Company Overview - EPR Properties is a net lease REIT focused on experiential properties, which include ski resorts, Topgolf, movies, and amusement parks, emphasizing consumer experiences rather than traditional retail [3]. Investment Thesis - The company presents three key reasons for investors to consider buying its stock: 1. Valuation: EPR Properties is currently trading about three turns behind the average valuation in the market, indicating potential for growth [4].

EPR Properties (EPR 1.39%) is a real estate investment trust, or REIT, that specializes in experiential properties. It owns movie theater properties, waterparks, ski resorts, eat-and-play properties, and more.Thanks to solid results in its business, as well as the somewhat lower interest rate environment, EPR recently reached a new 52-week high. However, the fact remains that conditions are not yet favorable for growth -- the keyword being "yet." This company has a massive, long-tailed opportunity for patie ...

Core Viewpoint - EPR Properties has resumed and increased its dividend after suspending it during the pandemic, but concerns remain about its stock price and reliance on movie theaters [1][3][4]. Company Overview - EPR Properties specializes in experiential real estate, owning properties such as amusement parks, ski resorts, and movie theaters, which are designed for group gatherings [2]. - The pandemic significantly impacted these properties, leading to a temporary suspension of dividends due to uncertainty [2]. Financial Recovery and Dividend Strategy - After a year without dividends, EPR Properties restored and has since increased its dividend multiple times, although it remains below pre-suspension levels [3]. - The company’s adjusted funds from operations (FFO) payout ratio was a reasonable 70% in Q4, indicating financial stability and the ability to manage its portfolio without immediate dividend cuts [6]. Long-term Strategy and Concerns - EPR Properties aims to diversify its portfolio, addressing concerns about its heavy reliance on movie theaters, which constitute about 37% of its assets [4][5]. - The financial health of the movie theater segment is weaker than pre-pandemic levels, with lower rental coverage, prompting management to plan for a gradual reduction of this exposure [5][6]. Market Position and Investment Considerations - The stock price has struggled to maintain levels around $55, reflecting ongoing market concerns despite the high dividend yield of 6.7%, which is significantly higher than the S&P 500's yield of 1.2% [4][6]. - EPR Properties may appeal to investors willing to accept higher risk for greater yield, as management is cautiously optimistic about future growth while working to improve the portfolio [7].

Group 1 - The core viewpoint is that EPR Properties is currently experiencing slow growth, but there is potential for change in the future [1] - The company has significant exposure to movie theater real estate, which presents certain risks [1] - Management has effectively navigated uncertainty, demonstrating resilience in the business [1] Group 2 - Recent results indicate a strong performance, highlighted by a dividend increase [1] - Stock prices referenced were from the morning of February 27, 2025, with the video published on March 1, 2025 [1]

Core Viewpoint - EPR Properties is a specialty REIT focused on experiential real estate, offering a monthly dividend yield of 6.5% and a growing passive income stream through strategic investments and portfolio expansion [1][2][3]. Investment and Financial Performance - EPR Properties generated $4.87 per share of funds from operations (FFO) last year, with a dividend payout of $3.40 per share, resulting in a payout ratio of approximately 70% [4]. - The REIT plans to invest between $200 million and $300 million into new experiential real estate this year, with $150 million already lined up for development and redevelopment projects over the next two years [8][9]. Growth Strategy - The company is focusing on reducing its exposure to theater and educational properties while increasing rental income from other experiential property types [6]. - EPR Properties expects FFO to rise to between $4.94 and $5.14 per share this year, reflecting a 3.5% increase driven by rising rents and new investments [7]. Future Outlook - The REIT is capping its investment volume to levels it can internally fund until its cost of capital improves, but with falling interest rates and a rising stock price, it may increase investment volume in the future [10]. - EPR Properties has sufficient internal funding to support portfolio growth, cash flow, and dividend increases, making it an attractive investment for income and potential upside [11][12].

Turnaround stocks can be risky, but they can also be rewarding, particularly if you can find companies that have solid and lofty dividends. Not all high-yield turnaround stocks are worth the risk, but EPR Properties (EPR 1.58%), W.P. Carey (WPC -0.17%), and Toronto-Dominion Bank (TD 0.10%) all appear to offer attractive risk/reward opportunities. With yields up to 6.9%, you'll want to get to know this trio of high-yield turnaround stocks right now.1. Toronto-Dominion Bank tarnished its imageToronto-Dominion ...

The stock market has pulled back a bit, but the reality is that the major market indices are still within a few percentage points of their all-time highs. However, there are some excellent bargains to be found in the world of dividend stocks, some of which are doing quite well and recently announced dividend increases.With that in mind, here are two dividend stocks I believe are massively undervalued that could be worth a closer look for long-term investors right now.A massive buyback and lots of potentialG ...

EPR Properties (NYSE:EPR) Q4 2024 Earnings Conference Call February 27, 2025 8:30 AM ET Company Participants Brian Moriarty - SVP of Corporate Communications Greg Silvers - Chairman and CEO Greg Zimmerman - EVP and CIO Mark Peterson - EVP and CFO Conference Call Participants Rob Stevenson - Janney Montgomery Scott Anthony Paolone - JPMorgan Bennett Rose - Citi Michael Goldsmith - UBS Michael Carroll - RBC Capital Markets Upal Rana - KeyBanc Capital Markets Operator Hello, and welcome to the EPR Properties Q ...

