures.
Looking ahead, EPRT aims to continue its growth strategy through disciplined investments in single-tenant properties, leveraging its strong liquidity and capital resources. The company remains committed to maximizing stockholder value while navigating potential market challenges, including interest rate fluctuations and economic conditions that could impact tenant performance.
About ESSENTIAL PROPERTIES REALTY TRUST, INC.
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