10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to

Commission File Number 001-38530

Essential Properties Realty Trust, Inc.

(Exact name of Registrant as specified in its Charter)

Maryland	82-4005693
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
902 Carnegie Center Blvd., Suite 520 Princeton, New Jersey	08540
(Address of Principal Executive Offices)	(Zip Code)
Registrants telephone number, including area code: (609) 436-0619

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

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒  No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company, “and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☒ No ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of June 30, 2022 (the last business day of the registrant's most recently completed second fiscal quarter), the aggregate market value of the registrant's shares of common stock, $0.01 par value, held by non-affiliates of the registrant, was $2.8 billion based on the last reported sale price of $21.49 per share on the New York Stock Exchange on June 30, 2022.

The number of shares of the registrant's Common Stock outstanding as of February 15, 2023 was 144,350,885.

Documents Incorporated by Reference

Portions the Definitive Proxy Statement for the registrant's 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. The registrant expects to file such proxy statement within 120 days after the end of its fiscal year.

Table of Contents

		Page
PART I
Item 1.	Business	4
Item 1A.	Risk Factors	20
Item 1B.	Unresolved Staff Comments	40
Item 2.	Properties	40
Item 3.	Legal Proceedings	45
Item 4.	Mine Safety Disclosures	45
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	46
Item 6.	[Reserved]	47
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	48
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	70
Item 8.	Financial Statements and Supplementary Data	71
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	117
Item 9A.	Controls and Procedures	117
Item 9B.	Other Information	117
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	118
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	118
Item 11.	Executive Compensation	118
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	118
Item 13.	Certain Relationships and Related Transactions, and Director Independence	118
Item 14.	Principal Accounting Fees and Services	118
PART IV
Item 15.	Exhibits, Financial Statement Schedules	119
Item 16	Form 10-K Summary	121
	Signatures	122
	Schedules	F-1

2

PART I

In this Annual Report, we refer to Essential Properties Realty Trust, Inc., a Maryland corporation, together with its consolidated subsidiaries, including, Essential Properties, L.P., a Delaware limited partnership and its operating partnership (the "Operating Partnership"), as "we," "us," "our" or "the Company" unless we specifically state otherwise or the context otherwise requires.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In particular, statements pertaining to our business and growth strategies, investment, financing and leasing activities and trends in our business, including trends in the market for long-term, net leases of freestanding, single-tenant properties, contain forward-looking statements. When used in this report, the words "estimate," "anticipate," "expect," "believe," "intend," "may," "will," "should," "seek," "approximately" and "plan," and variations of such words, and similar words or phrases, that are predictions of 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, beliefs or intentions of management.

Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from the results of operations or plans expressed or implied by such forward-looking statements; accordingly, you should not rely on forward-looking statements as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and may not be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:

•general business and economic conditions;

•risks inherent in the real estate business, including tenant defaults or bankruptcies, illiquidity of real estate investments, fluctuations in real estate values and the general economic climate in local markets, competition for tenants in such markets, potential liability relating to environmental matters and potential damages from natural disasters;

•the performance and financial condition of our tenants;

•the availability of suitable properties to acquire and our ability to acquire and lease those properties on favorable terms;

•our ability to renew leases, lease vacant space or re-lease space as existing leases expire or are terminated;

•volatility and uncertainty in financial markets, in particular the equity and credit markets, fluctuations in the Consumer Price Index ("CPI"), and the impact of inflation on us and our tenants;

•the degree and nature of our competition;

•our failure to generate sufficient cash flows to service our outstanding indebtedness;

•our ability to access debt and equity capital on attractive terms;

•fluctuating interest rates;

•availability of qualified personnel and our ability to retain our key management personnel;

•changes in, or the failure or inability to comply with, applicable law or regulation;

•our failure to continue to qualify for taxation as a real estate investment trust ("REIT");

•changes in the U.S. tax law and other U.S. laws, whether or not specific to REITs;

3

•any adverse impact of the COVID-19 pandemic ("COVID-19") on the Company and its tenants; and

•additional factors discussed in the sections entitled "Business," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Annual Report.

You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future events or of our performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by law.

Because we operate in a highly competitive and rapidly changing environment, new risks emerge from time to time, and it is not possible for management to predict all such risks, nor can management assess the impact of all such risks on our business or the extent to which any risk, or combination of risks, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual events or results.

Summary Risk Factors

Our business is subject to a number of risks that could materially and adversely impact our financial condition, results of operations, cash flows and liquidity, prospects, the market price of our common stock and our ability to, among other things, service our debt and to make distributions to our stockholders. The following risks, which, together with other material risks that are discussed more fully herein under “Risk Factors,” are the principal factors that make an investment in our company speculative or risky:

•adverse changes in the U.S., global and local markets and related economic conditions;

•the failure of our tenants to successfully operate their businesses, or tenant defaults, bankruptcies or insolvencies;

•defaults by borrowers on our mortgage loans receivable;

•an inability to identify and complete acquisitions of suitable properties or yield the returns we seek with future acquisitions;

•an inability to access debt and equity capital on commercially acceptable terms or at all;

•a decline in the fair value of our real estate assets;

•geographic, industry and tenant concentrations that reduce the diversity of our portfolio;

•a reduction in the willingness or ability of consumers to physically patronize or use their discretionary income in the businesses of our tenants and potential tenants;

•our significant indebtedness, which requires substantial cash flow to service, subjects us to covenants and exposes us to refinancing risk and the risk of default;

•failure to continue to qualify for taxation as a REIT; and

•any adverse impact of the COVID-19 pandemic on us and our tenants.

Item 1. Business.

We are an internally managed real estate company that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. We have assembled a diversified portfolio using a disciplined strategy that focuses on properties leased to tenants in businesses such as:

•Early childhood education,

4

•Car washes,

•Restaurants (primarily quick service restaurants and casual dining),

•Medical and dental services,

•Automotive services,

•Convenience stores,

•Entertainment,

•Health and fitness,

•Equipment rental and

•Grocery

We believe that, in general, properties leased to tenants in these businesses and similar businesses are essential to the generation of the tenants' sales and profits. We also believe that these businesses have favorable growth potential and, because of their nature they are more insulated from e-commerce pressure than many other businesses.

We completed our initial public offering in June 2018 (our "IPO") and we qualified to be taxed as a REIT beginning with our taxable year ended December 31, 2018. As of December 31, 2022, 93.0% of our $297.2 million of annualized base rent was attributable to properties operated by tenants in service-oriented and experience-based businesses. "Annualized base rent" means annualized contractually specified cash base rent in effect on December 31, 2022 for all of our leases (including those accounted for as loans or direct financing leases) commenced as of that date and annualized cash interest on our mortgage loans receivable as of that date.

Our primary business objective is to maximize stockholder value by generating attractive risk-adjusted returns through owning, managing and growing a diversified portfolio of commercially desirable properties. We have grown significantly since commencing our operations and investment activities in June 2016. As of December 31, 2022, our portfolio consisted of 1,653 properties, inclusive of 153 properties which secure our investments in mortgage loans receivable. Our portfolio was built based on the following core investment attributes:

Diversified Portfolio.   As of December 31, 2022, our portfolio was 99.9% occupied by 350 tenants operating 538 different concepts (i.e., generally brands) in 16 industries across 48 states, with none of our tenants contributing more than 3.4% of our annualized base rent. Our goal is that, over time, no more than 5% of our annualized base rent will be derived from any single tenant or more than 1% from any single property.

Long Lease Term.    As of December 31, 2022, our leases had a weighted average remaining lease term of 13.9 years (based on annualized base rent), with only 6.1% of our annualized base rent attributable to leases expiring prior to January 1, 2028. Our properties generally are subject to long-term net leases that we believe provide us a stable base of revenue from which to grow our portfolio.

Significant Use of Master Leases.   As of December 31, 2022, 65.0% of our annualized base rent was attributable to master leases. A master lease is a single lease pursuant to which multiple properties are leased to a single operator/tenant on a unitary (i.e., “all or none”) basis. The master lease structure spreads our investment risk across multiple properties, and we believe it reduces our exposure to operating and renewal risk at any one property, and promotes efficient asset management. We seek to acquire properties owned and operated by middle-market businesses and lease the properties back to the operators pursuant to our standard lease form. For the year ended December 31, 2022, approximately 97.3% of our investments were sale-leaseback transactions.

Contractual Base Rent Escalation. As of December 31, 2022, 98.2% of our leases (based on annualized base rent) provided for increases in future base rent at a weighted average rate of 1.6% per year. Rent escalation provisions provide contractually-specified incremental yield on our investments and provide a degree of protection from inflation or a rising interest rate environment.

5

Smaller, Low Basis Single-Tenant Properties. We generally invest in freestanding "small-box" single-tenant properties. As of December 31, 2022, our average investment per property was $2.4 million (which equals our aggregate investment in our properties (including transaction costs, lease incentives and amounts funded for construction in progress) divided by the number of properties owned at such date), and we believe investments of similar size should allow us to grow our portfolio without concentrating a large amount of capital in individual properties and should allow us to limit our exposure to events that may adversely affect a particular property. Additionally, we believe that many of our properties are fungible and appropriate for multiple commercial uses, which reduces the risk that a particular property may become obsolete and enhances our ability to sell a property if we choose to do so.

Healthy Rent Coverage Ratio and Tenant Financial Reporting. As of December 31, 2022, our portfolio's weighted average rent coverage ratio was 4.0x, and 98.6% of our leases (based on annualized base rent) obligate the tenant to periodically provide us with specified unit-level financial reporting. "Rent coverage ratio" means, as of a specified date, the ratio of (x) tenant-reported or, when unavailable, management's estimate (based on tenant-reported financial information) of annual earnings before interest, taxes, depreciation, amortization and cash rent attributable to the leased property (or properties, in the case of a master lease) to (y) the annualized base rental obligation.

2022 Financial and Operating Highlights

•During 2022, we completed $937.4 million of investments, including $793.3 million in 224 property acquisitions and $144.0 million in newly originated loans receivable secured by 49 properties.

•As of December 31, 2022, our total gross investment in real estate was $4.1 billion and we had total debt of $1.4 billion.

•During 2022, we declared distributions totaling $1.075 per share of common stock.

•In August 2022, we completed a follow-on offering of 8,740,000 shares of our common stock, including 1,140,000 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares raising net proceeds of $192.6 million.

•During 2022, we sold 9,794,137 shares of our common stock under the ATM Program (as defined herein) at a weighted average price per share of $24.00 for gross proceeds of $235.1 million, including 957,453 shares of our common stock that were physically settled for cash in January 2023.

Our Target Market

We are an active investor in single-tenant, net leased commercial real estate. Our target properties are generally freestanding commercial real estate facilities where a middle-market tenant conducts activities on property that are essential to the generation of its sales and profits. We believe that this market is underserved from a capital perspective and therefore offers attractive risk-adjusted returns from an investment perspective.

Within this market, we focus our investment activities on properties leased to tenants engaged in a targeted set of 13 service-oriented or experience-based businesses. We believe that operating properties are the essential venues through which these businesses transact with their customers, and therefore that such properties and businesses are generally more insulated from the competitive pressure of e-commerce than many other businesses where significant activity can take place online.

We focus on properties leased to middle-market companies, which we define as regional and national operators with between 10 and 250 locations and $20 million to $500 million in annual revenue, and we opportunistically invest in properties leased to smaller companies, which we define as regional operators with fewer than 10 locations and less than $20 million in annual revenue. Although it is not our primary investment focus, we will opportunistically consider investing in properties leased to larger companies. While the creditworthiness of most of our targeted tenants is not rated by a nationally recognized statistical rating organization, we seek to invest in properties leased to companies in our targeted middle-market that we determine have attractive credit characteristics and stable operating histories.

6

Despite the size of the overall commercial retail real estate market, the market for single-tenant, net leased commercial real estate is highly fragmented. In particular, we believe that there is a limited number of participants addressing the long-term capital needs of unrated middle-market and smaller companies. We believe that many publicly traded REITs that invest in net leased properties concentrate their investment activity in properties leased to tenants whose creditworthiness has been rated by a nationally recognized statistical rating organization, which tend to be larger and often publicly traded organizations, with the result that unrated, middle-market and smaller companies are relatively underserved and offer us an opportunity to make investments with attractive risk-adjusted return potential.

Furthermore, we believe that there is strong demand for our net-lease capital solutions among middle-market and smaller owner-operators that own commercial real estate, in part, due to the bank regulatory environment, which, since the turmoil in the housing and mortgage industries from 2007-2009, has generally been characterized by increased scrutiny and regulation. We believe that this environment has made commercial banks less responsive to the long-term capital needs of unrated middle-market and small companies, many of which have historically depended on commercial banks for their financing. Accordingly, we see an attractive opportunity to address capital needs of these companies by offering them an efficient alternative for financing their real estate versus accessing traditional mortgage or bank debt and/or using their own equity.

As a result, while we believe our net-lease financing solutions may be attractive to a wide variety of companies, we believe our most attractive opportunity is owning properties net leased to middle-market and smaller companies that are generally unrated and have less access to efficient sources of long-term capital than larger, credit-rated companies.

Our Competitive Strengths

We believe the following competitive strengths distinguish us from our competitors and allow us to compete effectively in the single-tenant, net-lease market:

•Carefully Constructed Portfolio of Properties Leased to Service-Oriented or Experience-Based Tenants.   We have strategically constructed a portfolio that is diversified by tenant, industry, concept and geography and generally avoids exposure to businesses that we believe are subject to pressure from e-commerce. Our properties are generally subject to long-term net leases that we believe provide us with a stable and predictable base of revenue from which to grow our portfolio. As of December 31, 2022, our portfolio consisted of 1,653 properties, with annualized base rent of $297.2 million, which was purposefully selected by our management team in accordance with our focused and disciplined investment strategy. Our portfolio is diversified with 350 tenants operating 538 different concepts across 48 states and in 16 distinct industries. None of our tenants contributed more than 3.4% of our annualized base rent as of December 31, 2022, and our strategy targets a scaled portfolio that, over time, allows us to derive no more than 5.0% of our annualized base rent from any single tenant or more than 1.0% from any single property.

We focus on investing in properties leased to tenants operating in the service-oriented or experience-based businesses noted above. As of December 31, 2022, 93.0% of our annualized base rent was attributable to tenants operating service-oriented and experience-based businesses.

We believe that our portfolio's diversity and our rigorous underwriting decrease the impact on us of an adverse event affecting an individual tenant, industry or region, and our focus on leasing to tenants in industries where operating properties are essential to generating their revenues and profits (and that we believe are well-positioned to withstand competition from e-commerce businesses), increases the stability and predictability of our rental revenue.

•Differentiated Investment Strategy.    We seek to acquire and lease freestanding, single-tenant commercial real estate facilities where a tenant services its customers and conducts activities at the property that are essential to the generation of its sales and profits. We primarily seek to invest in properties leased to middle-market companies that we determine have attractive credit characteristics and stable operating histories. We believe middle-market companies are underserved from a capital perspective and that we can offer them attractive real estate financing solutions while allowing us to enter into leases that provide us with attractive risk-adjusted returns. Furthermore, many net lease transactions with middle-market companies involve properties that are individually relatively small, which allows us to avoid concentrating a large amount of capital in individual properties. We maintain close relationships with our tenants, which we believe allows us

7

to source additional investments and become the capital provider of choice as our tenants' businesses grow and their real estate needs increase.

•Disciplined Underwriting Leading to Strong Portfolio Characteristics.    We generally seek to invest in single assets or portfolios of assets through transactions which range in aggregate purchase price from $2 million to $100 million. Our size allows us to focus on investing in a segment of the market that we believe is underserved from a capital perspective and where we can originate or acquire relatively smaller assets on attractive terms that provide meaningful growth to our portfolio. In addition, we seek to invest in commercially desirable properties that are suitable for use by different tenants, offer attractive risk-adjusted returns and possess characteristics that reduce our real estate investment risks. As of December 31, 2022:

•Our leases had a weighted average remaining lease term (based on annualized base rent) of 13.9 years, with only 6.1% of our annualized base rent attributable to leases expiring prior to January 1, 2028;

•Master leases contributed 65.0% of our annualized base rent;

•Our portfolio's weighted average rent coverage ratio was 4.0x, with leases contributing 72.6% of our annualized base rent having rent coverage ratios in excess of 2.0x (excluding leases that do not report unit-level financial information);

•Our portfolio was 99.9% occupied;

•Leases contributing 98.2% of our annualized base rent provide for increases in future annual base rent that generally range from 1.0% to 4.0% annually, with a weighted average annual escalation equal to 1.6% of base rent; and

•Leases contributing 94.9% of annualized base rent were triple-net.

•Growth-Oriented Balance Sheet Scalable Infrastructure.  We believe our financial position and existing infrastructure support our external growth strategy. As of December 31, 2022, we had the ability to borrow up to $600.0 million under our $600.0 million senior unsecured revolving credit facility that matures in April 2026.

As of December 31, 2022, we had $1.4 billion of gross debt outstanding, with a weighted average maturity of 5.2 years, and net debt of $1.4 billion. For the year ended December 31, 2022, our net income was $134.7 million, our EBITDAre was $251.4 million and our Annualized Adjusted EBITDAre was $294.8 million. Our ratio of net debt to Annualized Adjusted EBITDAre was 4.6x as of December 31, 2022. Net debt, EBITDAre and Annualized Adjusted EBITDAre are non-GAAP financial measures. For definitions of net debt, EBITDAre and Annualized Adjusted EBITDAre, reconciliations of these measures to total debt and net income, respectively, the most directly comparable financial measures calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), and a statement of why our management believes the presentation of these non-GAAP financial measures provide useful information to investors and a discussion of how management uses these measures, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations'—Non-GAAP Financial Measures."

We also maintain an ATM Program and, as of December 31, 2022, we had the ability to sell additional common stock thereunder with an aggregate gross sales price of up to $424.6 million.

•Experienced and Proven Management Team.  Our senior management has significant experience in the net lease industry and a track record of growing net lease businesses to significant scale.

Our senior management team has been responsible for our focused and disciplined investment strategy and for developing and implementing our investment sourcing, underwriting, closing and asset management infrastructure, which we believe can support significant investment growth without a proportionate increase in our operating expenses. As of December 31, 2022, 87.6% of our portfolio's annualized base rent was attributable to internally originated sale-leaseback transactions and 85.8% was acquired from parties who had previously engaged in one or more transactions that involved a member of our senior management team (including operators and tenants and other participants in the net lease industry, such as brokers, intermediaries and financing sources). The substantial experience, knowledge and relationships of our senior

8

leadership team provide us with an extensive network of contacts that we believe allows us to originate attractive investment opportunities and effectively grow our business.

•Scalable Platform Allows for Significant Growth.    Building on our senior leadership team's experience in net lease real estate investing, we have developed leading origination, underwriting, financing, and property management capabilities. Our platform is scalable, and we seek to leverage our capabilities to improve our efficiency and processes to continue to seek attractive risk-adjusted growth. While we expect that our general and administrative expenses could increase as our portfolio grows, we expect that such expenses as a percentage of our portfolio and our revenues will decrease over time due to efficiencies and economies of scale. During the years ended December 31, 2022, 2021 and 2020, we invested in properties with aggregate investment values of $937.4 million, $974.0 million and $602.8 million, respectively.

•Extensive Tenant Financial Reporting Supports Active Asset Management.    We seek to enter into leases that obligate our tenants to periodically provide us with corporate and/or unit-level financial reporting, which we believe enhances our ability to actively monitor our investments, actively evaluate credit risk, negotiate lease renewals and proactively manage our portfolio to protect stockholder value. As of December 31, 2022, leases contributing 98.6% of our annualized base rent required tenants to provide us with specified unit-level financial information.

Our Business and Growth Strategies

Our primary business objective is to maximize stockholder value by generating attractive risk-adjusted returns through owning, managing and growing a diversified portfolio of commercially desirable net lease properties. We intend to pursue our objective through the following business and growth strategies.

•Structure and Manage Our Diverse Portfolio with Focused and Disciplined Underwriting and Risk Management.    We seek to maintain the stability of our rental revenue and maximize the long-term return on our investments while continuing our growth by using our focused and disciplined underwriting and risk management expertise. When underwriting assets, we emphasize commercially desirable properties, with strong operating performance, healthy rent coverage ratios and tenants with attractive credit characteristics.

Leasing.    In general, we seek to enter into leases with (i) relatively long terms (typically with initial terms of 15 years or more and tenant renewal options); (ii) attractive rent escalation provisions; (iii) healthy rent coverage ratios; and (iv) tenant obligations to periodically provide us with financial information, which provides us with information about the operating performance of the leased property and/or tenant and allows us to actively monitor the security of payments under the lease on an ongoing basis. We strongly prefer to use master lease structures, pursuant to which we lease multiple properties to a single tenant on a unitary (i.e., "all or none") basis. In addition, in the context of our sale-leaseback investments, we generally seek to establish contract rents that are at or below prevailing market rents, which we believe enhances tenant retention and reduces our releasing risk if a lease is rejected in a bankruptcy proceeding or expires.

Diversification.    We monitor and manage the diversification of our portfolio in order to reduce the risks associated with adverse developments affecting a particular tenant, property, industry or region. Our strategy targets a portfolio that, over time, will (i) derive no more than 5% of its annualized base from any single tenant or more than 1% of its annualized base rent from any single property, (ii) be primarily leased to tenants operating in service-oriented or experience-based businesses and (iii) avoid significant geographic concentration. While we consider these criteria when making investments, we may be opportunistic in managing our business and make investments that do not meet one or more of these criteria if we believe the opportunity presents an attractive risk-adjusted return.

Asset Management.    We are an active asset manager and regularly review each of our properties to evaluate, various factors, including, but not limited to, changes in the business performance at the property, credit of the tenant and local real estate market conditions. Among other things, we use Moody's Analytics RiskCalc ("RiskCalc") to proactively detect credit deterioration. RiskCalc is a model for predicting private company defaults based on Moody's Analytics Credit Research Database. Additionally, we monitor market rents relative to in-place rents and the amount of tenant capital expenditures in order to refine our tenant retention and alternative use assumptions. Our management team utilizes our internal credit diligence to monitor the credit profile of each of our tenants on an ongoing basis. We believe that this proactive approach

9

enables us to identify and address issues in a timely manner and to determine whether there are properties in our portfolio that are appropriate for disposition.

In addition, as part of our active portfolio management, we may selectively dispose of assets that we conclude do not offer a return commensurate with the investment risk, contribute to unwanted geographic, industry or tenant concentrations, or may be sold at a price we determine is attractive. During the year ended December 31, 2022, we sold 52 properties for net sales proceeds of $155.6 million, including one property that was vacant. We believe that our underwriting processes and active asset management enhance the stability of our rental revenue by reducing default losses and increasing the likelihood of lease renewals.

•Focus on Relationship-Based Sourcing to Grow Our Portfolio by Originating Sale-Leaseback Transactions.    We plan to continue our disciplined growth by originating sale-leaseback transactions and opportunistically making acquisitions of properties subject to net leases that contribute to our portfolio’s tenant, industry and geographic diversification. As of December 31, 2022, 87.6% of our portfolio’s annualized base rent was attributable to internally originated sale-leaseback transactions and 85.8% was acquired from parties who had previously engaged in transactions that involved a member of our senior management team (including operators and tenants and other participants in the net lease industry, such as brokers, intermediaries and financing sources). In addition, we seek to enhance our relationships with our tenants to facilitate investment opportunities, including selectively agreeing to reimburse certain of our tenants for development costs at our properties in exchange for contractually specified rent that generally increases proportionally with our funding. We believe our senior management team’s reputation, in-depth market knowledge and extensive network of long-standing relationships in the net lease industry provide us access to an ongoing pipeline of attractive investment opportunities.

•Focus on Middle-Market Companies in Service-Oriented or Experience-Based Businesses.    We primarily focus on investing in properties that we lease on a long-term, triple-net basis to middle-market companies that we determine have attractive credit characteristics and stable operating histories. Properties leased to middle-market companies may offer us the opportunity to achieve superior risk-adjusted returns, as a result of our extensive and disciplined credit and real estate analysis, lease structuring and portfolio composition. We believe our capital solutions are attractive to middle-market companies as such companies often have limited financing options, as compared to larger, credit rated organizations. We also believe that, in many cases, smaller transactions with middle-market companies will allow us to maintain and grow our portfolio's diversification. Middle-market companies are often willing to enter into leases with structures and terms that we consider attractive (such as master leases and leases that require ongoing tenant financial reporting) and believe contribute to the stability of our rental revenue.

In addition, we emphasize investment in properties leased to tenants engaged in service-oriented or experience-based businesses, such as car washes, restaurants (primarily quick service restaurants), early childhood education, medical and dental services, convenience stores, automotive services, equipment rental, entertainment and health and fitness, as we believe these businesses are generally more insulated from e-commerce pressure than many others.

•Internal Growth Through Long-Term Triple-Net Leases That Provide for Periodic Rent Escalations.    We seek to enter into long-term (typically with initial terms of 15 years or more and tenant renewal options), triple-net leases that provide for periodic contractual rent escalations. As of December 31, 2022, our leases had a weighted average remaining lease term of 13.9 years (based on annualized base rent), with only 6.1% of our annualized base rent attributable to leases expiring prior to January 1, 2028, and 98.2% of our leases (based on annualized base rent) provided for increases in future base rent at a weighted average of 1.6% per year.

•Actively Manage Our Balance Sheet to Maximize Capital Efficiency.    We seek to maintain a prudent balance between debt and equity financing and to maintain funding sources that lock in long-term investment spreads and limit interest rate sensitivity. As of December 31, 2022, we had $1.4 billion of gross debt outstanding and $1.4 billion of net debt outstanding. Our net income for the year ended December 31, 2022 was $134.7 million, our EBITDAre was $251.4 million, our Annualized Adjusted EBITDAre was $294.8 million and our ratio of net debt to Annualized Adjusted EBITDAre was 4.6x. Over time, we believe an appropriate ceiling for net debt is generally less than six times our Annualized Adjusted EBITDAre. We have access to multiple sources of debt capital, including, but not limited to, the investment grade-rated unsecured bond market and bank debt, through our revolving credit facility and our unsecured term loan facilities. Net debt,

10

EBITDAre and Annualized Adjusted EBITDAre are non-GAAP financial measures. See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations'—Non-GAAP Financial Measures."

Competition

We face competition for acquisitions of real property from other investors, including traded and non-traded public REITs, private equity investors and institutional investment funds. Some of our competitors have greater economies of scale, lower costs of capital, access to more sources of capital, a larger base of operating resources and greater name recognition than we do, and the ability to accept more risk. We also believe that competition for real estate financing comes from middle-market business owners themselves, many of whom have had a historic preference to own, rather than lease, the real estate they use in their businesses. This competition may increase the demand for the types of properties in which we typically invest and, therefore, may reduce the number of suitable investment opportunities available to us and increase the prices paid for such investment properties. This competition will increase if investments in real estate become more attractive relative to other forms of investment.

As a landlord, we compete in the multi-billion dollar commercial real estate market with numerous developers and owners of properties, many of which own properties similar to ours in the same markets in which our properties are located. If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose our tenants or prospective tenants, and we may be pressured to reduce our rental rates or to offer substantial rent abatements, tenant improvement allowances, early termination rights or below-market renewal options in order to retain tenants when our leases expire.

Employees

As of December 31, 2022, we had 37 full-time employees. Our staff is mostly comprised of professionals engaged in originating, underwriting and closing investments; portfolio asset management; portfolio servicing (e.g., collections, property tax compliance, etc.); and accounting, financial reporting, cash management and capital markets activities. Women comprise 43% of our employees and hold approximately 47% of our management positions, providing significant leadership at our company, and minorities comprise approximately 23% of our employees and 18% of our management team. Our commitment to diversity also extends to our board of directors, as three of its eight members, or approximately 38%, are women. Additionally, we have a consistent and strong record of hiring veterans of the U.S. military, including our chief executive officer.

We seek to provide a dynamic work environment that promotes the retention and development of our employees, and is a differentiating factor in our ability to attract new talent. We strive to offer our employees attractive and equitable compensation, regular opportunities to participate in professional development activities, outlets for civic engagement and reasonable flexibility to allow a healthy work/life balance.

We value equal opportunity in the workplace and fair employment practices. We have built an inclusive culture that encourages, supports and celebrates our diverse employee population. We endeavor to maintain a workplace that is free from discrimination or harassment on the basis of color, race, sex, national origin, ethnicity, religion, age, disability, sexual orientation, gender identification or expression, or any other status protected by applicable law. We conduct annual training in an effort to ensure that all employees remain aware of and help prevent harassment and discrimination.

Our compensation program is designed to attract and retain talent, and align our employee’s efforts with the interests of all of our stakeholders. Factors we evaluate in connection with hiring, developing, training, compensating and advancing individuals include, but are not limited to, qualification, performance, skill and experience. Our employees are fairly compensated based on merit, without regard to color, race, sex, national origin, ethnicity, religion, age, disability, sexual orientation, gender identification or expression, or any other status protected by applicable law.

Environmental, Social and Governance (ESG)

We believe that responsible and effective corporate governance, a positive corporate culture, good corporate citizenship, and the promotion of sustainability initiatives are critical to our ability to create long-term stockholder value. EPRT is committed to conducting its business in accordance with the highest ethical standards. We take our

11

responsibilities to all of our stakeholders, including our stockholders, creditors, employees, tenants, and business relationships, very seriously. We are dedicated to being trusted stewards of capital and also providing our employees with a rewarding and dynamic work environment.

Overall, our commitment to ESG and our strategy for pursuing the goals we’ve established to demonstrate that commitment include the following:

a.Accountability and Transparency. Our Board of Directors ("Board") and our management team are committed to strong corporate governance. As stewards of our stockholder’s capital, we are committed to accountability and transparency regarding our ESG efforts;

b.Reducing our Carbon Footprint. Implement sustainability upgrades at our corporate headquarters and our income properties to reduce our carbon footprint;

c.Expanding our Relationships with our Tenants through Sustainability. Implement sustainability upgrades at our properties to positively impact our tenants' operations and prospects for success; and

d.Our People are EPRT. Our diversity is our strength, creating an inclusive work environment is our culture, and all of our employees are owners, thus 100% aligned with our fellow stockholders.

Our ESG goals include the following:

a.Oversight. Maintain strong oversight and visibility over our ESG strategy and initiatives led by our independent and experienced Board, and specifically our Nominating and Corporate Governance Committee;

b.Reporting. Publish our inaugural Corporate Responsibility Report during the first quarter of 2023, aligned with the Sustainability Accounting Standards Board and The Financial Stability Board Task Force on Climate-related Financial Disclosure indices;

c.Measurement. Establish the carbon footprint of our portfolio, specifically our Scope 3 emissions, as we have immaterial Scope 1 and 2 emissions;

d.Structure. Continue to enhance our robust cybersecurity program including using third-party experts to facilitate our system penetration testing;

e.Engagement. Perform a survey of our tenants in 2023 to increase our understanding of their sustainability initiatives, expand our tenant engagement and understand how we can continue to contribute to our tenants' operational effectiveness;

f.Implementation. Continue to implement energy efficiency upgrades throughout our income property portfolio;

g.Equity. Continue to invest in our employees through our various benefit programs and incentive structures that maintain our alignment with our stockholders at an employee level;

h.Diversity. Continue to ensure that diversity is at the forefront of our hiring practices and maintained as a key input to our operations; and

i.Inclusion. Maintain our annual employee survey process to ensure consistent engagement with our team and promote our understanding of our work environment and opportunities for improvement.

Governance

Our approach to ESG begins with strong corporate governance. We believe that the structure of our Board, its policies and practices and its oversight role are the overarching indicators of EPRT’s commitment to accountability regarding ESG. We are committed to managing our Company for the benefit of all of our stakeholders and achieving long-term stockholder value. Maintaining effective corporate governance is a critical component of our Company.

12

Importantly, we have a Board that is diverse and independent, notably including, but not limited to, these key attributes:

a.Independence: Nearly 90% (all but one) of our Board is comprised of independent directors.

b.Tenure: We value board refreshment, and the average tenure of our Board is less than 4 years.

c.Diversity: We demonstrably value gender and racial/ethnic diversity on our Board; nearly 40% of our Board is female and 13% (1 director) represent an ethnic minority.

We value diversity, not simply gender or minority representation, but experience and professional qualifications. Our Board leads by example in our ESG efforts.

In addition, the following are additional elements of our corporate governance that are key considerations underlying our commitment to ESG:

a.We Have an Independent Non-Executive Board Chairman. We separate the roles of Chairman and Chief Executive Officer and have an independent non-executive Chairman of the Board.

b.Our Board Committees Are Fully Independent. Each member of our Audit, Compensation and Nominating and Corporate Governance Committees is an independent director.

c.Our Independent Directors Meet Without Management. Our independent directors hold regular executive sessions without management present.

d.We Do Not Have a Staggered Board. We hold annual elections for all our directors.

e.We Have an Active and Engaged Nominating and Corporate Governance Committee. Our Nominating and Corporate Governance Committee plays an active role in managing our corporate governance and our risk management function, including environmental and sustainability initiatives, and developing, adopting and monitoring our corporate policies, processes and procedures in compliance with applicable rules and regulations of the Securities and Exchange Commission (“SEC”) and the New York Stock Exchange (“NYSE”).

f.We Assess Board Performance. We conduct annual assessments of our Board and Board committees.

g.Whistleblower Protection. We have implemented and updated our “whistleblower” policy that allows directors, officers and employees to file reports on a confidential and anonymous basis regarding issues of impropriety, violations of law, violations of corporate or other policies, or unethical business practices.

h.Our Stockholders Have the Authority to Amend our Bylaws. In November of 2020, we adopted amended and restated bylaws that permit stockholders, by the affirmative vote of a majority of the votes entitled to be cast on the matter, to amend our bylaws, which power was previously vested exclusively in our Board.

Ethical Business Practices. Our Board has adopted Corporate Governance Guidelines and a Code of Business Conduct and Ethics that applies to all of our officers, directors and employees. In addition, we have adopted other business and workplace policies that apply to all of our directors, officers, employees, vendors and service providers that seek to create a culture that values high ethical standards, including integrity, honesty,

13

transparency and compliance with applicable laws, rules and regulations. In particular the following policies, all of which are available on our website, reflect our commitment to ethical business practices:

a.Whistleblower Policy;

b.Insider Trading Policy;

c.Human Rights Policy;

d.Executive Compensation Clawback Policy; and

e.Vendor Code of Conduct.

Transparency in our Reporting and Disclosures. We are committed to being a leader in providing detailed public disclosure about our business, promoting transparency and accountability. Our commitment to robust and transparent disclosures includes, but is not limited to, our filings with the SEC, our quarterly earnings releases and the associated supplemental information reporting packages, our corporate responsibility report, and our investor presentations.

Investor Engagement. We value investor input and are committed to maintaining an active dialogue with our investors through extensive outreach. During 2022, we held over 165 virtual or face-to-face meetings with investors, in addition to attending 11 industry/REIT conferences.

Stock Ownership Guidelines. We have adopted a stock ownership policy applicable to our executive officers and independent directors under which each individual is expected to maintain beneficial ownership of shares of our common stock (including securities convertible into or exercisable or exchangeable for common stock) with a value equal to a specified multiple of their annual base cash compensation.

No Hedging or Pledging. We have policies that prohibit our officers, directors and employees from hedging their investment in our stock, and prohibit our directors and executive officers from pledging or otherwise encumbering their investment in our securities as collateral for indebtedness.

Opted out of MUTA. We have opted out of certain provisions of the Maryland General Corporation Law that may make it more difficult for or prevent a change in control. We have opted out of the control share acquisition and the business combination statutes in the Maryland General Corporation Law, and we may not opt back into these without stockholder approval. In addition, we are prohibited from adopting certain takeover protections, including classifying the Board, without first obtaining stockholder approval.

No “Poison Pill.” We do not maintain a stockholder rights plan (commonly referred to as a “poison pill”). We will not adopt one in the future without (a) the approval of our stockholders or (b) seeking ratification from our stockholders within 12 months after adoption of the plan if the Board determines, in the exercise of its duties under applicable law, that it is in the Company’s best interest to adopt a rights plan without the delay of seeking prior stockholder approval.

One of the key responsibilities of our Board is informed oversight of our risk management process. Our Board administers this oversight function directly, with support from its three standing committees, the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee, each of which is comprised solely of non-employee, independent directors and addresses risks specific to its respective areas of oversight.

Audit Committee. The principal functions of our Audit Committee include oversight relating to:

a.The integrity of our financial statements;

b.Our compliance with legal and regulatory requirements;

c.The evaluation of the qualifications and independence of our independent registered public accounting firm; and

d.The performance of our internal audit function.

The Audit Committee is also responsible for engaging, evaluating, compensating and overseeing an independent registered public accounting firm charged with auditing our financial statements, reviewing the

14

independence of the independent registered public accounting firm, considering the range of audit and non-audit fees and reviewing the adequacy of our internal accounting controls.

Compensation Committee. The principal functions of our Compensation Committee include:

a.Assisting the independent directors in discharging the Board’s responsibilities relating to compensation of the Company’s executive officers and directors and approving individual executive officer compensation intended to attract, retain and appropriately reward employees in order to motivate their performance in the achievement of the Company’s business objectives and align their interests with the long-term interests of the Company’s stockholders; and

b.Reviewing and recommending to the Board compensation plans, policies and programs.

Nominating and Corporate Governance Committee. The principal functions of our Nominating and Corporate Governance Committee include:

a.Identifying, evaluating and recommending individuals qualified to become members of the Board;

b.Selecting, or recommending that the Board select, the director nominees to stand for election at each annual meeting of stockholders or to fill vacancies on the Board;

c.Developing and recommending to the Board a set of corporate governance guidelines applicable to the Company;

d.Direct oversight of the Company’s ESG strategy and implementation of initiatives, including but not limited to, the Company's commitment to environmental stewardship and sustainability, corporate social responsibility and effective corporate governance; and

e.Overseeing the annual performance evaluation of the Board and its committees and management.

In addition, the Nominating and Corporate Governance Committee monitors our overall risk management process at an enterprise level, and periodically evaluates various risks and the processes in place to monitor and mitigate such risks, including portfolio risks, operational risks, balance sheet risks and human capital risks. As a part of its oversight function, the Nominating and Corporate Governance Committee also reviews quarterly management reports addressing various matters including ESG and governance matters, and our progress in achieving related objectives.

Environmental Sustainability

We recognize that our commercial real estate assets can substantially impact the environment and the health and safety of building occupants. We believe that being aware of and addressing these issues are important aspects of maintaining a successful and sustainable business. Our commitment to environmental stewardship starts at our corporate headquarters in Princeton, New Jersey, and extends to our portfolio of income-producing properties, our investment and leasing practices, and to our tenants. We are committed to expanding and enhancing our efforts to incorporate sustainability initiatives in our corporate governance and applicable business processes, including underwriting our investments, asset management activities, and disclosure and reporting practices.

Our position on sustainability is that reducing our carbon footprint and, where possible, that of our tenants is a strategic imperative, not simply because we believe it’s the right thing to do, but because we believe it is consistent with our core business objective of maximizing stockholder value and it also provides opportunities for us to help our tenants produce operating efficiencies and customer attraction opportunities. We are committed to environmental stewardship and operating our business in a sustainable manner. Accordingly, our investment, leasing and asset management practices are informed by our commitment to operate in a sustainable manner that we believe will support long-term value.

We are focused on advancing and continuing to develop our sustainability agenda.

Our Properties. As a net-lease REIT, we do not control the day-to-day operations and activities at our properties that are leased to tenants. Generally, our tenants have exclusive control over, and the ability to institute energy conservation and environmental management programs at, our properties. While we are not able to mandate the sustainability practices of our tenants, our leases generally require our tenants to fully comply with all

15

applicable environmental laws, rules and regulations, and our asset management department actively monitors our properties in an effort to ensure that tenants are meeting their obligations with respect to environmental matters. Prior to acquiring a property, we obtain a Phase I environmental site assessment to seek to identify any environmental issues and structure the related lease accordingly.

Our Green Lease. The properties in our portfolio are generally leased to our tenants under long-term triple net leases, which give our tenants exclusive control over and the ability to institute energy conservation and environmental management programs at our properties. In December 2021, we modified our standard lease form, which we use in our sale-leaseback transactions, to provide us with the contractual right to make sustainability improvements to our properties and to require our tenants to periodically provide us, at least annually, with information regarding their resource consumption, such as electricity and water usage (the “Green Lease”). We believe that being aware of and, to the extent that we are able, addressing environmental issues are important aspects of maintaining a business that is successful and sustainable over the long-term. Accordingly, we believe that supporting our tenants’ efforts to implement sustainability initiatives enhances their operations and prospects for success and therefore our own. As of December 31, 2022, approximately 80% of our 299 new property investments     in 2022 were subject to our Green Lease.

Sustainability Partnership. In September 2022, we entered into a partnership with Budderfly Inc. (“Budderfly”), a growing Energy-Efficiency-as-a-Service ("EEaaS") provider in the United States. The Essential Sustainability Program intends to deploy significant energy infrastructure improvements aimed to improve the energy efficiency at our buildings and to deliver operating savings to our tenants through a guaranteed monthly utility usage reduction. Through the Essential Sustainability Program, we will invest capital in energy-efficient technologies and equipment upgrades that Budderfly will install and manage at no cost to our tenants. A 6% energy cost savings per month is passed through to the tenant. The sustainability upgrades will include, but are not limited to: the installation of LED lighting and lighting controls, higher efficiency HVAC units along with HVAC controls and monitoring, refrigeration controls and monitoring, solar solutions, and net metering and controls through Budderfly’s Facility Smart Grid System. As part of the Essential Sustainability Partnership, for each agreement our tenants enter into with Budderfly and for which we invest the capital for the energy efficiency upgrades, Budderfly will identify, apply for and obtain payments, grants, credits or similar financial incentives related to the upgrades which will contribute to the return we achieve on our investment.

Our Headquarters. In addition to assisting our tenants with their sustainability initiatives, we recognize that our Company has a direct carbon footprint at space occupied by us that we are committed to reducing. We emphasize sustainability at our corporate headquarters, lease space in a building that is certified under the EPA’s Energy Star certification program and implement sustainability measures that seek to reduce our environmental impact and carbon footprint, such as:

a.Using energy efficient lighting and automated lighting control systems;

b.Minimizing HVAC and heating run times;

c.Maintaining an active single-stream recycling program for paper, plastic and cans;

d.Purchasing Energy Star certified computers, monitors and printers;

e.Using Energy Star power management settings on our computers and monitors;

f.Disposing all ink cartridges utilizing the manufacturer’s recycling program; and

g.Providing water dispensing machines and eliminating the use of plastic and styrofoam cups and plastic water bottles.

Social Matters: Company Culture

We seek to provide a dynamic, rewarding work environment that promotes the retention and career development of our employees and is a differentiating factor in our ability to attract new talent. We strive to offer our employees attractive and equitable compensation, regular opportunities to participate in professional development activities, outlets for civic engagement, and reasonable flexibility to allow a healthy work-life balance. Our employees further our commitment to social responsibility through their efforts to become involved in outside organizations that promote education, environmental and social well-being.

16

We are committed to maximizing value for our stockholders and believe it’s essential for all of our employees to be aligned in that commitment. For that reason, all of our employees participate in the annual opportunity to benefit from our equity incentive program. All of our employees are stockholders in EPRT.

We have built a diverse and inclusive culture that encourages, supports and celebrates our employees' diverse voices and experiences. We believe a diverse employee base enhances our execution as a company, encourages innovative thinking, and increases alignment with our tenants and the community around us. The following charts highlight our workforce diversity as of December 31, 2022:

Diversity, equity and inclusion are key to executing our business plan and generating differentiated results. Women comprise 43% of our employees and hold approximately 47% of our management positions, providing significant leadership at our company, and minorities comprise approximately 23% of our employees and 18% of our management team.

We value equal opportunity in the workplace and fair employment practices. We have a talented and diverse group of employees, and we are committed to maintaining an inclusive and rewarding work environment. Among the programs and benefits that we offer employees are:

a.Competitive market-based compensation;

b.We cover nearly 100% of the cost of health benefits for each employee as part of providing comprehensive medical, dental and vision insurance for all employees and their families;

c.A 401(k) plan with a matching contribution of 100% up to 6% of amounts deferred;

d.We also utilize a “personal time off” (or PTO) program for our employees, which allows for, at a minimum, four weeks of paid time off per year per employee;

e.Access to a free onsite gym;

f.Continuing education reimbursement;

g.Paid internship program; and

h.Ten paid company holidays.

Our commitment to maintaining a positive work environment extends beyond offering attractive compensation and opportunities for professional development. We actively promote a dynamic and inclusive work environment by:

•Employee Engagement. We hold weekly all-hands staff meetings virtually or at our corporate headquarters, where developments in, and objectives of, our business are broadly communicated. After each quarter, we hold a company-wide meeting, where we summarize overall corporate achievements and acknowledge significant employee contributions. At our weekly and quarterly meetings, all employees are encouraged to provide input into the development of our business and voice any suggestions or concerns that they may have.

•Team Building. We believe that fostering a collegial work environment is an important element of driving long-term success. Accordingly, we strive to develop a supportive work environment through various events, such as Company-sponsored sports teams, an annual summer outing and a holiday celebration near year end, which are designed to foster an increasing level of collegiality among our employees and develop a shared sense of mission.

17

•Civic Engagement. We are committed to improving the community around us, and we believe that giving back is an important part of being a responsible corporate citizen. We actively support many organizations in the greater Princeton, New Jersey area surrounding our corporate headquarters, and we encourage our employees to volunteer with organizations that are meaningful to them. We have been proud to support organizations such as:

a.The Capital Area YMCA;

b.The Victor Green Foundation (an organization that provides opportunity for underserved youth, by focusing on teaching and encouraging the value of continuing education, physical fitness and wellness and a positive character);

c.Better Beginnings Child Development Center (an organization that provides affordable childcare for working parents); and

d.Alex’s Lemonade Stand Foundation (an organization that seeks to cure childhood cancer and support families with children battling cancer).

Insurance

Our tenants are generally contractually required to maintain liability and property insurance coverage for the properties they lease from us pursuant to triple-net leases. Our leases generally require our tenants to name us (and any of our lenders that have a mortgage on the property leased by the tenant) as additional insureds on their liability policies and additional named insured and/or loss payee (or mortgagee, in the case of our lenders) on their property policies. Depending on the location of the property, other losses of a catastrophic nature, such as those caused by earthquakes and floods, may be covered by insurance policies that are held by our tenant with limitations such as large deductibles or co-payments that a tenant may not be able to meet. In addition, other losses of a catastrophic nature, such as those caused by wind/hail, hurricanes, terrorism or acts of war, may be uninsurable or not economically insurable. If there is damage to our properties that is not covered by insurance and such properties are subject to recourse indebtedness, we will continue to be liable for the indebtedness, even if these properties are irreparably damaged. See "Item 1A. Risk Factor-"Risks Related to Our Business and Properties-Insurance on our properties may not adequately cover all losses and uninsured losses could materially and adversely affect us."

In addition to being a named insured on our tenants' liability and property insurance policies, we separately maintain commercial insurance policies providing general liability and umbrella coverages associated with our portfolio. We also maintain full property coverage on all untenanted properties and other property coverage as may be required by our lenders, which are not required to be carried by our tenants under our leases.

Regulation and Requirements

Our properties are subject to various laws, ordinances and regulations, including those relating to fire and safety requirements, and affirmative and negative covenants and, in some instances, common area obligations. Compliance with applicable requirements may require modifications to our properties, and the failure to comply with applicable requirements could result in the imposition of fines or an award of damages to private litigants, as well as the incurrence of the costs of making modifications to attain compliance. Our tenants have primary responsibility for compliance with these requirements pursuant to our leases. We believe that each of our properties has the necessary permits and approvals.

Environmental Matters

Federal, state and local environmental laws and regulations regulate, and impose liability for, releases of hazardous or toxic substances, hazardous waste or petroleum products into the environment. Under various of these laws and regulations, a current or previous owner, operator or tenant of real estate may be required to investigate and clean up hazardous or toxic substances, hazardous wastes or petroleum product releases or threats of releases at the property, and may be held liable to a government entity or to third parties for property damage and for investigation, clean-up and monitoring costs incurred by those parties in connection with the actual or threatened contamination. These laws may impose clean-up responsibility and liability without regard to fault, or whether or not the owner, operator or tenant knew of or caused the presence of the contamination. The liability under these laws may be joint and several for the full amount of the investigation, clean-up and monitoring costs incurred or to be incurred or actions to be undertaken, although a party held jointly and severally liable may seek to obtain

18

contributions from other identified, solvent, responsible parties of their fair share toward these costs. These costs may be substantial, and can exceed the value of the property. In addition, some environmental laws may create a lien on the contaminated site in favor of the government for damages and costs it incurs in connection with the contamination. As the owner or operator of real estate, we also may be liable under common law to third parties for damages and injuries resulting from environmental contamination present at, or emanating from, the real estate. The presence of contamination, or the failure to properly remediate contamination, on a property may adversely affect the ability of the owner, operator or tenant to sell or rent that property or to borrow using the property as collateral, and may adversely impact our investment in that property.

Some of our properties contain, have contained, or are adjacent to or near other properties that have contained or currently contain storage tanks for the storage of petroleum products or other hazardous or toxic substances. Similarly, some of our properties were used in the past for commercial or industrial purposes, or are currently used for commercial purposes, that involve or involved the use of petroleum products or other hazardous or toxic substances, the generation and storage of hazardous waste, or that are adjacent to or near properties that have been or are used for similar commercial or industrial purposes. These operations create a potential for the release of petroleum products, hazardous waste or other hazardous or toxic substances, and we could potentially be required to pay to clean up any contamination. In addition, environmental laws regulate a variety of activities that can occur on a property, including the storage of petroleum products, hazardous waste, or other hazardous or toxic substances, air emissions, water discharges, hazardous waste generation, and exposure to lead-based paint. Such laws may impose fines or penalties for violations, and may require permits or other governmental approvals to be obtained for the operation of a business involving such activities. In addition, as an owner or operator of real estate, we can be liable under common law to third parties for damages and injuries resulting from the presence or release of petroleum products, hazardous waste, or other hazardous or toxic substances present at, or emanating from, the real estate. As a result of the foregoing, we could be materially and adversely affected.

Environmental laws also govern the presence, maintenance and removal of asbestos-containing material ("ACM"). Federal regulations require building owners and those exercising control over a building's management to identify and warn, through signs and labels, of potential hazards posed by workplace exposure to installed ACM in their building. The regulations also have employee training, record keeping and due diligence requirements pertaining to ACM. Significant fines can be assessed for violation of these regulations. As a result of these regulations, building owners and those exercising control over a building's management may be subject to an increased risk of personal injury lawsuits under common law by workers and others exposed to ACM. The regulations may affect the value of a building containing ACM in which we have invested. Federal, state and local laws and regulations also govern the removal, encapsulation, disturbance, handling and/or disposal of ACM when those materials are in poor condition or in the event of construction, remodeling, renovation or demolition of a building. These laws may impose liability for improper handling or a release into the environment of ACM and may provide for fines to, and for third parties to seek recovery from, owners or operators of real properties for personal injury or improper work exposure associated with ACM.

When excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Indoor air quality issues can also stem from inadequate ventilation, chemical contamination from indoor or outdoor sources, and other biological contaminants such as pollen, viruses and bacteria. Indoor exposure to airborne toxins or irritants above certain levels can be alleged to cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, the presence of significant mold or other airborne contaminants at any of our properties could require us to undertake a costly remediation program to contain or remove the mold or other airborne contaminants from the affected property or increase indoor ventilation. In addition, the presence of significant mold or other airborne contaminants could expose us to liability from our tenants, employees of our tenants or others if property damage or personal injury occurs.

Before completing any property acquisition, we obtain environmental assessments in order to identify potential environmental concerns at the property. These assessments are carried out in accordance with the Standard Practice for Environmental Site Assessments (ASTM Practice E 1527-13) as set by ASTM International, formerly known as the American Society for Testing and Materials, and generally include a physical site inspection, a review of relevant federal, state and local environmental and health agency database records, one or more interviews with appropriate site-related personnel, review of the property's chain of title and review of historical aerial photographs and other information on past uses of the property. These assessments are limited in scope. If, however, recommended in the initial assessments, we may undertake additional assessments such as soil and/or groundwater samplings or other limited subsurface investigations and ACM or mold surveys to test for substances

19

of concern. A prior owner or operator of a property or historic operations at our properties may have created a material environmental condition that is not known to us or the independent consultants preparing the site assessments. Material environmental conditions may have arisen after the review was completed or may arise in the future, and future laws, ordinances or regulations may impose material additional environmental liability. If environmental concerns are not satisfactorily resolved in any initial or additional assessments, we may obtain environmental insurance policies to insure against potential environmental risk or loss depending on the type of property, the availability and cost of the insurance and various other factors we deem relevant (i.e., an environmental occurrence affects one of our properties where our lessee may not have the financial capability to honor its indemnification obligations to us). Our ultimate liability for environmental conditions may exceed the policy limits on any environmental insurance policies we obtain, if any.

Generally, our leases require the lessee to comply with environmental law and provide that the lessee will indemnify us for any loss or expense we incur as a result of lessee's violation of environmental law or the presence, use or release of hazardous materials on our property attributable to the lessee. If our lessees do not comply with environmental law, or we are unable to enforce the indemnification obligations of our lessees, our results of operations would be adversely affected.

We cannot predict what other environmental legislation or regulations will be enacted in the future, how existing or future laws or regulations will be administered or interpreted or what environmental conditions may be found to exist on the properties in the future. Compliance with existing and new laws and regulations may require us or our tenants to spend funds to remedy environmental problems. If we or our tenants were to become subject to significant environmental liabilities, we could be materially and adversely affected.

Available Information

Our headquarters are located at 902 Carnegie Center Blvd., Suite 520, Princeton, New Jersey, 08540, where we lease approximately 13,453 square feet of office space from an unaffiliated third party. Our telephone number is (609) 436-0619 and our website is www.essentialproperties.com. Information contained on or hyperlinked from our website is not incorporated by reference into and should not be considered part of this Annual Report or our other filings with the the SEC.

We electronically file with the SEC our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, pursuant to Section 13(a) of the Exchange Act. You may obtain these reports and any amendments thereto free of charge on our website as soon as reasonably practicable after we file such material with, or furnish it to, the SEC, or by sending an email message to info@essentialproperties.com.

Item 1A. Risk Factors.

There are many factors that may adversely affect us, some of which are beyond our control. The occurrence of any of the following risks could materially and adversely impact our financial condition, results of operations, cash flows and liquidity, prospects, the market price of our common stock, and our ability to, among other things, service our debt and to make distributions to our stockholders. Some statements in this report including statements in the following risk factors constitute forward-looking statements. See "Special Note Regarding Forward-Looking Statements."

Risks Related to Our Business and Properties

We are subject to risks related to the ownership of commercial real estate that could adversely impact the value of our properties.

Factors beyond our control can affect the performance and value of our properties. Our performance is subject to risks incident to the ownership of commercial real estate, including: the possible inability to collect rents from tenants due to financial hardship, including tenant bankruptcies; changes in local real estate conditions and tenant demand for our properties; changes in consumer trends and preferences that reduce the demand for products and services offered by our tenants; adverse changes in national, regional and local economic conditions; inability to re-lease or sell properties upon expiration or termination of leases; environmental risks; the subjectivity and volatility of real estate valuations and the relative illiquidity of real estate investments compared to many other financial assets, which may limit our ability to modify our portfolio promptly in response to changes in economic or other conditions; changes in laws and governmental regulations, including those governing real estate usage and

20

zoning; acts of God, including natural disasters, which may result in uninsured losses; and acts of war or terrorism, including terrorist attacks.

Adverse changes in the U.S., global and local markets and related economic and supply chain conditions may materially and adversely affect us and the ability of our tenants to make rental payments to us.

Our results of operations, as well as the results of operations of our tenants, are sensitive to changes in U.S., global and local regions or markets that impact our tenants’ businesses. Adverse changes or developments in U.S., global or regional economic or supply chain conditions may impact our tenants’ financial condition, which may adversely impact their ability to make rental payments to us and may also impact their current or future leasing practices. During periods of supply chain disruption or economic slowdown and declining demand for real estate, we may experience a general decline in rents or increased rates of default under our leases. A lack of demand for rental space could adversely affect our ability to maintain our current tenants and attract new tenants, which may affect our growth, profitability and ability to pay dividends.

Our business is dependent upon our tenants successfully operating their businesses, and their failure to do so could materially and adversely affect us.

The success of our investments is materially dependent on the financial stability and operating performance of our tenants. The success of any one of our tenants is dependent on the location of the leased property, its individual business and its industry, which could be adversely affected by poor management, economic conditions in general, changes in consumer trends and preferences that decrease demand for a tenant's products or services or other factors over which neither they nor we have control.

At any given time, any tenant may experience a downturn in its business that may weaken its operating results or the overall financial condition of individual properties or its business as whole. As a result, a tenant may delay lease commencement, fail to make rental payments when due, decline to extend a lease upon its expiration, become insolvent or declare bankruptcy. We depend on our tenants to operate the properties leased from us in a manner which generates revenues sufficient to allow them to meet their obligations to us, including their obligations to pay rent, maintain certain insurance coverage, pay real estate taxes and maintain the properties in a manner so as not to jeopardize their operating licenses or regulatory status. The ability of our tenants to fulfill their obligations under our leases generally depends, to a significant degree, upon the overall profitability of their operations. Cash flow generated by certain tenant businesses may not be sufficient for a tenant to meet its obligations to us. We could be materially and adversely affected if a number of our tenants were unable to meet their obligations to us.

Our assessment that certain businesses are more insulated from e-commerce pressure than many others may prove to be incorrect, and changes in macroeconomic trends may adversely affect our tenants, either of which could impair our tenants' ability to make rental payments to us and materially and adversely affect us.

Technology and business conditions, particularly in the retail industry, are rapidly changing, and our tenants may be adversely affected by technological innovation, changing consumer preferences and competition from non-traditional sources. Businesses previously thought to be internet resistant, such as the retail grocery industry, have proven to be susceptible to competition from e-commerce. To the extent our tenants face increased competition from non-traditional competitors, such as internet vendors, some of which may have different business models and larger profit margins, their businesses could suffer. There can be no assurance that our tenants will be successful in meeting any new competition, and a deterioration in our tenants’ businesses could impair their ability to meet their lease obligations to us and materially and adversely affect us.

Properties occupied by a single tenant pursuant to a single-tenant lease subject us to significant risk of tenant default.

Our strategy focuses primarily on investing in single-tenant triple-net leased properties throughout the United States. The financial failure of, or default in payment by, a single tenant under its lease is likely to cause a significant or complete reduction in our rental revenue from that property and a reduction in the value of the property. This risk is magnified in situations where we lease multiple properties to a single tenant under a master lease. The default of a tenant that leases multiple properties from us or its decision not to renew its master lease upon expiration could materially and adversely affect us.

21

Periodically, we have experienced, and we may experience in the future, a decline in the fair value of our real estate assets, resulting in impairment charges that impact our financial condition and results of operations.

A decline in the fair market value of our long-lived assets may require us to recognize an impairment against such assets (as defined by the Financial Accounting Standards Board (“FASB”)) if certain conditions or circumstances related to an asset were to change and we were to determine that, with respect to any such asset, the cash flows no longer support the carrying value of the asset. The fair value of our long-lived assets depends on market conditions, including estimates of future demand for these assets, and the revenues that can be generated from such assets. When such a determination is made, we recognize the estimated unrealized losses through earnings and write down the depreciated cost of such assets to a new cost basis, based on the fair value of such assets on the date they are considered to be impaired. Such impairment charges reflect non-cash losses at the time of recognition, and subsequent dispositions or sales of such assets could further affect our future losses or gains, as they are based on the difference between the sales price received and the adjusted depreciated cost of such assets at the time of sale.

Geographic, industry and tenant concentrations reduce the diversity of our portfolio and make us more susceptible to adverse economic or regulatory developments in those areas or industries.

Geographic, industry and tenant concentrations expose us to greater economic or regulatory risks than if we owned a more diverse portfolio. Our business includes substantial holdings in the following states as of December 31, 2022 (based on annualized base rent): Texas (13.1%), Georgia (7.0%), Ohio (6.7%), Florida (6.5%) and Wisconsin (4.4%). We are susceptible to adverse developments in the economic or regulatory environments of the geographic areas in which we own substantial assets (or in which we may develop a substantial concentration of assets in the future), such as COVID-19 pandemic surges and measures intended to mitigate its spread, business layoffs or downsizing, industry slowdowns, relocations of businesses, increases in real estate and other taxes or costs of complying with governmental regulations. As of December 31, 2022, leases representing approximately 22.6% of our annualized base rent were with tenants in industries that have been particularly adversely affected by the COVID-19 pandemic, including entertainment (7.9% of annualized base rent), casual and family dining (8.7% of annualized base rent), health and fitness (3.9% of annualized base rent), movie theaters (1.4% of annualized base rent) and home furnishings (0.7% of annualized base rent). Accordingly, to the extent the pandemic measures intended to mitigate its spread or changed consumer preferences continue to adversely affect these industries, our tenants in these industries could fail to meet their obligations to us, and we could be required to provide further tenant concessions.

As of December 31, 2022, our five largest tenants contributed 10.3% of our annualized base rent, and our ten largest tenants contributed 18.0% of our annualized base rent. If one of these tenants, or another tenant that occupies a significant portion of our properties or whose lease payments represent a significant portion of our rental revenue, were to experience financial weakness or file for bankruptcy, it could have a material adverse effect on our business, financial condition, results of operations, cash flows and liquidity, and prospects.

As we continue to acquire properties, our portfolio may become more concentrated by geographic area, industry or tenant. If our portfolio becomes less diverse, our business will be more sensitive to the general economic downturn in a particular geographic area, to changes in trends affecting a particular industry and to the financial weakness, bankruptcy or insolvency of fewer tenants.

The vast majority of our properties are leased to unrated tenants whose credit is evaluated through our internal underwriting and credit analysis. However, the tools we use to measure credit quality, such as property-level rent coverage ratio, may not be accurate.

The vast majority of our properties are leased to unrated tenants whose credit is evaluated through our internal underwriting and credit analysis. Substantially all of our tenants are required to provide financial information to us periodically or, in some instances, at our request. As of December 31, 2022, leases contributing 98.6% of our annualized base rent required tenants to provide us with specified unit-level financial information and leases contributing 98.9% of our annualized base rent required tenants to provide us with corporate-level financial information.

We analyze the creditworthiness of our tenants using Moody’s Analytics RiskCalc, which provides an estimated default frequency (“EDF”) and a “shadow rating”, and a lease's property-level rent coverage ratio. Our

22

methods may not adequately assess the risk of an investment. An EDF score and a shadow rating are not the same as, and may not be as indicative of creditworthiness as, a rating published by a nationally recognized statistical rating organization. Our calculations of EDFs, shadow ratings and rent coverage ratios are unaudited and are based on financial information provided to us by our tenants and prospective tenants without independent verification on our part, and we assume the appropriateness of estimates and judgments that were made by the party preparing the financial information. If our assessment of credit quality proves to be inaccurate, we may be subject to defaults, and our cash flows may be less stable. The ability of an unrated tenant to meet its obligations to us may be more speculative than that of a rated tenant.

We may be unable to renew expiring leases with the existing tenants or re-lease the spaces to new tenants on favorable terms or at all.

Our results of operations depend to a significant degree on our ability to continue to lease our properties, including renewing expiring leases, leasing vacant space and re-leasing space in properties where leases are expiring and leasing vacant space. As of December 31, 2022, our occupancy was 99.9% and leases representing approximately 0.4% of our annualized base rent as of such date will expire prior to 2024. Current tenants may decline to renew leases and we may not be able to find replacement tenants. We cannot guarantee that leases that are renewed or new leases will have terms that are as economically favorable to us as the expiring leases, or that substantial rent abatements, tenant improvement allowances, early termination rights or below-market renewal options will not be offered to retain tenants or attract new tenants or that we will be able to lease a property at all. We may experience significant costs in connection with re-leasing a significant number of our properties, which could materially and adversely affect us.

The tenants that occupy our properties compete in industries that depend upon discretionary spending by consumers. A reduction in the willingness or ability of consumers to physically patronize and use their discretionary income in the businesses of our tenants and potential tenants could adversely impact our tenants’ business and thereby adversely impact our ability to collect rents and reduce the demand for our properties.

Most of our portfolio is leased to tenants operating service-oriented or experience-based businesses at our properties. As of December 31, 2022, the largest industries in our portfolio were restaurants (including quick service and casual and family dining), car washes, early childhood education, medical and dental services, automotive services, entertainment (including movie theaters), convenience stores, and equipment rental and sales. As of December 31, 2022, tenants operating in those industries represented approximately 84.9% of our annualized base rent. EquipmentShare, Captain D's, Chicken N Pickle, WhiteWater Express Car Wash, Festival Foods, Mister Car Wash, Spare Time, The Nest Schools, Zaxby's and Crunch Fitness represent the largest concepts in our portfolio. These types of businesses were severely affected by the COVID-19 pandemic, principally due to store closures or limitations on operations (which may be government-mandated or voluntary) and reduced economic activity. While restrictions have generally been lifted and many of our tenants' businesses have generally recovered from pandemic-induced declines, it is unclear if restrictions will be reinstituted in the future. The success of most of these businesses depends on the willingness of consumers to physically patronize their businesses and use discretionary income to purchase their products or services. To the extent the COVID-19 pandemic causes a secular change in consumer behavior that reduces patronage of service-based and/or experience-based businesses, many of our tenants would be adversely affected and their ability to meet their obligations to us could be further impaired. Additional adverse economic conditions and other developments that discourage consumer spending, such as high unemployment levels, wage stagnation, interest rates, inflation, tax rates and fuel and energy costs, may have an impact on the results of operations and financial conditions of our tenants and their ability to pay rent to us.

Our ability to realize future rent increases on some of our leases may vary depending on changes in the CPI.

The vast majority of our leases provide for periodic contractual rent escalations. As of December 31, 2022, leases contributing 98.2% of our annualized base rent provided for increases in future annual base rent, generally ranging from 1.0% to 4.0% annually, with a weighted average annual escalation equal to 1.6% of base rent. Although many of our rent escalators increase rent at a fixed amount on fixed dates, approximately 3.0% of our rent escalators relate to an increase in the CPI over a specified period. During periods of low inflation or deflation, small increases or decreases in the CPI will subject us to the risk of receiving lower rental revenue than we otherwise would have been entitled to receive if our rent escalators were based on higher fixed percentages or amounts. Conversely, during periods of relatively high inflation, fixed rate rent increases may be lower than the rate of inflation, resulting in a deterioration of the real return on our assets. Recently, numerous measures of inflation have

23

been relatively high, and our fixed rent escalators have not resulted in increases that equal or exceed the rate of inflation. Similarly, to the extent our tenants are unable to increase the prices they charge to their customers in response to any rent increases, their ability to meet their rental payment and other obligations to us could be reduced.

Inflation may materially and adversely affect us and our tenants.

While our tenants are generally obligated to pay property-level expenses relating to the properties they lease from us (e.g., maintenance, insurance and property taxes), we incur other expenses, such as general and administrative expense, interest expense relating to our debt (some of which bears interest at floating rates) and carrying costs for vacant properties. These expenses have generally increased in the current inflationary environment, and such increases have, in some instances, exceeded any increase in revenue we receive under our leases. Additionally, increased inflation may have an adverse impact on our tenants if increases in their operating expenses exceed increases in their revenue, which may adversely affect the tenants' ability to pay rent owed to us and meet other lease obligations, such as paying property taxes and insurance and maintenance costs.

Some of our tenants operate under franchise or license agreements, and, if they are terminated or not renewed prior to the expiration of their leases with us, that would likely impair their ability to pay us rent.

As of December 31, 2022, tenants contributing 11.9% of our annualized base rent operated under franchise or license agreements. Often, our tenants’ franchise or license agreements have terms that end prior to the expiration dates of the properties they lease from us. In addition, a tenant's rights as a franchisee or licensee typically may be terminated and the tenant may be precluded from competing with the franchisor or licensor upon termination. Usually, we have no notice or cure rights with respect to such a termination and have no rights to assignment of any such franchise agreement. This may have an adverse effect on our ability to mitigate losses arising from a default on any of our leases. A franchisor's or licensor's termination or refusal to renew a franchise or license agreement would likely have a material adverse effect on the ability of the tenant to make payments under its lease, which could materially and adversely affect us.

The bankruptcy or insolvency of a tenant could result in the termination or modification of such tenant's lease and material losses to us.

The occurrence of a tenant bankruptcy or insolvency could diminish the income we receive from that tenant's lease or leases or force us to “take back” a property as a result of a default or a rejection of a lease by a tenant in bankruptcy. Bankruptcy risk is more acute in situations where we lease multiple properties to a tenant pursuant to a master lease. If a tenant becomes bankrupt, the automatic stay created by the bankruptcy will prohibit us from collecting pre-bankruptcy debts from that tenant, or from its property, or evicting such tenant based solely upon such bankruptcy or insolvency, unless we obtain an order permitting us to do so from the bankruptcy court. In addition, a bankrupt or insolvent tenant may be authorized to reject and terminate its lease or leases with us. Any claims against such bankrupt tenant for unpaid future rent would be subject to statutory limitations that would likely result in our receipt of rental revenues that are substantially less than the contractually specified rent we are owed under the lease or leases. In addition, any claim we have for unpaid past rent, if any, may not be paid in full. We may also be unable to re-lease a property whose lease is terminated or rejected in a bankruptcy proceeding on comparable terms (or at all) or to sell any such property. As a result, a significant number of tenant bankruptcies may materially and adversely affect us.

Tenants who are considering filing for bankruptcy protection may request that we agree to amendments of their master leases to remove certain of the properties they lease from us under such master leases. We cannot guarantee that we will be able to sell or re-lease properties that we agree to release from tenants' leases in the future or that lease termination fees, if any, will be sufficient to make up for the rental revenues lost as a result of lease amendments.

Property vacancies could result in us having to incur significant capital expenditures to re-tenant the properties.

Many of our leases relate to properties that have been designed or physically modified for a particular tenant. If such a lease is terminated or not renewed, we may be required to renovate the property at substantial costs, decrease the rent we charge or provide other concessions in order to lease the property to another tenant. In addition, if we determine to sell the property, we may have difficulty selling it to a party other than the tenant due to

24

the special purpose for which the property may have been designed or modified. This potential illiquidity may limit our ability to quickly modify our portfolio in response to changes in economic or other conditions, including tenant demand.

Defaults by borrowers on loans we hold could lead to losses.

We make mortgage and other loans, which may be unsecured, to extend financing to tenants at certain of our properties. A default by a borrower on its loan payments to us that would prevent us from earning interest or receiving a return of the principal of our loan could materially and adversely affect us. In the event of a default, we may also experience delays in enforcing our rights as lender and may incur substantial costs in collecting the amounts owed to us and in liquidating any collateral. Where collateral is available, foreclosure and other similar proceedings used to enforce payment of real estate loans are generally subject to principles of equity, which are designed to relieve the indebted party from the legal effect of that party's default. In the event we have to foreclose on a property, the amount we receive from the foreclosure sale of the property may be inadequate to fully pay the amounts owed to us by the borrower and our costs incurred to foreclose, repossess and sell the property.

Real estate lending has several risks that need to be considered. There is the potential for changes in local real estate conditions and subjectivity of real estate valuations. In addition, overall economic conditions may impact the borrowers’ financial condition. Adverse economic conditions such as high unemployment levels, interest rates, tax rates and fuel and energy costs may have an impact on the results of operations and financial conditions of borrowers.

We may be unable to identify and complete acquisitions of suitable properties, which may impede our growth, and our future acquisitions may not yield the returns we seek.

Growth through property acquisitions is a primary element of our strategy. Our ability to expand through acquisitions requires us to identify, finance and complete acquisitions or investment opportunities that are compatible with our growth strategy and to successfully finance and integrate newly acquired properties into our portfolio, which may be constrained by the following significant risks: we face competition from other real estate investors, some of which have greater economies of scale, lower costs of capital, access to more financial resources and greater name recognition than we do, a greater ability to borrow funds and the ability to accept more risk than we can prudently manage, which may significantly reduce our acquisition volume or increase the purchase price for property we acquire, which could reduce our growth prospects; we may be unable to locate properties that will produce a sufficient spread between our cost of capital and the lease rate we can obtain from a tenant, in which case our ability to profitably grow our company will decrease; we may fail to have sufficient capital resources to complete acquisitions or our cost of capital could increase; we may incur significant costs and divert management attention in connection with evaluating and negotiating potential acquisitions, including ones that we are subsequently unable to complete; we may acquire properties that are not accretive to our results upon acquisition; our cash flow from an acquired property may be insufficient to meet our required principal and interest payments with respect to debt used to finance the acquisition of such property; we may discover unexpected items, such as unknown liabilities, during our due diligence investigation of a potential acquisition or other customary closing conditions may not be satisfied, causing us to abandon an investment opportunity after incurring expenses related thereto; we may spend more than budgeted amounts to make necessary improvements or renovations to acquired properties; we may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities, such as liabilities for clean-up of undisclosed environmental contamination, claims by tenants, vendors or other persons dealing with the former owners of the properties, liabilities incurred in the ordinary course of business and claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties; we may obtain only limited warranties when we acquire a property, including properties purchased in “as is” condition on a “where is” basis and “with all faults,” without warranties of merchantability or fitness for a particular purpose and pursuant to purchase agreements that contain only limited warranties, representations and indemnifications that survive for only a limited period after the closing. If any of these risks are realized, we may be materially and adversely affected.

Our real estate investments are generally illiquid which could significantly impede our ability to respond to market conditions or adverse changes in the performance of our tenants or our properties and which would harm our financial condition.

Our investments are relatively difficult to sell quickly. As a result of this illiquidity, our ability to promptly sell one or more properties in our portfolio in response to changing economic, financial or investment conditions is

25

limited. Return of capital and realization of gains, if any, from an investment generally will occur upon disposition or refinancing of the underlying property. We may be unable to realize our investment objective by sale, other disposition or refinancing at attractive prices within any given period of time or may otherwise be unable to complete any exit strategy. In particular, these risks could arise from weakness in or even the lack of an established market for a property, changes adversely affecting the tenant of a property, changes adversely affecting the area in which a particular property is located, adverse changes in the financial condition or prospects of prospective purchasers and changes in local, national or international economic conditions.

In addition, the Internal Revenue Code of 1986, as amended (the “Code”), imposes restrictions on a REIT's ability to dispose of properties that are not applicable to other types of real estate companies. In particular, the tax laws applicable to REITs effectively require that we hold our properties for investment, rather than primarily for sale in the ordinary course of business, which may cause us to forgo or defer sales of properties that otherwise would be in our best interest. Therefore, we may not be able to vary our portfolio in response to economic or other conditions promptly or on favorable terms.

Our growth depends on third-party sources of capital that are outside of our control and may not be available to us on commercially reasonable terms or at all.

In order to qualify as a REIT, we are required under the Code, among other things, to distribute annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, we will be subject to income tax at the corporate rate to the extent that we distribute less than 100% of our REIT taxable income, determined without regard to the dividends paid deduction and including any net capital gain. Accordingly, we will not be able to fund all of our future capital needs, including any necessary acquisition financing, from operating cash flow. Consequently, we rely on other sources of capital, including net proceeds from asset sales and external third-party sources to fund a portion of our capital needs. Our access to debt and equity capital, and the cost thereof, depends on many factors, including general market conditions, interest rates, inflation, the market's perception of our growth potential, our debt levels, our credit rating, our current and expected future earnings, our cash flow and cash distributions, and the market price of our common stock. The COVID-19 pandemic has significantly and adversely impacted global, national, regional and local economic activity and has contributed to significant volatility and negative pressure in the financial markets. In particular, our stock price has experienced significant volatility and our credit spreads in certain credit markets have recently been wider relative to our historical levels.

An important aspect of our business is capturing a positive “spread” between the cost at which we raise capital and the returns that we receive on our investments. To the extent our weighted average cost of capital increases without a corresponding increase in the returns that we receive on our investments, this spread will be reduced or eliminated, and our ability to grow through accretive acquisitions will be reduced or even eliminated. If we cannot obtain capital from third-party sources, or if our cost of capital increases materially, we may not be able to acquire properties when strategic opportunities exist, meet the capital and operating needs of our existing properties, satisfy our debt service obligations or make the cash distributions to our stockholders necessary to qualify as a REIT.

Loss of senior executives with long-standing business relationships could materially impair our ability to operate successfully.

Our ability to operate our business and grow our portfolio depend, in large part, upon the efforts of our senior executive team. Several of our executives have extensive experience and strong reputations in the real estate industry and have been important in setting our strategic direction, operating our business, assembling and growing our portfolio, identifying, recruiting and training key personnel, and arranging necessary financing. In particular, relationships that these individuals have with financial institutions and existing and prospective tenants are important to our growth and the success of our business. The loss of services of one or more members of our senior management team, including due to the adverse health effects of the COVID-19 pandemic, or our inability to attract and retain highly qualified personnel, could adversely affect our business, diminish our investment opportunities and weaken our relationships with lenders, business partners, existing and prospective tenants and industry personnel, which could materially and adversely affect us.

The COVID-19 pandemic has materially and adversely impacted our business and those of our tenants, particularly during 2020 and 2021, and could further affect our financial condition, results of operations,

26

cash flows and liquidity, prospects, access to and costs of capital, the trading price of our common stock and our ability to service our debt and make distributions to our stockholders.

For much of 2020, the COVID-19 pandemic created significant uncertainty and economic disruption that adversely affected the Company and its tenants. The adverse impact of the pandemic moderated during 2021 and significantly diminished during 2022. However, the continuing impact of the COVID-19 pandemic, its duration and any enduring effects are unclear, and various factors could erode the progress that has been made against the virus to date. For instance, a reinstitution of lockdowns, quarantines, restrictions on travel, “shelter in place” rules, school closures and/or restrictions on the types of businesses that may continue to operate or limitations on certain business operations, whether in response to a COVID-19 resurgence or another pathogen, could cause a decline in economic activity and a reduction in consumer confidence that could impair the ability of many of our tenants to operate their businesses and meet their obligations to us, including rental payment obligations.

More broadly, if the ongoing effects of COVID-19, the responses thereto or other factors cause the United States to enter into a recessionary period, or if reduced consumer confidence or unemployment weakens economic activity, our business, and those of our tenants, could be adversely affected. To the extent the pandemic causes a secular change in consumer behavior that reduces patronage of service-based and/or experience-based businesses, many of our tenants would be adversely affected and their ability to meet their obligations to us could be impaired; this could also reduce the value of our properties and cause us to realize impairment charges.

The COVID-19 pandemic has significantly and adversely impacted global, national, regional and local economic activity and has contributed to significant volatility and negative pressure in the financial markets. The market price of our common stock on the NYSE has experienced significant volatility since the outbreak of the COVID-19 pandemic. Similarly, the availability and pricing of debt and equity capital has become increasingly volatile and, in many instances, more expensive. Accordingly, we could experience difficulty accessing debt and equity capital on attractive terms, or at all, which would adversely affect our ability to grow our business, conduct our operations or address maturing liabilities. Similarly, a deterioration in access to capital or an increase in cost may adversely affect our tenants' abilities to finance their businesses and reduce their liquidity, which could reduce their ability to meet their obligations to us.

The ultimate extent to which the COVID-19 pandemic adversely impacts us (and our tenants) will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment and mitigation measures, among others.

Risks Related to Environmental and Compliance Matters and Climate Change

The costs of compliance with or liabilities related to environmental laws may materially and adversely affect us.

The properties we own or have owned in the past may subject us to known and unknown environmental liabilities. We obtain Phase I environmental site assessments on all properties we finance or acquire. However, the Phase I environmental site assessments are limited in scope and therefore may not reveal all environmental conditions affecting a property. Under various federal, state and local laws and regulations relating to the environment, as a current or former owner or operator of real property, we may be liable for costs and damages resulting from environmental matters, including the presence or discharge of hazardous or toxic substances, waste or petroleum products at, on, in, under or migrating from such property, including costs to investigate or clean up such contamination and liability for personal injury, property damage or harm to natural resources. If environmental contamination exists on our properties, we could be subject to strict, joint and/or several liability for the contamination by virtue of our ownership interest; we may face liability regardless of our knowledge of the contamination, the timing of the contamination, the cause of the contamination, or the party responsible for the contamination of the property.

If our environmental liability insurance is inadequate, we may become subject to material losses for environmental liabilities. Although our leases generally require our tenants to operate in compliance with all applicable laws and to indemnify us against any environmental liabilities arising from a tenant's activities on the property, we could be subject to strict liability by virtue of our ownership interest. We cannot be sure that our tenants will, or will be able to, satisfy their indemnification obligations, if any, under our leases. Furthermore, the discovery of environmental liabilities on any of our properties could lead to significant remediation costs or to other liabilities or obligations attributable to the tenant of that property or could result in material interference with the ability of our

27

tenants to operate their businesses as currently operated. Noncompliance with environmental laws or discovery of environmental liabilities could each individually or collectively affect such tenant's ability to make payments to us, including rental payments and, where applicable, indemnification payments. Additionally, the known or potential presence of hazardous substances on a property may adversely affect our ability to sell, lease or improve the property or to borrow using the property as collateral. Environmental laws may also create liens on contaminated properties in favor of the government for damages and costs it incurs to address such contamination. Moreover, if contamination is discovered on our properties, environmental laws may impose restrictions on the manner in which they may be used or businesses may be operated, and these restrictions may require substantial expenditures.

Insurance on our properties may not adequately cover all losses and uninsured losses could materially and adversely affect us.

Our tenants are required to maintain liability and property insurance coverage for the properties they lease from us pursuant to triple-net leases. Pursuant to such leases, our tenants are required to name us (and any of our lenders that have a mortgage on the property leased by the tenant) as additional insureds on their liability policies and additional named insured and/or loss payee (or mortgagee, in the case of our lenders) on their property policies. All tenants are required to maintain casualty coverage. Depending on the location of the property, losses of a catastrophic nature, such as those caused by earthquakes and floods, may be covered by insurance policies that are held by our tenant with limitations such as large deductibles or co-payments that a tenant may not be able to meet. In addition, losses of a catastrophic nature, such as those caused by wind/hail, hurricanes, terrorism or acts of war, may be uninsurable or not economically insurable. If there is damage to our properties that is not covered by insurance and such properties are subject to recourse indebtedness, we will continue to be liable for the indebtedness, even if these properties are irreparably damaged.

Inflation, changes in building codes and ordinances, environmental considerations and other factors, including terrorism or acts of war, may make any insurance proceeds we receive insufficient to repair or replace a property if it is damaged or destroyed. In that situation, the insurance proceeds received may not be adequate to restore our economic position with respect to the affected real property. Furthermore, if we experience a substantial or comprehensive loss of one of our properties, we may not be able to rebuild such property to its existing specifications without significant capital expenditures which may exceed any amounts received pursuant to insurance policies, as reconstruction or improvement of such a property would likely require significant upgrades to meet zoning and building code requirements. The loss of our capital investment in or anticipated future returns from our properties due to material uninsured losses could materially and adversely affect us.

Compliance with the ADA and fire, safety and other regulations may require us to make unanticipated expenditures.

Our properties are subject to the ADA, fire and safety regulations, building codes and other regulations. Failure to comply with these laws and regulations could result in imposition of fines by the government or an award of damages to private litigants, or both. While our tenants are obligated by law to comply with the ADA and typically obligated under our leases to cover costs associated with compliance with the ADA and other property regulations, if required changes involve greater expenditures than anticipated or if the changes must be made on a more accelerated basis than anticipated, the ability of our tenants to cover costs could be adversely affected, and we could be required to expend our own funds to comply with applicable law and regulation.

Our operations and financial condition may be adversely affected by climate change, including possible changes in weather patterns, weather-related events, government policy, laws, regulations and economic conditions.

In recent years, the assessment of the potential impact of climate change has begun to impact the activities of government authorities, the pattern of consumer behavior and other areas that impact the business environment in the U.S., including, but not limited to, energy-efficiency measures, water use measures and land-use practices. The promulgation of policies, laws or regulations relating to climate change by governmental authorities in the U.S. and the markets in which we own properties may require us to invest additional capital in our properties. New laws and regulations relating to sustainability and climate change are under consideration or being adopted, which may include specific disclosure requirements or obligations, and that may result in additional investments and implementation of new practices and reporting processes, all entailing additional compliance costs and risk. In addition, the impact of climate change on businesses operated by our tenants is not reasonably determinable at this time. Climate change may impact weather patterns, the occurrence of significant weather events and rising sea

28

levels, which could impact economic activity or the value of our properties in specific markets. The occurrence of any of these events or conditions may adversely impact our ability to lease our properties or our or our tenants’ ability to obtain property insurance on acceptable terms, which would materially and adversely affect us.

Risks Related to Our Indebtedness

As of December 31, 2022, we had $1.4 billion of indebtedness outstanding, which requires substantial cash flow to service, subjects us to covenants and refinancing risk and the risk of default.

