EPR Properties (EPR) Presents at Citi's 2024 Global Property CEO Conference (Transcript)

Summary of EPR Properties Conference Call Company Overview - Company: EPR Properties (NYSE:EPR) - Industry: Real Estate Investment Trust (REIT) focused on experiential properties - Key Participants: - Greg Silvers - CEO - Mark Peterson - CFO - Greg Zimmerman - CIO - Brian Moriarty - SVP of Corporate Communications Core Points and Arguments - Unique Positioning: EPR is described as the only truly diversified experiential REIT, focusing on properties that provide experiences rather than products, such as theaters, ski resorts, and museums [3][4] - Valuation: The company is trading at a highly discounted multiple compared to historical levels, with rent coverage above pre-COVID levels [3][4] - Growth Guidance: EPR expects growth of 3% to 4% for the year, alongside an 8% dividend yield, indicating a strong total shareholder return (TSR) potential [4] - Deferred Rent Collections: EPR successfully collected $150 million in deferred rents post-COVID, which contributed to a cleaner financial story moving into 2024 [7][9] - **Theater Portfolio**: The theater coverage ratio is back to 1.7 times, aligning with pre-COVID levels, despite lower box office revenues [14][24] - **Strategic Reduction in Theater Exposure**: EPR aims to reduce theater exposure to below 15$250 million in 2024, with a significant portion coming from existing relationships and ongoing projects [43][46] - Cap Rate Insights: Recent sales of experiential properties, such as Titanic exhibits, were completed at a 6% cap rate, indicating strong market demand for experiential assets [60][61] Important but Overlooked Content - AMC Lease Restructuring: EPR has restructured its lease with AMC, which is viewed as stronger than Regal's lease, providing confidence in future performance [18][20] - Education Assets: EPR plans to exit its education platform, which currently consists of 70 properties, as it does not align with its experiential focus [50][51] - Market Dynamics: The company does not see significant competition from larger players in the net lease space, focusing instead on smaller, less marketed deals [41][42] - Future Opportunities: EPR is exploring opportunities in the gaming industry as part of its diversification strategy, although current market conditions limit its involvement [68][69] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting EPR Properties' unique market position and future growth plans.