Group 1 - REITs have experienced significant changes over the past three years, but investing in them now is expected to yield long-term benefits [1] - Many quality REITs are currently trading at attractive valuations, making them appealing investment opportunities [1] Group 2 - The article emphasizes the importance of conducting personal due diligence before making investment decisions [2] - The author aims to assist lower and middle-class workers in building investment portfolios focused on high-quality, dividend-paying companies [2]

Group 1 - REITs (XLRE) have experienced significant changes over the past three years, but investing in them now is expected to yield long-term benefits due to attractive valuations of many quality REITs [1] Group 2 - The article emphasizes the importance of conducting personal due diligence before making investment decisions, highlighting that the information provided is for educational purposes only [2] - The author expresses a personal investment strategy focused on dividend investing in quality blue-chip stocks, BDCs, and REITs, aiming to build a portfolio that supports retirement income [2] Group 3 - The author has a beneficial long position in VICI shares, indicating a personal investment interest in the company [3] - The article does not provide specific investment recommendations or advice, emphasizing that past performance does not guarantee future results [4]

Core Viewpoint - EPR Properties has announced a public offering of $550 million in Senior Notes with a 4.750% interest rate, maturing in 2030, with certain subsidiaries potentially guaranteeing the notes under specific conditions [1] Group 1: Offering Details - The public offering is priced at $550 million [1] - The Senior Notes will have an interest rate of 4.750% and are due in 2030 [1] - The offering is expected to close on November 13, 2025, pending customary closing conditions [1] Group 2: Guarantee Information - Initially, none of the Company's subsidiaries will guarantee the notes [1] - Certain domestic subsidiaries will be obligated to guarantee the notes under specific circumstances [1]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $182.3 million, reflecting a 1.0% increase from $180.5 million in the same period of 2024[132]. - Net income available to common shareholders per diluted share increased by 49.1% to $0.79 for the three months ended September 30, 2025, compared to $0.53 in 2024[132]. - Total revenue for the nine months ended September 30, 2025, reached $535.4 million, reflecting an increase of $14.6 million or 2.8% from $520.8 million in the prior year[144]. - The company recorded a net income of $66,586,000 for the three months ended September 30, 2025, compared to $46,650,000 in 2024, representing a significant increase of 42.7%[194]. - Funds From Operations (FFO) available to common shareholders for the nine months ended September 30, 2025, was $283,830,000, compared to $275,955,000 in 2024, reflecting an increase of approximately 2.5%[182]. - Adjusted Funds From Operations (AFFO) available to common shareholders for the nine months ended September 30, 2025, was $296,850,000, compared to $277,270,000 in 2024, indicating a growth of approximately 7.1%[182]. - For the three months ended September 30, 2025, diluted AFFO available to common shareholders of EPR Properties was $111,946,000, an increase from $103,185,000 in 2024, representing an increase of 8.5%[184]. - The FFO per common share (diluted) for the nine months ended September 30, 2025, was $3.67, compared to $3.60 in 2024, reflecting a growth of 1.9%[184]. Investment and Assets - As of September 30, 2025, total assets were approximately $5.5 billion, with total investments amounting to approximately $6.9 billion[125]. - The Experiential investment segment comprised $6.5 billion, or 94% of total investments, while the Education segment accounted for $0.4 billion, or 6%[125]. - The wholly-owned Experiential real estate portfolio consisted of approximately 18.5 million square feet and was 99% leased or operated as of September 30, 2025[126]. - The Education real estate portfolio was fully leased, comprising approximately 1.1 million square feet as of September 30, 2025[127]. - The total investments as of September 30, 2025, amounted to $6,916,120,000, up from $6,877,912,000 at the end of 2024, indicating an increase of 0.6%[195]. Revenue Breakdown - Minimum rent for the three months ended September 30, 2025, was $138.9 million, up $6.1 million or 4.6% from $132.8 million in 2024, driven by property acquisitions and developments[144]. - Percentage rent increased to $7.0 million for the three months ended September 30, 2025, a rise of $1.1 million or 18.5% compared to $5.9 million in 2024, primarily due to higher contributions from theatre tenants[148]. - Other income decreased to $12.1 million for the three months ended September 30, 2025, down $5.3 million or 30.3% from $17.4 million in 2024, mainly due to the sale of operating theatre properties[149]. Expenses and Costs - Property operating expenses for the three months ended September 30, 2025, were $14.5 million, a decrease of $0.1 million or 0.9% from $14.6 million in 2024[151]. - General and administrative expenses increased to $14.0 million for the three months ended September 30, 2025, up $2.1 million or 17.3% from $11.9 million in 2024, attributed to higher payroll and benefits costs[153]. - The company recorded retirement and severance expenses of $1.1 million related to the expected retirement of the Chief Investment Officer[141]. Debt and Liquidity - Total debt outstanding was $2.8 billion as of September 30, 2025, with 99% being unsecured[161]. - The company had $379.0 million outstanding under its $1.0 billion unsecured revolving credit facility, which bears interest at a floating rate of SOFR plus 1.05%[164]. - The company fully repaid $300 million of senior unsecured notes on April 1, 2025, using borrowings under its $1 billion senior unsecured revolving credit facility[176]. - The company anticipates that cash on hand, cash from operations, and available funds will provide adequate liquidity to meet financial commitments[175]. - The company aims to maintain a conservative capital structure, focusing on a low net debt to adjusted EBITDAre ratio[178]. - The debt to total assets ratio remained stable at 50% for both September 30, 2025, and 2024[194]. Development and Future Investments - Investment spending during the nine months ended September 30, 2025, totaled $140.8 million, down from $214.6 million in the same period of 2024[135]. - The company had 13 development projects with commitments totaling approximately $70.7 million, with $22.1 million expected to be funded in the remainder of 2025[173]. - The company expects to finance future investments through cash on hand, excess cash flow, and proceeds from asset dispositions[177]. Foreign Currency and Hedging - The company is exposed to foreign currency risk on its six Canadian properties, with rents received in Canadian dollars (CAD)[201]. - Six USD-CAD cross-currency swaps were entered into with a total fixed original notional value of $170.0 million CAD and $125.0 million USD, locking in an exchange rate of $1.35 CAD per USD on approximately $15.3 million annual CAD cash flows through December 2026[202]. - Two additional USD-CAD cross-currency swaps were established with a total fixed original notional value of $90.0 million CAD and $66.2 million USD, also locking in an exchange rate of $1.35 CAD per USD on approximately $8.1 million annual CAD cash flows through December 2026[203]. - A USD-CAD cross-currency swap with a notional value of $27.9 million CAD and $20.0 million USD was initiated, locking in an exchange rate of $1.246 CAD per USD on approximately $2.2 million annual CAD cash flows through September 2030[204]. - The company entered into two forward contracts with a fixed notional value of $200.0 million CAD and $142.8 million USD, with an exchange rate of approximately $1.40 CAD per USD, effective December 19, 2024[205]. - Changes in the fair value of foreign currency derivatives designated as net investment hedges are reported in AOCI as part of the cumulative translation adjustment[207].

