EPR Properties(EPR) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $182.3 million, a 1% increase from $180.5 million in Q3 2024[19] - Net income available to common shareholders increased to $60.6 million in Q3 2025, compared to $40.6 million in Q3 2024, representing a 49% growth[19] - Adjusted EBITDAre for Q3 2025 was $147.1 million, up from $142.6 million in Q3 2024, reflecting a 3% increase[19] - Total revenue for Q3 2025 was $182.306 million, an increase from $178.068 million in Q2 2025[24] - Net income available to common shareholders for Q3 2025 was $60.554 million, compared to $69.603 million in Q2 2025, reflecting a decrease of approximately 15%[24] - Rental revenue increased to $154.838 million in Q3 2025, up from $150.351 million in Q2 2025, marking a growth of about 3.3%[24] - The company reported a net income available to common shareholders of $60,554,000 for Q3 2025, down from $69,603,000 in Q2 2025[26] - Net income for Q3 2025 was $66,586 thousand, a decrease of 12.8% from Q2 2025's $75,643 thousand[82] Assets and Liabilities - Total assets as of September 30, 2025, were $5.54 billion, down from $5.69 billion in 2024[19] - Total liabilities decreased to $3.215 billion in Q3 2025 from $3.230 billion in Q2 2025[23] - Cash and cash equivalents increased to $13.710 million in Q3 2025 from $12.955 million in Q2 2025[23] - As of September 30, 2025, total consolidated debt amounted to $2,768,387, with a weighted average interest rate of 4.42%[34] - The total debt to total assets ratio was reported at 39%, well below the 60% limit set by covenants[37] - Debt to total assets ratio remained stable at 50% for Q3 2025, consistent with previous quarters[43] Dividends and Shareholder Returns - The company declared dividends of $67.4 million on common shares for Q3 2025, compared to $64.7 million in Q3 2024, marking a 4% increase[19] - The company declared total monthly dividends of $0.885 per share in the third quarter of 2025[40] - The FFO payout ratio for Q3 2025 was 72%, slightly up from 71% in Q2 2025, indicating a stable dividend policy[43] - The AFFO payout ratio decreased to 64% in Q3 2025 from 71% in Q2 2025, reflecting improved cash flow management[43] Investment and Development - The company is focused on acquiring or developing a diversified portfolio of experiential real estate venues to enhance shareholder value[10] - Total investment spending for Q3 2025 was $54,459,000, with $38,298,000 allocated to fitness and wellness properties[50] - The company is actively investing in new developments, with $12,415,000 allocated to new projects in Q3 2025[50] - Total expected investment spending for properties under development is estimated at $94.431 million, with 100% leased status[52] - Investment spending guidance for 2025 is set between $225 million and $275 million, with year-to-date actuals at $140.8 million[64] Debt and Credit Metrics - Net debt to total market capitalization ratio improved to 37% in Q3 2025 from 41% in Q3 2024[19] - The company maintained a debt service coverage ratio of 4.1x for the trailing twelve months, significantly above the required minimum of 1.5x[37] - Interest coverage ratio increased to 4.2 in Q3 2025, up from 3.8 in Q1 2025, indicating stronger earnings relative to interest expenses[43] - The interest coverage ratio improved to 4.2 in Q3 2025 from 3.9 in Q2 2025, indicating stronger ability to cover interest expenses[82] Operational Efficiency - Property operating expenses were $14.478 million in Q3 2025, a slight decrease from $14.661 million in Q2 2025[24] - General and administrative expenses rose to $14.001 million in Q3 2025 from $13.230 million in Q2 2025[24] - The company reported impairment charges of $0 in Q3 2025, compared to $39.952 million in Q4 2024[24] - Transaction costs for Q3 2025 were $492,000, compared to $669,000 in Q2 2025, indicating a reduction in transaction-related expenses[28] Joint Ventures and Customer Concentration - The equity in income from joint ventures showed a loss of $2.934 million in Q3 2025, compared to a gain of $1.681 million in Q2 2025[24] - The top ten customers account for 65.3% of total revenue for the three months ended September 30, 2025, with Topgolf being the largest at 13.9%[63]