EPR

Image source: The Motley Fool. Thursday, July 30, 2026 at 8:30 a.m. ET Senior Vice President of Corporate Communications - Brian Moriarty Chairman and Chief Executive Officer - Gregory Silvers Executive Vice President and Chief Investment Officer - Benjamin Fox Executive Vice President and Chief Financial Officer - Mark Peterson Operator: Hello, and welcome to the EPR Properties Q2 2026 Earnings Call. [Operator Instructions] Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. I will now hand the call over to Brian Moriarty, Senior Vice President of Corporate Communications. Brian Moriarty: Thank you. Thanks for joining us today for our second quarter 2026 earnings call and webcast. Participants on today's call are Greg Silvers, Chairman and CEO; Ben Fox, Executive Vice President and CIO; and Mark Peterson, Executive Vice President and CFO. I'll start the call by informing you that this call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, identified by such words as will be, intend, continue, believe, may, expect, hope, anticipate or other comparable terms. The company's actual financial condition and the results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of these factors that could cause results to differ materially from these forward-looking statements are contained in the company's SEC filings, including the company's reports on Form 10-K and 10-Q. Additionally, this call will contain references to certain non-GAAP measures, which we believe are useful in evaluating the company's performance. A reconciliation of these measures to the most directly comparable GAAP measures are included in today's earnings release and supplemental information furnished to the SEC under Form 8-K. If you wish to follow along, today's earnings release, supplemental and earnings call presentation are all available on the Investor Center page of the company's website, www.eprkc.com. Now I'll turn the call over to Greg Silvers. Gregory Silvers: Thank you, Brian. Good morning, everyone, and welcome to our second quarter 2026 earnings call and webcast. Over the last several quarters, we've highlighted our focus on accelerating growth, and the second quarter marked a significant step forward in executing that strategy. For the quarter, revenue increased 10.1% and FFO as adjusted per share increased 12.7% compared with the same period in 2025. These results demonstrate the strength of our platform and the continued momentum we are building across the business. On the investments front, we set a new post-COVID high for investment activity in a single quarter, totaling more than $440 million. In addition to our previously announced acquisition of the Six Flags 7 property portfolio, we further diversified our experiential portfolio with additional investments in attractions and fitness and wellness. As part of these investments, we are pleased to welcome Netflix as a new partner through our acquisition of Netflix House in King of Prussia, Pennsylvania. These properties allow Netflix to deepen customer connections by transforming popular digital intellectual property into physical immersive experiences. This level of investment spending reflects both the depth of our opportunity set and our disciplined approach to deploying capital into durable experiential assets. It also reinforces our confidence in the portfolio's long-term growth trajectory as we move through the balance of the year. Turning to our portfolio. Tenant performance remains solid as we maintain coverage of 2x across the portfolio. The box office is up approximately 10% year-to-date, driven by a compelling mix of major studio tentpole releases and lower budget breakout films that have broadened attendance and reinforce the enduring appeal of the shared theatrical experience. Notably, titles such as Backrooms and Obsessions, both from filmmakers who built early audiences on YouTube, demonstrate how new creator-driven voices are expanding the theatrical audience and generating outsized box office results. Outside of theaters, fitness and wellness continues to be resilient as consumers increasingly treat it as a protected nondiscretionary category. Our Eat & Play tenants are also reporting steady healthy trends. We also continued to strengthen our financial position, establishing a new $1.6 billion credit agreement that addresses our maturities later this year and ensures our balance sheet remains a source of strength in support of the pace of our investment growth. With that, I'm also pleased to report that we're increasing both our 2026 investment spending and earnings guidance. At the midpoint, our updated earnings guidance represents a 7.2% increase over 2025. We believe this underscores our confidence in the durability of our growth. Finally, I want to note that this summer offered an extraordinary reminder of the power of congregate entertainment. The FIFA World Cup, the largest in history, shattered the all-time attendance record as millions of fans traveled across North America and spent at record levels, not for a thing, but to be present for a moment. This is the same consumer impulse that is at the heart of our business, the demand for shared location-based experiences that cannot be replicated at home. We built this company around that enduring demand, and this summer afforded a powerful reminder of its continued relevance. Now I'll turn the call over to Ben, who will review the business in greater detail. Benjamin Fox: Thank you, Greg. As Greg just noted, the second quarter marked another strong step forward in our growth strategy, building on the momentum we established at the start of the year. During the quarter, we invested $440.8 million at an average initial cash yield of approximately 8.5%, bringing our year-to-date total investments to $492.2 million. This investment volume is inclusive of our previously announced acquisition of 7 theme parks formerly operated by Six Flags as well as 2 additional attractions properties, a new investment in golf and a new investment in Hot Springs. On the Netflix House investment, not only is Netflix, an A-rated corporate credit, but is one of the leading streaming platforms, our partnership with them further validates the powerful role, the physical experiences play in an increasingly digital world. Equally noteworthy is the continued diversification of our portfolio and the corresponding decrease in our theater concentration from 36% reported last quarter to roughly 1/3 of the portfolio today. Beyond these investments, as of June 30, we expect approximately $92 million in additional investment for existing experiential development and redevelopment projects, of which approximately $65 million is anticipated to be funded throughout the remainder of 2026. Given the velocity of investment activity in the first half of the year and the expanded breadth and depth of our pipeline, we're pleased to increase our 2026 investment guidance to $600 million to $700 million. We continue to expect investment activity for 2026 to be tilted more toward acquisitions than development. To reiterate a theme from the first quarter, our investment pipeline is sourced almost exclusively from nonmarketed investments generated by direct relationships our investment team has established over many years and demonstrating that EPR is the partner of choice for experiential real estate, approximately half of our investment pipeline represents repeat relationships. On market pricing, we continue to see investment yields holding steady despite volatility in the debt capital markets. Turning now to an update on the portfolio. At the end of the second quarter, our portfolio represented $7.5 billion of gross investment value, consisting of 346 properties, which were 99% leased or operated. 95% of this value reflects investments across our core experiential categories. These 291 properties are operated by 57 clients and continue to be 99% leased or operated. The remaining 5% of the portfolio represents our Education segment comprised of 55 properties leased by 5 operators. At the end of the quarter, these properties were 100% leased. The portfolio remains resilient with unit level rent coverage steady at 2x. As consumers redefine wellness and human connection as essential rather than discretionary, we expect to see these trends translate into continued strength in the portfolio. Within our theater segment, the second quarter saw a continuation of the outperformance witnessed in the first quarter. Ticket sales are approximately 10% above the same point in 2025 as the industry demonstrates sustainable growth. What's especially encouraging is that younger moviegoers are helping fuel the comeback. 87% of Gen Zers and 82% of millennials saw at least one movie in a cinema during the past 12 months. Within the Eat & Play segment, rent coverage is stable with positive trends emerging at Topgolf from early operational enhancements post separation from Callaway. Attractions delivered strong performance in the second quarter with a reversal of some of the prior year's negative weather impact and the removal of certain geopolitical variables, which adversely impacted 2025. Our Fitness and Wellness segment continues to deliver solid performance with stabilizing trends at some of our recently renovated and expanded properties. Lastly, our education portfolio continues to remain healthy despite industry-wide labor headwinds. Pivoting to dispositions. As referenced on the first quarter's call, the pace of dispositions is moderating given our renewed focus on opportunistic sales relative to defensive sales. This shift is reflective of the general health of our portfolio and the outstanding work done by the asset management team in reducing legacy vacancies. Accordingly, we are maintaining our disposition guidance of $50 million to $100 million. In summary, our company benefits from durable demographic and consumer spending tailwinds. These same forces fueling our growth also reinforce the stability of our portfolio. We see significant opportunities ahead and look forward to continuing to expand and diversify. With that, I'll turn it over to Mark for a review of our financial performance. Mark Peterson: Thank you, Ben. Today, I will discuss our strong financial performance for the second quarter, provide an update on our balance sheet and close by discussing the increases in our earnings and investment spending guidance for the year. FFO as adjusted for the quarter was $1.42 per share versus $1.26 in the prior year, an increase of 12.7% and AFFO for the quarter was $1.43 per share compared to $1.24 in the prior year, an increase of 15.3%. Now moving to a few key variances. Total revenue for the quarter was $196.1 million versus $178.1 million in the prior year, an increase of $18 million. This increase was primarily due to the impact of investment spending as well as rent and interest bumps. Percentage rents and participating interest for the quarter were $4.8 million, up slightly from $4.6 million in the prior year as an increase in percentage rent accrued related to the Regal lease was partially offset by a decrease in percentage rent related to our Northern California ski property that was impacted by unfavorable weather conditions. Additionally, during the quarter, we recognized $500,000 in defeasance fee income related to the prepayment in full of a $10.8 million mortgage note receivable secured by an Eat & Play property. On the expense side, interest expense net increased by $5 million due to an increase in average borrowings and a decrease in capitalized interest versus the prior year. Partially offsetting this was an increase in interest income related to short-term investments. Lastly, equity and loss from joint ventures for the quarter was $1 million compared to $1.7 million in the prior year and was due to better performance at our 2 RV Park joint ventures. FFO as adjusted for the 6 months ended June 30 was $2.67 per share compared to $2.45 in the prior year, an increase of 9% and AFFO for the same period was $2.71 per share compared to $2.44 in the prior year, an increase of 11.1%. Turning to the next slide, I will review some