Group 1 - The company EPR Properties has transitioned its portfolio from theaters to experiential assets, which has led to a bullish outlook on its performance [1] - The analyst expresses a long-term investment strategy focused on quality blue-chip stocks, BDCs, and REITs, aiming to supplement retirement income through dividends [2] - The article emphasizes the importance of individual due diligence in investment decisions, highlighting that the views expressed are personal opinions and not financial advice [3] Group 2 - The article does not provide specific financial metrics or performance data related to EPR Properties or the broader industry [4] - There is no mention of any recent news events or market trends affecting the company or industry in the provided content [4]

Group 1 - The current era is characterized by an expectation for immediate gratification, particularly in the context of delivery services [1] - Companies like Amazon and Walmart are setting high standards for delivery speed, with expectations for two-day or even same-day shipping [1] Group 2 - There is a growing interest in investment strategies that focus on generating income without the need for selling assets [3] - The Income Method promoted by the company aims to provide strong returns, targeting a yield of 9-10% [3] - A month-long paid trial is being offered for $49, with an additional 5% discount available [3]

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Group 1: Passive Income through REITs - Investing in real estate investment trusts (REITs) with high dividend yields can generate significant passive income, with an example showing an investment of $11,250 yielding over $1,000 annually [1] - The selected REITs include AGNC Investment, Realty Income, Healthpeak Properties, and EPR Properties, all of which pay monthly dividends, making them suitable for regular income [1][13] Group 2: AGNC Investment - AGNC Investment is a mortgage REIT that invests in residential mortgage-backed securities (MBS) backed by government agencies, making it a low-risk investment [2] - The company employs leverage to enhance returns, with potential returns in the low 20% range, sufficient to cover dividends and operating expenses [4] - AGNC has a higher risk profile due to market condition fluctuations that could affect returns and dividend maintenance [5] Group 3: Realty Income - Realty Income is known for its reliability, having declared its 659th consecutive monthly dividend and increased payments for 110 straight quarters, with a 4.3% compound annual growth rate [6][8] - The REIT's diversified portfolio of net lease properties provides stable rental income, as tenants cover all operating expenses [7] Group 4: Healthpeak Properties - Healthpeak Properties focuses on healthcare real estate, owning outpatient medical, lab, and senior housing properties, benefiting from the aging U.S. population [9][10] - The company has a strong financial profile, allowing for new investments, with $500 million to $1 billion available for expansion [10] Group 5: EPR Properties - EPR Properties specializes in experiential real estate, including movie theaters and fitness venues, generating steady rental income through net leases [11] - The REIT plans to invest $200 million to $300 million annually in new properties, with projects lined up to drive 3% to 4% annual cash flow growth [12]

Core Insights - EPR Properties (EPR) is currently viewed as a more attractive investment option compared to Simon Property (SPG) for value investors seeking undervalued stocks [1][3][7] Valuation Metrics - EPR has a forward P/E ratio of 10.39, while SPG's forward P/E is 12.83, indicating EPR may be undervalued [5] - The PEG ratio for EPR is 3.82, compared to SPG's PEG ratio of 8.70, suggesting EPR has a better earnings growth outlook relative to its valuation [5] - EPR's P/B ratio stands at 1.72, significantly lower than SPG's P/B ratio of 17.58, further indicating EPR's relative undervaluation [6] Earnings Outlook - EPR is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Core Viewpoint - Investing in high-yielding dividend stocks, such as EPR Properties, can provide significant passive income opportunities due to their attractive dividend yields and stable cash flows [1][2]. Company Overview - EPR Properties is a real estate investment trust (REIT) focusing on experiential real estate, including movie theaters, eat-and-play venues, and fitness properties [4]. - The REIT currently offers a dividend yield close to 7%, which translates to nearly $350 of annual passive income from a $5,000 investment [2]. Financial Performance - EPR Properties expects to generate between $5 and $5.16 per share of funds from operations (FFO) in 2025, marking a 4.3% increase from the previous year [5]. - The company pays a monthly dividend of $0.295 per share, resulting in an annual payout of $3.54 and a dividend payout ratio of approximately 70% [5]. Investment Strategy - The REIT plans to invest between $200 million and $300 million in its portfolio this year, with $37.7 million already invested in the first quarter [9]. - Recent investments include a $14.3 million attraction property in New Jersey and various build-to-suit projects [9][10]. Asset Management - EPR Properties is strategically reducing its exposure to theater and educational sectors by selling properties, with plans to sell $80 million to $120 million worth of properties this year [11]. - The company has secured $148 million in experiential development and redevelopment projects to be funded over the next two years [10]. Growth Outlook - The current investment strategy is expected to support a 3% to 4% annual growth rate in FFO per share, which should align with a similar growth rate in dividends [12]. - If interest rates decline, the company may increase its investment rate, potentially accelerating growth [12]. Dividend Stability - EPR Properties' portfolio generates stable rental income, allowing for consistent monthly dividends and funding for portfolio expansion [13]. - The combination of stable cash flow, a conservative payout ratio, and a strong balance sheet underpins the REIT's high-yielding dividend [7].

