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 ...

Alistair Berg Co-authored with Beyond Saving One thing I have learned over the years is that people love their charts. They will spend hundreds of hours staring at charts, trying to determine which patterns they can discern and attempt to define the future. That isn't me. Frankly, the whole exercise strikes me as a Rube Goldberg machine. Cartoonist Rube Goldberg was known to illustrate incredibly complex machines, where a simple task like flipping a switch is carried out through a long series of chain react ...

nd3000/iStock via Getty Images Co-authored by Treading Softly I've learned in life that there is one constant that exists, and that has never changed in my lifetime. I've seen people gain access to the Internet and be able to connect to people from around the globe within seconds. I've seen fax machines disappear. I've watched as we've gone from having carburetors on the top of our engines to intricate computer-controlled engine management systems. Even in my day-to-day life, people have gone from paper boo ...

Editor's note: Seeking Alpha is proud to welcome Cash Flow Venue as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access. Click here to find out more » Flashpop/DigitalVision via Getty Images Investment Thesis An ~8% dividend yield and 8.4x P/FFO ratio would often suggest liquidity issues (endangered dividend), inconsistent management decisions, or some major ...

mizoula/iStock Editorial via Getty Images I doubled my position in EPR Properties (NYSE:EPR) last month on the back of the experiential properties owner dipping to form a new 52-week low. This aggressive price action followed a consumer inflation release that disrupted the prior dovish timeline for Fed rate cuts in 2024. I remain bullish on EPR and also added a significant position in its 5.75% Series C convertible preferreds (NYSE:EPR.PR.C) to my portfolio. I last covered the ticker with a buy rating in Ma ...

The Good BrigadeEPR Properties (NYSE:EPR) is a real estate investment trust that saw some trouble in the aftermath of COVID. EPR 5Y Price History (Seeking Alpha)After reviewing both FY 2023 and Q1 2024 results, I have doubts that the problems of COVID linger. Moreover, with an 8%, growing yield, this seems like a rare opportunity. I am going to review the post-COVID business and explain why, even if the growth isn't very high, the current price makes this an easy buy. Financial History Over the past de ...

These two stocks have serious short-term headwinds, but don't ignore the long-term opportunities.The Dow Jones Industrial Average and S&P 500 aren't far from their all-time highs, but not all stocks are in the same boat. There are some that aren't getting much love from investors and are trading for significantly less than their peaks. Here are two in particular that have large growth opportunities in the years ahead and are mainly beaten down due to temporary headwinds.Smart moves and long-term tailwindsTh ...