This REIT is a smash hit for those seeking passive income. The movie industry is having a blockbuster year. Sales of theater tickets and related products such as popcorn and drinks are on track to top $10 billion this year. Theater revenue should grow over the next few years, driven by what looks like a strong slate of new movies. The theater industry's growing revenue could be your ticket to a big-time passive income stream. Many top theater operators lease their venues from landlords like EPR Properties ( ...

filo EPR Properties (NYSE:EPR) is a well-managed entertainment-focused real estate investment trust with a unique portfolio of experiential properties across the United States. EPR Properties easily covered its monthly dividend of $0.285 per share with funds from operations as adjusted in the second quarter and the trust reaffirmed its FFO forecast for 2024 FFO. I think that as long as the U.S. economy remains in good shape, EPR Properties is a compelling investment for passive income investors. The 7.3% di ...

Federal Reserve Policy - The Federal Reserve is expected to start cutting interest rates in September, shifting the focus from whether to how quickly and deeply the cuts will occur [1] - Historically, the Fed has cut rates quickly, often faster and steeper than market expectations, suggesting a potential for substantial cuts within the next year [1] Economic Implications - Rapid interest rate cuts by the Fed could indicate worsening economic conditions, particularly if unemployment continues to rise [2] - A quick rate cut could lead to a struggling stock market, with potential sell-offs exceeding 30% for major indexes, similar to past economic downturns [3] Investment Strategies - Investors face a dilemma regarding whether to sell off assets or to seek out relatively cheap investments, as a recession may be imminent [4] - The performance of large-cap growth stocks during past recessions has varied, with significant declines observed during the Dot-Com bust and the Great Financial Crisis [4] Valuation Considerations - Large-cap stocks currently trade at higher price/earnings ratios compared to historical averages, while small-cap and mid-cap stocks are trading below average [5] - Growth and value stocks are trading at similar P/E ratios as before the 2001 recession, indicating potential risks for growth stocks if a recession occurs [5][6] Historical Context - Historical patterns suggest that expensive stocks relative to their own histories are likely to experience the most significant declines during recessions [6] - Companies that performed well during the 2001 recession are being targeted for investment, particularly those with low valuations today [6] Specific Company Insights - Realty Income (O) has shown resilience during past downturns, with a strong business model and a history of dividend growth, although it currently trades at a higher valuation than in 2000 [7][10] - EPR Properties (EPR) has navigated challenges during the pandemic without increasing debt, positioning itself for potential growth as interest rates decline [14] - Annaly Capital (NLY) is viewed as a strong investment during recessions due to its focus on agency mortgage-backed securities, which perform well in market downturns [16][17] Conclusion - The combination of O, EPR, and NLY is expected to outperform during potential recessions, with NLY particularly positioned to thrive regardless of economic conditions [18][20] - Investors are encouraged to focus on low valuations for better long-term returns, adhering to the principle of buying low and selling high [20]

The Walmart logo is seen at one of its stores in Miami on May 2, 2024. With the Federal Reserve expected to cut interest rates in September, dividend-paying stocks could be set to outperform. That is because the dividend yields on these names will look more attractive compared to the returns offered by other income-generating assets, including bonds. Given the vast universe of companies paying dividends, it could be difficult for investors to select the right stocks. Investors may want to consider top analy ...

The real estate sector has underperformed the market in the rising-rate climate, but that could change very soon. The real estate sector has been one of the worst-performing parts of the stock market since the Federal Reserve started raising interest rates in 2022, but this has created some opportunities to add top-quality businesses to your portfolio at historically cheap valuations. Here are three in particular that are built to deliver excellent long-term returns that are worth a closer look right now. T ...

These dirt cheap stocks offer attractive dividend yields. The stock market has rallied sharply in the past year and has been routinely bumping up against new all-time highs. And that means stocks are starting to get pricey. The S&P 500 currently trades at about 24.5 times its earnings, which is above the sub-22.5 level it traded at one year ago. However, there are still some bargains out there if you know where to look. For example, many real estate investment trusts (REITs) are still incredibly cheap becau ...

Core Viewpoint - The article emphasizes the importance of stable and predictable dividends for dividend investors, while also highlighting the potential for price appreciation and the need to avoid high-risk investments [3][12]. Company Analysis FS KKR Capital - FS KKR Capital (NYSE:FSK) is the second largest Business Development Company (BDC) with a Net Asset Value (NAV) of approximately $6.7 billion, providing a safety net through diversification [4]. - FSK has underperformed the overall BDC market since 2020, trading about 17% below its NAV, presenting a potential opportunity for price convergence [4][5]. - The company has faced challenges due to elevated non-accruals, which negatively impacted Net Investment Income (NII) generation, compounded by high leverage [5]. - FSK's forward dividend yield is around 14.4%, with a more conservative yield of 12.9% when excluding supplemental dividends, indicating a safe yield with potential for price gains [5][6]. - Recent financial performance shows a decline in non-accruals, stable portfolio quality, and an increase in total investment income by $5 million, leading to an adjusted net investment income per share increase to $0.75 [7]. - The weighted average EBITDA of FSK's portfolio companies has grown by approximately 12% year-over-year, reaching $225 million, indicating strong underlying business performance [7]. - FSK has improved its balance sheet by reducing the debt-to-equity ratio to 1.09x, below the sector average of 1.16x, enhancing its financial stability [8]. EPR Properties - EPR Properties (NYSE:EPR) is a unique equity REIT focused on unconventional property types, with 93% of its assets in experiential real estate, including theaters and ski resorts [9]. - The company offers a dividend yield of 7.3%, one of the highest in the equity REIT sector, supported by a forward Price to Funds from Operations (P/FFO) ratio of 9.8x [9][10]. - EPR maintains a conservative AFFO payout ratio of 71%, ensuring cash flow stability and the ability to manage lease expirations effectively [10]. - The debt structure is well-managed, with minimal borrowings due before 2026, allowing EPR to avoid unfavorable debt repricing [11]. - Management plans to divest theater properties and reinvest proceeds into higher multiple segments, which could drive multiple expansion as interest rates decline [11].

Some REITs are better than others for those seeking a sustainable income stream. Real estate investment trusts (REITs) can be great income-producing investments. They tend to offer much higher dividend yields (4% on average these days compared to a sub-1.5% dividend yield on the S&P 500). Meanwhile, the best ones aim to consistently increase their payments. W.P. Carey (WPC 2.25%) and EPR Properties (EPR 1.95%) are ideal REITs for those seeking a sustainable and growing income stream. They're much better opt ...

Flashpop/DigitalVision via Getty Images Co-authored by Treading Softly. When you decide to give somebody a gift, you can often choose between two categories. The first category includes tangible items such as a book, a set of skis, or a television. The second category includes experiences such as an annual pass to your local zoo, free movie tickets, or a membership to a ski resort. When it comes to owning real estate, there are two major types of properties that can exist. There's the real estate that is ba ...

EPR Properties (EPR) reported $145.09 million in revenue for the quarter ended June 2024, representing a yearover-year decline of 4.5%. EPS of $1.20 for the same period compares to $0.10 a year ago. The reported revenue represents a surprise of +1.37% over the Zacks Consensus Estimate of $143.13 million. With the consensus EPS estimate being $1.21, the EPS surprise was -0.83%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...