Summary of EPR Properties Conference Call Company Overview - **Company**: EPR Properties (NYSE:EPR) - **Event**: Citi's 2026 Global Property CEO Conference - **Date**: March 3, 2026 - **Key Speakers**: Greg Silvers (CEO), Mark Peterson (CFO), Benjamin Fox (CIO), Brian Moriarty (SVP of Corporate Communications) [1][2] Core Points and Arguments Investment Proposition - EPR Properties offers a **6% dividend yield** and **5% growth**, with potential for multiple expansion [2][3] - The company has consistently delivered strong results, outperforming peers over the last five years [3] - **Experiential spending** increased by **7%** from 2024 to 2025, indicating a robust consumer interest in experiential activities [3][20] Tenant Relationships - EPR's largest tenant, **Topgolf**, is now **60% owned by private equity**. The management believes this ownership structure is beneficial, as it aims to maintain a low leverage ratio below **2 times** [28][31] - Topgolf is focusing on quality over quantity, planning to open only **3-5 locations** per year that meet specific criteria [32] Movie Theater Exposure - Approximately **35% of EPR's EBITDA** comes from movie theaters, primarily AMC and Regal [46] - AMC is restructuring its debt, extending maturities to **2031**, which is viewed positively as it may enhance recovery prospects [49] - EPR aims to reduce theater exposure to **20% or below** over the next **3-5 years** through both sales and acquisitions [55][58] Acquisition Strategy - EPR is targeting acquisitions in the **fitness and wellness**, **attractions**, and **eat and play** sectors, with a guidance of **$400 million to $500 million** for acquisitions in 2026 [100] - The company has a strong pipeline of opportunities, particularly in the fitness and wellness space, and is leveraging improved cost of capital to pursue these [90][92] Golf Course Investments - EPR is acquiring golf courses at approximately **50% of their original cost**, focusing on operational improvements to achieve margins of **24%-28%** [120][121] - The demand for golf is reportedly stronger than it has been in the last **20 years**, with high waiting lists for private clubs [130] Operational Efficiency and AI - EPR is utilizing AI for operational efficiency, particularly in asset management and underwriting, which has streamlined data synthesis and analysis [175][177] Other Important Insights - The company has sold **33 theaters** over the past year and is open to further discussions on selling more [59][61] - EPR's coverage ratio for theaters is currently around **1.7-1.8**, but improvements in food and beverage spending are expected to enhance this [161][167] - The company is actively participating in discussions regarding potential asset sales from major public theme park companies [149][152] Conclusion EPR Properties is positioned to capitalize on growth in experiential spending and is strategically managing its tenant relationships and asset portfolio to enhance long-term value. The focus on operational efficiency and targeted acquisitions in high-demand sectors like fitness and wellness, along with a proactive approach to debt management, underscores its commitment to sustainable growth.