As of December 31, 2022, we had $1.4 billion of indebtedness outstanding. This indebtedness consisted of $1.0 billion of combined borrowings under our term loans and $400.0 million outstanding principal amount of senior unsecured notes. We had no indebtedness outstanding under our Revolving Credit Facility as of December 31, 2022, but we may borrow from this facility in the future. Payments of principal and interest on indebtedness may leave us with insufficient cash resources to meet our cash needs, including funding our investment program, or to make the distributions to our common stockholders currently contemplated or necessary to continue to qualify as a REIT. Our indebtedness and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following: our cash flow may be insufficient to make our required principal and interest payments; cash interest expense and financial covenants relating to our indebtedness may limit or eliminate our ability to make distributions to our common stockholders; we may be unable to borrow additional funds as needed or on favorable terms, which could, among other things, adversely affect our ability to consummate investment opportunities or meet operational needs; we may be unable to refinance our indebtedness at maturity, or the refinancing terms may be less favorable than the terms of the debt being refinanced; because a portion of our debt bears interest at variable rates, increases in interest rates could increase our interest expense; we may be unable to hedge floating rate debt, counterparties may fail to honor their obligations under our hedge agreements, such agreements may not effectively hedge interest rate fluctuation risk, and, upon the expiration of our hedge agreements, we will be exposed to then-existing market rates of interest and future interest rate volatility; we may be forced to dispose of properties, possibly on unfavorable terms or in violation of certain covenants to which we may be subject; we may default on our obligations, we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and our default under any loan with cross-default provisions could result in a default on other indebtedness. The occurrence of any of these events could materially and adversely affect us.

Our business plan depends on external sources of capital, including debt financings, and market conditions could adversely affect our ability to refinance existing indebtedness or obtain additional financing for growth on commercially acceptable terms or at all.

Credit markets have recently experienced significant price volatility, displacement and liquidity disruptions. In particular, credit spreads in certain credit markets have recently been wider relative to historical levels. Such circumstances could materially impact liquidity in the financial markets, making financing terms for borrowers less attractive, and potentially result in the unavailability of various types of debt financing. As a result, we may be unable to obtain debt financing on favorable terms or at all or fully refinance maturing indebtedness with new indebtedness. A deterioration in our credit or credit rating, reductions in our available borrowing capacity or inability to obtain credit when required or when business conditions warrant could materially and adversely affect us.

If prevailing interest rates or other factors at the time of refinancing result in higher interest rates upon refinancing, then the interest expense relating to that refinanced indebtedness would increase. Higher interest rates on newly incurred debt may negatively impact us as well. If interest rates increase, our interest costs and overall costs of capital will increase, which could materially and adversely affect us and our ability to invest accretively or make distributions to our stockholders.

Though we currently do not have any secured debt, we have raised capital through secured debt financing in the past, and we may do so again in the future. Secured debt subjects us to certain risks, including the potential loss of the property securing such debt through foreclosure or otherwise and the possible inability to refinance any such debt at maturity at a similar loan-to-value ratio.

29

A downgrade in our credit ratings could have a material adverse effect on our business and financial condition.

The credit ratings assigned to us and our debt, which are subject to ongoing evaluation by the rating agencies who have published them, could change based upon, among other things, our historical and projected business, prospects, liquidity, results of operations and financial condition, or the real estate industry generally. If any credit rating agency downgrades or lowers our credit rating, places any such rating on a so-called “watch list” for a possible downgrading or lowering or otherwise publishes a negative outlook for that rating, it could materially adversely affect the market price of our debt securities and possibly our common stock, and generally the cost and availability of our capital.

We have engaged in hedging transactions and may engage in additional hedging transactions in the future; such transactions may materially and adversely affect our results of operations and cash flows.

We use hedging strategies, in a manner consistent with the REIT qualification requirements, in an effort to reduce our exposure to changes in interest rates. As of December 31, 2022, we were party to 19 interest rate swap agreements with third-party financial institutions having an aggregate notional amount of $1.0 billion that are designated as cash flow hedges and designed to effectively fix the LIBOR component of the interest rate on the debt outstanding under our term loans. Unanticipated changes in interest rates may result in poorer overall investment performance than if we had not engaged in any such hedging transactions and may materially and adversely affect our business by increasing our cost of capital and reducing the net returns we earn on our portfolio.

The Secured Overnight Financing Rate (“SOFR”), which is expected to replace LIBOR as the principal floating rate benchmark, has a limited history, is different than LIBOR and rates derived from SOFR may perform differently than LIBOR would have performed, which could create increased volatility in our cost of borrowing or increase our interest expense.

In anticipation of the discontinuation of LIBOR as a floating rate benchmark, we transitioned the reference interest rate used in connection with our floating rate debt obligations to ones based on SOFR, which is generally expected to replace LIBOR as the principal floating rate benchmark in the financial markets. SOFR-based rates differ from LIBOR, and the differences may be material. For example, SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are collateralized by U.S. Treasury securities. Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from LIBOR, which is intended to be an unsecured rate that represents interbank funding costs for different short-term tenors. LIBOR is a forward-looking rate reflecting expectations regarding interest rates for those tenors. Thus, LIBOR is intended to be sensitive to bank credit risk and to short-term interest rate risk. In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, SOFR is intended to be insensitive to credit risk and to risks related to interest rates other than overnight rates. However, like LIBOR, some SOFR-based rates, including the ones used in connection with our floating rate debt obligations, are forward-looking term rates. SOFR and SOFR-based rates have a limited history, and there is no assurance that SOFR, or rates derived from SOFR, will perform in the same or a similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based rates will ultimately prove to be a suitable substitute for LIBOR. SOFR-based reference rates, cannot be predicted based on SOFR’s history, and future levels of SOFR may bear little or no relation to historical levels of SOFR, LIBOR or other rates. Additionally, SOFR has been more volatile than other benchmark or market rates, such as three-month LIBOR. Accordingly, there can be no assurance that our transition to term SOFR in connection with our floating rate borrowings will not result in increased volatility in our cost of borrowing or increased interest expense.

Additionally, the inability or any inefficiency in market participants ability to hedge SOFR-based transactions or the illiquidity or relative illiquidity in the market for SOFR-based instruments may increase the costs associated with SOFR-based debt instruments or our ability to hedge our exposure to floating interest rates.

Our debt financing agreements contain restrictions and covenants which may limit our ability to enter into, or obtain funding for, certain transactions, operate our business or make distributions to our common stockholders.

Our debt financing agreements contain financial and other covenants with which we are required to comply and that limit our ability to operate our business. These covenants, as well as any additional covenants to which we may be subject in the future because of additional or replacement debt financing, could cause us to have to forego

30

investment opportunities, reduce or eliminate distributions to our common stockholders or obtain financing that is more expensive than financing we could obtain if we were not subject to the covenants. The covenants impose limitations on, among other things, our ability to incur additional indebtedness, encumber assets and pay distributions to our stockholders under certain circumstances (subject to certain exceptions relating to our qualification as a REIT under the Code). In addition, these agreements have cross-default provisions that generally result in an event of default if we default under other material indebtedness.

The covenants and other restrictions under our debt agreements may affect, among other things, our ability to: incur indebtedness; create liens on assets; cause our subsidiaries to distribute cash to us to fund distributions to stockholders or to otherwise use in our business; (see “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Description of Certain Debt”); sell or substitute assets; modify certain terms of our leases; manage our cash flows; and make distributions to equity holders, including our common stockholders.

Additionally, these restrictions may adversely affect our operating and financial flexibility and may limit our ability to respond to changes in our business or competitive environment, all of which may materially and adversely affect us.

Mortgage debt obligations expose us to the possibility of foreclosure, which could result in the loss of our investment in any property subject to mortgage debt.

Future borrowings may be secured by mortgages on our properties. Incurring mortgage and other secured debt obligations increases our risk of losses because defaults on secured indebtedness may result in foreclosure actions initiated by lenders and ultimately our loss of the properties securing any loans for which we are in default. If we are in default under a cross-defaulted mortgage loan, we could lose multiple properties to foreclosure. For tax purposes, a foreclosure of any of our properties would be treated as a sale of the property for a purchase price equal to the outstanding balance of the debt secured by the mortgage. If the outstanding balance of the debt secured by the mortgage exceeds our tax basis in the property, we would recognize taxable income on foreclosure, but would not receive any cash proceeds, which could hinder our ability to meet the REIT distribution requirements. As we execute our business plan, we may assume or incur new mortgage indebtedness on our properties. Any default under any mortgage debt obligation we incur may increase the risk of our default on our other indebtedness.

Risks Related to Our Organizational Structure

Our charter and bylaws and Maryland law contain provisions that may delay, defer or prevent a change of control transaction, even if such a change in control may be in your interest, and as a result may depress the market price of our common stock. Our charter contains certain restrictions on ownership and transfer of our stock.

Our charter contains various provisions that are intended to, among other things, assist us in maintaining our qualification for taxation as a REIT and, subject to certain exceptions, authorizes our directors to take such actions as are necessary or appropriate to cause us to continue to qualify as a REIT. For example, our charter prohibits the actual, beneficial or constructive ownership by any person of more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of our common stock or more than 9.8% in value of the aggregate of the outstanding shares of all classes and series of our stock.

Our Board, in its sole and absolute discretion, may exempt a person, prospectively or retroactively, from these ownership limits if certain conditions are satisfied. The restrictions on ownership and transfer of our stock may, among other things: discourage a tender offer or other transaction or a change in management or of control that might involve a premium price for our common stock or that our stockholders otherwise believe to be in their best interests; or result in the transfer of shares acquired in excess of the restrictions to a trust for the benefit of one or more charitable beneficiaries and, as a result, the forfeiture by the acquirer of the benefits of owning the additional shares.

We could increase or decrease the number of authorized shares of stock, classify and reclassify unissued stock and issue stock without stockholder approval.

Our Board, without stockholder approval, has the power under our charter to amend our charter to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we are authorized to issue, to authorize us to issue authorized but unissued shares of our common stock or preferred

31

stock and to classify or reclassify any unissued shares of our common stock or preferred stock into one or more classes or series of stock and to set the terms of such newly classified or reclassified shares. As a result, we may issue one or more classes or series of common stock or preferred stock with preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption that are senior to, or otherwise conflict with, the rights of our common stockholders. Our Board could establish a class or series of common stock or preferred stock that could, depending on the terms of such class or series, delay, defer or prevent a transaction or a change of control that might involve a premium price for our common stock or otherwise be in the best interest of our stockholders.

Our bylaws designate the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees and could discourage lawsuits against us and our directors, officers and employees.

Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, will be the sole and exclusive forum for (a) any Internal Corporate Claim, as such term is defined in the Maryland General Corporation Law (“MGCL”), (b) any derivative action or proceeding brought on our behalf, (c) any action asserting a claim of breach of any duty owed by any of our directors, officers or other employees to us or to our stockholders, (d) any action asserting a claim against us or any of our directors, officers or other employees arising pursuant to any provision of the MGCL or our charter or bylaws or (e) any other action asserting a claim against us or any of our directors, officers or other employees that is governed by the internal affairs doctrine. These choice of forum provisions will not apply to suits brought to enforce a duty or liability created by the Securities Act, the Exchange Act, or any other claim for which federal courts have exclusive jurisdiction.

These exclusive forum provisions may limit the ability of our stockholders to bring a claim in a judicial forum that such stockholders find favorable for disputes with us or our directors, officers, or employees, which may discourage such lawsuits against us and our directors, officers, and employees. Alternatively, if a court were to find the choice of forum provisions contained in our bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely affect our business, financial condition, and operating results.

Termination of the employment agreements with certain members of our senior management team could be costly and could impact a change in control of our company.

The employment agreements with certain members of our senior management team provide that if their employment with us terminates under certain circumstances (including in connection with a change in control of our company), we may be required to pay them significant amounts of severance compensation, thereby making it costly to terminate their employment. Furthermore, these provisions could delay or otherwise impact a transaction or a change in control of our company that might involve a premium paid for shares of our common stock or otherwise be in the best interests of our stockholders.

Our Board may change our investment and financing policies without stockholder approval, including those with respect to borrowing, and we may become more highly leveraged, which may increase our risk of default under our debt obligations.

Our investment and financing policies are exclusively determined by our Board. Accordingly, our stockholders do not control these policies. Further, our organizational documents do not limit the amount or percentage of indebtedness, funded or otherwise, that we may incur. Although we are not required by our organizational documents to maintain a particular leverage ratio and may not be able to do so, we generally intend to target a level of net debt (which includes recourse and non-recourse borrowings and any outstanding preferred stock issuance less unrestricted cash and cash equivalents) that, over time, is less than six times our Annualized Adjusted EBITDAre. However, from time to time, our ratio of net debt to our Annualized Adjusted EBITDAre may equal or exceed six times. Our Board may alter or eliminate our current policy on borrowing at any time without stockholder approval. If this policy changed, we could become more highly leveraged, which could result in an increase in our debt service and the risk of default on our obligations. In addition, a change in our investment policies, including the manner in which we allocate our resources across our portfolio or the types of assets in which we seek to invest,

32

may increase our exposure to interest rate risk, real estate market fluctuations and liquidity risk. Changes to our policies with regard to the foregoing could materially and adversely affect us.

Our rights and the rights of our stockholders to take action against our directors and officers are limited.

As permitted by Maryland law, our charter limits the liability of our directors and officers to us and our stockholders for money damages to the maximum extent permitted by Maryland law. Therefore, our directors and officers are subject to monetary liability resulting only from: actual receipt of an improper benefit or profit in money, property or services; or active and deliberate dishonesty by the director or officer that was established by a final judgment as being material to the cause of action adjudicated.

As a result, we and our stockholders have rights against our directors and officers that are more limited than might otherwise exist. Accordingly, if actions taken by any of our directors or officers impede the performance of our company, your and our ability to recover damages from such director or officer will be limited. In addition, our charter requires us to indemnify our directors and officers for actions taken by them in those and certain other capacities to the maximum extent permitted by Maryland law.

We are a holding company with no direct operations and rely on funds received from our Operating Partnership to make any distributions to stockholders and to pay liabilities.

We are a holding company and conduct substantially all of our operations through our Operating Partnership. We do not have any independent operations, and our only material asset is our interest in our Operating Partnership. As a result, we rely on distributions from our Operating Partnership to pay any distributions our Board declares on shares of our common stock. We also rely on distributions from our Operating Partnership to meet any of our obligations, including any tax liability on taxable income allocated to us from our Operating Partnership. In addition, because we are a holding company, claims by our stockholders will be structurally subordinated to all existing and future liabilities and obligations (whether or not for borrowed money) of our Operating Partnership and its subsidiaries. Therefore, in the event of our bankruptcy, liquidation or reorganization, our assets and those of our Operating Partnership and its subsidiaries will be able to satisfy the claims of our stockholders only after all of our and our Operating Partnership's and its subsidiaries' liabilities and obligations have been paid in full.

In connection with our future acquisition of properties or otherwise, we may issue units of our Operating Partnership to third parties. Such issuances would reduce our ownership in our Operating Partnership. If you do not directly own units of our Operating Partnership, you will not have any voting rights with respect to any such issuances or other partnership level activities of our Operating Partnership.

Conflicts of interest could arise in the future between the interests of our stockholders and the interests of holders of units in our Operating Partnership, which may impede business decisions that could benefit our stockholders.

Conflicts of interest could arise in the future as a result of the relationships between us and our stockholders, on the one hand, and our Operating Partnership and its limited partners, on the other. Under the terms of the partnership agreement of our Operating Partnership, if there is a conflict between the interests of our stockholders, on one hand, and any limited partners, on the other, we will endeavor in good faith to resolve the conflict in a manner not adverse to either our stockholders or any limited partners; provided, however, that so long as we own a controlling economic interest in our Operating Partnership, any conflict that cannot be resolved in a manner not adverse to either our stockholders or any limited partners shall be resolved in favor of our stockholders.

Certain mergers, consolidations and other transactions require the approval of a majority in interest of the outside limited partners in our Operating Partnership (which excludes us and our subsidiaries), which could prevent certain transactions that may result in our stockholders receiving a premium for their shares or otherwise be in their best interest.

The partnership agreement requires the general partner or us, as the parent of the general partner, to obtain the approval of a majority in interest of the outside limited partners in our Operating Partnership (which excludes us and our subsidiaries) in connection with certain mergers, consolidations or other combinations of us, or a sale of all or substantially all of our assets. This approval right could prevent a transaction that might be in the best interests of our stockholders.

33

Risks Related to Our Status as a REIT

Failure to continue to qualify as a REIT would materially and adversely affect us and the value of our common stock, and even if we continue to qualify as a REIT, we may be subject to certain additional taxes.

We elected to be taxed as a REIT for federal income tax purposes beginning with our taxable year ended December 31, 2018, and we believe that our current organization and operations have allowed and will continue to allow us to qualify as a REIT. We have not requested and do not plan to request a ruling from the Internal Revenue Service, or IRS, that we qualify as a REIT, and the statements in this Annual Report are not binding on the IRS or any court. Therefore, we cannot assure you that we will remain qualified as a REIT in the future. If we lose our REIT status, we will face significant tax consequences that would substantially reduce our cash available for distribution to our stockholders for each of the years involved because: we would not be allowed a deduction for distributions to stockholders in computing our taxable income and would be subject to federal income tax at the corporate rate; we also could be subject to increased state and local taxes; and unless we are entitled to relief under applicable statutory provisions, we could not elect to be taxed as a REIT for four taxable years following the year during which we were disqualified.

Any such corporate tax liability could be substantial and would reduce our cash available for, among other things, our operations and distributions to stockholders. In addition, if we fail to remain qualified as a REIT, we will not be required to make distributions to our stockholders. As a result of all these factors, our failure to remain qualified as a REIT also could impair our ability to expand our business and raise capital and could materially and adversely affect the trading price of our common stock.

Qualification as a REIT involves the application of highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations. The determination of various factual matters and circumstances not entirely within our control may affect our ability to continue to qualify as a REIT. In order to continue to qualify as a REIT, we must satisfy a number of requirements, including requirements regarding the ownership of our stock, requirements regarding the composition of our assets and a requirement that at least 95% of our gross income in any year must be derived from qualifying sources, such as “rents from real property.” Also, we must make distributions to stockholders aggregating annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains. In addition, legislation, new regulations, administrative interpretations or court decisions may materially and adversely affect our investors, our ability to continue to qualify as a REIT for federal income tax purposes or the desirability of an investment in a REIT relative to other investments.

Even if we continue to qualify as a REIT for federal income tax purposes, we may be subject to some federal, state and local income, property and excise taxes on our income or property and, in certain cases, a 100% penalty tax, in the event we sell property as a dealer. In addition, any taxable REIT subsidiaries will be subject to tax as regular corporations in the jurisdictions in which they operate.

If our Operating Partnership fails to qualify as a partnership for federal income tax purposes, we will cease to qualify as a REIT and suffer other adverse consequences.

We believe that our Operating Partnership will be treated as a partnership for federal income tax purposes and, as a result, will generally not be subject to federal income tax on its income. Instead, for federal income tax purposes each of the partners of the Operating Partnership, including us, will be allocated, and may be required to pay tax with respect to, such partner's share of its income. Our Operating Partnership will generally be required to determine and pay an imputed underpayment of tax (plus interest and penalties) resulting from an adjustment of the Operating Partnership's items of income, gain, loss, deduction or credit at the partnership level. We cannot assure you that the IRS will not challenge the tax classification of our Operating Partnership or any other subsidiary partnership in which we own an interest, or that a court will not sustain such a challenge. If the IRS were successful in treating our Operating Partnership or any such other subsidiary partnership as an entity taxable as a corporation for federal income tax purposes, we will fail to meet the gross income tests and certain of the asset tests applicable to REITs and, accordingly, we will likely cease to qualify as a REIT. Also, the failure of our Operating Partnership or any subsidiary partnerships to qualify as a disregarded entity or partnership could cause it to become subject to federal and state corporate income tax, which will reduce significantly the amount of cash available for debt service and for distribution to its partners, including us.

34

To maintain our REIT status, we may be forced to borrow funds during unfavorable market conditions, and the unavailability of such capital on favorable terms at the desired times, or at all, may cause us to curtail our investment activities and/or to dispose of assets at inopportune times.

To continue to qualify as a REIT, we generally must distribute to our stockholders at least 90% of our REIT taxable income each year, determined without regard to the dividends-paid deduction and excluding any net capital gains, and we will be subject to corporate income tax on our undistributed taxable income to the extent that we distribute less than 100% of our REIT taxable income, determined without regard to the dividends-paid deduction and including any net capital gains, each year. In addition, we will be subject to a 4% nondeductible excise tax on the amount, if any, by which distributions paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years.

In order to maintain our REIT status and avoid the payment of income and excise taxes, we may need to borrow funds to meet the REIT distribution requirements even if market conditions are not favorable for these borrowings. We cannot assure you that we will have access to such capital on favorable terms at the desired times, or at all, which may cause us to curtail our investment activities and/or to dispose of assets at inopportune times, and could materially and adversely affect us and the per share trading price of our common stock.

Our ability to provide certain services to our tenants may be limited by the REIT rules or may have to be provided through a taxable REIT subsidiary.

As a REIT, we generally cannot provide services to our tenants other than those that are customarily provided by landlords, nor can we derive income from a third party that provides such services. If we forego providing such services to our tenants, we may be at a disadvantage to competitors that are not subject to the same restrictions. However, we can provide such non-customary services to our tenants and receive our share in the revenue from such services if we do so through a taxable REIT subsidiary (“TRS”), though income earned by such TRS will be subject to U.S. federal corporate income taxation.

The IRS may treat sale-leaseback transactions as loans, which could jeopardize our REIT status or require us to make an unexpected distribution.

A significant portion of our investments were obtained through sale-leaseback transactions, where we purchase owner-occupied real estate and lease it back to the seller. We expect that a majority of our future investments will be obtained this way. The IRS may take the position that specific sale-leaseback transactions that we treat as leases are not true leases for federal income tax purposes but, instead, should be re-characterized as financing arrangements or loans.

If a sale-leaseback transaction were so re-characterized, we might fail to satisfy the REIT asset tests, the income tests or distribution requirements and consequently lose our REIT status effective with the year of re-characterization unless we elect to make an additional distribution to maintain our REIT status. The primary risk relates to our loss of previously incurred depreciation expenses, which could affect the calculation of our REIT taxable income and could cause us to fail the REIT distribution test that requires a REIT to distribute at least 90% of its REIT taxable income, determined without regard to the dividends-paid deduction and excluding any net capital gain. In this circumstance, we may elect to distribute an additional dividend of the increased taxable income so as not to fail the REIT distribution test. This distribution would be paid to all stockholders at the time of declaration rather than the stockholders existing in the taxable year affected by the re-characterization.

Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.

The maximum tax rate applicable to income from "qualified dividends" payable to U.S. stockholders that are individuals, trusts and estates is 20%. Dividends payable by REITs, however, generally are not eligible for the 20% rate except to the extent the REIT dividends are attributable to "qualified dividends" received by the REIT itself. However, for non-corporate U.S. stockholders, dividends payable by REITs that are not designated as capital gain dividends or otherwise treated as "qualified dividends" generally are eligible for a deduction of 20% of the amount of such dividends, for taxable years beginning before January 1, 2027. More favorable rates will nevertheless continue to apply for regular corporate "qualified dividends."  Although these rules do not adversely affect the taxation of REITs or dividends payable by REITs, if the 20% rate continues to apply to regular corporate qualified dividends, investors who are individuals, trusts and estates may regard investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations.

35

The tax imposed on REITs engaging in “prohibited transactions” may limit our ability to engage in transactions which would be treated as sales for federal income tax purposes.

A REIT's net income from “prohibited transactions” is subject to a 100% penalty tax. In general, prohibited transactions are sales or other dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business. Although we do not intend to hold any properties that would be characterized as held for sale to customers in the ordinary course of our business, unless a sale or disposition qualifies under certain statutory safe harbors, no guarantee can be given that the IRS would agree with our characterization of our properties or that we will always be able to make use of the available safe harbors.

Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities.

The REIT provisions of the Code substantially limit our ability to hedge our assets and liabilities. Any income from a hedging transaction that we enter into to manage the risk of interest rate changes with respect to borrowings made or to be made to acquire or carry real estate assets, or from certain terminations of such hedging positions, does not constitute “gross income” for purposes of the 75% or 95% gross income tests that apply to REITs, provided that certain identification requirements are met. To the extent that we enter into other types of hedging transactions or fail to properly identify such transaction as a hedge, the income is likely to be treated as non-qualifying income for purposes of both of the gross income tests. As a result of these rules, we may be required to limit our use of advantageous hedging techniques or implement those hedges through a TRS. This could increase the cost of our hedging activities because any TRS in which we own an interest may be subject to tax on gains or expose us to greater risks associated with changes in interest rates than we would otherwise want to bear. In addition, losses in any TRS in which we own an interest will generally not provide any tax benefit, except that such losses could theoretically be carried forward against future taxable income in such TRS.

Complying with REIT requirements may affect our profitability and may force us to liquidate or forgo otherwise attractive investments.

To qualify as a REIT, we must continually satisfy tests concerning, among other things, the nature and diversification of our assets, the sources of our income and the amounts we distribute to our stockholders. We may be required to liquidate or forgo otherwise attractive investments in order to satisfy the asset and income tests or to qualify under certain statutory relief provisions. We also may be required to make distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution. As a result, having to comply with the distribution requirement could cause us to: (i) sell assets in adverse market conditions; (ii) borrow on unfavorable terms; or (iii) distribute amounts that would otherwise be invested in future acquisitions, capital expenditures or repayment of debt. Accordingly, satisfying the REIT requirements could materially and adversely affect us. Moreover, if we are compelled to liquidate our investments to meet any of these asset, income or distribution tests, or to repay obligations to our lenders, we may be unable to comply with one or more of the requirements applicable to REITs or may be subject to a 100% tax on any resulting gain if such sales are prohibited transactions.

There is a risk of changes in the tax law applicable to REITs.

Because the IRS, the United States Treasury Department and Congress frequently review federal income tax legislation, we cannot predict whether, when or to what extent new federal tax laws, regulations, interpretations or rulings will be adopted. Any of such legislative actions may prospectively or retroactively modify our tax treatment and, therefore, may adversely affect taxation of us and/or our investors. For example, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) has significantly changed the U.S. federal income taxation of U.S. businesses and their owners, including REITs and their stockholders. You are urged to consult with your tax advisor with respect to the status of legislative, regulatory, judicial or administrative developments and proposals and their potential effect on an investment in our securities.

Risks Related to the Ownership of Our Common Stock

Changes in market conditions and volatility of stock prices could adversely affect the market price of our common stock.

The market price of our common stock on the NYSE has experienced significant volatility, particularly since the outbreak of the COVID-19 pandemic. The market price of our common stock will fluctuate, and such fluctuations

36

could be significant and frequent; accordingly, our common stockholders may experience a significant decrease in the value of their shares, including decreases that may be related to technical market factors and may be unrelated to our operating performance or prospects. Similarly, the trading volume of our common stock may decline, and our common stockholders could experience a decrease in liquidity. A number of factors could negatively affect the price per share of our common stock, including: actual or anticipated variations in our quarterly operating results or distributions; changes in our funds from operations (“FFO”), core FFO (“Core FFO”), adjusted FFO (“AFFO”) or guidance; changes in our net investment activity; difficulties or inability to access equity or debt capital on attractive terms or extend or refinance existing debt; increases in our leverage; changes in our management or business strategy; failure to comply with the NYSE listing requirements or other regulatory requirements; and the other factors described in this Risk Factors section. Many of these factors are beyond our control. These factors may cause the market price of shares of our common stock to decline significantly, regardless of our financial condition, results of operations, business or our prospects.

Increases in market interest rates may result in a decrease in the value of shares of our common stock.

One of the factors that may influence the price of shares of our common stock is the distribution yield on shares of our common stock (as a percentage of the price of shares of our common stock) relative to market interest rates. An increase in market interest rates may lead prospective purchasers of shares of our common stock to expect a higher distribution yield. Additionally, higher interest rates would likely increase our borrowing costs and potentially decrease funds available for distribution. Thus, higher market interest rates could cause the per share trading price of our common stock to decrease. Higher borrowing costs and a reduced trading price of our common stock would increase our overall cost of capital and adversely affect our ability to make accretive acquisitions.

We may be unable to continue to make distributions at our current distribution level, and our board may change our distribution policy in the future.

While we expect to continue to make regular quarterly distributions to the holders of our common stock, if sufficient cash is not available for distribution from our operations, we may have to fund distributions from working capital or net proceeds from asset sales, borrow to provide funds for such distributions, or reduce the amount of such distributions. To the extent we borrow to fund distributions, our future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been. If cash available for distribution generated by our assets is less than expected, or if such cash available for distribution decreases in future periods from expected levels, our inability to make distributions could result in a decrease in the market price of our common stock.

The decision to declare and pay distributions on our common stock, as well as the form, timing and amount of any such future distributions, is at the sole discretion of our Board and depends upon a number of factors, including our actual and projected results of operations, FFO, Core FFO, AFFO, liquidity, cash flows and financial condition, the revenue we actually receive from our properties, our operating expenses, our debt service requirements, our capital expenditures, prohibitions and other limitations under our financing arrangements, our REIT taxable income, the annual REIT distribution requirements, applicable law and such other factors as our Board deems relevant. We may not be able to make distributions in the future, and our inability to make distributions, or to make distributions at expected levels, could have a material adverse effect on the market price of our common stock.

The incurrence of additional debt, which would be senior to shares of our common stock upon liquidation, and/or preferred equity securities that may be senior to shares of our common stock for purposes of distributions or upon liquidation, may materially and adversely affect the market price of shares of our common stock.

In the future, we may attempt to increase our capital resources by making additional offerings of debt or preferred equity securities, including by causing our Operating Partnership or its subsidiaries to issue additional debt securities, or by otherwise incurring additional indebtedness. Upon liquidation, holders of our debt securities, other lenders and creditors, and any holders of preferred stock with a liquidation preference will receive distributions of our available assets prior to our stockholders. Additionally, any convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock and may result in dilution to owners of our common stock. Our stockholders are not entitled to preemptive rights or other protections against dilution. Our preferred stock, if issued, could have a preference on liquidating distributions or a preference on distribution payments that could limit our right to make distributions to our stockholders. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our

37

control, we cannot predict or estimate the amount, timing or nature of our future offerings. Our stockholders bear the risk of our future offerings reducing per share trading price of our common stock.

Sales of substantial amounts of our common stock or securities convertible into or exercisable or exchangeable therefor, or the perception that such sales might occur, could reduce the price of our common stock and may dilute your voting power and your ownership interest in us.

Sales of substantial amounts of our common stock or securities convertible into or exercisable or exchangeable therefor (such as OP Units), or the perception that such sales might occur, could adversely affect the market price of our common stock. OP Units (“OP Units”) are limited partnership interests in the Operating Partnership. Generally, beginning on and after the date that is 12 months after the issuance of OP Units, each limited partner of the Operating Partnership has the right to require the Operating Partnership to redeem part or all of its OP Units for cash, based upon the value of an equivalent number of shares of our common stock at the time of the redemption, or, at our election, shares of common stock on a one-for-one basis, subject to certain adjustments and the restrictions on ownership and transfer of our stock. Additionally, such sales would dilute the voting power and ownership interest of existing common stockholders. Our charter provides that we may issue up to 500,000,000 shares of common stock, and a majority of our entire Board has the power to amend our charter to increase the aggregate number of shares of stock or the number of shares of stock of any class or series that we are authorized to issue without stockholder approval. As of December 31, 2022, we had 142,379,655 shares of common stock outstanding and 553,847 OP Units outstanding (excluding OP Units held directly or indirectly by us). The currently outstanding OP Units are primarily held by members of our management team. Any exchange of OP Units for common stock may result in stockholder dilution. In the future we may acquire properties through tax deferred contribution transactions in exchange for OP Units. This acquisition structure may have the effect of, among other things, reducing the amount of tax depreciation we could deduct over the tax life of the acquired properties, and may require that we agree to protect the contributors' ability to defer recognition of taxable gain through restrictions on our ability to dispose of the acquired properties and/or the allocation of partnership debt to the contributors to maintain their tax bases. These restrictions could limit our ability to sell an asset at a time, or on terms, that would be favorable absent such restrictions. As of December 31, 2022, 958,515 shares remain available for issuance under our 2018 Incentive Plan.

General Risk Factors

We may be vulnerable to security breaches or cyber attacks which could disrupt our operations and have a material adverse effect on our financial condition and operating results.

We rely on information systems across our operations and corporate functions, including finance and accounting, and depend on such systems to ensure payment of obligations, collection of cash, data warehousing to support analytics, and other various processes and procedures. Our ability to efficiently manage our business depends significantly on the reliability and capacity of these systems. Security breaches, cyber attacks, or disruption, of our or our third-party service providers’ physical or information technology infrastructure, networks and related management systems could result in, among other things, a breach of our networks and information technology infrastructure, the misappropriation of our or our tenants’ proprietary or confidential information, interruptions or malfunctions in our or our tenants’ operations, misstated financial reports, violations of loan covenants, an inability to monitor compliance with REIT qualification requirements, breach of our legal, regulatory or contractual obligations, inability to access or rely upon critical business records, unauthorized access to our facilities or other disruptions in our operations. Numerous sources can cause these types of incidents, including physical or electronic security breaches; viruses, ransomware or other malware; hardware vulnerabilities; accident or human error by our own personnel or third parties; criminal activity or malfeasance (including by our own personnel); fraud or impersonation scams perpetrated against us or our partners or tenants; or security events impacting our third-party service providers or our partners or tenants.

We recognize the increasing volume of cyber attacks and employ commercially practical efforts to provide reasonable assurance such attacks are appropriately mitigated. We may be required to expend significant financial resources and management time to protect against or respond to such breaches. Techniques used to breach security change frequently and are generally not recognized until launched against a target, so we may not be able to promptly detect that a security breach or unauthorized access has occurred. We also may not be able to implement security measures in a timely manner or, if and when implemented, we may not be able to determine the extent to which these measures could be circumvented. If an actual or perceived security breach occurs, the market’s perception of our security measures could be harmed and we could lose current and potential tenants, and

38

such a breach could be harmful to our brand and reputation. Any breaches that may occur could expose us to increased risk of lawsuits, material monetary damages, potential violations of applicable privacy and other laws, penalties and fines, harm to our reputation and increases in our security and insurance costs. In the event of a breach resulting in loss of data, such as personally identifiable information or other such data protected by data privacy or other laws, we may be liable for damages, fines and penalties for such losses under applicable regulatory frameworks despite not handling the data. We cannot guarantee that any backup systems, regular data backups, security protocols, network protection mechanisms and other procedures currently in place, or that may be in place in the future, will be adequate to prevent network and service interruption, system failure, damage to one or more of our systems or data loss in the event of a security breach or attack.

In addition, the regulatory framework around data custody, data privacy and breaches varies by jurisdiction and is an evolving area of law with increasingly complex and rigorous regulatory standards enacted to protect business and personal data in the United States. We may not be able to limit our liability or damages in the event of such a loss. Data protection legislation is becoming increasingly common in the United States at both the federal and state level and may require us to further modify our data processing practices and policies. Compliance with existing, proposed and recently enacted laws and regulations can be costly; any failure to comply with these regulatory standards could subject us to legal and reputational risks. Misuse of or failure to secure personal information could also result in violation of data privacy laws and regulations, proceedings against the Company by governmental entities or others, fines and penalties, or damage to our reputation and credibility with regulators, tenants and investors.

We may become subject to litigation, which could materially and adversely affect us.

From time to time, we may become party to various lawsuits, claims and other legal proceedings. These matters may involve significant expense and may result in judgments or settlements, which may be significant. There can be no assurance that insurance will be available to cover losses related to legal proceedings or that our tenants will meet any indemnification obligations that they have to us. Litigation may result in significant defense costs and potentially significant judgments against us, some of which are not, or cannot be, insured against. Resolution of these types of matters against us may result in our having to pay significant fines, judgments or settlements, which, if uninsured, or if the fines, judgments, and settlements exceed insured levels, could materially and adversely affect us.

Material weaknesses in or a failure to maintain an effective system of internal control over financial reporting or disclosure controls could prevent us from accurately and timely reporting our financial results, which could materially and adversely affect us.

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports, effectively prevent fraud and operate successfully as a public company. If we cannot provide reliable financial reports or prevent fraud, our reputation and operating results would be harmed. We are required to perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on, and our independent registered public accounting firm to attest to, the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act of 2002. Designing and implementing an effective system of internal control over financial reporting and disclosure controls and procedures is a continuous effort that requires significant resources, including the expenditure of a significant amount of time by senior members of our management team.

In connection with our ongoing monitoring of our internal control over financial reporting or audits of our financial statements, we or our auditors may identify deficiencies in our internal control over financial reporting that may be significant or rise to the level of material weaknesses. Any failure to maintain effective internal control over financial reporting or disclosure controls and procedures or to timely effect any necessary improvements to such controls, could harm our operating results or cause us to fail to meet our reporting obligations (which could affect the listing of our common stock on the NYSE). Additionally, ineffective internal control over financial reporting or disclosure controls and procedures could also adversely affect our ability to prevent or detect fraud, harm our reputation and cause investors to lose confidence in our reported financial information, which would likely have a negative effect on the trading price of our common stock.

39

Changes in accounting standards may materially and adversely affect us.

From time to time FASB and the SEC, who create and interpret accounting standards, may change the financial accounting and reporting standards or their interpretation and application of these standards that will govern the preparation of our financial statements. These changes could materially and adversely affect our reported financial condition and results of operations, and, under certain circumstances, may cause us to fail to comply with financial covenants contained in agreements relating to our indebtedness. In some cases, we could be required to apply a new or revised standard retroactively, resulting in restating prior period financial statements. Similarly, these changes could materially and adversely affect our tenants’ reported financial condition or results of operations and affect their preferences regarding leasing real estate.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

Our Real Estate Investment Portfolio

As of December 31, 2022, we had a portfolio of 1,653 properties, inclusive of 153 properties that secure our investments in mortgage loans receivable, that was diversified by tenant, concept, industry and geography and had annualized base rent of $297.2 million. Our 350 tenants operate 538 different concepts in 16 industries across 48 states. None of our tenants represented more than 3.4% of our annualized base rent at December 31, 2022 and our top ten largest tenants represented 18.0% of our annualized base rent as of that date.

Diversification by Tenant

As of December 31, 2022, our top ten tenants included ten different concepts. The following table details information about our tenants and the related concepts they operate as of December 31, 2022 (dollars in thousands):

Tenant (1)	Concept	Number of Properties (2)	Annualized Base Rent		% of Annualized Base Rent
Equipmentshare.com Inc.	EquipmentShare	33	$	9,962	3.4	%
CNP Holdings, LLC	Chicken N Pickle	6	5,546		1.9	%
Captain D's, LLC	Captain D's	75	5,353		1.8	%
Whitewater Holding Company, LLC	WhiteWater Express Car Wash	16	4,953		1.7	%
Cadence Education, LLC	Various	23	4,941		1.7	%
MDSFest, Inc.	Festival Foods	5	4,681		1.6	%
The Track Holdings, LLC	Five Star	9	4,649		1.6	%
Mammoth Holdings, LLC.	Various	17	4,552		1.5	%
Car Wash Partners, Inc.	Mister Car Wash	13	4,479		1.5	%
Bowl New England, Inc.	Spare Time	6	4,444		1.5	%
Top 10 Subtotal		203	53,559		18.0	%
Other		1,448	243,599		82.0	%
Total		1,651	$	297,158	100.0	%

 __________________________________________

(1)Represents tenant or guarantor.

(2)Excludes two vacant properties.

As of December 31, 2022, our five largest tenants, who contributed 10.3% of our annualized base rent, had a rent coverage ratio of 5.8x, and our ten largest tenants, who contributed 18.0% of our annualized base rent, had a rent coverage ratio of 4.7x.

As of December 31, 2022, 94.9% of our leases (based on annualized base rent) were triple-net, and the tenant is typically responsible for all improvements and is contractually obligated to pay all operating expenses, such as maintenance, insurance, utility and tax expense, related to the leased property. Due to the triple-

40

net structure of our leases, we do not expect to incur significant capital expenditures relating to our triple-net leased properties, and the potential impact of inflation on our operating expenses is reduced.

Diversification by Concept

Our tenants operate their businesses through 538 concepts (i.e., generally brands). The following table provides information about the top ten concepts in our portfolio as of December 31, 2022 (dollars in thousands): 

Concept	Type of Business	Annualized Base Rent		% of Annualized Base Rent		Number of Properties (1)	Building (Sq. Ft.) (1)
EquipmentShare	Service	$	9,962	3.4	%	33	589,550
Captain D's	Service	6,595		2.2	%	88	228,470
Chicken N Pickle	Service	5,546		1.9	%	6	202,057
WhiteWater Express Car Wash	Service	4,953		1.7	%	16	77,746
Festival Foods	Retail	4,681		1.6	%	5	379,640
Mister Car Wash	Service	4,479		1.5	%	13	54,621
Spare Time	Experience	4,443		1.5	%	6	272,979
The Nest Schools	Service	4,146		1.4	%	17	217,282
Zaxby's	Service	4,062		1.4	%	22	76,790
Crunch Fitness	Experience	4,022		1.4	%	10	348,072
Top 10 Subtotal		52,889		17.8	%	216	2,447,207
Other		244,269		82.2	%	1,435	13,606,130
Total		$	297,158	100.0	%	1,651	16,053,337

 ______________________________________

(1)Excludes two vacant properties.

41

Diversification by Industry

Our tenants' business concepts are diversified across various industries. The following table summarizes those industries as of December 31, 2022 (dollars in thousands except per sq. ft amounts):

Tenant Industry	Type of Business	Annualized Base Rent		% of Annualized Base Rent		Number of Properties (1)	Building (Sq. Ft.) (1)	Rent Per Sq. Ft. (2)
Car Washes	Service	$	39,192	13.2	%	137	697,050	$	56.23
Early Childhood Education	Service	37,905		12.8	%	170	1,825,083	20.77
Quick Service	Service	34,468		11.6	%	397	1,095,609	31.47
Medical / Dental	Service	32,902		11.1	%	193	1,379,947	23.84
Automotive Service	Service	25,455		8.6	%	195	1,256,845	20.06
Casual Dining	Service	21,237		7.1	%	102	801,106	25.83
Convenience Stores	Service	14,664		4.9	%	131	491,449	30.25
Equipment Rental and Sales	Service	13,993		4.7	%	57	1,013,151	13.10
Other Services	Service	7,541		2.5	%	35	438,901	17.18
Pet Care Services	Service	5,142		1.7	%	46	371,069	14.44
Family Dining	Service	4,746		1.6	%	32	179,942	26.38
Service Subtotal		237,245		79.8	%	1,495	9,550,152	24.78
Entertainment	Experience	23,459		7.9	%	46	1,416,208	17.18
Health and Fitness	Experience	11,495		3.9	%	29	1,125,329	9.44
Movie Theatres	Experience	4,301		1.4	%	6	293,206	14.67
Experience Subtotal		39,255		13.2	%	81	2,834,743	13.81
Grocery	Retail	9,747		3.3	%	28	1,341,200	7.27
Home Furnishings	Retail	2,048		0.7	%	4	217,339	9.42
Retail Subtotal		11,795		4.0	%	32	1,558,539	7.57
Other Industrial	Industrial	5,008		1.7	%	20	852,888	5.87
Building Materials	Industrial	3,855		1.3	%	23	1,257,017	3.07
Industrial Subtotal		8,863		3.0	%	43	2,109,905	4.20
Total/Weighted Average		$	297,158	100.0	%	1,651	16,053,339	$	18.46

 ____________________________________________________

(1)Excludes two vacant properties.

(2)Excludes properties with no annualized base rent and properties under construction.

As of December 31, 2022, our tenants operating service-oriented businesses had a weighted average rent coverage ratio of 3.6x, our tenants operating experience-based businesses had a weighted average rent coverage ratio of 2.2x, our tenants operating retail businesses had a weighted average rent coverage ratio of 4.1x and our tenants operating other types of businesses had a weighted average rent coverage ratio of 24.5x.

42

Diversification by Geography

Our 1,653 property locations are spread across 48 states. The following table details the geographical locations of our properties as of December 31, 2022 (dollars in thousands):

State	Annualized Base Rent		% of Annualized Base Rent		Number of Properties	Building (Sq. Ft.)
Texas	$	38,919	13.1	%	193	2,114,977
Georgia	20,761		7.0	%	123	745,559
Ohio	19,919		6.7	%	139	1,153,163
Florida	19,266		6.5	%	78	786,740
Wisconsin	12,953		4.4	%	56	778,137
North Carolina	11,253		3.8	%	57	641,085
Missouri	11,038		3.7	%	58	792,979
Michigan	9,363		3.2	%	60	950,862
Arizona	8,492		2.9	%	46	503,403
Oklahoma	8,418		2.8	%	51	524,865
New Jersey	8,337		2.8	%	27	215,705
Alabama	8,083		2.7	%	52	458,898
Tennessee	7,998		2.7	%	50	344,772
Minnesota	7,261		2.4	%	36	496,939
Arkansas	7,207		2.4	%	55	447,342
Illinois	7,150		2.4	%	43	311,152
New York	6,555		2.2	%	44	223,324
Pennsylvania	6,389		2.2	%	35	338,665
Virginia	6,336		2.1	%	24	262,428
Massachusetts	5,861		2.0	%	29	406,159
Colorado	5,659		1.9	%	27	262,068
South Carolina	5,645		1.9	%	34	378,796
Iowa	5,464		1.8	%	34	327,473
Mississippi	4,755		1.6	%	41	271,991
Indiana	4,700		1.6	%	38	303,066
Kentucky	4,165		1.4	%	37	220,095
Kansas	3,695		1.2	%	17	130,257
Connecticut	3,449		1.2	%	13	217,985
New Mexico	3,380		1.1	%	22	130,210
Nevada	3,115		1.1	%	10	90,620
California	3,087		1.0	%	15	151,566
New Hampshire	2,740		0.9	%	13	230,149
South Dakota	2,410		0.8	%	9	124,912
Louisiana	2,368		0.8	%	13	124,161
Maryland	2,276		0.8	%	9	79,028
Washington	1,731		0.6	%	11	87,243
West Virginia	1,636		0.6	%	24	66,746
Oregon	1,240		0.4	%	8	127,673
Utah	945		0.3	%	2	67,659
Nebraska	880		0.3	%	9	33,103
Maine	509		0.2	%	1	32,115
Wyoming	444		0.2	%	2	14,001
Idaho	403		0.1	%	1	35,433
Alaska	246		0.1	%	2	6,630
Vermont	219		0.1	%	2	30,508
North Dakota	197		0.1	%	1	13,050
Rhode Island	164		0.1	%	1	5,800
Montana	77		—	%	1	—
Total	$	297,158	100.0	%	1,653	16,059,492

43

Lease Expirations

As of December 31, 2022, the weighted average remaining term of our leases was 13.9 years (based on annualized base rent), with only 6.1% of our annualized base rent attributable to leases expiring prior to January 1, 2028. The following table sets forth our lease expirations for leases in place as of December 31, 2022 (dollars in thousands): 

Lease Expiration Year (1)	Annualized Base Rent		% of Annualized Base Rent		Number of Properties (2)	Weighted Average Rent Coverage Ratio (3)
2023	$	1,306	0.4	%	14	3.1	x
2024	5,076		1.7	%	49	5.8	x
2025	2,246		0.8	%	19	2.1	x
2026	2,790		0.9	%	19	4.5	x
2027	6,852		2.3	%	66	2.5	x
2028	4,056		1.4	%	13	2.2	x
2029	5,671		1.9	%	78	3.9	x
2030	4,495		1.5	%	49	6.2	x
2031	13,773		4.6	%	80	2.9	x
2032	11,295		3.8	%	46	3.8	x
2033	7,446		2.5	%	25	2.9	x
2034	28,544		9.6	%	206	5.8	x
2035	14,916		5.0	%	101	6.7	x
2036	42,248		14.2	%	176	3.7	x
2037	26,486		8.9	%	129	7.3	x
2038	11,451		3.9	%	77	2.4	x
2039	19,157		6.4	%	94	3.8	x
2040	29,976		10.1	%	140	2.7	x
2041	22,841		7.7	%	113	2.4	x
2042	34,316		11.5	%	155	3.3	x
Thereafter	2,217		0.7	%	2	2.3	x
Total/Weighted Average	$	297,158	100.0	%	1,651	4.0	x

 _______________________________________________________________

(1)Expiration year of leases in place as of December 31, 2022, excluding any tenant option renewal periods that have not been exercised.

(2)Excludes two vacant properties.

(3)Weighted by annualized base rent.

Unit Level Rent Coverage

Generally, we seek to acquire investments with healthy rent coverage ratios, and as of December 31, 2022, the weighted average rent coverage ratio of our portfolio was 4.0x. Our portfolio’s unit-level rent coverage ratios (by annualized base rent and excluding leases that do not report unit-level financial information) as of December 31, 2022 are displayed below:

Unit Level Coverage Ratio	% of Total
≥ 2.00x	72.6	%
1.50x to 1.99x	14.3	%
1.00x to 1.49x	8.4	%
< 1.00x	3.0	%
Not reported	1.7	%
	100.0	%

44

Implied Tenant Credit Ratings

Tenant financial distress is typically caused by consistently poor or deteriorating operating performance, near-term liquidity issues or unexpected liabilities. To assess the probability of tenant insolvency, we utilize Moody’s Analytics RiskCalc, which is a model for predicting private company defaults based on Moody’s Analytics Credit Research Database, which incorporates both market and company-specific risk factors. The following table illustrates the portions of our annualized base rent as of December 31, 2022 attributable to leases with tenants having specified implied credit ratings based on their Moody’s RiskCalc scores:

Credit Rating	NR		< 1.00x		1.00 to 1.49x		1.50 to 1.99x		≥ 2.00x
CCC+	—	%	0.4	%	0.3	%	0.2	%	0.6	%
B-	—	%	0.1	%	—	%	—	%	1.6	%
B	—	%	0.3	%	—	%	2.5	%	1.3	%
B+	0.1	%	0.9	%	0.6	%	0.6	%	3.8	%
BB-	—	%	0.1	%	2.0	%	1.7	%	13.6	%
BB	0.2	%	0.5	%	0.7	%	0.6	%	12.4	%
BB+	0.1	%	0.2	%	1.3	%	1.3	%	8.6	%
BBB-	0.2	%	—	%	0.4	%	1.2	%	7.7	%
BBB	—	%	0.4	%	1.7	%	5.3	%	11.3	%
BBB+	—	%	0.1	%	1.1	%	—	%	2.0	%
A-	—	%	—	%	—	%	0.1	%	5.2	%
A	—	%	—	%	—	%	—	%	2.6	%
A+	—	%	—	%	—	%	—	%	0.7	%
AA-	—	%	—	%	—	%	—	%	—	%

_____________________________________

NR    Not reported

Item 3. Legal Proceedings.

We are subject to various lawsuits, claims and other legal proceedings. Management does not believe that the resolution of any of these matters either individually or in the aggregate will have a material adverse effect on our business, financial condition, results of operations or liquidity. Further, from time to time, we are party to various lawsuits, claims and other legal proceedings for which third parties, such as our tenants, are contractually obligated to indemnify, defend and hold us harmless. In some of these matters, the indemnitors have insurance for the potential damages. In other matters, we are being defended by tenants who may not have sufficient insurance, assets, income or resources to satisfy their defense and indemnification obligations to us. The unfavorable resolution of such legal proceedings could, individually or in the aggregate, materially adversely affect the indemnitors' ability to satisfy their respective obligations to us, which, in turn, could have a material adverse effect on our business, financial condition, results of operations or liquidity. It is management's opinion that there are currently no such legal proceedings pending that will, individually or in the aggregate, have such a material adverse effect. Despite management's view of the ultimate resolution of these legal proceedings, we may have significant legal expenses and costs associated with the defense of such matters. Further, management cannot predict the outcome of these legal proceedings and if management's expectation regarding such matters is not correct, such proceedings could have a material adverse effect on our business, financial condition, results of operations or liquidity.

Item 4. Mine Safety Disclosures.

Not applicable.

45

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock is listed on the NYSE under the symbol "EPRT". As of February 10, 2023, there were 191 holders of record of the 144,350,885 outstanding shares of our common stock. Because many of our shares of common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.

Distributions

We have made and intend to continue to make quarterly cash distributions to our common stockholders. In particular, in order to maintain our qualification for taxation as a REIT, we intend to make annual distributions to our stockholders of at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain. However, any future distributions will be at the sole discretion of our Board, and their form, timing and amount, if any, will depend upon a number of factors, including our actual and projected results of operations, FFO, Core FFO, AFFO, liquidity, cash flows and financial condition, the revenue we actually receive from our properties, our operating expenses, our debt service requirements, our capital expenditures, prohibitions and other limitations under our financing arrangements, our REIT taxable income, the annual REIT distribution requirements, applicable law and such other factors as our Board deems relevant. To the extent that our cash available for distribution is less than 90% of our REIT taxable income, we may consider various means to cover any such shortfall, including borrowing under the Revolving Credit Facility or other loans, selling certain of our assets, or using a portion of the net proceeds we receive from offerings of equity, equity-related or debt securities or declaring taxable share dividends. Agreements relating to our indebtedness, including our revolving and term loan credit facilities, limit and, under certain circumstances, could eliminate our ability to make distributions.  See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Description of Certain Debt."

We have determined that, for federal income tax purposes, approximately 79.7% of the distributions paid for the 2022 tax year represented taxable income and 20.3% represented a return of capital.

Issuer Purchases of Equity Securities

During the year ended December 31, 2022, the Company did not repurchase any of its equity securities.

Stock Performance Graph

The following performance graph and related table compare, for the period from June 21, 2018 (the first day our common stock was traded on the NYSE) through December 31, 2022, the cumulative total stockholder return on our common stock with that of the Standard & Poor's 500 Composite Stock Index ("S&P 500") and the FTSE NAREIT All Equity REITs index ("FNER"). The graph and related table assume $100.00 was invested on June 21, 2018 and assumes the reinvestment of all dividends. The historical stock price performance reflected in the graph and related table is not necessarily indicative of future stock price performance.

46

Essential Properties Realty Trust, Inc.

 

Ticker / Index	6/21/2018	12/31/2018	12/31/2019	12/31/2020	6/30/2021	12/31/2021	12/31/2022
EPRT	100.00	103.16	193.63	175.07	228.11	245.86	210.91
S&P 500	100.00	92.65	126.83	147.49	168.77	187.69	150.84
FNER	100.00	94.04	116.57	105.02	127.84	146.21	105.57

 The performance graph and the related table are being furnished solely to accompany this Annual Report on Form 10-K pursuant to Item 201(e) of Regulation S-K, and are not being filed for purposes of Section 18 of the Exchange Act and are not to be incorporated by reference into any filing of ours, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Equity Compensation Plan Information

The information concerning our Equity Compensation Plan will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 6. [Reserved]

47

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and the related notes included elsewhere in this report, as well as the "Business" section of this report. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to our plans and strategies for our business, includes forward‑looking statements that involve risks and uncertainties. You should read "Item 1A. Risk Factors" and the "Special Note Regarding Forward‑Looking Statements" sections of this report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by these forward‑looking statements.

Overview

We are an internally managed real estate company that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. We generally invest in and lease freestanding, single-tenant commercial real estate facilities where a tenant services its customers and conducts activities that are essential to the generation of the tenant’s sales and profits. As of December 31, 2022, 93.0% of our $297.2 million of annualized base rent was attributable to properties operated by tenants in service-oriented and experience-based businesses. "Annualized base rent" means annualized contractually specified cash base rent in effect on December 31, 2022 for all of our leases (including those accounted for as loans or direct financing leases) commenced as of that date and annualized cash interest on our mortgage loans receivable as of that date.

We were organized on January 12, 2018 as a Maryland corporation. We have elected to be taxed as a REIT for federal income tax purposes beginning with the year ended December 31, 2018, and we believe that our current organization, operations and intended distributions will allow us to continue to so qualify. We completed our initial public offering in June 2018. Our common stock is listed on the New York Stock Exchange under the symbol “EPRT”.

Our primary business objective is to maximize stockholder value by generating attractive risk-adjusted returns through owning, managing and growing a diversified portfolio of commercially desirable properties. We have grown significantly since commencing our operations and investment activities in June 2016. As of December 31, 2022, we had a portfolio of 1,653 properties (inclusive of 153 properties which secure our investments in mortgage loans receivable) that was diversified by tenant, industry, concept and geography, had annualized base rent of $297.2 million and was 99.9% occupied. Our portfolio is built based on the following core investment attributes:

Diversification. As of December 31, 2022, our portfolio was 99.9% occupied by 350 tenants operating 538 different brands, or concepts, in 16 industries across 48 states, with none of our tenants contributing more than 3.4% of our annualized base rent. Our goal is that, over time, no more than 5% of our annualized base rent will be derived from any single tenant or more than 1% from any single property.

Long Lease Term. As of December 31, 2022, our leases had a weighted average remaining lease term of 13.9 years (based on annualized base rent), with 6.1% of our annualized base rent attributable to leases expiring prior to January 1, 2028. Our properties generally are subject to long-term net leases that we believe provide us a stable base of revenue from which to grow our portfolio.

Significant Use of Sale-Leaseback Investments. We seek to acquire properties owned and operated by middle-market businesses and lease the properties back to the operators pursuant to our standard lease form. For the year ended December 31, 2022, approximately 97.3% of our investments were sale-leaseback transactions.

Significant Use of Master Leases. As of December 31, 2022, 65.0% of our annualized base rent was attributable to master leases.

Contractual Base Rent Escalation. As of December 31, 2022, 98.2% of our leases (based on annualized base rent) provided for increases in future base rent at a weighted average rate of 1.6% per year.

Smaller, Low Basis Single-Tenant Properties. We generally invest in freestanding “small-box” single- tenant properties. As of December 31, 2022, our average investment per property was $2.4 million (which equals

48

our aggregate investment in our properties (including transaction costs, lease incentives and amounts funded for construction in progress) divided by the number of properties owned at such date), and we believe investments of similar size allow us to grow our portfolio without concentrating a large amount of capital in individual properties and limit our exposure to events that may adversely affect a particular property. Additionally, we believe that many of our properties are generally fungible and appropriate for multiple commercial uses, which reduces the risk that a particular property may become obsolete and enhances our ability to sell a property if we choose to do so.

Healthy Rent Coverage Ratio and Tenant Financial Reporting. As of December 31, 2022, our portfolio’s weighted average rent coverage ratio was 4.0x, and 98.6% of our leases (based on annualized base rent) obligate the tenant to periodically provide us with specified unit-level financial reporting.

Our Competitive Strengths

We believe the following competitive strengths distinguish us from our competitors and allow us to compete effectively in the single-tenant, net-lease market:

Carefully Constructed Portfolio of Recently Acquired Properties Leased to Service-Oriented or Experience-Based Tenants. We have strategically constructed a portfolio that is diversified by tenant, industry and geography and generally avoids exposure to businesses that we believe are subject to pressure from e-commerce. Our properties are generally subject to long-term net leases that we believe provide us with a stable and predictable base of revenue from which to grow our portfolio. As of December 31, 2022, we had a portfolio of 1,653 properties, with annualized base rent of $297.2 million, which was purposefully selected by our management team in accordance with our focused and disciplined investment strategy. Our portfolio is diversified with 350 tenants operating 538 different concepts across 48 states and in 16 distinct industries. None of our tenants contributed more than 3.4% of our annualized base rent as of December 31, 2022, and our strategy targets a scaled portfolio that, over time, derives no more than 5% of our annualized base rent from any single tenant or more than 1% from any single property.

•We focus on investing in properties leased to tenants operating in service-oriented or experience- based businesses such as car washes, restaurants (primarily quick service restaurants), early childhood education, medical and dental services, convenience stores, automotive services, equipment rental, entertainment and health and fitness, which we believe are generally more insulated from e-commerce pressure than many others. As of December 31, 2022, 93.0% of our annualized base rent was attributable to tenants operating service-oriented and experience-based businesses.

•We believe that our portfolio’s diversity and our rigorous underwriting decrease the impact on us of an adverse event affecting a specific tenant, industry or region, and our focus on leasing to tenants in industries that we believe are well-positioned to withstand competition from e-commerce businesses increases the stability and predictability of our rental revenue.

Differentiated Investment Strategy. We seek to acquire and lease freestanding, single-tenant commercial real estate facilities where a tenant services its customers and conducts activities at the property that are essential to the generation of its sales and profits. We primarily seek to invest in properties leased to unrated middle- market companies that we determine have attractive credit characteristics and stable operating histories. We believe middle-market companies are underserved from a capital perspective and that we can offer them attractive real estate financing solutions while allowing us to enter into lease agreements that provide us with attractive risk-adjusted returns. Furthermore, many net-lease transactions with middle- market companies involve properties that are individually relatively small, which allows us to avoid concentrating a large amount of capital in individual properties. We maintain close relationships with our tenants, which we believe allows us to source additional investments and become the capital provider of choice as our tenants’ businesses grow and their real estate needs increase.

Disciplined Underwriting Leading to Strong Portfolio Characteristics. We generally seek to invest in single assets or portfolios of assets through transactions which range in aggregate purchase price from $2 million to $100 million. Our size allows us to focus on investing in a segment of the market that we believe is underserved from a capital perspective and where we can originate or acquire relatively smaller assets on attractive terms that provide meaningful growth to our portfolio. In addition, we seek to invest in commercially desirable properties that are suitable for use by different tenants, offer attractive risk-adjusted returns and possess characteristics that reduce our real estate investment risks.

49

Experienced and Proven Management Team. Our senior management has significant experience in the    net-lease industry and a track record of growing net-lease businesses to significant scale.

•Our senior management team has been responsible for our focused and disciplined investment strategy and for developing and implementing our investment sourcing, underwriting, closing and asset management infrastructure, which we believe can support significant investment growth without a proportionate increase in our operating expenses. As of December 31, 2022, exclusive of our initial investment in a portfolio of 262 net leased properties, consisting primarily of restaurants, that we acquired on June 16, 2016 as part of the liquidation of General Electric Capital Corporation for an aggregate purchase price of $279.8 million (including transaction costs) (the "Initial Portfolio"), 87.6% of our portfolio’s annualized base rent was attributable to internally originated sale-leaseback transactions and 85.8% was acquired from parties who had previously engaged in one or more transactions that involved a member of our senior management team (including operators and tenants and other participants in the net lease industry, such as brokers, intermediaries and financing sources). The substantial experience, knowledge and relationships of our senior leadership team provide us with an extensive network of contacts that we believe allows us to originate attractive investment opportunities and effectively grow our business.

Scalable Platform Allows for Significant Growth. Building on our senior leadership team’s experience in net-lease real estate investing, we have developed leading origination, underwriting, financing and property management capabilities. Our platform is scalable, and we seek to leverage our capabilities to improve our efficiency and processes to continue to seek attractive risk- adjusted growth. While we expect that our general and administrative expenses could increase as our portfolio grows, we expect that such expenses as a percentage of our portfolio and our revenues will decrease over time due to efficiencies and economies of scale.

Extensive Tenant Financial Reporting Supports Active Asset Management. We seek to enter into lease agreements that obligate our tenants to periodically provide us with corporate and/or unit-level financial reporting, which we believe enhances our ability to actively monitor our investments, actively evaluate credit risk, negotiate lease renewals and proactively manage our portfolio to protect stockholder value. As of December 31, 2022, leases contributing 98.6% of our annualized base rent required tenants to provide us with specified unit-level financial information, and leases contributing 98.9% of our annualized base rent required tenants to provide us with corporate-level financial reporting.

Our Business and Growth Strategies

Our primary business objective is to maximize stockholder value by generating attractive risk-adjusted returns through owning, managing and growing a diversified portfolio of commercially desirable properties. We intend to pursue our objective through the following business and growth strategies.

Structure and Manage Our Diverse Portfolio with Focused and Disciplined Underwriting and Risk Management. We seek to maintain the stability of our rental revenue and maximize the long-term return on our investments while continuing our growth by using our focused and disciplined underwriting and risk management expertise. When underwriting assets, we emphasize commercially desirable properties, with strong operating performance, healthy rent coverage ratios and tenants with attractive credit characteristics.

•Leasing. In general, we seek to enter into leases with (i) relatively long terms (typically with initial terms of 15 years or more and tenant renewal options); (ii) attractive rent escalation provisions; (iii) healthy rent coverage ratios; and (iv) tenant obligations to periodically provide us with financial information, which provides us with information about the operating performance of the leased property and/or tenant and allows us to actively monitor the security of payments under the lease on an ongoing basis. We strongly prefer to use master lease structures, pursuant to which we lease multiple properties to a single tenant on a unitary (i.e., “all or none”) basis. In addition, in the context of our sale-leaseback investments, we generally seek to establish contract rents that are at or below prevailing market rents, which we believe enhances tenant retention and reduces our releasing risk if a lease is rejected in a bankruptcy proceeding or expires.

•Diversification. We monitor and manage the diversification of our portfolio in order to reduce the risks associated with adverse developments affecting a particular tenant, property, industry or region. Our strategy targets a portfolio that, over time, will (1) derive no more than 5% of its annualized base rent from any single tenant or more than 1% of its annualized base rent from any single property, (2) be primarily leased to tenants operating in service-oriented or experience- based businesses and (3) avoid significant

50

geographic concentration. While we consider these criteria when making investments, we may be opportunistic in managing our business and make investments that do not meet one or more of these criteria if we believe the opportunity presents an attractive risk-adjusted return.

•Asset Management. We are an active asset manager and regularly review each of our properties to evaluate various factors, including, but not limited to, changes in the business performance at the property, credit of the tenant and local real estate market conditions. Among other things, we use Moody’s Analytics RiskCalc, which is a model for predicting private company defaults based on Moody’s Analytics Credit Research Database, to proactively detect credit deterioration. Additionally, we monitor market rents relative to in-place rents and the amount of tenant capital expenditures in order to refine our tenant retention and alternative use assumptions. Our management team utilizes our internal credit diligence to monitor the credit profile of each of our tenants on an ongoing basis. We believe that this proactive approach enables us to identify and address issues in a timely manner and to determine whether there are properties in our portfolio that are appropriate for disposition.

•In addition, as part of our active portfolio management, we may selectively dispose of assets that we conclude do not offer a return commensurate with the investment risk, contribute to unwanted geographic, industry or tenant concentrations, or may be sold at a price we determine is attractive. We believe that our underwriting processes and active asset management enhance the stability of our rental revenue by reducing default losses and increasing the likelihood of lease renewals.

Focus on Relationship-Based Sourcing to Grow Our Portfolio by Originating Sale-Leaseback Transactions. We plan to continue our disciplined growth by originating sale-leaseback transactions and opportunistically making acquisitions of properties subject to net leases that contribute to our portfolio’s tenant, industry and geographic diversification. As of December 31, 2022, exclusive of the Initial Portfolio, 87.6% of our portfolio’s annualized base rent was attributable to internally originated sale-leaseback transactions and 85.8% was acquired from parties who had previously engaged in transactions that involved a member of our senior management team (including operators and tenants and other participants in the net lease industry, such as brokers, intermediaries and financing sources). In addition, we seek to leverage our relationships with our tenants to facilitate investment opportunities, including selectively agreeing to reimburse certain of our tenants for development costs at our properties in exchange for contractually specified rent that generally increases proportionally with our funding. As of December 31, 2022, exclusive of the Initial Portfolio, approximately 46.6% of our investments were sourced from operators and tenants who had previously consummated a transaction involving a member of our management team. We believe our senior management team’s reputation, in-depth market knowledge and extensive network of longstanding relationships in the net lease industry provide us access to an ongoing pipeline of attractive investment opportunities.

Focus on Middle-Market Companies in Service-Oriented or Experience-Based Businesses. We primarily focus on investing in properties that we lease on a long-term, triple-net basis to middle- market companies that we determine have attractive credit characteristics and stable operating histories. Properties leased to middle-market companies may offer us the opportunity to achieve superior risk-adjusted returns as a result of our extensive and disciplined credit and real estate analysis, lease structuring and portfolio composition. We believe our capital solutions are attractive to middle- market companies, as such companies often have limited financing options as compared to larger, credit rated organizations. We also believe that, in many cases, smaller transactions with middle- market companies will allow us to maintain and grow our portfolio’s diversification. Middle-market companies are often willing to enter into leases with structures and terms that we consider attractive (such as master leases and leases that require ongoing tenant financial reporting) and believe contribute to the stability of our rental revenue.

•In addition, we emphasize investments in properties leased to tenants engaged in service-oriented or experience-based businesses, such as car washes, restaurants (primarily quick service restaurants), early childhood education, medical and dental services, convenience stores, automotive services, equipment rental, entertainment and health and fitness, as we believe these businesses are generally more insulated from e-commerce pressure than many others.

Internal Growth Through Long-Term Triple-Net Leases That Provide for Periodic Rent Escalations. We seek to enter into long-term (typically with initial terms of 15 years or more and tenant renewal options), triple-net leases that provide for periodic contractual rent escalations. As of December 31, 2022, our leases had a weighted average remaining lease term of 13.9 years (based on annualized base rent), with only 6.1% of our

51

annualized base rent attributable to leases expiring prior to January 1, 2028, and 98.2% of our leases (based on annualized base rent) provided for increases in future base rent at a weighted average of 1.6% per year.

Actively Manage Our Balance Sheet to Maximize Capital Efficiency. We seek to maintain a prudent balance between debt and equity financing and to maintain funding sources that lock in long-term investment spreads and limit interest rate sensitivity. We target a level of net debt that, over time, is generally less than six times our annualized adjusted EBITDAre (as defined in "Non-GAAP Financial Measures" below). We have access to multiple sources of debt capital, including the investment grade-rated unsecured bond market and bank debt, through our revolving credit facility and our unsecured term loan facilities.

Historical Investment and Disposition Activity

The following table sets forth select information about our quarterly investment activity for the quarters ended March 31, 2021 through December 31, 2022 (dollars in thousands):

	Three Months Ended
	March 31, 2022			June 30, 2022			September 30, 2022			December 31, 2022
Investment Activity	$	237,795		$	175,738		$	195,454		$	328,370
Number of transactions	23			23			27			39
Property count	105			39			40			115
Avg. investment per unit	$	2,187		$	3,870		$	3,750		$	2,782
Cash Cap Rates1	7.0		%	7.0		%	7.1		%	7.5		%
GAAP Cap Rates2	7.8		%	8.0		%	8.2		%	8.8		%
Master Lease Percentage 3,4	83		%	86		%	68		%	90		%
Sale-Leaseback Percentage 3,5	100		%	100		%	89		%	99		%
Existing Relationship Percentage	83		%	79		%	94		%	95		%
Percentage of Financial Reporting 3,6	100		%	100		%	100		%	100		%
Rent Coverage Ratio	3.3		x	2.7		x	4.4		x	3.2		x
Lease Term Years	15.0			17.2			16.5			18.7
	Three Months Ended
	March 31, 2021			June 30, 2021			September 30, 2021			December 31, 2021
Investment Activity	$	197,816		$	223,186		$	230,755		$	322,203
Number of transactions	22			34			31			55
Property count	74			94			85			96
Avg. investment per unit	$	2,650		$	2,354		$	2,676		$	3,230
Cash Cap Rates1	7.0		%	7.1		%	7.0		%	6.9		%
GAAP Cap Rates2	7.9		%	7.8		%	7.9		%	7.8		%
Master Lease Percentage 3,4	79		%	83		%	80		%	59		%
Sale-Leaseback Percentage 3,5	85		%	88		%	84		%	96		%
Existing Relationship Percentage	81		%	97		%	81		%	89		%
Percentage of Financial Reporting 3,6	100		%	100		%	100		%	98		%
Rent Coverage Ratio	3.0		x	2.7		x	2.8		x	3.0		x
Lease Term Years	16.1			13.5			16.4			16.3

_____________________________________

(1)    Cash annualized base rent for the first full month after the investment divided by the gross investment in the property plus transaction costs.

(2)    GAAP rent and interest income for the first twelve months after the investment divided by the gross investment in the property plus transaction costs.

(3)    As a percentage of annualized base rent.

(4)    Includes investments in mortgage loans receivable collateralized by more than one property.

(5)    Includes investments in mortgage loans receivable made in support of sale-leaseback transactions.

52

The following table sets forth select information about our quarterly disposition activity for the quarters ended March 31, 2021 through December 31, 2022 (dollars in thousands):

	Three Months Ended
	March 31, 2022			June 30, 2022			September 30, 2022			December 31, 2022
Disposition Volume1	$	18,443		$	26,091		$	35,513		$	75,522
Cash cap rate on leased assets 2	7.1		%	6.2		%	6.2		%	6.9		%
Leased properties sold 3	6			8			12			25
Vacant properties sold 3	—			—			—			1
	Three Months Ended
	March 31, 2021			June 30, 2021			September 30, 2021			December 31, 2021
Disposition Volume1	$	25,197		$	19,578		$	10,089		$	4,466
Cash cap rate on leased assets 2	7.1		%	7.1		%	6.5		%	6.0		%
Leased properties sold 3	15			6			11			2
Vacant properties sold 3	1			1			—			—

_____________________________________

(1)     Net of transaction costs.

(2)     Annualized base rent at time of sale divided by the gross sale price (excluding transaction costs) for the property.

(3)     Property count excludes dispositions of undeveloped land parcels or dispositions where only a portion of the owned parcel was sold.

COVID-19 Pandemic Discussion

For much of 2020, the COVID-19 pandemic created significant uncertainty and economic disruption that adversely affected the Company and its tenants. The adverse impact of the pandemic moderated during 2021 and significantly diminished during 2022. However, the continuing impact of the COVID-19 pandemic and its duration are unclear, and various factors could erode the progress that has been made against the virus to date. If conditions similar to those experienced in 2020, at the height of the pandemic, were to reoccur, they would adversely impact the Company and its tenants. The Company continues to closely monitor the impact of COVID-19 on all aspects of its business.

Liquidity and Capital Resources

As of December 31, 2022, we had $3.8 billion of net investments in our investment portfolio, consisting of investments in 1,653 properties (inclusive of 153 properties which secure our investments in mortgage loans receivable), with annualized base rent of $297.2 million. Substantially all of our cash from operations is generated by our investment portfolio.

The liquidity requirements for operating our Company consist primarily of funding our investment activities, servicing our outstanding indebtedness and paying our general and administrative expenses. The occupancy level of our portfolio is high (99.9% as of December 31, 2022) and, because substantially all of our leases are triple-net (with our tenants generally responsible for the maintenance, insurance and property taxes associated with the leased properties), our liquidity requirements are not significantly impacted by property costs. When a property becomes vacant because the tenant has vacated the property due to default or at the expiration of the lease term without a renewal or new lease being executed, we incur the property costs not paid by the tenant, as well as those property costs accruing during the time it takes to locate a new tenant or to sell the property. As of December 31, 2022, two of our properties were vacant, significantly less than 1% of our portfolio, and all remaining properties were subject to a lease. We expect to incur property costs from time to time in periods during which properties that become vacant are being marketed for lease or sale. In addition, we may recognize an expense for certain property costs, such as real estate taxes billed in arrears, if we believe the tenant is likely to vacate the property before making payment on those obligations. The amount of such property costs can vary quarter-to-quarter based on the timing of property vacancies and the level of underperforming properties; however, we do not expect that such costs will be significant to our operations.

We intend to continue to grow through additional investments in stand-alone single tenant properties. To accomplish this objective, we seek to invest in real estate with a combination of debt and equity capital and with

53

cash from operations that we do not distribute to our stockholders. When we sell properties, we generally reinvest the cash proceeds from our sales in new property acquisitions. Our short-term liquidity requirements also include the funding needs associated with 40 properties where we have agreed to provide construction financing or reimburse the tenant for certain development, construction and renovation costs in exchange for contractual payments of interest or increased rent that generally increases in proportion with our level of funding. As of December 31, 2022, we agreed to provide construction financing or reimburse the tenant for certain development, construction and renovation costs in an aggregate amount of $107.6 million, and, as of such date, we funded $73.0 million of this commitment. We expect to fund the remainder of this commitment by December 31, 2023.

Additionally, as of February 10, 2023, we were under contract to acquire 7 properties with an aggregate purchase price of $16.2 million, subject to completion of our due diligence procedures and satisfaction of customary closing conditions. We expect to meet our short-term liquidity requirements, including our investment in potential future single tenant properties, primarily with our cash and cash equivalents, net cash from operating activities and borrowings under the Revolving Credit Facility, and potentially through proceeds generated from our 2022 ATM Program, which has $403.9 million remaining under the program as of February 10, 2023.

Our long-term liquidity requirements consist primarily of funds necessary to acquire additional properties and repay indebtedness. We expect to meet our long-term liquidity requirements through various sources of capital, including net cash from operating activities, borrowings under our Revolving Credit Facility, future debt financings, sales of common stock under our ATM Program, and proceeds from the sale of selected properties in our portfolio. However, at any point in time, there may be a number of factors that could have a material and adverse effect on our ability to access these capital sources, including unfavorable conditions in the overall equity and credit markets, our level of leverage, the portion of our portfolio that is unencumbered, borrowing restrictions imposed by our existing debt agreements, general market conditions for real estate and potentially REITs specifically, our operating performance, our liquidity and general market perceptions about us. The success of our business strategy will depend, to a significant degree, on our ability to access these various capital sources to fund our future investments in single tenant properties and thereby grow our cash flows.

An additional liquidity need is funding the required level of distributions, generally 90% of our REIT taxable income (determined without regard to the dividends paid deduction and excluding any net capital gain), that are among the requirements for us to continue to qualify for taxation as a REIT. During the year ended December 31, 2022, our Board declared total cash distributions of $1.075 per share of common stock. Holders of OP Units are entitled to distributions per unit equivalent to those paid by us per share of common stock. During the year ended December 31, 2022, we paid $141.7 million of distributions to common stockholders and OP Unit holders, and as of December 31, 2022, we recorded $39.4 million of distributions payable to common stockholders and OP Unit holders. To continue to qualify for taxation as a REIT, we must make distributions to our stockholders aggregating annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. As a result of this requirement, we cannot rely on retained earnings to fund our business needs to the same extent as other entities that are not REITs. If we do not have sufficient funds available to us from our operations to fund our business needs, we will need to find alternative ways to fund those needs. Such alternatives may include, among other things, selling properties (whether or not the sales price is optimal or otherwise meets our strategic long-term objectives), incurring additional indebtedness or issuing equity securities in public or private transactions. The availability and attractiveness of the terms of these potential sources of financing cannot be assured.

Generally, our short-term debt capital needs are provided through the use of our Revolving Credit Facility. We manage our long-term leverage position through the issuance of long-term fixed-rate debt on a secured or unsecured basis. Generally, we will seek to issue long-term debt on an unsecured basis as we believe this facilitates greater flexibility in the management of our existing portfolio and our ability to retain optionality in our overall financing and growth strategy. By seeking to match the expected cash inflows from our long-term leases with the expected cash outflows for our long-term debt, we seek to "lock in," for as long as is economically feasible, the expected positive spread between our scheduled cash inflows on our leases and the cash outflows on our debt obligations. In this way, we seek to reduce the risk that increases in interest rates would adversely impact our cash flows and results of operations. Our ability to execute leases that contain annual rent escalations also contributes to our ability to manage the risk of a rising interest rate environment. We use various financial instruments designed to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies such as interest rate swaps and caps, depending on our analysis of the interest rate environment and the costs and risks of such strategies. Although we are not required to maintain a particular leverage ratio and may not be able to do so, we generally consider that, over time, a level of net debt (which includes recourse and non-recourse borrowings and

54

any outstanding preferred stock less cash and cash equivalents and restricted cash available for future investment) that is less than six times our annualized adjusted EBITDAre is prudent for a real estate company like ours.

As of December 31, 2022, all of our long-term debt was fixed-rate debt or was effectively converted to a fixed-rate for the term of the debt though hedging strategies and our weighted average debt maturity was 5.2 years. As we continue to invest in real estate properties and grow our real estate portfolio, we intend to manage our long-term debt maturities to reduce the risk that a significant amount of our debt will mature in any single year in the future.

Future sources of debt capital may include public issuances of senior unsecured notes, term borrowings, mortgage financing of a single-asset or a portfolio of assets and CMBS borrowings. These sources of debt capital may offer us the opportunity to lower our cost of funding and further diversify our sources of debt capital. Over time, we may choose to issue preferred equity as a part of our overall strategy for funding our business. As our outstanding debt matures, we may refinance it as it comes due or choose to repay it using cash and cash equivalents or borrowings under our Revolving Credit Facility. We believe that the cash generated by our operations, together with our cash and cash equivalents at December 31, 2022, our borrowing availability under the Revolving Credit Facility and our potential access to additional sources of capital, will be sufficient to fund our operations for the foreseeable future and allow us to invest in the real estate for which we currently have made commitments.

Supplemental Guarantor Information

In March 2020, the SEC adopted amendments to Rule 3-10 of Regulation S-X and created Rule 13-01 to simplify disclosure requirements related to certain registered securities. The rule became effective January 4, 2021. The Company and the Operating Partnership have filed a registration statement on Form S-3 with the SEC registering, among other securities, debt securities of the Operating Partnership, which, unless otherwise specified, will be fully and unconditionally guaranteed by the Company. At December 31, 2022, the Operating Partnership had issued and outstanding $400.0 million of senior notes. The obligations of the Operating Partnership under the senior notes are guaranteed on a senior basis by the Company. The guarantee is full and unconditional, and the Operating Partnership is a consolidated subsidiary of the Company.

As a result of the amendments to Rule 3-10 of Regulation S-X, subsidiary issuers of obligations guaranteed by the parent are not required to provide separate financial statements, provided that the subsidiary obligor is consolidated into the parent company’s consolidated financial statements, the parent guarantee is “full and unconditional” and, subject to certain exceptions as set forth below, the alternative disclosure required by Rule 13-01 is provided, which includes narrative disclosure and summarized financial information. Accordingly, separate consolidated financial statements of the Operating Partnership have not been presented. Furthermore, as permitted under Rule 13-01(a)(4)(vi), the Company has excluded the summarized financial information for the Operating Partnership as the assets, liabilities and results of operations of the Company and the Operating Partnership are not materially different than the corresponding amounts presented in the consolidated financial statements of the Company, and management believes such summarized financial information would be repetitive and not provide incremental value to investors.

55

Description of Certain Debt

The following table summarizes our outstanding indebtedness as of December 31, 2022 and 2021:

		Principal Outstanding				Weighted Average Interest Rate (1)
(in thousands)	Maturity Date	December 31, 2022		December 31, 2021		December 31, 2022	December 31, 2021
Unsecured term loans:
2024 Term Loan	April 2024	$	200,000	$	200,000	2.9%	3.3%
2027 Term Loan	February 2027	430,000		430,000		2.4%	3.0%
2028 Term Loan	January 2028	400,000		—		4.6%	—%
Senior unsecured notes	July 2031	400,000		400,000		3.1%	3.1%
Revolving Credit Facility	April 2023 (2)	—		144,000		—%	1.3%
Total principal outstanding		$	1,430,000	$	1,174,000	3.3%	2.9%

_______________________________________________________________

(1)Interest rates are presented after giving effect to our interest rate swap and lock agreements, where applicable.

Unsecured Revolving Credit Facility and 2024/2028 Term Loan

Through our Operating Partnership, we are party to an Amended and Restated Credit Agreement with a group of lenders, which was amended on July 25, 2022 (the "Credit Agreement") and provides for revolving loans of up to $600.0 million (the "Revolving Credit Facility") and an additional $600.0 million of term loans, consisting of a $200.0 million initial term loan (the "2024 Term Loan") and a $400.0 million second tranche term loan (the “2028 Term Loan” and, together with the 2024 Term Loan, the “2024/2028 Term Loan”). Concurrently with the closing of the July 25, 2022 amendment, $250.0 million of the 2028 Term Loan was drawn and the remaining $150.0 million of the 2028 Term Loan was drawn in October 2022. Such amendment also amended the applicable margin grid such that the applicable pricing is based on the credit rating of the Company’s long-term senior unsecured non-credit enhanced debt for borrowed money (subject to a single step-down in the applicable pricing if the Company achieves a consolidated leverage ratio that is less than 0.35 to 1:00 while maintaining a credit rating of BBB/Baa2 from S&P, Moody's and/or Fitch).

The Revolving Credit Facility matures on February 10, 2026, with two extension options of six months each, exercisable by the Operating Partnership subject to the satisfaction of certain conditions. The 2024 Term Loan matures on April 12, 2024 and the 2028 Term Loan matures on January 25, 2028. The loans under each of the Revolving Credit Facility and the 2024/2028 Term Loan initially bear interest at an annual rate of applicable Adjusted Term SOFR (as defined in the Credit Agreement) plus an applicable margin (which applicable margin varies between the Revolving Credit Facility and the 2024/2028 Term Loan). The Adjusted Term SOFR is a rate with a term equivalent to the interest period applicable to the relevant borrowing. In addition, the Operating Partnership is required to pay a revolving facility fee throughout the term of the Revolving Credit Facility. The applicable margin and the revolving facility fee rate are a spread and rate, as applicable, set according to the credit ratings provided by S&P, Moody's and/or Fitch.

Each of the Revolving Credit Facility and the 2024/2028 Term Loan is freely pre-payable at any time. Outstanding credit extensions under the Revolving Credit Facility are mandatorily payable if the amount of such credit extensions exceeds the revolving facility limit. The Operating Partnership may re-borrow amounts paid down on the Revolving Credit Facility prior to its maturity. Loans repaid under the 2024/2028 Term Loan cannot be reborrowed. The Credit Agreement has an accordion feature to increase, subject to certain conditions, the maximum availability of credit (either through increased revolving commitments or additional term loans) by up to $600.0 million.

