Thank you for sharing your take on EPRT. Sorry, English is not my native language, I did not quite get what you meant to say in the first option: "They can go rapidly out further with their debt ladder, pushing it out two years per year". Can you please clarify?
Sure. Starting roughly next year, they will need to roll $400M per year of old debt and add $400M per year of new debt. One was to do that would be to place two new tranches of debt at $400M, in say 2032 and 2033. And then the next year in 2034 and 2035. This assumes they pay off none of it.
Thank you for sharing your take on EPRT. Sorry, English is not my native language, I did not quite get what you meant to say in the first option: "They can go rapidly out further with their debt ladder, pushing it out two years per year". Can you please clarify?
Sure. Starting roughly next year, they will need to roll $400M per year of old debt and add $400M per year of new debt. One was to do that would be to place two new tranches of debt at $400M, in say 2032 and 2033. And then the next year in 2034 and 2035. This assumes they pay off none of it.
Thanks for this write up. You have peaked my interest as a potential "growth" REIT. I am going to put it on my radar for any significant weakness.