Core Viewpoint - The REIT sector has underperformed since the Federal Reserve began raising interest rates in 2022, with a total return of -21.53%, while the S&P 500 has returned 19.24% during the same period [1][2] Group 1: REIT Sector Performance - Despite the overall poor performance, many REITs show strong fundamentals, including high occupancy levels, solid balance sheets, and growing rents [2] - Few REITs have cut dividends, and those that have are positioned for growth, making the sector opportunistic for capital allocation [2] Group 2: W. P. Carey (WPC) - WPC is a diversified triple net lease REIT with significant exposure to the U.S. and Europe, featuring a 99.1% occupancy rate and a weighted average lease term of 12.2 years [3] - 54% of its rent is linked to CPI, providing resilience in high-inflation environments, and it has a BBB+ credit rating with $2.8 billion in liquidity [3] - WPC trades at a 6.3% forward dividend yield and a low price-to-AFFO ratio of 11.66 times, indicating a margin of safety [3] Group 3: EPR Properties (EPR) - EPR has a higher risk profile with 37% of its portfolio in theaters but is diversifying by selling assets and investing in other types [4][5] - It offers an 8.3% dividend yield and trades at an 18% discount to NAV, with a price-to-AFFO ratio of 8.46 times [4][6] - EPR's portfolio has a 99% occupancy rate and a 12-year weighted average lease term, with a well-covered dividend payout ratio of 75% [5][6] Group 4: Realty Income (O) - Realty Income focuses on essential retail properties and has a long track record of dividend growth, with a 4.3% CAGR over 30 years [7] - It has a 6% dividend yield and is positioned to deliver an 8% annualized total return, with potential for higher returns through growth [7] - Realty Income trades at a 12.55 times price-to-AFFO multiple, significantly lower than its historical averages, and has a strong credit rating of A- [7] Group 5: Investor Takeaway - The REIT sector presents significant opportunities due to attractive valuations and strong fundamentals [8] - W. P. Carey is favored for its balanced risk-return profile, while EPR Properties is suitable for aggressive investors, and Realty Income is ideal for retirees seeking safety and yield [8]

| --- | --- | --- | |------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...

Group 1: Realty Income - Realty Income is known as "The Monthly Dividend Company" and has a diversified portfolio of properties leased to tenants across various industries [1] - The stock has decreased by 12% over the past year, resulting in a dividend yield of 5.8%, which is significantly higher than the market average of 1.35% [2] - Approximately 90% of Realty Income's rent comes from tenants with resilient businesses, with 73% of its portfolio leased to companies in nondiscretionary and service-oriented retail [3] Group 2: EPR Properties - EPR Properties aims to diversify its portfolio to reduce reliance on the movie theater segment, which contributed 37% of its annualized adjusted earnings in Q1 2024, down from 41% in Q1 2023 [5] - The company plans to invest an additional $220 million over the next two years to further diversify its holdings [5] - EPR Properties has faced challenges due to the pandemic but has recently reinstated its dividend at a lower level, currently yielding 8.1% [10] Group 3: Dividend Investment Appeal - Reliable monthly dividend payouts are attractive to investors, providing both share price appreciation and regular distributions [6] - Companies with sustainable dividends and potential for growth are recommended for investors' portfolios [7] - Both Realty Income and EPR Properties offer reliable monthly dividends, appealing to investors seeking income rather than rapid share price growth [11]

Triple net lease REIT EPR Properties (NYSE:EPR) generates consistent cash flow from its experiential facilities in the leisure market. The REIT owns a diversified portfolio of entertainment properties, which is benefiting greatly from an intact growth trend in the U.S. economy and associated strength in leisure spending. EPR Properties is looking to grow its FFO on a full-year basis and raised its dividend by 3.6% at the end of April, which increases the appeal for dividend growth investors. Although the RE ...

Misconception #4: I can earn 20%+ returns with rental properties How many rental property investors can match that? Chart 1: Cambridge Associates Return Comparison 14 11.07 11.22 .63 10.66 56 12 10.4 10) 10.5 33 10 7.16 6.76 Total Return per Year 8 6 4.08 4 .05 2 0.61 0 -0.74 Private Equity Real Estate -4 = Listed Equity REITs -3-39 -3.90 3.9 -4-24 = Difference (Private minus Listed) -6 1-yr 5-yr 10-yr 20-yr 3.yr 15-yr 25-yr Some of you might, but most of you are likely just miscalculating returns in two wa ...

Core Insights - The article discusses the top-performing stocks and funds based on yield and price upside potential, highlighting actionable investment opportunities in various sectors [2][5][8]. Yield Performance - The top yielders include YieldMax META Option Income Strategy (FBY) with a yield of 24.40%, followed by Eagle Point Credit Co Inc (ECC) at 18.99% and Financial 15 Split Corp (FTN.TO) at 18.37% [2][3][7]. - Other notable high-yield stocks include abrdn Income Credit Strategies (ACP) at 17.75%, TriplePoint Venture Growth BDC (TPVG) at 17.74%, and Oxford Lane Capital Corp (OXLC) at 17.68% [2][6][9]. Price Upside Potential - The top stocks with significant price upside potential include TotalEnergies SE (TTE) with a projected upside of 21.16%, Chevron Corp (CVX) at 20.14%, and Ready Capital Corp (RC) at 18.64% [5][6][9]. - Franklin Resources Inc (BEN) is expected to have a price increase of 16.35%, while Pfizer Inc (PFE) is projected to rise by 15.87% [5][6][9]. Sector Representation - The top yielders are diversified across multiple sectors, including financials, energy, and real estate, indicating a broad range of investment opportunities [2][3][4]. - The analysis includes closed-end investment companies and ETFs, showcasing a mix of traditional and alternative investment vehicles [2][3][4]. Analyst Predictions - Analysts predict that the five lowest-priced stocks among the top yielders could deliver higher net gains compared to a broader selection of stocks, with Orchid Island Capital projected to yield the highest net gain of 28.47% [11][12][14]. - The article emphasizes the importance of analyst targets in assessing market sentiment and potential upside for investors [8][14][15].