The Operating Partnership is the borrower under the Credit Agreement, and we and certain of the subsidiaries of the Operating Partnership that own a direct or indirect interest in an eligible real property asset are guarantors under the Credit Agreement. Under the terms of the Credit Agreement, we are subject to customary restrictive financial and nonfinancial covenants which, among other things, require us to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios. As of December 31, 2022, we were in compliance with these covenants.

56

The Credit Agreement also restricts our ability to pay distributions to our stockholders under certain circumstances. However, we may make distributions to the extent necessary to maintain our qualification as a REIT under the Code. In addition to the financial covenants described above, the Credit Agreement contains customary affirmative and negative covenants that, among other things and subject to exceptions, limit or restrict our ability to incur indebtedness and liens, consummate mergers or other fundamental changes, dispose of assets, make certain restricted payments, make certain investments, modify our organizational documents, transact with affiliates, change our fiscal periods, provide negative pledge clauses, make subsidiary distributions, enter into certain new lines of business or engage in certain activities, and fail to meet the requirements for taxation as a REIT.

2027 Term Loan

On February 18, 2022, we, through our Operating Partnership, amended our existing $430.0 million term loan credit facility (the "2027 Term Loan") to, among other things, reduce the Applicable Margin, extend the maturity date to February 18, 2027 and make certain other changes consistent with market terms and conditions. In August 2022, the 2027 Term Loan was further amended to revise the applicable margin grid such that the applicable pricing is based on the credit rating of the Company’s long-term senior unsecured non-credit enhanced debt for borrowed money (subject to a single step-down in the applicable pricing if the Company achieves a consolidated leverage ratio that is less than 0.35 to 1:00 while maintaining a credit rating of BBB/Baa2 provided by S&P, Moody's and/or Fitch).

The borrowings under the 2027 Term Loan, as amended, bear interest at an annual rate of applicable Adjusted Term SOFR (as defined in the Credit Agreement) plus an applicable margin. The Adjusted Term SOFR is a rate with a term equivalent to the interest period applicable to the relevant borrowing. The applicable margin was initially a spread set according to a leverage-based pricing grid. In May 2022, the Operating Partnership made an irrevocable election to have the applicable margin be a spread set according to the Company’s corporate credit ratings provided by S&P, Moody’s and/or Fitch. The 2027 Term Loan is pre-payable at any time by the Operating Partnership without penalty. The 2027 Term Loan has an accordion feature to increase, subject to certain conditions, the maximum availability of the facility up to an aggregate of $500 million.

The Operating Partnership is the borrower under the 2027 Term Loan, and we and certain of the subsidiaries of the Operating Partnership that own a direct or indirect interest in an eligible real property asset are guarantors under the facility. Under the terms of the 2027 Term Loan, we are subject to customary restrictive financial and nonfinancial covenants which, among other things, require us to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios. As of December 31, 2022, we were in compliance with these covenants.

The 2027 Term Loan restricts our ability to pay distributions to our stockholders under certain circumstances. However, we may make distributions to the extent necessary to maintain our qualification as a REIT under the Code. The 2027 Term Loan contains certain additional covenants that, subject to exceptions, limit or restrict our incurrence of indebtedness and liens, disposition of assets, transactions with affiliates, mergers and fundamental changes, modification of organizational documents, changes to fiscal periods, making of investments, negative pledge clauses and lines of business and REIT qualification.

Senior Unsecured Notes

On June 22, 2021, the Operating Partnership issued $400.0 million aggregate principal amount of 2.950% Senior Notes due 2031 (the "2031 Notes"), resulting in net proceeds of $396.6 million. The 2031 Notes were issued by the Operating Partnership and the obligations of the Operating Partnership under the 2031 Notes are fully and unconditionally guaranteed on a senior basis by the Company. In May 2021, the Company entered into a treasury-lock agreement which was designated as a cash flow hedge associated with the expected public offering of such notes. In June 2021, the agreement was settled in accordance with its terms.

The indenture and supplemental indenture creating the 2031 Notes contain customary restrictive covenants, including limitations on our ability to incur additional secured and unsecured indebtedness. As of December 31, 2022, we were in compliance with these covenants.

57

Cash Flows

Comparison of the years ended December 31, 2022 and 2021

As of December 31, 2022, we had $62.3 million of cash and cash equivalents and $9.2 million of restricted cash, as compared to $59.8 million and none, respectively, as of December 31, 2021.

Cash Flows for the year ended December 31, 2022

During the year ended December 31, 2022, net cash provided by operating activities was $211.0 million, as compared $167.4 million during 2021, an increase of $43.6 million. Our cash flows from operating activities primarily depend on the occupancy of our portfolio, the rental rates specified in our leases and the collectability of such rent, our property operating expenses and other general and administrative costs. Cash inflows during 2022 related to net income adjusted for non-cash items of $210.5 million (net income of $134.7 million adjusted for non-cash items, including the addition of depreciation and amortization of tangible, intangible and right-of-use real estate assets, amortization of deferred financing costs and other non-cash interest expense, loss on debt extinguishment and provision for impairment of real estate, offset by the subtraction of the change in our provision for credit losses, gain on dispositions of real estate, net, straight-line rent receivable, equity-based compensation expense and adjustment to rental revenue for tenant credit, which in aggregate net to an addition of $75.7 million), a decrease in rent receivables, prepaid expenses and other assets of $4.5 million and a decrease in accrued liabilities and other payables of $3.9 million. The increase in net cash provided by operating activities was primarily driven by the increased size of our investment portfolio during 2022.

Net cash used in investing activities during the year ended December 31, 2022 was $706.1 million, as compared to $829.7 million during 2021, a decrease of $123.6 million. Our net cash used in investing activities is generally used to fund our investments in real estate, the development of our construction in progress and investments in loans receivable, offset by cash provided from the disposition of real estate and principal collections on our loans and direct financing lease receivables. The cash used in investing activities during 2022 primarily included $728.7 million to fund investments in real estate, $115.0 million of investments in loans receivable, $51.9 million to fund construction in progress and $7.5 million paid to tenants as lease incentives. These cash outflows were partially offset by $126.6 million of proceeds from sales of investments, net of disposition costs, and $70.4 million of principal collections on our loans and direct financing lease receivables. The decrease in net cash used in investing activities was primarily due to our increased level of proceeds from sales of investments during 2022.

Net cash provided by financing activities was $506.8 million during the year ended December 31, 2022, as compared to $689.1 million during 2021, a decrease of $182.3 million. Our net cash provided by financing activities in 2022 related to cash inflows of $403.9 million from the issuance of common stock in a follow-on equity offering and through our ATM Program, and $299.0 million of borrowings under the Revolving Credit Facility. These cash inflows were partially offset by $443.0 million of repayments on the Revolving Credit Facility, the payment of $141.7 million in dividends, $1.0 million of offering costs paid related to our follow-on offering and the ATM Program, the payment of deferred financing costs of $5.0 million and $2.5 million of payments for taxes related to the net settlement of equity awards..

Cash Flows for the year ended December 31, 2021

During the year ended December 31, 2021, net cash provided by operating activities was $167.4 million, as compared to $99.4 million during 2020, an increase of $68.0 million. Our cash flows from operating activities primarily depend on the occupancy of our portfolio, the rental rates specified in our leases and the collectability of such rent, our property operating expenses and other general and administrative costs. Cash inflows during 2021 related to net income adjusted for non-cash items of $155.6 million (net income of $96.2 million adjusted for non-cash items, including the addition of depreciation and amortization of tangible, intangible and right-of-use real estate assets, amortization of deferred financing costs and other non-cash interest expense, loss on repayment and repurchase of secured borrowings and provision for impairment of real estate, offset by the subtraction of the change in our provision for credit losses, gain on dispositions of real estate, net, straight-line rent receivable, equity-based compensation expense and adjustment to rental revenue for tenant credit, which in aggregate net to an addition of $59.4 million), a decrease in rent receivables, prepaid expenses and other assets of $2.2 million and an increase in accrued liabilities and other payables of $14.4 million. These net cash inflows were partially offset by payments made in settlement of cash flow hedges of $4.8 million. The increase in net cash provided by operating activities was primarily driven by the increased size of our investment portfolio during 2021.

58

Net cash used in investing activities during the year ended December 31, 2021 was $829.7 million, as compared to $545.5 million in the same period in 2020, an increase of $284.2 million. Our net cash used in investing activities is generally used to fund our investments in real estate, the development of our construction in progress and investments in loans receivable, offset by cash provided from the disposition of real estate and principal collections on our loans and direct financing lease receivables. The cash used in investing activities during 2021 primarily included $840.0 million to fund investments in real estate, $136.4 million of investments in loans receivable, $9.3 million to fund construction in progress and $2.2 million paid to tenants as lease incentives. These cash outflows were partially offset by $100.5 million of principal collections on our loans and direct financing lease receivables and $58.4 million of proceeds from sales of investments, net of disposition costs. The increase in net cash used in investing activities was primarily due to our increased level of investments in real estate and loans receivables during 2021.

Net cash provided by financing activities was $689.1 million during the year ended December 31, 2021, as compared to $457.8 million in the same period in 2020, an increase of $231.3 million. Our net cash provided by financing activities in 2021 related to cash inflows of $458.3 million from the issuance of common stock in follow-on equity offerings and through our ATM Program, $396.6 million in net proceeds from the issuance of the 2031 Notes and $393.0 million of borrowings under the Revolving Credit Facility. These cash inflows were partially offset by $267.0 million of repayments on the Revolving Credit Facility, $175.8 million of repayments of secured borrowing principal, the payment of $112.3 million in dividends, $1.2 million of offering costs paid related to our follow-on offerings and the ATM Program, the payment of deferred financing costs of $2.1 million and $0.4 million of payments for taxes related to the net settlement of equity awards.

Off-Balance Sheet Arrangements

We had no off-balance sheet arrangements as of December 31, 2022.

Contractual Obligations

The following table provides information with respect to our commitments as of December 31, 2022: 

	Payment due by period
(in thousands)	Total		2023		2024-2025		2026-2027		Thereafter
Unsecured Term Loans	$	1,030,000	$	—	$	200,000	$	430,000	$	400,000
Senior unsecured notes	400,000		—		—		—		400,000
Revolving Credit Facility	—		—		—		—		—
Tenant Construction Financing and Reimbursement Obligations (1)	34,620		34,620		—		—		—
Operating Lease Obligations (2)	20,693		1,433		2,478		1,329		15,453
Total	$	1,485,313	$	36,053	$	202,478	$	431,329	$	815,453

_____________________________________ 

(1)Includes obligations to reimburse certain of our tenants for construction costs that they incur in connection with construction at our properties in exchange for contractually-specified rent that generally increases proportionally with our funding.

(2)Includes $18.9 million of rental payments due under ground lease arrangements where our tenants are directly responsible for payment.

Additionally, we may enter into commitments to purchase goods and services in connection with the operation of our business. These commitments generally have terms of one-year or less and reflect expenditure levels comparable to our historical expenditures, as adjusted for our growth.

We have made an election to be taxed as a REIT for federal income tax purposes beginning with our taxable year ended December 31, 2018; accordingly, we generally will not be subject to federal income tax for the year ended December 31, 2022, if we distribute all of our REIT taxable income, determined without regard to the dividends paid deduction, to our stockholders.

59

Critical Accounting Estimates

Our accounting policies are determined in accordance with GAAP. The preparation of our financial statements requires us to make estimates and assumptions that are subjective in nature and, as a result, our actual results could differ materially from our estimates. Estimates and assumptions include, among other things, subjective judgments regarding the fair values and useful lives of our properties for depreciation and lease classification purposes, the collectability of receivables and asset impairment analysis. Set forth below are the more critical accounting policies that require management judgment and estimates in the preparation of our consolidated financial statements.

Real Estate Investments

Investments in real estate are carried at cost less accumulated depreciation and impairment losses, if any. The cost of investments in real estate reflects their purchase price or development cost and, in the case of asset acquisitions, transaction costs related to the acquisition.

We allocate the purchase price (plus transaction costs) of acquired properties accounted for as asset acquisitions to tangible and identifiable intangible assets or liabilities based on their relative fair values. Tangible assets may include land, site improvements and buildings. Intangible assets may include the value of in-place leases and above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases based on the specific characteristics of each tenant's lease. We estimate the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. Factors we consider in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, we include real estate taxes, insurance and other operating expenses, and estimates of lost rentals at market rates during the expected lease-up periods, which primarily range from six to 12 months. The fair value of above- or below-market leases is recorded based on the net present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining non-cancelable term of the lease including any below-market fixed rate renewal options for below-market leases.

In making estimates of fair values for purposes of allocating purchase price, we use a number of sources, including real estate valuations prepared by independent valuation firms. We also consider information and other factors including market conditions, the industry that the tenant operates in, characteristics of the real estate, e.g., location, size, demographics, value and comparative rental rates, tenant credit profile and the importance of the location of the real estate to the operations of the tenant's business. Additionally, we consider information obtained about each property as a result of our pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. We use the information obtained as a result of our pre-acquisition due diligence as part of our consideration of the accounting standard governing asset retirement obligations and, when necessary, will record an asset retirement obligation as part of the purchase price allocation.

Allowance for Credit Losses

On January 1, 2020, we adopted ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”) on a prospective basis. ASC 326 changed how we account for credit losses for all of our loans and direct financing lease receivables. ASC 326 replaced the previous “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information than used under the incurred losses model. Upon adoption of ASC 326, we recorded an initial allowance for credit losses of $0.2 million as of January 1, 2020, netted against loans and direct financing receivables on our consolidated balance sheet. Under ASC 326, we are required to re-evaluate the expected loss of our loans and direct financing lease receivable portfolio at each balance sheet date. As of December 31, 2022 and 2021, we recorded an allowance for credit losses of $0.8 million. Changes in our allowance

60

for credit losses are presented within change in provision for credit losses in our consolidated statements of operations.

In connection with our adoption of ASC 326 on January 1, 2020, we implemented a new process including the use of a credit loss forecasting model. We have used this credit loss forecasting model for estimating expected lifetime credit losses, at the individual asset level, for our loans and direct financing lease receivable portfolio. The forecasting model used is the probability weighted expected cash flow method, depending on the type of loan or direct financing lease receivable and global assumptions.

We use a real estate loss estimate model (“RELEM”) which estimates losses on our loans and direct financing lease receivable portfolio, for purposes of calculating allowances for credit losses. The RELEM allows us to refine (on an ongoing basis) the expected loss estimate by incorporating loan specific assumptions as necessary, such as anticipated funding, interest payments, estimated extensions and estimated loan repayment/refinancing at maturity, to estimate cash flows over the life of the loan. The model also incorporates assumptions related to underlying collateral values, various loss scenarios, and predicted losses to estimate expected losses. Our specific loan-level inputs include loan-to-stabilized-value (“LTV”), principal balance, property type, location, coupon, origination year, term, subordination, expected repayment date and future funding. We categorize the results by LTV range, which we consider the most significant indicator of credit quality for our loans and direct financing lease receivables. A lower LTV ratio typically indicates a lower credit loss risk.

We also evaluate each loan and direct financing lease receivable measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan or direct financing lease receivables.

Our allowance for credit losses is adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the real estate assets securing our loans. These estimations include various macroeconomic factors impacting the likelihood and magnitude of potential credit losses for our loans and direct financing leases during their anticipated term.

Impairment of Long-Lived Assets

If circumstances indicate that the carrying value of a property may not be recoverable, we review the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. Impairment assessments have a direct impact on the consolidated statements of operations, because recording an impairment loss results in an immediate negative adjustment to the consolidated statements of operations.

Adjustment to Rental Revenue for Tenant Credit

We continually review receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. Prior to January 1, 2019, if the collectability of a receivable was in doubt, the accounts receivable and straight-line rent receivable balances were reduced by an allowance for doubtful accounts on the consolidated balance sheets or a direct write-off of the receivable was recorded in the consolidated statements of operations. The provision for doubtful accounts was included in property expenses in our consolidated statements of operations. If the accounts receivable balance or straight-line rent receivable balance was subsequently deemed to be uncollectible, such receivable amounts were written-off to the allowance for doubtful accounts.

As of January 1, 2019, if the assessment of the collectability of substantially all payments due under a lease changes from probable to not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current period adjustment to rental revenue in the consolidated statements of operations.

61

Derivative Instruments

In the normal course of business, we use derivative financial instruments, which may include interest rate swaps, caps, options, floors and other interest rate derivative contracts, to protect us against adverse fluctuations in interest rates by reducing our exposure to variability in cash flows on a portion of our floating-rate debt. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. We record all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may also enter into derivative contracts that are intended to economically hedge certain risk, even though hedge accounting does not apply or we elect not to apply hedge accounting.

The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designed and qualifies for hedge accounting treatment. If a derivative is designated and qualifies for cash flow hedge accounting treatment, the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income to the extent that it is effective. Any ineffective portion of a change in derivative fair value is immediately recorded in earnings. If we elect not to apply hedge accounting treatment (or for derivatives that do not qualify as hedges), any change in the fair value of these derivative instruments is recognized immediately in gains (losses) on derivative instruments in the consolidated statements of operations. We do not intend to use derivative instruments for trading or speculative purposes.

Equity-Based Compensation  

From time to time, we grant shares of restricted common stock and restricted share units ("RSUs") to our directors, executive officers and other employees that vest over multiple periods, subject to the recipient's continued service. Additionally, we also granted performance-based RSUs to our executive officers, the final number of which is determined based on market and subjective performance conditions and which vest over a multi-year period, subject to the recipient's continued service. We account for the restricted common stock and RSUs in accordance with ASC 718, Compensation - Stock Compensation, which requires that such compensation be recognized in the financial statements based on their estimated grant-date fair value. The value of such awards is recognized as compensation expense in general and administrative expenses in the accompanying consolidated statements of operations over the requisite service periods. We recognize compensation expense for equity-based compensation using the straight-line method based on the terms of the individual grant. Forfeitures of equity-based compensation awards, if any, are recognized as they occur.

Results of Operations

The following discusses our results of operations for the year ended December 31, 2022, as compared to our results of operations for the year ended December 31, 2021. A discussion of the changes in our results of operations for the year ended December 31, 2021, as compared to our results of operations for the year ended December 31, 2020, has been omitted from this Annual Report but may be found in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Comparison of the years ended December 31, 2021 and 2020" in our Annual Report on Form 10-K for the year ended December 31, 2021.

62

Comparison of the years ended December 31, 2022 and 2021 

	Year ended December 31,
(dollar amounts in thousands)	2022		2021		Change		%
Revenues:
Rental revenue	$	269,827	$	213,327	$	56,500	26.5	%
Interest income on loans and direct financing lease receivables	15,499		15,710		(211)		(1.3)	%
Other revenue, net	1,180		1,197		(17)		(1.4)	%
Total revenues	286,506		230,234		56,272		24.4	%
Expenses:
General and administrative	29,464		24,329		5,135		21.1	%
Property expenses	3,452		5,762		(2,310)		(40.1)	%
Depreciation and amortization	88,562		69,146		19,416		28.1	%
Provision for impairment of real estate	20,164		6,120		14,044		229.5	%
Change in provision for credit losses	88		(204)		292		143.1	%
Total expenses	141,730		105,153		36,577		34.8	%
Other operating income:
Gain on dispositions of real estate, net	30,647		9,338		21,309		228.2	%
Income from operations	175,423		134,419		41,004		30.5	%
Other (expense)/income:
Loss on debt extinguishment	(2,138)		(4,461)		(2,323)		(52.1)	%
Interest expense	(40,370)		(33,614)		6,756		(20.1)	%
Interest income	2,825		94		2,731		2,905.3	%
Income before income tax expense	135,740		96,438		48,168		49.9	%
Income tax expense	998		227		771		339.6	%
Net income	134,742		96,211		47,397		49.3	%
Net income attributable to non-controlling interests	(612)		(486)		126		25.9	%
Net income attributable to stockholders	$	134,130	$	95,725	$	47,523	49.6	%

Revenues:

Rental revenue. Rental revenue increased by $56.5 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021. The increase in revenues was driven primarily by the growth in the size of our real estate investment portfolio, which generated additional rental revenues. Our real estate investment portfolio grew from 1,451 properties, representing $3.2 billion in net investments in real estate, as of December 31, 2021 to 1,653 properties, representing $3.8 billion in net investments in real estate, as of December 31, 2022. Our real estate investments were acquired throughout the periods presented and were not all owned by us for the entirety of the periods; accordingly, a significant portion of the increase in rental revenue between periods is related to recognizing revenue in 2022 on acquisitions that were made during 2021 and 2022. A smaller component of the increase in revenues between periods is related to rent escalations recognized on our leases.

Interest on loans and direct financing lease receivables. Interest on loans and direct financing lease receivables decreased by $0.2 million during the year ended December 31, 2022, as compared to the year ended December 31, 2021, primarily due to the repayment of mortgage loans receivable during the fourth quarter of 2021 and throughout 2022, partially offset by the growth of our mortgage loans receivable portfolio during the second half of 2022. Repayment and lending activity led to a lower average daily balance of loans receivable outstanding during the year ended December 31, 2022 as compared to the year ended December 31, 2021.

Other revenue. Other revenue for the year ended December 31, 2022 increased by approximately $17,000, as compared to the year ended December 31, 2021, primarily due to the receipt of mortgage loan prepayment fees during the fourth quarter of 2021.

63

Expenses:

General and administrative. General and administrative expense increased by $5.1 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021. This increase in general and administrative expense was primarily due to an increase in non-cash share-based compensation of $3.8 million, salary expense and professional fees. 

Property expenses. Property expenses decreased by $2.3 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021. The decrease in property expenses was primarily due to decreased insurance expenses, property taxes and property-related operational costs during the year ended December 31, 2022 related to fewer vacant properties and moving tenants accounted for on a non-accrual basis back to accrual.

Depreciation and amortization. Depreciation and amortization expense increased by $19.4 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021. Depreciation and amortization expense increased in proportion to the general increase in the size of our real estate investment portfolio.    

Provision for impairment of real estate. Impairment charges on real estate investments were $20.2 million and $6.1 million for the years ended December 31, 2022 and 2021, respectively, an increase of $14.0 million. During the years ended December 31, 2022 and 2021, we recorded a provision for impairment of real estate on 13 and 18 of our real estate investments, respectively, with the average size of our impairments being smaller in 2021. We strategically seek to identify non-performing properties that we may re-lease or dispose of in an effort to improve our returns and manage risk exposure. An increase in vacancy associated with our disposition or re-leasing strategies may trigger impairment charges when the expected future cash flows from the properties from sale or re-lease are less than their net book value.

Change in provision for credit losses. During the year ended December 31, 2022, our provision for credit losses increased by $0.1 million, as compared to a decrease of $0.2 million during the year ended December 31, 2021. Under ASC 326, we are required to re-evaluate the expected loss on our portfolio of loans and direct financing lease receivables at each balance sheet date. Changes in our provision for credit losses are driven by revisions to global and loan-specific assumptions in our credit loss model and by changes in the size of our loan and direct financing lease portfolio.

Other operating income:

Gain on dispositions of real estate, net. Gain on dispositions of real estate, net, increased by $21.3 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021. We disposed of 54 real estate properties during the year ended December 31, 2022, compared to 38 real estate properties during the year ended December 31, 2021. Overall, our 2022 dispositions had a higher sales price in relation to their net book value as compared to our 2021 dispositions.

Other (expense)/income:

Loss on debt extinguishment. Loss on debt extinguishment of $2.1 million during the year ended December 31, 2022 relates to the write-off of deferred financing costs and the payment of fees in conjunction with amendments to our term loans and revolving credit facility. During the year ended December 31, 2021, we recorded a loss on debt extinguishment of $4.5 million related to the payment of a make-whole premium and the write-off of deferred financing costs upon our repayment of the remaining $171.2 million of principal on our Series 2017-1 Notes in June 2021.

Interest expense. Interest expense increased by $6.8 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021. This increase in interest expense was primarily due to an increase in our outstanding debt balance and increased interest rates during the year ended December 31, 2022 compared to the year ended December 31, 2021.

Interest income. Interest income increased by $2.7 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021. The increase in interest income was primarily due to higher interest rates, higher average daily cash balances in our interest-bearing bank accounts and our investments in commercial paper during the year ended December 31, 2022.

64

Income tax expense. Income tax expense increased by $0.8 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021. The increase was primarily due to the accrual of income taxes for a transaction consummated in 2022 through our taxable REIT subsidiary. We are organized and operate as a REIT and are generally not subject to U.S. federal taxation. However, the Operating Partnership is subject to taxation in certain state and local jurisdictions that impose income taxes on a partnership. Changes in income tax expense are also due to changes in the proportion of our real estate portfolio located in jurisdictions where the Operating Partnership is subject to taxation.

Non-GAAP Financial Measures

Our reported results are presented in accordance with GAAP. We also disclose the following non-GAAP financial measures: funds from operations ("FFO"), core funds from operations ("Core FFO"), adjusted funds from operations ("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"). 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 certain transaction related gains, losses, income or expense or other non-core amounts as they occur.

To derive AFFO, we modify our computation of Core 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 when assessing our 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.

65

The following table reconciles net income (which is the most comparable GAAP measure) to FFO, Core FFO and AFFO attributable to stockholders and non-controlling interests:

	Year ended December 31,
(in thousands)	2022		2021		2020
Net income	$	134,742	$	96,211	$	42,528
Depreciation and amortization of real estate	88,459		69,043		59,309
Provision for impairment of real estate	20,164		6,120		8,399
Gain on dispositions of real estate, net	(30,647)		(9,338)		(5,821)
FFO attributable to stockholders and non-controlling interests	212,718		162,036		104,415
Non-core expenses (1)(2)(3)	2,388		4,461		2,273
Core FFO attributable to stockholders and non-controlling interests	215,106		166,497		106,688
Adjustments:
Straight-line rental revenue, net	(20,615)		(19,116)		(11,905)
Non-cash interest	2,616		2,554		2,040
Non-cash compensation expense	9,489		5,683		5,427
Other amortization expense	2,912		2,675		3,854
Other non-cash charges	74		(212)		829
Capitalized interest expense	(757)		(81)		(228)
Transaction costs	—		—		291
AFFO attributable to stockholders and non-controlling interests	$	208,825	$	158,000	$	106,995

_____________________________________

(1)Includes $0.2 million of fees incurred in conjunction with the August 2022 amendment to our 2027 Term Loan and our $2.1 million loss on debt extinguishment during the year ended December 31, 2022.

(2)Includes our $4.5 million loss on debt extinguishment during the year ended December 31, 2021.

(3)Includes non-recurring expenses of approximately $39,000 related to reimbursement of executive relocation costs, $1.1 million for severance payments and acceleration of non-cash compensation expense in connection with the termination of one of our executive officers, $0.2 million of non-recurring recruiting costs and our $0.9 million loss on debt extinguishment during the year ended December 31, 2020.

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. We believe that these measures are useful to investors and analysts because they provide supplemental information concerning our operating performance, exclusive of certain non-cash items 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, 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 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.

66

The following table reconciles net income (which is the most comparable GAAP measure) to EBITDA and EBITDAre attributable to stockholders and non-controlling interests:

	Year ended December 31,
(in thousands)	2022		2021		2020
Net income	$	134,742	$	96,211	$	42,528
Depreciation and amortization	88,562		69,146		59,446
Interest expense	40,370		33,614		29,651
Interest income	(2,825)		(94)		(485)
Income tax expense	998		227		212
EBITDA attributable to stockholders and non-controlling interests	261,847		199,104		131,352
Provision for impairment of real estate	20,164		6,120		8,399
Gain on dispositions of real estate, net	(30,647)		(9,338)		(5,821)
EBITDAre attributable to stockholders and non-controlling interests	$	251,364	$	195,886	$	133,931

We further adjust EBITDAre for the most recently completed quarter 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 certain of our tenants, which is subject to sales thresholds specified in the applicable leases ("Adjusted EBITDAre"). We then annualize quarterly Adjusted EBITDAre by multiplying it by four ("Annualized Adjusted EBITDAre"), which we believe provides a meaningful estimate of our current run rate for all of our investments as of the end of the most recently completed quarter. You should not unduly rely on this measure, as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly less than our current Annualized Adjusted EBITDAre.

67

The following table reconciles net income (which is the most comparable GAAP measure) to Annualized Adjusted EBITDAre attributable to stockholders and non-controlling interests for the three months ended December 31, 2022:

(in thousands)	Three months ended December 31, 2022
Net income	$	35,521
Depreciation and amortization	24,121
Interest expense	12,128
Interest income	(2,025)
Income tax expense	229
EBITDA attributable to stockholders and non-controlling interests	69,974
Provision for impairment of real estate	9,623
Gain on dispositions of real estate, net	(12,565)
EBITDAre attributable to stockholders and non-controlling interests	67,032
Adjustment for current quarter re-leasing, acquisition and disposition activity (1)	6,546
Adjustment to exclude other non-recurring activity (2)	312
Adjustment to exclude termination/prepayment fees and certain percentage rent (3)	(181)
Adjusted EBITDAre attributable to stockholders and non-controlling interests	$	73,709
Annualized Adjusted EBITDAre attributable to stockholders and non-controlling interests	$	294,836

_____________________________________

(1)Adjustment assumes all re-leasing activity, investments in and dispositions of real estate and loan repayments completed during the three months ended December 31, 2022 had occurred on October 1, 2022.

(2)Adjustment is made to exclude non-core expenses added back to compute Core FFO, to exclude changes in our provision for credit losses and to eliminate the impact of seasonal fluctuation in certain non-cash compensation expense recorded in the period.

(3)Adjustment excludes lease termination or loan prepayment fees and contingent rent (based on a percentage of the tenant's gross sales at the leased property) where payment is subject to exceeding a sales threshold specified in the lease, if any.

We calculate our net debt as our gross debt (defined as total debt plus net deferred financing costs and original issue discount on our borrowings) less cash and cash equivalents and restricted cash deposits available for future investment. We believe 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 we believe is a beneficial disclosure to investors and analysts.

The following table reconciles total debt (which is the most comparable GAAP measure) to net debt: 

	December 31,
(in thousands)	2022		2021
Unsecured term loan, net of deferred financing costs	$	1,025,492	$	626,983
Revolving credit facility	—		144,000
Senior unsecured notes	395,286		394,723
Total debt	1,420,778		1,165,706
Deferred financing costs and original issue discount, net	9,222		8,294
Gross debt	1,430,000		1,174,000
Cash and cash equivalents	(62,345)		(59,758)
Restricted cash available for future investment	(9,155)		—
Net debt	$	1,358,500	$	1,114,242

 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 in accordance with GAAP. 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

68

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 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.

The following table reconciles net income (which is the most comparable GAAP measure) to NOI and Cash NOI attributable to stockholders and non-controlling interests: 

	Year ended December 31,
(in thousands)	2022		2021		2020
Net income	$	134,742	$	96,211	$	42,528
General and administrative expense	29,464		24,329		24,444
Depreciation and amortization	88,562		69,146		59,446
Provision for impairment of real estate	20,164		6,120		8,399
Change in provision for credit losses	88		(204)		830
Gain on dispositions of real estate, net	(30,647)		(9,338)		(5,821)
Loss on debt extinguishment	2,138		4,461		924
Interest expense	40,370		33,614		29,651
Interest income	(2,825)		(94)		(485)
Income tax expense	998		227		212
NOI attributable to stockholders and non-controlling interests	283,054		224,472		160,128
Straight-line rental revenue, net	(20,615)		(19,116)		(11,905)
Other amortization and non-cash charges	2,912		2,675		3,854
Cash NOI attributable to stockholders and non-controlling interests	$	265,351	$	208,031	$	152,077

69

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Over time, we generally seek to match the expected cash inflows from our long-term leases and loans receivable with the expected cash outflows for our long-term debt. To achieve this objective, we borrow on a fixed-rate basis through the issuance of senior unsecured notes or incur debt that bears interest at floating rates under the Revolving Credit Facility, which we use in connection with our operations, including for funding investments, the 2024 Term Loan, the 2027 Term Loan and the 2028 Term Loan.

		Principal Outstanding				Weighted Average Interest Rate (1)
(in thousands)	Maturity Date	December 31, 2022		December 31, 2021		December 31, 2022	December 31, 2021
Unsecured term loans:
2024 Term Loan	April 2024	$	200,000	$	200,000	2.9%	3.3%
2027 Term Loan	February 2027	430,000		430,000		2.4%	3.0%
2028 Term Loan	January 2028	400,000		—		4.6%	—%
Senior unsecured notes	July 2031	400,000		400,000		3.1%	3.1%
Revolving Credit Facility	February 2026	—		144,000		—%	1.3%
Total principal outstanding		$	1,430,000	$	1,174,000	3.3%	2.9%

 _______________________________________________________________

(1)Interest rates are presented after giving effect to our interest rate swap and lock agreements, where applicable.

We have fixed the floating rates on borrowings under our term loan facilities by entering into interest rate swap agreements where we pay a fixed interest rate and receive a floating interest rate equal to the rate we pay on the respective loan. At December 31, 2022, our aggregate asset in the event of the early termination of our swaps was $45.9 million.

At December 31, 2022, a 100-basis point increase of the interest rate on our unsecured term loan borrowings would increase our related interest costs by $10.3 million per year and a 100-basis point decrease of the interest rate would decrease our related interest costs by $10.3 million per year.

We are exposed to interest rate risk between the time we enter into a sale-leaseback transaction, acquire a leased property or invest in a loan receivable and the time we finance the related asset with long-term fixed-rate debt. In addition, when our long-term debt matures, we may have to refinance the debt at a higher interest rate. Market interest rates are sensitive to many factors that are beyond our control. Our interest rate risk management objective is to limit the impact of future interest rate changes on our earnings and cash flows.

In addition to amounts that we borrow under the Revolving Credit Facility, we may incur variable-rate debt in the future that we do not choose to hedge. Additionally, decreases in interest rates may lead to increased competition for the acquisition of real estate due to a reduction in desirable alternative income-producing investments. Increased competition for the acquisition of real estate may lead to a decrease in the yields on real estate we have targeted for acquisition. In such circumstances, if we are not able to offset the decrease in yields by obtaining lower interest costs on our borrowings, our results of operations will be adversely affected. Significant increases in interest rates may also have an adverse impact on our earnings if we are unable to acquire real estate with rental rates high enough to offset the increase in interest rates on our borrowings.

Fair Value of Fixed-Rate Indebtedness

The estimated fair value of our fixed-rate indebtedness under our senior unsecured notes is calculated based on quoted prices in active markets for identical assets. The following table discloses fair value information related to our fixed-rate indebtedness as of December 31, 2022:

(in thousands)	Carrying Value (1)		Estimated Fair Value
Senior unsecured notes	$	400,000	$	292,120

_____________________________________

(1)Excludes net deferred financing costs of $4.0 million and net discount of $0.7 million.

70

Item 8. Financial Statements and Supplementary Data.

Index to Consolidated Financial Statements

Financial Statements and Supplemental Data
Reports of Independent Registered Public Accounting Firm (PCAOB ID: Number 248)	73
Report of Independent Registered Public Accounting Firm (PCAOB ID: Number 42)	76
Consolidated Balance Sheets as of December 31, 2022 and 2021	77
Consolidated Statements of Operations for the Years Ended December 31, 2022, 2021, and 2020	78
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2022, 2021, and 2020	79
Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2022, 2021, and 2020	80
Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021, and 2020	81
Notes to Consolidated Financial Statements	83

71

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

Essential Properties Realty Trust, Inc.

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Essential Properties Realty Trust, Inc. (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for the two years then ended, and the related notes and financial statement schedules included under Item 15(a) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 15, 2023 expressed an unqualified opinion.

Basis for opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical audit matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Evaluation of the measurement of the fair values used in the purchase price allocation of real estate acquisitions

As described further in Notes 2 and 3 to the consolidated financial statements, the acquisition of property for investment purposes is typically accounted for as an asset acquisition in which the Company allocates the purchase price of acquired properties to land, buildings, and identified intangible assets and liabilities, based in each case on their relative estimated fair values and without giving rise to goodwill. The Company acquired approximately $806.8 million of real estate investments during the year ended December 31, 2022. We identified the measurement of the fair values used in the purchase price allocation of real estate acquisitions as a critical audit matter.

The principal consideration for our determination that the measurement of the fair values used in the purchase price allocation of real estate acquisitions is a critical audit matter is the higher risk of estimation uncertainty in

72

determining estimates of fair value. Specifically, fair value measurements were sensitive to establishing a range of market assumptions for land values, building replacement values, and rental rates. Establishing the market assumptions for land, building and rent included identifying the relevant properties in the established range most comparable to the acquired property. There was a high degree of subjective and complex auditor judgement in evaluating these key inputs assumptions.

Our audit procedures related to the measurement of the fair values used in the purchase price allocation of real estate acquisitions included the following, among others:

We obtained an understanding, evaluated the design, and tested the operating effectiveness of relevant controls relating to the process to allocate the purchase price of real estate acquisitions, including internal controls over the selection and review of the inputs and assumptions to estimate fair value, including those used by third party valuation professionals.

For a selection of real estate acquisitions, we involved our real estate valuation professionals with specialized skills and knowledge who assisted in evaluating the valuation techniques and assumptions to the fair value measurements used in the purchase price allocations. We read the purchase agreements and tested the completeness and accuracy of underlying data used that was contractual in nature, including rental data. The evaluation included comparison of the Company’s assumptions to independently developed ranges using market data from industry transaction databases and published industry reports. We analyzed where the Company’s market rental rates fell compared to our valuation professionals’ independently developed ranges to evaluate if management bias was present.

Evaluation of the provision for impairment of real estate investments

As described further in Note 2 to the consolidated financial statements, the Company reviews its real estate investments for potential impairment when certain events or changes in circumstances indicate that the carrying amount may not be recoverable through operations plus estimated disposition proceeds. Those events and circumstances include, but are not limited to, significant changes in real estate market conditions, estimated residual values, properties on non-accrual status, identified or pending vacancies, expiring leases, damaged properties, and an expectation to sell assets before the end of the previously estimated life. For real estate investments that show an indication of impairment, management determines whether an impairment has occurred by comparing the estimated undiscounted future cash flows, including the residual value of the real estate, with the carrying amount of the individual asset. Forecasting the estimated future cash flows requires management to make estimates and assumptions about significant variables, such as the probabilities of outcomes of leasing prospects and local market information, estimated holdings periods, direct and terminal capitalization rates, and potential disposal proceeds to be received upon a sale. We identified the evaluation of the provision for impairment of real estate investments as a critical audit matter.

The principal consideration for our determination that the evaluation of impairment of investments in real estate is a critical audit matter is the higher risk of estimation uncertainty due to sensitivity of management judgements, not only regarding indicators of impairment, but also regarding estimates and assumptions utilized in forecasting cash flows for cost recoverability and determining fair value measurements. Specifically, forecasted cash flows for recoverability and estimates of fair value were sensitive to changes in the probability of outcomes of leasing prospects and local market information, anticipated sale values, and capitalization rates. There was a high degree of subjective and complex auditor judgement in evaluating these key inputs and assumptions.

Our audit procedures related to the evaluation of the provision for impairment of investments in real estate included the following, among others:

We obtained an understanding, evaluated the design, and tested the operating effectiveness of relevant controls over the evaluation of potential real estate investment impairments, such as internal controls over the Company’s monitoring of the real estate investment portfolio, the Company’s assessments of recoverability, and the Company’s estimates of fair value.

We evaluated the completeness of the population of investments in real estate requiring further analysis as compared to the criteria established in management’s accounting policies over impairment.

73

For a selection of impacted real estate investments, we tested the Company’s undiscounted cash flow analyses and estimates of fair value for real estate investments with indicators of impairment, including evaluating the reasonableness of the methods and significant inputs and assumptions used.

For a selection of impacted real estate investments, we compared the probability of outcomes with historical performance and considered any relevant prospective data, including property-specific industry and local market information.

For a selection of impacted real estate investments, we compared anticipated sale values and capitalization rates with comparable observable market data, which involved the use of our valuation specialists.

Our assessment included sensitivity analyses over these significant inputs and assumptions.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2021.

Jacksonville, Florida

February 15, 2023

74

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

Essential Properties Realty Trust, Inc.

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of Essential Properties Realty Trust, Inc. (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2022, and our report dated February 15, 2023, expressed an unqualified opinion on those financial statements.

Basis for opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and limitations of internal control over financial reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Jacksonville, Florida

February 15, 2023

75

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Essential Properties Realty Trust, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows, for the year ended December 31, 2020 of Essential Properties Realty Trust, Inc. (the “Company”), and the related notes and financial statement schedules listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the results of its operations and its cash flows for the year ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We served as the Company’s auditor from 2017 to 2021.

New York, New York

February 23, 2021

76

ESSENTIAL PROPERTIES REALTY TRUST, INC.

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Balance Sheets

	December 31,
(In thousands, except share and per share data)	2022		2021
ASSETS
Investments:
Real estate investments, at cost:
Land and improvements	$	1,228,687	$	1,004,154
Building and improvements	2,440,630		2,035,919
Lease incentives	18,352		13,950
Construction in progress	34,537		8,858
Intangible lease assets	88,364		87,959
Total real estate investments, at cost	3,810,570		3,150,840
Less: accumulated depreciation and amortization	(276,307)		(200,152)
Total real estate investments, net	3,534,263		2,950,688
Loans and direct financing lease receivables, net	240,035		189,287
Real estate investments held for sale, net	4,780		15,434
Net investments	3,779,078		3,155,409
Cash and cash equivalents	62,345		59,758
Restricted cash	9,155		—
Straight-line rent receivable, net	78,587		57,990
Derivative assets	47,877		—
Rent receivables, prepaid expenses and other assets, net	22,991		25,638
Total assets (1)	$	4,000,033	$	3,298,795
LIABILITIES AND EQUITY
Unsecured term loans, net of deferred financing costs	$	1,025,492	$	626,983
Senior unsecured notes, net	395,286		394,723
Revolving credit facility	—		144,000
Intangible lease liabilities, net	11,551		12,693
Dividend payable	39,398		32,610
Derivative liabilities	2,274		11,838
Accrued liabilities and other payables	29,261		32,145
Total liabilities (1)	1,503,262		1,254,992
Commitments and contingencies (see Note 11)	—		—
Stockholders' equity:
Preferred stock, $0.01 par value; 150,000,000 authorized; none issued and outstanding as of December 31, 2022 and 2021	—		—
Common stock, $0.01 par value; 500,000,000 authorized; 142,379,655 and 124,649,053 issued and outstanding as of December 31, 2022 and 2021, respectively	1,424		1,246
Additional paid-in capital	2,563,305		2,151,088
Distributions in excess of cumulative earnings	(117,187)		(100,982)
Accumulated other comprehensive income (loss)	40,719		(14,786)
Total stockholders' equity	2,488,261		2,036,566
Non-controlling interests	8,510		7,237
Total equity	2,496,771		2,043,803
Total liabilities and equity	$	4,000,033	$	3,298,795

 _____________________________________

(1)The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2—Summary of Significant Accounting Policies. As of December 31, 2022 and 2021, all of the assets and liabilities of the Company were held by its operating partnership, a consolidated VIE, with the exception of $39.2 million and $32.5 million, respectively, of dividends payable.

The accompanying notes are an integral part of these consolidated financial statements.

77

ESSENTIAL PROPERTIES REALTY TRUST, INC.

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Operations

	Year ended December 31,
(In thousands, except share and per share data)	2022		2021		2020
Revenues:
Rental revenue	$	269,827	$	213,327	$	155,792
Interest on loans and direct financing lease receivables	15,499		15,710		8,136
Other revenue, net	1,180		1,197		81
Total revenues	286,506		230,234		164,009
Expenses:
General and administrative	29,464		24,329		24,444
Property expenses	3,452		5,762		3,881
Depreciation and amortization	88,562		69,146		59,446
Provision for impairment of real estate	20,164		6,120		8,399
Change in provision for credit losses	88		(204)		830
Total expenses	141,730		105,153		97,000
Other operating income:
Gain on dispositions of real estate, net	30,647		9,338		5,821
Income from operations	175,423		134,419		72,830
Other (expense)/income:
Loss on debt extinguishment	(2,138)		(4,461)		(924)
Interest expense	(40,370)		(33,614)		(29,651)
Interest income	2,825		94		485
Income before income tax expense	135,740		96,438		42,740
Income tax expense	998		227		212
Net income	134,742		96,211		42,528
Net income attributable to non-controlling interests	(612)		(486)		(255)
Net income attributable to stockholders	$	134,130	$	95,725	$	42,273
Basic weighted average shares outstanding	134,941,188		116,358,059		95,311,035
Basic net income per share	$	0.99	$	0.82	$	0.44
Diluted weighted average shares outstanding	135,855,916		117,466,338		96,197,705
Diluted net income per share	$	0.99	$	0.82	$	0.44

The accompanying notes are an integral part of these consolidated financial statements.

78

ESSENTIAL PROPERTIES REALTY TRUST, INC.

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Comprehensive Income

	Year ended December 31,
(In thousands)	2022		2021		2020
Net income	$	134,742	$	96,211	$	42,528
Other comprehensive income (loss):
Deferred loss on cash flow hedges	—		(4,824)		—
Unrealized income (loss) on cash flow hedges	56,736		17,273		(42,121)
Cash flow hedge losses reclassified to interest expense	26		10,059		6,676
Total other comprehensive income (loss)	56,762		22,508		(35,445)
Comprehensive income	191,504		118,719		7,083
Net income attributable to non-controlling interests	(612)		(486)		(255)
Adjustment for other comprehensive (income) loss attributable to non-controlling interests	(1,257)		(113)		213
Comprehensive income attributable to stockholders	$	189,635	$	118,120	$	7,041

The accompanying notes are an integral part of these consolidated financial statements.

79

ESSENTIAL PROPERTIES REALTY TRUST, INC.

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Stockholders' Equity 

	Common Stock
(In thousands, except share data)	Number of Shares	Par Value		Additional Paid-In Capital		Distributions in Excess of Cumulative Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders' Equity		Non- Controlling Interests		Total Equity
Balance at December 31, 2019	83,761,151	$	838	$	1,223,043	$	(27,482)	$	(1,949)	$	1,194,450	$	7,663	$	1,202,113
Cumulative adjustment upon adoption of ASC 326	—	—		—		(187)		—		(187)		(1)		(188)
Common stock issuance	22,554,057	225		477,574		—		—		477,799		—		477,799
Costs related to issuance of common stock	—	—		(18,154)		—		—		(18,154)		—		(18,154)
Other comprehensive loss	—	—		—		—		(35,232)		(35,232)		(213)		(35,445)
Equity based compensation expense	46,316	1		6,077		—		—		6,078		—		6,078
Dividends declared on common stock and OP Units	—	—		—		(92,269)		—		(92,269)		(514)		(92,783)
Net income	—	—		—		42,273		—		42,273		255		42,528
Balance at December 31, 2020	106,361,524	1,064		1,688,540		(77,665)		(37,181)		1,574,758		7,190		1,581,948
Common stock issuance	18,230,721	182		469,018		—		—		469,200		—		469,200
Common stock withheld related to net share settlement of equity awards	—	—		—		(353)		—		(353)		—		(353)
Costs related to issuance of common stock	—	—		(12,153)		—		—		(12,153)		—		(12,153)
Other comprehensive income	—	—		—		—		22,395		22,395		113		22,508
Equity based compensation expense	56,808	—		5,683		—		—		5,683		—		5,683
Dividends declared on common stock and OP Units	—	—		—		(118,689)		—		(118,689)		(552)		(119,241)
Net income	—	—		—		95,725		—		95,725		486		96,211
Balance at December 31, 2021	124,649,053	1,246		2,151,088		(100,982)		(14,786)		2,036,566		7,237		2,043,803
Common stock issuance	17,576,684	178		413,667		—		—		413,845		—		413,845
Common stock withheld related to net share settlement of equity awards	—	—		—		(2,452)		—		(2,452)		—		(2,452)
Costs related to issuance of common stock	—	—		(10,939)		—		—		(10,939)		—		(10,939)
Other comprehensive income	—	—		—		—		55,505		55,505		1,257		56,762
Equity based compensation expense	153,918	—		9,489		—		—		9,489		—		9,489
Dividends declared on common stock and OP Units	—	—		—		(147,883)		—		(147,883)		(596)		(148,479)
Net income	—	—		—		134,130		—		134,130		612		134,742
Balance at December 31, 2022	142,379,655	$	1,424	$	2,563,305	$	(117,187)	$	40,719	$	2,488,261	$	8,510	$	2,496,771

 The accompanying notes are an integral part of these consolidated financial statements.

80

ESSENTIAL PROPERTIES REALTY TRUST, INC.

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Cash Flows

	Year ended December 31,
(In thousands)	2022		2021		2020
Cash flows from operating activities:
Net income	$	134,742	$	96,211	$	42,528
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	88,562		69,146		59,406
Amortization of lease incentive	3,480		3,074		3,847
Amortization of above/below market leases and right of use assets, net	(217)		749		9
Amortization of deferred financing costs and other non-cash interest expense	3,099		2,738		2,532
Loss on debt extinguishment	2,138		4,461		924
Provision for impairment of real estate	20,164		6,120		8,399
Change in provision for credit losses	88		(204)		830
Gain on dispositions of real estate, net	(30,647)		(9,338)		(5,821)
Straight-line rent receivable, net	(20,811)		(20,160)		(15,137)
Equity based compensation expense	9,489		5,683		6,085
Adjustment to rental revenue for tenant credit	371		(2,900)		3,601
Payments made in settlement of cash flow hedges	—		(4,836)		—
Changes in other assets and liabilities:
Rent receivables, prepaid expenses and other assets	4,507		2,216		(12,058)
Accrued liabilities and other payables	(3,943)		14,433		4,243
Net cash provided by operating activities	211,022		167,393		99,388
Cash flows from investing activities:
Proceeds from sales of investments, net	126,610		58,381		82,889
Principal collections on loans and direct financing lease receivables	70,439		100,488		286
Investments in loans receivable	(115,016)		(136,391)		(60,480)
Deposits for prospective real estate investments	(26)		(590)		475
Investment in real estate, including capital expenditures	(728,727)		(840,027)		(541,307)
Investment in construction in progress	(51,870)		(9,348)		(14,423)
Lease incentives paid	(7,488)		(2,197)		(12,949)
Net cash used in investing activities	(706,078)		(829,684)		(545,509)
Cash flows from financing activities:
Repayment of secured borrowings	—		(175,781)		(65,909)
Borrowings under term loan facilities	397,523		—		180,000
Borrowings under revolving credit facility	299,000		393,000		87,000
Repayments under revolving credit facility	(443,000)		(267,000)		(115,000)
Proceeds from issuance of Senior Unsecured Notes	—		396,600		—
Proceeds from issuance of common stock, net	403,884		458,267		461,006
Payments for taxes related to net settlement of equity awards	(2,452)		(353)		—
Payments of debt extinguishment costs	(467)		—		—
Deferred financing costs	(4,991)		(2,120)		(25)
Offering costs	(1,008)		(1,220)		(2,805)
Dividends paid	(141,691)		(112,334)		(86,475)
Net cash provided by financing activities	506,798		689,059		457,792
Net increase in cash and cash equivalents and restricted cash	11,742		26,768		11,671
Cash and cash equivalents and restricted cash, beginning of period	59,758		32,990		21,319
Cash and cash equivalents and restricted cash, end of period	$	71,500	$	59,758	$	32,990
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents	$	62,345	$	59,758	$	26,602
Restricted cash	9,155		—		6,388
Cash and cash equivalents and restricted cash, end of period	$	71,500	$	59,758	$	32,990

The accompanying notes are an integral part of these consolidated financial statements.

81

ESSENTIAL PROPERTIES REALTY TRUST, INC.

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Cash Flows (continued)

	Year ended December 31,
(In thousands)	2022		2021		2020
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	$	36,832	$	24,162	$	27,071
Cash paid for income taxes	1,214		637		546
Non-cash investing and financing activities:
Adjustment upon adoption of ASC 326	$	—	$	—	$	188
Reclassification from construction in progress upon project completion	26,948		4,478		22,643
Net settlement of proceeds on the sale of investments	(28,938)		(960)		860
Non-cash investments in real estate and loans receivable	22,679		1,227		(860)
Unrealized (gains) losses on cash flow hedges	(56,615)		(27,890)		44,920
Payable and accrued offering costs	30		—		—
Discounts and fees on capital raised through issuance of common stock	9,931		10,933		16,674
Discounts and fees on issuance of debt	2,477		3,400		—
Dividends declared and unpaid	39,398		32,610		25,703

The accompanying notes are an integral part of these consolidated financial statements.

82

Notes to Consolidated Financial Statements

December 31, 2022

1. Organization

Description of Business

Essential Properties Realty Trust, Inc. (the “Company”) is an internally managed real estate company that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. The Company generally invests in and leases freestanding, single-tenant commercial real estate facilities where a tenant services its customers and conducts activities that are essential to the generation of the tenant’s sales and profits.

The Company was organized on January 12, 2018 as a Maryland corporation. It elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes beginning with the year ended December 31, 2018, and it believes that its current organizational and operational status and intended distributions will allow it to continue to so qualify. Substantially all of the Company’s business is conducted directly and indirectly through its operating partnership, Essential Properties, L.P. (the “Operating Partnership”).

On June 25, 2018, the Company completed the initial public offering (“IPO”) of its common stock. The common stock of the Company is listed on the New York Stock Exchange under the ticker symbol “EPRT”.

COVID-19 Pandemic

For much of 2020, the COVID-19 pandemic (“COVID-19”) created significant uncertainty and economic disruption that adversely affected the Company and its tenants. The adverse impact of the pandemic moderated during 2021 and significantly diminished during 2022. However, the continuing impact of the COVID-19 pandemic and its duration are unclear, and various factors could erode the progress that has been made against the virus to date. If conditions similar to those experienced in 2020, at the height of the pandemic, were to reoccur, they would adversely impact the Company and its tenants. The Company continues to closely monitor the impact of COVID-19 on all aspects of its business.

2. Summary of Significant Accounting Policies

Basis of Accounting

The accompanying unaudited consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation. As of December 31, 2022 and 2021, the Company, directly and indirectly, held a 99.6% ownership interest in the Operating Partnership, and the consolidated financial statements include the financial statements of the Operating Partnership as of these dates. See Note 7—Equity for changes in the ownership interest in the Operating Partnership.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

83

Reportable Segments

ASC Topic 280, Segment Reporting, establishes standards for the manner in which enterprises report information about operating segments. Substantially all of the Company’s investments, at acquisition, are comprised of real estate owned that is leased to tenants on a long-term basis or real estate that secures the Company's investment in loans and direct financing lease receivables. Therefore, the Company aggregates these investments for reporting purposes and operates in one reportable segment.

Real Estate Investments

Investments in real estate are carried at cost less accumulated depreciation and impairment losses. The cost of investments in real estate reflects their purchase price or development cost. The Company evaluates each acquisition transaction to determine whether the acquired asset meets the definition of a business. Under Accounting Standards Update ("ASU") 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business, an acquisition does not qualify as a business when there is no substantive process acquired or substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets or the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. Transaction costs related to acquisitions that are asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be acquisitions of a business are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company allocates the purchase price of acquired properties accounted for as asset acquisitions to tangible and identifiable intangible assets or liabilities based on their relative fair values. Tangible assets may include land, site improvements and buildings. Intangible assets may include the value of in-place leases and above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics.

The Company incurs various costs in the leasing and development of its properties. Amounts paid to tenants that incentivize them to extend or otherwise amend an existing lease or to sign a new lease agreement are capitalized to lease incentives on the Company's consolidated balance sheets. Tenant improvements are capitalized to building and improvements within the Company's consolidated balance sheets. Costs incurred which are directly related to properties under development, which include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs and real estate taxes and insurance, are capitalized during the period of development as construction in progress. After the determination is made to capitalize a cost, it is allocated to the specific component of a project that benefited. Determination of when a development project commences, and capitalization begins, and when a development project has reached substantial completion, and is available for occupancy and capitalization must cease, involves a degree of judgment. The Company does not engage in speculative real estate development. The Company does, however, opportunistically agree to reimburse certain of its tenants for development costs at its properties in exchange for contractually-specified rent that generally increases proportionally with its funding.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases based on the specific characteristics of each tenant's lease. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. Factors the Company considers in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses, and estimates of lost rentals at market rates during the expected lease-up periods, which primarily range from six to 12 months. The fair value of above- or below-market leases is recorded based on the net present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company's estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining non-cancelable term of the lease including any below-market fixed rate renewal options for below-market leases.

84

In making estimates of fair values for purposes of allocating purchase price, the Company uses a number of sources, including real estate valuations prepared by independent valuation firms. The Company also considers information and other factors including market conditions, the industry that the tenant operates in, characteristics of the real estate (e.g., location, size, demographics, value and comparative rental rates), tenant credit profile and the importance of the location of the real estate to the operations of the tenant's business. Additionally, the Company considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. The Company uses the information obtained as a result of its pre-acquisition due diligence as part of its consideration of the accounting standard governing asset retirement obligations and, when necessary, will record an asset retirement obligation as part of the purchase price allocation.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount and fair value less estimated selling costs. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations for all applicable periods.

Depreciation and Amortization

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings and 15 years for site improvements. The Company recorded the following amounts of depreciation expense on its real estate investments during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Depreciation on real estate investments	$	80,647	$	61,171	$	51,736

Lease incentives are amortized on a straight-line basis as a reduction of rental income over the remaining non-cancellable terms of the respective leases. If a tenant terminates its lease, the unamortized portion of the lease incentive is charged to rental revenue. Construction in progress is not depreciated until the development has reached substantial completion. Tenant improvements are depreciated over the non-cancellable term of the related lease or their estimated useful life, whichever is shorter.

Capitalized above-market lease intangibles are amortized on a straight-line basis as a reduction of rental revenue over the remaining non-cancellable terms of the respective leases. Capitalized below-market lease intangibles are accreted on a straight-line basis as an increase to rental revenue over the remaining non-cancellable terms of the respective leases including any below-market fixed rate renewal option periods.

Capitalized above-market ground lease values are accreted as a reduction of property expenses over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property expenses over the remaining terms of the respective leases and any expected below-market renewal option periods where renewal is considered probable.

The value of in-place leases, exclusive of the value of above-market and below-market lease intangibles, is amortized to depreciation and amortization expense on a straight-line basis over the remaining periods of the respective leases.

If a tenant terminates its lease, the unamortized portion of each intangible, including in-place lease values, is charged to depreciation and amortization expense, while above- and below-market lease adjustments are recorded within rental revenue in the consolidated statements of operations.

Loans Receivable

The Company holds its loans receivable for long-term investment. Loans receivable are carried at amortized cost, including related unamortized discounts or premiums, if any, less the Company's estimated allowance for credit losses. The Company recognizes interest income on loans receivable using the effective-interest method applied on a loan-by-loan basis. Direct costs associated with originating loans are offset against any

85

related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective-interest method.

Direct Financing Lease Receivables

Certain of the Company’s real estate investment transactions are accounted for as direct financing leases. The Company records the direct financing lease receivables at their net investment, determined as the aggregate minimum lease payments and the estimated non-guaranteed residual value of the leased property less unearned income. The unearned income is recognized over the term of the related lease so as to produce a constant rate of return on the net investment in the asset. The Company’s investment in direct financing lease receivables is reduced over the applicable lease term to its non-guaranteed residual value by the portion of rent allocated to the direct financing lease receivables.

Allowance for Credit Losses

On January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”) on a prospective basis. ASC 326 changed how the Company accounts for credit losses for all of its loans and direct financing lease receivables. ASC 326 replaced the previous “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information than used under the incurred losses model. Upon adoption of ASC 326, the Company recorded an initial allowance for credit losses of $0.2 million as of January 1, 2020, netted against loans and direct financing receivables on its consolidated balance sheet. Under ASC 326, the Company is required to re-evaluate the expected loss of its loans and direct financing lease receivables portfolio at each balance sheet date. As of December 31, 2022 and 2021, the Company recorded an allowance for credit losses of $0.8 million. Changes in the Company's allowance for credit losses are presented within change in provision for credit losses in its consolidated statements of operations.

In connection with its adoption of ASC 326 on January 1, 2020, the Company implemented a new process including the use of a credit loss forecasting model. The Company has used this credit loss forecasting model for estimating expected lifetime credit losses, at the individual asset-level, for its loans and direct financing lease receivable portfolio. The forecasting model used is the probability weighted expected cash flow method, depending on the type of loan or direct financing lease receivable and global assumptions.

The Company uses a real estate loss estimate model (“RELEM”) which estimates losses on its loans and direct financing lease receivable portfolio, for purposes of calculating allowances for credit losses. The RELEM allows the Company to refine (on an ongoing basis) the expected loss estimate by incorporating loan specific assumptions as necessary, such as anticipated funding, interest payments, estimated extensions and estimated loan repayment/refinancing at maturity to estimate cash flows over the life of the loan. The model also incorporates assumptions related to underlying collateral values, various loss scenarios, and predicted losses to estimate expected losses. The Company's specific loan-level inputs include loan-to-stabilized-value (“LTV”), principal balance, property type, location, coupon, origination year, term, subordination, expected repayment date and future funding. The Company categorizes the results by LTV range, which it considers the most significant indicator of credit quality for its loans and direct financing lease receivables. A lower LTV ratio typically indicates a lower credit loss risk.

The Company also evaluates each loan and direct financing lease receivable measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan or direct financing lease receivables.

The Company's allowance for credit losses is adjusted to reflect its estimation of the current and future economic conditions that impact the performance of the real estate assets securing its loans. These estimations include various macroeconomic factors impacting the likelihood and magnitude of potential credit losses for the Company's loans and direct financing lease receivables during their anticipated term.

Impairment of Long-Lived Assets

If circumstances indicate that the carrying value of a property may not be recoverable, the Company reviews the property for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates

86

consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. Impairment losses, if any, are recorded directly within our consolidated statement of operations.

The Company recorded the following provisions for impairment of long lived assets during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Provision for impairment of real estate	$	20,164	$	6,120	$	8,399

Cash and Cash Equivalents

Cash and cash equivalents includes cash in the Company’s bank accounts. The Company considers all cash balances and highly liquid investments with original maturities of three months or less to be cash and cash equivalents. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to an insurance limit.

As of December 31, 2022 and 2021, the Company had deposits of $62.3 million and $59.8 million, respectively, of which $62.1 million and $59.5 million, respectively, were in excess of the amount insured by the FDIC. Although the Company bears risk with respect to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result.

Restricted Cash

Restricted cash primarily consists of cash proceeds from the sale of assets held by a qualified intermediary to facilitate tax-deferred exchange transactions under Section 1031 of the Internal Revenue Code.

Forward Equity Sales

The Company has and may continue to enter into forward sale agreements relating to shares of its common stock, either through its 2022 ATM Program (as defined herein) or through an underwritten public offering. These agreements may be physically settled in stock, settled in cash or net share settled at the Company’s election.

The Company evaluated its forward sale agreements and concluded they meet the conditions to be classified within stockholders’ equity. Prior to settlement, a forward sale agreement will be reflected in the diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of the Company’s common stock used in diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares of the Company’s common stock that would be issued upon full physical settlement of such forward sale agreement over the number of shares of the Company’s common stock that could be purchased by the Company in the market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). Consequently, prior to settlement of a forward sale agreement, there will be no dilutive effect on the Company’s earnings per share except during periods when the average market price of the Company’s common stock is above the adjusted forward sale price. However, upon settlement of a forward sales agreement, if the Company elects to physically settle or net share settle such forward sale agreement, delivery of the Company’s shares will result in dilution to the Company’s earnings per share.

Deferred Financing Costs

Financing costs related to establishing the Company’s Revolving Credit Facility (as defined below) were deferred and are being amortized as an increase to interest expense in the consolidated statements of operations over the term of the facility and are reported as a component of rent receivables, prepaid expenses and other assets, net on the consolidated balance sheets.

87

Financing costs related to the issuance of the Company’s borrowings under the 2024 Term Loan, 2027 Term Loan, 2028 Term Loan and 2031 Notes were deferred and are being amortized as an increase to interest expense in the consolidated statements of operations over the term of the related debt instrument and are reported as a reduction of the related outstanding debt balance on the consolidated balance sheets.

Derivative Instruments

In the normal course of business, the Company uses derivative financial instruments, which may include interest rate swaps, caps, options, floors and other interest rate derivative contracts, to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows on a portion of the Company’s floating-rate debt. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. The Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may also enter into derivative contracts that are intended to economically hedge certain risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designed and qualifies for hedge accounting treatment. If a derivative is designated and qualifies for cash flow hedge accounting treatment, the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income to the extent that it is effective. Any ineffective portion of a change in derivative fair value is immediately recorded in earnings. If the Company elects not to apply hedge accounting treatment (or for derivatives that do not qualify as hedges), any change in the fair value of such derivative instruments would be recognized immediately as a gain or loss on derivative instruments in the consolidated statements of operations.

Fair Value Measurement

The Company estimates the fair value of financial and non-financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1—Quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3—Unobservable inputs that reflect the Company's own assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

Revenue Recognition

The Company’s rental revenue is primarily rent received from tenants. Rent from tenants is recorded in accordance with the terms of each lease on a straight-line basis over the non-cancellable initial term of the lease from the later of the date of the commencement of the lease and the date of acquisition of the property subject to the lease. Rental revenue recognition begins when the tenant controls the space and continues through the term of

88

the related lease. Because substantially all of the leases provide for rental increases at specified intervals, the Company records a straight-line rent receivable and recognizes revenue on a straight-line basis through the expiration of the non-cancelable term of the lease. The Company considers whether the collectability of rents is reasonably assured in determining the amount of straight-line rent to record.

Generally, the Company’s leases provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions provided under the initial lease term, including rent increases. If economic incentives make it reasonably certain that an option period to extend the lease will be exercised, the Company will include these options in determining the non-cancelable term of the lease.

The Company defers rental revenue related to lease payments received from tenants in advance of their due dates. These amounts are presented within accrued liabilities and other payables on the Company’s consolidated balance sheets.

Certain properties in the Company’s investment portfolio are subject to leases that provide for contingent rent based on a percentage of the tenant’s gross sales. For these leases, the Company recognizes contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached.

The Company recorded the following amounts as contingent rent, which are included as a component of rental revenue in the Company's consolidated statements of operations, during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Contingent rent	$	682	$	721	$	444

Adjustment to Rental Revenue for Tenant Credit

The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located.

If the assessment of the collectability of substantially all payments due under a lease changes from probable to not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current period reduction of rental revenue in the consolidated statements of operations.

The Company recorded the following amounts as increases to or reductions of rental revenue for tenant credit during the periods presented:

	Year ended December 31,
(in thousands)	2022			2021		2020
Adjustment to rental revenue for tenant credit	$	(371)	-371000	$	2,900	$	(7,149)

Offering Costs

In connection with the completion of equity offerings, the Company incurs legal, accounting and other offering-related costs. Such costs are deducted from the gross proceeds of each equity offering when the offering is completed. As of December 31, 2022 and 2021, the Company capitalized a total of $90.3 million and $79.3 million, respectively, of such costs, which are presented as a reduction of additional paid-in capital in the Company's consolidated balance sheets.

Income Taxes

The Company elected and qualified to be taxed as a REIT under sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with its taxable year ended December 31, 2018. REITs are subject to a number of organizational and operational requirements, including a requirement that 90% of ordinary “REIT taxable income” (as determined without regard to the dividends paid deduction or net capital gains) be distributed. As a REIT, the Company will generally not be subject to U.S. federal income tax to the extent that it

89

meets the organizational and operational requirements and its distributions equal or exceed REIT taxable income. For the period subsequent to the effective date of its REIT election, the Company continues to meet the organizational and operational requirements and expects distributions to exceed REIT taxable income. Accordingly, no provision has been made for U.S. federal income taxes. Even though the Company has elected and qualifies for taxation as a REIT, it may be subject to state and local income and franchise taxes, and to federal income and excise tax on its undistributed income. Franchise taxes and federal excise taxes on the Company’s undistributed income, if any, are included in general and administrative expenses on the accompanying consolidated statements of operations. Additionally, taxable income from non-REIT activities managed through the Company's taxable REIT subsidiary is subject to federal, state, and local taxes.

The Company analyzes its tax filing positions in all of the U.S. federal, state and local tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in such jurisdictions. The Company follows a two-step process to evaluate uncertain tax positions. Step one, recognition, occurs when an entity concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Step two, measurement, determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

As of December 31, 2022 and 2021, the Company had no accruals recorded for uncertain tax positions. The Company’s policy is to classify interest expense and penalties relating to taxes in general and administrative expense in the consolidated statements of operations. During the years ended December 31, 2022, 2021 and 2020, the Company recorded de minimis interest or penalties relating to taxes, and there were no interest or penalties with respect to taxes accrued as of December 31, 2022 or 2021. The 2021, 2020 and 2019 taxable years remain open to examination by federal and/or state taxing jurisdictions to which the Company is subject.

Equity-Based Compensation

The Company grants shares of restricted common stock and restricted share units (“RSUs”) to its directors, executive officers and other employees that vest over specified time periods, subject to the recipient’s continued service. The Company also grants performance-based RSUs to its executive officers, the final number of which is determined based on objective and subjective performance conditions and which vest over a multi-year period, subject to the recipient’s continued service. The Company accounts for the restricted common stock and RSUs in accordance with ASC 718, Compensation – Stock Compensation, which requires that such compensation be recognized in the financial statements based on its estimated grant-date fair value. The value of such awards is recognized as compensation expense in general and administrative expenses in the accompanying consolidated statements of operations over the applicable service periods.

The Company recognizes compensation expense for equity-based compensation using the straight-line method based on the fair value of the award on the grant date. Forfeitures of equity-based compensation awards, if any, are recognized when they occur.

Variable Interest Entities

The Financial Accounting Standards Board (“FASB”) provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE’s economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE.

The Company has concluded that the Operating Partnership is a VIE of which the Company is the primary beneficiary, as the Company has the power to direct the activities that most significantly impact the economic performance of the Operating Partnership. Substantially all of the Company’s assets and liabilities are held by the Operating Partnership. The assets and liabilities of the Operating Partnership are consolidated and reported as assets and liabilities on the Company’s consolidated balance sheets as of December 31, 2022 and 2021.

Additionally, the Company has concluded that certain entities to which it has provided mortgage loans are VIEs because the entities' equity was not sufficient to finance their activities without additional subordinated financial

90

support. The following table presents information about the Company’s mortgage loan-related VIEs as of the dates presented:

	December 31,
(Dollars in thousands)	2022		2021
Number of VIEs	21		23
Aggregate carrying value	$	233,351	$	140,851

The Company was not the primary beneficiary of any of these entities, because the Company did not have the power to direct the activities that most significantly impact the entities’ economic performance as of December 31, 2022 and 2021. The Company’s maximum exposure to loss in these entities is limited to the carrying amount of its investment. The Company had no liabilities associated with these VIEs as of December 31, 2022 and 2021.

Recent Accounting Developments

In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848) (“ASU 2020-4”). ASU 2020-4 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-4 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to or less than the cash flows in the original lease. The Company made this election and accounts for rent deferrals by increasing its rent receivables as receivables accrue and continuing to recognize income during the deferral period. Lease concessions or amendments other than rent deferrals are evaluated to determine if a substantive change to the consideration in the original lease contract has occurred and should be accounted for as a lease modification. The Company continues to evaluate any amounts recognized for collectability, regardless of whether accounted for as a lease modification or not, and records an adjustment to rental revenue for amounts that are not probable of collection. For lease concessions granted in conjunction with the COVID-19 pandemic, the Company reviewed all amounts recognized on a tenant-by-tenant basis for collectability.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). The guidance in ASU 2020-06 simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in the ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, by removing certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding an entity’s ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The amendments in ASU 2020-06 are effective for the Company for fiscal years beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The guidance must be adopted as of the beginning of the fiscal year of adoption. The Company adopted this guidance on January 1, 2021 and the adoption of ASU 2020-06 did not have a material impact on the Company's consolidated financial statements.

91

In July 2021, the FASB issued ASU 2021-05, Lease (Topic 842): Lessors - Certain Leases with Variable Lease Payments ("ASU 2021-05"). The guidance in ASU 2021-05 amends the lease classification requirements for the lessors under certain leases containing variable payments to align with practice under ASC 840. The lessor should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: 1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in ASC 842-10-25-2 through 25-3; and 2) the lessor would have otherwise recognized a day-one loss. The amendments in ASU 2021-05 are effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The adoption of ASU 2020-05 is not expected to have a material impact on the Company's consolidated financial statements.

3. Investments

The following table presents information about the number of investments in the Company's real estate investment portfolio as of each date presented:

	December 31,
	2022	2021
Owned properties (1)	1,489	1,315
Properties securing investments in mortgage loans (2)	153	126
Ground lease interests (3)	11	10
Total number of investments	1,653	1,451

_____________________________________

(1)Includes 8 and 11 properties which are subject to leases accounted for as direct financing leases or loans as of December 31, 2022 and 2021, respectively.

(2)Properties secure 20 and 17 mortgage loans receivable as of December 31, 2022 and 2021, respectively.

(3)Includes one building which is subject to a lease accounted for as a direct financing lease as of December 31, 2021.

The following table presents information about the gross investment value of the Company's real estate investment portfolio as of each date presented:

	December 31,
(in thousands)	2022		2021
Real estate investments, at cost	$	3,810,570	$	3,150,840
Loans and direct financing lease receivables, net	240,035		189,287
Real estate investments held for sale, net	4,780		15,434
Total gross investments	$	4,055,385	$	3,355,561

92

Investments in 2022 and 2021

The following table presents information about the Company’s acquisition activity during the years ended December 31, 2022 and 2021:

	Year ended December 31,
(Dollars in thousands)	2022		2021
Ownership type	(1)		Fee Simple
Number of properties	224		297
Purchase price allocation:
Land and improvements	$	270,049	$	279,501
Building and improvements	481,560		544,604
Construction in progress (2)	51,870		9,348
Intangible lease assets	3,366		11,010
Total purchase price	806,845		844,463
Intangible lease liabilities	—		(3,320)
Purchase price (including acquisition costs)	$	806,845	$	841,143

_____________________________________

(1)During the year ended December 31, 2022, the Company acquired the fee interest in 223 properties and acquired one property subject to a ground lease.

(2)Represents amounts incurred at and subsequent to acquisition and includes $0.8 million and $0.1 million, respectively, of capitalized interest expense during the years ended December 31, 2022 and 2021.

During the years ended December 31, 2022 and 2021, the Company did not have any investments that individually represented more than 5% of the Company’s total investment activity.

93

Gross Investment Activity

During the years ended December 31, 2022, 2021 and 2020, the Company had the following gross investment activity: 

(Dollar amounts in thousands)	Number of Investment Locations	Dollar Amount of Investments
Gross investments, December 31, 2019	1,000	$	2,002,314
Acquisitions of and additions to real estate investments	208	568,204
Sales of investments in real estate	(49)	(81,312)
Relinquishment of properties at end of ground lease term	(3)	(1,931)
Provisions for impairment of real estate (1)	—	(8,399)
Investments in loans receivable	25	61,339
Principal collections on and settlements of loans and direct financing lease receivables	—	(286)
Other	—	(11,256)
Gross investments, December 31, 2020	1,181	2,528,673
Acquisitions of and additions to real estate investments	297	853,798
Sales of investments in real estate	(38)	(57,154)
Provisions for impairment of real estate (2)	—	(6,120)
Investments in loans receivable	49	137,351
Principal collections on and settlements of loans and direct financing lease receivables	(38)	(100,488)
Other	—	(499)
Gross investments, December 31, 2021	1,451	3,355,561
Acquisitions of and additions to real estate investments	224	810,661
Sales of investments in real estate	(54)	(138,515)
Provisions for impairment of real estate (3)	—	(20,164)
Investments in loans receivable	75	143,954
Principal collections on and settlements of loans and direct financing lease receivables	(43)	(93,118)
Other	—	(2,994)
Gross investments, December 31, 2022	1,653	4,055,385
Less: Accumulated depreciation and amortization (4)	—	(276,307)
Net investments, December 31, 2022	1,653	$	3,779,078

_____________________________________________ 

(1)During the year ended December 31, 2020, the Company identified and recorded provisions for impairment at 7 vacant and 10 tenanted properties.

(2)During the year ended December 31, 2021, the Company identified and recorded provisions for impairment at 2 vacant and 16 tenanted properties.

(3)During the year ended December 31, 2022, the Company identified and recorded provisions for impairment at 4 vacant and 9 tenanted properties.

(4)Includes $238.2 million of accumulated depreciation as of December 31, 2022.

Real Estate Investments

The Company's investment properties are leased to tenants under long-term operating leases that typically include one or more renewal options. See Note 4—Leases for more information about the Company's leases.

Loans and Direct Financing Lease Receivables

As of December 31, 2022 and 2021, the Company had 23 and 22 loans receivable outstanding, with an aggregate carrying amount of $238.7 million and $187.8 million, respectively. The maximum amount of loss due to credit risk is the Company's current principal balance of $238.7 million as of December 31, 2022.  

94

The Company's loans receivable portfolio as of December 31, 2022 and 2021 is summarized below (dollars in thousands): 

Loan Type	Monthly Payment (1)	Number of Secured Properties	Effective Interest Rate	Stated Interest Rate	Maturity Date	December 31,
						2022		2021
Mortgage (2)(3)	I/O	2	8.80%	8.00%	2039	$	12,000	$	12,000
Mortgage (2)	P+I		8.10%	8.10%	2059	—		6,096
Mortgage (2)	I/O	2	8.53%	7.75%	2039	7,300		7,300
Mortgage (2)	I/O	69	8.16%	7.70%	2034	51,000		28,000
Mortgage (2)	I/O	1	8.42%	7.65%	2040	5,300		5,300
Mortgage (2)	I/O	3	8.79%	8.50%	2022	2,324		2,324
Mortgage (2)	I/O	1	7.00%	7.00%	2023	600		600
Mortgage (2)	I/O		6.89%	6.75%	2026	—		14,165
Mortgage (2)	I/O	3	8.30%	8.25%	2023	3,146		3,146
Mortgage (2)	I/O	2	6.87%	6.40%	2036	2,520		2,520
Mortgage (2)	I/O	3	7.51%	7.00%	2036	2,673		30,806
Mortgage (2)	I/O		7.51%	7.00%	2036	—		9,679
Mortgage (2)	I/O		7.85%	7.50%	2031	—		13,000
Mortgage (2)	I/O	2	8.29%	8.25%	2023	2,389		2,389
Mortgage (2)	I/O	1	5.72%	8.00%	2051	24,100		6,864
Mortgage (2)	I/O	2	7.44%	7.10%	2036	9,808		9,808
Mortgage (2)	I/O	7	7.30%	6.80%	2036	35,474		25,714
Mortgage (2)	I/O	1	7.73%	7.20%	2036	2,470		2,470
Mortgage (2)	I/O	1	8.00%	8.00%	2023	1,754		—
Mortgage (2)	I/O	37	6.80%	7.00%	2027	26,307		—
Mortgage (2)	I/O	1	6.99%	7.20%	2037	3,600		—
Mortgage (2)	I/O	1	8.40%	8.25%	2024	760		—
Mortgage (2)	I/O	4	8.64%	8.05%	2037	12,250		—
Mortgage (2)	I/O	10	8.93%	8.25%	2037	28,938		—
Leasehold interest	P+I		10.69%	(4)	2039	—		1,435
Leasehold interest	P+I	1	2.25%	(5)	2034	992		1,055
Leasehold interest	P+I	1	2.41%	(5)	2034	1,473		1,560
Leasehold interest	P+I	1	4.97%	(5)	2038	1,517		1,562
Net investment						$	238,695	$	187,793

________________________________________________

(1)I/O: Interest Only; P+I: Principal and Interest

(2)Loan requires monthly payments of interest only with a balloon payment due at maturity.

(3)Loan allows for prepayments in whole or in part without penalty.

(4)This leasehold interest was accounted for as a loan receivable, as the lease for two land parcels contained an option for the lessee to repurchase the leased parcels in 2024 or 2025.

(5)These leasehold interests are accounted for as loans receivable, as the leases for each property contain an option for the related lessee to repurchase the leased property in the future.

95

Scheduled principal payments due to be received under the Company's loans receivable as of December 31, 2022 were as follows:

(in thousands)	Loans Receivable
2023	$	8,096
2024	981
2025	234
2026	248
2027	26,570
Thereafter	202,566
Total	$	238,695

As of December 31, 2022 and 2021, the Company had $2.1 million and $2.3 million, respectively, of net investments accounted for as direct financing lease receivables. The components of the investments accounted for as direct financing lease receivables were as follows:

	December 31,
(in thousands)	2022		2021
Minimum lease payments receivable	$	2,812	$	3,189
Estimated unguaranteed residual value of leased assets	251		270
Unearned income from leased assets	(957)		(1,150)
Net investment	$	2,106	$	2,309

Scheduled future minimum non-cancelable base rental payments due to be received under the direct financing lease receivables as of December 31, 2022 were as follows:

(in thousands)	Future Minimum Base Rental Payments
2023	$	321
2024	283
2025	254
2026	243
2027	219
Thereafter	1,492
Total	$	2,812

Allowance for Credit Losses

The Company utilizes a real estate estimate model (i.e. a RELEM model) which estimates losses on loans and direct financing lease receivables for purposes of calculating an allowance for credit losses. As of December 31, 2022 and 2021, the Company recorded an allowance for credit losses of $0.8 million and $0.8 million, respectively. Changes in the Company’s allowance for credit losses are presented within provision for credit losses in the Company’s consolidated statements of operations.

96

For the years ended December 31, 2022, 2021 and 2020, the changes to the Company's allowance for credit losses were as follows:

(in thousands)	Loans and Direct Financing Lease Receivables
Balance at December 31, 2019	$	—
Cumulative-effect adjustment upon adoption of ASC 326	188
Current period provision for expected credit losses (1)	830
Write-offs charged	—
Recoveries	—
Balance at December 31, 2020	1,018
Current period provision for expected credit losses (1)	(204)
Write-offs charged	—
Recoveries	—
Balance at December 31, 2021	814
Current period provision for expected credit losses (2)	88
Write-offs charged	(137)
Recoveries	—
Balance at December 31, 2022	$	765

_____________________________________

(1)The increase in expected credit losses was due to the changes in assumptions regarding then-current macroeconomic factors related to COVID-19.

(2)The decrease in expected credit losses is due to assumptions regarding current macroeconomic factors returning to pre-pandemic values due to the reduction of the adverse impact of the COVID-19 pandemic.

The Company considers the ratio of loan to value ("LTV") to be a significant credit quality indicator for its loans and direct financing lease portfolio. The following table presents information about the LTV of the Company's loans and direct financing lease receivables measured at amortized cost as of as of December 31, 2022:

	Amortized Cost Basis by Origination Year										Total Amortized Costs Basis
(in thousands)	2022		2021		2020		2019		Prior to 2019
LTV <60%	$	23,000	$	—	$	—	$	28,000	$	1,635	$	52,635
LTV 60%-70%	—		28,234		—		—		—		28,234
LTV >70%	83,369		45,186		10,612		20,292		471		159,930
	$	106,369	$	73,420	$	10,612	$	48,292	$	2,106	$	240,799

Real Estate Investments Held for Sale

The Company continually evaluates its portfolio of real estate investments and may elect to dispose of investments considering criteria including, but not limited to, tenant concentration, tenant credit quality, tenant operation type (e.g., industry, sector or concept), unit-level financial performance, local market conditions and lease rates, associated indebtedness and asset location. Real estate investments held for sale are expected to be sold within twelve months.

97

The following table shows the activity in real estate investments held for sale and intangible lease liabilities held for sale during the years ended December 31, 2022 and 2021: 

(Dollar amounts in thousands)	Number of Properties	Real Estate Investments		Intangible Lease Liabilities		Net Carrying Value
Held for sale balance, December 31, 2020	8	$	17,058	$	—	$	17,058
Transfers to held for sale classification	20	25,767		—		25,767
Sales	(15)	(13,501)		—		(13,501)
Transfers to held and used classification	(4)	(13,890)		—		(13,890)
Held for sale balance, December 31, 2021	9	15,434		—		15,434
Transfers to held for sale classification	11	28,393		—		28,393
Sales	(16)	(39,047)		—		(39,047)
Transfers to held and used classification	—	—		—		—
Held for sale balance, December 31, 2022	4	$	4,780	$	—	$	4,780

Significant Concentrations

The Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose rental revenue for the years ended December 31, 2022, 2021 or 2020 represented 10% or more of total rental revenue in the Company's consolidated statements of operations.

