Essential Properties
Essential Properties (NYSE: EPRT) invests in triple net-lease properties across the US, focusing on single-tenant properties leased to middle-market companies in service-oriented and experience-based businesses.
Company Overview
Essential Properties is a publicly traded company on the New York Stock Exchange under the ticker symbol EPRT. The company specializes in investing in triple net-lease properties across the United States. It owns and manages primarily single-tenant properties leased to middle-market companies operating service-oriented and experience-based businesses. Essential Properties focuses on sale-leaseback transactions and offers speed and certainty of close, often finalizing transactions in as little as thirty days.
Investment Strategy
Essential Properties employs a robust investment strategy centered on acquiring, owning, and managing single-tenant properties through sale-leaseback transactions. The company maintains direct relationships with tenants and actively seeks new investment opportunities. Essential Properties aims for long-term asset holding and ensures that every property acquired is essential to the tenants’ sales and profits, generally immune to e-commerce pressure.
Diverse Property Portfolio
Essential Properties has a diversified portfolio spread across 48 states, comprising 1,937 properties. The portfolio focuses on properties leased to tenants in various industries, including restaurants, car washes, automotive services, medical services, convenience stores, entertainment, health & fitness, and early childhood education. Currently, the portfolio is 99.9% leased and boasts a remaining weighted average lease term of 14.1 years.
Sale-Leaseback Transactions
Essential Properties specializes in sale-leaseback transactions, enabling businesses to sell their owner-occupied real estate while retaining long-term control through leases. This model allows the company to provide speed and certainty of close, often underwriting, analyzing, and finalizing transactions within thirty days. This strategy is geared towards service-oriented and experience-based businesses, ensuring their operations remain unhampered.