of the company's key credit ratios. As you can see, our coverage ratios continue to be very strong with fixed charge coverage at 3.4x and both interest and debt service coverage ratios at 4.0x. Our pro forma net debt to annualized adjusted EBITDAre was 5.1x at quarter end, which is at the low end of our targeted range of 5 to 5.6x. Pro forma net debt is calculated by subtracting the estimated net proceeds from all forward sales agreements under our ATM program from net debt. Additionally, our pro forma net debt to gross assets was 41% on a book basis at quarter end, and our common dividend continues to be very well covered with an AFFO payout ratio of 65% for the second quarter. Now let's move on to the debt and capital markets activities and our balance sheet, which is in great shape to support our continued growth. At quarter end, we had consolidated debt of $3.3 billion, of which $3 billion is either fixed rate debt or debt that has been fixed through interest rate swaps with an overall blended coupon of approximately 4.4%. During the quarter, we entered into 2 forward sales agreements under our ATM program for initial gross sales proceeds of $23.4 million or an average sale price of $59.70 per share. No forward sales agreements were settled during the quarter. As of quarter end, we had total estimated net proceeds from unsettled forward sales agreements of $69.5 million, representing just under 1.2 million common shares. Subsequent to quarter end, on July 17, we were pleased to also enter into a new amended and restated $1.6 billion credit agreement that, among other things, extends the maturity date and reduces the interest rate on our $1 billion revolving credit facility and establishes a new $600 million delayed draw term loan facility that is due in 2032 with interest based on our current credit ratings at SOFR plus 115 basis points. Our bank group, which was expanded as part of this financing was very supportive of these new facilities. We want to thank them once again for their confidence in our long-term strategy. Our liquidity position remains strong, and we are well positioned for continued growth. At quarter end, we had $16.2 million in cash on hand and $640 million available on our $1 billion revolver. In addition to the amount available under our revolver as well as positive cash flow and disposition proceeds expected over the back half of the year, we have the cash available to draw down on our new term loan facility and unsettled forward sales agreements that I just discussed. These liquidity sources significantly exceed our anticipated outflows, including those for our expected investment spending and debt maturities over the balance of the year. This provides us with significant financial flexibility as we move forward. Turning to guidance. We are increasing our 2026 FFO as adjusted per share guidance to a range of $5.41 to $5.57 from a range of $5.37 to $5.53, representing an increase versus the prior year of 7.2% at the midpoint. We expect a similar percentage increase in AFFO per share. We are also increasing our 2026 guidance for investment spending to a range of $600 million to $700 million from a range of $500 million to $600 million. The increase in earnings guidance reflects this increase in investment spending as well as other favorable impacts from our investment activity to date and strong portfolio performance. We are confirming disposition proceeds of $50 million to $100 million and our percentage rent and participating interest income guidance of $18.5 million to $22.5 million. We are also confirming our G&A expense guidance of $56 million to $59 million. Finally, our guidance for consolidated operating properties has been updated by providing a range for both other income and other expense of $40 million to $50 million with no change to the expected net difference. Guidance details can be found on Page 23 of our supplemental. Now with that, I'll turn it back over to Greg for his closing remarks. Gregory Silvers: Thank you, Mark. We are very pleased with the pace and quality of our investments to date, and our focus remains on supporting our strong growth trajectory. The performance and momentum across our businesses allows us to confidently increase our investment guidance and demonstrates our ability to source attractive transactions in this competitive landscape. We remain focused on executing our strategy and advancing our growth objectives in the quarters ahead. With that, why don't we open it up for questions? Operator: Our first question will come from Jana Galan at Bank of America. Jana Galan: Congrats on an excellent quarter. Maybe starting on the transaction environment and the initial yields were about 50 bps higher this quarter. I know, Ben, in your remarks, you said that pricing is about the same. I guess maybe if you can help us understand, was it the mix? Was it portfolios? How are you able to kind of bump that up 50 basis points? Benjamin Fox: I think what we've said historically is in the low to mid-8s. And so we're hovering in the same general vicinity. Really, the mix is holding pretty steady as is the pricing. Jana Galan: And would that be similar kind of on the forward pipeline? Benjamin Fox: Yes. Jana Galan: Great. And then maybe just quickly, Mark, if you can help us understand the magnitude of the guidance increase given the strong second quarter outperformance? Mark Peterson: Yes. Some of the second quarter performance is timing, particularly percentage rents was a little higher in Q2 than we expected, which turns around if you look at our guidance for the year. But overall, if you look at our guidance for the year, we're up $0.04. I'd say $0.035 of that or so is due to the investment spending and better performance in the portfolio, i.e., less bad debt expense that we envisioned and then about $0.005 from that defeasance fee that I called out in my comments from the prepayment of a mortgage loan. So that's really what the $0.04 is about. We did have some, like I said, some timing in the first quarter related to percentage rents that were a little outsized from what we had anticipated. Then managed properties was a little higher, but we think that turns around in the back half and really comes in line with what we had anticipated. Operator: Our next question will come from John Kilichowski with Wells Fargo. John Kilichowski: Can you hear me? Gregory Silvers: Yes. John Kilichowski: Awesome. I just want to make sure I got that right. So you're trading well north of where you issued on the ATM in this quarter. And I'm curious today, how does that impact, how you're thinking about funding the rest of your pipeline with access to more capital? And is there room to take up that acquisition pipeline now that the second half may look better than the first half just from an accessibility to capital point of view? Gregory Silvers: John, again, that's something we'll evaluate. Again, it's in conjunction with finding deals not only that we like, but that are -- can get done within the time frame. I think Ben and his team are actively in the market looking and searching out quality deals. I think Mark and his team are doing a great job of providing an attractive capital source and capital cost. Those 2 work in conjunction. As we've seen, when we have the availability and both of those things come together, we've accelerated. So I will continue to look at those opportunities. Mark Peterson: Yes. I'll just add to that. If you look at our cash flow over the last 6 months, it's pretty balanced in terms of uses and sources. On the use side, we've got investment spending, some bond maturities. And on the source side, we've got some the term loan and disposition proceeds and excess cash flow and the potential to settle some ATM shares. Those are about equal, and we start the year at -- we start the -- ended the quarter at $360 million. We have that $640 million availability in liquidity kind of through the end of the year and really our plan is fully funded. As far as leverage, that's the other thing you consider when looking at equity. We are at 5.1x at the end of 6/30, including our forward equity. That number only grows to about 5.2x, raising no more equity. I think what that tells you, we have a lot of flexibility here to decide when and how we access the market for equity and/or debt given our leverage profile, given our liquidity profile over the remainder of the year. John Kilichowski: Okay. That was very helpful. Then my second one, Mark, you kind of highlighted earlier on the percentage rent side that 2Q ran a little bit above expectations, but the guide remains flat. I'm curious what that is implying now for the second half, especially given the strength that we're seeing in the box office, how is that impacting your outlook on percentage rent for the rest of the year? Mark Peterson: Yes. June came in a little bit higher, particularly for Regal, really strong June. We'll see how July plays out. July is anticipated to be lower than previous year, although strong. There's innings to play on that. I mean Spider-Man is out and Friday could be a $100 million day, which moves the needle on percentage rents. So we kept it the same, but there's potential for some upside should Spider-Man perform over -- really tomorrow is the last day of the lease. Gregory Silvers: Today's previous tomorrows, but I mean, as Mark said, John, that could be in excess of $100 million. As we've said, $100 million, that's -- since we're across the barrier, we will fall right to the bottom line of where we're at. I think it's -- given the short time period, we decided just to not move things. We'll see how it plays out. Mark Peterson: The upside could be -- would be fairly modest, but could be if things play out, like you said, over -- see how things go tomorrow. John Kilichowski: Congrats on the quarter. Mark Peterson: One thing I'd add to that is we projected a lot of increase in the box office, we anticipated a lot of that. So it wasn't like a surprise to us that the box office is doing well. Operator: Our next question comes from Rob Stevenson with Huntington. Rob Stevenson: Mark, what are the bigger variables that pushes you towards the $5.41 of FFOAA at the low end versus the upper end at $5.57? Mark Peterson: Yes. There's quite a few things. You think about percentage rents, there's still innings to play. It's not just about Regal. Nearly 2/3 of our rent is -- percentage rent is from other tenants. Obviously, we have operating properties in the third quarter is its primary operating season. So we'll see how that goes up or down. Obviously, the timing of acquisitions -- forward acquisitions and cap rate, those are some of the variables. G&A can vary in terms of incentive comp. So there are several variables that could impact that, but we do feel confident in that midpoint in terms of our guidance. Rob Stevenson: Okay. And then, Greg or Ben, can you give us any indication as to how the -- I know it's early, but how the former Six Flags Park assets are doing versus what they were doing over the last couple of years directionally? Gregory Silvers: Yes. I think, listen, being open a month, what we're really looking at is kind of almost guest reviews certainly. There seems to be some really positive momentum in terms of kind of cleanliness, friendliness, availability of rides. The initial indications seem positive, talking with our operator, they seem still very positive. As we talked about, any major changes since they only got control of the parks in April will come after the season. This really was kind of getting the operations up and moving and controlling certain things that they can control. But things have been positive so far, Ben, I don't know if you have anything to add on that. Benjamin Fox: That's right, across those. And then with our other Attractions, we are seeing continued strength and a little bit of outperformance relative to the prior year. Rob Stevenson: Okay. And then last one for me. How many of these Netflix houses are there today? And is this a concept that they're looking to expand? Is there an opportunity for you to expand with them, if that's