The following table lists the states where the rental revenue from the properties in that state during the periods presented represented 10% or more of total rental revenue in the Company's consolidated statements of operations:

	Year ended December 31,
State	2022	2021	2020
Texas	13.5%	13.1%	14.9%

Intangible Assets and Liabilities

Intangible assets and liabilities consisted of the following as of the dates presented:

	December 31, 2022						December 31, 2021
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	77,096	$	30,217	$	46,879	$	76,255	$	24,540	$	51,715
Intangible market lease assets	11,268		4,917		6,351		11,704		4,409		7,295
Total intangible assets	$	88,364	$	35,134	$	53,230	$	87,959	$	28,949	$	59,010
Intangible market lease liabilities	$	15,325	$	3,774	$	11,551	$	15,948	$	3,255	$	12,693

 The remaining weighted average amortization period for the Company's intangible assets and liabilities as of December 31, 2022, by category and in total, were as follows:

	Years Remaining
In-place leases	8.8
Intangible market lease assets	11.0
Total intangible assets	9.1
Intangible market lease liabilities	8.3

The following table discloses amounts recognized within the consolidated statements of operations related to amortization of in-place leases, amortization and accretion of above- and below-market lease assets and

98

liabilities, net and the amortization and accretion of above- and below-market ground leases for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Amortization of in-place leases (1)	$	7,575	$	7,544	$	7,067
Amortization (accretion) of market lease intangibles, net (2)	(217)		(47)		9
Amortization (accretion) of above- and below-market ground lease intangibles, net (3)	(350)		(353)		(395)

 ______________________________________________________

(1)Reflected within depreciation and amortization expense.

(2)Reflected within rental revenue.

(3)Reflected within property expenses.

The following table provides the estimated amortization of in-place lease assets to be recognized as a component of depreciation and amortization expense for the next five years and thereafter:

(in thousands)	In-Place Lease Assets
2023	$	6,187
2024	5,519
2025	4,271
2026	3,966
2027	3,437
Thereafter	23,499
Total	$	46,879

The following table provides the estimated net amortization of above- and below-market lease intangibles to be recognized as a component of rental revenue for the next five years and thereafter:

(in thousands)	Above Market Lease Asset		Below Market Lease Liabilities		Net Adjustment to Rental Revenue
2023	$	(692)	$	701	$	9
2024	(659)		698		39
2025	(651)		700		49
2026	(641)		704		63
2027	(620)		728		108
Thereafter	(3,088)		8,020		4,932
Total	$	(6,351)	$	11,551	$	5,200

4. Leases

As Lessor

The Company’s investment properties are leased to tenants under long-term operating leases that typically include one or more tenant renewal options. The Company’s leases provide for annual base rental payments (generally payable in monthly installments), and generally provide for increases in rent based on fixed contractual terms or as a result of increases in the Consumer Price Index.

Substantially all of the leases are triple-net, which means that the lessees are responsible for paying all property operating expenses, including maintenance, insurance, utilities, property taxes and, if applicable, ground rent expense; therefore, the Company is generally not responsible for repairs or other capital expenditures related to the properties while the triple-net leases are in effect and, at the end of the lease term, the lessees are responsible for returning the property to the Company in a substantially similar condition as when they took possession. Some of the Company’s leases provide that in the event the Company wishes to sell the property subject to that lease, it first must offer the lessee the right to purchase the property on the same terms and conditions as any offer which it intends to accept for the sale of the property.

99

Scheduled future minimum base rental payments due to be received under the remaining non-cancelable term of the operating leases in place as of December 31, 2022 were as follows:

(in thousands)	Future Minimum Base Rental Receipts
2023	$	295,823
2024	298,360
2025	298,352
2026	300,847
2027	300,685
Thereafter	3,129,043
Total	$	4,623,110

Since lease renewal periods are exercisable at the option of the lessee, the preceding table presents future minimum base rental payments to be received during the initial non-cancelable lease term only. In addition, the future minimum lease payments exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to performance thresholds and exclude increases in annual rent based on future changes in the Consumer Price Index, among other items.

The fixed and variable components of lease revenues for the years ended December 31, 2022, 2021, and 2020 were as follows:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed lease revenues	$	270,694	$	210,441	$	165,171
Variable lease revenues (1)	1,632		1,708		1,341
Total lease revenues (2)	$	272,326	$	212,149	$	166,512

_____________________________________

(1)Includes contingent rent based on a percentage of the tenant’s gross sales and costs paid by the Company for which it is reimbursed by its tenants.

(2)Excludes the amortization and accretion of above- and below-market lease intangible assets and liabilities and lease incentives and the adjustment to rental revenue for tenant credit.

As Lessee

The Company has a number of ground leases, an office lease and other equipment leases which are classified as operating leases. As of December 31, 2022, the Company's ROU assets and lease liabilities were $7.3 million and $9.0 million, respectively. As of December 31, 2021, the Company's ROU assets and lease liabilities were $7.4 million and $9.4 million, respectively. These amounts are included in rent receivables, prepaid expenses and other assets, net and accrued liabilities and other payables on the Company's consolidated balance sheets.

The discount rate applied to measure each ROU asset and lease liability is based on the Company's incremental borrowing rate ("IBR"). The Company considers the general economic environment and its historical borrowing activity and factors in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As the Company did not elect to apply hindsight, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. Certain of the Company's ground leases offer renewal options which it assesses against relevant economic factors to determine whether it is reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that the Company is reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and ROU asset.

The following table sets forth information related to the measurement of the Company's lease liabilities as of the dates presented:

	December 31, 2022	December 31, 2021
Weighted average remaining lease term (in years)	22.9	21.5
Weighted average discount rate	6.09%	6.08%

100

The following table sets forth the details of rent expense for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed rent expense - Ground Rent	$	981	$	957	$	905
Fixed rent expense - Office Rent	511		510		512
Variable rent expense	—		—		—
Total rent expense	$	1,492	$	1,467	$	1,418

As of December 31, 2022, future lease payments due from the Company under the ground, office and equipment operating leases where the Company is directly responsible for payment and the future lease payments due under the ground operating leases where the Company's tenants are directly responsible for payment over the next five years and thereafter were as follows:

(in thousands)	Office and Equipment Leases		Ground Leases to be Paid by the Company		Ground Leases to be Paid Directly by the Company’s Tenants		Total Future Minimum Base Rental Payments
2023	$	525	$	135	$	773	$	1,433
2024	531		28		728		1,287
2025	538		—		653		1,191
2026	—		—		658		658
2027	—		—		671		671
Thereafter	—		—		15,453		15,453
Total	$	1,594	$	163	$	18,936	20,693
Present value discount							(11,714)
Lease liabilities							$	8,979

The Company has adopted the short-term lease policy election and accordingly, the table above excludes future minimum base cash rental payments by the Company or its tenants on leases that have a term of less than 12 months at lease inception. The total of such future obligations is not material.

5. Long Term Debt

The following table summarizes the Company's outstanding indebtedness as of December 31, 2022 and 2021:

		Principal Outstanding				Weighted Average Interest Rate (1)
(in thousands)	Maturity Date	December 31, 2022		December 31, 2021		December 31, 2022	December 31, 2021
Unsecured term loans:
2024 Term Loan	April 2024	$	200,000	$	200,000	5.3%	1.3%
2027 Term Loan	February 2027	430,000		430,000		5.3%	1.6%
2028 Term Loan	January 2028	400,000		—		5.3%	—%
Senior unsecured notes	July 2031	400,000		400,000		3.0%	3.0%
Revolving Credit Facility	February 2026	—		144,000		—%	1.3%
Total principal outstanding		$	1,430,000	$	1,174,000	4.6%	2.0%

______________________________________________________

(1)Interest rates are presented as stated in debt agreements and do not reflect the impact of the Company's interest rate swap and lock agreements, where applicable (see Note 6—Derivative and Hedging Activities).

101

The following table summarizes the scheduled principal payments on the Company’s outstanding indebtedness as of December 31, 2022:

(in thousands)	2024 Tem Loan		2027 Term Loan		2028 Term Loan		Senior Unsecured Notes		Revolving Credit Facility		Total
2023	$	—	$	—	$	—	$	—	$	—	$	—
2024	200,000		—		—		—		—		200,000
2025	—		—		—		—		—		—
2026	—		—		—		—		—		—
2027	—		430,000		—		—		—		430,000
Thereafter	—		—		400,000		400,000		—		800,000
Total	$	200,000	$	430,000	$	400,000	$	400,000	$	—	$	1,430,000

The Company was not in default of any provisions under any of its outstanding indebtedness as of December 31, 2022 or 2021.

Revolving Credit Facility, 2024 Term Loan and 2028 Term Loan

On April 12, 2019, the Company, through the Operating Partnership, entered into an amended and restated credit agreement (the “Amended Credit Agreement”) with a group of lenders, amending and restating the terms of the Company’s previous $300.0 million revolving credit facility (the “2018 Credit Facility”) to increase the maximum aggregate initial original principal amount of the revolving loans available thereunder up to $400.0 million (the “Revolving Credit Facility”) and to permit the incurrence of an additional $200.0 million in term loans thereunder (the “2024 Term Loan”). The full amount available under the 2024 Term Loan was borrowed in May 2019.

In February 2022, the Company entered into an amendment to the Amended Credit Agreement (as so amended, the "Credit Agreement") and, pursuant to such amendment, among other things, the availability of extensions of credit under the Revolving Credit Facility was increased to $600.0 million, the accordion feature was increased to $600.0 million, the borrowing base limitation on borrowings thereunder was removed, the leverage-based margin applicable to borrowings under the Revolving Credit Facility was reduced, the LIBOR reference rate was replaced with reference to the Adjusted Term SOFR rate, consistent with market practice, and the composition and extent of lender participation under the Revolving Credit Facility was changed. During the year ended December 31, 2022, in connection with this amendment, the Company recorded a $0.1 million loss on debt extinguishment related to the write-off of certain deferred financing costs on the Revolving Credit Facility.

Prior to the February 2022 amendment, the Revolving Credit Facility had a term of four years beginning on April 12, 2019, with an extension option of up to six months exercisable by the Operating Partnership, subject to certain conditions, and the 2024 Term Loan was set to mature on April 12, 2024. The loans under each of the Revolving Credit Facility and the 2024 Term Loan initially bore interest at an annual rate of applicable LIBOR plus the applicable margin (which applicable margin varied between the Revolving Credit Facility and the 2024 Term Loan). The applicable LIBOR was the rate with a term equivalent to the interest period applicable to the relevant borrowing. The applicable margin was initially a spread set according to a leverage-based pricing grid.

The Revolving Credit Facility matures on February 10, 2026, with two extension options of six months each, exercisable by the Operating Partnership subject to the satisfaction of certain conditions. The 2024 Term Loan matures on April 12, 2024. The loans under each of the Revolving Credit Facility and the 2024 Term Loan initially bear interest at an annual rate of applicable Adjusted Term SOFR (as defined in the Credit Agreement) plus an applicable margin (which applicable margin varies between the Revolving Credit Facility and the 2024 Term Loan). The Adjusted Term SOFR is a rate with a term equivalent to the interest period applicable to the relevant borrowing. In addition, the Operating Partnership is required to pay a revolving facility fee throughout the term of the Revolving Credit Facility. The applicable margin and the revolving facility fee rate are initially a spread and rate, as applicable, set according to a leverage-based pricing grid. At the Operating Partnership's election, on and after receipt of an investment grade corporate credit rating from S&P, Moody's or Fitch, the applicable margin and the revolving facility fee rate will be a spread and rate, as applicable, set according to the credit ratings provided by S&P, Moody's and/or Fitch.

102

In July 2022, the Credit Agreement was further amended to provide for an additional $400.0 million of second tranche term loans, which could be borrowed on a delayed draw basis (the “2028 Term Loan”). Loans under the 2028 Term Loan in an aggregate principal amount of $250.0 million were drawn in July 2022, concurrently with the closing of such amendment, and the remaining $150 million was drawn in October 2022. Such amendment also amended the applicable margin grid such that the applicable pricing for all borrowings under the Credit Agreement is based on the credit rating of the Company’s long-term senior unsecured non-credit enhanced debt for borrowed money (subject to a single step-down in the applicable pricing if the Company achieves a consolidated leverage ratio that is less than 0.35 to 1:00 while maintaining a credit rating of BBB/Baa2 from S&P, Moody's and/or Fitch), and reset the accordion feature to maintain the $600.0 million availability thereunder.

Each of the Revolving Credit Facility, the 2024 Term Loan and the 2028 Term Loan is freely pre-payable at any time. Outstanding credit extensions under the Revolving Credit Facility are mandatorily payable if the amount of such credit extensions exceeds the revolving facility limit. The Operating Partnership may re-borrow amounts paid down on the Revolving Credit Facility prior to its maturity. Loans repaid under the 2024 Term Loan and 2028 Term Loan cannot be reborrowed.

The Operating Partnership is the borrower under the Credit Agreement, and the Company and certain of its subsidiaries that own direct or indirect interests in eligible real property assets are guarantors under the Credit Agreement.

Under the terms of the Credit Agreement, the Company is subject to various restrictive financial and nonfinancial covenants which, among other things, require the Company to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios.

The Company was in compliance with all financial covenants and was not in default on any provisions under the Credit Agreement as of December 31, 2022 and 2021.

The following table presents information about the Revolving Credit Facility for the years ended December 31, 2022, 2021 and 2020:

(in thousands)	2022		2021		2020
Balance on Balance on January 1,	$	144,000	$	18,000	$	46,000
Borrowings	299,000		393,000		87,000
Repayments	(443,000)		(267,000)		(115,000)
Balance on December 31,	$	—	$	144,000	$	18,000

The following table presents information about interest expense related to the Revolving Credit Facility for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense and fees	$	2,807	$	1,552	$	1,367
Amortization of deferred financing costs	1,217		1,165		1,165
Total	$	4,024	$	2,717	$	2,532

Total deferred financing costs, net, of $3.7 million and $1.4 million related to the Revolving Credit Facility were included within rent receivables, prepaid expenses and other assets, net on the Company’s consolidated balance sheets as of December 31, 2022 and 2021, respectively.

As of December 31, 2022 and 2021, the Company had $600.0 million and $256.0 million, respectively, of unused borrowing capacity under the Revolving Credit Facility.

2027 Term Loan

On November 26, 2019, the Company, through the Operating Partnership, entered into a $430 million term loan (the “2027 Term Loan”) with a group of lenders. The 2027 Term Loan provides for term loans to be drawn up to an aggregate amount of $430 million with a maturity of November 26, 2026. The Company borrowed the entire $430.0 million available under the 2027 Term Loan in separate draws in December 2019 and March 2020.

103

In February 2022, the Company entered into an amendment to the 2027 Term Loan to, among other things, reduce the leverage-based margin applicable to borrowings, extend the maturity date of the 2027 Term Loan to February 18, 2027, replace the LIBOR reference rate with reference to the Adjusted Term SOFR rate, consistent with market practice, and change the composition and extent of lender participation under the 2027 Term Loan. During the year ended December 31, 2022, in connection with this amendment, the Company recorded a $2.1 million loss on debt extinguishment related to fees and the write-off of certain deferred financing costs on the 2027 Term Loan.

In August 2022, the Company entered into an amendment to the 2027 Term Loan to make certain changes to provisions relating to the rates and other matters to reflect changes in market standards.

Prior to its amendment in February 2022, borrowings under the 2027 Term Loan bore interest at an annual rate of applicable LIBOR plus the applicable margin. Following this amendment, the 2027 Term Loan bears interest at an annual rate of applicable Adjusted Term SOFR plus the applicable margin. The applicable LIBOR/Adjusted Term SOFR is the rate with a term equivalent to the interest period applicable to the relevant borrowing. The applicable margin was initially a spread set according to a leverage-based pricing grid. In May 2022, the Operating Partnership made an irrevocable election to have the applicable margin be a spread set according to the Company’s corporate credit ratings provided by S&P, Moody’s and/or Fitch.

The 2027 Term Loan is pre-payable at any time by the Operating Partnership (as borrower) without penalty. The Operating Partnership may not re-borrow amounts paid down on the 2027 Term Loan. The 2027 Term Loan has an accordion feature to increase, subject to certain conditions, the maximum availability of the facility up to an aggregate of $500 million.

The Operating Partnership is the borrower under the 2027 Term Loan, and the Company and certain of its subsidiaries that own direct or indirect interests in eligible real property assets are guarantors under the facility. Under the terms of the 2027 Term Loan, the Company is subject to various restrictive financial and nonfinancial covenants which, among other things, require the Company to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios.

The Company was in compliance with all financial covenants and was not in default of any provisions under the 2027 Term Loan as of December 31, 2022 and 2021.

The following table presents information about aggregate interest expense related to the 2024 Term Loan, 2027 Term Loan and 2028 Term Loan:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense	$	23,967	$	9,819	$	11,685
Amortization of deferred financing costs	836		736		711
Total	$	24,803	$	10,555	$	12,396

Total deferred financing costs, net, of $4.5 million and $3.0 million as of December 31, 2022 and 2021, respectively, related to the Term Loan Facilities are included as a component of unsecured term loans, net of deferred financing costs on the Company’s consolidated balance sheets.

The Company fixed the interest rates on its term loan facilities’ variable-rate debt through the use of interest rate swap agreements. See Note 6—Derivative and Hedging Activities for additional information.

Senior Unsecured Notes

In June 2021, through its Operating Partnership, the Company completed a public offering of $400.0 million aggregate principal amount of 2.950% Senior Notes due 2031 (the "2031 Notes"), resulting in net proceeds of $396.6 million. The 2031 Notes were issued by the Operating Partnership, and the obligations of the Operating Partnership under the 2031 Notes are fully and unconditionally guaranteed on a senior basis by the Company. The 2031 Notes were issued at 99.8% of their principal amount. In connection with the offering of the 2031 Notes, the Operating Partnership incurred $4.7 million in deferred financing costs and an offering discount of $0.8 million.

104

The following is a summary of the senior unsecured notes outstanding as of December 31, 2022 and 2021:

(dollars in thousands)	Maturity Date	Interest Payment Dates	Stated Interest Rate		Principal Outstanding
2031 Notes	July 15, 2031	January 15 and July 15	2.95	%	$	400,000

The Company's senior unsecured notes are redeemable in whole at any time or in part from time to time, at the Operating Partnership's option, at a redemption price equal to the sum of:

•100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest, if any, up to, but not including, the redemption date; and

•a make-whole premium calculated in accordance with the indenture governing the notes.

The following table presents information about interest expense related to the Company's senior unsecured notes for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021
Interest expense	$	11,711	$	5,952
Amortization of deferred financing costs and original issue discount	562		295
Total	$	12,273	$	6,247

Total deferred financing costs, net, of $4.0 million and $4.5 million related to the Company's senior unsecured notes were included within senior unsecured notes, net on the Company's consolidated balance sheet as of December 31, 2022 and 2021.

The Company was in compliance with all financial covenants and was not in default of any provisions under the 2031 Notes as of December 31, 2022 and 2021.

Secured Borrowings

In the normal course of business, the Company has transferred financial assets in various transactions with Special Purpose Entities (“SPE”) determined to be VIEs, which primarily consisted of securitization trusts established for a limited purpose (the “Master Trust Funding Program”). These SPEs were formed for the purpose of securitization transactions in which the Company transferred assets to an SPE, which then issued to investors various forms of debt obligations supported by those assets. In these securitization transactions, the Company typically received cash from the SPE as proceeds for the transferred assets and retained the rights and obligations to service the transferred assets in accordance with servicing guidelines. All debt obligations issued from the SPEs were non-recourse to the Company. The Company determined that the SPEs created in connection with its Master Trust Funding Program should be consolidated as the Company was the primary beneficiary of each of these entities.

Series 2017-1 Notes

In July 2017, the Company issued a series of notes under the Master Trust Funding Program, consisting of $232.4 million of Class A Notes and $15.7 million of Class B Notes (together, the “Series 2017-1 Notes”). The Series 2017-1 Notes were issued by three SPEs formed to hold assets and issue the secured borrowings associated with the securitization.

In February 2020, the Company voluntarily prepaid $62.3 million of the Class A Series 2017-1 Notes at par plus accrued interest pursuant to the terms of the agreements related to such securities. The Company was not subject to the payment of a make whole amount in connection with this prepayment. The Company accounted for this prepayment as a debt extinguishment and recorded a $0.9 million loss related to the amortization of deferred financing costs during the year ended December 31, 2020.

In June 2021, the Company voluntarily prepaid the remaining $171.2 million of principal outstanding on the Series 2017-1 Notes and paid a make-whole premium of $2.5 million pursuant to the terms of the agreements related to such securities. The Company accounted for this prepayment as a debt extinguishment.

105

The following table presents information about interest expense related to the Master Trust Funding Program:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense	$	—	$	3,551	$	7,619
Amortization of deferred financing costs	—		312		656
Total	$	—	$	3,863	$	8,275

6. Derivative and Hedging Activities

The Company does not enter into derivative financial instruments for speculative or trading purposes. The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

These derivatives are considered cash flow hedges and are recorded on a gross basis at fair value. Subsequent to the adoption of ASU 2017-12, assessments of hedge effectiveness are performed quarterly using either a qualitative or quantitative approach. The Company recognizes the entire change in the fair value in accumulated other comprehensive income (loss) and the change is reflected as derivative changes in fair value in the supplemental disclosures of non-cash financing activities in the consolidated statements of cash flows. The amounts recorded in accumulated other comprehensive income (loss) will subsequently be reclassified to interest expense as interest payments are made on the Company's borrowings under its variable-rate term loan facilities. During the next twelve months, the Company estimates that $26.6 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense. The Company does not have netting arrangements related to its derivatives.

The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. As of December 31, 2022 and 2021, there were no events of default related to the Company's derivative financial instruments.

106

The following table summarizes the notional amount at inception and fair value of these instruments on the Company's balance sheets as of December 31, 2022 and 2021 (dollar amounts in thousands):

						Fair Value of Asset/(Liability)(3)(4)
Derivatives Designated as Hedging Instruments	Fixed Rate Paid by Company	Effective Date	Maturity Date	Notional Value (2)		December 31, 2022		December 31, 2021
Interest Rate Swap (1)	1.96%	5/14/2019	4/12/2024	$	100,000	$	3,545	$	(2,747)
Interest Rate Swap (1)	1.95%	5/14/2019	4/12/2024	50,000		1,781		(1,374)
Interest Rate Swap (1)	1.94%	5/14/2019	4/12/2024	50,000		1,777		(1,377)
Interest Rate Swap (1)	1.52%	12/9/2019	11/26/2026	175,000		14,685		(3,444)
Interest Rate Swap (1)	1.51%	12/9/2019	11/26/2026	50,000		4,248		(996)
Interest Rate Swap (1)	1.49%	12/9/2019	11/26/2026	25,000		2,120		(481)
Interest Rate Swap (1)	1.26%	7/9/2020	11/26/2026	100,000		9,324		(790)
Interest Rate Swap (1)	1.28%	7/9/2020	11/26/2026	80,000		7,418		(629)
Interest Rate Swap	3.19%	9/26/2022	1/25/2028	50,000		1,166		—
Interest Rate Swap	3.35%	9/26/2022	1/25/2028	50,000		804		—
Interest Rate Swap	3.36%	9/26/2022	1/25/2028	25,000		387		—
Interest Rate Swap	3.43%	9/26/2022	1/25/2028	50,000		612		—
Interest Rate Swap	3.71%	9/26/2022	1/25/2028	50,000		(12)		—
Interest Rate Swap	3.70%	9/26/2022	1/25/2028	25,000		(15)		—
Interest Rate Swap	4.00%	10/26/2022	1/25/2028	50,000		(693)		—
Interest Rate Swap	3.95%	11/28/2022	1/25/2028	25,000		(293)		—
Interest Rate Swap	4.03%	11/28/2022	1/25/2028	25,000		(396)		—
Interest Rate Swap	4.06%	11/28/2022	1/25/2028	25,000		(427)		—
Interest Rate Swap	4.07%	11/28/2022	1/25/2028	25,000		(428)		—
				$	1,030,000	$	45,603	$	(11,838)

 _____________________________________

(1)In June 2022, the Company converted the reference rate used in these interest rate swaps from 1-month LIBOR to 1-month Adjusted Term SOFR.

(2)Notional value indicates the extent of the Company’s involvement in these instruments, but does not represent exposure to credit, interest rate or market risks.

(3)Derivatives in a liability position totaling $2.3 million as of December 31, 2022 are included within derivative liabilities in the Company’s consolidated balance sheets.

(4)Derivatives in an asset position totaling to $47.9 million as of December 31, 2022 are included within derivative assets in the Company’s consolidated balance sheets.

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

In May 2021, in anticipation of the issuance of the 2031 Notes (which was completed in June 2021), the Company entered into a treasury rate lock agreement which was designated as a cash flow hedge associated with $330.0 million of principal. In June 2021, the agreement was settled in accordance with its terms. The Company recorded a deferred loss of $4.8 million from the settlement of this treasury rate lock agreement, which was recognized as a component of other comprehensive income (loss) in the Company's consolidated statements of comprehensive income/(loss) for the year ended December 31, 2021.

The following table presents amounts recorded to accumulated other comprehensive income/loss related to derivative and hedging activities for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Accumulated other comprehensive income (loss)	$	56,762	$	22,508	$	(35,445)

As of December 31, 2022, the fair value of derivatives in a net asset position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $48.2 million. As of

107

December 31, 2022, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $2.4 million. 

As of December 31, 2021, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $11.9 million. As of December 31, 2021, there were no derivatives in a net asset position.

During the year ended December 31, 2022, the Company recorded a gain on the change in fair value of its interest rate swaps of approximately $26,000 and during the years ended December 31, 2021 and 2020, the Company recorded a loss on the change in fair value of its interest rate swaps of $10.1 million and $6.7 million, respectively. These gains and losses are included in interest expense in the Company's consolidated statements of operations for the respective periods.

As of December 31, 2022 and December 31, 2021, the Company had not posted any collateral related to these agreements and was not in breach of any provisions of such agreements. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value, which were a $45.9 million asset and $11.9 million liability as of December 31, 2022 and 2021, respectively.

7. Equity

Stockholders' Equity

In January 2020, the Company completed a follow-on offering of 7,935,000 shares its common stock, including 1,035,000 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares, at an offering price of $25.20 per share. Net proceeds from this follow-on offering, after deducting underwriting discounts and commissions and other expenses, were $191.5 million.

In September 2020, the Company completed a follow-on offering of 10,120,000 shares its common stock, including 1,320,000 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares, at an offering price of $19.00 per share. Net proceeds from this follow-on offering, after deducting underwriting discounts and commissions and other expenses, were $184.1 million.

In April 2021, the Company completed a follow-on offering of 8,222,500 shares of its common stock, including 1,072,500 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares, at a public offering price of $23.50 per share. Net proceeds from this follow-on offering, after deducting underwriting discounts and commissions and other expenses, were $185.1 million.

In August 2022, the Company completed a follow-on offering of 8,740,000 shares of its common stock, including 1,140,000 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares, at a public offering price of $23.00 per share. Net proceeds from this follow-on offering, after deducting underwriting discounts and commissions and other expenses, were $192.6 million.

At the Market Program

In May 2022, the Company established a new at the market common equity offering program, pursuant to which it can publicly offer and sell, from time to time, shares of its common stock with an aggregate gross sales price of up to $500 million (the "2022 ATM Program") through the identified sales agents, as its sales agents or, if applicable, as forward sellers, or directly to such agents as principals. In addition to the issuance and sale by the Company of shares to or through the agents, the 2022 ATM Program also permits the Company to enter into separate forward sale agreements with the identified forward purchasers. Refernces to our "ATM Program" are to the 2022 ATM Program or the 2022 ATM Program and our prior ATM programs as the context requires.

The following table presents information about the 2022 ATM Program and the Company's prior ATM Programs:

108

Program Name	Date Established	Date Terminated	Maximum Sales Authorization		Gross Sales through December 31, 2022
2019 ATM Program	August 2019	June 2020	$	200,000	$	184,400
2020 ATM Program	June 2020	July 2021	$	250,000	$	166,800
2021 ATM Program	July 2021	May 2022	$	350,000	$	348,140
2022 ATM Program (1)	May 2022		$	500,000	$	75,419

_____________________________________

(1)Includes 957,453 shares as of December 31, 2022 that the Company sold on a forward basis that were physically settled for cash in January 2023.

The following table details information related to activity under the ATM Program for each period presented:

	Year ended December 31,
(in thousands, except share and per share data)	2022		2021		2020
Shares of common stock sold (1)	9,794,137		10,005,890		4,499,057
Weighted average sale price per share	$	24.00	$	27.58	$	19.02
Gross proceeds	$	235,060	$	275,972	$	85,559
Net proceeds	$	232,478	$	271,949	$	84,104

_____________________________________

(1)Includes 957,453 shares during the year ended December 31, 2022 that the Company sold on a forward basis that were physically settled for cash in January 2023.

Dividends on Common Stock

During the years ended December 31, 2022, 2021 and 2020, the Company's board of directors declared the following quarterly cash dividends on common stock: 

Date Declared	Record Date	Date Paid	Dividend per Share of Common Stock		Total Dividend (dollars in thousands)
November 30, 2022	December 30, 2022	January 13, 2023	$	0.275	$	39,246
September 2, 2022	September 30, 2022	October 14, 2022	$	0.27	$	38,533
June 2, 2022	June 30, 2022	July 14, 2022	$	0.27	$	35,916
March 14, 2022	March 31, 2022	April 13, 2022	$	0.26	$	34,188
December 3, 2021	December 31, 2021	January 13, 2022	$	0.26	$	32,466
September 2, 2021	September 30, 2021	October 14, 2021	$	0.25	$	30,397
May 27, 2021	June 30, 2021	July 15, 2021	$	0.25	$	29,559
March 5, 2021	March 31, 2021	April 15, 2021	$	0.24	$	26,265
December 3, 2020	December 31, 2020	January 15, 2021	$	0.24	$	25,570
September 4, 2020	September 30, 2020	October 15, 2020	$	0.23	$	24,115
June 11, 2020	June 30, 2020	July 15, 2020	$	0.23	$	21,419
March 18, 2020	March 31, 2020	April 15, 2020	$	0.23	$	21,168

The Company has determined that, during the years ended December 31, 2022, 2021 and 2020, approximately 79.7%, 69.4% and 59.0%, respectively, of the distributions it paid represented taxable income and 20.3%, 30.6% and 41.0%, respectively, of the distributions it paid represented return of capital for federal income tax purposes.

8. Non-controlling Interests

Essential Properties OP G.P., LLC, a wholly owned subsidiary of the Company, is the sole general partner of the Operating Partnership and holds a 1.0% general partner interest in the Operating Partnership. The Company contributes the net proceeds from issuing shares of common stock to the Operating Partnership in exchange for a number of OP Units equal to the number of shares of common stock issued.

109

As of December 31, 2022, the Company held 142,379,655 OP Units, representing a 99.6% limited partner interest in the Operating Partnership. As of the same date, certain members of management and external parties (the "Non-controlling OP Unit Holders") held 553,847 OP Units in the aggregate, representing a 0.4% limited partner interest in the Operating Partnership. As of December 31, 2021, the Company held 124,649,053 OP Units, representing a 99.6% limited partner interest in the Operating Partnership and the Non-controlling OP Unit Holders held 553,847 OP Units in the aggregate, representing a 0.4% limited partner interest in the Operating Partnership. The OP Units held by the Non-controlling OP Unit Holders are presented as non-controlling interests in the Company's consolidated financial statements.

A holder of OP Units has the right to distributions per unit equal to dividends per share paid on the Company's common stock and has the right to redeem OP Units for cash or, at the Company's election, shares of the Company's common stock on a one-for-one basis, provided, however, that such OP Units must have been outstanding for at least one year. Distributions to OP Unit holders are declared and paid concurrently with the Company's cash dividends to common stockholders. See Note 7—Equity for details.

9. Equity Based Compensation

Equity Incentive Plan

In 2018, the Company adopted an equity incentive plan (the “Equity Incentive Plan”), which provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock awards, performance awards and LTIP units. Officers, employees, non-employee directors, consultants, independent contractors and agents who provide services to the Company or to any subsidiary of the Company are eligible to receive such awards. A maximum of 3,550,000 shares may be issued under the Equity Incentive Plan, subject to certain conditions.

The following table presents information about the Company's restricted stock awards ("RSAs") and restricted stock units ("RSUs") during the years ended December 31, 2022, 2021 and 2020:

	Restricted Stock Awards			Restricted Stock Units
	Shares	Wtd. Avg. Grant Date Fair Value		Units	Wtd. Avg. Grant Date Fair Value
Unvested, January 1, 2020	492,701	$	13.72	100,814	$	22.80
Granted	3,658	15.68		269,017	24.99
Vested	(255,761)	13.73		(42,658)	21.00
Forfeited	—	—		(5,571)	—
Unvested, December 31, 2020	240,598	$	13.73	321,602	$	25.27
Unvested, January 1, 2021	240,598	$	13.73	321,602	$	25.27
Granted	—	—		213,686	31.78
Vested	(221,694)	13.70		(72,879)	18.83
Forfeited	—	—		(7,717)	23.52
Unvested, December 31, 2021	18,904	$	14.12	454,692	$	29.39
Unvested, January 1, 2022	18,904	$	14.12	454,692	$	29.39
Granted	—	—		607,347	29.08
Vested	(9,865)	14.12		(243,640)	25.70
Forfeited	—	—		(1,019)	27.25
Unvested, December 31, 2022	9,039	$	14.12	817,380	$	30.26

Restricted Stock Awards

On June 25, 2018, an aggregate of 691,290 shares of RSAs were issued to the Company's directors, executive officers and other employees under the Equity Incentive Plan. These RSAs vested over periods ranging from one year to three years from the date of grant, subject to the individual recipient's continued provision of service to the Company through the applicable vesting dates.

110

In January 2019, RSAs relating to an aggregate of 46,368 shares of unvested restricted common stock were granted to the Company's executive officers, other employees and an external consultant under the Equity Incentive Plan. These RSAs vest over periods ranging from one year to four years from the date of grant, subject to the individual recipient's continued provision of service to the Company through the applicable vesting dates. In June 2020, additional RSAs relating to an aggregate of 3,658 shares of unvested restricted common stock were granted to certain members of the Company's board of directors which vested immediately upon grant. The Company estimates the grant date fair value of RSAs granted under the Equity Incentive Plan using the average market price of the Company's common stock on the date of grant.

The following table presents information about the Company's RSAs for the periods presented: 

	Year ended December 31,
(in thousands)	2022		2021		2020
Compensation cost recognized in general and administrative expense	$	128	$	1,548	$	3,405
Dividends declared on unvested RSAs and charged directly to distributions in excess of cumulative earnings	8		70		279
Fair value of shares vested during the period	139		3,037		3,512

The following table presents information about the Company's RSAs as of the dates presented: 

	December 31,
(Dollars in thousands)	2022		2021
Total unrecognized compensation cost	$	2	$	130
Weighted average period over which compensation cost will be recognized (in years)	0.1		1.0

Restricted Stock Units

In 2019, 2020, 2021, and 2022, the Company issued target grants of 119,085, 84,684, 126,353, and 149,699 performance-based RSUs, respectively, to members of the Company's senior management team under the Equity Incentive Plan. Of these awards, 75% are non-vested RSUs for which vesting percentages and the ultimate number of units vesting will be calculated based on the total shareholder return ("TSR") of the Company's common stock as compared to the TSR of peer companies identified in the grant agreements. The payout schedule can produce vesting percentages ranging from 0% to 250% of target. TSR is calculated over the performance period for each award based upon the average closing price for the 20-trading day period ending December 31st of the year prior to grant divided by the average closing price for the 20-trading day period ending December 31st of the third year following the grant. The target number of units is based on achieving a TSR equal to the 50th percentile of the peer group. The Company records expense on these TSR RSUs based on achieving the target.

The grant date fair value of the TSR RSUs was measured using a Monte Carlo simulation model based on the following assumptions:

	Grant Year
	2022	2021	2020
Volatility	54%	55%	20%
Risk free rate	1.68%	0.20%	1.61%

The remaining 25% of these performance-based RSUs vest based on the Compensation Committee's subjective evaluation of the individual recipient's achievement of certain strategic objectives over the performance period of the award. In May 2020, the Compensation Committee evaluated and subjectively awarded 7,596 of these RSUs to a former executive officer of the Company, which vested immediately. In January 2022, the Compensation Committee identified specific performance targets and completed its subjective evaluation in relation to the performance-based RSUs granted in 2019 and concluded that 78,801 RSUs should be awarded. 50% of these RSUs vested immediately and the remaining 50% vested on December 31, 2022. During the year ended December 31, 2022, the Company recorded $2.1 million of compensation expense with respect to these performance-based RSUs granted in 2019. As of December 31, 2022, the Compensation Committee had not identified specific performance targets relating to the individual recipients' achievement of strategic objectives for the subjective awards granted in 2020, 2021 and 2022. As such, these awards do not have either a service inception or

111

a grant date for GAAP accounting purposes and the Company recorded no compensation expense with respect to this portion of the performance-based RSUs during the years ended December 31, 2022, 2021 and 2020.

In June 2020 and May 2021, the Company issued 26,817 and 16,765 RSUs, respectively, to the Company's independent directors. These awards vested in full on the earlier of one year from the grant date or the first annual meeting of stockholders that occurs after the grant date, to the individual recipient's continued provision of service to the Company through the applicable vesting date. The Company estimated the grant date fair value of these RSUs using the average market price of the Company's common stock on the date of grant.

In 2020, 2021 and 2022, the Company issued an aggregate of 157,943, 118,921 and 199,793 RSUs, respectively, to the Company’s executive officers, other employees and directors under the Equity Incentive Plan. These awards vest over a period of up to five years from the date of grant, subject to the individual recipient’s continued provision of service to the Company through the applicable vesting dates.

In January 2022, the Company issued 69,372 performance-based RSUs (at target) to an executive officer

under the Equity Incentive Plan. These RSUs vest based on the compound annual growth rate of the Company's

adjusted funds from operations ("AFFO CAGR") over a five year performance period, and the payout schedule can

produce vesting percentages ranging from 0% to 200% of target. To the extent the performance goal is achieved,

these performance-based RSUs will vest in 50% increments on each of the four-year and five-year anniversary of

the grant date, subject to the recipient's continued provision of service to the Company through the applicable

vesting dates. As of December 31, 2022, based on its AFFO CAGR forecasts, the Company believes it is probable

that the maximum performance level will be achieved and recorded $0.9 million of compensation

expense based off of this estimate during the year ended December 31, 2022.

A portion of the RSUs that vested in 2022 and 2021 were net share settled such that the Company withheld shares with a value equal to the relevant employee's income and employment tax obligations with respect to the vesting and remitted a cash payment to the appropriate taxing authorities.

The following table presents information about the Company's RSUs for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Compensation cost recognized in general and administrative expense	$	9,361	$	4,135	$	2,672
Dividend equivalents declared and charged directly to distributions in excess of cumulative earnings	366		241		125
Fair value of units vested during the period	6,262		1,372		896

The following table presents information about the Company's RSUs as of the dates presented:

	December 31,
(Dollars in thousands)	2022		2021
Total unrecognized compensation cost	$	13,761	$	7,735
Weighted average period over which compensation cost will be recognized (in years)	2.8		2.3

10. Net Income Per Share

The Company computes net income per share pursuant to the guidance in FASB ASC Topic 260, Earnings Per Share. The guidance requires the classification of the Company’s unvested restricted common stock and units, which contain rights to receive non-forfeitable dividends or dividend equivalents, as participating securities requiring the two-class method of computing net income per share. Diluted net income per share of common stock further considers the effect of potentially dilutive shares of common stock outstanding during the period, including the assumed vesting of restricted share units with a market-based or service-based vesting condition, where dilutive. The OP Units held by non-controlling interests represent potentially dilutive securities as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one-for-one basis.

112

The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share (dollars in thousands):

	Year ended December 31,
(dollar amounts in thousands)	2022		2021		2020
Numerator for basic and diluted earnings per share:
Net income	$	134,742	$	96,211	$	42,528
Less: net income attributable to non-controlling interests	(612)		(486)		(255)
Less: net income allocated to unvested restricted common stock and RSUs	(374)		(311)		(404)
Net income available for common stockholders: basic	133,756		95,414		41,869
Net income attributable to non-controlling interests	612		486		255
Net income available for common stockholders: diluted	$	134,368	$	95,900	$	42,124
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding	134,950,418		116,479,322		95,664,071
Less: weighted average number of shares of unvested restricted common stock	(9,230)		(121,263)		(353,036)
Weighted average shares outstanding used in basic net income per share	134,941,188		116,358,059		95,311,035
Effects of dilutive securities: (1)
OP Units	553,847		553,847		553,847
Unvested restricted common stock and RSUs	356,044		554,432		332,823
Forward sales through ATM Program	4,837		—		—
Weighted average shares outstanding used in diluted net income per share	135,855,916		117,466,338		96,197,705

_____________________________________

(1)For the years ended December 31, 2022 and 2020 excludes the impact of 171,059 and 124,295 unvested restricted stock units, respectively, as the effect would have been antidilutive.

11. Commitments and Contingencies

As of December 31, 2022, the Company had remaining future commitments, under mortgage notes, reimbursement obligations or similar arrangements, to fund $34.6 million to its tenants for development, construction and renovation costs related to properties leased from the Company.

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company or its properties.

Environmental Matters

In connection with the ownership of real estate, the Company may be liable for costs and damages related to environmental matters. As of December 31, 2022, the Company had not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the Company's business, financial condition, results of operations or liquidity.

Defined Contribution Retirement Plan

The Company has a defined contribution retirement savings plan qualified under Section 401(a) of the Code (the "401(k) Plan"). The 401(k) Plan is available to all of the Company's full-time employees. The Company provides a matching contribution in cash equal to 100% of the first 6% of eligible compensation contributed by participants which vests immediately.

113

The following table presents the matching contributions made by the Company for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31,
(in thousands)	2022		2021		2020
401(k) matching contributions	$	318	$	205	$	165

Employment Agreements

The Company has employment agreements with its executive officers. These employment agreements have an initial term of four years, with automatic one year extensions unless notice of non-renewal is provided by either party. These agreements provide for initial annual base salaries and an annual performance bonus. If an executive officer's employment terminates under certain circumstances, the Company would be liable for any annual performance bonus awarded for the year prior to termination, to the extent unpaid, continued payments equal to 12 months of base salary, monthly reimbursement for 12 months of COBRA premiums, and under certain situations, a pro rata bonus for the year of termination.

12. Fair Value Measurements

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs.  

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures regularly and, depending on various factors, it is possible that an asset or liability may be classified differently from period to period. However, the Company expects that changes in classifications between levels will be rare.

In addition to the disclosures for assets and liabilities required to be measured at fair value at the balance sheet date, companies are required to disclose the estimated fair values of all financial instruments, even if they are not presented at their fair value on the consolidated balance sheet. The fair values of financial instruments are estimates based upon market conditions and perceived risks at December 31, 2022 and 2021. These estimates require management's judgment and may not be indicative of the future fair values of the assets and liabilities.

Financial assets and liabilities for which the carrying values approximate their fair values include cash and cash equivalents, restricted cash, accounts receivable included within prepaid expenses and other assets, dividends payable and accrued liabilities and other payables. Generally, these assets and liabilities are short term in duration and their carrying value approximates fair value on the consolidated balance sheets.

The estimated fair values of the Company's fixed‑rate loans receivable have been derived based on primarily unobservable market inputs such as interest rates and discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. These measurements are classified as Level 3 within the fair value hierarchy. The Company believes the carrying value of its fixed-rate loans receivable approximates fair value as of December 31, 2022 and 2021.

The estimated fair values of the Company's borrowings under the Revolving Credit Facility, the 2024 Term Loan, the 2027 Term Loan and the 2028 Term Loan have been derived based on primarily unobservable market inputs such as interest rates and discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. These measurements are classified as Level 3 within the fair value hierarchy. The Company believes the carrying value of its borrowings under the Revolving Credit Facility, the 2024 Term Loan, the 2027 Term Loan and the 2028 Term Loan as of December 31, 2022 and 2021 approximate fair value.

114

The Company measures the fair value of its senior unsecured notes and derivative financial instruments on a recurring basis. The fair values of these financial assets were determined using the following input levels as of the dates presented: 

	Net Carrying				Fair Value Measurements Using Fair Value Hierarchy
(in thousands)	Value		Fair Value		Level 1		Level 2		Level 3
December 31, 2022
Financial assets:
Senior unsecured notes (1)	$	395,286	$	292,120	$	292,120	$	—	$	—
Interest rate swaps	45,603		45,603		—		45,603		—
December 31, 2021
Financial assets:
Senior unsecured notes (1)	$	394,723	$	400,640	$	400,640	$	—	$	—
Interest rate swaps	(11,838)		(11,838)		—		(11,838)		—

_____________________________________

(1)Carrying value is net of $4.0 million and $4.5 million of net deferred financing costs and $0.7 million and $0.8 million of net discount as of December 31, 2022 and 2021, respectively.

The Company measures its real estate investments at fair value on a nonrecurring basis. The fair values of these real estate investments were determined using the following input levels as of the dates presented: 

	Net Carrying				Fair Value Measurements Using Fair Value Hierarchy
(in thousands)	Value		Fair Value		Level 1		Level 2		Level 3
December 31, 2022
Non-financial assets:
Long-lived assets	$	12,144	$	12,144	$	—	$	—	$	12,144
December 31, 2021
Non-financial assets:
Long-lived assets	$	—	$	—	$	—	$	—	$	—

Long-Lived Assets

The Company reviews its investments in real estate when events or circumstances change indicating that the carrying amount of an asset may not be recoverable. In the evaluation of an investment in real estate for impairment, many factors are considered, including estimated current and expected operating cash flows from the asset during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of the asset in the ordinary course of business.

Quantitative information about Level 3 fair value measurements as of December 31, 2022 is as follows:

(dollar amounts in thousands)	Fair Value		Valuation Techniques	Significant Unobservable Inputs
Non-financial assets:
Long-lived assets:
Equipment rental and sales	$	7,337	Sales comparison approach	Comparable sales price	$	7,337
Quick service restaurant	465		Discounted cash flow approach	Terminal Value: 8.0% Discount Rate: 8.5%	465
Pet care services	2,699		Discounted cash flow approach	Terminal Value: 5.0% Discount Rate: 6.0%	2,699
Pet care services	1,643		Discounted cash flow approach	Terminal Value: 8.0% Discount Rate: 8.5%	1,643

115

The fair values of impaired real estate were determined by using the following information, depending on availability, in order of preference: i) signed purchase and sale agreements or letters of intent; ii) recently quoted bid or ask prices; iii) estimates of future cash flows, which consider, among other things, contractual and forecasted rental revenues, leasing assumptions, terminal capitalization rates, discount rates and expenses based upon market conditions; or iv) expectations for the use of the real estate. Based on these inputs, the Company determined that its valuation of the impaired real estate falls within Level 3 of the fair value hierarchy.

13. Subsequent Events

The Company has evaluated all events and transactions that occurred after December 31, 2022 through the filing of this Annual Report on Form 10-K and determined that there have been no events that have occurred that would require adjustment to disclosures in the consolidated financial statements except as disclosed below.

Equity Awards

In January 2023, the Company issued an aggregate of 30,135 shares of unvested RSUs to certain of the Company’s employees under the Equity Incentive Plan. These awards vest over a period of up to four years from the date of grant, subject to the individual recipient’s continued provision of service to the Company through the applicable vesting dates.

Subsequent Acquisition and Disposition Activity

Subsequent to December 31, 2022, the Company acquired 13 real estate properties with an aggregate investment (including acquisition costs) of $56.9 million and invested $5.5 million in new and ongoing construction in progress and reimbursements to tenants for development, construction and renovation costs. In addition, the Company invested $3.4 million in mortgage loans receivable subsequent to December 31, 2022.

Subsequent to December 31, 2022, the Company sold or transferred its investment in 8 real estate properties for an aggregate gross sales price of $19.7 million and incurred approximately $1.0 million of disposition costs related to these transactions.

2022 ATM Program Activity

In January 2023, the Company sold 857,643 shares of its common stock under the 2022 ATM Program for gross proceeds of $20.7 million. Of these shares, 731,185 were sold on a forward basis.

Forward ATM Settlement

In January 2023, the Company physically settled 1,688,638 shares of its common stock sold on a forward basis under the 2022 ATM Program for net proceeds of $39.2 million, including 957,453 shares sold on a forward basis during the year ended December 31, 2022 and 731,185 shares sold a forward basis in January 2023

116

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

As of the end of the period covered by this Annual Report on Form 10-K, our management evaluated, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer,  the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Annual Report on Form 10-K, our disclosure controls and procedures were effective in providing reasonable assurance of compliance.

Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Our internal control system was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, in accordance with generally accepted accounting principles in the United States. Due to inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness of the internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate. Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our internal control over financial reporting as of the end of the period covered by this Annual Report on Form 10-K based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations (2013 Framework) (COSO). Based on such evaluation, our management concluded that our internal control over financial reporting was effective as of the end of the period covered by this Annual Report on Form 10-K.

The effectiveness of our internal control over financial reporting as of December 31, 2022 has been audited by Grant Thornton LLP, an independent registered public accounting firm, as stated in their report which is presented in this Annual Report on Form 10-K.

Changes in Internal Control Over Financial Reporting

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information.

None.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

Not applicable.

117

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information concerning our directors and executive officers required by Item 10 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

Item 11. Executive Compensation.

The information concerning our executive compensation required by Item 11 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information concerning our security ownership of certain beneficial owners and management and related stockholder matters (including equity compensation plan information) required by Item 12 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information concerning certain relationships, related transactions and director independence required by Item 13 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services.

The information concerning our principal accounting fees and services required by Item 14 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

118

PART IV

Item 15. Exhibits, Financial Statement Schedules.

(a)(1) and (2) The following financial statements and financial statement schedules are filed as part of this Annual Report on Form 10-K.

Financial Statements. (see Item 8)

Reports of Independent Registered Public Accounting Firms

Consolidated Balance Sheets as of December 31, 2022 and 2021

Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020

Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020

Consolidated Statements of Stockholders' Equity for the years ended December 31, 2022, 2021 and 2020

Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020

Notes to Consolidated Financial Statements

Financial Statement Schedules. (see schedules beginning on page F-1) 

Schedule III - Real Estate and Accumulated Depreciation

Schedule IV - Mortgage Loans on Real Estate

All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto.

(b)Exhibits. The following exhibits are included or incorporated by reference in this Annual Report on Form 10-K (and are numbered in accordance with Item 601 of Regulation S-K).

Exhibit Number	Description
3.1	Articles of Amendment and Restatement of Essential Properties Realty Trust, Inc., dated as of June 19, 2018 (Incorporated by reference to Exhibit 3.1 to the Company's Annual Report on Form 10-K filed on February 28, 2019)
3.2	Certificate of Correction to the Articles of Amendment and Restatement of Essential Properties Realty Trust, Inc., dated as of February 27, 2019 (Incorporated by reference to Exhibit 3.2 to the Company's Annual Report on Form 10-K filed on February 28, 2019)
3.3	Certificate of Notice, dated August 8, 2019 (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on August 8, 2019)
3.4	Certificate of Notice, dated February 28, 2020 (Incorporated by reference to Exhibit 3.4 to the Company's Annual Report on Form 10-K filed on March 2, 2020)
3.5	Amended and Restated Bylaws of Essential Properties Realty Trust, Inc. (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on November 16, 2020)
4.1	Form of Common Stock Certificate (Incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-11 filed on May 25, 2018)
4.2	Description of the Company's Common Stock, $0.01 par value (Incorporated by reference to Exhibit 4.4 to the Company’s Annual Report on Form 10-K filed on February 23, 2021)
4.3	Indenture, dated as of June 28, 2021, among Essential Properties, L.P., Essential Properties Realty Trust, Inc. and U.S. Bank National Association, as trustee, including the form of the Guarantee (Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on June 28, 2021)

119

4.4	First Supplemental Indenture, dated as of June 28, 2021, among Essential Properties, L.P., Essential Properties Realty Trust, Inc. and U.S. Bank National Association, as trustee, including the form of the Notes (Incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on June 28, 2021)
10.1	Agreement of Limited Partnership of Essential Properties, L.P. (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 26, 2018)
10.2	Amended and Restated Credit Agreement, dated as of April 12, 2019, among the Company, the Operating Partnership, the several lenders from time to time parties thereto, Barclays Bank PLC, as administrative agent, and Citigroup Global Markets Inc. and Bank of America, N.A., as co-syndication agents (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 18, 2019)
10.3	First Amendment to Amended and Restated Credit Agreement, dated November 22, 2019, among the Company, the Operating Partnership, Barclays Bank PLC, as administrative agent, and the lenders party thereto (Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on November 27, 2019)
10.4	Second Amendment to Amended and Restated Credit Agreement, dated February 10, 2022, among the Company, the Operating Partnership, Wells Fargo Bank, National Association, as administrative agent, Barclays Bank PLC, as existing agent, and the lenders party thereto (Incorporated by reference to Exhibit 10.4 to the Company's Annual Report on Form 10-K filed February 16, 2022)
10.5	Third Amendment to Amended and Restated Credit Agreement, dated as of July 25, 2022, by and among the Company, the Operating Partnership, as borrower, certain subsidiaries of the Company, as subsidiary guarantors, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, as lenders (Incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on July 28, 2022)
10.6	Credit Agreement, dated as of November 26, 2019, among the Company, the Operating Partnership, the several lenders from time to time parties thereto, Capital One, National Association, as administrative agent, Suntrust Robinson Humphrey, Inc. and Mizuho Bank Ltd., as co-syndication agents, and Chemical Bank, a division of TCF National Bank, as documentation agent (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on November 27, 2019)
10.7	First Amendment to Credit Agreement, dated as of February 18, 2022, among the Company, the Operating Partnership, as borrower, certain subsidiaries of the Company, as subsidiary guarantors, the lenders party thereto, as lenders, and Capital One, National Association, as administrative agent (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on February 22, 2022)
10.8	Second Amendment to Credit Agreement, dated as of August 23, 2022, among the Company, the Operating Partnership, as borrower, certain subsidiaries of the Company, as subsidiary guarantors, the lenders party thereto, as lenders, and Capital One, National Association, as administrative agent (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 24, 2022)
10.9†	Employment Agreement, effective as of January 1, 2022, by and between Essential Properties Realty Trust, Inc. and Peter M. Mavoides (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 6, 2022)
10.10†	Essential Properties Realty Trust, Inc. 2018 Incentive Award Plan, effective as of June 19, 2018 (Incorporated by reference to Exhibit 10.18 to the Company’s Current Report on Form 8-K filed on June 26, 2018)
10.11†	Employment Agreement between Essential Properties Realty Trust, Inc. and Mark E. Patten, effective as of August 10, 2020 (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on July 7, 2020)
10.12†	Consulting Agreement, effective as of June 25, 2022, by and between Essential Properties Realty Trust, Inc. and Gregg A. Seibert (Incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on July 28, 2022)

120

Exhibit Number	Description
10.13	Form of Indemnification Agreement between Essential Properties Realty Trust, Inc. and each of its directors and executive officers (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on July 7, 2020)
16.1	Letter from Ernst & Young LLP (Incorporated by reference to Exhibit 16.1 to the Company’s Current Report on Form 8-K filed on March 30, 2021).
21.1*	Subsidiaries of the Company
22*	List of Guarantors and Subsidiary Issuers of Guaranteed Securities
23.1*	Consent of Grant Thornton LLP
23.2*	Consent of Ernst & Young LLP
24.1*	Power of Attorney (set forth on the signature page to this Annual Report on Form 10-K)
31.1*	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
104*	Cover Page Interactive Data File (embedded within the Inline XBRL document)

*	Filed herewith.
**	Furnished herewith.
†	Indicates management contract or compensatory plan.

Item 16. Form 10-K Summary

None.

121

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ESSENTIAL PROPERTIES REALTY TRUST, INC.
Date:	February 15, 2023	By:	/s/ Peter M. Mavoides
			Peter M. Mavoides
			President and Chief Executive Officer
			(Principal Executive Officer)

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below does hereby constitute and appoint Peter M. Mavoides and Mark E. Patten, and each of them singly, his or her true and lawful attorneys with full power to them, and each of them singly, to sign for each of the undersigned and in his or her name in the capacities indicated below, any and all amendments to this Annual Report on Form 10-K, and generally to do all such things in our names and in our capacities as officers and directors to enable Essential Properties Realty Trust, Inc. to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission in connection therewith.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

122

Name	Title	Date
/s/ Peter M. Mavoides	Director, President and Chief Executive Officer	February 15, 2023
Peter M. Mavoides	(Principal Executive Officer)
/s/ Mark E. Patten	Executive Vice President, Chief Financial Officer, Treasurer and Secretary	February 15, 2023
Mark E. Patten	(Principal Financial Officer)
/s/ Timothy J. Earnshaw	Senior Vice President and Chief Accounting Officer	February 15, 2023
Timothy J. Earnshaw	(Principal Accounting Officer)
/s/ Paul T. Bossidy	Director	February 15, 2023
Paul T. Bossidy
/s/ Joyce DeLucca	Director	February 15, 2023
Joyce DeLucca
/s/ Scott A. Estes	Director	February 15, 2023
Scott A. Estes
/s/ Lawrence J. Minich	Director	February 15, 2023
Lawrence J. Minich
/s/ Heather Leed Neary	Director	February 15, 2023
Heather Leed Neary
/s/ Stephen D. Sautel	Director	February 15, 2023
Stephen D. Sautel
/s/ Janaki Sivanesan	Director	February 15, 2023
Janaki Sivanesan

123

ESSENTIAL PROPERTIES REALTY TRUST, INC. AND ESSENTIAL PROPERTIES REALTY TRUST, INC. PREDECESSOR

Schedule III - Real Estate and Accumulated Depreciation

As of December 31, 2022

(Dollar amounts in thousands)

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Automotive Service
Alabama	2	$	770	$	882	$	—	$	—	$	770	$	882	$	1,652	$	(94)	1988-1991	2019-2019
Arizona	10	11,078		20,169		—		—		11,078		20,169		31,247		(1,154)		1962-2018	2020-2021
California	4	4,502		8,499		—		—		4,502		8,499		13,001		(385)		1953-1991	2021-2022
Colorado	7	6,027		11,544		—		—		6,027		11,544		17,571		(512)		1990-2008	2021-2022
Florida	3	1,862		2,642		—		523		1,862		3,165		5,027		(572)		1980-2000	2017-2017
Georgia	19	9,198		20,490		—		—		9,198		20,490		29,688		(785)		1976-2006	2017-2022
Illinois	7	3,931		8,499		—		—		3,931		8,499		12,430		(344)		1969-1999	2019-2022
Indiana	8	1,509		4,617		—		302		1,509		4,919		6,428		(171)		1957-1998	2018-2022
Kansas	7	3,009		4,366		—		—		3,009		4,366		7,375		(203)		1981-2018	2021-2021
Maryland	2	2,667		7,848		—		—		2,667		7,848		10,515		(1,187)		1952-2009	2017-2018
Michigan	9	4,420		9,153		—		—		4,420		9,153		13,573		(1,077)		1955-2014	2017-2022
Minnesota	6	4,177		7,910		180		25		4,357		7,935		12,292		(1,084)		1973-1999	2016-2021
Missouri	5	2,544		6,265		—		—		2,544		6,265		8,809		(257)		1976-2003	2021-2022
Mississippi	5	1,948		3,114		—		—		1,948		3,114		5,062		(179)		1990-1992	2021-2021
North Carolina	9	3,249		3,366		—		—		3,249		3,366		6,615		(515)		1990-2008	2018-2020
Nebraska	1	1,177		479		—		—		1,177		479		1,656		(37)		1995-1995	2021-2021
New Jersey	15	18,363		21,101		—		—		18,363		21,101		39,464		(1,749)		1947-1995	2020-2020
New Mexico	3	800		3,016		—		50		800		3,066		3,866		(110)		1989-1994	2021-2022
New York	7	3,235		6,667		—		—		3,235		6,667		9,902		(1,017)		1978-1998	2016-2020
Ohio	3	1,480		2,955		—		—		1,480		2,955		4,435		(299)		1960-2004	2018-2020
Oklahoma	20	9,013		27,923		—		—		9,013		27,923		36,936		(2,074)		1967-2019	2018-2021
Oregon	2	1,076		1,104		—		—		1,076		1,104		2,180		(39)		1984-1984	2022-2022
Pennsylvania	4	4,056		5,360		—		—		4,056		5,360		9,416		(585)		1968-2012	2017-2020
South Carolina	1	388		286		—		—		388		286		674		(36)		2007-2007	2020-2020
Tennessee	4	2,584		3,368		—		—		2,584		3,368		5,952		(394)		1990-2016	2017-2022
Texas	16	11,782		26,633		—		300		11,782		26,933		38,715		(2,872)		1971-2017	2016-2021
Virginia	1	224		734		—		—		224		734		958		(71)		2006-2006	2020-2020
Wisconsin	9	3,175		7,554		—		74		3,175		7,628		10,803		(239)		1985-1997	2021-2022
West Virginia	6	1,985		4,519		—		—		1,985		4,519		6,504		(258)		1983-2007	2020-2022
Building Materials
Alabama	2	$	2,060	$	3,640	$	—	$	—	$	2,060	$	3,640	$	5,700	$	(719)	1975-2002	2017-2017
Colorado	1	760		403		—		—		760		403		1,163		(80)		1983-1983	2017-2017
Florida	1	934		638		—		—		934		638		1,572		(126)		2003-2003	2017-2017
Georgia	2	2,338		4,165		—		—		2,338		4,165		6,503		(823)		2003-2004	2017-2017
Indiana	2	1,072		1,619		—		—		1,072		1,619		2,691		(183)		1979-1989	2020-2020
Kentucky	1	414		200		—		—		414		200		614		(40)		1984-1984	2017-2017
Michigan	3	4,438		8,425		—		—		4,438		8,425		12,863		(851)		1973-1995	2020-2020

F-1

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Ohio	6	3,011		4,573		—		—		3,011		4,573		7,584		(904)		1953-1996	2017-2017
South Carolina	1	1,097		172		—		—		1,097		172		1,269		(34)		1983-1983	2017-2017
Texas	4	5,228		3,746		—		—		5,228		3,746		8,974		(741)		1972-1985	2017-2017
Car Washes
Alabama	3	$	4,357	$	2,722	$	—	$	—	$	4,357	$	2,722	$	7,079	$	(195)	2020-2020	2020-2022
Arkansas	3	2,376		7,567		—		—		2,376		7,567		9,943		(791)		1997-2019	2017-2022
Arizona	7	11,534		16,537		—		—		11,534		16,537		28,071		(1,699)		1988-2021	2016-2020
Colorado	10	8,671		19,739		—		595		8,671		20,334		29,005		(2,258)		2002-2018	2017-2021
Florida	5	7,602		18,693		—		—		7,602		18,693		26,295		(1,013)		2017-2021	2019-2022
Georgia	18	23,675		54,420		—		775		23,675		55,195		78,870		(6,675)		1967-2020	2016-2022
Iowa	3	6,645		4,332		—		500		6,645		4,832		11,477		(438)		2020-2021	2019-2022
Illinois	1	1,674		3,227		—		—		1,674		3,227		4,901		(254)		2018-2018	2020-2020
Indiana	4	2,249		11,175		—		—		2,249		11,175		13,424		(50)		1979-2008	2022-2022
Louisiana	2	1,422		5,534		—		—		1,422		5,534		6,956		(642)		2012-2017	2017-2020
Maryland	2	1,306		4,977		—		—		1,306		4,977		6,283		(813)		1998-2016	2017-2018
Michigan	1	1,268		—		—		—		1,268		—		1,268				0-0	2022-2022
Mississippi	1	666		973		—		—		666		973		1,639		(103)		2008-2008	2020-2020
North Carolina	3	3,159		6,813		—		—		3,159		6,813		9,972		(438)		2003-2020	2019-2022
Nebraska	1	597		2,569		—		—		597		2,569		3,166		(175)		2021-2021	2019-2019
New Mexico	4	2,461		12,216		—		—		2,461		12,216		14,677		(2,124)		1982-2013	2017-2017
New York	6	3,476		15,676		—		—		3,476		15,676		19,152		(307)		1985-2022	2022-2022
Ohio	6	6,911		18,490		—		—		6,911		18,490		25,401		(795)		1990-2017	2021-2022
Oklahoma	2	2,536		2,077		—		—		2,536		2,077		4,613		(150)		2016-2016	2021-2022
South Carolina	1	793		4,031		—		—		793		4,031		4,824		(622)		2008-2008	2017-2017
South Dakota	6	5,890		14,859		—		1,225		5,890		16,084		21,974		(1,551)		1987-2017	2019-2019
Tennessee	1	832		—		—		—		832		—		832				2022-2022	2022-2022
Texas	11	16,652		29,511		—		350		16,652		29,861		46,513		(2,264)		1942-2020	2020-2022
Virginia	13	17,909		35,245		—		—		17,909		35,245		53,154		(98)		1981-2021	2022-2022
Convenience Stores
Arkansas	10	$	6,909	$	8,382	$	—	$	50	$	6,909	$	8,432	$	15,341	$	(1,772)	1979-2012	2019-2019
Arizona	1	977		827		—		—		977		827		1,804		(205)		1985-1985	2018-2018
Colorado	2	702		2,037		—		—		702		2,037		2,739		(314)		1977-1983	2017-2019
Iowa	3	1,362		2,380		—		—		1,362		2,380		3,742		(48)		1927-1996	2022-2022
Illinois	1	656		832		—		—		656		832		1,488		(148)		1999-1999	2019-2019
Indiana	1	840		838		—		—		840		838		1,678		(207)		1999-1999	2019-2019
Kentucky	11	9,442		5,630		—		—		9,442		5,630		15,072		(1,430)		1998-1999	2019-2019
Minnesota	6	4,333		7,556		14		104		4,347		7,660		12,007		(1,718)		1967-2013	2017-2018
Missouri	3	1,931		2,396		—		—		1,931		2,396		4,327		(533)		1997-2003	2019-2019
New Mexico	13	4,988		9,360		—		15		4,988		9,375		14,363		(1,893)		1966-2013	2017-2019
New York	16	5,881		20,342		—		—		5,881		20,342		26,223		(5,121)		1970-2010	2016-2016
Ohio	21	15,191		13,382		—		—		15,191		13,382		28,573		(3,223)		1996-2001	2019-2019

F-2

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Pennsylvania	1	467		383		—		—		467		383		850		(110)		1996-1996	2019-2019
Texas	5	1,708		4,621		—		741		1,708		5,362		7,070		(896)		1965-2019	2017-2019
Washington	1	568		508		—		—		568		508		1,076		(119)		1976-1976	2018-2018
Wisconsin	25	15,800		20,277		—		—		15,800		20,277		36,077		(5,679)		1970-2006	2018-2019
Early Childhood Education
Arizona	16	$	10,474	$	14,986	$	—	$	21	$	10,474	$	15,007	$	25,481	$	(1,485)	1932-2021	2018-2022
Colorado	1	742		702		—		98		742		800		1,542		(67)		1988-1988	2019-2019
Connecticut	5	3,423		7,360		—		2,404		3,423		9,764		13,187		(1,504)		1957-2018	2018-2018
Florida	9	9,662		23,545		—		—		9,662		23,545		33,207		(3,000)		1981-2016	2017-2021
Georgia	8	8,505		18,502		—		—		8,505		18,502		27,007		(2,680)		1995-2016	2016-2020
Iowa	1	636		2,199		—		—		636		2,199		2,835		(109)		2005-2005	2021-2021
Illinois	7	6,502		21,687		—		—		6,502		21,687		28,189		(1,288)		1998-2021	2019-2022
Kansas	2	2,056		4,914		—		—		2,056		4,914		6,970		(768)		2007-2017	2017-2019
Kentucky	2	716		2,500		—		—		716		2,500		3,216		(209)		2002-2003	2019-2021
Massachusetts	1	3,200		2,423		—		—		3,200		2,423		5,623		(236)		1990-1990	2020-2020
Michigan	5	1,850		5,450		—		—		1,850		5,450		7,300		(477)		1987-2012	2018-2022
Minnesota	1	740		3,081		—		—		740		3,081		3,821		(130)		2017-2017	2021-2021
Missouri	8	4,239		14,583		19		81		4,258		14,664		18,922		(381)		1986-2009	2021-2022
Mississippi	2	2,085		2,547		—		124		2,085		2,671		4,756		(488)		2002-2008	2017-2018
North Carolina	22	20,683		36,235		—		200		20,683		36,435		57,118		(1,745)		1954-2018	2019-2022
Nebraska	1	224		813		—		—		224		813		1,037		(9)		2006-2006	2022-2022
New Jersey	2	1,249		3,439		—		—		1,249		3,439		4,688		(497)		2000-2002	2018-2018
Nevada	2	2,480		3,451		—		—		2,480		3,451		5,931		(219)		1998-2006	2021-2021
Ohio	27	20,879		55,399		31		8,821		20,910		64,220		85,130		(3,639)		1956-2017	2018-2022
Oklahoma	3	1,327		3,860		—		—		1,327		3,860		5,187		(48)		0-0	2022-2022
Oregon	1	447		1,202		—		—		447		1,202		1,649		(138)		2010-2010	2019-2019
Pennsylvania	11	10,364		27,518		—		—		10,364		27,518		37,882		(4,106)		1930-2010	2018-2018
Tennessee	2	1,943		2,970		—		—		1,943		2,970		4,913		(406)		1989-1996	2019-2020
Texas	9	7,370		18,436		—		529		7,370		18,965		26,335		(1,886)		1989-2016	2017-2022
Virginia	3	4,697		7,056		—		—		4,697		7,056		11,753		(709)		2001-2006	2017-2021
Washington	6	2,711		5,720		—		—		2,711		5,720		8,431		(661)		1924-2002	2019-2019
Wisconsin	8	6,716		25,474		—		—		6,716		25,474		32,190		(1,757)		1992-2007	2020-2022
Entertainment
Alabama	2	$	5,806	$	8,631	$	—	$	—	$	5,806	$	8,631	$	14,437	$	(1,180)	2002-2017	2017-2019
Arizona	4	3,447		6,350		—		—		3,447		6,350		9,797		(19)		1954-1981	2022-2022
California	1	1,320		2,320		—		—		1,320		2,320		3,640		(444)		1977-1977	2017-2017
Connecticut	2	2,516		13,938		—		—		2,516		13,938		16,454		(597)		1960-2019	2021-2021
Florida	2	6,456		6,815		—		4,500		6,456		11,315		17,771		(1,126)		2007-2007	2017-2022
Iowa	1	2,560		6,120		—		—		2,560		6,120		8,680		(252)		0-0	2021-2021
Idaho	1	886		2,768		—		—		886		2,768		3,654		(320)		2008-2008	2019-2019
Kansas	2	5,886		21,128		—		—		5,886		21,128		27,014		(395)		2018-2020	2022-2022

F-3

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Louisiana	2	3,403		3,115		—		—		3,403		3,115		6,518		(440)		2016-2016	2018-2022
Maine	1	2,052		4,924		—		—		2,052		4,924		6,976		(215)		1989-1989	2021-2021
Michigan	1	693		4,593		—		2,362		693		6,955		7,648		(1,117)		1995-1995	2017-2017
Minnesota	9	10,291		18,695		—		—		10,291		18,695		28,986		(2,676)		1950-2009	2018-2018
Missouri	5	20,925		13,731		—		—		20,925		13,731		34,656		(895)		1990-2016	2022-2022
North Carolina	3	11,099		21,176		—		—		11,099		21,176		32,275		(2,307)		1988-1996	2019-2022
Oklahoma	1	3,073		9,673		—		—		3,073		9,673		12,746		(195)		2020-2020	2022-2022
Pennsylvania	1	823		2,028		—		—		823		2,028		2,851		(298)		2016-2016	2019-2019
Tennessee	2	18,026		1,873		—		—		18,026		1,873		19,899		(231)		1940-2013	2022-2022
Texas	5	12,915		31,873		—		—		12,915		31,873		44,788		(356)		1981-2020	2022-2022
Equipment Rental and Sales
Alabama	2	$	2,689	$	1,280	$	12	$	847	$	2,701	$	2,127	$	4,828	$	(208)	2003-2008	2020-2021
Arkansas	1	1,246		429		246		609		1,492		1,038		2,530		(110)		1982-1982	2019-2019
Colorado	2	5,924		2,973		5		1,021		5,929		3,994		9,923		(523)		1990-2021	2020-2022
Connecticut	3	2,703		1,410		—		—		2,703		1,410		4,113		(103)		2002-2005	2020-2021
Florida	6	15,247		10,731		(1,660)		4,334		13,587		15,065		28,652		(701)		1964-1979	2019-2021
Georgia	2	4,087		4,857		236		2,138		4,323		6,995		11,318		(676)		1999-2019	2019-2020
Louisiana	1	1,006		227		16		1,164		1,022		1,391		2,413		(152)		2012-2012	2020-2020
Massachusetts	2	1,756		2,904		—		—		1,756		2,904		4,660		(223)		1971-2012	2020-2020
Maryland	1	2,647		973		—		975		2,647		1,948		4,595		(93)		1994-1994	2022-2022
Michigan	1	1,113		6,436		—		825		1,113		7,261		8,374		(1,061)		1987-1987	2017-2017
Missouri	5	5,538		6,703		21		1,536		5,559		8,239		13,798		(520)		1995-2015	2019-2022
North Dakota	1	851		1,567		—		330		851		1,897		2,748		(25)		0-0	2022-2022
New Hampshire	4	4,859		1,193		—		982		4,859		2,175		7,034		(125)		1978-1986	2020-2022
New Mexico	1	1,686		286		25		1,862		1,711		2,148		3,859		(200)		1970-1970	2020-2020
New York	6	6,533		4,083		—		—		6,533		4,083		10,616		(393)		1965-2021	2020-2021
Ohio	1	1,303		2,194		—		—		1,303		2,194		3,497		(134)		1996-1996	2021-2021
Oklahoma	2	2,177		2,257		—		—		2,177		2,257		4,434		(123)		1997-2003	2021-2022
Pennsylvania	1	751		1,678		—		—		751		1,678		2,429		(211)		1987-1987	2020-2020
Tennessee	2	3,519		3,713		816		1,734		4,335		5,447		9,782		(371)		1985-2018	2019-2022
Texas	10	10,347		14,206		—		1,386		10,347		15,592		25,939		(473)		1970-2020	2020-2022
Utah	1	1,731		2,196		—		1,346		1,731		3,542		5,273		(339)		1979-1979	2019-2019
Vermont	1	1,809		—		—		—		1,809		—		1,809				1995-1995	2022-2022
Washington	1	2,412		1,724		492		1,563		2,904		3,287		6,191		(281)		1959-1959	2019-2019
Grocery
Arkansas	6	$	5,704	$	12,942	$	—	$	1,425	$	5,704	$	14,367	$	20,071	$	(1,007)	1986-2020	2020-2021
Michigan	1	1,224		6,189		—		—		1,224		6,189		7,413		(341)		1969-1969	2021-2021
Missouri	10	5,661		16,938		—		—		5,661		16,938		22,599		(1,511)		1970-2013	2020-2021
North Carolina	1	762		1,300		—		—		762		1,300		2,062		(219)		1992-1992	2018-2018
Oklahoma	3	1,628		8,726		—		—		1,628		8,726		10,354		(853)		1987-1993	2019-2020
Wisconsin	7	17,626		67,253		—		—		17,626		67,253		84,879		(2,584)		1987-2017	2021-2022

F-4

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Health and Fitness
Alabama	1	$	1,102	$	2,412	$	—	$	—	$	1,102	$	2,412	$	3,514	$	(431)	2007-2007	2017-2017
Arizona	1	4,367		4,264		—		—		4,367		4,264		8,631		(355)		2021-2021	2018-2018
Colorado	1	1,484		4,491		—		—		1,484		4,491		5,975		(695)		1989-1989	2017-2017
Florida	2	5,291		5,975		—		2,572		5,291		8,547		13,838		(463)		1983-2000	2019-2021
Georgia	1	2,174		2,541		—		—		2,174		2,541		4,715		(497)		2005-2005	2017-2017
Illinois	1	1,133		2,226		—		2,150		1,133		4,376		5,509		(419)		1986-1986	2019-2019
Kentucky	1	868		2,186		—		—		868		2,186		3,054		(367)		1994-1994	2017-2017
Massachusetts	3	10,541		29,129		282		1,380		10,823		30,509		41,332		(3,525)		2004-2009	2018-2018
North Carolina	1	912		883		761		1,875		1,673		2,758		4,431		(151)		1972-1972	2018-2018
New Mexico	1	938		1,503		—		—		938		1,503		2,441		(290)		2016-2016	2017-2017
Nevada	1	491		2,543		—		—		491		2,543		3,034		(281)		1970-1970	2019-2019
Oklahoma	3	4,536		9,065		—		559		4,536		9,624		14,160		(938)		1979-2018	2018-2022
Oregon	2	3,070		5,104		—		350		3,070		5,454		8,524		(813)		1980-1999	2018-2018
South Carolina	5	4,516		9,463		—		330		4,516		9,793		14,309		(1,242)		1993-2010	2018-2019
Texas	4	8,467		7,707		—		144		8,467		7,851		16,318		(454)		1974-2005	2019-2022
Utah	1	1,937		4,209		—		—		1,937		4,209		6,146		(724)		1984-1984	2016-2016
Home Furnishings
Michigan	2	$	3,369	$	24,523	$	69	$	2,969	$	3,438	$	27,492	$	30,930	$	(4,417)	1987-1992	2017-2017
Missouri	1	273		4,683		—		—		273		4,683		4,956		(512)		2007-2007	2018-2018
Texas	1	2,224		4,779		—		—		2,224		4,779		7,003		(830)		2006-2006	2016-2016
Industrial
Florida	1	$	1,167	$	1,481	$	—	$	—	$	1,167	$	1,481	$	2,648	$	(5)	1974-1974	2022-2022
Illinois	2	3,958		1,744		—		—		3,958		1,744		5,702		(24)		1951-1987	2022-2022
Indiana	5	1,789		6,261		—		—		1,789		6,261		8,050		(19)		2000-2022	2022-2022
Louisiana	1	490		761		—		1,783		490		2,544		3,034		(11)		0-0	2022-2022
Mississippi	1	2,198		3,351		—		—		2,198		3,351		5,549		(96)		0-0	2022-2022
North Carolina	1	909		746		—		—		909		746		1,655		(51)		0-0	2022-2022
Ohio	1	902		2,330		—		—		902		2,330		3,232		(8)		0-0	2022-2022
Pennsylvania	1	678		2,922		—		—		678		2,922		3,600		(76)		1989-1989	2022-2022
South Dakota	1	1,250		2,950		—		—		1,250		2,950		4,200		(105)		1992-1992	2021-2021
Tennessee	2	861		2,139		—		—		861		2,139		3,000		(5)		1997-2008	2022-2022
Texas	1	5,350		6,679		—		—		5,350		6,679		12,029		(527)		2008-2008	2021-2021
Virginia	1	679		3,839		—		—		679		3,839		4,518		(159)		1964-1964	2021-2021
Medical / Dental
Alabama	5	$	1,623	$	7,508	$	—	$	—	$	1,623	$	7,508	$	9,131	$	(1,047)	1990-2012	2016-2019
Arkansas	16	4,013		12,692		—		497		4,013		13,189		17,202		(1,539)		1950-2017	2018-2021
Arizona	2	1,770		2,635		—		1,913		1,770		4,548		6,318		(292)		1967-1980	2016-2020
California	6	4,449		7,699		—		—		4,449		7,699		12,148		(497)		1989-2007	2021-2021

F-5

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Connecticut	2	1,889		1,675		—		—		1,889		1,675		3,564		(156)		1840-2009	2021-2021
Florida	9	6,872		24,624		—		—		6,872		24,624		31,496		(2,096)		1934-2019	2016-2021
Georgia	6	2,218		8,357		—		—		2,218		8,357		10,575		(771)		1960-2004	2016-2020
Iowa	3	1,252		2,085		—		—		1,252		2,085		3,337		(16)		1963-1990	2022-2022
Illinois	10	3,451		11,154		—		—		3,451		11,154		14,605		(949)		1967-2008	2016-2021
Indiana	5	5,985		7,951		—		—		5,985		7,951		13,936		(946)		1976-2021	2016-2019
Kentucky	1	199		474		—		—		199		474		673		(95)		2000-2000	2017-2017
Massachusetts	4	853		2,784		—		—		853		2,784		3,637		(245)		1850-2005	2016-2020
Michigan	4	2,401		9,443		—		—		2,401		9,443		11,844		(380)		2007-2007	2019-2021
Missouri	11	3,543		9,169		—		775		3,543		9,944		13,487		(652)		1979-2015	2016-2022
Mississippi	4	1,302		13,437		—		—		1,302		13,437		14,739		(1,078)		1970-2006	2016-2021
North Carolina	7	2,527		6,920		—		—		2,527		6,920		9,447		(369)		1996-2019	2021-2021
New Hampshire	6	4,729		17,340		—		—		4,729		17,340		22,069		(249)		1890-1984	2016-2022
New York	3	516		1,613		—		—		516		1,613		2,129		(276)		1940-1986	2016-2017
Ohio	17	6,874		21,981		—		—		6,874		21,981		28,855		(1,746)		1907-2017	2017-2021
Oklahoma	7	1,472		6,767		—		—		1,472		6,767		8,239		(335)		1964-2018	2021-2022
Oregon	1	1,457		1,230		—		—		1,457		1,230		2,687		(132)		1981-1981	2020-2020
Pennsylvania	2	505		3,641		—		—		505		3,641		4,146		(106)		0-0	2022-2022
South Carolina	7	4,836		10,564		—		—		4,836		10,564		15,400		(839)		1936-1998	2016-2021
Texas	50	32,046		112,053		—		1,577		32,046		113,630		145,676		(11,584)		1940-2019	2016-2022
Virginia	2	1,493		2,800		—		—		1,493		2,800		4,293		(172)		2001-2009	2021-2021
Vermont	1	357		916		—		—		357		916		1,273		(38)		0-0	2021-2021
Washington	1	627		868		—		—		627		868		1,495		(100)		1981-1981	2021-2021
Wyoming	1	620		2,550		—		—		620		2,550		3,170		(452)		2001-2001	2017-2017
Movie Theatres
Alabama	2	$	3,011	$	10,643	$	161	$	—	$	3,172	$	10,643	$	13,815	$	(1,970)	2001-2013	2016-2018
North Carolina	1	1,826		2,798		—		—		1,826		2,798		4,624		(473)		2004-2004	2018-2018
Ohio	1	2,126		10,097		—		—		2,126		10,097		12,223		(1,454)		1989-1989	2017-2017
South Carolina	1	1,465		7,081		—		—		1,465		7,081		8,546		(1,108)		2006-2006	2017-2017
Wisconsin	1	3,159		3,755		130		—		3,289		3,755		7,044		(791)		1997-1997	2017-2017
Other Services
Alabama	1	$	312	$	176	$	—	$	—	$	312	$	176	$	488	$	(65)	1978-1978	2016-2016
Colorado	1	370		434		—		—		370		434		804		(104)		2002-2002	2016-2016
Florida	1	1,187		3,344		—		—		1,187		3,344		4,531		(205)		1960-1960	2020-2020
Georgia	2	1,552		4,919		—		—		1,552		4,919		6,471		(746)		1895-1991	2018-2018
Kentucky	2	1,503		4,613		—		—		1,503		4,613		6,116		(396)		1882-1999	2018-2022
North Carolina	1	713		1,942		—		—		713		1,942		2,655		(321)		1973-1973	2018-2018
Oklahoma	1	2,257		2,073		—		—		2,257		2,073		4,330		(152)		2006-2006	2021-2021
South Carolina	4	2,175		4,406		—		—		2,175		4,406		6,581		(48)		1937-2006	2016-2022
Tennessee	14	10,757		19,485		—		—		10,757		19,485		30,242		(1,629)		1870-2010	2016-2022
Texas	6	15,090		17,940		729		—		15,819		17,940		33,759		(1,009)		2006-2021	2021-2022

F-6

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Virginia	1	1,259		1,786		—		—		1,259		1,786		3,045		(321)		1991-1991	2018-2018
Pet Care Services
Alabama	1	$	1,138			$	—	$	—	$	1,138	$	—	$	1,138			2019-2019	2021-2021
Arkansas	2	1,422		2,110		—		—		1,422		2,110		3,532		(350)		1979-1996	2017-2019
Arizona	5	6,862		10,616		(1,845)		(469)		5,017		10,147		15,164		(1,638)		1990-2015	2018-2018
Florida	5	5,578		7,102		—		—		5,578		7,102		12,680		(1,203)		2003-2021	2018-2021
Georgia	5	3,335		3,367		—		—		3,335		3,367		6,702		(234)		1950-2007	2019-2021
Illinois	4	2,352		2,928		—		—		2,352		2,928		5,280		(344)		1976-1995	2019-2021
Indiana	6	1,676		5,148		—		—		1,676		5,148		6,824		(715)		1952-2007	2017-2019
Louisiana	1	485		701		—		—		485		701		1,186		(101)		2007-2007	2019-2019
Maryland	1	586		1,881		16		34		602		1,915		2,517		(143)		1988-1988	2020-2020
Missouri	1	537		752		—		—		537		752		1,289		(100)		1986-1986	2019-2019
North Carolina	5	2,347		8,786		—		—		2,347		8,786		11,133		(399)		1970-2014	2019-2021
Nebraska	1	381		332		—		—		381		332		713		(80)		1967-1967	2019-2019
Oklahoma	1	225		283		—		—		225		283		508		(68)		1993-1993	2019-2019
Oregon	1	192		324		—		—		192		324		516		(35)		1990-1990	2019-2019
South Carolina	2	885		1,660		—		—		885		1,660		2,545		(163)		1994-2018	2019-2021
Texas	3	2,204		3,702		—		—		2,204		3,702		5,906		(138)		2019-2019	2021-2021
Wisconsin	1	403		598		—		—		403		598		1,001		(75)		2011-2011	2019-2019
Restaurants - Casual Dining
Alabama	5	$	2,954	$	7,305	$	—	$	—	$	2,954	$	7,305	$	10,259	$	(1,414)	1977-2007	2016-2017
Colorado	1	1,593		3,400		—		—		1,593		3,400		4,993		(618)		1993-1993	2016-2016
Florida	9	6,317		12,222		55		59		6,372		12,281		18,653		(2,687)		1988-2003	2016-2017
Georgia	5	4,785		6,048		—		600		4,785		6,648		11,433		(1,388)		1982-1999	2016-2017
Iowa	6	2,812		9,572		—		—		2,812		9,572		12,384		(606)		1950-2005	2018-2022
Illinois	2	668		2,051		—		—		668		2,051		2,719		(267)		1991-1993	2018-2019
Indiana	1	1,542		—		—		—		1,542		—		1,542				1999-1999	2020-2020
Kansas	2	3,045		1,382		—		—		3,045		1,382		4,427		(82)		2005-2005	2021-2022
Kentucky	3	1,798		3,643		—		—		1,798		3,643		5,441		(210)		2001-2010	2019-2022
Louisiana	3	2,156		3,330		—		—		2,156		3,330		5,486		(705)		1988-1994	2016-2017
Massachusetts	10	12,982		14,943		—		—		12,982		14,943		27,925		(901)		1985-2008	2021-2021
Maryland	2	2,344		1,975		—		—		2,344		1,975		4,319		(449)		2004-2005	2017-2017
Michigan	12	7,181		16,134		—		—		7,181		16,134		23,315		(1,728)		1906-2003	2019-2022
Minnesota	2	7,921		14,090		—		—		7,921		14,090		22,011		(176)		1905-1947	2022-2022
Missouri	4	7,857		11,419		—		—		7,857		11,419		19,276		(284)		2001-2021	2017-2021
Mississippi	1	926		624		—		—		926		624		1,550		(132)		2004-2004	2017-2017
Nebraska	1	261		687		—		—		261		687		948		(185)		1979-1979	2016-2016
New Hampshire	1	1,978		2,127		—		—		1,978		2,127		4,105		(90)		1974-1974	2021-2021
New Jersey	8	9,625		28,327		—		—		9,625		28,327		37,952		(224)		1941-2005	2022-2022
Ohio	3	4,653		7,984		—		—		4,653		7,984		12,637		(491)		1988-2004	2019-2021
Pennsylvania	3	3,375		6,706		—		—		3,375		6,706		10,081		(73)		1880-2003	2022-2022

F-7

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Rhode Island	1	830		1,171		—		—		830		1,171		2,001		(71)		1996-1996	2021-2021
South Carolina	1	447		292		—		29		447		321		768		(94)		2003-2003	2017-2017
South Dakota	1	1,922		2,475		—		—		1,922		2,475		4,397		(107)		0-0	2021-2021
Tennessee	1	683		737		—		—		683		737		1,420		(135)		2003-2003	2017-2017
Texas	4	6,663		4,639		—		—		6,663		4,639		11,302		(408)		1999-2018	2016-2022
Virginia	1	1,136		1,991		—		—		1,136		1,991		3,127		(226)		2005-2005	2019-2019
West Virginia	2	953		3,180		—		—		953		3,180		4,133		(91)		1997-2006	2022-2022
Restaurants - Family Dining
Florida	1	$	467	$	421	$	—	$	150	$	467	$	571	$	1,038	$	(307)	1997-1997	2016-2016
Georgia	7	3,229		4,132		—		330		3,229		4,462		7,691		(774)		1968-1996	2017-2018
Iowa	1	804		563		—		—		804		563		1,367		(148)		1994-1994	2016-2016
Illinois	2	1,372		1,206		—		750		1,372		1,956		3,328		(330)		1978-1979	2016-2016
Michigan	3	2,148		2,847		—		—		2,148		2,847		4,995		(322)		1973-2000	2019-2019
Minnesota	4	2,433		2,451		—		—		2,433		2,451		4,884		(674)		1975-1991	2016-2016
Missouri	2	1,038		1,153		—		—		1,038		1,153		2,191		(300)		1978-1979	2016-2016
New Hampshire	1	131		232		—		—		131		232		363		(364)		1998-1998	2016-2016
Pennsylvania	1	784		756		6		61		790		817		1,607		(192)		1995-1995	2017-2017
South Carolina	2	1,930		2,111		—		—		1,930		2,111		4,041		(226)		1978-2008	2020-2020
Texas	1	207		424		—		—		207		424		631		(613)		1998-1998	2016-2016
Virginia	1	90		192		—		—		90		192		282		(282)		1997-1997	2016-2016
Washington	2	1,787		3,861		—		—		1,787		3,861		5,648		(489)		1982-1999	2019-2019
Wisconsin	2	1,967		2,955		—		—		1,967		2,955		4,922		(482)		1976-2018	2016-2019
Wyoming	1	739		1,569		—		—		739		1,569		2,308		(169)		1982-1982	2019-2019
Restaurants - Quick Service
Alaska	2	$	1,115	$	3,157	$	5	$	527	$	1,120	$	3,684	$	4,804	$	(502)	1972-2006	2018-2018
Alabama	26	6,787		14,555		—		83		6,787		14,638		21,425		(2,577)		1972-2020	2016-2021
Arkansas	13	7,361		12,008		—		15		7,361		12,023		19,384		(1,618)		1977-2019	2016-2019
California	1	467		533		—		—		467		533		1,000		(129)		1993-1993	2016-2016
Colorado	1	698		1,036		—		—		698		1,036		1,734		(167)		1999-1999	2018-2018
Connecticut	1	155		208		—		—		155		208		363		(101)		1983-1983	2016-2016
Florida	17	10,895		20,435		—		—		10,895		20,435		31,330		(1,466)		1960-2018	2016-2022
Georgia	40	16,191		26,477		—		414		16,191		26,891		43,082		(4,684)		1975-2013	2016-2021
Iowa	8	2,715		7,326		—		—		2,715		7,326		10,041		(1,439)		1969-2004	2016-2019
Illinois	4	2,062		2,892		—		1,100		2,062		3,992		6,054		(410)		1988-2020	2016-2021
Indiana	5	1,873		3,673		—		924		1,873		4,597		6,470		(506)		1987-2018	2019-2020
Kansas	1	194		777		—		—		194		777		971		(134)		1971-1971	2017-2017
Kentucky	13	5,705		9,351		—		402		5,705		9,753		15,458		(1,060)		1969-2020	2016-2022
Louisiana	3	955		3,164		—		—		955		3,164		4,119		(423)		1983-2016	2019-2019
Massachusetts	9	5,251		5,131		—		—		5,251		5,131		10,382		(606)		1965-1987	2020-2020
Maryland	1	338		624		—		—		338		624		962		(77)		2002-2002	2019-2019
Michigan	12	3,797		8,116		—		—		3,797		8,116		11,913		(1,661)		1969-2015	2016-2018

F-8

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Minnesota	3	2,605		4,416		—		—		2,605		4,416		7,021		(1,014)		1989-1996	2017-2019
Missouri	1	195		802		—		—		195		802		997		(164)		1987-1987	2016-2016
Mississippi	27	11,212		15,911		—		390		11,212		16,301		27,513		(2,134)		1968-2020	2016-2021
Montana	1	782		—		—		—		782		—		782				2022-2022	2022-2022
North Carolina	2	1,269		1,431		(171)		268		1,098		1,699		2,797		(85)		1986-2022	2016-2021
Nebraska	2	667		2,048		—		—		667		2,048		2,715		(454)		1998-2014	2016-2016
New Hampshire	1	409		355		—		—		409		355		764		(99)		1993-1993	2016-2016
New York	3	3,765		3,405		—		400		3,765		3,805		7,570		(895)		1968-2000	2016-2019
Ohio	9	3,661		10,582		—		—		3,661		10,582		14,243		(785)		1964-1993	2016-2022
Oklahoma	8	5,266		7,550		—		—		5,266		7,550		12,816		(559)		1979-2018	2020-2021
Oregon	1	252		131		—		—		252		131		383		(42)		2015-2015	2016-2016
Pennsylvania	4	2,247		2,790		—		—		2,247		2,790		5,037		(536)		1963-2020	2016-2020
South Carolina	4	850		2,291		—		30		850		2,321		3,171		(422)		1977-2014	2016-2020
South Dakota	1	70		259		—		—		70		259		329		(34)		1984-1984	2019-2019
Tennessee	19	11,681		15,414		—		354		11,681		15,768		27,449		(2,324)		1974-2020	2016-2020
Texas	35	27,554		25,565		—		1,501		27,554		27,066		54,620		(2,814)		1970-2021	2016-2021
Wisconsin	2	1,197		2,462		—		35		1,197		2,497		3,694		(568)		1983-1998	2016-2017
West Virginia	6	1,293		3,137		—		—		1,293		3,137		4,430		(682)		1976-1994	2016-2016
Vacant Properties
Iowa	1	$	57	$	479	$	—	$	—	$	57	$	479	$	536	$	(65)	1950-1950	2018-2018
Texas	1	119		540		—		34		119		574		693		(115)		1984-1984	2019-2019
Grand Total	1490	$	1,228,036	$	2,364,891	$	651	$	75,739	$	1,228,687	$	2,440,630	$	3,669,317	$	(238,022)

F-9

(a)As of December 31, 2022, the Company had investments in 1,653 single-tenant real estate property locations including 1,489 owned properties, 11 ground lease interests and 153 properties securing mortgage notes receivable. Five of the Company’s owned properties are subject to leases accounted for as direct financing leases and are excluded from the table above. Additionally, the table above excludes three owned properties which are accounted for as loans receivable, as the leases contain purchase options, and four owned properties which are held for sale as of December 31, 2022. Initial costs exclude intangible lease assets totaling $77.1 million.