Technical Analysis - EPR Properties has reached a key level of support and recently broke out above the 50-day moving average, indicating a short-term bullish trend [1] - The 50-day simple moving average is a significant indicator for traders and analysts to determine support or resistance levels, with its importance stemming from being the first marker of an up or down trend [1] Performance Metrics - EPR has moved 6.9% higher over the last four weeks, suggesting potential for further gains [2] - The company currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [2] Earnings Estimates - There have been three upward revisions in earnings estimates for the current fiscal year, with no downward revisions, leading to an improved consensus estimate [2] - The combination of positive earnings estimate revisions and favorable technical indicators suggests that EPR may experience additional gains in the near future [3]

Financial Data and Key Metrics Changes - The company's first quarter revenue increased by 4.7% year over year, reaching $175 million compared to $167.2 million in the prior year [6][28] - FFO as adjusted per share rose by 5.3% to $1.19 from $1.13 in the previous year, while AFFO increased by 8% to $1.21 from $1.12 [6][27] - The company is increasing its 2025 earnings guidance, with FFO as adjusted per share expected to range from $5.00 to $5.16, representing a 4.3% increase at the midpoint compared to the prior year [33][34] Business Line Data and Key Metrics Changes - The experiential portfolio comprises 276 properties, accounting for 94% of total investments, which are 99% leased or operated [11][12] - The education portfolio consists of 55 properties, which were 100% leased at the end of the quarter [11] - Percentage rents for the quarter increased to $3.3 million from $1.9 million in the prior year, primarily due to one early childhood education center tenant [29] Market Data and Key Metrics Changes - The North American box office for Q1 was $1.4 billion, down 11.6% year over year, largely due to the underperformance of "Snow White" [12] - However, Q2 box office through early May reached $1.1 billion, leading to a year-to-date increase of 17.1% compared to the same period in 2024 [13] - The company estimates the North American box office for 2025 will be between $9.3 billion and $9.7 billion [17] Company Strategy and Development Direction - The company is focusing on capital recycling, selling theater and education assets to reinvest in experiential properties [7][24] - New investments include a construction-themed attraction and a private golf club, reflecting the company's strategy to diversify its experiential portfolio [7][23] - The company aims to maintain disciplined investment spending, with a guidance range of $200 million to $300 million for 2025 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of experiential spending, noting that consumers often seek affordable entertainment options during economic downturns [10][37] - The company is closely monitoring potential tariffs impacting the film industry but believes that the current film slate for 2025 and 2026 is largely unaffected [37][89] - Management highlighted the ongoing strength in the box office and the importance of a robust film slate for future growth [16][86] Other Important Information - The company sold 10 leased early education centers, generating net proceeds of $70.8 million and recognizing a gain of $9.4 million [25] - The company has a strong liquidity position with $20.6 million in cash and $105 million drawn on its $1 billion revolving credit facility [33] - The common dividend was increased by 3.5% to $3.54 per share annualized, expected to be well covered with an AFFO payout ratio of 71% [35] Q&A Session Summary Question: Can you provide more details on the golf investment? - Management indicated that the golf investment is in a private club with reliable income flow and opportunities for growth due to scarcity in the market [44][46] Question: What is the nature of the buyers for recent dispositions? - Management noted a robust process with multiple bids from quality buyers, including a private fund specializing in education [47][49] Question: How do you see the strength of consumers today? - Management observed resilience in consumer spending, particularly in experiential activities, despite some pressure on food spending [100][102]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION EPR PROPERTIES FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Washington, D.C. 20549 Maryland 43-1790877 (State or other jurisdiction of incorporation or organization) For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission fi ...

Financial Data and Key Metrics Changes - The company's first quarter revenue increased by 4.7% year over year, reaching $175 million, compared to $167.2 million in the prior year [5][27] - FFO as adjusted per share rose by 5.3% to $1.19, up from $1.13 in the previous year, while AFFO increased by 8% to $1.21 from $1.12 [5][26] - The company is increasing its 2025 earnings guidance, with FFO as adjusted per share expected to range from $5.00 to $5.16, representing a 4.3% increase at the midpoint compared to the prior year [5][31] Business Line Data and Key Metrics Changes - The experiential portfolio comprises 276 properties, accounting for 94% of total investments, which are 99% leased or operated [10][6] - The education portfolio consists of 55 properties, which were 100% leased at the end of the quarter [10] - Investment spending for the quarter was $37.7 million, all directed towards the experiential portfolio [10][21] Market Data and Key Metrics Changes - The North American box office for Q1 was $1.4 billion, down 11.6% year over year, primarily due to the underperformance of "Snow White" [11] - However, Q2 box office through early May reached $1.1 billion, marking a 17.1% increase year to date compared to the same period in 2024 [12] - The company estimates the North American box office for 2025 will be between $9.3 billion and $9.7 billion [15] Company Strategy and Development Direction - The company is focusing on capital recycling, selling theater and education assets to reinvest in experiential properties [6][23] - New investments include a construction-themed attraction and a private golf club, reflecting the company's strategy to diversify its experiential portfolio [6][22] - The company aims to maintain disciplined investment spending, with a guidance range of $200 million to $300 million for 2025 [23][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term resilience of experiential spending, noting that such spending has consistently grown over the past 25 years [8] - The company highlighted the importance of a strong film slate for box office recovery, with 78 major studio releases anticipated in 2025 [14][78] - Management remains cautious about potential impacts from tariffs on development projects but noted that current pricing is locked in [82] Other Important Information - The company sold 10 leased early education centers, generating net proceeds of $70.8 million and recognizing a gain of $9.4 million [24] - The company has no vacant early childhood education centers and only three vacant theaters, two of which are under contract [25] - The common dividend was increased by 3.5% to $3.54 per share, expected to be well covered with an AFFO payout ratio of 71% [33] Q&A Session Summary Question: Can you provide more details on the golf investment? - Management indicated that the golf investment is in a private club, which offers reliable income flow due to the scarcity of golf courses [39][40] Question: What is the nature of the buyers for recent dispositions? - Management noted a robust process with multiple bids from quality buyers, including a private fund specializing in education [42] Question: How is the company addressing the potential impact of tariffs on development? - Management stated that current projects have locked-in pricing, but future discussions will consider the impact of tariffs on costs [82] Question: What is the outlook for consumer spending? - Management observed resilience in consumer spending, particularly in experiential sectors, despite some pressure on food spending [95][96]