the case? Gregory Silvers: I think there's 3 total. Again, we're -- Ben and his team are in constant contact, again, with all of our tenants, and we'll have to just see how it plays out. But I think it's evidence of our ability to kind of -- even when new concepts come in, we're on top of it quickly and see if it's something that we think grows with us. And so we'll continue to stay in contact with them. Operator: Our next question will come from Nicholas Joseph with Citi. Nicholas Joseph: The 2x coverage has been pretty consistent for several quarters now. Have there been any changes in the underlying composition of that metric? Gregory Silvers: Yes, Nick, the definitely, as we talked about, the ski was a little softer this year because of the weather, but the theaters are stronger. So you have that kind of nice balance. There's also -- again, it's a pretty tight range, but yes, you're having some things come a little bit. There's no doubt that theaters are coming up a little bit. Where there has been some softness where that ski or we talked about earlier in the first quarter, some softness in Eat & Play, that's manifesting that. But given their size, it's not huge. It's a pretty tight band, but... Nicholas Joseph: That's very helpful. And then maybe just more broadly, as you have obviously a lot of exposure across different consumers in different parts of the economic spectrum. What are you seeing from the consumer right now just on the relative strength across different economic classes? Gregory Silvers: It's really interesting. It's surprisingly resilient. I mean if you think about ski being kind of a higher end, again, that's really been a reflection of lack of ski of snow, but it's the hanging in there. You saw Vail reported that season passes were down 10%, but that's still relatively strong. I think on -- if you look at the theater business, the thing that we're always and continuing to be mindful of is not only our ticket sales up, but the food and beverage spend continues to be strong. I think it's really -- it's been kind of a very, very positive kind of feeling. The other side of that is, like I said, we've seen continued strength. I mean, with that consumer, and you see that reflected in like AMC's recent reporting yesterday about the best quarter ever that they had. And so I think it seems -- I'd characterize it as resilient. But I mean, Ben, I don't know if you have any other additional thing to add to that. Benjamin Fox: That's right. I think that resilience is really across the board. I mean even middle-income consumers are demonstrating the propensity to spend on experiential activities, and our portfolio is benefiting from that consumer spending. Operator: Our next question will come from Mike Carroll with RBC Capital Markets. Michael Carroll: I want to circle back to guidance and Mark's comments on the recent increase. I know I think you said that the increase is largely due to the recent investment activity and the outperformance due to better operating performance. Where is the better operating performance coming from? I mean if I just look at the individual guidance lines, it looks like the percentage rents and the other income and expenses were unchanged. So you just -- are you expecting that those to come in at the higher end and you're just trying to be conservative on that front? Or was the increase largely driven by the acquisition activity? Mark Peterson: When I talk about performance portfolio, we build in a bad debt reserve or a general reserve, if you will, for things like bad debt, and that's really coming in better than expected. So I'd say part of that increase is investment activity. When I talk about portfolio performance, really less issues in the portfolio than we conservatively estimated. Michael Carroll: Mark, can you give us a little detail on that? Like how -- what is the typical bad debt that you expect? I'm assuming that's what you just assume as the historical averages? And where is that coming in right now? Mark Peterson: Yes. We called out in the original plan about 50 to 75 basis points. It's probably more like in terms of 40 basis points. In terms of when I call bad debt, bad debt or anything that impacts earnings, it's lower than anticipated. Michael Carroll: Okay. Great. And then I know also you said that percentage rents were higher in 2Q '26 than you expected, and it was largely due to timing. I guess what drove that? Did you just have some tenants that paid earlier and that's not going to reoccur in the back half of the year? So 2Q was just abnormally high. I know you talked a little bit about the Regal lease, but that happens every year. And I don't know if I would say that's temporary. It seems like if it's from that, that would be like a true increase. Mark Peterson: Well, Regal is a little different in that it depends on the dollar value of box office during the quarter. In June, June this year was bigger than June last year, and so we hit the threshold earlier and accrued more into June. July could be strong, but it's still expected to be less than a year ago. Overall, we'll see how July shakes out, but we're kind of budgeting -- planning on sort of as we planned. There's a little bit of timing between June and July versus the prior year, and it's all about box office. That's the primary thing driving the year-over-year timing with respect to Regal, which is the primary tenant that's causing that change. Gregory Silvers: Yes. Again, if you look, Michael, June was quite a bit bigger than June last year and July this year is a little bit smaller than July of last year. So that flips the timing of when you get that. So that timing just kind of rolled in that way. But the net-net to the year is virtually kind of where we projected. Mark Peterson: Exactly. Which is up over prior year because we anticipated a box office increase. Michael Carroll: Okay. And then where is the box office coming in at versus your expectations? I mean, is it exceeding your expectations right now? Gregory Silvers: Again, as I said, right now, we would say that we're pretty close to where our expectations were for the Regal lease. Now the overall year, again, is up. And so that's positive. But remember, half the year is last year for Regal. Again, some of that was overcoming what was some softness in the second half of last year with outperformance this year, but our team does a really good job of kind of where that's at. I think as I said earlier, our variable really will be kind of how well -- I think Spider-Man does plus or minus. It's not going to be a huge variable. I mean we're talking, Mark, $0.5 million top so it's not a huge number, but our guys are really good at projecting this. I think depending upon how that first kind of opening days, what they're talking now, Spider-Man could easily be the best opening of the year so far, which is -- and also the best opening since 2019. No, we didn't forecast that good. So if it comes in, we could have some upside to that. Operator: Our next question will come from Spenser Glimcher with Green Street. Spenser Allaway: Of your investment opportunity set. Can you just give us a sense of what you're seeing in terms of competition for assets? And what segments or industries are you seeing more of in terms of buying opportunities irrespective of them getting across the finish line and being added to the portfolio? Benjamin Fox: Yes. Similar to last quarter, we're really seeing opportunities across all of our verticals. Probably if you were to kind of drill a layer down, maybe a slight pickup in fitness and wellness, broadly speaking. The competitive landscape remains very consistent as well, where we're not seeing a lot of the traditional net lease REITs or other net lease investors. It's primarily family offices or alternative forms of capital. Spenser Allaway: Okay. Great. And then you also talked about opportunistic divestments. So can you just provide some color on whether there's still a continuation of developer interest in theater assets? Because I know you've had success in the past divesting these theaters for redevelopment or densification purposes. Benjamin Fox: Yes. That dynamic persists. We do have very high-quality real estate throughout the portfolio. Then also within some of our segments, notably in Education, which we're looking to reduce, there are opportunities there where there's strong investor interest. Gregory Silvers: I think, Spenser, one of the challenges, just to be candid with you is they've done a great job of selling things that are vacant, although we only have one vacant theater. Now these are leased theaters. So we would have to either, a, pull them out of a master lease or get the tenant to give up their lease rights. We get calls every day about the quality of some of these real estate where people would like to redevelop them. It's just -- and attaching that from its existing lease sometimes creates more challenges. Operator: Our final question will come from John Kilichowski with Wells Fargo. Gregory Silvers: I don't know that John is there. Operator: No problem. We have one final question from Upal Rana with KeyBanc Capital Markets. Upal Rana: Just want to go back to the funding, your future investments. Mark, you talked about this a little bit already. But how are you thinking about the preference or the ideal mix on your funding strategy going forward? And I also wanted to get an update on your appetite to issue more equity given the higher share price as your issuance so far has been a little bit more on the modest side. Mark Peterson: Yes. We generally tend to think about it for incremental investments, debt and equity, kind of 60% equity, 40% debt roughly. That's how we look at it. The good news is with our leverage and our liquidity, we don't -- we're not compelled to raise equity. That said, we continue to look at the pipeline continues to be strong. It does make sense at this price, it is accretive to incrementally raise equity at today's price to fund additional pipeline. But I think the bottom line is that incremental capital will be used for incremental investing because we're not really compelled to fund the current plan using equity. Upal Rana: Okay. Great. That was helpful. And then maybe just on Topgolf. You mentioned there were some encouraging improvements from positive trends there from the operational announcements. Maybe you could talk a little bit more on what you're seeing there? Benjamin Fox: Yes, Upal. The new CEO, David, he's taken several steps to address different opportunities he saw within that business. They range from a headcount reduction to create operational efficiencies as well as better utilization of the existing footprint. A lot of those initiatives are starting to bear fruit, and we expect that trend to continue in a positive direction as more and more of those initiatives take hold. Gregory Silvers: Yes. I think, Upal, one of the things that they specifically we've followed up on is there's more thinking about dynamic pricing and how that affects during the day and early in the evening, and they've seen that show up with greater foot traffic with foot traffic counts. Those are always kind of real positives as we -- as data points that we see. With that said, I want to reiterate that the strength of our portfolio continues to be very, very resilient. And so we feel very good about where we're at. It's just there's a lot of tuck-ins. So when we see positives, we want to share that. Operator: There are no more questions. So I will now turn the call back over to Greg Silvers, Chairman and CEO, for any closing remarks. Gregory Silvers: Thank you, Sophie. Thank you, everyone, for your time and attention. We look forward to talking to you next quarter. Thanks, everyone. Bye-bye. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends EPR Properties. The Motley Fool has a disclosure policy. EPR (EPR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. EPR Properties (EPR) has just released second quarter 2026 results, giving you fresh detail on how its experiential real estate portfolio is performing and how recent investments are flowing through to earnings. See our latest analysis for EPR Properties. The latest earnings release, steady full year guidance and the new US$1.6b credit agreement have come alongside a 1 month share price return of 7.5% and a 22.3% year to date share price gain, while the 3 year total shareholder return of 78.2% points to momentum that has extended beyond this recent quarter. If EPR Properties' recent moves have you thinking about where else capital might flow in real assets and infrastructure, this could be a useful moment to broaden your search into companies powering essential networks through the 35 power grid technology and infrastructure stocks Bulls point to EPR Properties' experiential focus, leasing metrics and new credit capacity. Bears highlight softer earnings per share and capital needs. As the stock trades near analysts' targets, which side does the current valuation appear to support? The most followed narrative currently places EPR Properties' fair value at $60.22, slightly below the last close of $62.07, which suggests limited upside from here. Read the complete narrative. Curious what sits behind that $60.22 fair value for EPR Properties? The narrative leans heavily on steady revenue expansion, firm margins and a higher future earnings multiple. Want to see which assumption does the heavy lifting in that model. Result: Fair Value of $60.22 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to watch for weaker tenant credit in entertainment venues and higher ESG related capex, which could squeeze EPR Properties' margins and cash flow. Find out about the key risks to this EPR Properties narrative. Analysts see EPR Properties as about 3.1% overvalued against a $60.22 fair value, yet other metrics tell a slightly different story. The stock trades on a P/E of 19.9x, which is lower than the 29.1x average for the North American Specialized REITs industry but a touch higher than the 19.5x peer average. Simply Wall St's fair ratio for EPR Properties is 35.6x, well above the current 19.9x. That wide gap suggests the market could move closer to that higher ratio over time or stay cautious and hold the current discount. Which side of that trade do you think is more realistic for your own portfolio? See what the numbers say about this price — find out in our valuation breakdown. If this mix of optimism and concern around EPR Properties leaves you on the fence, move quickly to check the underlying data, balance the potential risks and upsides, and weigh the 3 key rewards and 3 important warning signs If EPR Properties has sharpened your focus on where to put fresh capital, do not stop here; the wider market still holds plenty of potential opportunities. Spot potential value opportunities early by checking companies that currently screen as 55 high quality undervalued stocks. Build a steadier income stream by reviewing stocks that qualify as 9 dividend fortresses. Guard against surprises by focusing on companies in the 81 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EPR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: Total revenue for Q2 2026 was $196.1 million, up from $178.1 million in the prior year, an increase of $18 million. FFO as Adjusted: $1.42 per share for the quarter, up 12.7% from $1.26 in the prior year. AFFO: $1.43 per share for the quarter, up 15.3% from $1.24 in the prior year. FFO as Adjusted (Six Months): $2.67 per share for the six months ended June 30, up 9% from $2.45 in the prior year. AFFO (Six Months): $2.71 per share for the six months ended June 30, up 11.1% from $2.44 in the prior year. Percentage Rents and Participating Interest: $4.8 million for the quarter, up slightly from $4.6 million in the prior year. Interest Expense Net: Increased by $5 million due to higher average borrowings and decreased capitalized interest. Equity Loss from Joint Ventures: $1 million for the quarter, compared to $1.7 million in the prior year. Investment Spending: $440.8 million in Q2 at an average initial cash yield of approximately 8.5%; year-to-date total investments reached $492.2 million. Portfolio Metrics: 346 properties, 99% leased or operated; unit level rent coverage steady at 2 times. Guidance: Increased 2026 FFO as adjusted per share guidance to $5.41-$5.57; increased 2026 investment spending guidance to $600 million-$700 million. Warning! GuruFocus has detected 8 Warning Sign with EPR. Is EPR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EPR Properties (NYSE:EPR) reported strong Q2 2026 results with revenue up 10.1% and FFO as adjusted per share up 12.7% year-over-year, reflecting robust growth momentum. The company achieved a post-COVID high in quarterly investment activity, deploying over $440 million at an average initial cash yield of approximately 8.5%, including the acquisition of the Six Flags 7 property portfolio and a new partnership with Netflix for Netflix House. Portfolio performance remains solid with rent coverage steady at 2 times, and the box office is up approximately 10% year-to-date, driven by strong theatrical releases and increased attendance from younger demographics. EPR Properties (NYSE:EPR) strengthened its financial position by establishing a new $1.6 billion credit agreement, extending maturities and reducing interest rates, while maintaining strong credit ratios with fixed charge coverage at 3.4 times and pro forma net debt to annualized adjusted EBITDAre at 5.1 times. The company raised its 2026 investment spending guidance to $600 million to $700 million and its FFO as adjusted per share guidance to $5.41 to $5.57, reflecting confidence in continued growth and a 7.2% increase at the midpoint over 2025. The portfolio is well-diversified with theater concentration reduced to roughly one-third, and the company continues to see a strong pipeline of nonmarketed investment opportunities, with approximately half from repeat relationships. EPR Properties (NYSE:EPR) experienced a decrease in percentage rent related to its Northern California ski property due to unfavorable weather conditions, impacting overall percentage rent income. Interest expense net increased by $5 million due to higher average borrowings and a decrease in capitalized interest, partially offset by higher interest income from short-term investments. The company noted that July box office is anticipated to be lower than the prior year, which could affect percentage rent income, though potential upside exists from strong film releases like Spider-Man. The pace of dispositions is moderating as the company shifts from defensive to opportunistic sales, which may limit near-term capital recycling opportunities. EPR Properties (NYSE:EPR) faces challenges in divesting leased theater assets due to the need to negotiate lease terminations or master lease exits, which could hinder opportunistic sales. The company's investment pipeline is subject to competitive pressures from family offices and alternative capital sources, though traditional net lease REITs are less active. Q: Can you provide more detail on the funding strategy for future investments, including the ideal mix and the appetite to issue more equity given the higher share price? A: Mark Peterson (CFO) stated that the company generally thinks about funding incremental investments with a mix of roughly 60% equity and 40% debt. He emphasized that due to strong leverage and liquidity, they are not compelled to raise equity. However, given the current accretive share price, it makes sense to incrementally raise equity to fund additional pipeline opportunities, but that capital will be used for incremental investing rather than funding the current plan. Q: What drove the 50 basis point increase in initial investment yields this quarter, and is that trend expected to continue in the forward pipeline? A: Benjamin Fox (CIO) explained that the yields are hovering in the same general vicinity of the low-to-mid 8% range they have historically quoted. The mix of investments is holding pretty steady, as is the pricing, and he confirmed that similar yields are expected in the forward pipeline. Q: Can you break down the components of the $0.04 increase in FFO as adjusted per share guidance? A: Mark Peterson (CFO) attributed approximately $0.035 of the increase to higher investment spending and better-than-expected portfolio performance, specifically lower bad debt expense than originally envisioned. The remaining $0.005 is due to a defeasance fee from the prepayment of a mortgage loan. He noted that some second-quarter outperformance, particularly in percentage rents, was a timing issue that is expected to normalize in the back half of the year. Q: What are the bigger variables that could push FFO as adjusted per share to the low end ($5.41) versus the high end ($5.57) of the updated guidance range? A: Mark Peterson (CFO) cited several variables, including percentage rents (which still have time to play out, with nearly two-thirds coming from non-Regal tenants), the performance of operating properties during the third-quarter primary operating season, the timing and cap rates of forward acquisitions, and potential variations in G&A due to incentive compensation. Q: How are the former Six Flags theme park assets performing since the acquisition, and what is the early read on the Netflix House investment? A: Gregory Silvers (CEO) noted that the parks have been open for about a month, and early indications are positive, including guest reviews on cleanliness, friendliness, and ride availability. The operator remains positive, though major changes will come after the season. Regarding Netflix House, he confirmed there are three locations total, and the company is in constant contact with Netflix to see if the concept grows, highlighting EPR's ability to quickly engage with new concepts. Q: Has the underlying composition of the 2 times rent coverage metric changed, and what are you seeing from the consumer across different economic classes? A: Gregory Silvers (CEO) explained that while the overall coverage remains steady at 2 times, the composition has shifted. Theaters are stronger, while ski properties were softer due to weather and Eat & Play had some softness. He characterized the consumer as "surprisingly resilient" across the board, noting strong food and beverage spend at theaters and citing AMC's best quarter ever as evidence. Benjamin Fox (CIO) added that even middle-income consumers are demonstrating a propensity to spend on experiential activities. Q: Where is the better-than-expected operating performance coming from that contributed to the guidance increase? A: Mark Peterson (CFO) clarified that the portfolio performance improvement is primarily due to lower bad debt expense than conservatively estimated. The company originally planned for about 50 to 75 basis points of bad debt, but it is coming in closer to 40 basis points, which positively impacts earnings. Q: Can you provide color on the competitive landscape for investments and whether there is continued developer interest in theater assets for redevelopment? A: Benjamin Fox (CIO) stated that opportunities are seen across all verticals, with a slight pickup in fitness and wellness. The competitive landscape remains consistent, with family offices and alternative capital being the primary competitors rather than traditional net lease REITs. Gregory Silvers (CEO) added that while there is strong developer interest in the high-quality real estate, the challenge is that most theaters are now leased, requiring tenants to give up lease rights, which creates more complexity than selling vacant properties. Q: What are you seeing at Topgolf following the operational enhancements post-separation from Callaway? A: Benjamin Fox (CIO) noted that the new CEO has implemented several initiatives, including headcount reductions for operational efficiencies and better utilization of the existing footprint. These initiatives are starting to bear fruit, and the trend is expected to continue positively. Gregory Silvers (CEO) added that dynamic pricing strategies have led to greater foot traffic, which is a positive data point. Q: How is the box office performing relative to expectations, and what is the outlook for percentage rents given the strength? A: Gregory Silvers (CEO) stated that the box office is up approximately 10% year-to-date and is close to expectations for the Regal lease. Mark Peterson (CFO) explained that June was stronger than expected, but July is anticipated to be lower than the prior year. The guidance for percentage rents was kept unchanged, but there is potential for upside if the new Spider-Man movie performs well, as it could be the best opening since 2019, which was not forecasted. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Look To REITs For Reliable Yield Even In Recessionary Environment EPR Properties (NYSE:EPR) reported higher revenue and funds from operations in the second quarter of 2026, supported by investment activity, rent and interest increases, and portfolio performance. The experiential real estate investment trust also raised its full-year investment spending and earnings guidance after completing more than $440 million of investments during the quarter. Revenue rose 10.1% year over year to $196.1 million, while FFO as adjusted increased 12.7% to $1.42 per share, from $1.26 per share in the prior-year period. Adjusted funds from operations increased 15.3% to $1.43 per share. For the first six months of the year, FFO as adjusted rose 9% to $2.67 per share and AFFO increased 11.1% to $2.71 per share. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The company invested $440.8 million during the quarter at an average initial cash yield of about 8.5%, bringing year-to-date investment volume to $492.2 million. Chief Executive Officer Greg Silvers described the quarter as a “significant step forward” in the company’s effort to accelerate growth. Investment activity included the previously announced acquisition of 17 parks formerly operated by Six Flags, two additional attraction properties, a golf investment and an investment in Hot Springs. EPR also acquired a Netflix House location in King of Prussia, Pennsylvania, establishing Netflix as a new partner. → Microsoft Just Flipped the AI Spending Narrative Overnight Chief Investment Officer Ben Fox said Netflix House reflects the role of physical experiences for digital entertainment brands. He also said the investments reduced theater concentration to roughly one-third of the portfolio, compared with 36% at the end of the prior quarter. As of June 30, EPR expected about $92 million of additional investment in existing experiential development and redevelopment projects, including approximately $65 million expected to be funded through the remainder of 2026. → Carrier Earnings Could Send the Stock to a New All-Time High The company raised its full-year investment spending guidance to $600 million to $700 million from $500 million to $600 million. Fox said activity for the year is still expected to lean more toward acquisitions than development, with the pipeline sourced “almost exclusively” through direct, non-marketed relationships. About half of the investment pipeline consists of repeat relationships, according to the company. Management said investment yields and pricing have remained generally steady despite debt-market volatility. Fox said opportunities are appearing across EPR’s verticals, with a potential modest increase in fitness and wellness opportunities. Competition has primarily come from family offices and other alternative capital sources rather than traditional net-lease REIT investors, he said. At quarter-end, EPR’s portfolio had a gross investment value of $7.5 billion across 346 properties and was 99% leased or operated. Its core experiential portfolio comprised 291 properties operated by 57 clients and was also 99% leased or operated. The education segment included 55 properties leased to five operators and was 100% leased. Unit-level rent coverage remained at two times. Silvers said the composition underlying that figure shifted during the quarter, with stronger theaters partly balancing weather-related softness at ski properties and some earlier softness in Eat & Play assets. Theater ticket sales were approximately 10% above the same point in 2025, management said. Silvers attributed the increase to a mix of major studio releases and lower-budget breakout films, while Fox said younger moviegoers were helping support theater attendance. The company said 87% of Generation Z consumers and 82% of millennials saw at least one movie in a theater over the past 12 months. Percentage rents and participating interest totaled $4.8 million, up from $4.6 million a year earlier. An increase in percentage rent tied to the RIO lease was partly offset by lower percentage rent from a Northern California ski property affected by unfavorable weather. Management maintained its full-year percentage rent and participating interest outlook of $18.5 million to $22.5 million. Chief Financial Officer Mark Peterson said second-quarter percentage rent was above internal expectations partly because stronger June box office caused Regal to reach lease thresholds earlier than in the prior year. The company said that timing could reverse in July and noted that the full-year outlook remained unchanged. Elsewhere, the company reported stable Eat & Play rent coverage and positive early trends at Topgolf following operational changes after its separation from Callaway. Fox said Topgolf’s new leadership has pursued cost efficiencies, including headcount reductions, along with efforts to improve utilization of its existing locations and use dynamic pricing. Net interest expense increased $5 million year over year, reflecting higher average borrowings and lower capitalized interest, partly offset by increased interest income from short-term investments. EPR also recorded $500,000 of defeasance fee income from the full repayment of a $10.8 million mortgage note receivable secured by an Eat & Play property. The company ended the quarter with $3.3 billion of consolidated debt, including $3 billion of fixed-rate debt or debt fixed through swaps. The blended coupon was approximately 4.4%. Pro forma net debt to annualized adjusted EBITDAre was 5.1 times, at the low end of EPR’s stated 5.0 to 5.6 times target range. On July 17, EPR entered into a new amended and restated $1.6 billion credit agreement. The agreement extended the maturity and reduced the interest rate on its $1 billion revolving credit facility and added a $600 million delayed-draw term loan due in 2032. At quarter-end, the company had $16.2 million of cash and $640 million available under its revolver. Peterson said liquidity sources, including revolver capacity, anticipated cash flow, potential disposition proceeds, the new term loan and unsettled forward equity sales agreements, exceeded expected investment spending and debt maturities for the rest of the year. EPR raised its 2026 FFO as adjusted guidance to $5.41 to $5.57 per share, from $5.37 to $5.53 per share. The midpoint represents projected growth of 7.2% from 2025. Peterson said the guidance increase primarily reflects additional investment spending, favorable investment activity and lower-than-expected bad debt and other portfolio-related costs, along with $0.005 per share from the defeasance fee income. The company reaffirmed expected disposition proceeds of $50 million to $100 million and general and administrative expense guidance of $56 million to $59 million. Management said dispositions have moderated as the company shifts toward opportunistic sales rather than defensive asset sales. EPR Properties is a real estate investment trust that specializes in experiential properties across the United States, Canada and select international markets. Established in 1997 and headquartered in Kansas City, Missouri, the company targets properties in the entertainment, recreation and education sectors. Its portfolio includes movie theaters, ski resorts, family entertainment centers, charter schools and other venues that benefit from consumer-driven experiences. The trust employs long-term, triple-net lease agreements, where tenants are responsible for real estate taxes, insurance and maintenance. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "EPR Properties Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a post-COVID high for quarterly investment activity, totaling over $440 million, driven by a disciplined approach to durable experiential assets. Strategic entry into a partnership with Netflix through the acquisition of Netflix House, validating the role of physical immersive experiences for digital-first brands. Successfully reduced theater concentration to approximately one-third of the portfolio, reflecting a deliberate shift toward broader experiential diversification. Performance attribution for the quarter was bolstered by a 10% year-to-date increase in box office revenue, fueled by both studio tentpoles and creator-driven breakout films. Fitness and wellness segments are increasingly viewed as protected nondiscretionary categories by consumers, contributing to stable 2x portfolio rent coverage. The FIFA World Cup served as a macro indicator of the enduring demand for congregate, location-based experiences that cannot be replicated at home. Increased 2026 investment spending guidance to a range of $600 million to $700 million, reflecting a robust pipeline sourced primarily through direct, nonmarketed relationships. Raised 2026 FFO as adjusted per share guidance to $5.41–$5.57, assuming continued portfolio strength and lower-than-anticipated bad debt expense. Anticipate approximately $65 million in funding for existing experiential development and redevelopment projects through the remainder of 2026. Investment strategy for the second half of the year remains tilted toward acquisitions over development, with yields expected to hold steady despite debt market volatility. Guidance assumes a potential modest upside from major theatrical releases, though management maintains a conservative stance on percentage rent timing. Established a new $1.6 billion credit agreement, extending maturities and providing a $600 million delayed draw term loan to ensure balance sheet flexibility. Shifted disposition strategy from defensive to opportunistic, reflecting the general health of the portfolio and successful reduction of legacy vacancies. Recognized a $500,000 defeasance fee from the early prepayment of a mortgage note, reflecting year-over-year growth in FFO and AFFO per share. Noted early operational improvements at Topgolf following its separation from Callaway, specifically regarding dynamic pricing and headcount efficiencies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that yields remain in the low-to-mid 8% range, with the current 8.5% yield being a function of specific asset mix rather than a market shift. The forward pipeline is expected to maintain similar pricing levels despite volatility in capital markets. The current plan is fully funded through existing liquidity, including $640 million available on a $1 billion revolver and unsettled forward sales agreements. While not compelled to raise equity, management noted that current share prices make incremental issuance an attractive and accretive option for funding additional pipeline growth. Management characterized the consumer as 'surprisingly resilient,' noting that even middle-income earners are prioritizing experiential spending. Strong food and beverage spend in theaters and high foot traffic at attractions suggest that experiential activities are being treated as essential connection points.