(b)Amounts shown as reductions to cost capitalized subsequent to acquisition represent provisions recorded for impairment of real estate or partial land dispositions.

(c)The aggregate cost for federal income tax purposes is $3.5 billion.

(d)The following is a reconciliation of carrying value for land and improvements and building and improvements for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Balance, beginning of period	$	3,040,073	$	2,260,919	$	1,812,961
Additions
Acquisitions	751,610		831,795		527,482
Improvements	27,609		9,459		28,889
Deductions
Provisions for impairment of real estate	(20,164)		(6,120)		(8,399)
Real estate investments held for sale	(4,780)		(15,434)		(17,058)
Cost of real estate sold	(123,081)		(40,546)		(82,956)
Other	(1,949)		—		—
Balance, end of period	$	3,669,317	$	3,040,073	$	2,260,919

(e)The following is a reconciliation of accumulated depreciation for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Balance, beginning of period	$	169,126	$	112,144	$	71,445
Additions
Depreciation expense	80,647		61,172		51,736
Deductions
Accumulated depreciation associated with real estate sold	(11,751)		(4,190)		(11,037)
Balance, end of period	$	238,022	$	169,126	$	112,144

(f)Depreciation is calculated using the straight-line method over the estimated useful lives of the properties, which is up to 40 years for buildings and improvements and 15 years for land improvements.

See accompanying report of independent registered public accounting firm.

F-10

ESSENTIAL PROPERTIES REALTY TRUST, INC. AND ESSENTIAL PROPERTIES REALTY TRUST, INC. PREDECESSOR

Schedule IV - Mortgage Loans on Real Estate

As of December 31, 2022

(Dollar amounts in thousands)

Description	Interest Rate	Final Maturity Date	Periodic Payment Terms	Final Payment Terms	Prior Liens	Face Amount of Mortgages		Carrying Amount of Mortgages		Principal Amount of Loans Subject to Delinquent Principal or Interest
First mortgage loans:
Two Early Childhood Education Centers located in Florida	8.80%	5/8/2039	Interest only	Balloon - $12,000	None	$	12,000	$	11,884	None
Two Early Childhood Education Centers located in Florida	8.53%	7/15/2039	Interest only	Balloon - $7,300	None	7,300		7,226		None
Sixty-nine Quick Service Restaurants located in fifteen states	7.79%	8/31/2034	Interest only	Balloon - $51,000	None	51,000		50,995		None
One Early Childhood Education Center located in Florida	8.42%	2/29/2040	Interest only	Balloon - $5,300	None	5,300		5,251		None
Three Convenience Stores located in Minnesota	8.54%	12/31/2024	Interest only	Balloon - $2,324	None	2,324		2,317		None
One Family Dining Restaurant located in Georgia	7.00%	1/25/2023	Interest only	Balloon - $600	None	600		596		None
Three Convenience Stores located in three states	8.30%	5/11/2023	Interest only	Balloon - $3,146	None	3,146		3,063		None
Two Casual Dining Restaurants located in Kentucky and Ohio	6.87%	5/31/2036	Interest only	Balloon - $2,520	None	2,520		2,520		None
Three Casual Dining Restaurants located in three states	7.51%	5/31/2036	Interest only	Balloon - $2,673	None	2,673		2,657		None
Two Convenience Stores located in Iowa	8.29%	6/1/2023	Interest only	Balloon - $2,389	None	2,389		2,323		None
One Entertainment Center located in New Jersey	8.96%	9/30/2051	Principal + Interest	Fully amortizing	None	24,100		24,090		None
Two Industrial facilities located in California	7.44%	11/4/2036	Interest only	Balloon - $9,808	None	9,808		9,785		None
Five Car Washes located in Nevada	7.30%	12/31/2036	Interest only	Balloon - $25,714	None	25,714		25,711		None
One Car Wash located in Florida	7.73%	12/29/2036	Interest only	Balloon - $2,470	None	2,470		2,464		None
One Casual Dining Restaurant located in Michigan	8.00%	7/10/2023	Interest only	Balloon - $1,754	None	1,754		1,710		None
Thirty-seven Quick Service Restaurants located in three states	7.00%	2/28/2027	Interest only	Balloon - $26,307	None	26,307		26,185		None
One Car Wash located in New Jersey	7.73%	3/31/2037	Interest only	Balloon - $3,600	None	3,600		3,592		None
One Convenience Store located in Minnesota	8.30%	4/22/2024	Interest only	Balloon - $760	None	760		740		None
One Car Wash located in Nevada	7.33%	12/31/2036	Interest only	Balloon - $4,960	None	4,960		4,948		None
One Car Wash located in Nevada	7.43%	12/31/2036	Interest only	Balloon - $4,800	None	4,800		4,789		None
Four Car Washes located in three states	8.64%	12/31/2037	Interest only	Balloon - $12,250	None	12,250		12,246		None
Ten Car Washes located in five states	8.93%	12/31/2037	Interest only	Balloon - $28,938	None	28,938		28,886		None
						$	234,713	$	233,978

F-11

The following table shows changes in carrying amounts of mortgage loans receivable during the years ended December 31, 2022, 2021 and 2020 (in thousands):

	Year ended December 31,
	2022		2021		2020
Balance, beginning of period	$	181,419	$	144,048	$	87,029
Additions:
New mortgage loans	126,784		137,356		54,484
Subsequent funding on existing mortgage loans	17,236		—		3,500
Deductions:
Collections of principal	(91,488)		(100,179)		(11)
Provision for credit losses	27		194		(954)
Balance, end of period	$	233,978	$	181,419	$	144,048

See accompanying report of independent registered public accounting firm.

F-12

EX-21.1

Exhibit 21.1

List of Subsidiaries

Name of Subsidiary	State of Incorporation
Essential Properties, L.P.	Delaware
Essential Properties OP G.P., LLC	Delaware
SCF TRS LLC	Delaware
SCFRC-HW LLC	Delaware
SCFRC-HW-V LLC	Delaware
SCFRC-HW-G LLC	Delaware
SCF RC Funding I LLC	Delaware
SCF RC Funding II LLC	Delaware
SCF RC Funding III LLC	Delaware
SCF RC Funding IV LLC	Delaware
SCF Realty Capital Trust LLC	Delaware
SCF Realty IFH LLC	Delaware
SCF Realty Funding LLC	Delaware
SCF Realty Servicing Company LLC	Delaware
SCFRC-HW-528 South Broadway-Salem LLC	Delaware
SCF RC Funding Canal LLC	Delaware
LB Funding I LLC	Delaware

EX-22

Exhibit 22

List of Guarantors and Subsidiary Issuers of Guaranteed Securities

As of December 31, 2022, Essential Properties Realty Trust, Inc., a Maryland corporation, is the guarantor of the following outstanding guaranteed debt securities issued by its subsidiary Essential Properties, L.P., a Delaware limited partnership:

2.950% Senior Notes due 2031

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We have issued our reports dated February 15, 2023, with respect to the consolidated financial statements and internal control over financial reporting included in the Annual Report of Essential Properties Realty Trust, Inc. on Form 10-K for the year ended December 31, 2022. We consent to the incorporation by reference of said reports in the Registration Statements of Essential Properties Realty Trust, Inc. on Forms S-3 (File No. 333-232490 and File No. 333-257202) and on Form S-8 (File No. 333-225837).

/s/ GRANT THORNTON LLP

Jacksonville, Florida

February 15, 2023

EX-23.2

Exhibit 23.2

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-3 No. 333-232490) of Essential Properties Realty Trust, Inc.,

(2) Registration Statement (Form S-3 No. 333-257202) of Essential Properties Realty Trust, Inc., and

(3) Registration Statement (Form S-8 No. 333-225837) pertaining to the 2018 Incentive Plan of Essential Properties Realty Trust, Inc.;

of our report dated February 23, 2021, with respect to the consolidated financial statements and schedules of Essential Properties Realty Trust, Inc. included in this Annual Report (Form 10-K) of Essential Properties Realty Trust, Inc. for the year ended December 31, 2022.

/s/ Ernst & Young LLP

New York, New York

February 15, 2023

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Peter M. Mavoides, certify that:

(1)I have reviewed this Annual Report on Form 10-K of Essential Properties Realty Trust, Inc.;

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5)The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	February 15, 2023	By:	/s/ Peter M. Mavoides
			Peter M. Mavoides
			President and Chief Executive Officer
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mark E. Patten, certify that:

(1)I have reviewed this Annual Report on Form 10-K of Essential Properties Realty Trust, Inc.;

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5)The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	February 15, 2023	By:	/s/ Mark E. Patten
			Mark E. Patten
			Executive Vice President, Treasurer and Chief Financial Officer
			(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Essential Properties Realty Trust, Inc. (the “Company”) for the year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Peter M. Mavoides, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for the purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date:	February 15, 2023	By:	/s/ Peter M. Mavoides
			Peter M. Mavoides
			President and Chief Executive Officer
			(Principal Executive Officer)

The foregoing certification is being furnished with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Essential Properties Realty Trust, Inc. (the “Company”) for the year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark E. Patten, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for the purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date:	February 15, 2023	By:	/s/ Mark E. Patten
			Mark E. Patten
			Executive Vice President, Treasurer and Chief Financial Officer
			(Principal Financial Officer)

The foregoing certification is being furnished with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2022	Feb. 15, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-38530
Entity Registrant Name	Essential Properties Realty Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	82-4005693
Entity Address, Address Line One	902 Carnegie Center Blvd.
Entity Address, Address Line Two	Suite 520
Entity Address, City or Town	Princeton
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08540
City Area Code	609
Local Phone Number	436-0619
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	EPRT
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 2.8
Entity Common Stock, Shares Outstanding (in shares)		144,350,885
Documents Incorporated by Reference	Portions the Definitive Proxy Statement for the registrant's 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. The registrant expects to file such proxy statement within 120 days after the end of its fiscal year.
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001728951

XML

Audit Information	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Auditor Information [Abstract]
Auditor Firm ID	248	248	42
Auditor Name	GRANT THORNTON LLP	GRANT THORNTON LLP	Ernst & Young LLP
Auditor Location	Jacksonville, Florida	Jacksonville, Florida	New York, New York

XML

Consolidated Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Real estate investments, at cost:
Land and improvements		$ 1,228,687	$ 1,004,154
Building and improvements		2,440,630	2,035,919
Lease incentives		18,352	13,950
Construction in progress		34,537	8,858
Intangible lease assets		88,364	87,959
Total real estate investments, at cost		3,810,570	3,150,840
Less: accumulated depreciation and amortization		(276,307)	(200,152)
Total real estate investments, net		3,534,263	2,950,688
Loans and direct financing lease receivables, net		240,035	189,287
Real estate investments held for sale, net		4,780	15,434
Net investments		3,779,078	3,155,409
Cash and cash equivalents		62,345	59,758
Restricted cash		9,155	0
Straight-line rent receivable, net		78,587	57,990
Derivative assets		47,877	0
Rent receivables, prepaid expenses and other assets, net		22,991	25,638
Total assets	[1]	4,000,033	3,298,795
LIABILITIES AND EQUITY
Unsecured term loans, net of deferred financing costs		1,025,492	626,983
Senior unsecured notes, net		395,286	394,723
Revolving credit facility		0	144,000
Intangible lease liabilities, net		11,551	12,693
Dividend payable		39,398	32,610
Derivative liabilities		2,274	11,838
Accrued liabilities and other payables		29,261	32,145
Total liabilities	[1]	1,503,262	1,254,992
Commitments and contingencies (see Note 11)		0	0
Stockholders' equity:
Preferred stock, $0.01 par value; 150,000,000 authorized; none issued and outstanding as of December 31, 2022 and 2021		0	0
Common stock, $0.01 par value; 500,000,000 authorized; 142,379,655 and 124,649,053 issued and outstanding as of December 31, 2022 and 2021, respectively		1,424	1,246
Additional paid-in capital		2,563,305	2,151,088
Distributions in excess of cumulative earnings		(117,187)	(100,982)
Accumulated other comprehensive income (loss)		40,719	(14,786)
Total stockholders' equity		2,488,261	2,036,566
Non-controlling interests		8,510	7,237
Total equity		2,496,771	2,043,803
Total liabilities and equity		$ 4,000,033	$ 3,298,795

[1] The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2—Summary of Significant Accounting Policies. As of December 31, 2022 and 2021, all of the assets and liabilities of the Company were held by its operating partnership, a consolidated VIE, with the exception of $39.2 million and $32.5 million, respectively, of dividends payable.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Preferred shares, par value per share (in USD per share)	$ 0.01	$ 0.01
Preferred shares, authorized shares (in shares)	150,000,000	150,000,000
Preferred shares, issued shares (in shares)	0	0
Preferred shares, outstanding shares (in shares)	0	0
Common shares, par value per share (in USD per share)	$ 0.01	$ 0.01
Common shares, authorized shares (in shares)	500,000,000	500,000,000
Common shares, issued shares (in shares)	142,379,655	124,649,053
Common shares, outstanding shares (in shares)	142,379,655	124,649,053
Dividend payable	$ 39,398	$ 32,610
Consolidated entity, excluding VIE
Dividend payable	$ 39,200	$ 32,500

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues:
Rental revenue	$ 269,827	$ 213,327	$ 155,792
Interest on loans and direct financing lease receivables	15,499	15,710	8,136
Other revenue, net	1,180	1,197	81
Total revenues	286,506	230,234	164,009
Expenses:
General and administrative	29,464	24,329	24,444
Property expenses	3,452	5,762	3,881
Depreciation and amortization	88,562	69,146	59,446
Provision for impairment of real estate	20,164	6,120	8,399
Change in provision for credit losses	88	(204)	830
Total expenses	141,730	105,153	97,000
Other operating income:
Gain on dispositions of real estate, net	30,647	9,338	5,821
Income from operations	175,423	134,419	72,830
Other (expense)/income:
Loss on debt extinguishment	(2,138)	(4,461)	(924)
Interest expense	(40,370)	(33,614)	(29,651)
Interest income	2,825	94	485
Income before income tax expense	135,740	96,438	42,740
Income tax expense	998	227	212
Net income	134,742	96,211	42,528
Net income attributable to non-controlling interests	(612)	(486)	(255)
Net income attributable to stockholders	$ 134,130	$ 95,725	$ 42,273
Basic weighted average shares outstanding (in shares)	134,941,188	116,358,059	95,311,035
Basic net income per share (in USD per share)	$ 0.99	$ 0.82	$ 0.44
Diluted weighted average shares outstanding (in shares)	135,855,916	117,466,338	96,197,705
Diluted net income per share (in USD per share)	$ 0.99	$ 0.82	$ 0.44

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 134,742	$ 96,211	$ 42,528
Other comprehensive income (loss):
Deferred loss on cash flow hedges	0	(4,824)	0
Unrealized income (loss) on cash flow hedges	56,736	17,273	(42,121)
Cash flow hedge losses reclassified to interest expense	26	10,059	6,676
Total other comprehensive income (loss)	56,762	22,508	(35,445)
Comprehensive income	191,504	118,719	7,083
Net income attributable to non-controlling interests	(612)	(486)	(255)
Adjustment for other comprehensive (income) loss attributable to non-controlling interests	(1,257)	(113)	213
Comprehensive income attributable to stockholders	$ 189,635	$ 118,120	$ 7,041

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Distributions in Excess of Cumulative Earnings	Distributions in Excess of Cumulative Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)	Total Stockholders' Equity	Total Stockholders' Equity Cumulative Effect, Period of Adoption, Adjustment	Non- Controlling Interests	Non- Controlling Interests Cumulative Effect, Period of Adoption, Adjustment
Balance at beginning of period (in shares) at Dec. 31, 2019			83,761,151
Balance at beginning of period at Dec. 31, 2019	$ 1,202,113	$ (188)	$ 838	$ 1,223,043	$ (27,482)	$ (187)	$ (1,949)	$ 1,194,450	$ (187)	$ 7,663	$ (1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance (in shares)			22,554,057
Common stock issuance	477,799		$ 225	477,574				477,799
Costs related to issuance of common stock	(18,154)			(18,154)				(18,154)
Other comprehensive income (loss)	(35,445)						(35,232)	(35,232)		(213)
Equity based compensation expense (in shares)			46,316
Equity based compensation expense	6,078		$ 1	6,077				6,078
Dividends declared on common stock and OP Units	(92,783)				(92,269)			(92,269)		(514)
Net income	42,528				42,273			42,273		255
Balance at end of period (in shares) at Dec. 31, 2020			106,361,524
Balance at end of period at Dec. 31, 2020	1,581,948		$ 1,064	1,688,540	(77,665)		(37,181)	1,574,758		7,190
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance (in shares)			18,230,721
Common stock issuance	469,200		$ 182	469,018				469,200
Common stock withheld related to net share settlement of equity awards	(353)				(353)			(353)
Costs related to issuance of common stock	(12,153)			(12,153)				(12,153)
Other comprehensive income (loss)	22,508						22,395	22,395		113
Equity based compensation expense (in shares)			56,808
Equity based compensation expense	5,683			5,683				5,683
Dividends declared on common stock and OP Units	(119,241)				(118,689)			(118,689)		(552)
Net income	$ 96,211				95,725			95,725		486
Balance at end of period (in shares) at Dec. 31, 2021	124,649,053		124,649,053
Balance at end of period at Dec. 31, 2021	$ 2,043,803		$ 1,246	2,151,088	(100,982)		(14,786)	2,036,566		7,237
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance (in shares)			17,576,684
Common stock issuance	413,845		$ 178	413,667				413,845
Common stock withheld related to net share settlement of equity awards	(2,452)				(2,452)			(2,452)
Costs related to issuance of common stock	(10,939)			(10,939)				(10,939)
Other comprehensive income (loss)	56,762						55,505	55,505		1,257
Equity based compensation expense (in shares)			153,918
Equity based compensation expense	9,489			9,489				9,489
Dividends declared on common stock and OP Units	(148,479)				(147,883)			(147,883)		(596)
Net income	$ 134,742				134,130			134,130		612
Balance at end of period (in shares) at Dec. 31, 2022	142,379,655		142,379,655
Balance at end of period at Dec. 31, 2022	$ 2,496,771		$ 1,424	$ 2,563,305	$ (117,187)		$ 40,719	$ 2,488,261		$ 8,510

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 134,742	$ 96,211	$ 42,528
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	88,562	69,146	59,406
Amortization of lease incentive	3,480	3,074	3,847
Amortization of above/below market leases and right of use assets, net	(217)	749	9
Amortization of deferred financing costs and other non-cash interest expense	3,099	2,738	2,532
Loss on debt extinguishment	2,138	4,461	924
Provision for impairment of real estate	20,164	6,120	8,399
Change in provision for credit losses	88	(204)	830
Gain on dispositions of real estate, net	(30,647)	(9,338)	(5,821)
Straight-line rent receivable, net	(20,811)	(20,160)	(15,137)
Equity based compensation expense	9,489	5,683	6,085
Adjustment to rental revenue for tenant credit	371	(2,900)	3,601
Payments made in settlement of cash flow hedges	0	(4,836)	0
Changes in other assets and liabilities:
Rent receivables, prepaid expenses and other assets	4,507	2,216	(12,058)
Accrued liabilities and other payables	(3,943)	14,433	4,243
Net cash provided by operating activities	211,022	167,393	99,388
Cash flows from investing activities:
Proceeds from sales of investments, net	126,610	58,381	82,889
Principal collections on loans and direct financing lease receivables	70,439	100,488	286
Investments in loans receivable	(115,016)	(136,391)	(60,480)
Deposits for prospective real estate investments	(26)	(590)	475
Investment in real estate, including capital expenditures	(728,727)	(840,027)	(541,307)
Investment in construction in progress	(51,870)	(9,348)	(14,423)
Lease incentives paid	(7,488)	(2,197)	(12,949)
Net cash used in investing activities	(706,078)	(829,684)	(545,509)
Cash flows from financing activities:
Repayment of secured borrowings	0	(175,781)	(65,909)
Borrowings under term loan facilities	397,523	0	180,000
Borrowings under revolving credit facility	299,000	393,000	87,000
Repayments under revolving credit facility	(443,000)	(267,000)	(115,000)
Proceeds from issuance of Senior Unsecured Notes	0	396,600	0
Proceeds from issuance of common stock, net	403,884	458,267	461,006
Payments for taxes related to net settlement of equity awards	(2,452)	(353)	0
Payments of debt extinguishment costs	(467)	0	0
Deferred financing costs	(4,991)	(2,120)	(25)
Offering costs	(1,008)	(1,220)	(2,805)
Dividends paid	(141,691)	(112,334)	(86,475)
Net cash provided by financing activities	506,798	689,059	457,792
Net increase in cash and cash equivalents and restricted cash	11,742	26,768	11,671
Cash and cash equivalents and restricted cash, beginning of period	59,758	32,990	21,319
Cash and cash equivalents and restricted cash, end of period	71,500	59,758	32,990
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents	62,345	59,758	26,602
Restricted cash	9,155	0	6,388
Cash and cash equivalents and restricted cash, end of period	71,500	59,758	32,990
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	36,832	24,162	27,071
Cash paid for income taxes	1,214	637	546
Non-cash investing and financing activities:
Adjustment upon adoption of ASC 326	0	0	188
Reclassification from construction in progress upon project completion	26,948	4,478	22,643
Net settlement of proceeds on the sale of investments	(28,938)	(960)	860
Non-cash investments in real estate and loans receivable	22,679	1,227	(860)
Unrealized (gains) losses on cash flow hedges	(56,615)	(27,890)	44,920
Payable and accrued offering costs	30	0	0
Discounts and fees on capital raised through issuance of common stock	9,931	10,933	16,674
Discounts and fees on issuance of debt	2,477	3,400	0
Dividends declared and unpaid	$ 39,398	$ 32,610	$ 25,703

XML

Organization

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

Description of Business

Essential Properties Realty Trust, Inc. (the “Company”) is an internally managed real estate company that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. The Company generally invests in and leases freestanding, single-tenant commercial real estate facilities where a tenant services its customers and conducts activities that are essential to the generation of the tenant’s sales and profits.

The Company was organized on January 12, 2018 as a Maryland corporation. It elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes beginning with the year ended December 31, 2018, and it believes that its current organizational and operational status and intended distributions will allow it to continue to so qualify. Substantially all of the Company’s business is conducted directly and indirectly through its operating partnership, Essential Properties, L.P. (the “Operating Partnership”).

On June 25, 2018, the Company completed the initial public offering (“IPO”) of its common stock. The common stock of the Company is listed on the New York Stock Exchange under the ticker symbol “EPRT”.

COVID-19 Pandemic

For much of 2020, the COVID-19 pandemic (“COVID-19”) created significant uncertainty and economic disruption that adversely affected the Company and its tenants. The adverse impact of the pandemic moderated during 2021 and significantly diminished during 2022. However, the continuing impact of the COVID-19 pandemic and its duration are unclear, and various factors could erode the progress that has been made against the virus to date. If conditions similar to those experienced in 2020, at the height of the pandemic, were to reoccur, they would adversely impact the Company and its tenants. The Company continues to closely monitor the impact of COVID-19 on all aspects of its business.

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Accounting

The accompanying unaudited consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation. As of December 31, 2022 and 2021, the Company, directly and indirectly, held a 99.6% ownership interest in the Operating Partnership, and the consolidated financial statements include the financial statements of the Operating Partnership as of these dates. See Note 7—Equity for changes in the ownership interest in the Operating Partnership.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Reportable Segments

ASC Topic 280, Segment Reporting, establishes standards for the manner in which enterprises report information about operating segments. Substantially all of the Company’s investments, at acquisition, are comprised of real estate owned that is leased to tenants on a long-term basis or real estate that secures the Company's investment in loans and direct financing lease receivables. Therefore, the Company aggregates these investments for reporting purposes and operates in one reportable segment.

Real Estate Investments

Investments in real estate are carried at cost less accumulated depreciation and impairment losses. The cost of investments in real estate reflects their purchase price or development cost. The Company evaluates each acquisition transaction to determine whether the acquired asset meets the definition of a business. Under Accounting Standards Update ("ASU") 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business, an acquisition does not qualify as a business when there is no substantive process acquired or substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets or the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. Transaction costs related to acquisitions that are asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be acquisitions of a business are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company allocates the purchase price of acquired properties accounted for as asset acquisitions to tangible and identifiable intangible assets or liabilities based on their relative fair values. Tangible assets may include land, site improvements and buildings. Intangible assets may include the value of in-place leases and above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics.

The Company incurs various costs in the leasing and development of its properties. Amounts paid to tenants that incentivize them to extend or otherwise amend an existing lease or to sign a new lease agreement are capitalized to lease incentives on the Company's consolidated balance sheets. Tenant improvements are capitalized to building and improvements within the Company's consolidated balance sheets. Costs incurred which are directly related to properties under development, which include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs and real estate taxes and insurance, are capitalized during the period of development as construction in progress. After the determination is made to capitalize a cost, it is allocated to the specific component of a project that benefited. Determination of when a development project commences, and capitalization begins, and when a development project has reached substantial completion, and is available for occupancy and capitalization must cease, involves a degree of judgment. The Company does not engage in speculative real estate development. The Company does, however, opportunistically agree to reimburse certain of its tenants for development costs at its properties in exchange for contractually-specified rent that generally increases proportionally with its funding.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases based on the specific characteristics of each tenant's lease. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. Factors the Company considers in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses, and estimates of lost rentals at market rates during the expected lease-up periods, which primarily range from six to 12 months. The fair value of above- or below-market leases is recorded based on the net present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company's estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining non-cancelable term of the lease including any below-market fixed rate renewal options for below-market leases.

In making estimates of fair values for purposes of allocating purchase price, the Company uses a number of sources, including real estate valuations prepared by independent valuation firms. The Company also considers information and other factors including market conditions, the industry that the tenant operates in, characteristics of the real estate (e.g., location, size, demographics, value and comparative rental rates), tenant credit profile and the importance of the location of the real estate to the operations of the tenant's business. Additionally, the Company considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. The Company uses the information obtained as a result of its pre-acquisition due diligence as part of its consideration of the accounting standard governing asset retirement obligations and, when necessary, will record an asset retirement obligation as part of the purchase price allocation.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount and fair value less estimated selling costs. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations for all applicable periods.

Depreciation and Amortization

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings and 15 years for site improvements. The Company recorded the following amounts of depreciation expense on its real estate investments during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Depreciation on real estate investments	$	80,647	$	61,171	$	51,736

Lease incentives are amortized on a straight-line basis as a reduction of rental income over the remaining non-cancellable terms of the respective leases. If a tenant terminates its lease, the unamortized portion of the lease incentive is charged to rental revenue. Construction in progress is not depreciated until the development has reached substantial completion. Tenant improvements are depreciated over the non-cancellable term of the related lease or their estimated useful life, whichever is shorter.

Capitalized above-market lease intangibles are amortized on a straight-line basis as a reduction of rental revenue over the remaining non-cancellable terms of the respective leases. Capitalized below-market lease intangibles are accreted on a straight-line basis as an increase to rental revenue over the remaining non-cancellable terms of the respective leases including any below-market fixed rate renewal option periods.

Capitalized above-market ground lease values are accreted as a reduction of property expenses over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property expenses over the remaining terms of the respective leases and any expected below-market renewal option periods where renewal is considered probable.

The value of in-place leases, exclusive of the value of above-market and below-market lease intangibles, is amortized to depreciation and amortization expense on a straight-line basis over the remaining periods of the respective leases.

If a tenant terminates its lease, the unamortized portion of each intangible, including in-place lease values, is charged to depreciation and amortization expense, while above- and below-market lease adjustments are recorded within rental revenue in the consolidated statements of operations.

Loans Receivable

The Company holds its loans receivable for long-term investment. Loans receivable are carried at amortized cost, including related unamortized discounts or premiums, if any, less the Company's estimated allowance for credit losses. The Company recognizes interest income on loans receivable using the effective-interest method applied on a loan-by-loan basis. Direct costs associated with originating loans are offset against any

related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective-interest method.

Direct Financing Lease Receivables

Certain of the Company’s real estate investment transactions are accounted for as direct financing leases. The Company records the direct financing lease receivables at their net investment, determined as the aggregate minimum lease payments and the estimated non-guaranteed residual value of the leased property less unearned income. The unearned income is recognized over the term of the related lease so as to produce a constant rate of return on the net investment in the asset. The Company’s investment in direct financing lease receivables is reduced over the applicable lease term to its non-guaranteed residual value by the portion of rent allocated to the direct financing lease receivables.

Allowance for Credit Losses

On January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”) on a prospective basis. ASC 326 changed how the Company accounts for credit losses for all of its loans and direct financing lease receivables. ASC 326 replaced the previous “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information than used under the incurred losses model. Upon adoption of ASC 326, the Company recorded an initial allowance for credit losses of $0.2 million as of January 1, 2020, netted against loans and direct financing receivables on its consolidated balance sheet. Under ASC 326, the Company is required to re-evaluate the expected loss of its loans and direct financing lease receivables portfolio at each balance sheet date. As of December 31, 2022 and 2021, the Company recorded an allowance for credit losses of $0.8 million. Changes in the Company's allowance for credit losses are presented within change in provision for credit losses in its consolidated statements of operations.

In connection with its adoption of ASC 326 on January 1, 2020, the Company implemented a new process including the use of a credit loss forecasting model. The Company has used this credit loss forecasting model for estimating expected lifetime credit losses, at the individual asset-level, for its loans and direct financing lease receivable portfolio. The forecasting model used is the probability weighted expected cash flow method, depending on the type of loan or direct financing lease receivable and global assumptions.

The Company uses a real estate loss estimate model (“RELEM”) which estimates losses on its loans and direct financing lease receivable portfolio, for purposes of calculating allowances for credit losses. The RELEM allows the Company to refine (on an ongoing basis) the expected loss estimate by incorporating loan specific assumptions as necessary, such as anticipated funding, interest payments, estimated extensions and estimated loan repayment/refinancing at maturity to estimate cash flows over the life of the loan. The model also incorporates assumptions related to underlying collateral values, various loss scenarios, and predicted losses to estimate expected losses. The Company's specific loan-level inputs include loan-to-stabilized-value (“LTV”), principal balance, property type, location, coupon, origination year, term, subordination, expected repayment date and future funding. The Company categorizes the results by LTV range, which it considers the most significant indicator of credit quality for its loans and direct financing lease receivables. A lower LTV ratio typically indicates a lower credit loss risk.

The Company also evaluates each loan and direct financing lease receivable measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan or direct financing lease receivables.

The Company's allowance for credit losses is adjusted to reflect its estimation of the current and future economic conditions that impact the performance of the real estate assets securing its loans. These estimations include various macroeconomic factors impacting the likelihood and magnitude of potential credit losses for the Company's loans and direct financing lease receivables during their anticipated term.

Impairment of Long-Lived Assets

If circumstances indicate that the carrying value of a property may not be recoverable, the Company reviews the property for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates

consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. Impairment losses, if any, are recorded directly within our consolidated statement of operations.

The Company recorded the following provisions for impairment of long lived assets during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Provision for impairment of real estate	$	20,164	$	6,120	$	8,399

Cash and Cash Equivalents

Cash and cash equivalents includes cash in the Company’s bank accounts. The Company considers all cash balances and highly liquid investments with original maturities of three months or less to be cash and cash equivalents. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to an insurance limit.

As of December 31, 2022 and 2021, the Company had deposits of $62.3 million and $59.8 million, respectively, of which $62.1 million and $59.5 million, respectively, were in excess of the amount insured by the FDIC. Although the Company bears risk with respect to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result.

Restricted Cash

Restricted cash primarily consists of cash proceeds from the sale of assets held by a qualified intermediary to facilitate tax-deferred exchange transactions under Section 1031 of the Internal Revenue Code.

Forward Equity Sales

The Company has and may continue to enter into forward sale agreements relating to shares of its common stock, either through its 2022 ATM Program (as defined herein) or through an underwritten public offering. These agreements may be physically settled in stock, settled in cash or net share settled at the Company’s election.

The Company evaluated its forward sale agreements and concluded they meet the conditions to be classified within stockholders’ equity. Prior to settlement, a forward sale agreement will be reflected in the diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of the Company’s common stock used in diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares of the Company’s common stock that would be issued upon full physical settlement of such forward sale agreement over the number of shares of the Company’s common stock that could be purchased by the Company in the market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). Consequently, prior to settlement of a forward sale agreement, there will be no dilutive effect on the Company’s earnings per share except during periods when the average market price of the Company’s common stock is above the adjusted forward sale price. However, upon settlement of a forward sales agreement, if the Company elects to physically settle or net share settle such forward sale agreement, delivery of the Company’s shares will result in dilution to the Company’s earnings per share.

Deferred Financing Costs

Financing costs related to establishing the Company’s Revolving Credit Facility (as defined below) were deferred and are being amortized as an increase to interest expense in the consolidated statements of operations over the term of the facility and are reported as a component of rent receivables, prepaid expenses and other assets, net on the consolidated balance sheets.

Financing costs related to the issuance of the Company’s borrowings under the 2024 Term Loan, 2027 Term Loan, 2028 Term Loan and 2031 Notes were deferred and are being amortized as an increase to interest expense in the consolidated statements of operations over the term of the related debt instrument and are reported as a reduction of the related outstanding debt balance on the consolidated balance sheets.

Derivative Instruments

In the normal course of business, the Company uses derivative financial instruments, which may include interest rate swaps, caps, options, floors and other interest rate derivative contracts, to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows on a portion of the Company’s floating-rate debt. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. The Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may also enter into derivative contracts that are intended to economically hedge certain risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designed and qualifies for hedge accounting treatment. If a derivative is designated and qualifies for cash flow hedge accounting treatment, the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income to the extent that it is effective. Any ineffective portion of a change in derivative fair value is immediately recorded in earnings. If the Company elects not to apply hedge accounting treatment (or for derivatives that do not qualify as hedges), any change in the fair value of such derivative instruments would be recognized immediately as a gain or loss on derivative instruments in the consolidated statements of operations.

Fair Value Measurement

The Company estimates the fair value of financial and non-financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1—Quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3—Unobservable inputs that reflect the Company's own assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

Revenue Recognition

The Company’s rental revenue is primarily rent received from tenants. Rent from tenants is recorded in accordance with the terms of each lease on a straight-line basis over the non-cancellable initial term of the lease from the later of the date of the commencement of the lease and the date of acquisition of the property subject to the lease. Rental revenue recognition begins when the tenant controls the space and continues through the term of

the related lease. Because substantially all of the leases provide for rental increases at specified intervals, the Company records a straight-line rent receivable and recognizes revenue on a straight-line basis through the expiration of the non-cancelable term of the lease. The Company considers whether the collectability of rents is reasonably assured in determining the amount of straight-line rent to record.

Generally, the Company’s leases provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions provided under the initial lease term, including rent increases. If economic incentives make it reasonably certain that an option period to extend the lease will be exercised, the Company will include these options in determining the non-cancelable term of the lease.

The Company defers rental revenue related to lease payments received from tenants in advance of their due dates. These amounts are presented within accrued liabilities and other payables on the Company’s consolidated balance sheets.

Certain properties in the Company’s investment portfolio are subject to leases that provide for contingent rent based on a percentage of the tenant’s gross sales. For these leases, the Company recognizes contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached.

The Company recorded the following amounts as contingent rent, which are included as a component of rental revenue in the Company's consolidated statements of operations, during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Contingent rent	$	682	$	721	$	444

Adjustment to Rental Revenue for Tenant Credit

The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located.

If the assessment of the collectability of substantially all payments due under a lease changes from probable to not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current period reduction of rental revenue in the consolidated statements of operations.

The Company recorded the following amounts as increases to or reductions of rental revenue for tenant credit during the periods presented:

	Year ended December 31,
(in thousands)	2022			2021		2020
Adjustment to rental revenue for tenant credit	$	(371)	-371000	$	2,900	$	(7,149)

Offering Costs

In connection with the completion of equity offerings, the Company incurs legal, accounting and other offering-related costs. Such costs are deducted from the gross proceeds of each equity offering when the offering is completed. As of December 31, 2022 and 2021, the Company capitalized a total of $90.3 million and $79.3 million, respectively, of such costs, which are presented as a reduction of additional paid-in capital in the Company's consolidated balance sheets.

Income Taxes

The Company elected and qualified to be taxed as a REIT under sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with its taxable year ended December 31, 2018. REITs are subject to a number of organizational and operational requirements, including a requirement that 90% of ordinary “REIT taxable income” (as determined without regard to the dividends paid deduction or net capital gains) be distributed. As a REIT, the Company will generally not be subject to U.S. federal income tax to the extent that it

meets the organizational and operational requirements and its distributions equal or exceed REIT taxable income. For the period subsequent to the effective date of its REIT election, the Company continues to meet the organizational and operational requirements and expects distributions to exceed REIT taxable income. Accordingly, no provision has been made for U.S. federal income taxes. Even though the Company has elected and qualifies for taxation as a REIT, it may be subject to state and local income and franchise taxes, and to federal income and excise tax on its undistributed income. Franchise taxes and federal excise taxes on the Company’s undistributed income, if any, are included in general and administrative expenses on the accompanying consolidated statements of operations. Additionally, taxable income from non-REIT activities managed through the Company's taxable REIT subsidiary is subject to federal, state, and local taxes.

The Company analyzes its tax filing positions in all of the U.S. federal, state and local tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in such jurisdictions. The Company follows a two-step process to evaluate uncertain tax positions. Step one, recognition, occurs when an entity concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Step two, measurement, determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

As of December 31, 2022 and 2021, the Company had no accruals recorded for uncertain tax positions. The Company’s policy is to classify interest expense and penalties relating to taxes in general and administrative expense in the consolidated statements of operations. During the years ended December 31, 2022, 2021 and 2020, the Company recorded de minimis interest or penalties relating to taxes, and there were no interest or penalties with respect to taxes accrued as of December 31, 2022 or 2021. The 2021, 2020 and 2019 taxable years remain open to examination by federal and/or state taxing jurisdictions to which the Company is subject.

Equity-Based Compensation

The Company grants shares of restricted common stock and restricted share units (“RSUs”) to its directors, executive officers and other employees that vest over specified time periods, subject to the recipient’s continued service. The Company also grants performance-based RSUs to its executive officers, the final number of which is determined based on objective and subjective performance conditions and which vest over a multi-year period, subject to the recipient’s continued service. The Company accounts for the restricted common stock and RSUs in accordance with ASC 718, Compensation – Stock Compensation, which requires that such compensation be recognized in the financial statements based on its estimated grant-date fair value. The value of such awards is recognized as compensation expense in general and administrative expenses in the accompanying consolidated statements of operations over the applicable service periods.

The Company recognizes compensation expense for equity-based compensation using the straight-line method based on the fair value of the award on the grant date. Forfeitures of equity-based compensation awards, if any, are recognized when they occur.

Variable Interest Entities

The Financial Accounting Standards Board (“FASB”) provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE’s economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE.

The Company has concluded that the Operating Partnership is a VIE of which the Company is the primary beneficiary, as the Company has the power to direct the activities that most significantly impact the economic performance of the Operating Partnership. Substantially all of the Company’s assets and liabilities are held by the Operating Partnership. The assets and liabilities of the Operating Partnership are consolidated and reported as assets and liabilities on the Company’s consolidated balance sheets as of December 31, 2022 and 2021.

Additionally, the Company has concluded that certain entities to which it has provided mortgage loans are VIEs because the entities' equity was not sufficient to finance their activities without additional subordinated financial

support. The following table presents information about the Company’s mortgage loan-related VIEs as of the dates presented:

	December 31,
(Dollars in thousands)	2022		2021
Number of VIEs	21		23
Aggregate carrying value	$	233,351	$	140,851

The Company was not the primary beneficiary of any of these entities, because the Company did not have the power to direct the activities that most significantly impact the entities’ economic performance as of December 31, 2022 and 2021. The Company’s maximum exposure to loss in these entities is limited to the carrying amount of its investment. The Company had no liabilities associated with these VIEs as of December 31, 2022 and 2021.

Recent Accounting Developments

In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848) (“ASU 2020-4”). ASU 2020-4 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-4 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to or less than the cash flows in the original lease. The Company made this election and accounts for rent deferrals by increasing its rent receivables as receivables accrue and continuing to recognize income during the deferral period. Lease concessions or amendments other than rent deferrals are evaluated to determine if a substantive change to the consideration in the original lease contract has occurred and should be accounted for as a lease modification. The Company continues to evaluate any amounts recognized for collectability, regardless of whether accounted for as a lease modification or not, and records an adjustment to rental revenue for amounts that are not probable of collection. For lease concessions granted in conjunction with the COVID-19 pandemic, the Company reviewed all amounts recognized on a tenant-by-tenant basis for collectability.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). The guidance in ASU 2020-06 simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in the ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, by removing certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding an entity’s ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The amendments in ASU 2020-06 are effective for the Company for fiscal years beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The guidance must be adopted as of the beginning of the fiscal year of adoption. The Company adopted this guidance on January 1, 2021 and the adoption of ASU 2020-06 did not have a material impact on the Company's consolidated financial statements.

In July 2021, the FASB issued ASU 2021-05, Lease (Topic 842): Lessors - Certain Leases with Variable Lease Payments ("ASU 2021-05"). The guidance in ASU 2021-05 amends the lease classification requirements for the lessors under certain leases containing variable payments to align with practice under ASC 840. The lessor should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: 1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in ASC 842-10-25-2 through 25-3; and 2) the lessor would have otherwise recognized a day-one loss. The amendments in ASU 2021-05 are effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The adoption of ASU 2020-05 is not expected to have a material impact on the Company's consolidated financial statements.

XML

Investments

12 Months Ended

Dec. 31, 2022

Investments [Abstract]

Investments

Investments

The following table presents information about the number of investments in the Company's real estate investment portfolio as of each date presented:

	December 31,
	2022	2021
Owned properties (1)	1,489	1,315
Properties securing investments in mortgage loans (2)	153	126
Ground lease interests (3)	11	10
Total number of investments	1,653	1,451

_____________________________________

(1)Includes 8 and 11 properties which are subject to leases accounted for as direct financing leases or loans as of December 31, 2022 and 2021, respectively.

(2)Properties secure 20 and 17 mortgage loans receivable as of December 31, 2022 and 2021, respectively.

(3)Includes one building which is subject to a lease accounted for as a direct financing lease as of December 31, 2021.

The following table presents information about the gross investment value of the Company's real estate investment portfolio as of each date presented:

	December 31,
(in thousands)	2022		2021
Real estate investments, at cost	$	3,810,570	$	3,150,840
Loans and direct financing lease receivables, net	240,035		189,287
Real estate investments held for sale, net	4,780		15,434
Total gross investments	$	4,055,385	$	3,355,561

Investments in 2022 and 2021

The following table presents information about the Company’s acquisition activity during the years ended December 31, 2022 and 2021:

	Year ended December 31,
(Dollars in thousands)	2022		2021
Ownership type	(1)		Fee Simple
Number of properties	224		297
Purchase price allocation:
Land and improvements	$	270,049	$	279,501
Building and improvements	481,560		544,604
Construction in progress (2)	51,870		9,348
Intangible lease assets	3,366		11,010
Total purchase price	806,845		844,463
Intangible lease liabilities	—		(3,320)
Purchase price (including acquisition costs)	$	806,845	$	841,143

_____________________________________

(1)During the year ended December 31, 2022, the Company acquired the fee interest in 223 properties and acquired one property subject to a ground lease.

(2)Represents amounts incurred at and subsequent to acquisition and includes $0.8 million and $0.1 million, respectively, of capitalized interest expense during the years ended December 31, 2022 and 2021.

During the years ended December 31, 2022 and 2021, the Company did not have any investments that individually represented more than 5% of the Company’s total investment activity.

Gross Investment Activity

During the years ended December 31, 2022, 2021 and 2020, the Company had the following gross investment activity: 

(Dollar amounts in thousands)	Number of Investment Locations	Dollar Amount of Investments
Gross investments, December 31, 2019	1,000	$	2,002,314
Acquisitions of and additions to real estate investments	208	568,204
Sales of investments in real estate	(49)	(81,312)
Relinquishment of properties at end of ground lease term	(3)	(1,931)
Provisions for impairment of real estate (1)	—	(8,399)
Investments in loans receivable	25	61,339
Principal collections on and settlements of loans and direct financing lease receivables	—	(286)
Other	—	(11,256)
Gross investments, December 31, 2020	1,181	2,528,673
Acquisitions of and additions to real estate investments	297	853,798
Sales of investments in real estate	(38)	(57,154)
Provisions for impairment of real estate (2)	—	(6,120)
Investments in loans receivable	49	137,351
Principal collections on and settlements of loans and direct financing lease receivables	(38)	(100,488)
Other	—	(499)
Gross investments, December 31, 2021	1,451	3,355,561
Acquisitions of and additions to real estate investments	224	810,661
Sales of investments in real estate	(54)	(138,515)
Provisions for impairment of real estate (3)	—	(20,164)
Investments in loans receivable	75	143,954
Principal collections on and settlements of loans and direct financing lease receivables	(43)	(93,118)
Other	—	(2,994)
Gross investments, December 31, 2022	1,653	4,055,385
Less: Accumulated depreciation and amortization (4)	—	(276,307)
Net investments, December 31, 2022	1,653	$	3,779,078

_____________________________________________ 

(1)During the year ended December 31, 2020, the Company identified and recorded provisions for impairment at 7 vacant and 10 tenanted properties.

(2)During the year ended December 31, 2021, the Company identified and recorded provisions for impairment at 2 vacant and 16 tenanted properties.

(3)During the year ended December 31, 2022, the Company identified and recorded provisions for impairment at 4 vacant and 9 tenanted properties.

(4)Includes $238.2 million of accumulated depreciation as of December 31, 2022.

Real Estate Investments

The Company's investment properties are leased to tenants under long-term operating leases that typically include one or more renewal options. See Note 4—Leases for more information about the Company's leases.

Loans and Direct Financing Lease Receivables

As of December 31, 2022 and 2021, the Company had 23 and 22 loans receivable outstanding, with an aggregate carrying amount of $238.7 million and $187.8 million, respectively. The maximum amount of loss due to credit risk is the Company's current principal balance of $238.7 million as of December 31, 2022.  

The Company's loans receivable portfolio as of December 31, 2022 and 2021 is summarized below (dollars in thousands): 

Loan Type	Monthly Payment (1)	Number of Secured Properties	Effective Interest Rate	Stated Interest Rate	Maturity Date	December 31,
						2022		2021
Mortgage (2)(3)	I/O	2	8.80%	8.00%	2039	$	12,000	$	12,000
Mortgage (2)	P+I		8.10%	8.10%	2059	—		6,096
Mortgage (2)	I/O	2	8.53%	7.75%	2039	7,300		7,300
Mortgage (2)	I/O	69	8.16%	7.70%	2034	51,000		28,000
Mortgage (2)	I/O	1	8.42%	7.65%	2040	5,300		5,300
Mortgage (2)	I/O	3	8.79%	8.50%	2022	2,324		2,324
Mortgage (2)	I/O	1	7.00%	7.00%	2023	600		600
Mortgage (2)	I/O		6.89%	6.75%	2026	—		14,165
Mortgage (2)	I/O	3	8.30%	8.25%	2023	3,146		3,146
Mortgage (2)	I/O	2	6.87%	6.40%	2036	2,520		2,520
Mortgage (2)	I/O	3	7.51%	7.00%	2036	2,673		30,806
Mortgage (2)	I/O		7.51%	7.00%	2036	—		9,679
Mortgage (2)	I/O		7.85%	7.50%	2031	—		13,000
Mortgage (2)	I/O	2	8.29%	8.25%	2023	2,389		2,389
Mortgage (2)	I/O	1	5.72%	8.00%	2051	24,100		6,864
Mortgage (2)	I/O	2	7.44%	7.10%	2036	9,808		9,808
Mortgage (2)	I/O	7	7.30%	6.80%	2036	35,474		25,714
Mortgage (2)	I/O	1	7.73%	7.20%	2036	2,470		2,470
Mortgage (2)	I/O	1	8.00%	8.00%	2023	1,754		—
Mortgage (2)	I/O	37	6.80%	7.00%	2027	26,307		—
Mortgage (2)	I/O	1	6.99%	7.20%	2037	3,600		—
Mortgage (2)	I/O	1	8.40%	8.25%	2024	760		—
Mortgage (2)	I/O	4	8.64%	8.05%	2037	12,250		—
Mortgage (2)	I/O	10	8.93%	8.25%	2037	28,938		—
Leasehold interest	P+I		10.69%	(4)	2039	—		1,435
Leasehold interest	P+I	1	2.25%	(5)	2034	992		1,055
Leasehold interest	P+I	1	2.41%	(5)	2034	1,473		1,560
Leasehold interest	P+I	1	4.97%	(5)	2038	1,517		1,562
Net investment						$	238,695	$	187,793

________________________________________________

(1)I/O: Interest Only; P+I: Principal and Interest

(2)Loan requires monthly payments of interest only with a balloon payment due at maturity.

(3)Loan allows for prepayments in whole or in part without penalty.

(4)This leasehold interest was accounted for as a loan receivable, as the lease for two land parcels contained an option for the lessee to repurchase the leased parcels in 2024 or 2025.

(5)These leasehold interests are accounted for as loans receivable, as the leases for each property contain an option for the related lessee to repurchase the leased property in the future.

Scheduled principal payments due to be received under the Company's loans receivable as of December 31, 2022 were as follows:

(in thousands)	Loans Receivable
2023	$	8,096
2024	981
2025	234
2026	248
2027	26,570
Thereafter	202,566
Total	$	238,695

As of December 31, 2022 and 2021, the Company had $2.1 million and $2.3 million, respectively, of net investments accounted for as direct financing lease receivables. The components of the investments accounted for as direct financing lease receivables were as follows:

	December 31,
(in thousands)	2022		2021
Minimum lease payments receivable	$	2,812	$	3,189
Estimated unguaranteed residual value of leased assets	251		270
Unearned income from leased assets	(957)		(1,150)
Net investment	$	2,106	$	2,309

Scheduled future minimum non-cancelable base rental payments due to be received under the direct financing lease receivables as of December 31, 2022 were as follows:

(in thousands)	Future Minimum Base Rental Payments
2023	$	321
2024	283
2025	254
2026	243
2027	219
Thereafter	1,492
Total	$	2,812

Allowance for Credit Losses

The Company utilizes a real estate estimate model (i.e. a RELEM model) which estimates losses on loans and direct financing lease receivables for purposes of calculating an allowance for credit losses. As of December 31, 2022 and 2021, the Company recorded an allowance for credit losses of $0.8 million and $0.8 million, respectively. Changes in the Company’s allowance for credit losses are presented within provision for credit losses in the Company’s consolidated statements of operations.

For the years ended December 31, 2022, 2021 and 2020, the changes to the Company's allowance for credit losses were as follows:

(in thousands)	Loans and Direct Financing Lease Receivables
Balance at December 31, 2019	$	—
Cumulative-effect adjustment upon adoption of ASC 326	188
Current period provision for expected credit losses (1)	830
Write-offs charged	—
Recoveries	—
Balance at December 31, 2020	1,018
Current period provision for expected credit losses (1)	(204)
Write-offs charged	—
Recoveries	—
Balance at December 31, 2021	814
Current period provision for expected credit losses (2)	88
Write-offs charged	(137)
Recoveries	—
Balance at December 31, 2022	$	765

_____________________________________

(1)The increase in expected credit losses was due to the changes in assumptions regarding then-current macroeconomic factors related to COVID-19.

(2)The decrease in expected credit losses is due to assumptions regarding current macroeconomic factors returning to pre-pandemic values due to the reduction of the adverse impact of the COVID-19 pandemic.

The Company considers the ratio of loan to value ("LTV") to be a significant credit quality indicator for its loans and direct financing lease portfolio. The following table presents information about the LTV of the Company's loans and direct financing lease receivables measured at amortized cost as of as of December 31, 2022:

	Amortized Cost Basis by Origination Year										Total Amortized Costs Basis
(in thousands)	2022		2021		2020		2019		Prior to 2019
LTV <60%	$	23,000	$	—	$	—	$	28,000	$	1,635	$	52,635
LTV 60%-70%	—		28,234		—		—		—		28,234
LTV >70%	83,369		45,186		10,612		20,292		471		159,930
	$	106,369	$	73,420	$	10,612	$	48,292	$	2,106	$	240,799

Real Estate Investments Held for Sale

The Company continually evaluates its portfolio of real estate investments and may elect to dispose of investments considering criteria including, but not limited to, tenant concentration, tenant credit quality, tenant operation type (e.g., industry, sector or concept), unit-level financial performance, local market conditions and lease rates, associated indebtedness and asset location. Real estate investments held for sale are expected to be sold within twelve months.

The following table shows the activity in real estate investments held for sale and intangible lease liabilities held for sale during the years ended December 31, 2022 and 2021: 

(Dollar amounts in thousands)	Number of Properties	Real Estate Investments		Intangible Lease Liabilities		Net Carrying Value
Held for sale balance, December 31, 2020	8	$	17,058	$	—	$	17,058
Transfers to held for sale classification	20	25,767		—		25,767
Sales	(15)	(13,501)		—		(13,501)
Transfers to held and used classification	(4)	(13,890)		—		(13,890)
Held for sale balance, December 31, 2021	9	15,434		—		15,434
Transfers to held for sale classification	11	28,393		—		28,393
Sales	(16)	(39,047)		—		(39,047)
Transfers to held and used classification	—	—		—		—
Held for sale balance, December 31, 2022	4	$	4,780	$	—	$	4,780

Significant Concentrations

The Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose rental revenue for the years ended December 31, 2022, 2021 or 2020 represented 10% or more of total rental revenue in the Company's consolidated statements of operations.

The following table lists the states where the rental revenue from the properties in that state during the periods presented represented 10% or more of total rental revenue in the Company's consolidated statements of operations:

	Year ended December 31,
State	2022	2021	2020
Texas	13.5%	13.1%	14.9%

Intangible Assets and Liabilities

Intangible assets and liabilities consisted of the following as of the dates presented:

	December 31, 2022						December 31, 2021
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	77,096	$	30,217	$	46,879	$	76,255	$	24,540	$	51,715
Intangible market lease assets	11,268		4,917		6,351		11,704		4,409		7,295
Total intangible assets	$	88,364	$	35,134	$	53,230	$	87,959	$	28,949	$	59,010
Intangible market lease liabilities	$	15,325	$	3,774	$	11,551	$	15,948	$	3,255	$	12,693

 The remaining weighted average amortization period for the Company's intangible assets and liabilities as of December 31, 2022, by category and in total, were as follows:

	Years Remaining
In-place leases	8.8
Intangible market lease assets	11.0
Total intangible assets	9.1
Intangible market lease liabilities	8.3

The following table discloses amounts recognized within the consolidated statements of operations related to amortization of in-place leases, amortization and accretion of above- and below-market lease assets and

liabilities, net and the amortization and accretion of above- and below-market ground leases for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Amortization of in-place leases (1)	$	7,575	$	7,544	$	7,067
Amortization (accretion) of market lease intangibles, net (2)	(217)		(47)		9
Amortization (accretion) of above- and below-market ground lease intangibles, net (3)	(350)		(353)		(395)

 ______________________________________________________

(1)Reflected within depreciation and amortization expense.

(2)Reflected within rental revenue.

(3)Reflected within property expenses.

The following table provides the estimated amortization of in-place lease assets to be recognized as a component of depreciation and amortization expense for the next five years and thereafter:

(in thousands)	In-Place Lease Assets
2023	$	6,187
2024	5,519
2025	4,271
2026	3,966
2027	3,437
Thereafter	23,499
Total	$	46,879

The following table provides the estimated net amortization of above- and below-market lease intangibles to be recognized as a component of rental revenue for the next five years and thereafter:

(in thousands)	Above Market Lease Asset		Below Market Lease Liabilities		Net Adjustment to Rental Revenue
2023	$	(692)	$	701	$	9
2024	(659)		698		39
2025	(651)		700		49
2026	(641)		704		63
2027	(620)		728		108
Thereafter	(3,088)		8,020		4,932
Total	$	(6,351)	$	11,551	$	5,200

XML

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

As Lessor

The Company’s investment properties are leased to tenants under long-term operating leases that typically include one or more tenant renewal options. The Company’s leases provide for annual base rental payments (generally payable in monthly installments), and generally provide for increases in rent based on fixed contractual terms or as a result of increases in the Consumer Price Index.

Substantially all of the leases are triple-net, which means that the lessees are responsible for paying all property operating expenses, including maintenance, insurance, utilities, property taxes and, if applicable, ground rent expense; therefore, the Company is generally not responsible for repairs or other capital expenditures related to the properties while the triple-net leases are in effect and, at the end of the lease term, the lessees are responsible for returning the property to the Company in a substantially similar condition as when they took possession. Some of the Company’s leases provide that in the event the Company wishes to sell the property subject to that lease, it first must offer the lessee the right to purchase the property on the same terms and conditions as any offer which it intends to accept for the sale of the property.

Scheduled future minimum base rental payments due to be received under the remaining non-cancelable term of the operating leases in place as of December 31, 2022 were as follows:

(in thousands)	Future Minimum Base Rental Receipts
2023	$	295,823
2024	298,360
2025	298,352
2026	300,847
2027	300,685
Thereafter	3,129,043
Total	$	4,623,110

Since lease renewal periods are exercisable at the option of the lessee, the preceding table presents future minimum base rental payments to be received during the initial non-cancelable lease term only. In addition, the future minimum lease payments exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to performance thresholds and exclude increases in annual rent based on future changes in the Consumer Price Index, among other items.

The fixed and variable components of lease revenues for the years ended December 31, 2022, 2021, and 2020 were as follows:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed lease revenues	$	270,694	$	210,441	$	165,171
Variable lease revenues (1)	1,632		1,708		1,341
Total lease revenues (2)	$	272,326	$	212,149	$	166,512

_____________________________________

(1)Includes contingent rent based on a percentage of the tenant’s gross sales and costs paid by the Company for which it is reimbursed by its tenants.

(2)Excludes the amortization and accretion of above- and below-market lease intangible assets and liabilities and lease incentives and the adjustment to rental revenue for tenant credit.

As Lessee

The Company has a number of ground leases, an office lease and other equipment leases which are classified as operating leases. As of December 31, 2022, the Company's ROU assets and lease liabilities were $7.3 million and $9.0 million, respectively. As of December 31, 2021, the Company's ROU assets and lease liabilities were $7.4 million and $9.4 million, respectively. These amounts are included in rent receivables, prepaid expenses and other assets, net and accrued liabilities and other payables on the Company's consolidated balance sheets.

The discount rate applied to measure each ROU asset and lease liability is based on the Company's incremental borrowing rate ("IBR"). The Company considers the general economic environment and its historical borrowing activity and factors in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As the Company did not elect to apply hindsight, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. Certain of the Company's ground leases offer renewal options which it assesses against relevant economic factors to determine whether it is reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that the Company is reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and ROU asset.

The following table sets forth information related to the measurement of the Company's lease liabilities as of the dates presented:

	December 31, 2022	December 31, 2021
Weighted average remaining lease term (in years)	22.9	21.5
Weighted average discount rate	6.09%	6.08%

The following table sets forth the details of rent expense for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed rent expense - Ground Rent	$	981	$	957	$	905
Fixed rent expense - Office Rent	511		510		512
Variable rent expense	—		—		—
Total rent expense	$	1,492	$	1,467	$	1,418

As of December 31, 2022, future lease payments due from the Company under the ground, office and equipment operating leases where the Company is directly responsible for payment and the future lease payments due under the ground operating leases where the Company's tenants are directly responsible for payment over the next five years and thereafter were as follows:

(in thousands)	Office and Equipment Leases		Ground Leases to be Paid by the Company		Ground Leases to be Paid Directly by the Company’s Tenants		Total Future Minimum Base Rental Payments
2023	$	525	$	135	$	773	$	1,433
2024	531		28		728		1,287
2025	538		—		653		1,191
2026	—		—		658		658
2027	—		—		671		671
Thereafter	—		—		15,453		15,453
Total	$	1,594	$	163	$	18,936	20,693
Present value discount							(11,714)
Lease liabilities							$	8,979

The Company has adopted the short-term lease policy election and accordingly, the table above excludes future minimum base cash rental payments by the Company or its tenants on leases that have a term of less than 12 months at lease inception. The total of such future obligations is not material.

Leases

Leases

As Lessor

The Company’s investment properties are leased to tenants under long-term operating leases that typically include one or more tenant renewal options. The Company’s leases provide for annual base rental payments (generally payable in monthly installments), and generally provide for increases in rent based on fixed contractual terms or as a result of increases in the Consumer Price Index.

Substantially all of the leases are triple-net, which means that the lessees are responsible for paying all property operating expenses, including maintenance, insurance, utilities, property taxes and, if applicable, ground rent expense; therefore, the Company is generally not responsible for repairs or other capital expenditures related to the properties while the triple-net leases are in effect and, at the end of the lease term, the lessees are responsible for returning the property to the Company in a substantially similar condition as when they took possession. Some of the Company’s leases provide that in the event the Company wishes to sell the property subject to that lease, it first must offer the lessee the right to purchase the property on the same terms and conditions as any offer which it intends to accept for the sale of the property.

Scheduled future minimum base rental payments due to be received under the remaining non-cancelable term of the operating leases in place as of December 31, 2022 were as follows:

(in thousands)	Future Minimum Base Rental Receipts
2023	$	295,823
2024	298,360
2025	298,352
2026	300,847
2027	300,685
Thereafter	3,129,043
Total	$	4,623,110

Since lease renewal periods are exercisable at the option of the lessee, the preceding table presents future minimum base rental payments to be received during the initial non-cancelable lease term only. In addition, the future minimum lease payments exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to performance thresholds and exclude increases in annual rent based on future changes in the Consumer Price Index, among other items.

The fixed and variable components of lease revenues for the years ended December 31, 2022, 2021, and 2020 were as follows:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed lease revenues	$	270,694	$	210,441	$	165,171
Variable lease revenues (1)	1,632		1,708		1,341
Total lease revenues (2)	$	272,326	$	212,149	$	166,512

_____________________________________

(1)Includes contingent rent based on a percentage of the tenant’s gross sales and costs paid by the Company for which it is reimbursed by its tenants.

(2)Excludes the amortization and accretion of above- and below-market lease intangible assets and liabilities and lease incentives and the adjustment to rental revenue for tenant credit.

As Lessee

The Company has a number of ground leases, an office lease and other equipment leases which are classified as operating leases. As of December 31, 2022, the Company's ROU assets and lease liabilities were $7.3 million and $9.0 million, respectively. As of December 31, 2021, the Company's ROU assets and lease liabilities were $7.4 million and $9.4 million, respectively. These amounts are included in rent receivables, prepaid expenses and other assets, net and accrued liabilities and other payables on the Company's consolidated balance sheets.

The discount rate applied to measure each ROU asset and lease liability is based on the Company's incremental borrowing rate ("IBR"). The Company considers the general economic environment and its historical borrowing activity and factors in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As the Company did not elect to apply hindsight, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. Certain of the Company's ground leases offer renewal options which it assesses against relevant economic factors to determine whether it is reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that the Company is reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and ROU asset.

The following table sets forth information related to the measurement of the Company's lease liabilities as of the dates presented:

	December 31, 2022	December 31, 2021
Weighted average remaining lease term (in years)	22.9	21.5
Weighted average discount rate	6.09%	6.08%

The following table sets forth the details of rent expense for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed rent expense - Ground Rent	$	981	$	957	$	905
Fixed rent expense - Office Rent	511		510		512
Variable rent expense	—		—		—
Total rent expense	$	1,492	$	1,467	$	1,418

As of December 31, 2022, future lease payments due from the Company under the ground, office and equipment operating leases where the Company is directly responsible for payment and the future lease payments due under the ground operating leases where the Company's tenants are directly responsible for payment over the next five years and thereafter were as follows:

(in thousands)	Office and Equipment Leases		Ground Leases to be Paid by the Company		Ground Leases to be Paid Directly by the Company’s Tenants		Total Future Minimum Base Rental Payments
2023	$	525	$	135	$	773	$	1,433
2024	531		28		728		1,287
2025	538		—		653		1,191
2026	—		—		658		658
2027	—		—		671		671
Thereafter	—		—		15,453		15,453
Total	$	1,594	$	163	$	18,936	20,693
Present value discount							(11,714)
Lease liabilities							$	8,979

The Company has adopted the short-term lease policy election and accordingly, the table above excludes future minimum base cash rental payments by the Company or its tenants on leases that have a term of less than 12 months at lease inception. The total of such future obligations is not material.

XML

Long Term Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Long Term Debt

Long Term Debt

The following table summarizes the Company's outstanding indebtedness as of December 31, 2022 and 2021:

		Principal Outstanding				Weighted Average Interest Rate (1)
(in thousands)	Maturity Date	December 31, 2022		December 31, 2021		December 31, 2022	December 31, 2021
Unsecured term loans:
2024 Term Loan	April 2024	$	200,000	$	200,000	5.3%	1.3%
2027 Term Loan	February 2027	430,000		430,000		5.3%	1.6%
2028 Term Loan	January 2028	400,000		—		5.3%	—%
Senior unsecured notes	July 2031	400,000		400,000		3.0%	3.0%
Revolving Credit Facility	February 2026	—		144,000		—%	1.3%
Total principal outstanding		$	1,430,000	$	1,174,000	4.6%	2.0%

______________________________________________________

(1)Interest rates are presented as stated in debt agreements and do not reflect the impact of the Company's interest rate swap and lock agreements, where applicable (see Note 6—Derivative and Hedging Activities).

The following table summarizes the scheduled principal payments on the Company’s outstanding indebtedness as of December 31, 2022:

(in thousands)	2024 Tem Loan		2027 Term Loan		2028 Term Loan		Senior Unsecured Notes		Revolving Credit Facility		Total
2023	$	—	$	—	$	—	$	—	$	—	$	—
2024	200,000		—		—		—		—		200,000
2025	—		—		—		—		—		—
2026	—		—		—		—		—		—
2027	—		430,000		—		—		—		430,000
Thereafter	—		—		400,000		400,000		—		800,000
Total	$	200,000	$	430,000	$	400,000	$	400,000	$	—	$	1,430,000

The Company was not in default of any provisions under any of its outstanding indebtedness as of December 31, 2022 or 2021.

Revolving Credit Facility, 2024 Term Loan and 2028 Term Loan

On April 12, 2019, the Company, through the Operating Partnership, entered into an amended and restated credit agreement (the “Amended Credit Agreement”) with a group of lenders, amending and restating the terms of the Company’s previous $300.0 million revolving credit facility (the “2018 Credit Facility”) to increase the maximum aggregate initial original principal amount of the revolving loans available thereunder up to $400.0 million (the “Revolving Credit Facility”) and to permit the incurrence of an additional $200.0 million in term loans thereunder (the “2024 Term Loan”). The full amount available under the 2024 Term Loan was borrowed in May 2019.

In February 2022, the Company entered into an amendment to the Amended Credit Agreement (as so amended, the "Credit Agreement") and, pursuant to such amendment, among other things, the availability of extensions of credit under the Revolving Credit Facility was increased to $600.0 million, the accordion feature was increased to $600.0 million, the borrowing base limitation on borrowings thereunder was removed, the leverage-based margin applicable to borrowings under the Revolving Credit Facility was reduced, the LIBOR reference rate was replaced with reference to the Adjusted Term SOFR rate, consistent with market practice, and the composition and extent of lender participation under the Revolving Credit Facility was changed. During the year ended December 31, 2022, in connection with this amendment, the Company recorded a $0.1 million loss on debt extinguishment related to the write-off of certain deferred financing costs on the Revolving Credit Facility.

Prior to the February 2022 amendment, the Revolving Credit Facility had a term of four years beginning on April 12, 2019, with an extension option of up to six months exercisable by the Operating Partnership, subject to certain conditions, and the 2024 Term Loan was set to mature on April 12, 2024. The loans under each of the Revolving Credit Facility and the 2024 Term Loan initially bore interest at an annual rate of applicable LIBOR plus the applicable margin (which applicable margin varied between the Revolving Credit Facility and the 2024 Term Loan). The applicable LIBOR was the rate with a term equivalent to the interest period applicable to the relevant borrowing. The applicable margin was initially a spread set according to a leverage-based pricing grid.

The Revolving Credit Facility matures on February 10, 2026, with two extension options of six months each, exercisable by the Operating Partnership subject to the satisfaction of certain conditions. The 2024 Term Loan matures on April 12, 2024. The loans under each of the Revolving Credit Facility and the 2024 Term Loan initially bear interest at an annual rate of applicable Adjusted Term SOFR (as defined in the Credit Agreement) plus an applicable margin (which applicable margin varies between the Revolving Credit Facility and the 2024 Term Loan). The Adjusted Term SOFR is a rate with a term equivalent to the interest period applicable to the relevant borrowing. In addition, the Operating Partnership is required to pay a revolving facility fee throughout the term of the Revolving Credit Facility. The applicable margin and the revolving facility fee rate are initially a spread and rate, as applicable, set according to a leverage-based pricing grid. At the Operating Partnership's election, on and after receipt of an investment grade corporate credit rating from S&P, Moody's or Fitch, the applicable margin and the revolving facility fee rate will be a spread and rate, as applicable, set according to the credit ratings provided by S&P, Moody's and/or Fitch.

In July 2022, the Credit Agreement was further amended to provide for an additional $400.0 million of second tranche term loans, which could be borrowed on a delayed draw basis (the “2028 Term Loan”). Loans under the 2028 Term Loan in an aggregate principal amount of $250.0 million were drawn in July 2022, concurrently with the closing of such amendment, and the remaining $150 million was drawn in October 2022. Such amendment also amended the applicable margin grid such that the applicable pricing for all borrowings under the Credit Agreement is based on the credit rating of the Company’s long-term senior unsecured non-credit enhanced debt for borrowed money (subject to a single step-down in the applicable pricing if the Company achieves a consolidated leverage ratio that is less than 0.35 to 1:00 while maintaining a credit rating of BBB/Baa2 from S&P, Moody's and/or Fitch), and reset the accordion feature to maintain the $600.0 million availability thereunder.

Each of the Revolving Credit Facility, the 2024 Term Loan and the 2028 Term Loan is freely pre-payable at any time. Outstanding credit extensions under the Revolving Credit Facility are mandatorily payable if the amount of such credit extensions exceeds the revolving facility limit. The Operating Partnership may re-borrow amounts paid down on the Revolving Credit Facility prior to its maturity. Loans repaid under the 2024 Term Loan and 2028 Term Loan cannot be reborrowed.

The Operating Partnership is the borrower under the Credit Agreement, and the Company and certain of its subsidiaries that own direct or indirect interests in eligible real property assets are guarantors under the Credit Agreement.

Under the terms of the Credit Agreement, the Company is subject to various restrictive financial and nonfinancial covenants which, among other things, require the Company to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios.

The Company was in compliance with all financial covenants and was not in default on any provisions under the Credit Agreement as of December 31, 2022 and 2021.

The following table presents information about the Revolving Credit Facility for the years ended December 31, 2022, 2021 and 2020:

(in thousands)	2022		2021		2020
Balance on Balance on January 1,	$	144,000	$	18,000	$	46,000
Borrowings	299,000		393,000		87,000
Repayments	(443,000)		(267,000)		(115,000)
Balance on December 31,	$	—	$	144,000	$	18,000

The following table presents information about interest expense related to the Revolving Credit Facility for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense and fees	$	2,807	$	1,552	$	1,367
Amortization of deferred financing costs	1,217		1,165		1,165
Total	$	4,024	$	2,717	$	2,532

Total deferred financing costs, net, of $3.7 million and $1.4 million related to the Revolving Credit Facility were included within rent receivables, prepaid expenses and other assets, net on the Company’s consolidated balance sheets as of December 31, 2022 and 2021, respectively.

As of December 31, 2022 and 2021, the Company had $600.0 million and $256.0 million, respectively, of unused borrowing capacity under the Revolving Credit Facility.

2027 Term Loan

On November 26, 2019, the Company, through the Operating Partnership, entered into a $430 million term loan (the “2027 Term Loan”) with a group of lenders. The 2027 Term Loan provides for term loans to be drawn up to an aggregate amount of $430 million with a maturity of November 26, 2026. The Company borrowed the entire $430.0 million available under the 2027 Term Loan in separate draws in December 2019 and March 2020.

In February 2022, the Company entered into an amendment to the 2027 Term Loan to, among other things, reduce the leverage-based margin applicable to borrowings, extend the maturity date of the 2027 Term Loan to February 18, 2027, replace the LIBOR reference rate with reference to the Adjusted Term SOFR rate, consistent with market practice, and change the composition and extent of lender participation under the 2027 Term Loan. During the year ended December 31, 2022, in connection with this amendment, the Company recorded a $2.1 million loss on debt extinguishment related to fees and the write-off of certain deferred financing costs on the 2027 Term Loan.

In August 2022, the Company entered into an amendment to the 2027 Term Loan to make certain changes to provisions relating to the rates and other matters to reflect changes in market standards.

Prior to its amendment in February 2022, borrowings under the 2027 Term Loan bore interest at an annual rate of applicable LIBOR plus the applicable margin. Following this amendment, the 2027 Term Loan bears interest at an annual rate of applicable Adjusted Term SOFR plus the applicable margin. The applicable LIBOR/Adjusted Term SOFR is the rate with a term equivalent to the interest period applicable to the relevant borrowing. The applicable margin was initially a spread set according to a leverage-based pricing grid. In May 2022, the Operating Partnership made an irrevocable election to have the applicable margin be a spread set according to the Company’s corporate credit ratings provided by S&P, Moody’s and/or Fitch.

The 2027 Term Loan is pre-payable at any time by the Operating Partnership (as borrower) without penalty. The Operating Partnership may not re-borrow amounts paid down on the 2027 Term Loan. The 2027 Term Loan has an accordion feature to increase, subject to certain conditions, the maximum availability of the facility up to an aggregate of $500 million.

The Operating Partnership is the borrower under the 2027 Term Loan, and the Company and certain of its subsidiaries that own direct or indirect interests in eligible real property assets are guarantors under the facility. Under the terms of the 2027 Term Loan, the Company is subject to various restrictive financial and nonfinancial covenants which, among other things, require the Company to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios.

The Company was in compliance with all financial covenants and was not in default of any provisions under the 2027 Term Loan as of December 31, 2022 and 2021.

The following table presents information about aggregate interest expense related to the 2024 Term Loan, 2027 Term Loan and 2028 Term Loan:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense	$	23,967	$	9,819	$	11,685
Amortization of deferred financing costs	836		736		711
Total	$	24,803	$	10,555	$	12,396

Total deferred financing costs, net, of $4.5 million and $3.0 million as of December 31, 2022 and 2021, respectively, related to the Term Loan Facilities are included as a component of unsecured term loans, net of deferred financing costs on the Company’s consolidated balance sheets.

The Company fixed the interest rates on its term loan facilities’ variable-rate debt through the use of interest rate swap agreements. See Note 6—Derivative and Hedging Activities for additional information.

Senior Unsecured Notes

In June 2021, through its Operating Partnership, the Company completed a public offering of $400.0 million aggregate principal amount of 2.950% Senior Notes due 2031 (the "2031 Notes"), resulting in net proceeds of $396.6 million. The 2031 Notes were issued by the Operating Partnership, and the obligations of the Operating Partnership under the 2031 Notes are fully and unconditionally guaranteed on a senior basis by the Company. The 2031 Notes were issued at 99.8% of their principal amount. In connection with the offering of the 2031 Notes, the Operating Partnership incurred $4.7 million in deferred financing costs and an offering discount of $0.8 million.