Investment Strategy - Total investments as of December 31, 2024, were approximately $6.9 billion, with Experiential investments comprising $6.4 billion (93%) and Education investments comprising $0.5 billion (7%) of total investments[28]. - The company intends to significantly reduce investments in theatres and diversify into other experiential property types[38]. - The company plans to continue pursuing opportunities in experiential lodging, fitness & wellness, and cultural investments to enhance shareholder value[60][61]. - The growth strategy focuses on acquiring or developing a diversified portfolio of experiential real estate venues that facilitate out-of-home leisure and recreation experiences[62]. - The company plans to be more selective in investments and acquisitions due to elevated interest rates and inflation impacting the cost of capital[65]. - The company aims to diversify its asset base by property type, geographic location, and customer, targeting experiential business operators[74]. - The company will explore joint venture opportunities with institutional investors or developers that align with its investment principles[80]. Real Estate Portfolio - The wholly-owned Experiential real estate portfolio consisted of approximately 18.8 million square feet, with 99% leased or operated, excluding 0.3 million square feet of vacant properties intended for sale[31]. - The wholly-owned Education real estate portfolio consisted of approximately 1.2 million square feet, with 100% leased, excluding 13 thousand square feet of a vacant property intended for sale[57]. - The company intends to continue developing and redeveloping properties consistent with growth strategies, requiring signed leases or significant pre-leasing before construction[70]. - The company typically acquires or develops single-tenant properties under long-term leases to minimize lease-up risks and ensure predictable income streams[66]. - The company structures leases on a triple-net basis, allowing tenants to bear financial and operational responsibilities, with periodic rent increases based on gross sales[67]. Financial Performance - Total North American box office revenues for 2024 were down approximately 4% compared to 2023, but theatre rent coverage levels were near pre-COVID levels despite the decrease in box office revenue[32]. - Approximately $94.4 million (13.5%) of total revenue for the year ended December 31, 2024, was from AMC, and $76.4 million (10.9%) was from Regal tenants[39]. - The investment in golf entertainment complexes, specifically Topgolf, contributed approximately $100.8 million (14.4%) to total revenue for the year ended December 31, 2024[41]. Capital Structure and Debt Management - As of December 31, 2024, the company had a $1.0 billion unsecured revolving credit facility with $175.0 million outstanding, and a $25.0 million bond fixed through an interest rate swap[304]. - The company is focused on maintaining a conservative capital structure, seeking to keep a low net debt to adjusted EBITDA ratio[76]. - As of December 31, 2024, the total fixed rate debt amounts to $2,704.6 million with an average interest rate of 4.32%[308]. - The fair value of fixed rate debt decreased from $2,606.8 million in 2023 to $2,590.3 million in 2024[310]. - The estimated fair value of total debt as of December 31, 2024, is $2,590.3 million, reflecting the company's ongoing management of interest rate and foreign currency risks[310]. Risk Management - The company is exposed to market risks related to interest rates and foreign currency exchange rates, actively seeking to mitigate these risks[304]. - The company has entered into an interest rate swap agreement with a notional amount of $25.0 million, capping the variable interest rate at 2.5325% until September 30, 2026[311]. - The company has six USD-CAD cross-currency swaps effective October 1, 2024, with a total notional value of $170.0 million CAD and $125.0 million USD, locking in an exchange rate of $1.35 CAD per USD[313]. - Two additional USD-CAD cross-currency swaps effective December 1, 2024, have a total notional value of $90.0 million CAD and $66.2 million USD, also locking in an exchange rate of $1.35 CAD per USD[314]. - The company entered into two forward contracts with a fixed notional value of $200.0 million CAD and $142.8 million USD, with an exchange rate of approximately $1.40 CAD per USD, effective December 19, 2024[315]. - A forward contract with a notional value of $90.0 million CAD and $64.3 million USD was also established, effective December 19, 2024, at an exchange rate of approximately $1.40 CAD per USD[316]. - The company terminated previous CAD to USD forward contracts on December 19, 2024, receiving $10.4 million from the settlement[317]. - Changes in the fair value of foreign currency derivatives designated as net investment hedges are reported in AOCI, impacting earnings when the hedged net investment is sold or liquidated[318]. Dividend Policy - The company expects to continue paying monthly dividends to common shareholders and quarterly dividends to preferred shareholders, with specific rates for different series of preferred shares[81][82].

Core Insights - EPR Properties reported revenue of $149.12 million for Q4 2024, a year-over-year increase of 0.3% and a surprise of +0.70% over the Zacks Consensus Estimate of $148.08 million [1] - The company achieved an EPS of $1.22, compared to $0.52 a year ago, with an EPS surprise of +0.83% against the consensus estimate of $1.21 [1] Revenue Breakdown - Rental revenue was $149.12 million, exceeding the three-analyst average estimate of $148.08 million, reflecting a year-over-year change of +0.3% [4] - Mortgage and other financing income reached $14.92 million, slightly above the estimated $14.86 million, marking a significant year-over-year increase of +33.5% [4] - Other income amounted to $13.20 million, surpassing the estimated $13.12 million, with a year-over-year change of +9.4% [4] Stock Performance - EPR Properties' shares returned +8% over the past month, contrasting with the Zacks S&P 500 composite's decline of -2.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]