Increases 2026 Earnings and Investment Spending Guidance Enters Into New $1.6 Billion Credit Agreement KANSAS CITY, Mo., July 29, 2026--(BUSINESS WIRE)--EPR Properties (NYSE:EPR) today announced operating results for the second quarter ended June 30, 2026 (dollars in thousands, except per share data): Second Quarter Company Headlines Strong Funds from Operations Growth - For the second quarter of 2026, FFOAA per diluted common share and AFFO per diluted common share increased by 12.7% and 15.3%, respectively, compared to the second quarter of 2025. Executes on Investment Pipeline - During the second quarter of 2026, the Company's investment spending totaled $440.8 million and included the previously announced acquisition of a portfolio of seven attraction properties from Six Flags Entertainment Corporation as well as investments in four other attraction and fitness and wellness properties. Enters Into Forward Sales Agreements Under Its ATM Program - During the second quarter of 2026, the Company entered into two forward sales agreements pursuant to its ATM Program for initial gross sales proceeds of $23.4 million, or an average forward price of $59.70 per share, subject to adjustment upon settlement. As of June 30, 2026, the Company had unsettled forward sales agreements with total estimated net proceeds of $69.5 million, representing 1,189,884 common shares. New $1.6 Billion Credit Agreement - Subsequent to quarter-end, the Company entered into a new amended and restated $1.6 billion credit agreement that, among other things, extends the maturity date and generally reduces the interest rate payable on its $1.0 billion unsecured revolving credit facility and establishes a new $600.0 million unsecured delayed draw term loan facility due in 2032. Increases 2026 Guidance - The Company is increasing FFOAA per diluted common share guidance for 2026 to a range of $5.41 to $5.57 from a range of $5.37 to $5.53, representing an increase of 7.2% at the midpoint over 2025. The Company is also increasing investment spending guidance for 2026 to a range of $600.0 million to $700.0 million from a range of $500.0 million to $600.0 million and confirming disposition proceeds guidance of $50.0 million to $100.0 million. "The second quarter marked a significant step forward in executing our growth strategy with the closing of our previously announced acquisition of the Six Flags portfolio of seven properties, as well as additional investments in attraction and fitness and wellness properties," stated Company Chairman and CEO Greg Silvers. "This disciplined growth, combined with continued strength across our experiential portfolio, drove strong quarterly earnings, while our new $1.6 billion credit agreement further enhances our liquidity and financial flexibility to pursue additional opportunities. We are increasing our 2026 earnings and investment spending guidance, underscoring our confidence in the durability of our growth." Investment Update The Company's investment spending during the three months ended June 30, 2026 totaled $440.8 million, bringing the total investment spending for the six months ended June 30, 2026 to $492.2 million. Investment spending for the quarter included the previously announced acquisition of seven attraction properties from Six Flags Entertainment Corporation for a total of $304.4 million with approximately $11.0 million anticipated to be invested in additional improvements to the properties over the next two years. Additionally, investment spending for the quarter included the acquisition of two attraction properties and one fitness and wellness property for a total of $114.3 million and mortgage financing of $12.8 million secured by a fitness and wellness property. The remaining investment spending for the quarter related to experiential build-to-suit development and redevelopment projects. As of June 30, 2026, the Company expects approximately $92.0 million in additional investment spending for existing experiential development and redevelopment projects, of which approximately $65.0 million is expected to be funded in the remainder of 2026. The Company also has a strong pipeline of potential new investments. ATM Activity During the three months ended June 30, 2026, the Company entered into two forward sales agreements pursuant to its "at-the-market" offering program ("ATM Program") to sell an aggregate of 392,462 common shares for initial gross proceeds of $23.4 million, or an average forward price of $59.70 per share, subject to adjustment upon settlement. The Company has the option to settle the outstanding common shares any time before the respective maturity of the forward sales agreements on May 27, 2027 and June 30, 2027, subject to customary closing conditions, for the initial gross proceeds as adjusted for payment of commissions and applicable dividends as well as a daily adjustment based on the overnight bank borrowing rate less a spread. As of June 30, 2026, the Company had unsettled forward sales agreements with total estimated net proceeds of $69.5 million, representing 1,189,884 common shares. New $1.6 Billion Credit Agreement On July 17, 2026, the Company entered into a Fifth Amended, Restated and Consolidated Credit Agreement (the "Amended Credit Agreement"), governing its $1.0 billion senior unsecured revolving credit facility and a new $600.0 million senior unsecured delayed draw term loan facility. The Amended Credit Agreement replaced the Company’s existing $1.0 billion senior unsecured revolving credit facility. The amendments to the unsecured revolving credit facility, among other things, (i) extend the maturity date from October 2, 2028 to July 17, 2030, with two six-month extension options, subject to the payment of additional fees and the satisfaction of customary conditions, (ii) generally reduce the interest rate payable on outstanding loans by 5 basis points, (iii) modify the asset value calculations under certain financial covenants to include the expected cash proceeds from the sale of common shares under qualified forward equity contracts and (iv) split the prior revolving facility’s $300.0 million foreign currency sublimit into a separate, stand-alone foreign currency revolving credit facility of the same size. The Amended Credit Agreement also established a new senior unsecured delayed draw term loan facility that, among other things, (i) provides for an initial committed amount of $600.0 million that may be drawn upon prior to January 17, 2027, subject to earlier termination, (ii) bears interest based on the Company’s credit ratings (SOFR plus 115 basis points at closing), (iii) carries a ticking fee of 0.25% per annum on undrawn commitments beginning on October 16, 2026, and (iv) matures on January 17, 2032. In addition, the Amended Credit Agreement includes a $1.0 billion accordion feature on the combined unsecured revolving credit and delayed draw term loan facilities that increases the maximum amount available under the combined facilities from $1.6 billion to $2.6 billion, at the Company’s election and subject to lender consent and customary conditions. Portfolio Update The Company's total assets were $6.1 billion (after accumulated depreciation of approximately $1.8 billion) and total investments (a non-GAAP financial measure) were $7.5 billion at June 30, 2026, with Experiential investments totaling $7.1 billion, or 95%, and Education investments totaling $0.4 billion, or 5%. The Company's Experiential portfolio (excluding property under development, undeveloped land inventory and two joint venture properties) consisted of the following property types (owned or financed) at June 30, 2026: 148 theatre properties; 61 eat & play properties (including seven theatres located in entertainment districts); 35 attraction properties; 11 ski properties; four experiential lodging properties; 30 fitness & wellness properties; one gaming property; and one cultural property. As of June 30, 2026, the Company's wholly-owned Experiential portfolio consisted of approximately 19.5 million square feet, was 99% leased or operated and included a total of $10.0 million in property under development and $20.2 million in undeveloped land inventory. The Company's Education portfolio consisted of the following property types (owned or financed) at June 30, 2026: 46 early childhood education center properties; and nine private school properties. As of June 30, 2026, the Company's wholly-owned Education portfolio consisted of approximately 1.1 million square feet and was 100% leased. The combined wholly-owned portfolio consisted of 20.6 million square feet and was 99% leased or operated. Dividend Information The Company's Board of Trustees declared its monthly cash dividend to common shareholders during the second quarter of 2026 totaling $0.93 per share. This dividend represents an annualized dividend of $3.72 per common share, an increase of 5.1% over the prior year's annualized dividend (based upon the monthly dividend at the end of the prior year). Additionally, the Company declared its regular quarterly dividends to preferred shareholders of $0.359375 per share on both the Company's 5.75% Series C cumulative convertible preferred shares and Series G cumulative redeemable preferred shares and $0.5625 per share on its 9.00% Series E cumulative convertible preferred shares, payable July 15, 2026 to shareholders of record as of June 30, 2026. 2026 Guidance (Dollars in millions, except per share data): The Company is increasing its 2026 earnings guidance for FFOAA per diluted common share to a range of $5.41 to $5.57 from a range of $5.37 to $5.53, representing an increase of 7.2% at the midpoint over 2025. The 2026 guidance for FFOAA per diluted common share is based on an FFO per diluted common share range of $5.43 to $5.59 adjusted for retirement and severance expense, transaction costs, provision (benefit) for credit losses, net, and deferred income tax expense. FFO per diluted common share for 2026 is based on a net income available to common shareholders per diluted common share range of $3.03 to $3.19 plus estimated real estate depreciation and amortization of $2.46 and allocated share of joint venture depreciation of $0.05, less estimated gain on real estate transactions of $0.02 and the impact of Series C and Series E dilution of $0.09 (in accordance with the NAREIT definition of FFO). Additional earnings guidance detail can be found on page 23 in the Company's supplemental information package available in the Investor Center of the Company's website located at https://investors.eprkc.com/financial-information/quarterly-results. Conference Call Information Management will host a conference call to discuss the Company's financial results on July 30, 2026 at 8:30 a.m. Eastern Time. The call may also include discussion of Company developments and forward-looking and other material information about business and financial matters. The conference will be webcast and can be accessed via the Webcasts page in the Investor Center on the Company's website located at https://investors.eprkc.com/events-presentations. It is recommended that you join 10 minutes prior to the start of the event (although you may register and join the webcast at any time during the call). You may watch a replay of the webcast by visiting the Webcasts page at https://investors.eprkc.com/events-presentations. Quarterly Supplemental The Company's supplemental information package for the second quarter and six months ended June 30, 2026 is available in the Investor Center on the Company's website located at https://investors.eprkc.com/financial-information/quarterly-results. Non-GAAP Financial Measures Funds From Operations (FFO), Funds From Operations As Adjusted (FFOAA) and Adjusted Funds From Operations (AFFO) The National Association of Real Estate Investment Trusts (NAREIT) developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. Pursuant to the definition of FFO by the Board of Governors of NAREIT, the Company calculates FFO as net income available to common shareholders, computed in accordance with GAAP, excluding gains and losses on real estate transactions and impairment losses on real estate, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships, joint ventures and other affiliates. Adjustments for unconsolidated partnerships, joint ventures and other affiliates are calculated to reflect FFO on the same basis. The Company has calculated FFO for all periods presented in accordance with this definition. In addition to FFO, the Company presents FFOAA and AFFO. FFOAA is presented by adding to FFO retirement and severance expense, transaction costs, provision (benefit) for credit losses, net, costs associated with loan refinancing or payoff, preferred share redemption costs and impairment of operating