The following is a summary of the senior unsecured notes outstanding as of December 31, 2022 and 2021:

(dollars in thousands)	Maturity Date	Interest Payment Dates	Stated Interest Rate		Principal Outstanding
2031 Notes	July 15, 2031	January 15 and July 15	2.95	%	$	400,000

The Company's senior unsecured notes are redeemable in whole at any time or in part from time to time, at the Operating Partnership's option, at a redemption price equal to the sum of:

•100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest, if any, up to, but not including, the redemption date; and

•a make-whole premium calculated in accordance with the indenture governing the notes.

The following table presents information about interest expense related to the Company's senior unsecured notes for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021
Interest expense	$	11,711	$	5,952
Amortization of deferred financing costs and original issue discount	562		295
Total	$	12,273	$	6,247

Total deferred financing costs, net, of $4.0 million and $4.5 million related to the Company's senior unsecured notes were included within senior unsecured notes, net on the Company's consolidated balance sheet as of December 31, 2022 and 2021.

The Company was in compliance with all financial covenants and was not in default of any provisions under the 2031 Notes as of December 31, 2022 and 2021.

Secured Borrowings

In the normal course of business, the Company has transferred financial assets in various transactions with Special Purpose Entities (“SPE”) determined to be VIEs, which primarily consisted of securitization trusts established for a limited purpose (the “Master Trust Funding Program”). These SPEs were formed for the purpose of securitization transactions in which the Company transferred assets to an SPE, which then issued to investors various forms of debt obligations supported by those assets. In these securitization transactions, the Company typically received cash from the SPE as proceeds for the transferred assets and retained the rights and obligations to service the transferred assets in accordance with servicing guidelines. All debt obligations issued from the SPEs were non-recourse to the Company. The Company determined that the SPEs created in connection with its Master Trust Funding Program should be consolidated as the Company was the primary beneficiary of each of these entities.

Series 2017-1 Notes

In July 2017, the Company issued a series of notes under the Master Trust Funding Program, consisting of $232.4 million of Class A Notes and $15.7 million of Class B Notes (together, the “Series 2017-1 Notes”). The Series 2017-1 Notes were issued by three SPEs formed to hold assets and issue the secured borrowings associated with the securitization.

In February 2020, the Company voluntarily prepaid $62.3 million of the Class A Series 2017-1 Notes at par plus accrued interest pursuant to the terms of the agreements related to such securities. The Company was not subject to the payment of a make whole amount in connection with this prepayment. The Company accounted for this prepayment as a debt extinguishment and recorded a $0.9 million loss related to the amortization of deferred financing costs during the year ended December 31, 2020.

In June 2021, the Company voluntarily prepaid the remaining $171.2 million of principal outstanding on the Series 2017-1 Notes and paid a make-whole premium of $2.5 million pursuant to the terms of the agreements related to such securities. The Company accounted for this prepayment as a debt extinguishment.

The following table presents information about interest expense related to the Master Trust Funding Program:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense	$	—	$	3,551	$	7,619
Amortization of deferred financing costs	—		312		656
Total	$	—	$	3,863	$	8,275

XML

Derivative and Hedging Activities

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Hedging Activities

Derivative and Hedging Activities

The Company does not enter into derivative financial instruments for speculative or trading purposes. The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

These derivatives are considered cash flow hedges and are recorded on a gross basis at fair value. Subsequent to the adoption of ASU 2017-12, assessments of hedge effectiveness are performed quarterly using either a qualitative or quantitative approach. The Company recognizes the entire change in the fair value in accumulated other comprehensive income (loss) and the change is reflected as derivative changes in fair value in the supplemental disclosures of non-cash financing activities in the consolidated statements of cash flows. The amounts recorded in accumulated other comprehensive income (loss) will subsequently be reclassified to interest expense as interest payments are made on the Company's borrowings under its variable-rate term loan facilities. During the next twelve months, the Company estimates that $26.6 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense. The Company does not have netting arrangements related to its derivatives.

The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. As of December 31, 2022 and 2021, there were no events of default related to the Company's derivative financial instruments.

The following table summarizes the notional amount at inception and fair value of these instruments on the Company's balance sheets as of December 31, 2022 and 2021 (dollar amounts in thousands):

						Fair Value of Asset/(Liability)(3)(4)
Derivatives Designated as Hedging Instruments	Fixed Rate Paid by Company	Effective Date	Maturity Date	Notional Value (2)		December 31, 2022		December 31, 2021
Interest Rate Swap (1)	1.96%	5/14/2019	4/12/2024	$	100,000	$	3,545	$	(2,747)
Interest Rate Swap (1)	1.95%	5/14/2019	4/12/2024	50,000		1,781		(1,374)
Interest Rate Swap (1)	1.94%	5/14/2019	4/12/2024	50,000		1,777		(1,377)
Interest Rate Swap (1)	1.52%	12/9/2019	11/26/2026	175,000		14,685		(3,444)
Interest Rate Swap (1)	1.51%	12/9/2019	11/26/2026	50,000		4,248		(996)
Interest Rate Swap (1)	1.49%	12/9/2019	11/26/2026	25,000		2,120		(481)
Interest Rate Swap (1)	1.26%	7/9/2020	11/26/2026	100,000		9,324		(790)
Interest Rate Swap (1)	1.28%	7/9/2020	11/26/2026	80,000		7,418		(629)
Interest Rate Swap	3.19%	9/26/2022	1/25/2028	50,000		1,166		—
Interest Rate Swap	3.35%	9/26/2022	1/25/2028	50,000		804		—
Interest Rate Swap	3.36%	9/26/2022	1/25/2028	25,000		387		—
Interest Rate Swap	3.43%	9/26/2022	1/25/2028	50,000		612		—
Interest Rate Swap	3.71%	9/26/2022	1/25/2028	50,000		(12)		—
Interest Rate Swap	3.70%	9/26/2022	1/25/2028	25,000		(15)		—
Interest Rate Swap	4.00%	10/26/2022	1/25/2028	50,000		(693)		—
Interest Rate Swap	3.95%	11/28/2022	1/25/2028	25,000		(293)		—
Interest Rate Swap	4.03%	11/28/2022	1/25/2028	25,000		(396)		—
Interest Rate Swap	4.06%	11/28/2022	1/25/2028	25,000		(427)		—
Interest Rate Swap	4.07%	11/28/2022	1/25/2028	25,000		(428)		—
				$	1,030,000	$	45,603	$	(11,838)

 _____________________________________

(1)In June 2022, the Company converted the reference rate used in these interest rate swaps from 1-month LIBOR to 1-month Adjusted Term SOFR.

(2)Notional value indicates the extent of the Company’s involvement in these instruments, but does not represent exposure to credit, interest rate or market risks.

(3)Derivatives in a liability position totaling $2.3 million as of December 31, 2022 are included within derivative liabilities in the Company’s consolidated balance sheets.

(4)Derivatives in an asset position totaling to $47.9 million as of December 31, 2022 are included within derivative assets in the Company’s consolidated balance sheets.

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

In May 2021, in anticipation of the issuance of the 2031 Notes (which was completed in June 2021), the Company entered into a treasury rate lock agreement which was designated as a cash flow hedge associated with $330.0 million of principal. In June 2021, the agreement was settled in accordance with its terms. The Company recorded a deferred loss of $4.8 million from the settlement of this treasury rate lock agreement, which was recognized as a component of other comprehensive income (loss) in the Company's consolidated statements of comprehensive income/(loss) for the year ended December 31, 2021.

The following table presents amounts recorded to accumulated other comprehensive income/loss related to derivative and hedging activities for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Accumulated other comprehensive income (loss)	$	56,762	$	22,508	$	(35,445)

As of December 31, 2022, the fair value of derivatives in a net asset position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $48.2 million. As of

December 31, 2022, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $2.4 million. 

As of December 31, 2021, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $11.9 million. As of December 31, 2021, there were no derivatives in a net asset position.

During the year ended December 31, 2022, the Company recorded a gain on the change in fair value of its interest rate swaps of approximately $26,000 and during the years ended December 31, 2021 and 2020, the Company recorded a loss on the change in fair value of its interest rate swaps of $10.1 million and $6.7 million, respectively. These gains and losses are included in interest expense in the Company's consolidated statements of operations for the respective periods.

As of December 31, 2022 and December 31, 2021, the Company had not posted any collateral related to these agreements and was not in breach of any provisions of such agreements. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value, which were a $45.9 million asset and $11.9 million liability as of December 31, 2022 and 2021, respectively.

XML

Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Equity

Equity

Stockholders' Equity

In January 2020, the Company completed a follow-on offering of 7,935,000 shares its common stock, including 1,035,000 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares, at an offering price of $25.20 per share. Net proceeds from this follow-on offering, after deducting underwriting discounts and commissions and other expenses, were $191.5 million.

In September 2020, the Company completed a follow-on offering of 10,120,000 shares its common stock, including 1,320,000 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares, at an offering price of $19.00 per share. Net proceeds from this follow-on offering, after deducting underwriting discounts and commissions and other expenses, were $184.1 million.

In April 2021, the Company completed a follow-on offering of 8,222,500 shares of its common stock, including 1,072,500 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares, at a public offering price of $23.50 per share. Net proceeds from this follow-on offering, after deducting underwriting discounts and commissions and other expenses, were $185.1 million.

In August 2022, the Company completed a follow-on offering of 8,740,000 shares of its common stock, including 1,140,000 shares of common stock purchased by the underwriters pursuant to an option to purchase additional shares, at a public offering price of $23.00 per share. Net proceeds from this follow-on offering, after deducting underwriting discounts and commissions and other expenses, were $192.6 million.

At the Market Program

In May 2022, the Company established a new at the market common equity offering program, pursuant to which it can publicly offer and sell, from time to time, shares of its common stock with an aggregate gross sales price of up to $500 million (the "2022 ATM Program") through the identified sales agents, as its sales agents or, if applicable, as forward sellers, or directly to such agents as principals. In addition to the issuance and sale by the Company of shares to or through the agents, the 2022 ATM Program also permits the Company to enter into separate forward sale agreements with the identified forward purchasers. Refernces to our "ATM Program" are to the 2022 ATM Program or the 2022 ATM Program and our prior ATM programs as the context requires.

The following table presents information about the 2022 ATM Program and the Company's prior ATM Programs:

Program Name	Date Established	Date Terminated	Maximum Sales Authorization		Gross Sales through December 31, 2022
2019 ATM Program	August 2019	June 2020	$	200,000	$	184,400
2020 ATM Program	June 2020	July 2021	$	250,000	$	166,800
2021 ATM Program	July 2021	May 2022	$	350,000	$	348,140
2022 ATM Program (1)	May 2022		$	500,000	$	75,419

_____________________________________

(1)Includes 957,453 shares as of December 31, 2022 that the Company sold on a forward basis that were physically settled for cash in January 2023.

The following table details information related to activity under the ATM Program for each period presented:

	Year ended December 31,
(in thousands, except share and per share data)	2022		2021		2020
Shares of common stock sold (1)	9,794,137		10,005,890		4,499,057
Weighted average sale price per share	$	24.00	$	27.58	$	19.02
Gross proceeds	$	235,060	$	275,972	$	85,559
Net proceeds	$	232,478	$	271,949	$	84,104

_____________________________________

(1)Includes 957,453 shares during the year ended December 31, 2022 that the Company sold on a forward basis that were physically settled for cash in January 2023.

Dividends on Common Stock

During the years ended December 31, 2022, 2021 and 2020, the Company's board of directors declared the following quarterly cash dividends on common stock: 

Date Declared	Record Date	Date Paid	Dividend per Share of Common Stock		Total Dividend (dollars in thousands)
November 30, 2022	December 30, 2022	January 13, 2023	$	0.275	$	39,246
September 2, 2022	September 30, 2022	October 14, 2022	$	0.27	$	38,533
June 2, 2022	June 30, 2022	July 14, 2022	$	0.27	$	35,916
March 14, 2022	March 31, 2022	April 13, 2022	$	0.26	$	34,188
December 3, 2021	December 31, 2021	January 13, 2022	$	0.26	$	32,466
September 2, 2021	September 30, 2021	October 14, 2021	$	0.25	$	30,397
May 27, 2021	June 30, 2021	July 15, 2021	$	0.25	$	29,559
March 5, 2021	March 31, 2021	April 15, 2021	$	0.24	$	26,265
December 3, 2020	December 31, 2020	January 15, 2021	$	0.24	$	25,570
September 4, 2020	September 30, 2020	October 15, 2020	$	0.23	$	24,115
June 11, 2020	June 30, 2020	July 15, 2020	$	0.23	$	21,419
March 18, 2020	March 31, 2020	April 15, 2020	$	0.23	$	21,168

The Company has determined that, during the years ended December 31, 2022, 2021 and 2020, approximately 79.7%, 69.4% and 59.0%, respectively, of the distributions it paid represented taxable income and 20.3%, 30.6% and 41.0%, respectively, of the distributions it paid represented return of capital for federal income tax purposes.

XML

Non-controlling Interests

12 Months Ended

Dec. 31, 2022

Noncontrolling Interest [Abstract]

Non-controlling Interests

Non-controlling InterestsEssential Properties OP G.P., LLC, a wholly owned subsidiary of the Company, is the sole general partner of the Operating Partnership and holds a 1.0% general partner interest in the Operating Partnership. The Company contributes the net proceeds from issuing shares of common stock to the Operating Partnership in exchange for a number of OP Units equal to the number of shares of common stock issued.

As of December 31, 2022, the Company held 142,379,655 OP Units, representing a 99.6% limited partner interest in the Operating Partnership. As of the same date, certain members of management and external parties (the "Non-controlling OP Unit Holders") held 553,847 OP Units in the aggregate, representing a 0.4% limited partner interest in the Operating Partnership. As of December 31, 2021, the Company held 124,649,053 OP Units, representing a 99.6% limited partner interest in the Operating Partnership and the Non-controlling OP Unit Holders held 553,847 OP Units in the aggregate, representing a 0.4% limited partner interest in the Operating Partnership. The OP Units held by the Non-controlling OP Unit Holders are presented as non-controlling interests in the Company's consolidated financial statements.

A holder of OP Units has the right to distributions per unit equal to dividends per share paid on the Company's common stock and has the right to redeem OP Units for cash or, at the Company's election, shares of the Company's common stock on a one-for-one basis, provided, however, that such OP Units must have been outstanding for at least one year. Distributions to OP Unit holders are declared and paid concurrently with the Company's cash dividends to common stockholders. See Note 7—Equity for details.

XML

Equity Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Equity Based Compensation

Equity Based Compensation

Equity Incentive Plan

In 2018, the Company adopted an equity incentive plan (the “Equity Incentive Plan”), which provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock awards, performance awards and LTIP units. Officers, employees, non-employee directors, consultants, independent contractors and agents who provide services to the Company or to any subsidiary of the Company are eligible to receive such awards. A maximum of 3,550,000 shares may be issued under the Equity Incentive Plan, subject to certain conditions.

The following table presents information about the Company's restricted stock awards ("RSAs") and restricted stock units ("RSUs") during the years ended December 31, 2022, 2021 and 2020:

	Restricted Stock Awards			Restricted Stock Units
	Shares	Wtd. Avg. Grant Date Fair Value		Units	Wtd. Avg. Grant Date Fair Value
Unvested, January 1, 2020	492,701	$	13.72	100,814	$	22.80
Granted	3,658	15.68		269,017	24.99
Vested	(255,761)	13.73		(42,658)	21.00
Forfeited	—	—		(5,571)	—
Unvested, December 31, 2020	240,598	$	13.73	321,602	$	25.27
Unvested, January 1, 2021	240,598	$	13.73	321,602	$	25.27
Granted	—	—		213,686	31.78
Vested	(221,694)	13.70		(72,879)	18.83
Forfeited	—	—		(7,717)	23.52
Unvested, December 31, 2021	18,904	$	14.12	454,692	$	29.39
Unvested, January 1, 2022	18,904	$	14.12	454,692	$	29.39
Granted	—	—		607,347	29.08
Vested	(9,865)	14.12		(243,640)	25.70
Forfeited	—	—		(1,019)	27.25
Unvested, December 31, 2022	9,039	$	14.12	817,380	$	30.26

Restricted Stock Awards

On June 25, 2018, an aggregate of 691,290 shares of RSAs were issued to the Company's directors, executive officers and other employees under the Equity Incentive Plan. These RSAs vested over periods ranging from one year to three years from the date of grant, subject to the individual recipient's continued provision of service to the Company through the applicable vesting dates.

In January 2019, RSAs relating to an aggregate of 46,368 shares of unvested restricted common stock were granted to the Company's executive officers, other employees and an external consultant under the Equity Incentive Plan. These RSAs vest over periods ranging from one year to four years from the date of grant, subject to the individual recipient's continued provision of service to the Company through the applicable vesting dates. In June 2020, additional RSAs relating to an aggregate of 3,658 shares of unvested restricted common stock were granted to certain members of the Company's board of directors which vested immediately upon grant. The Company estimates the grant date fair value of RSAs granted under the Equity Incentive Plan using the average market price of the Company's common stock on the date of grant.

The following table presents information about the Company's RSAs for the periods presented: 

	Year ended December 31,
(in thousands)	2022		2021		2020
Compensation cost recognized in general and administrative expense	$	128	$	1,548	$	3,405
Dividends declared on unvested RSAs and charged directly to distributions in excess of cumulative earnings	8		70		279
Fair value of shares vested during the period	139		3,037		3,512

The following table presents information about the Company's RSAs as of the dates presented: 

	December 31,
(Dollars in thousands)	2022		2021
Total unrecognized compensation cost	$	2	$	130
Weighted average period over which compensation cost will be recognized (in years)	0.1		1.0

Restricted Stock Units

In 2019, 2020, 2021, and 2022, the Company issued target grants of 119,085, 84,684, 126,353, and 149,699 performance-based RSUs, respectively, to members of the Company's senior management team under the Equity Incentive Plan. Of these awards, 75% are non-vested RSUs for which vesting percentages and the ultimate number of units vesting will be calculated based on the total shareholder return ("TSR") of the Company's common stock as compared to the TSR of peer companies identified in the grant agreements. The payout schedule can produce vesting percentages ranging from 0% to 250% of target. TSR is calculated over the performance period for each award based upon the average closing price for the 20-trading day period ending December 31st of the year prior to grant divided by the average closing price for the 20-trading day period ending December 31st of the third year following the grant. The target number of units is based on achieving a TSR equal to the 50th percentile of the peer group. The Company records expense on these TSR RSUs based on achieving the target.

The grant date fair value of the TSR RSUs was measured using a Monte Carlo simulation model based on the following assumptions:

	Grant Year
	2022	2021	2020
Volatility	54%	55%	20%
Risk free rate	1.68%	0.20%	1.61%

The remaining 25% of these performance-based RSUs vest based on the Compensation Committee's subjective evaluation of the individual recipient's achievement of certain strategic objectives over the performance period of the award. In May 2020, the Compensation Committee evaluated and subjectively awarded 7,596 of these RSUs to a former executive officer of the Company, which vested immediately. In January 2022, the Compensation Committee identified specific performance targets and completed its subjective evaluation in relation to the performance-based RSUs granted in 2019 and concluded that 78,801 RSUs should be awarded. 50% of these RSUs vested immediately and the remaining 50% vested on December 31, 2022. During the year ended December 31, 2022, the Company recorded $2.1 million of compensation expense with respect to these performance-based RSUs granted in 2019. As of December 31, 2022, the Compensation Committee had not identified specific performance targets relating to the individual recipients' achievement of strategic objectives for the subjective awards granted in 2020, 2021 and 2022. As such, these awards do not have either a service inception or

a grant date for GAAP accounting purposes and the Company recorded no compensation expense with respect to this portion of the performance-based RSUs during the years ended December 31, 2022, 2021 and 2020.

In June 2020 and May 2021, the Company issued 26,817 and 16,765 RSUs, respectively, to the Company's independent directors. These awards vested in full on the earlier of one year from the grant date or the first annual meeting of stockholders that occurs after the grant date, to the individual recipient's continued provision of service to the Company through the applicable vesting date. The Company estimated the grant date fair value of these RSUs using the average market price of the Company's common stock on the date of grant.

In 2020, 2021 and 2022, the Company issued an aggregate of 157,943, 118,921 and 199,793 RSUs, respectively, to the Company’s executive officers, other employees and directors under the Equity Incentive Plan. These awards vest over a period of up to five years from the date of grant, subject to the individual recipient’s continued provision of service to the Company through the applicable vesting dates.

In January 2022, the Company issued 69,372 performance-based RSUs (at target) to an executive officer

under the Equity Incentive Plan. These RSUs vest based on the compound annual growth rate of the Company's

adjusted funds from operations ("AFFO CAGR") over a five year performance period, and the payout schedule can

produce vesting percentages ranging from 0% to 200% of target. To the extent the performance goal is achieved,

these performance-based RSUs will vest in 50% increments on each of the four-year and five-year anniversary of

the grant date, subject to the recipient's continued provision of service to the Company through the applicable

vesting dates. As of December 31, 2022, based on its AFFO CAGR forecasts, the Company believes it is probable

that the maximum performance level will be achieved and recorded $0.9 million of compensation

expense based off of this estimate during the year ended December 31, 2022.

A portion of the RSUs that vested in 2022 and 2021 were net share settled such that the Company withheld shares with a value equal to the relevant employee's income and employment tax obligations with respect to the vesting and remitted a cash payment to the appropriate taxing authorities.

The following table presents information about the Company's RSUs for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Compensation cost recognized in general and administrative expense	$	9,361	$	4,135	$	2,672
Dividend equivalents declared and charged directly to distributions in excess of cumulative earnings	366		241		125
Fair value of units vested during the period	6,262		1,372		896

The following table presents information about the Company's RSUs as of the dates presented:

	December 31,
(Dollars in thousands)	2022		2021
Total unrecognized compensation cost	$	13,761	$	7,735
Weighted average period over which compensation cost will be recognized (in years)	2.8		2.3

XML

Net Income Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per ShareThe Company computes net income per share pursuant to the guidance in FASB ASC Topic 260, Earnings Per Share. The guidance requires the classification of the Company’s unvested restricted common stock and units, which contain rights to receive non-forfeitable dividends or dividend equivalents, as participating securities requiring the two-class method of computing net income per share. Diluted net income per share of common stock further considers the effect of potentially dilutive shares of common stock outstanding during the period, including the assumed vesting of restricted share units with a market-based or service-based vesting condition, where dilutive. The OP Units held by non-controlling interests represent potentially dilutive securities as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one-for-one basis.

The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share (dollars in thousands):

	Year ended December 31,
(dollar amounts in thousands)	2022		2021		2020
Numerator for basic and diluted earnings per share:
Net income	$	134,742	$	96,211	$	42,528
Less: net income attributable to non-controlling interests	(612)		(486)		(255)
Less: net income allocated to unvested restricted common stock and RSUs	(374)		(311)		(404)
Net income available for common stockholders: basic	133,756		95,414		41,869
Net income attributable to non-controlling interests	612		486		255
Net income available for common stockholders: diluted	$	134,368	$	95,900	$	42,124
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding	134,950,418		116,479,322		95,664,071
Less: weighted average number of shares of unvested restricted common stock	(9,230)		(121,263)		(353,036)
Weighted average shares outstanding used in basic net income per share	134,941,188		116,358,059		95,311,035
Effects of dilutive securities: (1)
OP Units	553,847		553,847		553,847
Unvested restricted common stock and RSUs	356,044		554,432		332,823
Forward sales through ATM Program	4,837		—		—
Weighted average shares outstanding used in diluted net income per share	135,855,916		117,466,338		96,197,705

_____________________________________

(1)For the years ended December 31, 2022 and 2020 excludes the impact of 171,059 and 124,295 unvested restricted stock units, respectively, as the effect would have been antidilutive.

XML

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

As of December 31, 2022, the Company had remaining future commitments, under mortgage notes, reimbursement obligations or similar arrangements, to fund $34.6 million to its tenants for development, construction and renovation costs related to properties leased from the Company.

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company or its properties.

Environmental Matters

In connection with the ownership of real estate, the Company may be liable for costs and damages related to environmental matters. As of December 31, 2022, the Company had not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the Company's business, financial condition, results of operations or liquidity.

Defined Contribution Retirement Plan

The Company has a defined contribution retirement savings plan qualified under Section 401(a) of the Code (the "401(k) Plan"). The 401(k) Plan is available to all of the Company's full-time employees. The Company provides a matching contribution in cash equal to 100% of the first 6% of eligible compensation contributed by participants which vests immediately.

The following table presents the matching contributions made by the Company for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31,
(in thousands)	2022		2021		2020
401(k) matching contributions	$	318	$	205	$	165

Employment Agreements

The Company has employment agreements with its executive officers. These employment agreements have an initial term of four years, with automatic one year extensions unless notice of non-renewal is provided by either party. These agreements provide for initial annual base salaries and an annual performance bonus. If an executive officer's employment terminates under certain circumstances, the Company would be liable for any annual performance bonus awarded for the year prior to termination, to the extent unpaid, continued payments equal to 12 months of base salary, monthly reimbursement for 12 months of COBRA premiums, and under certain situations, a pro rata bonus for the year of termination.

XML

Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs.  

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures regularly and, depending on various factors, it is possible that an asset or liability may be classified differently from period to period. However, the Company expects that changes in classifications between levels will be rare.

In addition to the disclosures for assets and liabilities required to be measured at fair value at the balance sheet date, companies are required to disclose the estimated fair values of all financial instruments, even if they are not presented at their fair value on the consolidated balance sheet. The fair values of financial instruments are estimates based upon market conditions and perceived risks at December 31, 2022 and 2021. These estimates require management's judgment and may not be indicative of the future fair values of the assets and liabilities.

Financial assets and liabilities for which the carrying values approximate their fair values include cash and cash equivalents, restricted cash, accounts receivable included within prepaid expenses and other assets, dividends payable and accrued liabilities and other payables. Generally, these assets and liabilities are short term in duration and their carrying value approximates fair value on the consolidated balance sheets.

The estimated fair values of the Company's fixed‑rate loans receivable have been derived based on primarily unobservable market inputs such as interest rates and discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. These measurements are classified as Level 3 within the fair value hierarchy. The Company believes the carrying value of its fixed-rate loans receivable approximates fair value as of December 31, 2022 and 2021.

The estimated fair values of the Company's borrowings under the Revolving Credit Facility, the 2024 Term Loan, the 2027 Term Loan and the 2028 Term Loan have been derived based on primarily unobservable market inputs such as interest rates and discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. These measurements are classified as Level 3 within the fair value hierarchy. The Company believes the carrying value of its borrowings under the Revolving Credit Facility, the 2024 Term Loan, the 2027 Term Loan and the 2028 Term Loan as of December 31, 2022 and 2021 approximate fair value.

The Company measures the fair value of its senior unsecured notes and derivative financial instruments on a recurring basis. The fair values of these financial assets were determined using the following input levels as of the dates presented: 

	Net Carrying				Fair Value Measurements Using Fair Value Hierarchy
(in thousands)	Value		Fair Value		Level 1		Level 2		Level 3
December 31, 2022
Financial assets:
Senior unsecured notes (1)	$	395,286	$	292,120	$	292,120	$	—	$	—
Interest rate swaps	45,603		45,603		—		45,603		—
December 31, 2021
Financial assets:
Senior unsecured notes (1)	$	394,723	$	400,640	$	400,640	$	—	$	—
Interest rate swaps	(11,838)		(11,838)		—		(11,838)		—

_____________________________________

(1)Carrying value is net of $4.0 million and $4.5 million of net deferred financing costs and $0.7 million and $0.8 million of net discount as of December 31, 2022 and 2021, respectively.

The Company measures its real estate investments at fair value on a nonrecurring basis. The fair values of these real estate investments were determined using the following input levels as of the dates presented: 

	Net Carrying				Fair Value Measurements Using Fair Value Hierarchy
(in thousands)	Value		Fair Value		Level 1		Level 2		Level 3
December 31, 2022
Non-financial assets:
Long-lived assets	$	12,144	$	12,144	$	—	$	—	$	12,144
December 31, 2021
Non-financial assets:
Long-lived assets	$	—	$	—	$	—	$	—	$	—

Long-Lived Assets

The Company reviews its investments in real estate when events or circumstances change indicating that the carrying amount of an asset may not be recoverable. In the evaluation of an investment in real estate for impairment, many factors are considered, including estimated current and expected operating cash flows from the asset during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of the asset in the ordinary course of business.

Quantitative information about Level 3 fair value measurements as of December 31, 2022 is as follows:

(dollar amounts in thousands)	Fair Value		Valuation Techniques	Significant Unobservable Inputs
Non-financial assets:
Long-lived assets:
Equipment rental and sales	$	7,337	Sales comparison approach	Comparable sales price	$	7,337
Quick service restaurant	465		Discounted cash flow approach	Terminal Value: 8.0% Discount Rate: 8.5%	465
Pet care services	2,699		Discounted cash flow approach	Terminal Value: 5.0% Discount Rate: 6.0%	2,699
Pet care services	1,643		Discounted cash flow approach	Terminal Value: 8.0% Discount Rate: 8.5%	1,643

The fair values of impaired real estate were determined by using the following information, depending on availability, in order of preference: i) signed purchase and sale agreements or letters of intent; ii) recently quoted bid or ask prices; iii) estimates of future cash flows, which consider, among other things, contractual and forecasted rental revenues, leasing assumptions, terminal capitalization rates, discount rates and expenses based upon market conditions; or iv) expectations for the use of the real estate. Based on these inputs, the Company determined that its valuation of the impaired real estate falls within Level 3 of the fair value hierarchy.

XML

Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has evaluated all events and transactions that occurred after December 31, 2022 through the filing of this Annual Report on Form 10-K and determined that there have been no events that have occurred that would require adjustment to disclosures in the consolidated financial statements except as disclosed below.

Equity Awards

In January 2023, the Company issued an aggregate of 30,135 shares of unvested RSUs to certain of the Company’s employees under the Equity Incentive Plan. These awards vest over a period of up to four years from the date of grant, subject to the individual recipient’s continued provision of service to the Company through the applicable vesting dates.

Subsequent Acquisition and Disposition Activity

Subsequent to December 31, 2022, the Company acquired 13 real estate properties with an aggregate investment (including acquisition costs) of $56.9 million and invested $5.5 million in new and ongoing construction in progress and reimbursements to tenants for development, construction and renovation costs. In addition, the Company invested $3.4 million in mortgage loans receivable subsequent to December 31, 2022.

Subsequent to December 31, 2022, the Company sold or transferred its investment in 8 real estate properties for an aggregate gross sales price of $19.7 million and incurred approximately $1.0 million of disposition costs related to these transactions.

2022 ATM Program Activity

In January 2023, the Company sold 857,643 shares of its common stock under the 2022 ATM Program for gross proceeds of $20.7 million. Of these shares, 731,185 were sold on a forward basis.

Forward ATM Settlement

In January 2023, the Company physically settled 1,688,638 shares of its common stock sold on a forward basis under the 2022 ATM Program for net proceeds of $39.2 million, including 957,453 shares sold on a forward basis during the year ended December 31, 2022 and 731,185 shares sold a forward basis in January 2023

XML

Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III - Real Estate and Accumulated Depreciation

ESSENTIAL PROPERTIES REALTY TRUST, INC. AND ESSENTIAL PROPERTIES REALTY TRUST, INC. PREDECESSOR

Schedule III - Real Estate and Accumulated Depreciation

As of December 31, 2022

(Dollar amounts in thousands)

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Automotive Service
Alabama	2	$	770	$	882	$	—	$	—	$	770	$	882	$	1,652	$	(94)	1988-1991	2019-2019
Arizona	10	11,078		20,169		—		—		11,078		20,169		31,247		(1,154)		1962-2018	2020-2021
California	4	4,502		8,499		—		—		4,502		8,499		13,001		(385)		1953-1991	2021-2022
Colorado	7	6,027		11,544		—		—		6,027		11,544		17,571		(512)		1990-2008	2021-2022
Florida	3	1,862		2,642		—		523		1,862		3,165		5,027		(572)		1980-2000	2017-2017
Georgia	19	9,198		20,490		—		—		9,198		20,490		29,688		(785)		1976-2006	2017-2022
Illinois	7	3,931		8,499		—		—		3,931		8,499		12,430		(344)		1969-1999	2019-2022
Indiana	8	1,509		4,617		—		302		1,509		4,919		6,428		(171)		1957-1998	2018-2022
Kansas	7	3,009		4,366		—		—		3,009		4,366		7,375		(203)		1981-2018	2021-2021
Maryland	2	2,667		7,848		—		—		2,667		7,848		10,515		(1,187)		1952-2009	2017-2018
Michigan	9	4,420		9,153		—		—		4,420		9,153		13,573		(1,077)		1955-2014	2017-2022
Minnesota	6	4,177		7,910		180		25		4,357		7,935		12,292		(1,084)		1973-1999	2016-2021
Missouri	5	2,544		6,265		—		—		2,544		6,265		8,809		(257)		1976-2003	2021-2022
Mississippi	5	1,948		3,114		—		—		1,948		3,114		5,062		(179)		1990-1992	2021-2021
North Carolina	9	3,249		3,366		—		—		3,249		3,366		6,615		(515)		1990-2008	2018-2020
Nebraska	1	1,177		479		—		—		1,177		479		1,656		(37)		1995-1995	2021-2021
New Jersey	15	18,363		21,101		—		—		18,363		21,101		39,464		(1,749)		1947-1995	2020-2020
New Mexico	3	800		3,016		—		50		800		3,066		3,866		(110)		1989-1994	2021-2022
New York	7	3,235		6,667		—		—		3,235		6,667		9,902		(1,017)		1978-1998	2016-2020
Ohio	3	1,480		2,955		—		—		1,480		2,955		4,435		(299)		1960-2004	2018-2020
Oklahoma	20	9,013		27,923		—		—		9,013		27,923		36,936		(2,074)		1967-2019	2018-2021
Oregon	2	1,076		1,104		—		—		1,076		1,104		2,180		(39)		1984-1984	2022-2022
Pennsylvania	4	4,056		5,360		—		—		4,056		5,360		9,416		(585)		1968-2012	2017-2020
South Carolina	1	388		286		—		—		388		286		674		(36)		2007-2007	2020-2020
Tennessee	4	2,584		3,368		—		—		2,584		3,368		5,952		(394)		1990-2016	2017-2022
Texas	16	11,782		26,633		—		300		11,782		26,933		38,715		(2,872)		1971-2017	2016-2021
Virginia	1	224		734		—		—		224		734		958		(71)		2006-2006	2020-2020
Wisconsin	9	3,175		7,554		—		74		3,175		7,628		10,803		(239)		1985-1997	2021-2022
West Virginia	6	1,985		4,519		—		—		1,985		4,519		6,504		(258)		1983-2007	2020-2022
Building Materials
Alabama	2	$	2,060	$	3,640	$	—	$	—	$	2,060	$	3,640	$	5,700	$	(719)	1975-2002	2017-2017
Colorado	1	760		403		—		—		760		403		1,163		(80)		1983-1983	2017-2017
Florida	1	934		638		—		—		934		638		1,572		(126)		2003-2003	2017-2017
Georgia	2	2,338		4,165		—		—		2,338		4,165		6,503		(823)		2003-2004	2017-2017
Indiana	2	1,072		1,619		—		—		1,072		1,619		2,691		(183)		1979-1989	2020-2020
Kentucky	1	414		200		—		—		414		200		614		(40)		1984-1984	2017-2017
Michigan	3	4,438		8,425		—		—		4,438		8,425		12,863		(851)		1973-1995	2020-2020

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Ohio	6	3,011		4,573		—		—		3,011		4,573		7,584		(904)		1953-1996	2017-2017
South Carolina	1	1,097		172		—		—		1,097		172		1,269		(34)		1983-1983	2017-2017
Texas	4	5,228		3,746		—		—		5,228		3,746		8,974		(741)		1972-1985	2017-2017
Car Washes
Alabama	3	$	4,357	$	2,722	$	—	$	—	$	4,357	$	2,722	$	7,079	$	(195)	2020-2020	2020-2022
Arkansas	3	2,376		7,567		—		—		2,376		7,567		9,943		(791)		1997-2019	2017-2022
Arizona	7	11,534		16,537		—		—		11,534		16,537		28,071		(1,699)		1988-2021	2016-2020
Colorado	10	8,671		19,739		—		595		8,671		20,334		29,005		(2,258)		2002-2018	2017-2021
Florida	5	7,602		18,693		—		—		7,602		18,693		26,295		(1,013)		2017-2021	2019-2022
Georgia	18	23,675		54,420		—		775		23,675		55,195		78,870		(6,675)		1967-2020	2016-2022
Iowa	3	6,645		4,332		—		500		6,645		4,832		11,477		(438)		2020-2021	2019-2022
Illinois	1	1,674		3,227		—		—		1,674		3,227		4,901		(254)		2018-2018	2020-2020
Indiana	4	2,249		11,175		—		—		2,249		11,175		13,424		(50)		1979-2008	2022-2022
Louisiana	2	1,422		5,534		—		—		1,422		5,534		6,956		(642)		2012-2017	2017-2020
Maryland	2	1,306		4,977		—		—		1,306		4,977		6,283		(813)		1998-2016	2017-2018
Michigan	1	1,268		—		—		—		1,268		—		1,268				0-0	2022-2022
Mississippi	1	666		973		—		—		666		973		1,639		(103)		2008-2008	2020-2020
North Carolina	3	3,159		6,813		—		—		3,159		6,813		9,972		(438)		2003-2020	2019-2022
Nebraska	1	597		2,569		—		—		597		2,569		3,166		(175)		2021-2021	2019-2019
New Mexico	4	2,461		12,216		—		—		2,461		12,216		14,677		(2,124)		1982-2013	2017-2017
New York	6	3,476		15,676		—		—		3,476		15,676		19,152		(307)		1985-2022	2022-2022
Ohio	6	6,911		18,490		—		—		6,911		18,490		25,401		(795)		1990-2017	2021-2022
Oklahoma	2	2,536		2,077		—		—		2,536		2,077		4,613		(150)		2016-2016	2021-2022
South Carolina	1	793		4,031		—		—		793		4,031		4,824		(622)		2008-2008	2017-2017
South Dakota	6	5,890		14,859		—		1,225		5,890		16,084		21,974		(1,551)		1987-2017	2019-2019
Tennessee	1	832		—		—		—		832		—		832				2022-2022	2022-2022
Texas	11	16,652		29,511		—		350		16,652		29,861		46,513		(2,264)		1942-2020	2020-2022
Virginia	13	17,909		35,245		—		—		17,909		35,245		53,154		(98)		1981-2021	2022-2022
Convenience Stores
Arkansas	10	$	6,909	$	8,382	$	—	$	50	$	6,909	$	8,432	$	15,341	$	(1,772)	1979-2012	2019-2019
Arizona	1	977		827		—		—		977		827		1,804		(205)		1985-1985	2018-2018
Colorado	2	702		2,037		—		—		702		2,037		2,739		(314)		1977-1983	2017-2019
Iowa	3	1,362		2,380		—		—		1,362		2,380		3,742		(48)		1927-1996	2022-2022
Illinois	1	656		832		—		—		656		832		1,488		(148)		1999-1999	2019-2019
Indiana	1	840		838		—		—		840		838		1,678		(207)		1999-1999	2019-2019
Kentucky	11	9,442		5,630		—		—		9,442		5,630		15,072		(1,430)		1998-1999	2019-2019
Minnesota	6	4,333		7,556		14		104		4,347		7,660		12,007		(1,718)		1967-2013	2017-2018
Missouri	3	1,931		2,396		—		—		1,931		2,396		4,327		(533)		1997-2003	2019-2019
New Mexico	13	4,988		9,360		—		15		4,988		9,375		14,363		(1,893)		1966-2013	2017-2019
New York	16	5,881		20,342		—		—		5,881		20,342		26,223		(5,121)		1970-2010	2016-2016
Ohio	21	15,191		13,382		—		—		15,191		13,382		28,573		(3,223)		1996-2001	2019-2019

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Pennsylvania	1	467		383		—		—		467		383		850		(110)		1996-1996	2019-2019
Texas	5	1,708		4,621		—		741		1,708		5,362		7,070		(896)		1965-2019	2017-2019
Washington	1	568		508		—		—		568		508		1,076		(119)		1976-1976	2018-2018
Wisconsin	25	15,800		20,277		—		—		15,800		20,277		36,077		(5,679)		1970-2006	2018-2019
Early Childhood Education
Arizona	16	$	10,474	$	14,986	$	—	$	21	$	10,474	$	15,007	$	25,481	$	(1,485)	1932-2021	2018-2022
Colorado	1	742		702		—		98		742		800		1,542		(67)		1988-1988	2019-2019
Connecticut	5	3,423		7,360		—		2,404		3,423		9,764		13,187		(1,504)		1957-2018	2018-2018
Florida	9	9,662		23,545		—		—		9,662		23,545		33,207		(3,000)		1981-2016	2017-2021
Georgia	8	8,505		18,502		—		—		8,505		18,502		27,007		(2,680)		1995-2016	2016-2020
Iowa	1	636		2,199		—		—		636		2,199		2,835		(109)		2005-2005	2021-2021
Illinois	7	6,502		21,687		—		—		6,502		21,687		28,189		(1,288)		1998-2021	2019-2022
Kansas	2	2,056		4,914		—		—		2,056		4,914		6,970		(768)		2007-2017	2017-2019
Kentucky	2	716		2,500		—		—		716		2,500		3,216		(209)		2002-2003	2019-2021
Massachusetts	1	3,200		2,423		—		—		3,200		2,423		5,623		(236)		1990-1990	2020-2020
Michigan	5	1,850		5,450		—		—		1,850		5,450		7,300		(477)		1987-2012	2018-2022
Minnesota	1	740		3,081		—		—		740		3,081		3,821		(130)		2017-2017	2021-2021
Missouri	8	4,239		14,583		19		81		4,258		14,664		18,922		(381)		1986-2009	2021-2022
Mississippi	2	2,085		2,547		—		124		2,085		2,671		4,756		(488)		2002-2008	2017-2018
North Carolina	22	20,683		36,235		—		200		20,683		36,435		57,118		(1,745)		1954-2018	2019-2022
Nebraska	1	224		813		—		—		224		813		1,037		(9)		2006-2006	2022-2022
New Jersey	2	1,249		3,439		—		—		1,249		3,439		4,688		(497)		2000-2002	2018-2018
Nevada	2	2,480		3,451		—		—		2,480		3,451		5,931		(219)		1998-2006	2021-2021
Ohio	27	20,879		55,399		31		8,821		20,910		64,220		85,130		(3,639)		1956-2017	2018-2022
Oklahoma	3	1,327		3,860		—		—		1,327		3,860		5,187		(48)		0-0	2022-2022
Oregon	1	447		1,202		—		—		447		1,202		1,649		(138)		2010-2010	2019-2019
Pennsylvania	11	10,364		27,518		—		—		10,364		27,518		37,882		(4,106)		1930-2010	2018-2018
Tennessee	2	1,943		2,970		—		—		1,943		2,970		4,913		(406)		1989-1996	2019-2020
Texas	9	7,370		18,436		—		529		7,370		18,965		26,335		(1,886)		1989-2016	2017-2022
Virginia	3	4,697		7,056		—		—		4,697		7,056		11,753		(709)		2001-2006	2017-2021
Washington	6	2,711		5,720		—		—		2,711		5,720		8,431		(661)		1924-2002	2019-2019
Wisconsin	8	6,716		25,474		—		—		6,716		25,474		32,190		(1,757)		1992-2007	2020-2022
Entertainment
Alabama	2	$	5,806	$	8,631	$	—	$	—	$	5,806	$	8,631	$	14,437	$	(1,180)	2002-2017	2017-2019
Arizona	4	3,447		6,350		—		—		3,447		6,350		9,797		(19)		1954-1981	2022-2022
California	1	1,320		2,320		—		—		1,320		2,320		3,640		(444)		1977-1977	2017-2017
Connecticut	2	2,516		13,938		—		—		2,516		13,938		16,454		(597)		1960-2019	2021-2021
Florida	2	6,456		6,815		—		4,500		6,456		11,315		17,771		(1,126)		2007-2007	2017-2022
Iowa	1	2,560		6,120		—		—		2,560		6,120		8,680		(252)		0-0	2021-2021
Idaho	1	886		2,768		—		—		886		2,768		3,654		(320)		2008-2008	2019-2019
Kansas	2	5,886		21,128		—		—		5,886		21,128		27,014		(395)		2018-2020	2022-2022

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Louisiana	2	3,403		3,115		—		—		3,403		3,115		6,518		(440)		2016-2016	2018-2022
Maine	1	2,052		4,924		—		—		2,052		4,924		6,976		(215)		1989-1989	2021-2021
Michigan	1	693		4,593		—		2,362		693		6,955		7,648		(1,117)		1995-1995	2017-2017
Minnesota	9	10,291		18,695		—		—		10,291		18,695		28,986		(2,676)		1950-2009	2018-2018
Missouri	5	20,925		13,731		—		—		20,925		13,731		34,656		(895)		1990-2016	2022-2022
North Carolina	3	11,099		21,176		—		—		11,099		21,176		32,275		(2,307)		1988-1996	2019-2022
Oklahoma	1	3,073		9,673		—		—		3,073		9,673		12,746		(195)		2020-2020	2022-2022
Pennsylvania	1	823		2,028		—		—		823		2,028		2,851		(298)		2016-2016	2019-2019
Tennessee	2	18,026		1,873		—		—		18,026		1,873		19,899		(231)		1940-2013	2022-2022
Texas	5	12,915		31,873		—		—		12,915		31,873		44,788		(356)		1981-2020	2022-2022
Equipment Rental and Sales
Alabama	2	$	2,689	$	1,280	$	12	$	847	$	2,701	$	2,127	$	4,828	$	(208)	2003-2008	2020-2021
Arkansas	1	1,246		429		246		609		1,492		1,038		2,530		(110)		1982-1982	2019-2019
Colorado	2	5,924		2,973		5		1,021		5,929		3,994		9,923		(523)		1990-2021	2020-2022
Connecticut	3	2,703		1,410		—		—		2,703		1,410		4,113		(103)		2002-2005	2020-2021
Florida	6	15,247		10,731		(1,660)		4,334		13,587		15,065		28,652		(701)		1964-1979	2019-2021
Georgia	2	4,087		4,857		236		2,138		4,323		6,995		11,318		(676)		1999-2019	2019-2020
Louisiana	1	1,006		227		16		1,164		1,022		1,391		2,413		(152)		2012-2012	2020-2020
Massachusetts	2	1,756		2,904		—		—		1,756		2,904		4,660		(223)		1971-2012	2020-2020
Maryland	1	2,647		973		—		975		2,647		1,948		4,595		(93)		1994-1994	2022-2022
Michigan	1	1,113		6,436		—		825		1,113		7,261		8,374		(1,061)		1987-1987	2017-2017
Missouri	5	5,538		6,703		21		1,536		5,559		8,239		13,798		(520)		1995-2015	2019-2022
North Dakota	1	851		1,567		—		330		851		1,897		2,748		(25)		0-0	2022-2022
New Hampshire	4	4,859		1,193		—		982		4,859		2,175		7,034		(125)		1978-1986	2020-2022
New Mexico	1	1,686		286		25		1,862		1,711		2,148		3,859		(200)		1970-1970	2020-2020
New York	6	6,533		4,083		—		—		6,533		4,083		10,616		(393)		1965-2021	2020-2021
Ohio	1	1,303		2,194		—		—		1,303		2,194		3,497		(134)		1996-1996	2021-2021
Oklahoma	2	2,177		2,257		—		—		2,177		2,257		4,434		(123)		1997-2003	2021-2022
Pennsylvania	1	751		1,678		—		—		751		1,678		2,429		(211)		1987-1987	2020-2020
Tennessee	2	3,519		3,713		816		1,734		4,335		5,447		9,782		(371)		1985-2018	2019-2022
Texas	10	10,347		14,206		—		1,386		10,347		15,592		25,939		(473)		1970-2020	2020-2022
Utah	1	1,731		2,196		—		1,346		1,731		3,542		5,273		(339)		1979-1979	2019-2019
Vermont	1	1,809		—		—		—		1,809		—		1,809				1995-1995	2022-2022
Washington	1	2,412		1,724		492		1,563		2,904		3,287		6,191		(281)		1959-1959	2019-2019
Grocery
Arkansas	6	$	5,704	$	12,942	$	—	$	1,425	$	5,704	$	14,367	$	20,071	$	(1,007)	1986-2020	2020-2021
Michigan	1	1,224		6,189		—		—		1,224		6,189		7,413		(341)		1969-1969	2021-2021
Missouri	10	5,661		16,938		—		—		5,661		16,938		22,599		(1,511)		1970-2013	2020-2021
North Carolina	1	762		1,300		—		—		762		1,300		2,062		(219)		1992-1992	2018-2018
Oklahoma	3	1,628		8,726		—		—		1,628		8,726		10,354		(853)		1987-1993	2019-2020
Wisconsin	7	17,626		67,253		—		—		17,626		67,253		84,879		(2,584)		1987-2017	2021-2022

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Health and Fitness
Alabama	1	$	1,102	$	2,412	$	—	$	—	$	1,102	$	2,412	$	3,514	$	(431)	2007-2007	2017-2017
Arizona	1	4,367		4,264		—		—		4,367		4,264		8,631		(355)		2021-2021	2018-2018
Colorado	1	1,484		4,491		—		—		1,484		4,491		5,975		(695)		1989-1989	2017-2017
Florida	2	5,291		5,975		—		2,572		5,291		8,547		13,838		(463)		1983-2000	2019-2021
Georgia	1	2,174		2,541		—		—		2,174		2,541		4,715		(497)		2005-2005	2017-2017
Illinois	1	1,133		2,226		—		2,150		1,133		4,376		5,509		(419)		1986-1986	2019-2019
Kentucky	1	868		2,186		—		—		868		2,186		3,054		(367)		1994-1994	2017-2017
Massachusetts	3	10,541		29,129		282		1,380		10,823		30,509		41,332		(3,525)		2004-2009	2018-2018
North Carolina	1	912		883		761		1,875		1,673		2,758		4,431		(151)		1972-1972	2018-2018
New Mexico	1	938		1,503		—		—		938		1,503		2,441		(290)		2016-2016	2017-2017
Nevada	1	491		2,543		—		—		491		2,543		3,034		(281)		1970-1970	2019-2019
Oklahoma	3	4,536		9,065		—		559		4,536		9,624		14,160		(938)		1979-2018	2018-2022
Oregon	2	3,070		5,104		—		350		3,070		5,454		8,524		(813)		1980-1999	2018-2018
South Carolina	5	4,516		9,463		—		330		4,516		9,793		14,309		(1,242)		1993-2010	2018-2019
Texas	4	8,467		7,707		—		144		8,467		7,851		16,318		(454)		1974-2005	2019-2022
Utah	1	1,937		4,209		—		—		1,937		4,209		6,146		(724)		1984-1984	2016-2016
Home Furnishings
Michigan	2	$	3,369	$	24,523	$	69	$	2,969	$	3,438	$	27,492	$	30,930	$	(4,417)	1987-1992	2017-2017
Missouri	1	273		4,683		—		—		273		4,683		4,956		(512)		2007-2007	2018-2018
Texas	1	2,224		4,779		—		—		2,224		4,779		7,003		(830)		2006-2006	2016-2016
Industrial
Florida	1	$	1,167	$	1,481	$	—	$	—	$	1,167	$	1,481	$	2,648	$	(5)	1974-1974	2022-2022
Illinois	2	3,958		1,744		—		—		3,958		1,744		5,702		(24)		1951-1987	2022-2022
Indiana	5	1,789		6,261		—		—		1,789		6,261		8,050		(19)		2000-2022	2022-2022
Louisiana	1	490		761		—		1,783		490		2,544		3,034		(11)		0-0	2022-2022
Mississippi	1	2,198		3,351		—		—		2,198		3,351		5,549		(96)		0-0	2022-2022
North Carolina	1	909		746		—		—		909		746		1,655		(51)		0-0	2022-2022
Ohio	1	902		2,330		—		—		902		2,330		3,232		(8)		0-0	2022-2022
Pennsylvania	1	678		2,922		—		—		678		2,922		3,600		(76)		1989-1989	2022-2022
South Dakota	1	1,250		2,950		—		—		1,250		2,950		4,200		(105)		1992-1992	2021-2021
Tennessee	2	861		2,139		—		—		861		2,139		3,000		(5)		1997-2008	2022-2022
Texas	1	5,350		6,679		—		—		5,350		6,679		12,029		(527)		2008-2008	2021-2021
Virginia	1	679		3,839		—		—		679		3,839		4,518		(159)		1964-1964	2021-2021
Medical / Dental
Alabama	5	$	1,623	$	7,508	$	—	$	—	$	1,623	$	7,508	$	9,131	$	(1,047)	1990-2012	2016-2019
Arkansas	16	4,013		12,692		—		497		4,013		13,189		17,202		(1,539)		1950-2017	2018-2021
Arizona	2	1,770		2,635		—		1,913		1,770		4,548		6,318		(292)		1967-1980	2016-2020
California	6	4,449		7,699		—		—		4,449		7,699		12,148		(497)		1989-2007	2021-2021

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Connecticut	2	1,889		1,675		—		—		1,889		1,675		3,564		(156)		1840-2009	2021-2021
Florida	9	6,872		24,624		—		—		6,872		24,624		31,496		(2,096)		1934-2019	2016-2021
Georgia	6	2,218		8,357		—		—		2,218		8,357		10,575		(771)		1960-2004	2016-2020
Iowa	3	1,252		2,085		—		—		1,252		2,085		3,337		(16)		1963-1990	2022-2022
Illinois	10	3,451		11,154		—		—		3,451		11,154		14,605		(949)		1967-2008	2016-2021
Indiana	5	5,985		7,951		—		—		5,985		7,951		13,936		(946)		1976-2021	2016-2019
Kentucky	1	199		474		—		—		199		474		673		(95)		2000-2000	2017-2017
Massachusetts	4	853		2,784		—		—		853		2,784		3,637		(245)		1850-2005	2016-2020
Michigan	4	2,401		9,443		—		—		2,401		9,443		11,844		(380)		2007-2007	2019-2021
Missouri	11	3,543		9,169		—		775		3,543		9,944		13,487		(652)		1979-2015	2016-2022
Mississippi	4	1,302		13,437		—		—		1,302		13,437		14,739		(1,078)		1970-2006	2016-2021
North Carolina	7	2,527		6,920		—		—		2,527		6,920		9,447		(369)		1996-2019	2021-2021
New Hampshire	6	4,729		17,340		—		—		4,729		17,340		22,069		(249)		1890-1984	2016-2022
New York	3	516		1,613		—		—		516		1,613		2,129		(276)		1940-1986	2016-2017
Ohio	17	6,874		21,981		—		—		6,874		21,981		28,855		(1,746)		1907-2017	2017-2021
Oklahoma	7	1,472		6,767		—		—		1,472		6,767		8,239		(335)		1964-2018	2021-2022
Oregon	1	1,457		1,230		—		—		1,457		1,230		2,687		(132)		1981-1981	2020-2020
Pennsylvania	2	505		3,641		—		—		505		3,641		4,146		(106)		0-0	2022-2022
South Carolina	7	4,836		10,564		—		—		4,836		10,564		15,400		(839)		1936-1998	2016-2021
Texas	50	32,046		112,053		—		1,577		32,046		113,630		145,676		(11,584)		1940-2019	2016-2022
Virginia	2	1,493		2,800		—		—		1,493		2,800		4,293		(172)		2001-2009	2021-2021
Vermont	1	357		916		—		—		357		916		1,273		(38)		0-0	2021-2021
Washington	1	627		868		—		—		627		868		1,495		(100)		1981-1981	2021-2021
Wyoming	1	620		2,550		—		—		620		2,550		3,170		(452)		2001-2001	2017-2017
Movie Theatres
Alabama	2	$	3,011	$	10,643	$	161	$	—	$	3,172	$	10,643	$	13,815	$	(1,970)	2001-2013	2016-2018
North Carolina	1	1,826		2,798		—		—		1,826		2,798		4,624		(473)		2004-2004	2018-2018
Ohio	1	2,126		10,097		—		—		2,126		10,097		12,223		(1,454)		1989-1989	2017-2017
South Carolina	1	1,465		7,081		—		—		1,465		7,081		8,546		(1,108)		2006-2006	2017-2017
Wisconsin	1	3,159		3,755		130		—		3,289		3,755		7,044		(791)		1997-1997	2017-2017
Other Services
Alabama	1	$	312	$	176	$	—	$	—	$	312	$	176	$	488	$	(65)	1978-1978	2016-2016
Colorado	1	370		434		—		—		370		434		804		(104)		2002-2002	2016-2016
Florida	1	1,187		3,344		—		—		1,187		3,344		4,531		(205)		1960-1960	2020-2020
Georgia	2	1,552		4,919		—		—		1,552		4,919		6,471		(746)		1895-1991	2018-2018
Kentucky	2	1,503		4,613		—		—		1,503		4,613		6,116		(396)		1882-1999	2018-2022
North Carolina	1	713		1,942		—		—		713		1,942		2,655		(321)		1973-1973	2018-2018
Oklahoma	1	2,257		2,073		—		—		2,257		2,073		4,330		(152)		2006-2006	2021-2021
South Carolina	4	2,175		4,406		—		—		2,175		4,406		6,581		(48)		1937-2006	2016-2022
Tennessee	14	10,757		19,485		—		—		10,757		19,485		30,242		(1,629)		1870-2010	2016-2022
Texas	6	15,090		17,940		729		—		15,819		17,940		33,759		(1,009)		2006-2021	2021-2022

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Virginia	1	1,259		1,786		—		—		1,259		1,786		3,045		(321)		1991-1991	2018-2018
Pet Care Services
Alabama	1	$	1,138			$	—	$	—	$	1,138	$	—	$	1,138			2019-2019	2021-2021
Arkansas	2	1,422		2,110		—		—		1,422		2,110		3,532		(350)		1979-1996	2017-2019
Arizona	5	6,862		10,616		(1,845)		(469)		5,017		10,147		15,164		(1,638)		1990-2015	2018-2018
Florida	5	5,578		7,102		—		—		5,578		7,102		12,680		(1,203)		2003-2021	2018-2021
Georgia	5	3,335		3,367		—		—		3,335		3,367		6,702		(234)		1950-2007	2019-2021
Illinois	4	2,352		2,928		—		—		2,352		2,928		5,280		(344)		1976-1995	2019-2021
Indiana	6	1,676		5,148		—		—		1,676		5,148		6,824		(715)		1952-2007	2017-2019
Louisiana	1	485		701		—		—		485		701		1,186		(101)		2007-2007	2019-2019
Maryland	1	586		1,881		16		34		602		1,915		2,517		(143)		1988-1988	2020-2020
Missouri	1	537		752		—		—		537		752		1,289		(100)		1986-1986	2019-2019
North Carolina	5	2,347		8,786		—		—		2,347		8,786		11,133		(399)		1970-2014	2019-2021
Nebraska	1	381		332		—		—		381		332		713		(80)		1967-1967	2019-2019
Oklahoma	1	225		283		—		—		225		283		508		(68)		1993-1993	2019-2019
Oregon	1	192		324		—		—		192		324		516		(35)		1990-1990	2019-2019
South Carolina	2	885		1,660		—		—		885		1,660		2,545		(163)		1994-2018	2019-2021
Texas	3	2,204		3,702		—		—		2,204		3,702		5,906		(138)		2019-2019	2021-2021
Wisconsin	1	403		598		—		—		403		598		1,001		(75)		2011-2011	2019-2019
Restaurants - Casual Dining
Alabama	5	$	2,954	$	7,305	$	—	$	—	$	2,954	$	7,305	$	10,259	$	(1,414)	1977-2007	2016-2017
Colorado	1	1,593		3,400		—		—		1,593		3,400		4,993		(618)		1993-1993	2016-2016
Florida	9	6,317		12,222		55		59		6,372		12,281		18,653		(2,687)		1988-2003	2016-2017
Georgia	5	4,785		6,048		—		600		4,785		6,648		11,433		(1,388)		1982-1999	2016-2017
Iowa	6	2,812		9,572		—		—		2,812		9,572		12,384		(606)		1950-2005	2018-2022
Illinois	2	668		2,051		—		—		668		2,051		2,719		(267)		1991-1993	2018-2019
Indiana	1	1,542		—		—		—		1,542		—		1,542				1999-1999	2020-2020
Kansas	2	3,045		1,382		—		—		3,045		1,382		4,427		(82)		2005-2005	2021-2022
Kentucky	3	1,798		3,643		—		—		1,798		3,643		5,441		(210)		2001-2010	2019-2022
Louisiana	3	2,156		3,330		—		—		2,156		3,330		5,486		(705)		1988-1994	2016-2017
Massachusetts	10	12,982		14,943		—		—		12,982		14,943		27,925		(901)		1985-2008	2021-2021
Maryland	2	2,344		1,975		—		—		2,344		1,975		4,319		(449)		2004-2005	2017-2017
Michigan	12	7,181		16,134		—		—		7,181		16,134		23,315		(1,728)		1906-2003	2019-2022
Minnesota	2	7,921		14,090		—		—		7,921		14,090		22,011		(176)		1905-1947	2022-2022
Missouri	4	7,857		11,419		—		—		7,857		11,419		19,276		(284)		2001-2021	2017-2021
Mississippi	1	926		624		—		—		926		624		1,550		(132)		2004-2004	2017-2017
Nebraska	1	261		687		—		—		261		687		948		(185)		1979-1979	2016-2016
New Hampshire	1	1,978		2,127		—		—		1,978		2,127		4,105		(90)		1974-1974	2021-2021
New Jersey	8	9,625		28,327		—		—		9,625		28,327		37,952		(224)		1941-2005	2022-2022
Ohio	3	4,653		7,984		—		—		4,653		7,984		12,637		(491)		1988-2004	2019-2021
Pennsylvania	3	3,375		6,706		—		—		3,375		6,706		10,081		(73)		1880-2003	2022-2022

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Rhode Island	1	830		1,171		—		—		830		1,171		2,001		(71)		1996-1996	2021-2021
South Carolina	1	447		292		—		29		447		321		768		(94)		2003-2003	2017-2017
South Dakota	1	1,922		2,475		—		—		1,922		2,475		4,397		(107)		0-0	2021-2021
Tennessee	1	683		737		—		—		683		737		1,420		(135)		2003-2003	2017-2017
Texas	4	6,663		4,639		—		—		6,663		4,639		11,302		(408)		1999-2018	2016-2022
Virginia	1	1,136		1,991		—		—		1,136		1,991		3,127		(226)		2005-2005	2019-2019
West Virginia	2	953		3,180		—		—		953		3,180		4,133		(91)		1997-2006	2022-2022
Restaurants - Family Dining
Florida	1	$	467	$	421	$	—	$	150	$	467	$	571	$	1,038	$	(307)	1997-1997	2016-2016
Georgia	7	3,229		4,132		—		330		3,229		4,462		7,691		(774)		1968-1996	2017-2018
Iowa	1	804		563		—		—		804		563		1,367		(148)		1994-1994	2016-2016
Illinois	2	1,372		1,206		—		750		1,372		1,956		3,328		(330)		1978-1979	2016-2016
Michigan	3	2,148		2,847		—		—		2,148		2,847		4,995		(322)		1973-2000	2019-2019
Minnesota	4	2,433		2,451		—		—		2,433		2,451		4,884		(674)		1975-1991	2016-2016
Missouri	2	1,038		1,153		—		—		1,038		1,153		2,191		(300)		1978-1979	2016-2016
New Hampshire	1	131		232		—		—		131		232		363		(364)		1998-1998	2016-2016
Pennsylvania	1	784		756		6		61		790		817		1,607		(192)		1995-1995	2017-2017
South Carolina	2	1,930		2,111		—		—		1,930		2,111		4,041		(226)		1978-2008	2020-2020
Texas	1	207		424		—		—		207		424		631		(613)		1998-1998	2016-2016
Virginia	1	90		192		—		—		90		192		282		(282)		1997-1997	2016-2016
Washington	2	1,787		3,861		—		—		1,787		3,861		5,648		(489)		1982-1999	2019-2019
Wisconsin	2	1,967		2,955		—		—		1,967		2,955		4,922		(482)		1976-2018	2016-2019
Wyoming	1	739		1,569		—		—		739		1,569		2,308		(169)		1982-1982	2019-2019
Restaurants - Quick Service
Alaska	2	$	1,115	$	3,157	$	5	$	527	$	1,120	$	3,684	$	4,804	$	(502)	1972-2006	2018-2018
Alabama	26	6,787		14,555		—		83		6,787		14,638		21,425		(2,577)		1972-2020	2016-2021
Arkansas	13	7,361		12,008		—		15		7,361		12,023		19,384		(1,618)		1977-2019	2016-2019
California	1	467		533		—		—		467		533		1,000		(129)		1993-1993	2016-2016
Colorado	1	698		1,036		—		—		698		1,036		1,734		(167)		1999-1999	2018-2018
Connecticut	1	155		208		—		—		155		208		363		(101)		1983-1983	2016-2016
Florida	17	10,895		20,435		—		—		10,895		20,435		31,330		(1,466)		1960-2018	2016-2022
Georgia	40	16,191		26,477		—		414		16,191		26,891		43,082		(4,684)		1975-2013	2016-2021
Iowa	8	2,715		7,326		—		—		2,715		7,326		10,041		(1,439)		1969-2004	2016-2019
Illinois	4	2,062		2,892		—		1,100		2,062		3,992		6,054		(410)		1988-2020	2016-2021
Indiana	5	1,873		3,673		—		924		1,873		4,597		6,470		(506)		1987-2018	2019-2020
Kansas	1	194		777		—		—		194		777		971		(134)		1971-1971	2017-2017
Kentucky	13	5,705		9,351		—		402		5,705		9,753		15,458		(1,060)		1969-2020	2016-2022
Louisiana	3	955		3,164		—		—		955		3,164		4,119		(423)		1983-2016	2019-2019
Massachusetts	9	5,251		5,131		—		—		5,251		5,131		10,382		(606)		1965-1987	2020-2020
Maryland	1	338		624		—		—		338		624		962		(77)		2002-2002	2019-2019
Michigan	12	3,797		8,116		—		—		3,797		8,116		11,913		(1,661)		1969-2015	2016-2018

Description (a)		Initial Cost to Company				Cost Capitalized Subsequent to Acquisition (b)				Gross Amount at December 31, 2022 (c)(d)						Accumulated Depreciation (e)(f)		Year Constructed (Range)	Year Acquired (Range)
Tenant Industry & State	# of Properties	Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Land & Improvements		Building & Improvements		Total
Minnesota	3	2,605		4,416		—		—		2,605		4,416		7,021		(1,014)		1989-1996	2017-2019
Missouri	1	195		802		—		—		195		802		997		(164)		1987-1987	2016-2016
Mississippi	27	11,212		15,911		—		390		11,212		16,301		27,513		(2,134)		1968-2020	2016-2021
Montana	1	782		—		—		—		782		—		782				2022-2022	2022-2022
North Carolina	2	1,269		1,431		(171)		268		1,098		1,699		2,797		(85)		1986-2022	2016-2021
Nebraska	2	667		2,048		—		—		667		2,048		2,715		(454)		1998-2014	2016-2016
New Hampshire	1	409		355		—		—		409		355		764		(99)		1993-1993	2016-2016
New York	3	3,765		3,405		—		400		3,765		3,805		7,570		(895)		1968-2000	2016-2019
Ohio	9	3,661		10,582		—		—		3,661		10,582		14,243		(785)		1964-1993	2016-2022
Oklahoma	8	5,266		7,550		—		—		5,266		7,550		12,816		(559)		1979-2018	2020-2021
Oregon	1	252		131		—		—		252		131		383		(42)		2015-2015	2016-2016
Pennsylvania	4	2,247		2,790		—		—		2,247		2,790		5,037		(536)		1963-2020	2016-2020
South Carolina	4	850		2,291		—		30		850		2,321		3,171		(422)		1977-2014	2016-2020
South Dakota	1	70		259		—		—		70		259		329		(34)		1984-1984	2019-2019
Tennessee	19	11,681		15,414		—		354		11,681		15,768		27,449		(2,324)		1974-2020	2016-2020
Texas	35	27,554		25,565		—		1,501		27,554		27,066		54,620		(2,814)		1970-2021	2016-2021
Wisconsin	2	1,197		2,462		—		35		1,197		2,497		3,694		(568)		1983-1998	2016-2017
West Virginia	6	1,293		3,137		—		—		1,293		3,137		4,430		(682)		1976-1994	2016-2016
Vacant Properties
Iowa	1	$	57	$	479	$	—	$	—	$	57	$	479	$	536	$	(65)	1950-1950	2018-2018
Texas	1	119		540		—		34		119		574		693		(115)		1984-1984	2019-2019
Grand Total	1490	$	1,228,036	$	2,364,891	$	651	$	75,739	$	1,228,687	$	2,440,630	$	3,669,317	$	(238,022)

(a)As of December 31, 2022, the Company had investments in 1,653 single-tenant real estate property locations including 1,489 owned properties, 11 ground lease interests and 153 properties securing mortgage notes receivable. Five of the Company’s owned properties are subject to leases accounted for as direct financing leases and are excluded from the table above. Additionally, the table above excludes three owned properties which are accounted for as loans receivable, as the leases contain purchase options, and four owned properties which are held for sale as of December 31, 2022. Initial costs exclude intangible lease assets totaling $77.1 million.

(b)Amounts shown as reductions to cost capitalized subsequent to acquisition represent provisions recorded for impairment of real estate or partial land dispositions.

(c)The aggregate cost for federal income tax purposes is $3.5 billion.

(d)The following is a reconciliation of carrying value for land and improvements and building and improvements for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Balance, beginning of period	$	3,040,073	$	2,260,919	$	1,812,961
Additions
Acquisitions	751,610		831,795		527,482
Improvements	27,609		9,459		28,889
Deductions
Provisions for impairment of real estate	(20,164)		(6,120)		(8,399)
Real estate investments held for sale	(4,780)		(15,434)		(17,058)
Cost of real estate sold	(123,081)		(40,546)		(82,956)
Other	(1,949)		—		—
Balance, end of period	$	3,669,317	$	3,040,073	$	2,260,919

(e)The following is a reconciliation of accumulated depreciation for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Balance, beginning of period	$	169,126	$	112,144	$	71,445
Additions
Depreciation expense	80,647		61,172		51,736
Deductions
Accumulated depreciation associated with real estate sold	(11,751)		(4,190)		(11,037)
Balance, end of period	$	238,022	$	169,126	$	112,144

(f)Depreciation is calculated using the straight-line method over the estimated useful lives of the properties, which is up to 40 years for buildings and improvements and 15 years for land improvements.

XML

Schedule IV - Mortgage Loans on Real Estate

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

Schedule IV - Mortgage Loans on Real Estate

ESSENTIAL PROPERTIES REALTY TRUST, INC. AND ESSENTIAL PROPERTIES REALTY TRUST, INC. PREDECESSOR

Schedule IV - Mortgage Loans on Real Estate

As of December 31, 2022

(Dollar amounts in thousands)

Description	Interest Rate	Final Maturity Date	Periodic Payment Terms	Final Payment Terms	Prior Liens	Face Amount of Mortgages		Carrying Amount of Mortgages		Principal Amount of Loans Subject to Delinquent Principal or Interest
First mortgage loans:
Two Early Childhood Education Centers located in Florida	8.80%	5/8/2039	Interest only	Balloon - $12,000	None	$	12,000	$	11,884	None
Two Early Childhood Education Centers located in Florida	8.53%	7/15/2039	Interest only	Balloon - $7,300	None	7,300		7,226		None
Sixty-nine Quick Service Restaurants located in fifteen states	7.79%	8/31/2034	Interest only	Balloon - $51,000	None	51,000		50,995		None
One Early Childhood Education Center located in Florida	8.42%	2/29/2040	Interest only	Balloon - $5,300	None	5,300		5,251		None
Three Convenience Stores located in Minnesota	8.54%	12/31/2024	Interest only	Balloon - $2,324	None	2,324		2,317		None
One Family Dining Restaurant located in Georgia	7.00%	1/25/2023	Interest only	Balloon - $600	None	600		596		None
Three Convenience Stores located in three states	8.30%	5/11/2023	Interest only	Balloon - $3,146	None	3,146		3,063		None
Two Casual Dining Restaurants located in Kentucky and Ohio	6.87%	5/31/2036	Interest only	Balloon - $2,520	None	2,520		2,520		None
Three Casual Dining Restaurants located in three states	7.51%	5/31/2036	Interest only	Balloon - $2,673	None	2,673		2,657		None
Two Convenience Stores located in Iowa	8.29%	6/1/2023	Interest only	Balloon - $2,389	None	2,389		2,323		None
One Entertainment Center located in New Jersey	8.96%	9/30/2051	Principal + Interest	Fully amortizing	None	24,100		24,090		None
Two Industrial facilities located in California	7.44%	11/4/2036	Interest only	Balloon - $9,808	None	9,808		9,785		None
Five Car Washes located in Nevada	7.30%	12/31/2036	Interest only	Balloon - $25,714	None	25,714		25,711		None
One Car Wash located in Florida	7.73%	12/29/2036	Interest only	Balloon - $2,470	None	2,470		2,464		None
One Casual Dining Restaurant located in Michigan	8.00%	7/10/2023	Interest only	Balloon - $1,754	None	1,754		1,710		None
Thirty-seven Quick Service Restaurants located in three states	7.00%	2/28/2027	Interest only	Balloon - $26,307	None	26,307		26,185		None
One Car Wash located in New Jersey	7.73%	3/31/2037	Interest only	Balloon - $3,600	None	3,600		3,592		None
One Convenience Store located in Minnesota	8.30%	4/22/2024	Interest only	Balloon - $760	None	760		740		None
One Car Wash located in Nevada	7.33%	12/31/2036	Interest only	Balloon - $4,960	None	4,960		4,948		None
One Car Wash located in Nevada	7.43%	12/31/2036	Interest only	Balloon - $4,800	None	4,800		4,789		None
Four Car Washes located in three states	8.64%	12/31/2037	Interest only	Balloon - $12,250	None	12,250		12,246		None
Ten Car Washes located in five states	8.93%	12/31/2037	Interest only	Balloon - $28,938	None	28,938		28,886		None
						$	234,713	$	233,978

The following table shows changes in carrying amounts of mortgage loans receivable during the years ended December 31, 2022, 2021 and 2020 (in thousands):

	Year ended December 31,
	2022		2021		2020
Balance, beginning of period	$	181,419	$	144,048	$	87,029
Additions:
New mortgage loans	126,784		137,356		54,484
Subsequent funding on existing mortgage loans	17,236		—		3,500
Deductions:
Collections of principal	(91,488)		(100,179)		(11)
Provision for credit losses	27		194		(954)
Balance, end of period	$	233,978	$	181,419	$	144,048

See accompanying report of independent registered public accounting firm.

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of Accounting

Basis of AccountingThe accompanying unaudited consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).

Principles of Consolidation

Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Reportable Segments

Reportable SegmentsASC Topic 280, Segment Reporting, establishes standards for the manner in which enterprises report information about operating segments. Substantially all of the Company’s investments, at acquisition, are comprised of real estate owned that is leased to tenants on a long-term basis or real estate that secures the Company's investment in loans and direct financing lease receivables.

Real Estate Investments

Real Estate Investments

Investments in real estate are carried at cost less accumulated depreciation and impairment losses. The cost of investments in real estate reflects their purchase price or development cost. The Company evaluates each acquisition transaction to determine whether the acquired asset meets the definition of a business. Under Accounting Standards Update ("ASU") 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business, an acquisition does not qualify as a business when there is no substantive process acquired or substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets or the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. Transaction costs related to acquisitions that are asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be acquisitions of a business are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company allocates the purchase price of acquired properties accounted for as asset acquisitions to tangible and identifiable intangible assets or liabilities based on their relative fair values. Tangible assets may include land, site improvements and buildings. Intangible assets may include the value of in-place leases and above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics.

The Company incurs various costs in the leasing and development of its properties. Amounts paid to tenants that incentivize them to extend or otherwise amend an existing lease or to sign a new lease agreement are capitalized to lease incentives on the Company's consolidated balance sheets. Tenant improvements are capitalized to building and improvements within the Company's consolidated balance sheets. Costs incurred which are directly related to properties under development, which include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs and real estate taxes and insurance, are capitalized during the period of development as construction in progress. After the determination is made to capitalize a cost, it is allocated to the specific component of a project that benefited. Determination of when a development project commences, and capitalization begins, and when a development project has reached substantial completion, and is available for occupancy and capitalization must cease, involves a degree of judgment. The Company does not engage in speculative real estate development. The Company does, however, opportunistically agree to reimburse certain of its tenants for development costs at its properties in exchange for contractually-specified rent that generally increases proportionally with its funding.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases based on the specific characteristics of each tenant's lease. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. Factors the Company considers in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses, and estimates of lost rentals at market rates during the expected lease-up periods, which primarily range from six to 12 months. The fair value of above- or below-market leases is recorded based on the net present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company's estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining non-cancelable term of the lease including any below-market fixed rate renewal options for below-market leases.

In making estimates of fair values for purposes of allocating purchase price, the Company uses a number of sources, including real estate valuations prepared by independent valuation firms. The Company also considers information and other factors including market conditions, the industry that the tenant operates in, characteristics of the real estate (e.g., location, size, demographics, value and comparative rental rates), tenant credit profile and the importance of the location of the real estate to the operations of the tenant's business. Additionally, the Company considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. The Company uses the information obtained as a result of its pre-acquisition due diligence as part of its consideration of the accounting standard governing asset retirement obligations and, when necessary, will record an asset retirement obligation as part of the purchase price allocation.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount and fair value less estimated selling costs. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations for all applicable periods.

Depreciation and Amortization

Depreciation and Amortization

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings and 15 years for site improvements. The Company recorded the following amounts of depreciation expense on its real estate investments during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Depreciation on real estate investments	$	80,647	$	61,171	$	51,736

Lease incentives are amortized on a straight-line basis as a reduction of rental income over the remaining non-cancellable terms of the respective leases. If a tenant terminates its lease, the unamortized portion of the lease incentive is charged to rental revenue. Construction in progress is not depreciated until the development has reached substantial completion. Tenant improvements are depreciated over the non-cancellable term of the related lease or their estimated useful life, whichever is shorter.

Capitalized above-market lease intangibles are amortized on a straight-line basis as a reduction of rental revenue over the remaining non-cancellable terms of the respective leases. Capitalized below-market lease intangibles are accreted on a straight-line basis as an increase to rental revenue over the remaining non-cancellable terms of the respective leases including any below-market fixed rate renewal option periods.

Capitalized above-market ground lease values are accreted as a reduction of property expenses over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property expenses over the remaining terms of the respective leases and any expected below-market renewal option periods where renewal is considered probable.

The value of in-place leases, exclusive of the value of above-market and below-market lease intangibles, is amortized to depreciation and amortization expense on a straight-line basis over the remaining periods of the respective leases.

If a tenant terminates its lease, the unamortized portion of each intangible, including in-place lease values, is charged to depreciation and amortization expense, while above- and below-market lease adjustments are recorded within rental revenue in the consolidated statements of operations.

Loans Receivable

Loans Receivable

The Company holds its loans receivable for long-term investment. Loans receivable are carried at amortized cost, including related unamortized discounts or premiums, if any, less the Company's estimated allowance for credit losses. The Company recognizes interest income on loans receivable using the effective-interest method applied on a loan-by-loan basis. Direct costs associated with originating loans are offset against any

related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective-interest method.

Direct Financing Lease Receivables and Adjustment to Rental Revenue for Tenant Credit

Direct Financing Lease Receivables

Certain of the Company’s real estate investment transactions are accounted for as direct financing leases. The Company records the direct financing lease receivables at their net investment, determined as the aggregate minimum lease payments and the estimated non-guaranteed residual value of the leased property less unearned income. The unearned income is recognized over the term of the related lease so as to produce a constant rate of return on the net investment in the asset. The Company’s investment in direct financing lease receivables is reduced over the applicable lease term to its non-guaranteed residual value by the portion of rent allocated to the direct financing lease receivables.

Adjustment to Rental Revenue for Tenant Credit

The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located.

If the assessment of the collectability of substantially all payments due under a lease changes from probable to not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current period reduction of rental revenue in the consolidated statements of operations.

Allowance for Credit Losses

Allowance for Credit Losses

On January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”) on a prospective basis. ASC 326 changed how the Company accounts for credit losses for all of its loans and direct financing lease receivables. ASC 326 replaced the previous “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information than used under the incurred losses model. Upon adoption of ASC 326, the Company recorded an initial allowance for credit losses of $0.2 million as of January 1, 2020, netted against loans and direct financing receivables on its consolidated balance sheet. Under ASC 326, the Company is required to re-evaluate the expected loss of its loans and direct financing lease receivables portfolio at each balance sheet date. As of December 31, 2022 and 2021, the Company recorded an allowance for credit losses of $0.8 million. Changes in the Company's allowance for credit losses are presented within change in provision for credit losses in its consolidated statements of operations.

In connection with its adoption of ASC 326 on January 1, 2020, the Company implemented a new process including the use of a credit loss forecasting model. The Company has used this credit loss forecasting model for estimating expected lifetime credit losses, at the individual asset-level, for its loans and direct financing lease receivable portfolio. The forecasting model used is the probability weighted expected cash flow method, depending on the type of loan or direct financing lease receivable and global assumptions.

The Company uses a real estate loss estimate model (“RELEM”) which estimates losses on its loans and direct financing lease receivable portfolio, for purposes of calculating allowances for credit losses. The RELEM allows the Company to refine (on an ongoing basis) the expected loss estimate by incorporating loan specific assumptions as necessary, such as anticipated funding, interest payments, estimated extensions and estimated loan repayment/refinancing at maturity to estimate cash flows over the life of the loan. The model also incorporates assumptions related to underlying collateral values, various loss scenarios, and predicted losses to estimate expected losses. The Company's specific loan-level inputs include loan-to-stabilized-value (“LTV”), principal balance, property type, location, coupon, origination year, term, subordination, expected repayment date and future funding. The Company categorizes the results by LTV range, which it considers the most significant indicator of credit quality for its loans and direct financing lease receivables. A lower LTV ratio typically indicates a lower credit loss risk.

The Company also evaluates each loan and direct financing lease receivable measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan or direct financing lease receivables.

The Company's allowance for credit losses is adjusted to reflect its estimation of the current and future economic conditions that impact the performance of the real estate assets securing its loans. These estimations include various macroeconomic factors impacting the likelihood and magnitude of potential credit losses for the Company's loans and direct financing lease receivables during their anticipated term

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

If circumstances indicate that the carrying value of a property may not be recoverable, the Company reviews the property for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates

consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. Impairment losses, if any, are recorded directly within our consolidated statement of operations.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents includes cash in the Company’s bank accounts. The Company considers all cash balances and highly liquid investments with original maturities of three months or less to be cash and cash equivalents. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to an insurance limit.

Restricted Cash

Restricted Cash

Restricted cash primarily consists of cash proceeds from the sale of assets held by a qualified intermediary to facilitate tax-deferred exchange transactions under Section 1031 of the Internal Revenue Code.

Forward Equity Sales

Forward Equity Sales

The Company has and may continue to enter into forward sale agreements relating to shares of its common stock, either through its 2022 ATM Program (as defined herein) or through an underwritten public offering. These agreements may be physically settled in stock, settled in cash or net share settled at the Company’s election.

The Company evaluated its forward sale agreements and concluded they meet the conditions to be classified within stockholders’ equity. Prior to settlement, a forward sale agreement will be reflected in the diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of the Company’s common stock used in diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares of the Company’s common stock that would be issued upon full physical settlement of such forward sale agreement over the number of shares of the Company’s common stock that could be purchased by the Company in the market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). Consequently, prior to settlement of a forward sale agreement, there will be no dilutive effect on the Company’s earnings per share except during periods when the average market price of the Company’s common stock is above the adjusted forward sale price. However, upon settlement of a forward sales agreement, if the Company elects to physically settle or net share settle such forward sale agreement, delivery of the Company’s shares will result in dilution to the Company’s earnings per share.

Deferred Financing Costs

Deferred Financing Costs

Financing costs related to establishing the Company’s Revolving Credit Facility (as defined below) were deferred and are being amortized as an increase to interest expense in the consolidated statements of operations over the term of the facility and are reported as a component of rent receivables, prepaid expenses and other assets, net on the consolidated balance sheets.

Financing costs related to the issuance of the Company’s borrowings under the 2024 Term Loan, 2027 Term Loan, 2028 Term Loan and 2031 Notes were deferred and are being amortized as an increase to interest expense in the consolidated statements of operations over the term of the related debt instrument and are reported as a reduction of the related outstanding debt balance on the consolidated balance sheets.

Derivative Instruments

Derivative Instruments

In the normal course of business, the Company uses derivative financial instruments, which may include interest rate swaps, caps, options, floors and other interest rate derivative contracts, to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows on a portion of the Company’s floating-rate debt. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. The Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may also enter into derivative contracts that are intended to economically hedge certain risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designed and qualifies for hedge accounting treatment. If a derivative is designated and qualifies for cash flow hedge accounting treatment, the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income to the extent that it is effective. Any ineffective portion of a change in derivative fair value is immediately recorded in earnings. If the Company elects not to apply hedge accounting treatment (or for derivatives that do not qualify as hedges), any change in the fair value of such derivative instruments would be recognized immediately as a gain or loss on derivative instruments in the consolidated statements of operations.

