EPR Properties(EPR) - 2025 Q2 - Quarterly Results

Financial Performance - Revenue for Q2 2025 was $178.068 million, a 2.3% increase from $173.095 million in Q2 2024[21] - Net income available to common shareholders increased to $69.603 million in Q2 2025, compared to $39.062 million in Q2 2024, representing a 78.3% growth[21] - Adjusted EBITDAre for Q2 2025 was $137.952 million, up from $135.676 million in Q2 2024, reflecting a 1.7% increase[21] - Total revenue for Q2 2025 was $178,068,000, an increase from $175,033,000 in Q1 2025, representing a growth of 1.2%[26] - Net income available to common shareholders for Q2 2025 was $69,603,000, up from $59,771,000 in Q1 2025, reflecting a growth of 16.4%[26] - Rental revenue increased to $150,351,000 in Q2 2025, compared to $146,359,000 in Q1 2025, marking a rise of 2.1%[26] - The company reported a net income available to common shareholders of $69,603,000 for Q2 2025, compared to $59,771,000 in Q1 2025, marking a 16.0% increase[28] - Net income for Q2 2025 is $75,643,000, up from $65,803,000 in Q1 2025 and a loss of $8,395,000 in Q4 2024[85] Assets and Liabilities - Total assets as of June 30, 2025, were $5.560 billion, a slight decrease from $5.645 billion in 2024[21] - Total assets as of Q2 2025 were $5,560,880,000, slightly up from $5,532,549,000 in Q1 2025, indicating a growth of 0.5%[25] - Total liabilities increased to $3,229,789,000 in Q2 2025 from $3,211,537,000 in Q1 2025, a rise of 0.6%[25] - The company reported a debt to total assets ratio of 50% for both Q2 2025 and Q2 2024, indicating stable leverage levels[21] - The company has principal payments due on unsecured senior notes totaling $629,597,000 in 2026 and $450,000,000 in 2027[32] - As of June 30, 2025, total debt amounted to $2,792,970, a decrease from $2,860,458 as of December 31, 2024, reflecting a reduction of approximately 2.4%[35] Debt and Leverage - Net debt as of June 30, 2025, was $2.796 billion, compared to $2.807 billion in 2024, indicating a reduction in leverage[21] - The net debt to total market capitalization ratio improved to 37% in Q2 2025 from 44% in Q2 2024[21] - The debt service coverage ratio for Q2 2025 is reported at 4.1, indicating strong capacity to cover debt obligations[42] - The interest coverage ratio stands at 3.9 for Q2 2025, demonstrating the company's ability to meet interest expenses comfortably[46] - The company maintains a total unencumbered assets ratio of 251%, significantly above the required 150% threshold for unsecured debt[39] - The net debt to adjusted EBITDAre ratio is a key measure for evaluating the company's capital structure, although specific figures are not provided[75] Shareholder Returns - Dividends declared on common shares increased to $67.335 million in Q2 2025, compared to $64.726 million in Q2 2024, marking a 4.0% increase[21] - The company declared total monthly dividends of $0.885 per share in Q2 2025, reflecting a payout ratio of 71%[43] - The AFFO payout ratio for Q2 2025 was 71%, consistent with Q1 2025's ratio[29] Strategic Focus and Investments - The company aims to enhance shareholder value through predictable growth in Funds from Operations As Adjusted (FFOAA) and dividends per share[10] - The strategic focus includes acquiring or developing a diversified portfolio of experiential real estate venues to capitalize on the growing experience economy[11] - The company anticipates significant investment in new developments, with $80,781,000 allocated to build-to-suit projects as of June 30, 2025[55] - The company has four properties under development with total expected costs of $126,379,000, all of which are 100% leased[55] - Total investment spending for the three months ended June 30, 2025, totaled $48,655,000, with $31,104,000 allocated to Eat & Play properties and $15,165,000 to Fitness & Wellness properties[52] Operational Metrics - Operating expenses for Q2 2025 totaled $83,596,000, compared to $82,810,000 in Q1 2025, reflecting an increase of 0.9%[26] - Cash and cash equivalents decreased to $12,955,000 in Q2 2025 from $20,572,000 in Q1 2025, a decline of 37.0%[25] - The company reported a gain on the sale of real estate of $16,779,000 in Q2 2025, compared to $9,384,000 in Q1 2025, an increase of 78.5%[26] - The company recorded transaction costs of $669,000 in Q2 2025, compared to $567,000 in Q1 2025[85] Customer Concentration - The top ten customers contribute 65.0% of total revenue for the three months ended June 30, 2025, with Topgolf at 14.1% and AMC Entertainment at 13.2%[66]