lease right-of-use assets and subtracting sale participation income, gain on insurance recovery and deferred income tax (benefit) expense. AFFO is presented by adding to FFOAA non-real estate depreciation and amortization, deferred financing fees amortization and share-based compensation expense to management and Trustees; and subtracting amortization of above and below market leases, net and tenant allowances, maintenance capital expenditures (including second-generation tenant improvements and leasing commissions), straight-lined rental revenue (removing the impact of straight-lined ground sublease expense), the non-cash portion of mortgage and other financing income and the allocated share of joint venture non-cash items. FFO, FFOAA and AFFO are widely used measures of the operating performance of real estate companies and are provided here as supplemental measures to GAAP net income available to common shareholders and earnings per share, and management provides FFO, FFOAA and AFFO herein because it believes this information is useful to investors in this regard. FFO, FFOAA and AFFO are non-GAAP financial measures. FFO, FFOAA and AFFO do not represent cash flows from operations as defined by GAAP and are not indicative that cash flows are adequate to fund all cash needs and are not to be considered alternatives to net income or any other GAAP measure as a measurement of the results of our operations or our cash flows or liquidity as defined by GAAP. It should also be noted that not all REITs calculate FFO, FFOAA and AFFO the same way so comparisons with other REITs may not be meaningful. The following table summarizes FFO, FFOAA and AFFO, including per share amounts for the three and six months ended June 30, 2026 and 2025, respectively, and reconciles such measures to net income available to common shareholders, the most directly comparable GAAP measure: The conversion of the 5.75% Series C cumulative convertible preferred shares and the 9.00% Series E cumulative convertible preferred shares would be dilutive to FFO, FFOAA and AFFO per share for the three and six months ended June 30, 2026 and 2025. Therefore, the additional common shares that would result from the conversion and the corresponding add-back of the preferred dividends declared on those shares are included in the calculation of diluted FFO, FFOAA and AFFO per share for those periods. Net Debt and Proforma Net Debt Net Debt represents debt (reported in accordance with GAAP) adjusted to exclude deferred financing costs, net and reduced for cash and cash equivalents. By excluding deferred financing costs, net, and reducing debt for cash and cash equivalents on hand, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. Proforma Net Debt is presented by subtracting the estimated net proceeds from forward sales agreements under the Company's ATM Program from Net Debt. The Company believes both of these calculations constitute beneficial supplemental non-GAAP financial disclosures to investors in understanding our financial condition. The Company's method of calculating Net Debt and Proforma Net Debt may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Gross Assets Gross Assets represents total assets (reported in accordance with GAAP) adjusted to exclude accumulated depreciation and reduced by cash and cash equivalents. By excluding accumulated depreciation and reducing cash and cash equivalents, the result provides an estimate of the investment made by the Company. The Company believes that investors commonly use versions of this calculation in a similar manner. The Company's method of calculating Gross Assets may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Net Debt to Gross Assets Ratio and Proforma Net Debt to Gross Assets Ratio Net Debt to Gross Assets Ratio and Proforma Net Debt to Gross Assets Ratio are supplemental measures derived from non-GAAP financial measures that the Company uses to evaluate capital structure and the magnitude of debt to gross assets. The Company believes that investors commonly use versions of these ratios in similar manners. The Company's method of calculating the Net Debt to Gross Assets Ratio and Proforma Net Debt to Gross Assets Ratio may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDAre NAREIT developed EBITDAre as a relative non-GAAP financial measure of REITs, independent of a company's capital structure, to provide a uniform basis to measure the enterprise value of a company. Pursuant to the definition of EBITDAre by the Board of Governors of NAREIT, the Company calculates EBITDAre as net income, computed in accordance with GAAP, excluding interest expense (net), income tax (benefit) expense, depreciation and amortization, gains and losses on real estate transactions, impairment losses on real estate, costs associated with loan refinancing or payoff and adjustments for unconsolidated partnerships, joint ventures and other affiliates. Management provides EBITDAre herein because it believes this information is useful to investors as a supplemental performance measure because it can help facilitate comparisons of operating performance between periods and with other REITs. The Company's method of calculating EBITDAre may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDAre is not a measure of performance under GAAP, does not represent cash generated from operations as defined by GAAP and is not indicative of cash available to fund all cash needs, including distributions. This measure should not be considered an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations or cash flows or liquidity as defined by GAAP. Adjusted EBITDAre Management uses Adjusted EBITDAre in its analysis of the performance of the business and operations of the Company. Management believes Adjusted EBITDAre is useful to investors because it excludes various items that management believes are not indicative of operating performance, and because it is an informative measure to use in computing various financial ratios to evaluate the Company. The Company defines Adjusted EBITDAre as EBITDAre (defined above) for the quarter excluding sale participation income, gain on insurance recovery, retirement and severance expense, transaction costs, provision (benefit) for credit losses, net, impairment losses on operating lease right-of-use assets and prepayment fees. The Company's method of calculating Adjusted EBITDAre may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Adjusted EBITDAre is not a measure of performance under GAAP, does not represent cash generated from operations as defined by GAAP and is not indicative of cash available to fund all cash needs, including distributions. This measure should not be considered as an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations or cash flows or liquidity as defined by GAAP. Net Debt to Adjusted EBITDAre Ratio and Proforma Net Debt to Adjusted EBITDAre Ratio Net Debt to Adjusted EBITDAre Ratio and Proforma Net Debt to Adjusted EBITDAre Ratio are supplemental measures derived from non-GAAP financial measures that the Company uses to evaluate our capital structure and the magnitude of our debt against our operating performance. The Company believes that investors commonly use versions of these ratios in similar manners. In addition, financial institutions use versions of these ratios in connection with debt agreements to set pricing and covenant limitations. The Company's method of calculating the Net Debt to Adjusted EBITDAre Ratio and Proforma Net Debt to Adjusted EBITDAre Ratio may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Reconciliations of debt, total assets and net income (all reported in accordance with GAAP) to Net Debt, Proforma Net Debt, Gross Assets, Net Debt to Gross Assets Ratio, Proforma Net Debt to Gross Assets Ratio, EBITDAre, Adjusted EBITDAre, Net Debt to Adjusted EBITDAre Ratio and Proforma Net Debt to Adjusted EBITDAre Ratio (each of which is a non-GAAP financial measure), as applicable, are included in the following tables (unaudited, in thousands except ratios): Total Investments Total investments is a non-GAAP financial measure defined as the sum of the carrying values of real estate investments (before accumulated depreciation), land held for development, property under development, mortgage notes receivable and related accrued interest receivable, net, investment in joint ventures, intangible assets, gross (before accumulated amortization and included in other assets) and notes receivable and related accrued interest receivable, net (included in other assets). Total investments is a useful measure for management and investors as it illustrates across which asset categories the Company's funds have been invested. Our method of calculating total investments may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. A reconciliation of total assets (computed in accordance with GAAP) to total investments is included in the following table (unaudited, in thousands): About EPR Properties EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $6.1 billion (after accumulated depreciation of approximately $1.8 billion) across 43 states and Canada. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns. Further information is available at www.eprkc.com. CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Quarterly Report on Form 10-Q is filed. With the exception of historical information, certain statements contained or incorporated by reference herein may contain 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"), such as those pertaining to our guidance, our capital resources and liquidity, our pursuit of growth opportunities, the timing of transaction closings and investment spending, our ongoing negotiations to exit from certain joint ventures or the ultimate terms of any such exit, our expected cash flows, the performance of our customers, our expected cash collections and our results of operations and financial condition. The forward-looking statements presented herein are based on the Company's current expectations. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of actual events. There is no assurance that the events or circumstances reflected in the forward-looking statements will occur. You can identify forward-looking statements by use of words such as "will be," "intend," "continue," "believe," "may," "expect," "hope," "anticipate," "goal," "forecast," "pipeline," "estimates," "offers," "plans," "would" or other similar expressions or other comparable terms or discussions of strategy, plans or intentions contained or incorporated by reference herein. Forward-looking statements necessarily are dependent on assumptions, data or methods that may be incorrect or imprecise. These forward-looking statements represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Many of the factors that will determine these items are beyond our ability to control or predict. For further discussion of these factors see "Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K and, to the extent applicable, our Quarterly Reports on Form 10-Q. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date hereof or the date of any document incorporated by reference herein. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except as required by law, we do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances after the date hereof. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729932004/en/ Contacts EPR Properties Brian Moriarty, 816-472-1700 www.eprkc.com