Fair Value Measurement

Fair Value Measurement

The Company estimates the fair value of financial and non-financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1—Quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3—Unobservable inputs that reflect the Company's own assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

Revenue Recognition

Revenue Recognition

The Company’s rental revenue is primarily rent received from tenants. Rent from tenants is recorded in accordance with the terms of each lease on a straight-line basis over the non-cancellable initial term of the lease from the later of the date of the commencement of the lease and the date of acquisition of the property subject to the lease. Rental revenue recognition begins when the tenant controls the space and continues through the term of

the related lease. Because substantially all of the leases provide for rental increases at specified intervals, the Company records a straight-line rent receivable and recognizes revenue on a straight-line basis through the expiration of the non-cancelable term of the lease. The Company considers whether the collectability of rents is reasonably assured in determining the amount of straight-line rent to record.

Generally, the Company’s leases provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions provided under the initial lease term, including rent increases. If economic incentives make it reasonably certain that an option period to extend the lease will be exercised, the Company will include these options in determining the non-cancelable term of the lease.

The Company defers rental revenue related to lease payments received from tenants in advance of their due dates. These amounts are presented within accrued liabilities and other payables on the Company’s consolidated balance sheets.

Certain properties in the Company’s investment portfolio are subject to leases that provide for contingent rent based on a percentage of the tenant’s gross sales. For these leases, the Company recognizes contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached.

Offering Costs

Offering CostsIn connection with the completion of equity offerings, the Company incurs legal, accounting and other offering-related costs. Such costs are deducted from the gross proceeds of each equity offering when the offering is completed.

Income Taxes

Income Taxes

The Company elected and qualified to be taxed as a REIT under sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with its taxable year ended December 31, 2018. REITs are subject to a number of organizational and operational requirements, including a requirement that 90% of ordinary “REIT taxable income” (as determined without regard to the dividends paid deduction or net capital gains) be distributed. As a REIT, the Company will generally not be subject to U.S. federal income tax to the extent that it

meets the organizational and operational requirements and its distributions equal or exceed REIT taxable income. For the period subsequent to the effective date of its REIT election, the Company continues to meet the organizational and operational requirements and expects distributions to exceed REIT taxable income. Accordingly, no provision has been made for U.S. federal income taxes. Even though the Company has elected and qualifies for taxation as a REIT, it may be subject to state and local income and franchise taxes, and to federal income and excise tax on its undistributed income. Franchise taxes and federal excise taxes on the Company’s undistributed income, if any, are included in general and administrative expenses on the accompanying consolidated statements of operations. Additionally, taxable income from non-REIT activities managed through the Company's taxable REIT subsidiary is subject to federal, state, and local taxes.

The Company analyzes its tax filing positions in all of the U.S. federal, state and local tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in such jurisdictions. The Company follows a two-step process to evaluate uncertain tax positions. Step one, recognition, occurs when an entity concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Step two, measurement, determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Equity-Based Compensation

Equity-Based Compensation

The Company grants shares of restricted common stock and restricted share units (“RSUs”) to its directors, executive officers and other employees that vest over specified time periods, subject to the recipient’s continued service. The Company also grants performance-based RSUs to its executive officers, the final number of which is determined based on objective and subjective performance conditions and which vest over a multi-year period, subject to the recipient’s continued service. The Company accounts for the restricted common stock and RSUs in accordance with ASC 718, Compensation – Stock Compensation, which requires that such compensation be recognized in the financial statements based on its estimated grant-date fair value. The value of such awards is recognized as compensation expense in general and administrative expenses in the accompanying consolidated statements of operations over the applicable service periods.

The Company recognizes compensation expense for equity-based compensation using the straight-line method based on the fair value of the award on the grant date. Forfeitures of equity-based compensation awards, if any, are recognized when they occur.

Variable Interest Entities

Variable Interest Entities

The Financial Accounting Standards Board (“FASB”) provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE’s economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE.

The Company has concluded that the Operating Partnership is a VIE of which the Company is the primary beneficiary, as the Company has the power to direct the activities that most significantly impact the economic performance of the Operating Partnership. Substantially all of the Company’s assets and liabilities are held by the Operating Partnership. The assets and liabilities of the Operating Partnership are consolidated and reported as assets and liabilities on the Company’s consolidated balance sheets as of December 31, 2022 and 2021.

Additionally, the Company has concluded that certain entities to which it has provided mortgage loans are VIEs because the entities' equity was not sufficient to finance their activities without additional subordinated financial

support.

Recent Accounting Developments

Recent Accounting Developments

In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848) (“ASU 2020-4”). ASU 2020-4 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-4 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to or less than the cash flows in the original lease. The Company made this election and accounts for rent deferrals by increasing its rent receivables as receivables accrue and continuing to recognize income during the deferral period. Lease concessions or amendments other than rent deferrals are evaluated to determine if a substantive change to the consideration in the original lease contract has occurred and should be accounted for as a lease modification. The Company continues to evaluate any amounts recognized for collectability, regardless of whether accounted for as a lease modification or not, and records an adjustment to rental revenue for amounts that are not probable of collection. For lease concessions granted in conjunction with the COVID-19 pandemic, the Company reviewed all amounts recognized on a tenant-by-tenant basis for collectability.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). The guidance in ASU 2020-06 simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in the ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, by removing certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding an entity’s ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The amendments in ASU 2020-06 are effective for the Company for fiscal years beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The guidance must be adopted as of the beginning of the fiscal year of adoption. The Company adopted this guidance on January 1, 2021 and the adoption of ASU 2020-06 did not have a material impact on the Company's consolidated financial statements.

In July 2021, the FASB issued ASU 2021-05, Lease (Topic 842): Lessors - Certain Leases with Variable Lease Payments ("ASU 2021-05"). The guidance in ASU 2021-05 amends the lease classification requirements for the lessors under certain leases containing variable payments to align with practice under ASC 840. The lessor should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: 1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in ASC 842-10-25-2 through 25-3; and 2) the lessor would have otherwise recognized a day-one loss. The amendments in ASU 2021-05 are effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The adoption of ASU 2020-05 is not expected to have a material impact on the Company's consolidated financial statements.

XML

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Schedule of Depreciation Expense and Impairment on Real Estate Investments

The Company recorded the following amounts of depreciation expense on its real estate investments during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Depreciation on real estate investments	$	80,647	$	61,171	$	51,736

Schedule of Details of Impairment of Long-Lived Assets

The Company recorded the following provisions for impairment of long lived assets during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Provision for impairment of real estate	$	20,164	$	6,120	$	8,399

Schedule of Adjustments to Rental Revenue and Contingent Rent

The Company recorded the following amounts as contingent rent, which are included as a component of rental revenue in the Company's consolidated statements of operations, during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Contingent rent	$	682	$	721	$	444

The Company recorded the following amounts as increases to or reductions of rental revenue for tenant credit during the periods presented:

	Year ended December 31,
(in thousands)	2022			2021		2020
Adjustment to rental revenue for tenant credit	$	(371)	-371000	$	2,900	$	(7,149)

The fixed and variable components of lease revenues for the years ended December 31, 2022, 2021, and 2020 were as follows:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed lease revenues	$	270,694	$	210,441	$	165,171
Variable lease revenues (1)	1,632		1,708		1,341
Total lease revenues (2)	$	272,326	$	212,149	$	166,512

_____________________________________

(1)Includes contingent rent based on a percentage of the tenant’s gross sales and costs paid by the Company for which it is reimbursed by its tenants.

(2)Excludes the amortization and accretion of above- and below-market lease intangible assets and liabilities and lease incentives and the adjustment to rental revenue for tenant credit.

Schedule of Mortgage Loan-Related VIEs

The following table presents information about the Company’s mortgage loan-related VIEs as of the dates presented:

	December 31,
(Dollars in thousands)	2022		2021
Number of VIEs	21		23
Aggregate carrying value	$	233,351	$	140,851

XML

Investments (Tables)

12 Months Ended

Dec. 31, 2022

Investments [Abstract]

Schedule of Real Estate Investment Portfolio

The following table presents information about the number of investments in the Company's real estate investment portfolio as of each date presented:

	December 31,
	2022	2021
Owned properties (1)	1,489	1,315
Properties securing investments in mortgage loans (2)	153	126
Ground lease interests (3)	11	10
Total number of investments	1,653	1,451

_____________________________________

(1)Includes 8 and 11 properties which are subject to leases accounted for as direct financing leases or loans as of December 31, 2022 and 2021, respectively.

(2)Properties secure 20 and 17 mortgage loans receivable as of December 31, 2022 and 2021, respectively.

(3)Includes one building which is subject to a lease accounted for as a direct financing lease as of December 31, 2021.

Schedule of Real Estate Investment Property, at Cost

The following table presents information about the gross investment value of the Company's real estate investment portfolio as of each date presented:

	December 31,
(in thousands)	2022		2021
Real estate investments, at cost	$	3,810,570	$	3,150,840
Loans and direct financing lease receivables, net	240,035		189,287
Real estate investments held for sale, net	4,780		15,434
Total gross investments	$	4,055,385	$	3,355,561

Schedule of Information about Acquisition Activity

The following table presents information about the Company’s acquisition activity during the years ended December 31, 2022 and 2021:

	Year ended December 31,
(Dollars in thousands)	2022		2021
Ownership type	(1)		Fee Simple
Number of properties	224		297
Purchase price allocation:
Land and improvements	$	270,049	$	279,501
Building and improvements	481,560		544,604
Construction in progress (2)	51,870		9,348
Intangible lease assets	3,366		11,010
Total purchase price	806,845		844,463
Intangible lease liabilities	—		(3,320)
Purchase price (including acquisition costs)	$	806,845	$	841,143

_____________________________________

(1)During the year ended December 31, 2022, the Company acquired the fee interest in 223 properties and acquired one property subject to a ground lease.

(2)Represents amounts incurred at and subsequent to acquisition and includes $0.8 million and $0.1 million, respectively, of capitalized interest expense during the years ended December 31, 2022 and 2021.

Schedule of Gross Investment Activity

During the years ended December 31, 2022, 2021 and 2020, the Company had the following gross investment activity: 

(Dollar amounts in thousands)	Number of Investment Locations	Dollar Amount of Investments
Gross investments, December 31, 2019	1,000	$	2,002,314
Acquisitions of and additions to real estate investments	208	568,204
Sales of investments in real estate	(49)	(81,312)
Relinquishment of properties at end of ground lease term	(3)	(1,931)
Provisions for impairment of real estate (1)	—	(8,399)
Investments in loans receivable	25	61,339
Principal collections on and settlements of loans and direct financing lease receivables	—	(286)
Other	—	(11,256)
Gross investments, December 31, 2020	1,181	2,528,673
Acquisitions of and additions to real estate investments	297	853,798
Sales of investments in real estate	(38)	(57,154)
Provisions for impairment of real estate (2)	—	(6,120)
Investments in loans receivable	49	137,351
Principal collections on and settlements of loans and direct financing lease receivables	(38)	(100,488)
Other	—	(499)
Gross investments, December 31, 2021	1,451	3,355,561
Acquisitions of and additions to real estate investments	224	810,661
Sales of investments in real estate	(54)	(138,515)
Provisions for impairment of real estate (3)	—	(20,164)
Investments in loans receivable	75	143,954
Principal collections on and settlements of loans and direct financing lease receivables	(43)	(93,118)
Other	—	(2,994)
Gross investments, December 31, 2022	1,653	4,055,385
Less: Accumulated depreciation and amortization (4)	—	(276,307)
Net investments, December 31, 2022	1,653	$	3,779,078

_____________________________________________ 

(1)During the year ended December 31, 2020, the Company identified and recorded provisions for impairment at 7 vacant and 10 tenanted properties.

(2)During the year ended December 31, 2021, the Company identified and recorded provisions for impairment at 2 vacant and 16 tenanted properties.

(3)During the year ended December 31, 2022, the Company identified and recorded provisions for impairment at 4 vacant and 9 tenanted properties.

(4)Includes $238.2 million of accumulated depreciation as of December 31, 2022.

Schedule of Loans Receivable

The Company's loans receivable portfolio as of December 31, 2022 and 2021 is summarized below (dollars in thousands): 

Loan Type	Monthly Payment (1)	Number of Secured Properties	Effective Interest Rate	Stated Interest Rate	Maturity Date	December 31,
						2022		2021
Mortgage (2)(3)	I/O	2	8.80%	8.00%	2039	$	12,000	$	12,000
Mortgage (2)	P+I		8.10%	8.10%	2059	—		6,096
Mortgage (2)	I/O	2	8.53%	7.75%	2039	7,300		7,300
Mortgage (2)	I/O	69	8.16%	7.70%	2034	51,000		28,000
Mortgage (2)	I/O	1	8.42%	7.65%	2040	5,300		5,300
Mortgage (2)	I/O	3	8.79%	8.50%	2022	2,324		2,324
Mortgage (2)	I/O	1	7.00%	7.00%	2023	600		600
Mortgage (2)	I/O		6.89%	6.75%	2026	—		14,165
Mortgage (2)	I/O	3	8.30%	8.25%	2023	3,146		3,146
Mortgage (2)	I/O	2	6.87%	6.40%	2036	2,520		2,520
Mortgage (2)	I/O	3	7.51%	7.00%	2036	2,673		30,806
Mortgage (2)	I/O		7.51%	7.00%	2036	—		9,679
Mortgage (2)	I/O		7.85%	7.50%	2031	—		13,000
Mortgage (2)	I/O	2	8.29%	8.25%	2023	2,389		2,389
Mortgage (2)	I/O	1	5.72%	8.00%	2051	24,100		6,864
Mortgage (2)	I/O	2	7.44%	7.10%	2036	9,808		9,808
Mortgage (2)	I/O	7	7.30%	6.80%	2036	35,474		25,714
Mortgage (2)	I/O	1	7.73%	7.20%	2036	2,470		2,470
Mortgage (2)	I/O	1	8.00%	8.00%	2023	1,754		—
Mortgage (2)	I/O	37	6.80%	7.00%	2027	26,307		—
Mortgage (2)	I/O	1	6.99%	7.20%	2037	3,600		—
Mortgage (2)	I/O	1	8.40%	8.25%	2024	760		—
Mortgage (2)	I/O	4	8.64%	8.05%	2037	12,250		—
Mortgage (2)	I/O	10	8.93%	8.25%	2037	28,938		—
Leasehold interest	P+I		10.69%	(4)	2039	—		1,435
Leasehold interest	P+I	1	2.25%	(5)	2034	992		1,055
Leasehold interest	P+I	1	2.41%	(5)	2034	1,473		1,560
Leasehold interest	P+I	1	4.97%	(5)	2038	1,517		1,562
Net investment						$	238,695	$	187,793

________________________________________________

(1)I/O: Interest Only; P+I: Principal and Interest

(2)Loan requires monthly payments of interest only with a balloon payment due at maturity.

(3)Loan allows for prepayments in whole or in part without penalty.

(4)This leasehold interest was accounted for as a loan receivable, as the lease for two land parcels contained an option for the lessee to repurchase the leased parcels in 2024 or 2025.

(5)These leasehold interests are accounted for as loans receivable, as the leases for each property contain an option for the related lessee to repurchase the leased property in the future.

Scheduled Principal Payments Due under Loans Receivable

Scheduled principal payments due to be received under the Company's loans receivable as of December 31, 2022 were as follows:

(in thousands)	Loans Receivable
2023	$	8,096
2024	981
2025	234
2026	248
2027	26,570
Thereafter	202,566
Total	$	238,695

Schedule of Direct Financing Lease Receivables

The components of the investments accounted for as direct financing lease receivables were as follows:

	December 31,
(in thousands)	2022		2021
Minimum lease payments receivable	$	2,812	$	3,189
Estimated unguaranteed residual value of leased assets	251		270
Unearned income from leased assets	(957)		(1,150)
Net investment	$	2,106	$	2,309

Scheduled Future Minimum Non-cancelable Base Rental Payments Under Direct Financing Lease Receivables

Scheduled future minimum non-cancelable base rental payments due to be received under the direct financing lease receivables as of December 31, 2022 were as follows:

(in thousands)	Future Minimum Base Rental Payments
2023	$	321
2024	283
2025	254
2026	243
2027	219
Thereafter	1,492
Total	$	2,812

Summary of Changes to Allowance for Loan Losses

For the years ended December 31, 2022, 2021 and 2020, the changes to the Company's allowance for credit losses were as follows:

(in thousands)	Loans and Direct Financing Lease Receivables
Balance at December 31, 2019	$	—
Cumulative-effect adjustment upon adoption of ASC 326	188
Current period provision for expected credit losses (1)	830
Write-offs charged	—
Recoveries	—
Balance at December 31, 2020	1,018
Current period provision for expected credit losses (1)	(204)
Write-offs charged	—
Recoveries	—
Balance at December 31, 2021	814
Current period provision for expected credit losses (2)	88
Write-offs charged	(137)
Recoveries	—
Balance at December 31, 2022	$	765

_____________________________________

(1)The increase in expected credit losses was due to the changes in assumptions regarding then-current macroeconomic factors related to COVID-19.

(2)The decrease in expected credit losses is due to assumptions regarding current macroeconomic factors returning to pre-pandemic values due to the reduction of the adverse impact of the COVID-19 pandemic.

Summary of Significant Credit Quality Indicators Measured at Amortized Cost

The Company considers the ratio of loan to value ("LTV") to be a significant credit quality indicator for its loans and direct financing lease portfolio. The following table presents information about the LTV of the Company's loans and direct financing lease receivables measured at amortized cost as of as of December 31, 2022:

	Amortized Cost Basis by Origination Year										Total Amortized Costs Basis
(in thousands)	2022		2021		2020		2019		Prior to 2019
LTV <60%	$	23,000	$	—	$	—	$	28,000	$	1,635	$	52,635
LTV 60%-70%	—		28,234		—		—		—		28,234
LTV >70%	83,369		45,186		10,612		20,292		471		159,930
	$	106,369	$	73,420	$	10,612	$	48,292	$	2,106	$	240,799

Activity in Real Estate Investments and Intangible Lease Liabilities Held for Sale

The following table shows the activity in real estate investments held for sale and intangible lease liabilities held for sale during the years ended December 31, 2022 and 2021: 

(Dollar amounts in thousands)	Number of Properties	Real Estate Investments		Intangible Lease Liabilities		Net Carrying Value
Held for sale balance, December 31, 2020	8	$	17,058	$	—	$	17,058
Transfers to held for sale classification	20	25,767		—		25,767
Sales	(15)	(13,501)		—		(13,501)
Transfers to held and used classification	(4)	(13,890)		—		(13,890)
Held for sale balance, December 31, 2021	9	15,434		—		15,434
Transfers to held for sale classification	11	28,393		—		28,393
Sales	(16)	(39,047)		—		(39,047)
Transfers to held and used classification	—	—		—		—
Held for sale balance, December 31, 2022	4	$	4,780	$	—	$	4,780

Schedule of External Customers by Geographic Areas

The following table lists the states where the rental revenue from the properties in that state during the periods presented represented 10% or more of total rental revenue in the Company's consolidated statements of operations:

	Year ended December 31,
State	2022	2021	2020
Texas	13.5%	13.1%	14.9%

Schedule of Intangible Assets and Liabilities

Intangible assets and liabilities consisted of the following as of the dates presented:

	December 31, 2022						December 31, 2021
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	77,096	$	30,217	$	46,879	$	76,255	$	24,540	$	51,715
Intangible market lease assets	11,268		4,917		6,351		11,704		4,409		7,295
Total intangible assets	$	88,364	$	35,134	$	53,230	$	87,959	$	28,949	$	59,010
Intangible market lease liabilities	$	15,325	$	3,774	$	11,551	$	15,948	$	3,255	$	12,693

Summary of Remaining Weighted Average Amortization Periods for Intangible Assets and Liabilities

The remaining weighted average amortization period for the Company's intangible assets and liabilities as of December 31, 2022, by category and in total, were as follows:

	Years Remaining
In-place leases	8.8
Intangible market lease assets	11.0
Total intangible assets	9.1
Intangible market lease liabilities	8.3

Summary of Amortization and Accretion Recognized

The following table discloses amounts recognized within the consolidated statements of operations related to amortization of in-place leases, amortization and accretion of above- and below-market lease assets and

liabilities, net and the amortization and accretion of above- and below-market ground leases for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Amortization of in-place leases (1)	$	7,575	$	7,544	$	7,067
Amortization (accretion) of market lease intangibles, net (2)	(217)		(47)		9
Amortization (accretion) of above- and below-market ground lease intangibles, net (3)	(350)		(353)		(395)

 ______________________________________________________

(1)Reflected within depreciation and amortization expense.

(2)Reflected within rental revenue.

(3)Reflected within property expenses.

Summary of Projected Amortization Expenses for Next Five Years

The following table provides the estimated amortization of in-place lease assets to be recognized as a component of depreciation and amortization expense for the next five years and thereafter:

(in thousands)	In-Place Lease Assets
2023	$	6,187
2024	5,519
2025	4,271
2026	3,966
2027	3,437
Thereafter	23,499
Total	$	46,879

The following table provides the estimated net amortization of above- and below-market lease intangibles to be recognized as a component of rental revenue for the next five years and thereafter:

(in thousands)	Above Market Lease Asset		Below Market Lease Liabilities		Net Adjustment to Rental Revenue
2023	$	(692)	$	701	$	9
2024	(659)		698		39
2025	(651)		700		49
2026	(641)		704		63
2027	(620)		728		108
Thereafter	(3,088)		8,020		4,932
Total	$	(6,351)	$	11,551	$	5,200

XML

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Future Minimum Base Rental Payments due to be Received Under Remaining Non-Cancelable Term of Operating Leases

Scheduled future minimum base rental payments due to be received under the remaining non-cancelable term of the operating leases in place as of December 31, 2022 were as follows:

(in thousands)	Future Minimum Base Rental Receipts
2023	$	295,823
2024	298,360
2025	298,352
2026	300,847
2027	300,685
Thereafter	3,129,043
Total	$	4,623,110

Schedule of Components of Fixed and Variable Lease Revenues

The Company recorded the following amounts as contingent rent, which are included as a component of rental revenue in the Company's consolidated statements of operations, during the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Contingent rent	$	682	$	721	$	444

The Company recorded the following amounts as increases to or reductions of rental revenue for tenant credit during the periods presented:

	Year ended December 31,
(in thousands)	2022			2021		2020
Adjustment to rental revenue for tenant credit	$	(371)	-371000	$	2,900	$	(7,149)

The fixed and variable components of lease revenues for the years ended December 31, 2022, 2021, and 2020 were as follows:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed lease revenues	$	270,694	$	210,441	$	165,171
Variable lease revenues (1)	1,632		1,708		1,341
Total lease revenues (2)	$	272,326	$	212,149	$	166,512

_____________________________________

(1)Includes contingent rent based on a percentage of the tenant’s gross sales and costs paid by the Company for which it is reimbursed by its tenants.

(2)Excludes the amortization and accretion of above- and below-market lease intangible assets and liabilities and lease incentives and the adjustment to rental revenue for tenant credit.

Schedule of Information Related to Measurement of Lease Liabilities

The following table sets forth information related to the measurement of the Company's lease liabilities as of the dates presented:

	December 31, 2022	December 31, 2021
Weighted average remaining lease term (in years)	22.9	21.5
Weighted average discount rate	6.09%	6.08%

Schedule of Rent Expense

The following table sets forth the details of rent expense for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31,
(in thousands)	2022		2021		2020
Fixed rent expense - Ground Rent	$	981	$	957	$	905
Fixed rent expense - Office Rent	511		510		512
Variable rent expense	—		—		—
Total rent expense	$	1,492	$	1,467	$	1,418

Schedule of Future Lease Payments due from Company Under Ground, Office and Equipment Operating Leases (ASC 842)

As of December 31, 2022, future lease payments due from the Company under the ground, office and equipment operating leases where the Company is directly responsible for payment and the future lease payments due under the ground operating leases where the Company's tenants are directly responsible for payment over the next five years and thereafter were as follows:

(in thousands)	Office and Equipment Leases		Ground Leases to be Paid by the Company		Ground Leases to be Paid Directly by the Company’s Tenants		Total Future Minimum Base Rental Payments
2023	$	525	$	135	$	773	$	1,433
2024	531		28		728		1,287
2025	538		—		653		1,191
2026	—		—		658		658
2027	—		—		671		671
Thereafter	—		—		15,453		15,453
Total	$	1,594	$	163	$	18,936	20,693
Present value discount							(11,714)
Lease liabilities							$	8,979

XML

Long Term Debt (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Outstanding Indebtedness

The following table summarizes the Company's outstanding indebtedness as of December 31, 2022 and 2021:

		Principal Outstanding				Weighted Average Interest Rate (1)
(in thousands)	Maturity Date	December 31, 2022		December 31, 2021		December 31, 2022	December 31, 2021
Unsecured term loans:
2024 Term Loan	April 2024	$	200,000	$	200,000	5.3%	1.3%
2027 Term Loan	February 2027	430,000		430,000		5.3%	1.6%
2028 Term Loan	January 2028	400,000		—		5.3%	—%
Senior unsecured notes	July 2031	400,000		400,000		3.0%	3.0%
Revolving Credit Facility	February 2026	—		144,000		—%	1.3%
Total principal outstanding		$	1,430,000	$	1,174,000	4.6%	2.0%

______________________________________________________

(1)Interest rates are presented as stated in debt agreements and do not reflect the impact of the Company's interest rate swap and lock agreements, where applicable (see Note 6—Derivative and Hedging Activities).

The following table presents information about the Revolving Credit Facility for the years ended December 31, 2022, 2021 and 2020:

(in thousands)	2022		2021		2020
Balance on Balance on January 1,	$	144,000	$	18,000	$	46,000
Borrowings	299,000		393,000		87,000
Repayments	(443,000)		(267,000)		(115,000)
Balance on December 31,	$	—	$	144,000	$	18,000

The following table presents information about interest expense related to the Revolving Credit Facility for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense and fees	$	2,807	$	1,552	$	1,367
Amortization of deferred financing costs	1,217		1,165		1,165
Total	$	4,024	$	2,717	$	2,532

The following table presents information about aggregate interest expense related to the 2024 Term Loan, 2027 Term Loan and 2028 Term Loan:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense	$	23,967	$	9,819	$	11,685
Amortization of deferred financing costs	836		736		711
Total	$	24,803	$	10,555	$	12,396

The following is a summary of the senior unsecured notes outstanding as of December 31, 2022 and 2021:

(dollars in thousands)	Maturity Date	Interest Payment Dates	Stated Interest Rate		Principal Outstanding
2031 Notes	July 15, 2031	January 15 and July 15	2.95	%	$	400,000

The following table presents information about interest expense related to the Company's senior unsecured notes for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021
Interest expense	$	11,711	$	5,952
Amortization of deferred financing costs and original issue discount	562		295
Total	$	12,273	$	6,247

The following table presents information about interest expense related to the Master Trust Funding Program:

	Year ended December 31,
(in thousands)	2022		2021		2020
Interest expense	$	—	$	3,551	$	7,619
Amortization of deferred financing costs	—		312		656
Total	$	—	$	3,863	$	8,275

Summary of Scheduled Principal Payments

The following table summarizes the scheduled principal payments on the Company’s outstanding indebtedness as of December 31, 2022:

(in thousands)	2024 Tem Loan		2027 Term Loan		2028 Term Loan		Senior Unsecured Notes		Revolving Credit Facility		Total
2023	$	—	$	—	$	—	$	—	$	—	$	—
2024	200,000		—		—		—		—		200,000
2025	—		—		—		—		—		—
2026	—		—		—		—		—		—
2027	—		430,000		—		—		—		430,000
Thereafter	—		—		400,000		400,000		—		800,000
Total	$	200,000	$	430,000	$	400,000	$	400,000	$	—	$	1,430,000

XML

Derivative and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Notional Amount and Fair Value of Instruments

The following table summarizes the notional amount at inception and fair value of these instruments on the Company's balance sheets as of December 31, 2022 and 2021 (dollar amounts in thousands):

						Fair Value of Asset/(Liability)(3)(4)
Derivatives Designated as Hedging Instruments	Fixed Rate Paid by Company	Effective Date	Maturity Date	Notional Value (2)		December 31, 2022		December 31, 2021
Interest Rate Swap (1)	1.96%	5/14/2019	4/12/2024	$	100,000	$	3,545	$	(2,747)
Interest Rate Swap (1)	1.95%	5/14/2019	4/12/2024	50,000		1,781		(1,374)
Interest Rate Swap (1)	1.94%	5/14/2019	4/12/2024	50,000		1,777		(1,377)
Interest Rate Swap (1)	1.52%	12/9/2019	11/26/2026	175,000		14,685		(3,444)
Interest Rate Swap (1)	1.51%	12/9/2019	11/26/2026	50,000		4,248		(996)
Interest Rate Swap (1)	1.49%	12/9/2019	11/26/2026	25,000		2,120		(481)
Interest Rate Swap (1)	1.26%	7/9/2020	11/26/2026	100,000		9,324		(790)
Interest Rate Swap (1)	1.28%	7/9/2020	11/26/2026	80,000		7,418		(629)
Interest Rate Swap	3.19%	9/26/2022	1/25/2028	50,000		1,166		—
Interest Rate Swap	3.35%	9/26/2022	1/25/2028	50,000		804		—
Interest Rate Swap	3.36%	9/26/2022	1/25/2028	25,000		387		—
Interest Rate Swap	3.43%	9/26/2022	1/25/2028	50,000		612		—
Interest Rate Swap	3.71%	9/26/2022	1/25/2028	50,000		(12)		—
Interest Rate Swap	3.70%	9/26/2022	1/25/2028	25,000		(15)		—
Interest Rate Swap	4.00%	10/26/2022	1/25/2028	50,000		(693)		—
Interest Rate Swap	3.95%	11/28/2022	1/25/2028	25,000		(293)		—
Interest Rate Swap	4.03%	11/28/2022	1/25/2028	25,000		(396)		—
Interest Rate Swap	4.06%	11/28/2022	1/25/2028	25,000		(427)		—
Interest Rate Swap	4.07%	11/28/2022	1/25/2028	25,000		(428)		—
				$	1,030,000	$	45,603	$	(11,838)

 _____________________________________

(1)In June 2022, the Company converted the reference rate used in these interest rate swaps from 1-month LIBOR to 1-month Adjusted Term SOFR.

(2)Notional value indicates the extent of the Company’s involvement in these instruments, but does not represent exposure to credit, interest rate or market risks.

(3)Derivatives in a liability position totaling $2.3 million as of December 31, 2022 are included within derivative liabilities in the Company’s consolidated balance sheets.

(4)Derivatives in an asset position totaling to $47.9 million as of December 31, 2022 are included within derivative assets in the Company’s consolidated balance sheets.

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents amounts recorded to accumulated other comprehensive income/loss related to derivative and hedging activities for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Accumulated other comprehensive income (loss)	$	56,762	$	22,508	$	(35,445)

XML

Equity (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Schedule of At the Market Program

The following table presents information about the 2022 ATM Program and the Company's prior ATM Programs:

Program Name	Date Established	Date Terminated	Maximum Sales Authorization		Gross Sales through December 31, 2022
2019 ATM Program	August 2019	June 2020	$	200,000	$	184,400
2020 ATM Program	June 2020	July 2021	$	250,000	$	166,800
2021 ATM Program	July 2021	May 2022	$	350,000	$	348,140
2022 ATM Program (1)	May 2022		$	500,000	$	75,419

_____________________________________

(1)Includes 957,453 shares as of December 31, 2022 that the Company sold on a forward basis that were physically settled for cash in January 2023.

The following table details information related to activity under the ATM Program for each period presented:

	Year ended December 31,
(in thousands, except share and per share data)	2022		2021		2020
Shares of common stock sold (1)	9,794,137		10,005,890		4,499,057
Weighted average sale price per share	$	24.00	$	27.58	$	19.02
Gross proceeds	$	235,060	$	275,972	$	85,559
Net proceeds	$	232,478	$	271,949	$	84,104

_____________________________________

(1)Includes 957,453 shares during the year ended December 31, 2022 that the Company sold on a forward basis that were physically settled for cash in January 2023.

Summary of Quarterly Cash Dividends

During the years ended December 31, 2022, 2021 and 2020, the Company's board of directors declared the following quarterly cash dividends on common stock: 

Date Declared	Record Date	Date Paid	Dividend per Share of Common Stock		Total Dividend (dollars in thousands)
November 30, 2022	December 30, 2022	January 13, 2023	$	0.275	$	39,246
September 2, 2022	September 30, 2022	October 14, 2022	$	0.27	$	38,533
June 2, 2022	June 30, 2022	July 14, 2022	$	0.27	$	35,916
March 14, 2022	March 31, 2022	April 13, 2022	$	0.26	$	34,188
December 3, 2021	December 31, 2021	January 13, 2022	$	0.26	$	32,466
September 2, 2021	September 30, 2021	October 14, 2021	$	0.25	$	30,397
May 27, 2021	June 30, 2021	July 15, 2021	$	0.25	$	29,559
March 5, 2021	March 31, 2021	April 15, 2021	$	0.24	$	26,265
December 3, 2020	December 31, 2020	January 15, 2021	$	0.24	$	25,570
September 4, 2020	September 30, 2020	October 15, 2020	$	0.23	$	24,115
June 11, 2020	June 30, 2020	July 15, 2020	$	0.23	$	21,419
March 18, 2020	March 31, 2020	April 15, 2020	$	0.23	$	21,168

XML

Equity Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Information about RSAs and RSUs Units

The following table presents information about the Company's restricted stock awards ("RSAs") and restricted stock units ("RSUs") during the years ended December 31, 2022, 2021 and 2020:

	Restricted Stock Awards			Restricted Stock Units
	Shares	Wtd. Avg. Grant Date Fair Value		Units	Wtd. Avg. Grant Date Fair Value
Unvested, January 1, 2020	492,701	$	13.72	100,814	$	22.80
Granted	3,658	15.68		269,017	24.99
Vested	(255,761)	13.73		(42,658)	21.00
Forfeited	—	—		(5,571)	—
Unvested, December 31, 2020	240,598	$	13.73	321,602	$	25.27
Unvested, January 1, 2021	240,598	$	13.73	321,602	$	25.27
Granted	—	—		213,686	31.78
Vested	(221,694)	13.70		(72,879)	18.83
Forfeited	—	—		(7,717)	23.52
Unvested, December 31, 2021	18,904	$	14.12	454,692	$	29.39
Unvested, January 1, 2022	18,904	$	14.12	454,692	$	29.39
Granted	—	—		607,347	29.08
Vested	(9,865)	14.12		(243,640)	25.70
Forfeited	—	—		(1,019)	27.25
Unvested, December 31, 2022	9,039	$	14.12	817,380	$	30.26

The following table presents information about the Company's RSAs for the periods presented: 

	Year ended December 31,
(in thousands)	2022		2021		2020
Compensation cost recognized in general and administrative expense	$	128	$	1,548	$	3,405
Dividends declared on unvested RSAs and charged directly to distributions in excess of cumulative earnings	8		70		279
Fair value of shares vested during the period	139		3,037		3,512

The following table presents information about the Company's RSUs for the periods presented:

	Year ended December 31,
(in thousands)	2022		2021		2020
Compensation cost recognized in general and administrative expense	$	9,361	$	4,135	$	2,672
Dividend equivalents declared and charged directly to distributions in excess of cumulative earnings	366		241		125
Fair value of units vested during the period	6,262		1,372		896

Schedule of Unrecognized Compensation Cost

The following table presents information about the Company's RSAs as of the dates presented: 

	December 31,
(Dollars in thousands)	2022		2021
Total unrecognized compensation cost	$	2	$	130
Weighted average period over which compensation cost will be recognized (in years)	0.1		1.0

The following table presents information about the Company's RSUs as of the dates presented:

	December 31,
(Dollars in thousands)	2022		2021
Total unrecognized compensation cost	$	13,761	$	7,735
Weighted average period over which compensation cost will be recognized (in years)	2.8		2.3

Schedule of Assumptions Used in Measurement of Grant Date Fair Value of Total Shareholder Return RSUs Using Monte Carlo Simulation Model

The grant date fair value of the TSR RSUs was measured using a Monte Carlo simulation model based on the following assumptions:

	Grant Year
	2022	2021	2020
Volatility	54%	55%	20%
Risk free rate	1.68%	0.20%	1.61%

XML

Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share (dollars in thousands):

	Year ended December 31,
(dollar amounts in thousands)	2022		2021		2020
Numerator for basic and diluted earnings per share:
Net income	$	134,742	$	96,211	$	42,528
Less: net income attributable to non-controlling interests	(612)		(486)		(255)
Less: net income allocated to unvested restricted common stock and RSUs	(374)		(311)		(404)
Net income available for common stockholders: basic	133,756		95,414		41,869
Net income attributable to non-controlling interests	612		486		255
Net income available for common stockholders: diluted	$	134,368	$	95,900	$	42,124
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding	134,950,418		116,479,322		95,664,071
Less: weighted average number of shares of unvested restricted common stock	(9,230)		(121,263)		(353,036)
Weighted average shares outstanding used in basic net income per share	134,941,188		116,358,059		95,311,035
Effects of dilutive securities: (1)
OP Units	553,847		553,847		553,847
Unvested restricted common stock and RSUs	356,044		554,432		332,823
Forward sales through ATM Program	4,837		—		—
Weighted average shares outstanding used in diluted net income per share	135,855,916		117,466,338		96,197,705

_____________________________________

(1)For the years ended December 31, 2022 and 2020 excludes the impact of 171,059 and 124,295 unvested restricted stock units, respectively, as the effect would have been antidilutive.

XML

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Matching Contributions for Defined Contribution Retirement Savings Plan

The following table presents the matching contributions made by the Company for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31,
(in thousands)	2022		2021		2020
401(k) matching contributions	$	318	$	205	$	165

XML

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Summary of Fair Values of Financial Assets Measured at Recurring Basis

The fair values of these financial assets were determined using the following input levels as of the dates presented: 

	Net Carrying				Fair Value Measurements Using Fair Value Hierarchy
(in thousands)	Value		Fair Value		Level 1		Level 2		Level 3
December 31, 2022
Financial assets:
Senior unsecured notes (1)	$	395,286	$	292,120	$	292,120	$	—	$	—
Interest rate swaps	45,603		45,603		—		45,603		—
December 31, 2021
Financial assets:
Senior unsecured notes (1)	$	394,723	$	400,640	$	400,640	$	—	$	—
Interest rate swaps	(11,838)		(11,838)		—		(11,838)		—

_____________________________________

(1)Carrying value is net of $4.0 million and $4.5 million of net deferred financing costs and $0.7 million and $0.8 million of net discount as of December 31, 2022 and 2021, respectively.

Summary of Fair Values of Real Estate Investments Measured at Nonrecurring Basis

The fair values of these real estate investments were determined using the following input levels as of the dates presented: 

	Net Carrying				Fair Value Measurements Using Fair Value Hierarchy
(in thousands)	Value		Fair Value		Level 1		Level 2		Level 3
December 31, 2022
Non-financial assets:
Long-lived assets	$	12,144	$	12,144	$	—	$	—	$	12,144
December 31, 2021
Non-financial assets:
Long-lived assets	$	—	$	—	$	—	$	—	$	—

Summary of Quantitative Information about Level 3 Fair Value Measurements

Quantitative information about Level 3 fair value measurements as of December 31, 2022 is as follows:

(dollar amounts in thousands)	Fair Value		Valuation Techniques	Significant Unobservable Inputs
Non-financial assets:
Long-lived assets:
Equipment rental and sales	$	7,337	Sales comparison approach	Comparable sales price	$	7,337
Quick service restaurant	465		Discounted cash flow approach	Terminal Value: 8.0% Discount Rate: 8.5%	465
Pet care services	2,699		Discounted cash flow approach	Terminal Value: 5.0% Discount Rate: 6.0%	2,699
Pet care services	1,643		Discounted cash flow approach	Terminal Value: 8.0% Discount Rate: 8.5%	1,643

XML

Summary of Significant Accounting Policies - Additional Information (Details)		12 Months Ended
		Dec. 31, 2022 USD ($) option segment	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jan. 01, 2020 USD ($)	Dec. 31, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments | segment		1
Allowance for loan losses		$ 765,000	$ 814,000	$ 1,018,000	$ 200,000	$ 0
Deposits		62,345,000	59,758,000	$ 26,602,000
Deposits in excess of amount insured by FDIC		$ 62,100,000	$ 59,500,000
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]		Rental revenue	Rental revenue	Rental revenue
Capitalized offering costs		$ 90,300,000	$ 79,300,000
Unrecognized tax positions		0	0
Unrecognized tax positions, interest and penalties		0	0
Liabilities	[1]	1,503,262,000	1,254,992,000
Variable Interest Entity Not Primary Beneficiary | Mortgage Receivable
Summary Of Significant Accounting Policies [Line Items]
Liabilities		$ 0	$ 0
Buildings
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		40 years
Site improvements
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		15 years
Minimum
Summary Of Significant Accounting Policies [Line Items]
Lease-up period		6 months
Number of multi-year renewal options | option		1
Maximum
Summary Of Significant Accounting Policies [Line Items]
Lease-up period		12 months
Operating Partnership Unit
Summary Of Significant Accounting Policies [Line Items]
Percentage of ownership interests in operating partnership		99.60%	99.60%

[1] The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2—Summary of Significant Accounting Policies. As of December 31, 2022 and 2021, all of the assets and liabilities of the Company were held by its operating partnership, a consolidated VIE, with the exception of $39.2 million and $32.5 million, respectively, of dividends payable.

XML

Summary of Significant Accounting Policies - Schedule of Depreciation on Real Estate Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Depreciation on real estate investments	$ 80,647	$ 61,171	$ 51,736

XML

Summary of Significant Accounting Policies - Schedule of Provisions for Impairment of Long Lived Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Provision for impairment of real estate	$ 20,164	$ 6,120	$ 8,399

XML

Summary of Significant Accounting Policies - Schedule of Contingent Rent (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Contingent rent	$ 682	$ 721	$ 444

XML

Summary of Significant Accounting Policies - Schedule of Adjustment to Rental Revenue for Tenant Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Adjustment to rental revenue for tenant credit	$ (371)	$ 2,900	$ (7,149)

XML

Summary of Significant Accounting Policies - Schedule of Mortgage Loan-Related VIEs (Details) $ in Thousands	Dec. 31, 2022 USD ($) entity	Dec. 31, 2021 USD ($) entity
Variable Interest Entity [Line Items]
Aggregate carrying value	$ 240,035	$ 189,287
Mortgage Receivable | Variable Interest Entity Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of VIEs | entity	21	23
Aggregate carrying value	$ 233,351	$ 140,851

XML

Investments - Schedule of Real Estate Investment Portfolio (Details) - property	Dec. 31, 2022	Dec. 31, 2021
Investments [Abstract]
Owned properties	1,489	1,315
Properties securing investments in mortgage loans	153	126
Ground lease interests	11	10
Total number of investments	1,653	1,451

XML

Investments - Schedule of Real Estate Investment Portfolio, Footnotes (Details)	Dec. 31, 2022 property loan	Dec. 31, 2021 property loan
Investments [Abstract]
Number of properties owned as direct financing receivables	8	11
Number of mortgage loans receivable | loan	20	17
Number of real estate subject to direct financing leases		1

XML

Investments - Schedule of Gross Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments [Abstract]
Real estate investments, at cost	$ 3,810,570	$ 3,150,840
Loans and direct financing lease receivables, net	240,035	189,287
Real estate investments held for sale, net	4,780	15,434	$ 17,058
Total gross investments	$ 4,055,385	$ 3,355,561	$ 2,528,673	$ 2,002,314

XML

Investments - Schedule of Information about Investment Activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property
Investments [Abstract]
Number of properties | property	224	297
Purchase price allocation:
Land and improvements	$ 270,049	$ 279,501
Building and improvements	481,560	544,604
Construction in progress	51,870	9,348
Intangible lease assets	3,366	11,010
Total purchase price	806,845	844,463
Intangible lease liabilities	0	(3,320)
Purchase price (including acquisition costs)	$ 806,845	$ 841,143

XML

Investments - Schedule of Information about Investment Activity, Footnotes (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($)
Investments [Abstract]
Number of properties acquired, fee interest	223
Number of properties acquired, subject to ground lease	1
Capitalized interest expense | $	$ 0.8	$ 0.1

XML

Investments - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan investment option	Dec. 31, 2021 USD ($) loan investment	Dec. 31, 2020 USD ($)	Jan. 01, 2020 USD ($)	Dec. 31, 2019 USD ($)
Investments [Abstract]
Number of acquisitions individually represented more than five percentage of total investment activity | investment	0	0
Schedule of Investments [Line Items]
Number of loan receivable agreements secured | loan	23	22
Aggregate carrying value of loans	$ 238,700	$ 187,800
Credit risk, maximum exposure	238,700
Net investments accounted for as direct financing lease receivables	2,106	2,309
Allowance for loan losses	$ 765	$ 814	$ 1,018	$ 200	$ 0
Minimum
Schedule of Investments [Line Items]
Number of renewal options | option	1

XML

Investments - Summary of Gross Investment Activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) investmentLocation	Dec. 31, 2021 USD ($) investmentLocation	Dec. 31, 2020 USD ($) investmentLocation
Number of Investment Locations
Beginning balance | investmentLocation	1,451	1,181	1,000
Acquisitions of and additions to real estate investments | investmentLocation	224	297	208
Sales of investments in real estate | investmentLocation	(54)	(38)	(49)
Relinquishment of properties at end of ground lease term | investmentLocation			(3)
Investments in loans receivable | investmentLocation	75	49	25
Principal collections on and settlements of loans and direct financing lease receivables | investmentLocation	(43)	(38)
Ending balance | investmentLocation	1,653	1,451	1,181
Dollar Amount of Investments
Beginning balance	$ 3,355,561	$ 2,528,673	$ 2,002,314
Acquisitions of and additions to real estate investments	810,661	853,798	568,204
Sales of investments in real estate	(138,515)	(57,154)	(81,312)
Relinquishment of properties at end of ground lease term			(1,931)
Provisions for impairment of real estate	(20,164)	(6,120)	(8,399)
Investments in loans receivable	143,954	137,351	61,339
Principal collections on and settlements of loans and direct financing lease receivables	(93,118)	(100,488)	(286)
Other	(2,994)	(499)	(11,256)
Ending balance	4,055,385	3,355,561	$ 2,528,673
Less: accumulated depreciation and amortization	(276,307)	(200,152)
Net investments	$ 3,779,078	$ 3,155,409

XML

Investments - Summary of Gross Investment Activity, Footnotes (Details) $ in Millions	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 property	Dec. 31, 2020 property
Real Estate Properties [Line Items]
Number of property locations of investments	1,653	1,451
Accumulated depreciation | $	$ 238.2
Vacant Properties
Real Estate Properties [Line Items]
Number of property locations of investments	4	2	7
Tenanted Properties
Real Estate Properties [Line Items]
Number of property locations of investments	9	16	10

XML

Investments - Schedule of Loans Receivable (Details) $ in Thousands	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal balance outstanding	$ 238,695	$ 187,793
Mortgage Receivables 8.00% Due 2039
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	2
Effective Interest Rate	8.80%
Stated Interest Rate	8.00%
Principal balance outstanding	$ 12,000	12,000
Mortgage Receivables 8.10% Due 2059
Accounts, Notes, Loans and Financing Receivable [Line Items]
Effective Interest Rate	8.10%
Stated Interest Rate	8.10%
Principal balance outstanding	$ 0	6,096
Mortgage Receivables 7.75% Due 2039
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	2
Effective Interest Rate	8.53%
Stated Interest Rate	7.75%
Principal balance outstanding	$ 7,300	7,300
Mortgage Receivables 7.70% Due 2034
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	69
Effective Interest Rate	8.16%
Stated Interest Rate	7.70%
Principal balance outstanding	$ 51,000	28,000
Mortgage Receivables 7.65% Due 2040
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	8.42%
Stated Interest Rate	7.65%
Principal balance outstanding	$ 5,300	5,300
Mortgage Receivables 8.50% Due 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	3
Effective Interest Rate	8.79%
Stated Interest Rate	8.50%
Principal balance outstanding	$ 2,324	2,324
Mortgage Receivables 7.00% Due 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	7.00%
Stated Interest Rate	7.00%
Principal balance outstanding	$ 600	600
Mortgage Receivables 6.75% Due 2026
Accounts, Notes, Loans and Financing Receivable [Line Items]
Effective Interest Rate	6.89%
Stated Interest Rate	6.75%
Principal balance outstanding	$ 0	14,165
Mortgage Receivables 8.25% Due 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	3
Effective Interest Rate	8.30%
Stated Interest Rate	8.25%
Principal balance outstanding	$ 3,146	3,146
Mortgage Receivables 6.40% Due 2036
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	2
Effective Interest Rate	6.87%
Stated Interest Rate	6.40%
Principal balance outstanding	$ 2,520	2,520
Mortgage Receivables 7.00% Due 2036
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	3
Effective Interest Rate	7.51%
Stated Interest Rate	7.00%
Principal balance outstanding	$ 2,673	30,806
Mortgage Receivables 7.00% Due 2036
Accounts, Notes, Loans and Financing Receivable [Line Items]
Effective Interest Rate	7.51%
Stated Interest Rate	7.00%
Principal balance outstanding	$ 0	9,679
Mortgage Receivables 7.50% Due 2031
Accounts, Notes, Loans and Financing Receivable [Line Items]
Effective Interest Rate	7.85%
Stated Interest Rate	7.50%
Principal balance outstanding	$ 0	13,000
Mortgage Receivables 8.25% Due 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	2
Effective Interest Rate	8.29%
Stated Interest Rate	8.25%
Principal balance outstanding	$ 2,389	2,389
Mortgage Receivables 8.00% Due 2051
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	5.72%
Stated Interest Rate	8.00%
Principal balance outstanding	$ 24,100	6,864
Mortgage Receivables 7.10% Due 2036
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	2
Effective Interest Rate	7.44%
Stated Interest Rate	7.10%
Principal balance outstanding	$ 9,808	9,808
Mortgage Receivables 6.80% Due 2036
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	7
Effective Interest Rate	7.30%
Stated Interest Rate	6.80%
Principal balance outstanding	$ 35,474	25,714
Mortgage Receivables 7.20% Due 2036
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	7.73%
Stated Interest Rate	7.20%
Principal balance outstanding	$ 2,470	2,470
Mortgage Receivables 8.00% Due 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	8.00%
Stated Interest Rate	8.00%
Principal balance outstanding	$ 1,754	0
Mortgage Receivables 7.00% Due 2027
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	37
Effective Interest Rate	6.80%
Stated Interest Rate	7.00%
Principal balance outstanding	$ 26,307	0
Mortgage Receivables 7.20% Due 2037
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	6.99%
Stated Interest Rate	7.20%
Principal balance outstanding	$ 3,600	0
Mortgage Receivables 8.25% Due 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	8.40%
Stated Interest Rate	8.25%
Principal balance outstanding	$ 760	0
Mortgage Receivables 8.05% Due 2037
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	4
Effective Interest Rate	8.64%
Stated Interest Rate	8.05%
Principal balance outstanding	$ 12,250	0
Mortgage Receivables 8.25% Due 2037
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	10
Effective Interest Rate	8.93%
Stated Interest Rate	8.25%
Principal balance outstanding	$ 28,938	0
Leasehold Interest 10.69% Due 2039
Accounts, Notes, Loans and Financing Receivable [Line Items]
Effective Interest Rate	10.69%
Principal balance outstanding	$ 0	1,435
Leasehold Interest 2.25% Due 2034
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	2.25%
Principal balance outstanding	$ 992	1,055
Leasehold Interest 2.41% Due 2034
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	2.41%
Principal balance outstanding	$ 1,473	1,560
Leasehold Interest 4.97% Due 2038
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Secured Properties | property	1
Effective Interest Rate	4.97%
Principal balance outstanding	$ 1,517	$ 1,562

XML

Investments - Schedule of Loans Receivable, Footnotes (Details)	12 Months Ended
	Dec. 31, 2022 land
Investments [Abstract]
Number of land lease have option for lessee to purchase leased assets	2

XML

Investments - Scheduled of Principal Payments Due under Loans Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investments [Abstract]
2023	$ 8,096
2024	981
2025	234
2026	248
2027	26,570
Thereafter	202,566
Total	$ 238,695	$ 187,793

XML

Investments - Schedule of Direct Financing Lease Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investments [Abstract]
Minimum lease payments receivable	$ 2,812	$ 3,189
Estimated unguaranteed residual value of leased assets	251	270
Unearned income from leased assets	(957)	(1,150)
Net investment	$ 2,106	$ 2,309

XML

Investments - Scheduled Future Minimum Non-Cancelable Base Rental Payments Under Direct Financing Lease Receivables (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Investments [Abstract]
2023	$ 321
2024	283
2025	254
2026	243
2027	219
Thereafter	1,492
Total	$ 2,812

XML

Investments - Summary of Changes to Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 814	$ 1,018	$ 0
Current period provision for expected credit losses	88	(204)	830
Write-offs charged	(137)	0	0
Recoveries	0	0	0
Balance at end of period	$ 765	$ 814	1,018	$ 0
Accounting Standards Update [Extensible List]				Accounting Standards Update 2016-13 [Member]
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 188
Balance at end of period				$ 188

XML

Investments - Summary of Significant Credit Quality Indicators Measured at Amortized Cost (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	$ 106,369
2021	73,420
2020	10,612
2019	48,292
Prior to 2019	2,106
Total Amortized Costs Basis	240,799
LTV less than 60%
Financing Receivable, Credit Quality Indicator [Line Items]
2022	23,000
2021	0
2020	0
2019	28,000
Prior to 2019	1,635
Total Amortized Costs Basis	52,635
LTV 60%-70%
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0
2021	28,234
2020	0
2019	0
Prior to 2019	0
Total Amortized Costs Basis	28,234
LTV greater than 70%
Financing Receivable, Credit Quality Indicator [Line Items]
2022	83,369
2021	45,186
2020	10,612
2019	20,292
Prior to 2019	471
Total Amortized Costs Basis	$ 159,930

XML

Investments - Activity in Real Estate Investments and Intangible Lease Liabilities Held for Sale (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property
Number of Properties
Beginning balance | property	9	8
Transfers to held for sale classification | property	11	20
Sales | property	(16)	(15)
Transfers to held and used classification | property	0	(4)
Ending balance | property	4	9
Real Estate Investments
Beginning balance	$ 15,434	$ 17,058
Transfers to held for sale classification	28,393	25,767
Sales	(39,047)	(13,501)
Transfers to held and used classification	0	(13,890)
Ending balance	4,780	15,434
Intangible Lease Liabilities
Beginning balance	0	0
Transfers to held for sale classification	0	0
Sales	0	0
Transfers to held and used classification	0	0
Ending balance	0	0
Net Carrying Value
Beginning balance	15,434	17,058
Transfers to held for sale classification	28,393	25,767
Sales	(39,047)	(13,501)
Transfers to held and used classification	0	(13,890)
Ending balance	$ 4,780	$ 15,434

XML

Investments - Schedule of External Customers by Geographic Areas (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Rental Revenue | Texas | Geographic Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage	13.50%	13.10%	14.90%

XML

Investments - Schedule of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross carrying amount	$ 88,364	$ 87,959
Intangible assets, accumulated amortization	35,134	28,949
Intangible assets, net carrying amount	53,230	59,010
Intangible market lease liabilities, gross carrying amount	15,325	15,948
Intangible market lease liabilities, accumulated amortization	3,774	3,255
Intangible market lease liabilities, net carrying amount	11,551	12,693
In-place leases
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross carrying amount	77,096	76,255
Intangible assets, accumulated amortization	30,217	24,540
Intangible assets, net carrying amount	46,879	51,715
Intangible market lease assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross carrying amount	11,268	11,704
Intangible assets, accumulated amortization	4,917	4,409
Intangible assets, net carrying amount	$ 6,351	$ 7,295

XML

Investments - Summary of Remaining Weighted Average Amortization Periods for Intangible Assets and Liabilities (Details)	12 Months Ended
	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Years remaining, intangible assets	9 years 1 month 6 days
Years remaining, intangible market lease liabilities	8 years 3 months 18 days
In-place leases
Finite-Lived Intangible Assets [Line Items]
Years remaining, in-place leases	8 years 9 months 18 days
Intangible market lease assets
Finite-Lived Intangible Assets [Line Items]
Years remaining, intangible assets	11 years

XML

Investments - Summary of Amortization and Accretion Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Amortization of In-Place Leases, Amortization and Accretion of Above- and Below-Market Lease Assets and Liabilities [Line Items]
Amortization of in-place leases	$ 7,575	$ 7,544	$ 7,067
Market Lease Intangibles | Rental Revenue
Amortization of In-Place Leases, Amortization and Accretion of Above- and Below-Market Lease Assets and Liabilities [Line Items]
Amortization (accretion) of market lease intangibles, net	(217)	(47)	9
Above and Below Market Ground Lease Intangibles | Property Expenses
Amortization of In-Place Leases, Amortization and Accretion of Above- and Below-Market Lease Assets and Liabilities [Line Items]
Amortization (accretion) of above- and below-market ground lease intangibles, net	$ (350)	$ (353)	$ (395)

XML

Investments - Summary of Projected Amortization Expenses for Next Five Years (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Below Market Lease Liabilities
2023	$ 701
2024	698
2025	700
2026	704
2027	728
Thereafter	8,020
Total	11,551
Net Adjustment to Rental Revenue
2023	9
2024	39
2025	49
2026	63
2027	108
Thereafter	4,932
Total	5,200
In-place leases
Intangible Assets
2023	6,187
2024	5,519
2025	4,271
2026	3,966
2027	3,437
Thereafter	23,499
Total	46,879
Above Market Lease Asset
Intangible Assets
2023	692
2024	659
2025	651
2026	641
2027	620
Thereafter	3,088
Total	$ 6,351

XML

Leases - Additional Information (Details) $ in Thousands	Dec. 31, 2022 USD ($) option	Dec. 31, 2021 USD ($)
Lessor, Lease, Description [Line Items]
ROU assets	$ 7,300	$ 7,400
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Rent receivables, prepaid expenses and other assets, net	Rent receivables, prepaid expenses and other assets, net
Lease liabilities	$ 8,979	$ 9,400
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued liabilities and other payables	Accrued liabilities and other payables
Minimum
Lessor, Lease, Description [Line Items]
Number of renewal options | option	1

XML

Leases - Scheduled Future Minimum Base Rental Payments due to be Received Under Remaining Non-Cancelable Term of Operating Leases (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 295,823
2024	298,360
2025	298,352
2026	300,847
2027	300,685
Thereafter	3,129,043
Total	$ 4,623,110

XML

Leases - Components of Fixed and Variable Lease Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Fixed lease revenues	$ 270,694	$ 210,441	$ 165,171
Variable lease revenues	1,632	1,708	1,341
Total lease revenues	$ 272,326	$ 212,149	$ 166,512
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Rental revenue	Rental revenue	Rental revenue

XML

Leases - Information Related to Measurement of Lease Liabilities (Details)	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Weighted average remaining lease term (in years)	22 years 10 months 24 days	21 years 6 months
Weighted average discount rate	6.09%	6.08%

XML

Leases - Details of Rent Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Variable rent expense	$ 0	$ 0	$ 0
Total rent expense	1,492	1,467	1,418
Ground Rent
Lessee, Lease, Description [Line Items]
Fixed rent expense	981	957	905
Office Rent
Lessee, Lease, Description [Line Items]
Fixed rent expense	$ 511	$ 510	$ 512

XML

Leases - Summary of Future Lease Payments due from Company Under Ground, Office and Equipment Operating Leases (ASC 842) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
2023	$ 1,433
2024	1,287
2025	1,191
2026	658
2027	671
Thereafter	15,453
Total	20,693
Present value discount	(11,714)
Lease liabilities	8,979	$ 9,400
Office and Equipment Leases
Lessee, Lease, Description [Line Items]
2023	525
2024	531
2025	538
2026	0
2027	0
Thereafter	0
Total	1,594
Ground Leases to be Paid by the Company
Lessee, Lease, Description [Line Items]
2023	135
2024	28
2025	0
2026	0
2027	0
Thereafter	0
Total	163
Ground Leases to be Paid Directly by the Company’s Tenants
Lessee, Lease, Description [Line Items]
2023	773
2024	728
2025	653
2026	658
2027	671
Thereafter	15,453
Total	$ 18,936

XML

Long Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal Outstanding	$ 1,430,000	$ 1,174,000
Weighted-average interest rate	4.60%	2.00%
Senior unsecured notes | Senior Unsecured Notes
Debt Instrument [Line Items]
Principal Outstanding	$ 400,000	$ 400,000
Weighted-average interest rate	3.00%	3.00%
Unsecured term loans | 2024 Term Loan | Line of Credit
Debt Instrument [Line Items]
Principal Outstanding	$ 200,000	$ 200,000
Weighted-average interest rate	5.30%	1.30%
Unsecured term loans | 2027 Term Loan | Line of Credit
Debt Instrument [Line Items]
Principal Outstanding	$ 430,000	$ 430,000
Weighted-average interest rate	5.30%	1.60%
Unsecured term loans | 2028 Term Loan | Line of Credit
Debt Instrument [Line Items]
Principal Outstanding	$ 400,000	$ 0
Weighted-average interest rate	5.30%	0.00%
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Principal Outstanding	$ 0	$ 144,000
Weighted-average interest rate	0.00%	1.30%

XML

Long Term Debt - Summary of Scheduled Principal Payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
2023	$ 0
2024	200,000
2025	0
2026	0
2027	430,000
Thereafter	800,000
Total	1,430,000
Senior Unsecured Notes
Debt Instrument [Line Items]
2023	0
2024	0
2025	0
2026	0
2027	0
Thereafter	400,000
Total	400,000
Unsecured term loans | 2024 Term Loan | Line of Credit
Debt Instrument [Line Items]
2023	0
2024	200,000
2025	0
2026	0
2027	0
Thereafter	0
Total	200,000
Unsecured term loans | 2027 Term Loan | Line of Credit
Debt Instrument [Line Items]
2023	0
2024	0
2025	0
2026	0
2027	430,000
Thereafter	0
Total	430,000
Unsecured term loans | 2028 Term Loan | Line of Credit
Debt Instrument [Line Items]
2023	0
2024	0
2025	0
2026	0
2027	0
Thereafter	400,000
Total	400,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
2023	0
2024	0
2025	0
2026	0
2027	0
Thereafter	0
Total	$ 0

XML

Long Term Debt - Revolving Credit Facility, 2024 Term Loan And 2028 Term Loan - Additional Information (Details)		1 Months Ended			12 Months Ended
	Apr. 12, 2019 USD ($)	Oct. 31, 2022 USD ($)	Jul. 31, 2022 USD ($)	Feb. 28, 2022 USD ($) option	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Line of Credit Facility [Line Items]
Loss on debt extinguishment					$ 2,138,000	$ 4,461,000	$ 924,000
Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Total deferred finance costs, net					3,700,000	1,400,000
Line of credit facility, unused borrowing capacity					600,000,000	$ 256,000,000
Revolving Credit Facility | Line of Credit | 2018 Credit Facility
Line of Credit Facility [Line Items]
Aggregate revolving credit commitments	$ 300,000,000
Revolving Credit Facility | Line of Credit | Amended Credit Agreement
Line of Credit Facility [Line Items]
Aggregate revolving credit commitments	$ 400,000,000
Credit facility term	4 years
Extension term	6 months
Revolving Credit Facility | Line of Credit | Credit Agreement
Line of Credit Facility [Line Items]
Aggregate revolving credit commitments				$ 600,000,000
Accordion feature to revolving credit commitment				$ 600,000,000
Loss on debt extinguishment					$ 100,000
Extension term				6 months
Number of extension options | option				2
Unsecured term loans | Line of Credit | 2024 Term Loan
Line of Credit Facility [Line Items]
Maximum additional availability of the facility	$ 200,000,000
Unsecured term loans | Line of Credit | 2028 Term Loan
Line of Credit Facility [Line Items]
Aggregate revolving credit commitments			$ 600,000,000
Proceeds from debt		$ 150,000,000	$ 250,000,000
Consolidated leverage ratio, maximum			0.35
Unsecured term loans | Line of Credit | 2028 Term Loan, Second Tranche
Line of Credit Facility [Line Items]
Aggregate revolving credit commitments			$ 400,000,000

XML

Long Term Debt - Summary of Information about Revolving Credit Facility (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Line of Credit Facility, Roll Forward [Roll Forward]
Beginning balance	$ 144,000
Borrowings	299,000	$ 393,000	$ 87,000
Repayments	(443,000)	(267,000)	(115,000)
Ending balance	0	144,000
Revolving Credit Facility | Line of Credit
Line of Credit Facility, Roll Forward [Roll Forward]
Beginning balance	144,000	18,000	46,000
Borrowings	299,000	393,000	87,000
Repayments	(443,000)	(267,000)	(115,000)
Ending balance	$ 0	$ 144,000	$ 18,000

XML

Long Term Debt - Information About Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Senior Unsecured Notes | Senior unsecured notes
Line of Credit Facility [Line Items]
Interest expense and fees	$ 11,711	$ 5,952
Amortization of deferred financing costs and original issue discount	562	295
Total	12,273	6,247
Secured Borrowings | Master Trust Funding Program
Line of Credit Facility [Line Items]
Interest expense and fees	0	3,551	$ 7,619
Amortization of deferred financing costs	0	312	656
Total	0	3,863	8,275
Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Interest expense and fees	2,807	1,552	1,367
Amortization of deferred financing costs	1,217	1,165	1,165
Total	4,024	2,717	2,532
Unsecured term loans | Line of Credit | April 2024 And February 2027 And February 2028 Term Loan
Line of Credit Facility [Line Items]
Interest expense and fees	23,967	9,819	11,685
Amortization of deferred financing costs	836	736	711
Total	$ 24,803	$ 10,555	$ 12,396

XML

Long Term Debt - 2027 Term Loan - Additional Information (Details) - USD ($)	4 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Nov. 26, 2019
Line of Credit Facility [Line Items]
Loss on debt extinguishment		$ 2,138,000	$ 4,461,000	$ 924,000
Unsecured term loans | Line of Credit | 2027 Term Loan
Line of Credit Facility [Line Items]
Notes issued					$ 430,000,000
Aggregate revolving credit commitments					430,000,000
Proceeds from debt	$ 430,000,000
Loss on debt extinguishment		2,100,000
Maximum additional availability of the facility					$ 500,000,000
Total deferred finance costs, net		$ 4,500,000	$ 3,000,000

XML

Long Term Debt - Senior Unsecured Note - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2022
Debt Instrument [Line Items]
Proceeds from issuance of Senior Unsecured Notes		$ 0	$ 396,600,000	$ 0
2031 Senior Notes | Senior Unsecured Notes
Debt Instrument [Line Items]
Notes issued		$ 400,000,000			$ 400,000,000
Stated Interest Rate		2.95%			2.95%
Proceeds from issuance of Senior Unsecured Notes	$ 396,600,000
Percent of principal note amount issued	99.80%
Deferred finance costs					$ 4,700,000
Offering discount		$ 700,000	800,000		$ 800,000
Debt instrument, redemption price, percentage		100.00%
Total deferred finance costs, net		$ 4,000,000	$ 4,500,000

XML

Long Term Debt - Senior Unsecured Note - Schedule of Interest Expense and Amounts Outstanding (Details) - 2031 Senior Notes - Senior Unsecured Notes - USD ($)	Dec. 31, 2022	Jun. 30, 2022
Debt Instrument [Line Items]
Stated Interest Rate	2.95%	2.95%
Principal Outstanding	$ 400,000,000	$ 400,000,000

XML

Long Term Debt - Secured Borrowings - Additional Information (Details) $ in Thousands	1 Months Ended			12 Months Ended
	Jun. 30, 2021 USD ($)	Feb. 29, 2020 USD ($)	Jul. 31, 2017 USD ($) specialPurposeEntity	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Loss on debt extinguishment				$ 2,138	$ 4,461	$ 924
Secured Borrowings
Debt Instrument [Line Items]
Number of special purpose entities formed to hold assets and issue secured borrowings | specialPurposeEntity			3
Series 2017-1 Class A Notes | Secured Borrowings
Debt Instrument [Line Items]
Notes issued			$ 232,400
Prepayment of debt	$ 171,200	$ 62,300
Loss on debt extinguishment						$ 900
Make-whole premium paid	$ 2,500
Series 2017-1 Class B Notes | Secured Borrowings
Debt Instrument [Line Items]
Notes issued			$ 15,700

XML

Derivative and Hedging Activities - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	May 31, 2021
Derivative [Line Items]
Derivatives reclassified from other comprehensive income	$ 26,600,000
Derivative asset, including accrued interest	48,200,000	$ 0
Derivative liability, including accrued interest	2,400,000	11,900,000
Derivative asset, termination value	45,900,000
Derivative liability, termination value		11,900,000
Cash Flow Hedging | Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Gain (loss) on change in fair value	$ 26,000	(10,100,000)	$ (6,700,000)
Treasury Lock | Cash Flow Hedging | Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Derivative, notional amount				$ 330,000,000
Gain (loss) on change in fair value		$ (4,800,000)

XML

Derivative and Hedging Activities - Summary of Notional Amount and Fair Value of Instruments (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Derivative assets	$ 47,877,000	$ 0
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional value	1,030,000,000
Fair Value of Asset/(Liability)	45,603,000	(11,838,000)
Interest Rate Swap | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative liabilities	2,300,000
Derivative assets	$ 47,900,000
Interest Rate Swap One | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	1.96%
Notional value	$ 100,000,000
Fair Value of Asset/(Liability)	$ 3,545,000	(2,747,000)
Interest Rate Swap Two | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	1.95%
Notional value	$ 50,000,000
Fair Value of Asset/(Liability)	$ 1,781,000	(1,374,000)
Interest Rate Swap Three | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	1.94%
Notional value	$ 50,000,000
Fair Value of Asset/(Liability)	$ 1,777,000	(1,377,000)
Interest Rate Swap Four | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	1.52%
Notional value	$ 175,000,000
Fair Value of Asset/(Liability)	$ 14,685,000	(3,444,000)
Interest Rate Swap Five | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	1.51%
Notional value	$ 50,000,000
Fair Value of Asset/(Liability)	$ 4,248,000	(996,000)
Interest Rate Swap Six | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	1.49%
Notional value	$ 25,000,000
Fair Value of Asset/(Liability)	$ 2,120,000	(481,000)
Interest Rate Swap Seven | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	1.26%
Notional value	$ 100,000,000
Fair Value of Asset/(Liability)	$ 9,324,000	(790,000)
Interest Rate Swap Eight | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	1.28%
Notional value	$ 80,000,000
Fair Value of Asset/(Liability)	$ 7,418,000	(629,000)
Interest Rate Swap Nine | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	3.19%
Notional value	$ 50,000,000
Fair Value of Asset/(Liability)	$ 1,166,000	0
Interest Rate Swap Ten | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	3.35%
Notional value	$ 50,000,000
Fair Value of Asset/(Liability)	$ 804,000	0
Interest Rate Swap Eleven | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	3.36%
Notional value	$ 25,000,000
Fair Value of Asset/(Liability)	$ 387,000	0
Interest Rate Swap Twelve | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	3.43%
Notional value	$ 50,000,000
Fair Value of Asset/(Liability)	$ 612,000	0
Interest Rate Swap Thirteen | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	3.71%
Notional value	$ 50,000,000
Fair Value of Asset/(Liability)	$ (12,000)	0
Interest Rate Swap Fourteen | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	3.70%
Notional value	$ 25,000,000
Fair Value of Asset/(Liability)	$ (15,000)	0
Interest Rate Swap Fifteen | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	4.00%
Notional value	$ 50,000,000
Fair Value of Asset/(Liability)	$ (693,000)	0
Interest Rate Swap Sixteen | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	3.95%
Notional value	$ 25,000,000
Fair Value of Asset/(Liability)	$ (293,000)	0
Interest Rate Swap Seventeen | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	4.03%
Notional value	$ 25,000,000
Fair Value of Asset/(Liability)	$ (396,000)	0
Interest Rate Swap Eighteen | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	4.06%
Notional value	$ 25,000,000
Fair Value of Asset/(Liability)	$ (427,000)	0
Interest Rate Swap Nineteen | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fixed Rate Paid by Company	4.07%
Notional value	$ 25,000,000
Fair Value of Asset/(Liability)	$ (428,000)	$ 0

XML

Derivative and Hedging Activities - Summary of Changes in Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss)	$ 56,762	$ 22,508	$ (35,445)
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss)	$ 56,762	$ 22,508	$ (35,445)

XML

Equity - Additional Information (Details) - USD ($)	1 Months Ended				12 Months Ended
	Aug. 31, 2022	Apr. 30, 2021	Sep. 30, 2020	Jan. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	May 31, 2022
Class of Stock [Line Items]
Proceeds from shares sold					$ 403,884,000	$ 458,267,000	$ 461,006,000
Percentage of cash distributions paid to stockholders that were considered taxable income					79.70%	69.40%	59.00%
Percentage of cash distributions paid to stockholders that were considered a return of capital					20.30%	30.60%	41.00%
2022 ATM Program
Class of Stock [Line Items]
Authorized equity distribution program					$ 500,000,000			$ 500,000,000
Common Stock
Class of Stock [Line Items]
Shares of common stock sold (in shares)					17,576,684	18,230,721	22,554,057
Common Stock | Follow-On Offering
Class of Stock [Line Items]
Shares of common stock sold (in shares)	8,740,000	8,222,500	10,120,000	7,935,000
Number of shares sold pursuant to underwriter's option (in shares)	1,140,000	1,072,500	1,320,000	1,035,000
Price of shares sold (in USD per share)	$ 23.00	$ 23.50	$ 19.00	$ 25.20
Proceeds from shares sold	$ 192,600,000	$ 185,100,000	$ 184,100,000	$ 191,500,000

XML

Equity - Schedule of Information about 2022 ATM and Prior Programs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	May 31, 2022
2019 ATM Program
Subsidiary, Sale of Stock [Line Items]
Authorized equity distribution program	$ 200,000,000
Gross proceeds	184,400,000
2020 ATM Program
Subsidiary, Sale of Stock [Line Items]
Authorized equity distribution program	250,000,000
Gross proceeds	166,800,000
2021 ATM Program
Subsidiary, Sale of Stock [Line Items]
Authorized equity distribution program	350,000,000
Gross proceeds	348,140,000
2022 ATM Program
Subsidiary, Sale of Stock [Line Items]
Authorized equity distribution program	500,000,000	$ 500,000,000
Gross proceeds	$ 75,419,000
Shares sold on a forward basis, not yet settled (in shares)	957,453

XML

Equity - Schedule of At the Market Program (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Subsidiary, Sale of Stock [Line Items]
Net proceeds	$ 403,884	$ 458,267	$ 461,006
ATM Program
Subsidiary, Sale of Stock [Line Items]
Shares of common stock sold (in shares)	9,794,137	10,005,890	4,499,057
Weighted average sale price per share (in USD per share)	$ 24.00	$ 27.58	$ 19.02
Gross proceeds	$ 235,060	$ 275,972	$ 85,559
Net proceeds	$ 232,478	$ 271,949	$ 84,104
Shares sold on a forward basis, not yet settled (in shares)	957,453

XML

Equity - Summary of Quarterly Cash Dividends (Details) - Common Stock - USD ($) $ / shares in Units, $ in Thousands	Nov. 30, 2022	Sep. 02, 2022	Jun. 02, 2022	Mar. 14, 2022	Dec. 03, 2021	Sep. 02, 2021	May 27, 2021	Mar. 05, 2021	Dec. 03, 2020	Sep. 04, 2020	Jun. 11, 2020	Mar. 18, 2020
Dividends Payable [Line Items]
Dividend per Share of Common Stock (in USD per share)	$ 0.275	$ 0.27	$ 0.27	$ 0.26	$ 0.26	$ 0.25	$ 0.25	$ 0.24	$ 0.24	$ 0.23	$ 0.23	$ 0.23
Total Dividend (dollars in thousands)	$ 39,246	$ 38,533	$ 35,916	$ 34,188	$ 32,466	$ 30,397	$ 29,559	$ 26,265	$ 25,570	$ 24,115	$ 21,419	$ 21,168

XML

Non-controlling Interests (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Noncontrolling Interest [Line Items]
Outstanding period for distribution	1 year
Operating Partnership Unit
Noncontrolling Interest [Line Items]
Percentage of ownership interests in operating partnership	99.60%	99.60%
Award exchange ratio	1
Operating Partnership Unit | EPRT Holdings LLC
Noncontrolling Interest [Line Items]
Percentage of ownership interests in operating partnership	0.40%	0.40%
Interest held in operating partnership (in shares)	553,847	553,847
Eldridge Industries, LLC | Operating Partnership Unit
Noncontrolling Interest [Line Items]
Operating partnership units held (in shares)	142,379,655	124,649,053
Essential Properties OP GP LLC
Noncontrolling Interest [Line Items]
Percentage of general partner partnership interest owned	1.00%

XML

Equity Based Compensation - Equity Incentive Plan - Additional Information (Details)	Dec. 31, 2022 shares
Share-Based Payment Arrangement [Abstract]
Maximum number of shares issuable under plan (in shares)	3,550,000

XML

Equity Based Compensation - Schedule of Information about RSAs and RSUs Units (Details) - $ / shares		1 Months Ended		12 Months Ended
	Jun. 25, 2018	Jun. 30, 2020	Jan. 31, 2019	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restricted Stock Awards
Restricted Stock Awards
Beginning balance (in shares)				18,904	240,598	492,701
Granted (in shares)	691,290	3,658	46,368	0	0	3,658
Vested (in shares)				(9,865)	(221,694)	(255,761)
Forfeited (in shares)				0	0	0
Ending balance (in shares)				9,039	18,904	240,598
Restricted Stock Units
Beginning balance (in USD per share)				$ 14.12	$ 13.73	$ 13.72
Granted (in USD per share)				0	0	15.68
Vested (in USD per share)				14.12	13.70	13.73
Forfeited (in USD per share)				0	0	0
Ending balance (in USD per share)				$ 14.12	$ 14.12	$ 13.73
Restricted Stock Units
Restricted Stock Awards
Beginning balance (in shares)				454,692	321,602	100,814
Granted (in shares)				607,347	213,686	269,017
Vested (in shares)				(243,640)	(72,879)	(42,658)
Forfeited (in shares)				(1,019)	(7,717)	(5,571)
Ending balance (in shares)				817,380	454,692	321,602
Restricted Stock Units
Beginning balance (in USD per share)				$ 29.39	$ 25.27	$ 22.80
Granted (in USD per share)				29.08	31.78	24.99
Vested (in USD per share)				25.70	18.83	21.00
Forfeited (in USD per share)				27.25	23.52	0
Ending balance (in USD per share)				$ 30.26	$ 29.39	$ 25.27

XML

Equity Based Compensation - Restricted Stock Awards - Additional Information (Details) - Restricted Stock Awards - shares		1 Months Ended		12 Months Ended
	Jun. 25, 2018	Jun. 30, 2020	Jan. 31, 2019	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unvested shares issued (in shares)	691,290	3,658	46,368	0	0	3,658
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year		1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years		4 years

XML

Equity Based Compensation - Schedule of Information about RSAs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost recognized in general and administrative expense	$ 9,489	$ 5,683	$ 6,085
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared on unvested RSAs and charged directly to distributions in excess of cumulative earnings	8	70	279
Fair value of shares vested during the period	139	3,037	3,512
Restricted Stock Awards | General and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost recognized in general and administrative expense	$ 128	$ 1,548	$ 3,405

XML

Equity Based Compensation - Schedule of Information about Unrecognized Compensation Cost RSAs (Details) - Restricted Stock Awards - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 2	$ 130
Weighted average period over which compensation cost will be recognized (in years)	1 month 6 days	1 year

XML

Equity Based Compensation - Restricted Stock Units - Additional Information (Details) - USD ($)	1 Months Ended				12 Months Ended
	Jan. 31, 2022	May 31, 2021	Jun. 30, 2020	May 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense					$ 9,489,000	$ 5,683,000	$ 6,085,000
Performance Based Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unvested shares issued (in shares)	78,801				149,699	126,353	84,684	119,085
Nonvested share awards percentage					75.00%
Performance period					20 days
TSR as percentage of peer group					50.00%
Nonvested share awards remaining percentage issued					25.00%
Performance Based Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage payout	50.00%
Performance Based Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage payout	50.00%
Performance Based Restricted Stock Units (RSUs) | Executive officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unvested shares issued (in shares)	69,372			7,596
Equity based compensation expense					$ 900,000
Vesting performance period	5 years
Performance Based Restricted Stock Units (RSUs) | Executive officers | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage payout	50.00%
Vesting period	4 years
Performance Based Restricted Stock Units (RSUs) | Executive officers | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage payout	50.00%
Vesting period	5 years
Performance Based Restricted Stock Units (RSUs) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage payout					0.00%
Performance Based Restricted Stock Units (RSUs) | Minimum | Executive officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award payout based on adjusted funds from operations performance	0
Performance Based Restricted Stock Units (RSUs) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage payout					250.00%
Performance Based Restricted Stock Units (RSUs) | Maximum | Executive officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award payout based on adjusted funds from operations performance	2
Performance Based Restricted Stock Units (RSUs) Granted In 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense					$ 2,100,000
Performance Based Restricted Stock Units (RSUs) Granted In 2020, 2021 And 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense					$ 0	$ 0	$ 0
Time Based Restricted Stock Based Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of unvested shares issued (in shares)		16,765	26,817		199,793	118,921	157,943
Vesting period		1 year	1 year		5 years	5 years	5 years

XML

Equity Based Compensation - Schedule of Assumptions Used in Measurement of Grant Date Fair Value of Total Shareholder Return RSUs Using Monte Carlo Simulation Model (Details) - Performance Based Restricted Stock Units (RSUs)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	54.00%	55.00%	20.00%
Risk free rate	1.68%	0.20%	1.61%

XML

Equity Based Compensation - Schedule of Information about RSUs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost recognized in general and administrative expense	$ 9,489	$ 5,683	$ 6,085
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend equivalents declared and charged directly to distributions in excess of cumulative earnings	366	241	125
Fair value of units vested during the period	6,262	1,372	896
Restricted Stock Units | General and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost recognized in general and administrative expense	$ 9,361	$ 4,135	$ 2,672

XML

Equity Based Compensation - Schedule of Information about Unrecognized Compensation Cost Restricted Stock Units (Details) - Restricted Stock Units - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 13,761	$ 7,735
Weighted average period over which compensation cost will be recognized (in years)	2 years 9 months 18 days	2 years 3 months 18 days

XML

Net Income Per Share - Additional Information (Details)	Dec. 31, 2022
Operating Partnership Unit
Earnings Per Share [Line Items]
Award exchange ratio	1

XML

Net Income Per Share - Reconciliation of Numerator and Denominator used in Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator for basic and diluted earnings per share:
Net income	$ 134,742	$ 96,211	$ 42,528
Less: net income attributable to non-controlling interests	(612)	(486)	(255)
Less: net income allocated to unvested restricted common stock and RSUs	(374)	(311)	(404)
Net income available for common stockholders: basic	133,756	95,414	41,869
Net income attributable to non-controlling interests	612	486	255
Net income available for common stockholders: diluted	$ 134,368	$ 95,900	$ 42,124
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding (in shares)	134,950,418	116,479,322	95,664,071
Less: weighted average number of shares of unvested restricted common stock (in shares)	(9,230)	(121,263)	(353,036)
Weighted average shares outstanding used in basic net income per share (in shares)	134,941,188	116,358,059	95,311,035
Effects of dilutive securities:
Forward sales through ATM Program (in shares)	4,837	0	0
Weighted average shares outstanding used in diluted net income per share (in shares)	135,855,916	117,466,338	96,197,705
Restricted Stock Units
Effects of dilutive securities:
Antidilutive securities excluded from computation of earnings per share (in shares)	171,059		124,295
Unvested Restricted Common Stock and RSUs
Effects of dilutive securities:
Dilutive securities (in shares)	356,044	554,432	332,823
Operating Partnership Unit
Effects of dilutive securities:
Dilutive securities (in shares)	553,847	553,847	553,847

XML

Commitments and Contingencies - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Commitments and Contingencies [Line Items]
Reimbursement to tenants	$ 34.6
Employer matching contribution, percent of match	100.00%
Employer matching contribution, percent of eligible compensation	6.00%
Executive officers
Commitments and Contingencies [Line Items]
Employment agreement initial term	4 years
Employment agreement, automatic extension period upon non-renewal notice not provided	1 year
Employment agreement, base salary term after termination	12 months
Employment agreement, COBRA term after termination	12 months

XML

Commitment and Contingencies - Schedule of Matching Contributions for Defined Contribution Retirement Savings Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
401(k) matching contributions	$ 318	$ 205	$ 165