Core Viewpoint - EPR Properties is a specialized REIT focusing on experiential properties, with a strategic shift away from education towards the experiential economy, which is expected to thrive as younger generations favor experiences over material goods [1] Portfolio Overview - EPR Properties holds a total of 358 properties, with 288 classified under experiential categories and 70 in education [2] - Theatres account for 37% of the portfolio, while eat & play concepts, attractions, and ski resorts are areas targeted for growth [2] - The company aims to reduce its exposure to the theatre segment, which has seen a decline from 41% to 37% in 2023 [12] Financial Performance - The theatre segment has shown signs of recovery, with box office revenue increasing by nearly 30% year-over-year to $8.9 billion, although still 22% below 2019 levels [12] - Rent coverage for theatres has improved to 1.7x, matching pre-COVID levels, indicating a stabilization in cash flows [12] - The stock is currently undervalued at 8.2x forward FFO, with an implied cap rate of 8.6%, suggesting potential for significant upside [14] Investment Recommendations - Preferred shares, particularly Series C, are recommended due to their high 7% dividend yield and lower risk compared to common shares [4][20] - The company is expected to maintain stable cash flows, supported by a reasonable payout ratio of 70%, ensuring dividend sustainability [19] Market Outlook - The movie theatre sector is anticipated to continue recovering, bolstered by major film releases and investments from companies like Apple and Amazon [13] - Despite a slow start in Q1 2024, box office revenue is projected to reach $8-8.4 billion for the year, sufficient to support rent coverage [13] - The market has overly discounted the theatre segment, creating a buying opportunity as fears of obsolescence are deemed exaggerated [11][20]

Income investors should focus on a REIT's ability to grow its dividend. Real estate investment trusts (REITs) can be great investments for those seeking to generate passive income. Most REITs offer dividend yields well above the S&P 500's average of 1.3% (the sector average is over 4%). Many REITs offer even bigger income streams. EPR Properties (EPR -0.47%) and W. P. Carey (WPC -0.32%) currently yield more than 6%. They should be able to sustain and grow those big-time payouts, making them great REITs to b ...

Company Overview - EPR Properties is a net lease REIT focusing on experiential properties such as movie theaters, ski resorts, and entertainment venues like Topgolf and Six Flags [3][4] - The company reported that theater rent coverage levels have returned to pre-COVID levels, while the non-theater portfolio is performing 30% better than in 2019 [3][4] Economic Resilience - Historical data indicates that the theater business tends to outperform during recessions, as consumers seek escapism through movies [5][6] - Other experiential properties, such as ski resorts and amusement parks, also perform well during economic downturns as families opt for staycations [6][7] Acquisition Strategy - The company is being selective in acquisitions due to a high cost of capital environment, focusing on durable assets with long-term leases [8][10] - EPR Properties typically engages in deals ranging from $50 million to $100 million and seeks to establish relationships for future investment opportunities [10] Movie Theater Business - EPR Properties owns some of the most productive theaters in the U.S., representing 3% of theaters but capturing 8% of the box office [11][19] - The average food and beverage spend per patron in theaters has increased from $4.50 to nearly $7.75, contributing to higher margins [16][17] - The company anticipates a box office recovery, projecting revenues to match or exceed pre-COVID levels as the industry rebounds [20][42] Diversification and Future Plans - EPR Properties plans to diversify its portfolio by potentially selling theater assets while maintaining a focus on experiential properties [21][42] - The company is exploring growth opportunities in the eat & play segment, which includes venues like Topgolf and Andretti Karting, with average spending around $40 per person [22][24] Financial Health - The company maintains a conservative debt-to-EBITDA ratio in the low 5s and has regained its investment-grade rating post-COVID [34][36] - EPR Properties has a strong cash position, allowing for $200 million to $300 million in annual investments without needing to access capital markets [36][37] Seasonal Operations - The ski and water park segments are less impacted by seasonality due to fixed income streams from leases, although weather can affect water park attendance [31][32] - The introduction of season passes has stabilized revenue for ski resorts, allowing for predictable performance metrics [31] Market Position and Valuation - EPR Properties is currently trading at a discount compared to competitors, with a focus on improving stock valuation through strategic asset management [41][42] - The company believes there is significant potential for value creation as the market for theaters recovers and diversifies [44][50]

EPR Properties (NYSE:EPR) Nareit REIT Week: 2024 Investor Conference Call June 5, 2024 3:30 PM ET Company Participants Greg Silvers - Chairman, President & Chief Executive Officer Greg Zimmerman - Chief Investment Officer Mark Peterson - Chief Financial Officer Conference Call Participants Rob Stevenson - Janney Montgomery Scott Rob Stevenson Good afternoon, everyone. My name is Rob Stevenson. I run the real estate equity research team at Janney Montgomery Scott. This is the 3:30 session with experiential t ...