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EPR Properties (EPR)
NYSE:EPR
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EPR Properties
(NYSE:EPR)78Outperform
Positive Factors
Dividend Growth
The 3.5% dividend bump represents a validation of the durability of cash flows and offers a 6.5% yield, which screens favorably to net-lease REIT peers.
Earnings Growth
EPR Properties ended the year with healthy earnings growth, a strong balance sheet, and improving sentiment within the movie industry, which positions the company favorably.
Negative Factors
Rent Coverage Decline
For the second consecutive quarter, the company’s rent coverage metrics declined, from 2.2x in mid-2024 to 2.0x at year-end.
EPR Properties (EPR) vs. S&P 500 (SPY)
Market Cap
$4.02B
Dividend Yield6.44%
Average Volume (3M)714.60K
Price to Earnings (P/E)32.9
Beta (1Y)0.82
Revenue Growth-1.01%
EPS Growth-18.46%
CountryUS
Employees55
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)1.60
Shares Outstanding76,064,545
10 Day Avg. Volume931,417
30 Day Avg. Volume714,597
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)N/A
Price to Sales (P/S)5.75
Price to Cash Flow (P/CF)10.80
P/FCF Ratio6.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$52.00Price Target Upside-2.26% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPR Properties Business Overview & Revenue Model
Company DescriptionEPR Properties (EPR) is a real estate investment trust (REIT) that specializes in owning, leasing, and financing properties in key sectors of the entertainment, recreation, and education industries. The company's portfolio includes multiplex theaters, entertainment retail centers, ski areas, public charter schools, and experiential lodging properties. EPR Properties focuses on properties that offer unique experiences and cater to consumer preferences for leisure and entertainment activities.
How the Company Makes MoneyEPR Properties generates revenue primarily through leasing its properties to tenants under long-term, triple-net lease agreements. This revenue model ensures a stable and predictable income stream, as tenants are responsible for paying property taxes, insurance, and maintenance costs in addition to rent. The company's key revenue streams include lease payments from its diversified portfolio of entertainment, recreation, and education properties. Additionally, EPR Properties may engage in financing and development activities to expand its portfolio and enhance its earnings potential. Strategic partnerships with major operators in its target sectors and a focus on high-demand experiential properties further contribute to its financial success.
EPR Properties Financial Statement Overview
Summary
EPR Properties demonstrates strong financial performance with a consistent revenue growth trend and efficient cost management. The company shows significant improvements in its capital structure, particularly with the reduction of debt, and maintains effective cash flow management. However, profitability pressures are evident in reduced net margins and ROE, and declining free cash flow growth warrants attention.Income Statement
EPR Properties shows a stable revenue growth trajectory with a 5.82% increase in revenue from 2023 to TTM 2024. The gross profit margin remains strong at approximately 81.92% in TTM. However, net profit margin declined to 20.92% compared to 26.23% in 2023, indicating some profitability pressure. The EBIT and EBITDA margins also show solid performance, reflecting efficient operational management.78
Positive
Balance Sheet
The balance sheet of EPR Properties exhibits strong financial health with total debt reduced to zero in TTM, improving the debt-to-equity ratio significantly. The equity ratio of 41.36% indicates a solid capital structure, enhancing financial stability. The return on equity is healthy at 6.29% in TTM, though slightly lower than 7.05% in 2023, reflecting some pressure on returns.82
Very Positive
Cash Flow
EPR's cash flow position is robust with a substantial operating cash flow of $300.2 million in TTM, though it has decreased from $447.1 million in 2023. The free cash flow remained positive but showed a decline compared to the previous year. The company's ability to maintain positive free cash flow is commendable, though the free cash flow growth rate is negative, indicating room for improvement.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 641.00M | 659.72M | 658.03M | 531.68M | 414.66M | Gross Profit |
| 581.85M | 602.24M | 602.05M | 474.94M | 356.07M | EBIT |
| 315.67M | 306.40M | 310.96M | 236.53M | 89.79M | EBITDA |
| 444.04M | 467.66M | 504.17M | 404.56M | 260.13M | Net Income Common Stockholders |
| 146.07M | 173.05M | 176.23M | 98.61M | -131.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.06M | 78.08M | 107.93M | 288.82M | 1.03B | Total Assets |
| 5.62B | 5.70B | 5.76B | 5.80B | 6.70B | Total Debt |
| 3.07B | 3.04B | 3.05B | 3.02B | 3.90B | Net Debt |
| 3.05B | 2.96B | 2.94B | 2.73B | 2.87B | Total Liabilities |
| 3.29B | 3.25B | 3.22B | 3.18B | 4.07B | Stockholders Equity |
| 2.32B | 2.45B | 2.54B | 2.62B | 2.63B |
| Cash Flow | Free Cash Flow | |||
| 393.14M | 447.09M | 428.30M | 193.73M | -67.90M | Operating Cash Flow |
| 393.14M | 447.09M | 441.72M | 306.93M | 65.27M | Investing Cash Flow |
| -176.35M | -201.05M | -351.58M | 1.86M | 133.99M | Financing Cash Flow |
| -261.62M | -275.69M | -269.39M | -1.05B | 297.17M |
EPR Properties Technical Analysis
Positive
53.20
Price Trends
47.21
Positive
45.92
Positive
44.23
Positive
Market Momentum
1.82
Negative
72.89
Negative
76.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPR, the sentiment is Positive. The current price of 53.2 is above the 20-day moving average (MA) of 50.22, above the 50-day MA of 47.21, and above the 200-day MA of 44.23, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 72.89 is Negative, neither overbought nor oversold. The STOCH value of 76.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EPR.