XML

Fair Value Measurements - Summary of Fair Values of Financial Assets Measured at Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Senior Unsecured Notes | Senior unsecured notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total deferred finance costs, net	$ 4,000		$ 4,500
Offering discount	700	$ 800	800
Fair Value Measurements, Recurring | Net Carrying | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	45,603		(11,838)
Fair Value Measurements, Recurring | Net Carrying | Senior Unsecured Notes | Senior unsecured notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior unsecured notes	395,286		394,723
Fair Value Measurements, Recurring | Fair Value | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	45,603		(11,838)
Fair Value Measurements, Recurring | Fair Value | Senior Unsecured Notes | Senior unsecured notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior unsecured notes	292,120		400,640
Fair Value Measurements, Recurring | Fair Value | Level 1 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	0		0
Fair Value Measurements, Recurring | Fair Value | Level 1 | Senior Unsecured Notes | Senior unsecured notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior unsecured notes	292,120		400,640
Fair Value Measurements, Recurring | Fair Value | Level 2 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	45,603		(11,838)
Fair Value Measurements, Recurring | Fair Value | Level 2 | Senior Unsecured Notes | Senior unsecured notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior unsecured notes	0		0
Fair Value Measurements, Recurring | Fair Value | Level 3 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	0		0
Fair Value Measurements, Recurring | Fair Value | Level 3 | Senior Unsecured Notes | Senior unsecured notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior unsecured notes	$ 0		$ 0

XML

Fair Value Measurements - Summary of Fair Values of Real Estate Investments Measured at Nonrecurring Basis (Details) - Fair Value Measurements, Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Net Carrying
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	$ 12,144	$ 0
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	12,144	0
Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	0	0
Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	0	0
Fair Value | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	$ 12,144	$ 0

XML

Fair Value Measurements - Summary of Quantitative Information About Level 3 Fair Value Measurements (Details) - Level 3 $ in Thousands	Dec. 31, 2022 USD ($)
Equipment Rental and Sales
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	$ 7,337
Equipment Rental and Sales | Sales comparison approach
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	7,337
Restaurants - Quick Service
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	$ 465
Restaurants - Quick Service | Discounted cash flow approach
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	465
Restaurants - Quick Service | Discounted cash flow approach | Terminal value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	0.080
Restaurants - Quick Service | Discounted cash flow approach | Discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	0.085
Pet Care Services
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	$ 2,699
Pet Care Services | Discounted cash flow approach
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	2,699
Pet Care Services | Discounted cash flow approach | Terminal value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	0.050
Pet Care Services | Discounted cash flow approach | Discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	0.060
Pet care services
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets	$ 1,643
Pet care services | Discounted cash flow approach
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	1,643
Pet care services | Discounted cash flow approach | Terminal value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	0.080
Pet care services | Discounted cash flow approach | Discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Significant Unobservable Inputs	0.085

XML

Subsequent Events (Details)	1 Months Ended			2 Months Ended	12 Months Ended
	Jan. 31, 2023 USD ($) shares	May 31, 2021 shares	Jun. 30, 2020 shares	Feb. 15, 2023 USD ($) property	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($) shares
Subsequent Event
Payments to acquire loans receivable					$ 115,016,000	$ 136,391,000	$ 60,480,000
Proceeds from issuance of common stock, net					403,884,000	$ 458,267,000	$ 461,006,000
2022 ATM Program
Subsequent Event
Gross sales (in shares)					$ 75,419,000
Shares sold on a forward basis, not yet settled (in shares) | shares					957,453
Time Based Restricted Stock Based Units (RSUs)
Subsequent Event
Number of unvested shares issued (in shares) | shares		16,765	26,817		199,793	118,921	157,943
Vesting period		1 year	1 year		5 years	5 years	5 years
Subsequent Event
Subsequent Event
Number of real estate investment properties acquired | property				13
Aggregate investment (including acquisition-related costs)				$ 56,900,000
Investment in new and ongoing construction in progress				5,500,000
Payments to acquire loans receivable				$ 3,400,000
Number of investment properties sold or transferred | property				8
Investment, aggregate gross sales price				$ 19,700,000
Investment, disposition costs				$ 1,000,000
Subsequent Event | 2022 ATM Program
Subsequent Event
Common stock issuance (in shares) | shares	857,643
Gross sales (in shares)	$ 20,700,000
Shares sold on a forward basis (in shares) | shares	731,185
Shares settled (in shares) | shares	1,688,638
Proceeds from issuance of common stock, net	$ 39,200,000
Subsequent Event | Time Based Restricted Stock Based Units (RSUs) | Employees
Subsequent Event
Number of unvested shares issued (in shares) | shares	30,135
Vesting period	4 years

XML

Schedule III - Real Estate and Accumulated Depreciation (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1,490
Initial cost to company, land & improvements	$ 1,228,036
Initial cost to company, building & improvements	2,364,891
Cost capitalized subsequent to acquisition, land & improvements	651
Cost capitalized subsequent to acquisition, building & improvements	75,739
Gross amount, land & improvements	1,228,687
Gross amount, building & improvements	2,440,630
Gross amount, total	3,669,317	$ 3,040,073	$ 2,260,919	$ 1,812,961
Accumulated depreciation	$ (238,022)	$ (169,126)	$ (112,144)	$ (71,445)
Automotive Service | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 770
Initial cost to company, building & improvements	882
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	770
Gross amount, building & improvements	882
Gross amount, total	1,652
Accumulated depreciation	$ (94)
Automotive Service | Arizona
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	10
Initial cost to company, land & improvements	$ 11,078
Initial cost to company, building & improvements	20,169
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	11,078
Gross amount, building & improvements	20,169
Gross amount, total	31,247
Accumulated depreciation	$ (1,154)
Automotive Service | California
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 4,502
Initial cost to company, building & improvements	8,499
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,502
Gross amount, building & improvements	8,499
Gross amount, total	13,001
Accumulated depreciation	$ (385)
Automotive Service | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 6,027
Initial cost to company, building & improvements	11,544
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	6,027
Gross amount, building & improvements	11,544
Gross amount, total	17,571
Accumulated depreciation	$ (512)
Automotive Service | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 1,862
Initial cost to company, building & improvements	2,642
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	523
Gross amount, land & improvements	1,862
Gross amount, building & improvements	3,165
Gross amount, total	5,027
Accumulated depreciation	$ (572)
Automotive Service | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	19
Initial cost to company, land & improvements	$ 9,198
Initial cost to company, building & improvements	20,490
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	9,198
Gross amount, building & improvements	20,490
Gross amount, total	29,688
Accumulated depreciation	$ (785)
Automotive Service | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 3,931
Initial cost to company, building & improvements	8,499
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,931
Gross amount, building & improvements	8,499
Gross amount, total	12,430
Accumulated depreciation	$ (344)
Automotive Service | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	8
Initial cost to company, land & improvements	$ 1,509
Initial cost to company, building & improvements	4,617
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	302
Gross amount, land & improvements	1,509
Gross amount, building & improvements	4,919
Gross amount, total	6,428
Accumulated depreciation	$ (171)
Automotive Service | Kansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 3,009
Initial cost to company, building & improvements	4,366
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,009
Gross amount, building & improvements	4,366
Gross amount, total	7,375
Accumulated depreciation	$ (203)
Automotive Service | Maryland
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,667
Initial cost to company, building & improvements	7,848
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,667
Gross amount, building & improvements	7,848
Gross amount, total	10,515
Accumulated depreciation	$ (1,187)
Automotive Service | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 4,420
Initial cost to company, building & improvements	9,153
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,420
Gross amount, building & improvements	9,153
Gross amount, total	13,573
Accumulated depreciation	$ (1,077)
Automotive Service | Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 4,177
Initial cost to company, building & improvements	7,910
Cost capitalized subsequent to acquisition, land & improvements	180
Cost capitalized subsequent to acquisition, building & improvements	25
Gross amount, land & improvements	4,357
Gross amount, building & improvements	7,935
Gross amount, total	12,292
Accumulated depreciation	$ (1,084)
Automotive Service | Mississippi
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 1,948
Initial cost to company, building & improvements	3,114
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,948
Gross amount, building & improvements	3,114
Gross amount, total	5,062
Accumulated depreciation	$ (179)
Automotive Service | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 2,544
Initial cost to company, building & improvements	6,265
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,544
Gross amount, building & improvements	6,265
Gross amount, total	8,809
Accumulated depreciation	$ (257)
Automotive Service | Nebraska
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,177
Initial cost to company, building & improvements	479
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,177
Gross amount, building & improvements	479
Gross amount, total	1,656
Accumulated depreciation	$ (37)
Automotive Service | New Jersey
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	15
Initial cost to company, land & improvements	$ 18,363
Initial cost to company, building & improvements	21,101
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	18,363
Gross amount, building & improvements	21,101
Gross amount, total	39,464
Accumulated depreciation	$ (1,749)
Automotive Service | New Mexico
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 800
Initial cost to company, building & improvements	3,016
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	50
Gross amount, land & improvements	800
Gross amount, building & improvements	3,066
Gross amount, total	3,866
Accumulated depreciation	$ (110)
Automotive Service | New York
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 3,235
Initial cost to company, building & improvements	6,667
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,235
Gross amount, building & improvements	6,667
Gross amount, total	9,902
Accumulated depreciation	$ (1,017)
Automotive Service | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 3,249
Initial cost to company, building & improvements	3,366
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,249
Gross amount, building & improvements	3,366
Gross amount, total	6,615
Accumulated depreciation	$ (515)
Automotive Service | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 1,480
Initial cost to company, building & improvements	2,955
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,480
Gross amount, building & improvements	2,955
Gross amount, total	4,435
Accumulated depreciation	$ (299)
Automotive Service | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	20
Initial cost to company, land & improvements	$ 9,013
Initial cost to company, building & improvements	27,923
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	9,013
Gross amount, building & improvements	27,923
Gross amount, total	36,936
Accumulated depreciation	$ (2,074)
Automotive Service | Oregon
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,076
Initial cost to company, building & improvements	1,104
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,076
Gross amount, building & improvements	1,104
Gross amount, total	2,180
Accumulated depreciation	$ (39)
Automotive Service | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 4,056
Initial cost to company, building & improvements	5,360
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,056
Gross amount, building & improvements	5,360
Gross amount, total	9,416
Accumulated depreciation	$ (585)
Automotive Service | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 388
Initial cost to company, building & improvements	286
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	388
Gross amount, building & improvements	286
Gross amount, total	674
Accumulated depreciation	$ (36)
Automotive Service | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,584
Initial cost to company, building & improvements	3,368
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,584
Gross amount, building & improvements	3,368
Gross amount, total	5,952
Accumulated depreciation	$ (394)
Automotive Service | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	16
Initial cost to company, land & improvements	$ 11,782
Initial cost to company, building & improvements	26,633
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	300
Gross amount, land & improvements	11,782
Gross amount, building & improvements	26,933
Gross amount, total	38,715
Accumulated depreciation	$ (2,872)
Automotive Service | Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 224
Initial cost to company, building & improvements	734
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	224
Gross amount, building & improvements	734
Gross amount, total	958
Accumulated depreciation	$ (71)
Automotive Service | West Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 1,985
Initial cost to company, building & improvements	4,519
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,985
Gross amount, building & improvements	4,519
Gross amount, total	6,504
Accumulated depreciation	$ (258)
Automotive Service | Wisconsin
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 3,175
Initial cost to company, building & improvements	7,554
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	74
Gross amount, land & improvements	3,175
Gross amount, building & improvements	7,628
Gross amount, total	10,803
Accumulated depreciation	$ (239)
Building Materials | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,060
Initial cost to company, building & improvements	3,640
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,060
Gross amount, building & improvements	3,640
Gross amount, total	5,700
Accumulated depreciation	$ (719)
Building Materials | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 760
Initial cost to company, building & improvements	403
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	760
Gross amount, building & improvements	403
Gross amount, total	1,163
Accumulated depreciation	$ (80)
Building Materials | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 934
Initial cost to company, building & improvements	638
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	934
Gross amount, building & improvements	638
Gross amount, total	1,572
Accumulated depreciation	$ (126)
Building Materials | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,338
Initial cost to company, building & improvements	4,165
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,338
Gross amount, building & improvements	4,165
Gross amount, total	6,503
Accumulated depreciation	$ (823)
Building Materials | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,072
Initial cost to company, building & improvements	1,619
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,072
Gross amount, building & improvements	1,619
Gross amount, total	2,691
Accumulated depreciation	$ (183)
Building Materials | Kentucky
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 414
Initial cost to company, building & improvements	200
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	414
Gross amount, building & improvements	200
Gross amount, total	614
Accumulated depreciation	$ (40)
Building Materials | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 4,438
Initial cost to company, building & improvements	8,425
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,438
Gross amount, building & improvements	8,425
Gross amount, total	12,863
Accumulated depreciation	$ (851)
Building Materials | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 3,011
Initial cost to company, building & improvements	4,573
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,011
Gross amount, building & improvements	4,573
Gross amount, total	7,584
Accumulated depreciation	$ (904)
Building Materials | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,097
Initial cost to company, building & improvements	172
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,097
Gross amount, building & improvements	172
Gross amount, total	1,269
Accumulated depreciation	$ (34)
Building Materials | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 5,228
Initial cost to company, building & improvements	3,746
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,228
Gross amount, building & improvements	3,746
Gross amount, total	8,974
Accumulated depreciation	$ (741)
Car Washes | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 4,357
Initial cost to company, building & improvements	2,722
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,357
Gross amount, building & improvements	2,722
Gross amount, total	7,079
Accumulated depreciation	$ (195)
Car Washes | Arizona
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 11,534
Initial cost to company, building & improvements	16,537
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	11,534
Gross amount, building & improvements	16,537
Gross amount, total	28,071
Accumulated depreciation	$ (1,699)
Car Washes | Arkansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 2,376
Initial cost to company, building & improvements	7,567
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,376
Gross amount, building & improvements	7,567
Gross amount, total	9,943
Accumulated depreciation	$ (791)
Car Washes | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	10
Initial cost to company, land & improvements	$ 8,671
Initial cost to company, building & improvements	19,739
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	595
Gross amount, land & improvements	8,671
Gross amount, building & improvements	20,334
Gross amount, total	29,005
Accumulated depreciation	$ (2,258)
Car Washes | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 7,602
Initial cost to company, building & improvements	18,693
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	7,602
Gross amount, building & improvements	18,693
Gross amount, total	26,295
Accumulated depreciation	$ (1,013)
Car Washes | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	18
Initial cost to company, land & improvements	$ 23,675
Initial cost to company, building & improvements	54,420
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	775
Gross amount, land & improvements	23,675
Gross amount, building & improvements	55,195
Gross amount, total	78,870
Accumulated depreciation	$ (6,675)
Car Washes | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,674
Initial cost to company, building & improvements	3,227
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,674
Gross amount, building & improvements	3,227
Gross amount, total	4,901
Accumulated depreciation	$ (254)
Car Washes | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,249
Initial cost to company, building & improvements	11,175
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,249
Gross amount, building & improvements	11,175
Gross amount, total	13,424
Accumulated depreciation	$ (50)
Car Washes | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 6,645
Initial cost to company, building & improvements	4,332
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	500
Gross amount, land & improvements	6,645
Gross amount, building & improvements	4,832
Gross amount, total	11,477
Accumulated depreciation	$ (438)
Car Washes | Louisiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,422
Initial cost to company, building & improvements	5,534
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,422
Gross amount, building & improvements	5,534
Gross amount, total	6,956
Accumulated depreciation	$ (642)
Car Washes | Maryland
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,306
Initial cost to company, building & improvements	4,977
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,306
Gross amount, building & improvements	4,977
Gross amount, total	6,283
Accumulated depreciation	$ (813)
Car Washes | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,268
Initial cost to company, building & improvements	0
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,268
Gross amount, building & improvements	0
Gross amount, total	1,268
Accumulated depreciation
Car Washes | Mississippi
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 666
Initial cost to company, building & improvements	973
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	666
Gross amount, building & improvements	973
Gross amount, total	1,639
Accumulated depreciation	$ (103)
Car Washes | Nebraska
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 597
Initial cost to company, building & improvements	2,569
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	597
Gross amount, building & improvements	2,569
Gross amount, total	3,166
Accumulated depreciation	$ (175)
Car Washes | New Mexico
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,461
Initial cost to company, building & improvements	12,216
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,461
Gross amount, building & improvements	12,216
Gross amount, total	14,677
Accumulated depreciation	$ (2,124)
Car Washes | New York
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 3,476
Initial cost to company, building & improvements	15,676
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,476
Gross amount, building & improvements	15,676
Gross amount, total	19,152
Accumulated depreciation	$ (307)
Car Washes | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 3,159
Initial cost to company, building & improvements	6,813
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,159
Gross amount, building & improvements	6,813
Gross amount, total	9,972
Accumulated depreciation	$ (438)
Car Washes | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 6,911
Initial cost to company, building & improvements	18,490
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	6,911
Gross amount, building & improvements	18,490
Gross amount, total	25,401
Accumulated depreciation	$ (795)
Car Washes | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,536
Initial cost to company, building & improvements	2,077
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,536
Gross amount, building & improvements	2,077
Gross amount, total	4,613
Accumulated depreciation	$ (150)
Car Washes | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 793
Initial cost to company, building & improvements	4,031
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	793
Gross amount, building & improvements	4,031
Gross amount, total	4,824
Accumulated depreciation	$ (622)
Car Washes | South Dakota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 5,890
Initial cost to company, building & improvements	14,859
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,225
Gross amount, land & improvements	5,890
Gross amount, building & improvements	16,084
Gross amount, total	21,974
Accumulated depreciation	$ (1,551)
Car Washes | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 832
Initial cost to company, building & improvements	0
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	832
Gross amount, building & improvements	0
Gross amount, total	832
Accumulated depreciation
Car Washes | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	11
Initial cost to company, land & improvements	$ 16,652
Initial cost to company, building & improvements	29,511
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	350
Gross amount, land & improvements	16,652
Gross amount, building & improvements	29,861
Gross amount, total	46,513
Accumulated depreciation	$ (2,264)
Car Washes | Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	13
Initial cost to company, land & improvements	$ 17,909
Initial cost to company, building & improvements	35,245
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	17,909
Gross amount, building & improvements	35,245
Gross amount, total	53,154
Accumulated depreciation	$ (98)
Convenience Stores | Arizona
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 977
Initial cost to company, building & improvements	827
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	977
Gross amount, building & improvements	827
Gross amount, total	1,804
Accumulated depreciation	$ (205)
Convenience Stores | Arkansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	10
Initial cost to company, land & improvements	$ 6,909
Initial cost to company, building & improvements	8,382
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	50
Gross amount, land & improvements	6,909
Gross amount, building & improvements	8,432
Gross amount, total	15,341
Accumulated depreciation	$ (1,772)
Convenience Stores | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 702
Initial cost to company, building & improvements	2,037
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	702
Gross amount, building & improvements	2,037
Gross amount, total	2,739
Accumulated depreciation	$ (314)
Convenience Stores | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 656
Initial cost to company, building & improvements	832
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	656
Gross amount, building & improvements	832
Gross amount, total	1,488
Accumulated depreciation	$ (148)
Convenience Stores | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 840
Initial cost to company, building & improvements	838
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	840
Gross amount, building & improvements	838
Gross amount, total	1,678
Accumulated depreciation	$ (207)
Convenience Stores | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 1,362
Initial cost to company, building & improvements	2,380
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,362
Gross amount, building & improvements	2,380
Gross amount, total	3,742
Accumulated depreciation	$ (48)
Convenience Stores | Kentucky
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	11
Initial cost to company, land & improvements	$ 9,442
Initial cost to company, building & improvements	5,630
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	9,442
Gross amount, building & improvements	5,630
Gross amount, total	15,072
Accumulated depreciation	$ (1,430)
Convenience Stores | Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 4,333
Initial cost to company, building & improvements	7,556
Cost capitalized subsequent to acquisition, land & improvements	14
Cost capitalized subsequent to acquisition, building & improvements	104
Gross amount, land & improvements	4,347
Gross amount, building & improvements	7,660
Gross amount, total	12,007
Accumulated depreciation	$ (1,718)
Convenience Stores | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 1,931
Initial cost to company, building & improvements	2,396
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,931
Gross amount, building & improvements	2,396
Gross amount, total	4,327
Accumulated depreciation	$ (533)
Convenience Stores | New Mexico
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	13
Initial cost to company, land & improvements	$ 4,988
Initial cost to company, building & improvements	9,360
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	15
Gross amount, land & improvements	4,988
Gross amount, building & improvements	9,375
Gross amount, total	14,363
Accumulated depreciation	$ (1,893)
Convenience Stores | New York
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	16
Initial cost to company, land & improvements	$ 5,881
Initial cost to company, building & improvements	20,342
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,881
Gross amount, building & improvements	20,342
Gross amount, total	26,223
Accumulated depreciation	$ (5,121)
Convenience Stores | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	21
Initial cost to company, land & improvements	$ 15,191
Initial cost to company, building & improvements	13,382
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	15,191
Gross amount, building & improvements	13,382
Gross amount, total	28,573
Accumulated depreciation	$ (3,223)
Convenience Stores | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 467
Initial cost to company, building & improvements	383
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	467
Gross amount, building & improvements	383
Gross amount, total	850
Accumulated depreciation	$ (110)
Convenience Stores | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 1,708
Initial cost to company, building & improvements	4,621
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	741
Gross amount, land & improvements	1,708
Gross amount, building & improvements	5,362
Gross amount, total	7,070
Accumulated depreciation	$ (896)
Convenience Stores | Washington
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 568
Initial cost to company, building & improvements	508
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	568
Gross amount, building & improvements	508
Gross amount, total	1,076
Accumulated depreciation	$ (119)
Convenience Stores | Wisconsin
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	25
Initial cost to company, land & improvements	$ 15,800
Initial cost to company, building & improvements	20,277
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	15,800
Gross amount, building & improvements	20,277
Gross amount, total	36,077
Accumulated depreciation	$ (5,679)
Early Childhood Education | Arizona
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	16
Initial cost to company, land & improvements	$ 10,474
Initial cost to company, building & improvements	14,986
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	21
Gross amount, land & improvements	10,474
Gross amount, building & improvements	15,007
Gross amount, total	25,481
Accumulated depreciation	$ (1,485)
Early Childhood Education | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 742
Initial cost to company, building & improvements	702
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	98
Gross amount, land & improvements	742
Gross amount, building & improvements	800
Gross amount, total	1,542
Accumulated depreciation	$ (67)
Early Childhood Education | Connecticut
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 3,423
Initial cost to company, building & improvements	7,360
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	2,404
Gross amount, land & improvements	3,423
Gross amount, building & improvements	9,764
Gross amount, total	13,187
Accumulated depreciation	$ (1,504)
Early Childhood Education | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 9,662
Initial cost to company, building & improvements	23,545
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	9,662
Gross amount, building & improvements	23,545
Gross amount, total	33,207
Accumulated depreciation	$ (3,000)
Early Childhood Education | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	8
Initial cost to company, land & improvements	$ 8,505
Initial cost to company, building & improvements	18,502
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	8,505
Gross amount, building & improvements	18,502
Gross amount, total	27,007
Accumulated depreciation	$ (2,680)
Early Childhood Education | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 6,502
Initial cost to company, building & improvements	21,687
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	6,502
Gross amount, building & improvements	21,687
Gross amount, total	28,189
Accumulated depreciation	$ (1,288)
Early Childhood Education | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 636
Initial cost to company, building & improvements	2,199
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	636
Gross amount, building & improvements	2,199
Gross amount, total	2,835
Accumulated depreciation	$ (109)
Early Childhood Education | Kansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,056
Initial cost to company, building & improvements	4,914
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,056
Gross amount, building & improvements	4,914
Gross amount, total	6,970
Accumulated depreciation	$ (768)
Early Childhood Education | Kentucky
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 716
Initial cost to company, building & improvements	2,500
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	716
Gross amount, building & improvements	2,500
Gross amount, total	3,216
Accumulated depreciation	$ (209)
Early Childhood Education | Massachusetts
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 3,200
Initial cost to company, building & improvements	2,423
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,200
Gross amount, building & improvements	2,423
Gross amount, total	5,623
Accumulated depreciation	$ (236)
Early Childhood Education | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 1,850
Initial cost to company, building & improvements	5,450
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,850
Gross amount, building & improvements	5,450
Gross amount, total	7,300
Accumulated depreciation	$ (477)
Early Childhood Education | Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 740
Initial cost to company, building & improvements	3,081
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	740
Gross amount, building & improvements	3,081
Gross amount, total	3,821
Accumulated depreciation	$ (130)
Early Childhood Education | Mississippi
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,085
Initial cost to company, building & improvements	2,547
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	124
Gross amount, land & improvements	2,085
Gross amount, building & improvements	2,671
Gross amount, total	4,756
Accumulated depreciation	$ (488)
Early Childhood Education | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	8
Initial cost to company, land & improvements	$ 4,239
Initial cost to company, building & improvements	14,583
Cost capitalized subsequent to acquisition, land & improvements	19
Cost capitalized subsequent to acquisition, building & improvements	81
Gross amount, land & improvements	4,258
Gross amount, building & improvements	14,664
Gross amount, total	18,922
Accumulated depreciation	$ (381)
Early Childhood Education | Nebraska
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 224
Initial cost to company, building & improvements	813
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	224
Gross amount, building & improvements	813
Gross amount, total	1,037
Accumulated depreciation	$ (9)
Early Childhood Education | Nevada
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,480
Initial cost to company, building & improvements	3,451
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,480
Gross amount, building & improvements	3,451
Gross amount, total	5,931
Accumulated depreciation	$ (219)
Early Childhood Education | New Jersey
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,249
Initial cost to company, building & improvements	3,439
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,249
Gross amount, building & improvements	3,439
Gross amount, total	4,688
Accumulated depreciation	$ (497)
Early Childhood Education | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	22
Initial cost to company, land & improvements	$ 20,683
Initial cost to company, building & improvements	36,235
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	200
Gross amount, land & improvements	20,683
Gross amount, building & improvements	36,435
Gross amount, total	57,118
Accumulated depreciation	$ (1,745)
Early Childhood Education | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	27
Initial cost to company, land & improvements	$ 20,879
Initial cost to company, building & improvements	55,399
Cost capitalized subsequent to acquisition, land & improvements	31
Cost capitalized subsequent to acquisition, building & improvements	8,821
Gross amount, land & improvements	20,910
Gross amount, building & improvements	64,220
Gross amount, total	85,130
Accumulated depreciation	$ (3,639)
Early Childhood Education | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 1,327
Initial cost to company, building & improvements	3,860
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,327
Gross amount, building & improvements	3,860
Gross amount, total	5,187
Accumulated depreciation	$ (48)
Early Childhood Education | Oregon
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 447
Initial cost to company, building & improvements	1,202
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	447
Gross amount, building & improvements	1,202
Gross amount, total	1,649
Accumulated depreciation	$ (138)
Early Childhood Education | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	11
Initial cost to company, land & improvements	$ 10,364
Initial cost to company, building & improvements	27,518
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	10,364
Gross amount, building & improvements	27,518
Gross amount, total	37,882
Accumulated depreciation	$ (4,106)
Early Childhood Education | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,943
Initial cost to company, building & improvements	2,970
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,943
Gross amount, building & improvements	2,970
Gross amount, total	4,913
Accumulated depreciation	$ (406)
Early Childhood Education | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 7,370
Initial cost to company, building & improvements	18,436
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	529
Gross amount, land & improvements	7,370
Gross amount, building & improvements	18,965
Gross amount, total	26,335
Accumulated depreciation	$ (1,886)
Early Childhood Education | Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 4,697
Initial cost to company, building & improvements	7,056
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,697
Gross amount, building & improvements	7,056
Gross amount, total	11,753
Accumulated depreciation	$ (709)
Early Childhood Education | Washington
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 2,711
Initial cost to company, building & improvements	5,720
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,711
Gross amount, building & improvements	5,720
Gross amount, total	8,431
Accumulated depreciation	$ (661)
Early Childhood Education | Wisconsin
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	8
Initial cost to company, land & improvements	$ 6,716
Initial cost to company, building & improvements	25,474
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	6,716
Gross amount, building & improvements	25,474
Gross amount, total	32,190
Accumulated depreciation	$ (1,757)
Entertainment | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 5,806
Initial cost to company, building & improvements	8,631
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,806
Gross amount, building & improvements	8,631
Gross amount, total	14,437
Accumulated depreciation	$ (1,180)
Entertainment | Arizona
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 3,447
Initial cost to company, building & improvements	6,350
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,447
Gross amount, building & improvements	6,350
Gross amount, total	9,797
Accumulated depreciation	$ (19)
Entertainment | California
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,320
Initial cost to company, building & improvements	2,320
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,320
Gross amount, building & improvements	2,320
Gross amount, total	3,640
Accumulated depreciation	$ (444)
Entertainment | Connecticut
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,516
Initial cost to company, building & improvements	13,938
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,516
Gross amount, building & improvements	13,938
Gross amount, total	16,454
Accumulated depreciation	$ (597)
Entertainment | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 6,456
Initial cost to company, building & improvements	6,815
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	4,500
Gross amount, land & improvements	6,456
Gross amount, building & improvements	11,315
Gross amount, total	17,771
Accumulated depreciation	$ (1,126)
Entertainment | Idaho
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 886
Initial cost to company, building & improvements	2,768
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	886
Gross amount, building & improvements	2,768
Gross amount, total	3,654
Accumulated depreciation	$ (320)
Entertainment | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,560
Initial cost to company, building & improvements	6,120
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,560
Gross amount, building & improvements	6,120
Gross amount, total	8,680
Accumulated depreciation	$ (252)
Entertainment | Kansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 5,886
Initial cost to company, building & improvements	21,128
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,886
Gross amount, building & improvements	21,128
Gross amount, total	27,014
Accumulated depreciation	$ (395)
Entertainment | Louisiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 3,403
Initial cost to company, building & improvements	3,115
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,403
Gross amount, building & improvements	3,115
Gross amount, total	6,518
Accumulated depreciation	$ (440)
Entertainment | Maine
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,052
Initial cost to company, building & improvements	4,924
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,052
Gross amount, building & improvements	4,924
Gross amount, total	6,976
Accumulated depreciation	$ (215)
Entertainment | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 693
Initial cost to company, building & improvements	4,593
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	2,362
Gross amount, land & improvements	693
Gross amount, building & improvements	6,955
Gross amount, total	7,648
Accumulated depreciation	$ (1,117)
Entertainment | Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 10,291
Initial cost to company, building & improvements	18,695
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	10,291
Gross amount, building & improvements	18,695
Gross amount, total	28,986
Accumulated depreciation	$ (2,676)
Entertainment | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 20,925
Initial cost to company, building & improvements	13,731
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	20,925
Gross amount, building & improvements	13,731
Gross amount, total	34,656
Accumulated depreciation	$ (895)
Entertainment | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 11,099
Initial cost to company, building & improvements	21,176
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	11,099
Gross amount, building & improvements	21,176
Gross amount, total	32,275
Accumulated depreciation	$ (2,307)
Entertainment | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 3,073
Initial cost to company, building & improvements	9,673
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,073
Gross amount, building & improvements	9,673
Gross amount, total	12,746
Accumulated depreciation	$ (195)
Entertainment | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 823
Initial cost to company, building & improvements	2,028
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	823
Gross amount, building & improvements	2,028
Gross amount, total	2,851
Accumulated depreciation	$ (298)
Entertainment | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 18,026
Initial cost to company, building & improvements	1,873
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	18,026
Gross amount, building & improvements	1,873
Gross amount, total	19,899
Accumulated depreciation	$ (231)
Entertainment | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 12,915
Initial cost to company, building & improvements	31,873
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	12,915
Gross amount, building & improvements	31,873
Gross amount, total	44,788
Accumulated depreciation	$ (356)
Equipment Rental and Sales | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,689
Initial cost to company, building & improvements	1,280
Cost capitalized subsequent to acquisition, land & improvements	12
Cost capitalized subsequent to acquisition, building & improvements	847
Gross amount, land & improvements	2,701
Gross amount, building & improvements	2,127
Gross amount, total	4,828
Accumulated depreciation	$ (208)
Equipment Rental and Sales | Arkansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,246
Initial cost to company, building & improvements	429
Cost capitalized subsequent to acquisition, land & improvements	246
Cost capitalized subsequent to acquisition, building & improvements	609
Gross amount, land & improvements	1,492
Gross amount, building & improvements	1,038
Gross amount, total	2,530
Accumulated depreciation	$ (110)
Equipment Rental and Sales | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 5,924
Initial cost to company, building & improvements	2,973
Cost capitalized subsequent to acquisition, land & improvements	5
Cost capitalized subsequent to acquisition, building & improvements	1,021
Gross amount, land & improvements	5,929
Gross amount, building & improvements	3,994
Gross amount, total	9,923
Accumulated depreciation	$ (523)
Equipment Rental and Sales | Connecticut
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 2,703
Initial cost to company, building & improvements	1,410
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,703
Gross amount, building & improvements	1,410
Gross amount, total	4,113
Accumulated depreciation	$ (103)
Equipment Rental and Sales | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 15,247
Initial cost to company, building & improvements	10,731
Cost capitalized subsequent to acquisition, land & improvements	(1,660)
Cost capitalized subsequent to acquisition, building & improvements	4,334
Gross amount, land & improvements	13,587
Gross amount, building & improvements	15,065
Gross amount, total	28,652
Accumulated depreciation	$ (701)
Equipment Rental and Sales | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 4,087
Initial cost to company, building & improvements	4,857
Cost capitalized subsequent to acquisition, land & improvements	236
Cost capitalized subsequent to acquisition, building & improvements	2,138
Gross amount, land & improvements	4,323
Gross amount, building & improvements	6,995
Gross amount, total	11,318
Accumulated depreciation	$ (676)
Equipment Rental and Sales | Louisiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,006
Initial cost to company, building & improvements	227
Cost capitalized subsequent to acquisition, land & improvements	16
Cost capitalized subsequent to acquisition, building & improvements	1,164
Gross amount, land & improvements	1,022
Gross amount, building & improvements	1,391
Gross amount, total	2,413
Accumulated depreciation	$ (152)
Equipment Rental and Sales | Maryland
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,647
Initial cost to company, building & improvements	973
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	975
Gross amount, land & improvements	2,647
Gross amount, building & improvements	1,948
Gross amount, total	4,595
Accumulated depreciation	$ (93)
Equipment Rental and Sales | Massachusetts
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,756
Initial cost to company, building & improvements	2,904
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,756
Gross amount, building & improvements	2,904
Gross amount, total	4,660
Accumulated depreciation	$ (223)
Equipment Rental and Sales | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,113
Initial cost to company, building & improvements	6,436
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	825
Gross amount, land & improvements	1,113
Gross amount, building & improvements	7,261
Gross amount, total	8,374
Accumulated depreciation	$ (1,061)
Equipment Rental and Sales | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 5,538
Initial cost to company, building & improvements	6,703
Cost capitalized subsequent to acquisition, land & improvements	21
Cost capitalized subsequent to acquisition, building & improvements	1,536
Gross amount, land & improvements	5,559
Gross amount, building & improvements	8,239
Gross amount, total	13,798
Accumulated depreciation	$ (520)
Equipment Rental and Sales | New Hampshire
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 4,859
Initial cost to company, building & improvements	1,193
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	982
Gross amount, land & improvements	4,859
Gross amount, building & improvements	2,175
Gross amount, total	7,034
Accumulated depreciation	$ (125)
Equipment Rental and Sales | New Mexico
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,686
Initial cost to company, building & improvements	286
Cost capitalized subsequent to acquisition, land & improvements	25
Cost capitalized subsequent to acquisition, building & improvements	1,862
Gross amount, land & improvements	1,711
Gross amount, building & improvements	2,148
Gross amount, total	3,859
Accumulated depreciation	$ (200)
Equipment Rental and Sales | New York
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 6,533
Initial cost to company, building & improvements	4,083
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	6,533
Gross amount, building & improvements	4,083
Gross amount, total	10,616
Accumulated depreciation	$ (393)
Equipment Rental and Sales | North Dakota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 851
Initial cost to company, building & improvements	1,567
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	330
Gross amount, land & improvements	851
Gross amount, building & improvements	1,897
Gross amount, total	2,748
Accumulated depreciation	$ (25)
Equipment Rental and Sales | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,303
Initial cost to company, building & improvements	2,194
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,303
Gross amount, building & improvements	2,194
Gross amount, total	3,497
Accumulated depreciation	$ (134)
Equipment Rental and Sales | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,177
Initial cost to company, building & improvements	2,257
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,177
Gross amount, building & improvements	2,257
Gross amount, total	4,434
Accumulated depreciation	$ (123)
Equipment Rental and Sales | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 751
Initial cost to company, building & improvements	1,678
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	751
Gross amount, building & improvements	1,678
Gross amount, total	2,429
Accumulated depreciation	$ (211)
Equipment Rental and Sales | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 3,519
Initial cost to company, building & improvements	3,713
Cost capitalized subsequent to acquisition, land & improvements	816
Cost capitalized subsequent to acquisition, building & improvements	1,734
Gross amount, land & improvements	4,335
Gross amount, building & improvements	5,447
Gross amount, total	9,782
Accumulated depreciation	$ (371)
Equipment Rental and Sales | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	10
Initial cost to company, land & improvements	$ 10,347
Initial cost to company, building & improvements	14,206
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,386
Gross amount, land & improvements	10,347
Gross amount, building & improvements	15,592
Gross amount, total	25,939
Accumulated depreciation	$ (473)
Equipment Rental and Sales | Utah
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,731
Initial cost to company, building & improvements	2,196
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,346
Gross amount, land & improvements	1,731
Gross amount, building & improvements	3,542
Gross amount, total	5,273
Accumulated depreciation	$ (339)
Equipment Rental and Sales | Vermont
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,809
Initial cost to company, building & improvements	0
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,809
Gross amount, building & improvements	0
Gross amount, total	1,809
Accumulated depreciation
Equipment Rental and Sales | Washington
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,412
Initial cost to company, building & improvements	1,724
Cost capitalized subsequent to acquisition, land & improvements	492
Cost capitalized subsequent to acquisition, building & improvements	1,563
Gross amount, land & improvements	2,904
Gross amount, building & improvements	3,287
Gross amount, total	6,191
Accumulated depreciation	$ (281)
Grocery | Arkansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 5,704
Initial cost to company, building & improvements	12,942
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,425
Gross amount, land & improvements	5,704
Gross amount, building & improvements	14,367
Gross amount, total	20,071
Accumulated depreciation	$ (1,007)
Grocery | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,224
Initial cost to company, building & improvements	6,189
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,224
Gross amount, building & improvements	6,189
Gross amount, total	7,413
Accumulated depreciation	$ (341)
Grocery | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	10
Initial cost to company, land & improvements	$ 5,661
Initial cost to company, building & improvements	16,938
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,661
Gross amount, building & improvements	16,938
Gross amount, total	22,599
Accumulated depreciation	$ (1,511)
Grocery | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 762
Initial cost to company, building & improvements	1,300
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	762
Gross amount, building & improvements	1,300
Gross amount, total	2,062
Accumulated depreciation	$ (219)
Grocery | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 1,628
Initial cost to company, building & improvements	8,726
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,628
Gross amount, building & improvements	8,726
Gross amount, total	10,354
Accumulated depreciation	$ (853)
Grocery | Wisconsin
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 17,626
Initial cost to company, building & improvements	67,253
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	17,626
Gross amount, building & improvements	67,253
Gross amount, total	84,879
Accumulated depreciation	$ (2,584)
Health and Fitness | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,102
Initial cost to company, building & improvements	2,412
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,102
Gross amount, building & improvements	2,412
Gross amount, total	3,514
Accumulated depreciation	$ (431)
Health and Fitness | Arizona
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 4,367
Initial cost to company, building & improvements	4,264
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,367
Gross amount, building & improvements	4,264
Gross amount, total	8,631
Accumulated depreciation	$ (355)
Health and Fitness | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,484
Initial cost to company, building & improvements	4,491
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,484
Gross amount, building & improvements	4,491
Gross amount, total	5,975
Accumulated depreciation	$ (695)
Health and Fitness | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 5,291
Initial cost to company, building & improvements	5,975
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	2,572
Gross amount, land & improvements	5,291
Gross amount, building & improvements	8,547
Gross amount, total	13,838
Accumulated depreciation	$ (463)
Health and Fitness | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,174
Initial cost to company, building & improvements	2,541
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,174
Gross amount, building & improvements	2,541
Gross amount, total	4,715
Accumulated depreciation	$ (497)
Health and Fitness | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,133
Initial cost to company, building & improvements	2,226
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	2,150
Gross amount, land & improvements	1,133
Gross amount, building & improvements	4,376
Gross amount, total	5,509
Accumulated depreciation	$ (419)
Health and Fitness | Kentucky
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 868
Initial cost to company, building & improvements	2,186
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	868
Gross amount, building & improvements	2,186
Gross amount, total	3,054
Accumulated depreciation	$ (367)
Health and Fitness | Massachusetts
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 10,541
Initial cost to company, building & improvements	29,129
Cost capitalized subsequent to acquisition, land & improvements	282
Cost capitalized subsequent to acquisition, building & improvements	1,380
Gross amount, land & improvements	10,823
Gross amount, building & improvements	30,509
Gross amount, total	41,332
Accumulated depreciation	$ (3,525)
Health and Fitness | Nevada
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 491
Initial cost to company, building & improvements	2,543
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	491
Gross amount, building & improvements	2,543
Gross amount, total	3,034
Accumulated depreciation	$ (281)
Health and Fitness | New Mexico
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 938
Initial cost to company, building & improvements	1,503
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	938
Gross amount, building & improvements	1,503
Gross amount, total	2,441
Accumulated depreciation	$ (290)
Health and Fitness | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 912
Initial cost to company, building & improvements	883
Cost capitalized subsequent to acquisition, land & improvements	761
Cost capitalized subsequent to acquisition, building & improvements	1,875
Gross amount, land & improvements	1,673
Gross amount, building & improvements	2,758
Gross amount, total	4,431
Accumulated depreciation	$ (151)
Health and Fitness | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 4,536
Initial cost to company, building & improvements	9,065
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	559
Gross amount, land & improvements	4,536
Gross amount, building & improvements	9,624
Gross amount, total	14,160
Accumulated depreciation	$ (938)
Health and Fitness | Oregon
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 3,070
Initial cost to company, building & improvements	5,104
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	350
Gross amount, land & improvements	3,070
Gross amount, building & improvements	5,454
Gross amount, total	8,524
Accumulated depreciation	$ (813)
Health and Fitness | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 4,516
Initial cost to company, building & improvements	9,463
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	330
Gross amount, land & improvements	4,516
Gross amount, building & improvements	9,793
Gross amount, total	14,309
Accumulated depreciation	$ (1,242)
Health and Fitness | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 8,467
Initial cost to company, building & improvements	7,707
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	144
Gross amount, land & improvements	8,467
Gross amount, building & improvements	7,851
Gross amount, total	16,318
Accumulated depreciation	$ (454)
Health and Fitness | Utah
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,937
Initial cost to company, building & improvements	4,209
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,937
Gross amount, building & improvements	4,209
Gross amount, total	6,146
Accumulated depreciation	$ (724)
Home Furnishings | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 3,369
Initial cost to company, building & improvements	24,523
Cost capitalized subsequent to acquisition, land & improvements	69
Cost capitalized subsequent to acquisition, building & improvements	2,969
Gross amount, land & improvements	3,438
Gross amount, building & improvements	27,492
Gross amount, total	30,930
Accumulated depreciation	$ (4,417)
Home Furnishings | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 273
Initial cost to company, building & improvements	4,683
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	273
Gross amount, building & improvements	4,683
Gross amount, total	4,956
Accumulated depreciation	$ (512)
Home Furnishings | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,224
Initial cost to company, building & improvements	4,779
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,224
Gross amount, building & improvements	4,779
Gross amount, total	7,003
Accumulated depreciation	$ (830)
Industrial | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,167
Initial cost to company, building & improvements	1,481
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,167
Gross amount, building & improvements	1,481
Gross amount, total	2,648
Accumulated depreciation	$ (5)
Industrial | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 3,958
Initial cost to company, building & improvements	1,744
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,958
Gross amount, building & improvements	1,744
Gross amount, total	5,702
Accumulated depreciation	$ (24)
Industrial | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 1,789
Initial cost to company, building & improvements	6,261
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,789
Gross amount, building & improvements	6,261
Gross amount, total	8,050
Accumulated depreciation	$ (19)
Industrial | Louisiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 490
Initial cost to company, building & improvements	761
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,783
Gross amount, land & improvements	490
Gross amount, building & improvements	2,544
Gross amount, total	3,034
Accumulated depreciation	$ (11)
Industrial | Mississippi
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,198
Initial cost to company, building & improvements	3,351
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,198
Gross amount, building & improvements	3,351
Gross amount, total	5,549
Accumulated depreciation	$ (96)
Industrial | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 909
Initial cost to company, building & improvements	746
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	909
Gross amount, building & improvements	746
Gross amount, total	1,655
Accumulated depreciation	$ (51)
Industrial | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 902
Initial cost to company, building & improvements	2,330
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	902
Gross amount, building & improvements	2,330
Gross amount, total	3,232
Accumulated depreciation	$ (8)
Industrial | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 678
Initial cost to company, building & improvements	2,922
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	678
Gross amount, building & improvements	2,922
Gross amount, total	3,600
Accumulated depreciation	$ (76)
Industrial | South Dakota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,250
Initial cost to company, building & improvements	2,950
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,250
Gross amount, building & improvements	2,950
Gross amount, total	4,200
Accumulated depreciation	$ (105)
Industrial | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 861
Initial cost to company, building & improvements	2,139
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	861
Gross amount, building & improvements	2,139
Gross amount, total	3,000
Accumulated depreciation	$ (5)
Industrial | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 5,350
Initial cost to company, building & improvements	6,679
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,350
Gross amount, building & improvements	6,679
Gross amount, total	12,029
Accumulated depreciation	$ (527)
Industrial | Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 679
Initial cost to company, building & improvements	3,839
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	679
Gross amount, building & improvements	3,839
Gross amount, total	4,518
Accumulated depreciation	$ (159)
Medical / Dental | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 1,623
Initial cost to company, building & improvements	7,508
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,623
Gross amount, building & improvements	7,508
Gross amount, total	9,131
Accumulated depreciation	$ (1,047)
Medical / Dental | Arizona
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,770
Initial cost to company, building & improvements	2,635
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,913
Gross amount, land & improvements	1,770
Gross amount, building & improvements	4,548
Gross amount, total	6,318
Accumulated depreciation	$ (292)
Medical / Dental | Arkansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	16
Initial cost to company, land & improvements	$ 4,013
Initial cost to company, building & improvements	12,692
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	497
Gross amount, land & improvements	4,013
Gross amount, building & improvements	13,189
Gross amount, total	17,202
Accumulated depreciation	$ (1,539)
Medical / Dental | California
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 4,449
Initial cost to company, building & improvements	7,699
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,449
Gross amount, building & improvements	7,699
Gross amount, total	12,148
Accumulated depreciation	$ (497)
Medical / Dental | Connecticut
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,889
Initial cost to company, building & improvements	1,675
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,889
Gross amount, building & improvements	1,675
Gross amount, total	3,564
Accumulated depreciation	$ (156)
Medical / Dental | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 6,872
Initial cost to company, building & improvements	24,624
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	6,872
Gross amount, building & improvements	24,624
Gross amount, total	31,496
Accumulated depreciation	$ (2,096)
Medical / Dental | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 2,218
Initial cost to company, building & improvements	8,357
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,218
Gross amount, building & improvements	8,357
Gross amount, total	10,575
Accumulated depreciation	$ (771)
Medical / Dental | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	10
Initial cost to company, land & improvements	$ 3,451
Initial cost to company, building & improvements	11,154
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,451
Gross amount, building & improvements	11,154
Gross amount, total	14,605
Accumulated depreciation	$ (949)
Medical / Dental | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 5,985
Initial cost to company, building & improvements	7,951
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,985
Gross amount, building & improvements	7,951
Gross amount, total	13,936
Accumulated depreciation	$ (946)
Medical / Dental | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 1,252
Initial cost to company, building & improvements	2,085
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,252
Gross amount, building & improvements	2,085
Gross amount, total	3,337
Accumulated depreciation	$ (16)
Medical / Dental | Kentucky
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 199
Initial cost to company, building & improvements	474
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	199
Gross amount, building & improvements	474
Gross amount, total	673
Accumulated depreciation	$ (95)
Medical / Dental | Massachusetts
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 853
Initial cost to company, building & improvements	2,784
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	853
Gross amount, building & improvements	2,784
Gross amount, total	3,637
Accumulated depreciation	$ (245)
Medical / Dental | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,401
Initial cost to company, building & improvements	9,443
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,401
Gross amount, building & improvements	9,443
Gross amount, total	11,844
Accumulated depreciation	$ (380)
Medical / Dental | Mississippi
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 1,302
Initial cost to company, building & improvements	13,437
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,302
Gross amount, building & improvements	13,437
Gross amount, total	14,739
Accumulated depreciation	$ (1,078)
Medical / Dental | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	11
Initial cost to company, land & improvements	$ 3,543
Initial cost to company, building & improvements	9,169
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	775
Gross amount, land & improvements	3,543
Gross amount, building & improvements	9,944
Gross amount, total	13,487
Accumulated depreciation	$ (652)
Medical / Dental | New Hampshire
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 4,729
Initial cost to company, building & improvements	17,340
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,729
Gross amount, building & improvements	17,340
Gross amount, total	22,069
Accumulated depreciation	$ (249)
Medical / Dental | New York
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 516
Initial cost to company, building & improvements	1,613
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	516
Gross amount, building & improvements	1,613
Gross amount, total	2,129
Accumulated depreciation	$ (276)
Medical / Dental | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 2,527
Initial cost to company, building & improvements	6,920
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,527
Gross amount, building & improvements	6,920
Gross amount, total	9,447
Accumulated depreciation	$ (369)
Medical / Dental | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	17
Initial cost to company, land & improvements	$ 6,874
Initial cost to company, building & improvements	21,981
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	6,874
Gross amount, building & improvements	21,981
Gross amount, total	28,855
Accumulated depreciation	$ (1,746)
Medical / Dental | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 1,472
Initial cost to company, building & improvements	6,767
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,472
Gross amount, building & improvements	6,767
Gross amount, total	8,239
Accumulated depreciation	$ (335)
Medical / Dental | Oregon
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,457
Initial cost to company, building & improvements	1,230
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,457
Gross amount, building & improvements	1,230
Gross amount, total	2,687
Accumulated depreciation	$ (132)
Medical / Dental | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 505
Initial cost to company, building & improvements	3,641
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	505
Gross amount, building & improvements	3,641
Gross amount, total	4,146
Accumulated depreciation	$ (106)
Medical / Dental | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 4,836
Initial cost to company, building & improvements	10,564
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,836
Gross amount, building & improvements	10,564
Gross amount, total	15,400
Accumulated depreciation	$ (839)
Medical / Dental | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	50
Initial cost to company, land & improvements	$ 32,046
Initial cost to company, building & improvements	112,053
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,577
Gross amount, land & improvements	32,046
Gross amount, building & improvements	113,630
Gross amount, total	145,676
Accumulated depreciation	$ (11,584)
Medical / Dental | Vermont
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 357
Initial cost to company, building & improvements	916
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	357
Gross amount, building & improvements	916
Gross amount, total	1,273
Accumulated depreciation	$ (38)
Medical / Dental | Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,493
Initial cost to company, building & improvements	2,800
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,493
Gross amount, building & improvements	2,800
Gross amount, total	4,293
Accumulated depreciation	$ (172)
Medical / Dental | Washington
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 627
Initial cost to company, building & improvements	868
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	627
Gross amount, building & improvements	868
Gross amount, total	1,495
Accumulated depreciation	$ (100)
Medical / Dental | Wyoming
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 620
Initial cost to company, building & improvements	2,550
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	620
Gross amount, building & improvements	2,550
Gross amount, total	3,170
Accumulated depreciation	$ (452)
Movie Theatres | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 3,011
Initial cost to company, building & improvements	10,643
Cost capitalized subsequent to acquisition, land & improvements	161
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,172
Gross amount, building & improvements	10,643
Gross amount, total	13,815
Accumulated depreciation	$ (1,970)
Movie Theatres | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,826
Initial cost to company, building & improvements	2,798
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,826
Gross amount, building & improvements	2,798
Gross amount, total	4,624
Accumulated depreciation	$ (473)
Movie Theatres | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,126
Initial cost to company, building & improvements	10,097
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,126
Gross amount, building & improvements	10,097
Gross amount, total	12,223
Accumulated depreciation	$ (1,454)
Movie Theatres | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,465
Initial cost to company, building & improvements	7,081
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,465
Gross amount, building & improvements	7,081
Gross amount, total	8,546
Accumulated depreciation	$ (1,108)
Movie Theatres | Wisconsin
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 3,159
Initial cost to company, building & improvements	3,755
Cost capitalized subsequent to acquisition, land & improvements	130
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,289
Gross amount, building & improvements	3,755
Gross amount, total	7,044
Accumulated depreciation	$ (791)
Other Services | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 312
Initial cost to company, building & improvements	176
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	312
Gross amount, building & improvements	176
Gross amount, total	488
Accumulated depreciation	$ (65)
Other Services | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 370
Initial cost to company, building & improvements	434
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	370
Gross amount, building & improvements	434
Gross amount, total	804
Accumulated depreciation	$ (104)
Other Services | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,187
Initial cost to company, building & improvements	3,344
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,187
Gross amount, building & improvements	3,344
Gross amount, total	4,531
Accumulated depreciation	$ (205)
Other Services | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,552
Initial cost to company, building & improvements	4,919
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,552
Gross amount, building & improvements	4,919
Gross amount, total	6,471
Accumulated depreciation	$ (746)
Other Services | Kentucky
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,503
Initial cost to company, building & improvements	4,613
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,503
Gross amount, building & improvements	4,613
Gross amount, total	6,116
Accumulated depreciation	$ (396)
Other Services | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 713
Initial cost to company, building & improvements	1,942
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	713
Gross amount, building & improvements	1,942
Gross amount, total	2,655
Accumulated depreciation	$ (321)
Other Services | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 2,257
Initial cost to company, building & improvements	2,073
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,257
Gross amount, building & improvements	2,073
Gross amount, total	4,330
Accumulated depreciation	$ (152)
Other Services | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,175
Initial cost to company, building & improvements	4,406
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,175
Gross amount, building & improvements	4,406
Gross amount, total	6,581
Accumulated depreciation	$ (48)
Other Services | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	14
Initial cost to company, land & improvements	$ 10,757
Initial cost to company, building & improvements	19,485
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	10,757
Gross amount, building & improvements	19,485
Gross amount, total	30,242
Accumulated depreciation	$ (1,629)
Other Services | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 15,090
Initial cost to company, building & improvements	17,940
Cost capitalized subsequent to acquisition, land & improvements	729
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	15,819
Gross amount, building & improvements	17,940
Gross amount, total	33,759
Accumulated depreciation	$ (1,009)
Other Services | Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,259
Initial cost to company, building & improvements	1,786
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,259
Gross amount, building & improvements	1,786
Gross amount, total	3,045
Accumulated depreciation	$ (321)
Pet Care Services | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,138
Initial cost to company, building & improvements
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,138
Gross amount, building & improvements	0
Gross amount, total	1,138
Accumulated depreciation
Pet Care Services | Arizona
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 6,862
Initial cost to company, building & improvements	10,616
Cost capitalized subsequent to acquisition, land & improvements	(1,845)
Cost capitalized subsequent to acquisition, building & improvements	(469)
Gross amount, land & improvements	5,017
Gross amount, building & improvements	10,147
Gross amount, total	15,164
Accumulated depreciation	$ (1,638)
Pet Care Services | Arkansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,422
Initial cost to company, building & improvements	2,110
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,422
Gross amount, building & improvements	2,110
Gross amount, total	3,532
Accumulated depreciation	$ (350)
Pet Care Services | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 5,578
Initial cost to company, building & improvements	7,102
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,578
Gross amount, building & improvements	7,102
Gross amount, total	12,680
Accumulated depreciation	$ (1,203)
Pet Care Services | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 3,335
Initial cost to company, building & improvements	3,367
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,335
Gross amount, building & improvements	3,367
Gross amount, total	6,702
Accumulated depreciation	$ (234)
Pet Care Services | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,352
Initial cost to company, building & improvements	2,928
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,352
Gross amount, building & improvements	2,928
Gross amount, total	5,280
Accumulated depreciation	$ (344)
Pet Care Services | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 1,676
Initial cost to company, building & improvements	5,148
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,676
Gross amount, building & improvements	5,148
Gross amount, total	6,824
Accumulated depreciation	$ (715)
Pet Care Services | Louisiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 485
Initial cost to company, building & improvements	701
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	485
Gross amount, building & improvements	701
Gross amount, total	1,186
Accumulated depreciation	$ (101)
Pet Care Services | Maryland
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 586
Initial cost to company, building & improvements	1,881
Cost capitalized subsequent to acquisition, land & improvements	16
Cost capitalized subsequent to acquisition, building & improvements	34
Gross amount, land & improvements	602
Gross amount, building & improvements	1,915
Gross amount, total	2,517
Accumulated depreciation	$ (143)
Pet Care Services | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 537
Initial cost to company, building & improvements	752
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	537
Gross amount, building & improvements	752
Gross amount, total	1,289
Accumulated depreciation	$ (100)
Pet Care Services | Nebraska
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 381
Initial cost to company, building & improvements	332
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	381
Gross amount, building & improvements	332
Gross amount, total	713
Accumulated depreciation	$ (80)
Pet Care Services | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 2,347
Initial cost to company, building & improvements	8,786
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,347
Gross amount, building & improvements	8,786
Gross amount, total	11,133
Accumulated depreciation	$ (399)
Pet Care Services | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 225
Initial cost to company, building & improvements	283
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	225
Gross amount, building & improvements	283
Gross amount, total	508
Accumulated depreciation	$ (68)
Pet Care Services | Oregon
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 192
Initial cost to company, building & improvements	324
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	192
Gross amount, building & improvements	324
Gross amount, total	516
Accumulated depreciation	$ (35)
Pet Care Services | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 885
Initial cost to company, building & improvements	1,660
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	885
Gross amount, building & improvements	1,660
Gross amount, total	2,545
Accumulated depreciation	$ (163)
Pet Care Services | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 2,204
Initial cost to company, building & improvements	3,702
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,204
Gross amount, building & improvements	3,702
Gross amount, total	5,906
Accumulated depreciation	$ (138)
Pet Care Services | Wisconsin
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 403
Initial cost to company, building & improvements	598
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	403
Gross amount, building & improvements	598
Gross amount, total	1,001
Accumulated depreciation	$ (75)
Restaurants - Casual Dining | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 2,954
Initial cost to company, building & improvements	7,305
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,954
Gross amount, building & improvements	7,305
Gross amount, total	10,259
Accumulated depreciation	$ (1,414)
Restaurants - Casual Dining | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,593
Initial cost to company, building & improvements	3,400
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,593
Gross amount, building & improvements	3,400
Gross amount, total	4,993
Accumulated depreciation	$ (618)
Restaurants - Casual Dining | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 6,317
Initial cost to company, building & improvements	12,222
Cost capitalized subsequent to acquisition, land & improvements	55
Cost capitalized subsequent to acquisition, building & improvements	59
Gross amount, land & improvements	6,372
Gross amount, building & improvements	12,281
Gross amount, total	18,653
Accumulated depreciation	$ (2,687)
Restaurants - Casual Dining | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 4,785
Initial cost to company, building & improvements	6,048
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	600
Gross amount, land & improvements	4,785
Gross amount, building & improvements	6,648
Gross amount, total	11,433
Accumulated depreciation	$ (1,388)
Restaurants - Casual Dining | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 668
Initial cost to company, building & improvements	2,051
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	668
Gross amount, building & improvements	2,051
Gross amount, total	2,719
Accumulated depreciation	$ (267)
Restaurants - Casual Dining | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,542
Initial cost to company, building & improvements	0
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,542
Gross amount, building & improvements	0
Gross amount, total	1,542
Accumulated depreciation
Restaurants - Casual Dining | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 2,812
Initial cost to company, building & improvements	9,572
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,812
Gross amount, building & improvements	9,572
Gross amount, total	12,384
Accumulated depreciation	$ (606)
Restaurants - Casual Dining | Kansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 3,045
Initial cost to company, building & improvements	1,382
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,045
Gross amount, building & improvements	1,382
Gross amount, total	4,427
Accumulated depreciation	$ (82)
Restaurants - Casual Dining | Kentucky
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 1,798
Initial cost to company, building & improvements	3,643
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,798
Gross amount, building & improvements	3,643
Gross amount, total	5,441
Accumulated depreciation	$ (210)
Restaurants - Casual Dining | Louisiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 2,156
Initial cost to company, building & improvements	3,330
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,156
Gross amount, building & improvements	3,330
Gross amount, total	5,486
Accumulated depreciation	$ (705)
Restaurants - Casual Dining | Maryland
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 2,344
Initial cost to company, building & improvements	1,975
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,344
Gross amount, building & improvements	1,975
Gross amount, total	4,319
Accumulated depreciation	$ (449)
Restaurants - Casual Dining | Massachusetts
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	10
Initial cost to company, land & improvements	$ 12,982
Initial cost to company, building & improvements	14,943
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	12,982
Gross amount, building & improvements	14,943
Gross amount, total	27,925
Accumulated depreciation	$ (901)
Restaurants - Casual Dining | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	12
Initial cost to company, land & improvements	$ 7,181
Initial cost to company, building & improvements	16,134
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	7,181
Gross amount, building & improvements	16,134
Gross amount, total	23,315
Accumulated depreciation	$ (1,728)
Restaurants - Casual Dining | Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 7,921
Initial cost to company, building & improvements	14,090
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	7,921
Gross amount, building & improvements	14,090
Gross amount, total	22,011
Accumulated depreciation	$ (176)
Restaurants - Casual Dining | Mississippi
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 926
Initial cost to company, building & improvements	624
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	926
Gross amount, building & improvements	624
Gross amount, total	1,550
Accumulated depreciation	$ (132)
Restaurants - Casual Dining | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 7,857
Initial cost to company, building & improvements	11,419
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	7,857
Gross amount, building & improvements	11,419
Gross amount, total	19,276
Accumulated depreciation	$ (284)
Restaurants - Casual Dining | Nebraska
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 261
Initial cost to company, building & improvements	687
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	261
Gross amount, building & improvements	687
Gross amount, total	948
Accumulated depreciation	$ (185)
Restaurants - Casual Dining | New Hampshire
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,978
Initial cost to company, building & improvements	2,127
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,978
Gross amount, building & improvements	2,127
Gross amount, total	4,105
Accumulated depreciation	$ (90)
Restaurants - Casual Dining | New Jersey
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	8
Initial cost to company, land & improvements	$ 9,625
Initial cost to company, building & improvements	28,327
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	9,625
Gross amount, building & improvements	28,327
Gross amount, total	37,952
Accumulated depreciation	$ (224)
Restaurants - Casual Dining | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 4,653
Initial cost to company, building & improvements	7,984
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	4,653
Gross amount, building & improvements	7,984
Gross amount, total	12,637
Accumulated depreciation	$ (491)
Restaurants - Casual Dining | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 3,375
Initial cost to company, building & improvements	6,706
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,375
Gross amount, building & improvements	6,706
Gross amount, total	10,081
Accumulated depreciation	$ (73)
Restaurants - Casual Dining | Rhode Island
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 830
Initial cost to company, building & improvements	1,171
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	830
Gross amount, building & improvements	1,171
Gross amount, total	2,001
Accumulated depreciation	$ (71)
Restaurants - Casual Dining | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 447
Initial cost to company, building & improvements	292
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	29
Gross amount, land & improvements	447
Gross amount, building & improvements	321
Gross amount, total	768
Accumulated depreciation	$ (94)
Restaurants - Casual Dining | South Dakota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,922
Initial cost to company, building & improvements	2,475
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,922
Gross amount, building & improvements	2,475
Gross amount, total	4,397
Accumulated depreciation	$ (107)
Restaurants - Casual Dining | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 683
Initial cost to company, building & improvements	737
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	683
Gross amount, building & improvements	737
Gross amount, total	1,420
Accumulated depreciation	$ (135)
Restaurants - Casual Dining | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 6,663
Initial cost to company, building & improvements	4,639
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	6,663
Gross amount, building & improvements	4,639
Gross amount, total	11,302
Accumulated depreciation	$ (408)
Restaurants - Casual Dining | Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 1,136
Initial cost to company, building & improvements	1,991
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,136
Gross amount, building & improvements	1,991
Gross amount, total	3,127
Accumulated depreciation	$ (226)
Restaurants - Casual Dining | West Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 953
Initial cost to company, building & improvements	3,180
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	953
Gross amount, building & improvements	3,180
Gross amount, total	4,133
Accumulated depreciation	$ (91)
Restaurants - Family Dining | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 467
Initial cost to company, building & improvements	421
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	150
Gross amount, land & improvements	467
Gross amount, building & improvements	571
Gross amount, total	1,038
Accumulated depreciation	$ (307)
Restaurants - Family Dining | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	7
Initial cost to company, land & improvements	$ 3,229
Initial cost to company, building & improvements	4,132
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	330
Gross amount, land & improvements	3,229
Gross amount, building & improvements	4,462
Gross amount, total	7,691
Accumulated depreciation	$ (774)
Restaurants - Family Dining | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,372
Initial cost to company, building & improvements	1,206
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	750
Gross amount, land & improvements	1,372
Gross amount, building & improvements	1,956
Gross amount, total	3,328
Accumulated depreciation	$ (330)
Restaurants - Family Dining | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 804
Initial cost to company, building & improvements	563
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	804
Gross amount, building & improvements	563
Gross amount, total	1,367
Accumulated depreciation	$ (148)
Restaurants - Family Dining | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 2,148
Initial cost to company, building & improvements	2,847
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,148
Gross amount, building & improvements	2,847
Gross amount, total	4,995
Accumulated depreciation	$ (322)
Restaurants - Family Dining | Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,433
Initial cost to company, building & improvements	2,451
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,433
Gross amount, building & improvements	2,451
Gross amount, total	4,884
Accumulated depreciation	$ (674)
Restaurants - Family Dining | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,038
Initial cost to company, building & improvements	1,153
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,038
Gross amount, building & improvements	1,153
Gross amount, total	2,191
Accumulated depreciation	$ (300)
Restaurants - Family Dining | New Hampshire
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 131
Initial cost to company, building & improvements	232
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	131
Gross amount, building & improvements	232
Gross amount, total	363
Accumulated depreciation	$ (364)
Restaurants - Family Dining | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 784
Initial cost to company, building & improvements	756
Cost capitalized subsequent to acquisition, land & improvements	6
Cost capitalized subsequent to acquisition, building & improvements	61
Gross amount, land & improvements	790
Gross amount, building & improvements	817
Gross amount, total	1,607
Accumulated depreciation	$ (192)
Restaurants - Family Dining | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,930
Initial cost to company, building & improvements	2,111
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,930
Gross amount, building & improvements	2,111
Gross amount, total	4,041
Accumulated depreciation	$ (226)
Restaurants - Family Dining | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 207
Initial cost to company, building & improvements	424
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	207
Gross amount, building & improvements	424
Gross amount, total	631
Accumulated depreciation	$ (613)
Restaurants - Family Dining | Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 90
Initial cost to company, building & improvements	192
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	90
Gross amount, building & improvements	192
Gross amount, total	282
Accumulated depreciation	$ (282)
Restaurants - Family Dining | Washington
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,787
Initial cost to company, building & improvements	3,861
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,787
Gross amount, building & improvements	3,861
Gross amount, total	5,648
Accumulated depreciation	$ (489)
Restaurants - Family Dining | Wisconsin
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,967
Initial cost to company, building & improvements	2,955
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,967
Gross amount, building & improvements	2,955
Gross amount, total	4,922
Accumulated depreciation	$ (482)
Restaurants - Family Dining | Wyoming
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 739
Initial cost to company, building & improvements	1,569
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	739
Gross amount, building & improvements	1,569
Gross amount, total	2,308
Accumulated depreciation	$ (169)
Restaurants - Quick Service | Alabama
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	26
Initial cost to company, land & improvements	$ 6,787
Initial cost to company, building & improvements	14,555
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	83
Gross amount, land & improvements	6,787
Gross amount, building & improvements	14,638
Gross amount, total	21,425
Accumulated depreciation	$ (2,577)
Restaurants - Quick Service | Alaska
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,115
Initial cost to company, building & improvements	3,157
Cost capitalized subsequent to acquisition, land & improvements	5
Cost capitalized subsequent to acquisition, building & improvements	527
Gross amount, land & improvements	1,120
Gross amount, building & improvements	3,684
Gross amount, total	4,804
Accumulated depreciation	$ (502)
Restaurants - Quick Service | Arkansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	13
Initial cost to company, land & improvements	$ 7,361
Initial cost to company, building & improvements	12,008
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	15
Gross amount, land & improvements	7,361
Gross amount, building & improvements	12,023
Gross amount, total	19,384
Accumulated depreciation	$ (1,618)
Restaurants - Quick Service | California
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 467
Initial cost to company, building & improvements	533
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	467
Gross amount, building & improvements	533
Gross amount, total	1,000
Accumulated depreciation	$ (129)
Restaurants - Quick Service | Colorado
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 698
Initial cost to company, building & improvements	1,036
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	698
Gross amount, building & improvements	1,036
Gross amount, total	1,734
Accumulated depreciation	$ (167)
Restaurants - Quick Service | Connecticut
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 155
Initial cost to company, building & improvements	208
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	155
Gross amount, building & improvements	208
Gross amount, total	363
Accumulated depreciation	$ (101)
Restaurants - Quick Service | Florida
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	17
Initial cost to company, land & improvements	$ 10,895
Initial cost to company, building & improvements	20,435
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	10,895
Gross amount, building & improvements	20,435
Gross amount, total	31,330
Accumulated depreciation	$ (1,466)
Restaurants - Quick Service | Georgia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	40
Initial cost to company, land & improvements	$ 16,191
Initial cost to company, building & improvements	26,477
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	414
Gross amount, land & improvements	16,191
Gross amount, building & improvements	26,891
Gross amount, total	43,082
Accumulated depreciation	$ (4,684)
Restaurants - Quick Service | Illinois
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,062
Initial cost to company, building & improvements	2,892
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,100
Gross amount, land & improvements	2,062
Gross amount, building & improvements	3,992
Gross amount, total	6,054
Accumulated depreciation	$ (410)
Restaurants - Quick Service | Indiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	5
Initial cost to company, land & improvements	$ 1,873
Initial cost to company, building & improvements	3,673
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	924
Gross amount, land & improvements	1,873
Gross amount, building & improvements	4,597
Gross amount, total	6,470
Accumulated depreciation	$ (506)
Restaurants - Quick Service | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	8
Initial cost to company, land & improvements	$ 2,715
Initial cost to company, building & improvements	7,326
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,715
Gross amount, building & improvements	7,326
Gross amount, total	10,041
Accumulated depreciation	$ (1,439)
Restaurants - Quick Service | Kansas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 194
Initial cost to company, building & improvements	777
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	194
Gross amount, building & improvements	777
Gross amount, total	971
Accumulated depreciation	$ (134)
Restaurants - Quick Service | Kentucky
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	13
Initial cost to company, land & improvements	$ 5,705
Initial cost to company, building & improvements	9,351
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	402
Gross amount, land & improvements	5,705
Gross amount, building & improvements	9,753
Gross amount, total	15,458
Accumulated depreciation	$ (1,060)
Restaurants - Quick Service | Louisiana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 955
Initial cost to company, building & improvements	3,164
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	955
Gross amount, building & improvements	3,164
Gross amount, total	4,119
Accumulated depreciation	$ (423)
Restaurants - Quick Service | Maryland
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 338
Initial cost to company, building & improvements	624
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	338
Gross amount, building & improvements	624
Gross amount, total	962
Accumulated depreciation	$ (77)
Restaurants - Quick Service | Massachusetts
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 5,251
Initial cost to company, building & improvements	5,131
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,251
Gross amount, building & improvements	5,131
Gross amount, total	10,382
Accumulated depreciation	$ (606)
Restaurants - Quick Service | Michigan
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	12
Initial cost to company, land & improvements	$ 3,797
Initial cost to company, building & improvements	8,116
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,797
Gross amount, building & improvements	8,116
Gross amount, total	11,913
Accumulated depreciation	$ (1,661)
Restaurants - Quick Service | Minnesota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 2,605
Initial cost to company, building & improvements	4,416
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,605
Gross amount, building & improvements	4,416
Gross amount, total	7,021
Accumulated depreciation	$ (1,014)
Restaurants - Quick Service | Mississippi
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	27
Initial cost to company, land & improvements	$ 11,212
Initial cost to company, building & improvements	15,911
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	390
Gross amount, land & improvements	11,212
Gross amount, building & improvements	16,301
Gross amount, total	27,513
Accumulated depreciation	$ (2,134)
Restaurants - Quick Service | Missouri
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 195
Initial cost to company, building & improvements	802
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	195
Gross amount, building & improvements	802
Gross amount, total	997
Accumulated depreciation	$ (164)
Restaurants - Quick Service | Montana
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 782
Initial cost to company, building & improvements	0
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	782
Gross amount, building & improvements	0
Gross amount, total	782
Accumulated depreciation
Restaurants - Quick Service | Nebraska
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 667
Initial cost to company, building & improvements	2,048
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	667
Gross amount, building & improvements	2,048
Gross amount, total	2,715
Accumulated depreciation	$ (454)
Restaurants - Quick Service | New Hampshire
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 409
Initial cost to company, building & improvements	355
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	409
Gross amount, building & improvements	355
Gross amount, total	764
Accumulated depreciation	$ (99)
Restaurants - Quick Service | New York
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	3
Initial cost to company, land & improvements	$ 3,765
Initial cost to company, building & improvements	3,405
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	400
Gross amount, land & improvements	3,765
Gross amount, building & improvements	3,805
Gross amount, total	7,570
Accumulated depreciation	$ (895)
Restaurants - Quick Service | North Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,269
Initial cost to company, building & improvements	1,431
Cost capitalized subsequent to acquisition, land & improvements	(171)
Cost capitalized subsequent to acquisition, building & improvements	268
Gross amount, land & improvements	1,098
Gross amount, building & improvements	1,699
Gross amount, total	2,797
Accumulated depreciation	$ (85)
Restaurants - Quick Service | Ohio
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	9
Initial cost to company, land & improvements	$ 3,661
Initial cost to company, building & improvements	10,582
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	3,661
Gross amount, building & improvements	10,582
Gross amount, total	14,243
Accumulated depreciation	$ (785)
Restaurants - Quick Service | Oklahoma
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	8
Initial cost to company, land & improvements	$ 5,266
Initial cost to company, building & improvements	7,550
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	5,266
Gross amount, building & improvements	7,550
Gross amount, total	12,816
Accumulated depreciation	$ (559)
Restaurants - Quick Service | Oregon
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 252
Initial cost to company, building & improvements	131
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	252
Gross amount, building & improvements	131
Gross amount, total	383
Accumulated depreciation	$ (42)
Restaurants - Quick Service | Pennsylvania
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 2,247
Initial cost to company, building & improvements	2,790
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	2,247
Gross amount, building & improvements	2,790
Gross amount, total	5,037
Accumulated depreciation	$ (536)
Restaurants - Quick Service | South Carolina
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	4
Initial cost to company, land & improvements	$ 850
Initial cost to company, building & improvements	2,291
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	30
Gross amount, land & improvements	850
Gross amount, building & improvements	2,321
Gross amount, total	3,171
Accumulated depreciation	$ (422)
Restaurants - Quick Service | South Dakota
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 70
Initial cost to company, building & improvements	259
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	70
Gross amount, building & improvements	259
Gross amount, total	329
Accumulated depreciation	$ (34)
Restaurants - Quick Service | Tennessee
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	19
Initial cost to company, land & improvements	$ 11,681
Initial cost to company, building & improvements	15,414
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	354
Gross amount, land & improvements	11,681
Gross amount, building & improvements	15,768
Gross amount, total	27,449
Accumulated depreciation	$ (2,324)
Restaurants - Quick Service | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	35
Initial cost to company, land & improvements	$ 27,554
Initial cost to company, building & improvements	25,565
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	1,501
Gross amount, land & improvements	27,554
Gross amount, building & improvements	27,066
Gross amount, total	54,620
Accumulated depreciation	$ (2,814)
Restaurants - Quick Service | West Virginia
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	6
Initial cost to company, land & improvements	$ 1,293
Initial cost to company, building & improvements	3,137
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	1,293
Gross amount, building & improvements	3,137
Gross amount, total	4,430
Accumulated depreciation	$ (682)
Restaurants - Quick Service | Wisconsin
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	2
Initial cost to company, land & improvements	$ 1,197
Initial cost to company, building & improvements	2,462
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	35
Gross amount, land & improvements	1,197
Gross amount, building & improvements	2,497
Gross amount, total	3,694
Accumulated depreciation	$ (568)
Vacant Properties | Iowa
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 57
Initial cost to company, building & improvements	479
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	0
Gross amount, land & improvements	57
Gross amount, building & improvements	479
Gross amount, total	536
Accumulated depreciation	$ (65)
Vacant Properties | Texas
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
# of Properties | property	1
Initial cost to company, land & improvements	$ 119
Initial cost to company, building & improvements	540
Cost capitalized subsequent to acquisition, land & improvements	0
Cost capitalized subsequent to acquisition, building & improvements	34
Gross amount, land & improvements	119
Gross amount, building & improvements	574
Gross amount, total	693
Accumulated depreciation	$ (115)

XML

Schedule III - Real Estate and Accumulated Depreciation - Footnotes (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) property lease	Dec. 31, 2021 property	Dec. 31, 2020 property
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Number of property locations of investments	1,653	1,451
Owned properties	1,489	1,315
Number of ground lease interests	11
Properties securing investments in mortgage loans	153	126
Number of real estate subject to ground lease	5
Number of leases accounted for as loans receivable | lease	3
Number of real estate properties held for sale	4	9	8
Intangible lease assets | $	$ 77.1
Aggregate cost for federal income tax | $	$ 3,500.0
Buildings and improvements | Maximum
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Estimated useful life	40 years
Site improvements
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Estimated useful life	15 years

XML

Schedule III - Real Estate and Accumulated Depreciation - Schedule of Reconciliation of Carrying Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Balance, beginning of period	$ 3,040,073	$ 2,260,919	$ 1,812,961
Acquisitions	751,610	831,795	527,482
Improvements	27,609	9,459	28,889
Provisions for impairment of real estate	(20,164)	(6,120)	(8,399)
Real estate investments held for sale	(4,780)	(15,434)	(17,058)
Cost of real estate sold	(123,081)	(40,546)	(82,956)
Other	(1,949)	0	0
Balance, end of period	$ 3,669,317	$ 3,040,073	$ 2,260,919

XML

Schedule III - Real Estate and Accumulated Depreciation - Accumulated Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Balance, beginning of period	$ 169,126	$ 112,144	$ 71,445
Depreciation expense	80,647	61,172	51,736
Accumulated depreciation associated with real estate sold	(11,751)	(4,190)	(11,037)
Balance, end of period	$ 238,022	$ 169,126	$ 112,144

XML

Schedule IV - Summary of Mortgage Loans on Real Estate (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) carWash earlyChildhoodEducationCenter state convenienceStore casualDiningRestaurant familyDiningRestaurant entertainmentCenter quickServiceRestaurant industrialFacility	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Face Amount of Mortgages	$ 234,713
Carrying Amount of Mortgages	$ 233,978	$ 181,419	$ 144,048	$ 87,029
First Mortgage Loans | Two Early Childhood Education Centers located in Florida
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of early childhood education centers | earlyChildhoodEducationCenter	2
Interest Rate	8.80%
Final Payment Terms	$ 12,000
Face Amount of Mortgages	12,000
Carrying Amount of Mortgages	$ 11,884
First Mortgage Loans | Two Early Childhood Education Centers located in Florida
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of early childhood education centers | earlyChildhoodEducationCenter	2
Interest Rate	8.53%
Final Payment Terms	$ 7,300
Face Amount of Mortgages	7,300
Carrying Amount of Mortgages	$ 7,226
First Mortgage Loans | Sixty-nine Quick Service Restaurants located in fifteen states
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of quick service restaurants | quickServiceRestaurant	69
Number of states | state	15
Interest Rate	7.79%
Final Payment Terms	$ 51,000
Face Amount of Mortgages	51,000
Carrying Amount of Mortgages	$ 50,995
First Mortgage Loans | One Early Childhood Education Center located in Florida
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of early childhood education centers | earlyChildhoodEducationCenter	1
Interest Rate	8.42%
Final Payment Terms	$ 5,300
Face Amount of Mortgages	5,300
Carrying Amount of Mortgages	$ 5,251
First Mortgage Loans | Three Convenience Stores located in Minnesota
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of convenience stores | convenienceStore	3
Interest Rate	8.54%
Final Payment Terms	$ 2,324
Face Amount of Mortgages	2,324
Carrying Amount of Mortgages	$ 2,317
First Mortgage Loans | One Family Dining Restaurant located in Georgia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of family dining restaurant | familyDiningRestaurant	1
Interest Rate	7.00%
Final Payment Terms	$ 600
Face Amount of Mortgages	600
Carrying Amount of Mortgages	$ 596
First Mortgage Loans | Three Convenience Stores located in three states
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of convenience stores | convenienceStore	3
Interest Rate	8.30%
Final Payment Terms	$ 3,146
Face Amount of Mortgages	3,146
Carrying Amount of Mortgages	$ 3,063
First Mortgage Loans | Two Casual Dining Restaurants located in Kentucky and Ohio
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of casual dining restaurants | casualDiningRestaurant	2
Interest Rate	6.87%
Final Payment Terms	$ 2,520
Face Amount of Mortgages	2,520
Carrying Amount of Mortgages	$ 2,520
First Mortgage Loans | Three Casual Dining Restaurants located in three states
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of states | state	3
Number of casual dining restaurants | casualDiningRestaurant	3
Interest Rate	7.51%
Final Payment Terms	$ 2,673
Face Amount of Mortgages	2,673
Carrying Amount of Mortgages	$ 2,657
First Mortgage Loans | Two Convenience Stores located in Iowa
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of convenience stores | convenienceStore	2
Interest Rate	8.29%
Final Payment Terms	$ 2,389
Face Amount of Mortgages	2,389
Carrying Amount of Mortgages	$ 2,323
First Mortgage Loans | One Entertainment Center located in New Jersey
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of entertainment center | entertainmentCenter	1
Interest Rate	8.96%
Face Amount of Mortgages	$ 24,100
Carrying Amount of Mortgages	$ 24,090
First Mortgage Loans | Two Industrial facilities located in California
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of industrial facilities | industrialFacility	2
Interest Rate	7.44%
Final Payment Terms	$ 9,808
Face Amount of Mortgages	9,808
Carrying Amount of Mortgages	$ 9,785
First Mortgage Loans | Five Car Washes located in Nevada
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of car washes | carWash	5
Interest Rate	7.30%
Final Payment Terms	$ 25,714
Face Amount of Mortgages	25,714
Carrying Amount of Mortgages	$ 25,711
First Mortgage Loans | One Car Wash located in Florida
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of car washes | carWash	1
Interest Rate	7.73%
Final Payment Terms	$ 2,470
Face Amount of Mortgages	2,470
Carrying Amount of Mortgages	$ 2,464
First Mortgage Loans | One Casual Dining Restaurant located in Michigan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of casual dining restaurants | casualDiningRestaurant	1
Interest Rate	8.00%
Final Payment Terms	$ 1,754
Face Amount of Mortgages	1,754
Carrying Amount of Mortgages	$ 1,710
First Mortgage Loans | Thirty-seven Quick Service Restaurants located in three states
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of quick service restaurants | quickServiceRestaurant	37
Number of states | state	3
Interest Rate	7.00%
Final Payment Terms	$ 26,307
Face Amount of Mortgages	26,307
Carrying Amount of Mortgages	$ 26,185
First Mortgage Loans | One Car Wash located in New Jersey
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of car washes | carWash	1
Interest Rate	7.73%
Final Payment Terms	$ 3,600
Face Amount of Mortgages	3,600
Carrying Amount of Mortgages	$ 3,592
First Mortgage Loans | One Convenience Store located in Minnesota
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of convenience stores | carWash	1
Interest Rate	8.30%
Final Payment Terms	$ 760
Face Amount of Mortgages	760
Carrying Amount of Mortgages	$ 740
First Mortgage Loans | One Car Wash located in Nevada
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of car washes | carWash	1
Interest Rate	7.33%
Final Payment Terms	$ 4,960
Face Amount of Mortgages	4,960
Carrying Amount of Mortgages	$ 4,948
First Mortgage Loans | One Car Wash located in Nevada
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of car washes | carWash	1
Interest Rate	7.43%
Final Payment Terms	$ 4,800
Face Amount of Mortgages	4,800
Carrying Amount of Mortgages	$ 4,789
First Mortgage Loans | Four Car Washes located in three states
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of states | state	3
Number of car washes | carWash	4
Interest Rate	8.64%
Final Payment Terms	$ 12,250
Face Amount of Mortgages	12,250
Carrying Amount of Mortgages	$ 12,246
First Mortgage Loans | Ten Car Washes located in five states
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Description Information [Abstract]
Number of states | state	5
Number of car washes | carWash	10
Interest Rate	8.93%
Final Payment Terms	$ 28,938
Face Amount of Mortgages	28,938
Carrying Amount of Mortgages	$ 28,886

XML

Schedule IV - Summary of Changes in Carrying Amounts of Mortgage Loans Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance, beginning of period	$ 181,419	$ 144,048	$ 87,029
Additions:
New mortgage loans	126,784	137,356	54,484
Subsequent funding on existing mortgage loans	17,236	0	3,500
Deductions:
Collections of principal	(91,488)	(100,179)	(11)
Provision for credit losses	27	194	(954)
Balance, end of period	$ 233,978	$ 181,419	$ 144,048