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. EPR Properties has delivered a 60.5% total return over the past 5 years, yet its broader valuation checks still lean toward the stock being priced attractively rather than fully bid up. Over 5 years, a 60.5% return signals that EPR Properties has already rewarded patient shareholders while still inviting questions about how much value is left on the table. Recent optimism around box office performance and capital deployment can support sentiment on the asset base and income stream. However, any setback in cinema attendance or cash flow visibility may quickly weigh on how much investors are willing to pay. On Simply Wall St's valuation checks, EPR Properties screens as undervalued in 5 of 6 areas, which points to the broader metrics leaning cheap rather than expensive. The issue now is whether that combination of strong long term returns and a generally favorable valuation read still leaves a comfortable margin of safety in EPR Properties at around US$59.84. EPR Properties delivered 9.1% returns over the last year. See how this stacks up to the rest of the Specialized REITs industry. The P/E ratio is a straightforward way to think about what you are paying for each dollar of EPR Properties earnings. At around 18.5x, EPR Properties trades a little above the Specialized REITs industry average of about 16.3x, but slightly below the peer group average of roughly 20.1x. That places the stock in the middle of the pack, suggesting investors are not paying an extreme premium or discount relative to similar REITs on this simple earnings measure. Citizens recently upgraded EPR Properties on box office strength. However, the current P/E still sits well under a more tailored fair P/E estimate of about 35.0x, which is based on the company profile and sector characteristics. The gap between the current 18.5x and this higher fair multiple points to the market applying a more cautious earnings multiple than the model implies. On the P/E measure, EPR Properties stock currently appears undervalued relative to the fair multiple suggested by its fundamentals and sector profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives take the valuation puzzle around EPR Properties and spell out which expectations on future growth, margins and earnings would need to hold for the stock to be worth meaningfully more or less than today's price, and they sit on Simply Wall St's Community page. Instead of relying on a single multiple or model output, each one sets out the assumptions that drive its view of fair value so you can track those against results as they are reported. If you have a number driven view on whether EPR Properties' box office strength and capital deployment ultimately justify today's price, be one of the first voices in the Simply Wall St community to set out a clear narrative. Share the key assumptions you think matter most for EPR Properties and track how your thesis holds up as fresh results and updates come through. Do you think there's more to the story for EPR Properties? Head over to our Community to see what others are saying! EPR Properties currently screens as undervalued on market multiples, with the P/E sitting below a tailored fair multiple and broader checks pointing in the same direction. For investors, the real question is whether the market is being too cautious about the durability of cinema related cash flows and future capital deployment. The central issue from here is whether box office trends and income visibility stay solid enough for that discount to close, or whether the current gap simply reflects a lasting risk premium on the stock. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EPR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in EPR Properties? Here are five stocks we like better. EPR Properties reported stronger first-quarter results, with FFO as adjusted rising to $1.26 per share and AFFO up to $1.29 per share, while revenue increased to $181.3 million. The company raised its 2026 investment spending guidance to $500 million-$600 million after completing a major $315 million Six Flags portfolio acquisition, which EPR says is its largest post-COVID deal. EPR also lifted its 2026 FFO guidance to $5.37-$5.53 per share and increased its monthly dividend by 5.1%, citing a healthy, 99% leased portfolio and strong balance sheet support. Look To REITs For Reliable Yield Even In Recessionary Environment EPR Properties (NYSE:EPR) reported higher first-quarter funds from operations and raised its 2026 guidance, citing accelerated investment activity, stable portfolio performance and continued consumer demand for experiential real estate. Chairman and CEO Greg Silvers said the company delivered a 5.9% increase in FFO as adjusted per share compared with the prior year and has “established strong momentum” as it increases investment spending. He highlighted EPR’s recently announced $315 million acquisition of a seven-park regional portfolio from Six Flags as the company’s largest acquisition in the post-COVID period. → Wells Fargo’s Comeback Is Real—But Not Risk-Free The portfolio includes more than 1,600 acres across six states and Canada, 418 attractions and parks that draw approximately 4.5 million visitors annually, according to Silvers. The U.S. parks will be operated by Enchanted Parks, while La Ronde in Montreal will be operated by La Ronde Operations. “These parks have become staples in their communities and have established multi-generational patronage by delivering fun, excitement, and lasting memories,” Silvers said. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Mark Peterson, executive vice president, CFO and treasurer, said FFO as adjusted was $1.26 per share for the quarter, up from $1.19 a year earlier. AFFO was $1.29 per share, compared with $1.21 in the prior-year period, an increase of 6.6%. Total revenue was $181.3 million, up from $175 million a year earlier. Peterson said the increase was mostly due to investment spending, as well as rent and interest escalations. Those gains were partially offset by dispositions and lower percentage rents and participating interest, which totaled $2.5 million in the quarter versus $5.1 million a year earlier. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom Peterson also noted that EPR exercised a purchase option during the quarter to convert a $70 million mortgage note receivable secured by an experiential lodging property into a wholly owned rental property subject to a long-term triple-net lease. He said the conversion produced a $1 million gain on real estate transactions and a $1.3 million benefit for credit losses. Interest expense, net, increased by $1.7 million due to higher average borrowings and lower capitalized interest compared with the prior year. Ben Fox, executive vice president and chief investment officer, said EPR completed $51.3 million of investments in the first quarter, including the previously announced acquisition of a VITAL Climbing Gym on Manhattan’s Lower East Side and committed development capital. After quarter-end, EPR completed the acquisition of six properties from Six Flags Entertainment, representing the substantial majority of the seven-property transaction. Fox said the remaining property, La Ronde in Canada, is expected to close in the second quarter. EPR increased its 2026 investment spending guidance to a range of $500 million to $600 million, up from $400 million to $500 million. Fox said the revised range represents the company’s highest investment expectation since COVID and reflects opportunities across its verticals. He said investment activity in 2026 is expected to be weighted more toward acquisitions than development. Fox also said EPR expects approximately $71 million in additional investment for existing experiential development and redevelopment projects as of March 31, with substantially all of that expected to fund over the remainder of the year. At the end of the quarter, EPR’s portfolio represented $7.1 billion of gross investment value and included 335 properties that were 99% leased or operated. Fox said 94% of that value was tied to experiential assets, consisting of 280 properties operated by 54 clients. The remaining 6% was in the education segment, made up of 55 properties leased by five operators and 100% leased. Fox said the portfolio remained “very healthy,” with two times unit-level rent coverage. He attributed that coverage to portfolio diversification, resilient consumer spending patterns and continued prioritization of experiences. Within the theater segment, Fox said North American box office gross rose 25% in the first quarter, benefiting from both increased attendance and more film releases. He also pointed to studio commitments to theatrical windows, including Amazon MGM’s commitment to 15 theatrical releases in 2027 with a standard 45-day window, Universal’s move to a window of at least 45 days and Netflix’s planned theatrical window for the upcoming release of “Narnia.” In the Eat and Play segment, operators performed in line with the prior year, with some attendance volatility offset by higher average spending per visit. Fox said EPR’s ski portfolio benefited from geographic diversification, with outperformance in Mid-Atlantic and East Coast properties offsetting poor snowfall in the Western United States. Fitness and wellness continued to deliver solid performance, while education coverage remained strong. Peterson said EPR’s balance sheet remains positioned to support growth. At quarter-end, the company had consolidated debt of $2.9 billion, all of which was either fixed-rate debt or debt fixed through interest rate swaps, with an overall blended coupon of approximately 4.4%. The company had $68.5 million of cash on hand and no balance drawn on its $1 billion revolver. Pro forma net debt to annualized adjusted EBITDARE was 4.8 times, below EPR’s targeted range of five to 5.6 times, while fixed charge coverage was 3.3 times. In March, EPR entered into a forward sales agreement under its at-the-market program to sell 797,422 common shares for initial gross proceeds of $47.5 million, or an average sale price of $59.52 per share. Peterson said the company had not settled any of those shares as of the call. EPR also increased its monthly common dividend by 5.1% to an annualized $3.72 per share, beginning with the dividend payable April 15 to shareholders of record as of March 31. Peterson said the company expects the 2026 dividend to be well covered, with an AFFO payout ratio below 70% based on the midpoint of guidance. EPR raised its 2026 FFO as adjusted guidance to a range of $5.37 to $5.53 per share, up from $5.28 to $5.48. Peterson said the new midpoint represents 6.5% growth versus the prior year, and the company expects a similar percentage increase in AFFO per share. The company also increased its disposition proceeds guidance to $50 million to $100 million, from $25 million to $75 million. Fox said dispositions aimed at proactive risk management will remain part of EPR’s strategy, but the near-term emphasis will be on generating accretive proceeds through sales of non-core assets. During the question-and-answer session, Peterson said the guidance increase reflected a slightly better first quarter, the impact of higher investment spending, the timing and economics of remaining investments, and the conversion of the Margaritaville-related mortgage note into a lease. Asked about convertible mortgage structures, Fox said more than 80% of EPR’s mortgage book is convertible and described the Margaritaville transaction as representative of the company’s approach, calling such mortgages “pathways to real estate ownership.” Silvers said macro uncertainty and capital market volatility have generated inbound interest from potential counterparties seeking to de-risk. He also said EPR continues to see opportunities across attractions, fitness, Eat and Play and other experiential categories, while maintaining its strategic goal of increasing portfolio diversity. EPR Properties is a real estate investment trust that specializes in experiential properties across the United States, Canada and select international markets. Established in 1997 and headquartered in Kansas City, Missouri, the company targets properties in the entertainment, recreation and education sectors. Its portfolio includes movie theaters, ski resorts, family entertainment centers, charter schools and other venues that benefit from consumer-driven experiences. The trust employs long-term, triple-net lease agreements, where tenants are responsible for real estate taxes, insurance and maintenance. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "EPR Properties Q1 Earnings Call Highlights" was originally published by MarketBeat. 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