EPR Properties Risk Analysis
EPR Properties disclosed 59 risk factors in its most recent earnings report. EPR Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EPR Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $33.77B | 12.50 | 10.34% | 5.30% | 6.57% | 3.45% | |
80 Outperform | $51.11B | 58.40 | 2.40% | 5.46% | 29.49% | -22.38% | |
79 Outperform | $8.02B | 19.87 | 9.32% | 5.39% | 4.97% | -0.26% | |
78 Outperform | $4.02B | 32.91 | 6.11% | 6.44% | -1.01% | -18.46% | |
77 Outperform | $2.88B | 26.96 | 7.43% | 4.83% | 6.96% | -0.41% | |
72 Outperform | $14.00B | 30.61 | 5.38% | 5.46% | -9.09% | -36.58% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% |
* Real Estate Sector Average
Performance Comparison
EPR
EPR Properties
53.20
13.81
35.06%
NNN
National Retail Properties
42.85
2.34
5.78%
O
Realty Income
58.48
8.28
16.49%
WPC
W. P. Carey Inc.
64.77
10.11
18.50%
FCPT
Four Corners Property
29.31
6.20
26.83%
VICI
VICI Properties
32.65
4.62
16.48%
EPR Properties Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 4.25% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook for EPR Properties with notable earnings growth, a dividend increase, and strong performance in the experiential portfolio. However, challenges remain with certain operating properties and underperforming investments, particularly in the theater segment.Highlights
Earnings Growth and Dividend Increase
EPR Properties reported a 3.4% earnings growth for the full year 2024 and announced a 3.5% increase in their monthly cash dividend to common shareholders.
Strong Performance in Experiential Portfolio
The company expanded its experiential portfolio, achieving a 99% lease rate across 278 properties and solid performance in sectors like eat & play and ski properties.
Box Office Recovery
North American box office revenue for Q4 2024 was $2.3 billion, up 26% from Q4 2023. Full year 2024 box office revenue was $8.6 billion, down only 4% from 2023 despite earlier strikes.
Successful Divestment of Theater Assets
EPR Properties sold several vacant theater assets, generating $74.4 million in disposition proceeds for 2024.
Lowlights
Performance Challenges in Operating Properties
The Kartrite Hotel and Indoor Waterpark, along with other managed properties, faced performance issues due to high operating expenses and insurance costs.
Exit from Underperforming RV Investment
EPR Properties exited its investment in the Camp Margaritaville RV Resort due to underperformance, resulting in a $16.1 million impairment charge.
Theater Portfolio Coverage Decline
Portfolio coverage for theaters remained at 1.5 times, indicating stabilization but still low compared to other segments of the portfolio.
Company Guidance
During the EPR Properties Q4 2024 earnings call, the company provided guidance for 2025, projecting approximately 3.5% earnings growth at the midpoint of its forecast. EPR Properties anticipates investment spending in the range of $200 million to $300 million and expects disposition proceeds between $25 million to $75 million. Additionally, the company projects percentage rents and participating interest to reach $18 million to $22 million, with a notable increase from the previous year's performance, primarily driven by the Regal Master Lease. EPR Properties also announced a 3.5% increase in its monthly cash dividend to common shareholders. Key performance metrics include a strong balance sheet, with a net debt to adjusted EBITDAre ratio of 5.3 times, and an AFFO payout ratio of 70% for both the fourth quarter and the full year. The company remains committed to maintaining a conservative financial approach while exploring high-quality acquisition and development opportunities in its experiential portfolio.EPR Properties Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
EPR Properties Reports 2024 Financial Results and Dividend Increase
Neutral
Feb 26, 2025
EPR Properties reported its fourth quarter and full-year 2024 financial results, highlighting a total revenue of $698.1 million for the year, despite a net loss of $14.4 million in the fourth quarter. The company announced a 3.5% increase in its monthly dividend and introduced 2025 earnings and investment spending guidance, projecting FFOAA per diluted share to rise by 3.5% at the midpoint. The company executed $49.3 million in investment spending in Q4 2024, with a focus on experiential development, and committed $150 million for future projects. EPR Properties also continued its strategy of reducing theatre and education investments, reallocating proceeds into experiential assets, and finalized its exit from an underperforming RV property investment.
Executive/Board Changes
EPR Properties Elects JP Suarez as Trustee
Positive
Jan 27, 2025
On January 27, 2025, EPR Properties announced the election of John Peter (JP) Suarez as an independent trustee to its Board of Trustees, effective January 24, 2025. Suarez, who brings extensive experience from his executive roles at Walmart, is expected to provide strategic guidance to EPR Properties, potentially strengthening its position in the real estate industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.