Financial Data and Key Metrics Changes - FFO as adjusted per share increased by 5.4% to $1.37 compared to $1.30 in the prior year [22] - AFFO for the quarter was $1.39 per share, up 7.8% from $1.29 in the prior year [22] - Total revenue for the quarter was $182.3 million, an increase from $180.5 million in the prior year [23] - G&A expense increased to $14 million from $11.9 million in the prior year, primarily due to higher estimated incentive pay [24] Business Line Data and Key Metrics Changes - The experiential portfolio comprises 275 properties, accounting for 94% of total investments, and was 99% leased or operated [12] - Investment spending for the quarter was $54.5 million, entirely in experiential assets [17] - Percentage rents for the quarter were $7 million, up from $5.9 million in the prior year, primarily due to higher percentage rent from theater tenants [23] Market Data and Key Metrics Changes - Q3 box office revenue was $2.4 billion, down from $2.7 billion in Q3 2024 [12] - North American box office for calendar year 2025 is estimated between $9 billion and $9.2 billion, a 6% increase at the midpoint from 2024 [13] - EBITDARm across the attractions portfolio increased, driven by strong performance in Canadian assets [14] Company Strategy and Development Direction - The company is focused on a disciplined deployment strategy to expand its portfolio of experiential properties [6] - A Strategic Capital Recycling program is in place, targeting non-core theater dispositions and reinvestment in growth sectors [7] - The company is bullish on the fitness and wellness space, with plans to increase investment spending in this area [19] Management's Comments on Operating Environment and Future Outlook - Management anticipates a robust fourth quarter and expects 2025 to set a new post-COVID high [7] - The company has successfully navigated various economic cycles, emphasizing the resilience of experiential entertainment [8] - Management expressed confidence in capturing larger opportunities in 2026, supported by a strong balance sheet [11] Other Important Information - The company is increasing its 2025 disposition guidance to a range of $150 million to $160 million [21] - The company plans to finalize a new ATM equity program in Q4 to provide additional capital-raising options [28] Q&A Session Summary Question: Can you elaborate on the credit losses being reserved? - Management indicated a $6 million mortgage note was fully reserved due to macroeconomic conditions, with plans to control and sell related assets if necessary [35][36] Question: What are the larger investment opportunities anticipated for 2026? - Management noted they are comfortable with a potential $500 million investment spending without needing additional strategic capital recycling, indicating strong cash flow generation [40][41] Question: Can you provide details on the mortgage financing investment with Altea Active? - The investment is structured as a long-term mortgage, primarily for growth capital, and is expected to foster a long-term partnership [48] Question: Is there increased competition for deals in the acquisition landscape? - Management acknowledged competition exists but noted their unique asset class helps buffer against it, with stable cap rates observed [52][54] Question: What is the strategy for issuing equity through the ATM program? - The company plans to issue equity opportunistically based on market conditions, aiming to lower leverage while not being dependent on equity for growth [61][62]

Group 1 - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions and should consider disabling them [1]

Portfolio & Investment - Total portfolio investments stand at approximately $6.9 billion[11], spread across 330 properties[11] - Experiential portfolio accounts for roughly $6.5 billion, representing 94% of total investments[12] - Q3 investment spending reached $54.5 million[11], bringing the year-to-date total to $140.8 million[29] - The company anticipates disposition proceeds between $150 million and $160 million for 2025[33] Financial Performance - Total revenue for Q3 2025 was $182.3 million, a 1% increase compared to $180.5 million in Q3 2024[41] - Net income attributable to common shareholders for Q3 2025 increased by 49.3% to $60.6 million, compared to $40.6 million in Q3 2024[41] - For the nine months ended September 30, 2025, total revenue was $535.4 million, a 2.8% increase from $520.8 million in the same period of 2024[44] - Net income attributable to common shareholders for the nine months ended September 30, 2025, increased by 39.2% to $189.9 million, compared to $136.4 million in the same period of 2024[44] Guidance - The company revised its FFO as adjusted per share guidance to $5.05-$5.13[53] - Investment spending guidance remains between $225 million and $275 million[53]

Core Viewpoint - EPR Properties has shown a significant increase in stock value, rising approximately 31% since June 2024, indicating a positive market response to its perceived undervaluation at around $41 per share [1]. Summary by Relevant Sections - **Stock Performance** - The stock of EPR Properties increased by about 31% since the last analysis in June 2024 [1]. - **Investment Strategy** - The investment strategy focuses on strategic buying opportunities, particularly in dividend and value stocks, which has contributed to a strong performance rating on platforms like Tipranks.com [1]. - **Market Engagement** - The analyst has garnered a following of over 9,000 on Seeking Alpha, reflecting a robust engagement with the investment community [1].

Core Insights - EPR Properties (EPR) was previously considered undervalued at approximately $41 per share in June 2024, leading to a bullish outlook [1] - Since the last analysis, EPR's stock has increased by around 31% [1] Company Performance - The stock price appreciation reflects a positive market response to EPR's valuation [1] - The investment strategy employed focuses on strategic buying opportunities, particularly in dividend and value stocks [1] Analyst Background - The analyst has a strong track record with a near 5-star rating on Tipranks.com and over 9,000 followers on Seeking Alpha, indicating credibility in investment analysis [1]

Core Insights - EPR Properties reported revenue of $154.84 million for Q3 2025, a 4.1% increase year-over-year, but fell short of the Zacks Consensus Estimate of $157.24 million by 1.53% [1] - The company achieved an EPS of $1.39, which is a significant increase from $0.53 a year ago, and exceeded the consensus estimate of $1.32 by 5.3% [1] Revenue Breakdown - Rental revenue was $154.84 million, compared to the average estimate of $157.22 million, reflecting a year-over-year increase of 4.1% [4] - Mortgage and other financing income reached $15.33 million, slightly below the average estimate of $15.67 million, with a year-over-year increase of 6.4% [4] - Other income was reported at $12.14 million, which is lower than the estimated $13.04 million, showing a significant decline of 30.3% year-over-year [4] Stock Performance - EPR Properties' shares have decreased by 9.5% over the past month, contrasting with a 3.8% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]