EPR Properties(EPR)2022-03-09 18:11EPR Properties Conference Call Summary Company Overview - Company: EPR Properties (NYSE:EPR) - Event: Citi 26th Annual Global Property CEO Conference - Date: March 9, 2022 - Participants: - Greg Silvers - CEO - Mark Peterson - EVP & CFO - Brian Moriarty - VP of Corporate Communication Key Industry Insights - Experiential Sector Recovery: The company is experiencing strong consumer demand as the economy reopens, with expectations for substantial shareholder value growth in the coming year [3][5][6] - Theater Business Performance: The theater sector is rebounding, with significant box office successes, such as "Spider Man" and "Batman," indicating strong consumer engagement [10][14] - Top Golf and Ski Business: Top Golf properties are performing at 90% of 2019 volumes, and ski resorts like Vail are seeing record sales, showcasing robust demand across various experiential sectors [10][12] Financial Performance and Guidance - FFO Growth: EPR Properties is projecting sector-leading Funds From Operations (FFO) growth, with guidance indicating an 8% increase above consensus and a 32% increase compared to the previous year [8] - Valuation Opportunity: The company is viewed as an attractive investment opportunity due to its current equity multiple being at one of the lowest stabilized points [5] Strategic Focus - Portfolio Optimization: EPR aims to reduce theater exposure over time, currently at 25-30%, and increase investments in other experiential sectors [12] - Asset Sales and Land Value: The company emphasizes the land value of its theater properties, which are often located on large parcels, making them attractive for alternative uses [20][21] Tenant Base and Market Conditions - Strong Tenant Performance: Major tenants like Vail and Six Flags are performing well, with strong credit ratings, indicating a healthy tenant base [31] - Inflation Impact: The company believes its value-oriented portfolio will withstand inflation pressures, as historical trends show resilience during economic downturns [17][18] Capital Management - Balance Sheet Strength: EPR Properties has a solid balance sheet with 1 billion line of credit, allowing for flexibility in capital management without immediate need for additional capital [62][63] - Equity Issuance Strategy: The company is open to opportunistic equity issuance but does not require it for immediate growth plans [63][67] Future Outlook - Investment Pipeline: EPR has a robust investment pipeline with $350 million under contract, focusing on smaller deals that align with its growth strategy [51][56] - Market Positioning: The company is positioned to capitalize on market opportunities due to its nimble size, allowing it to pursue smaller, accretive deals that larger competitors may overlook [45] ESG Initiatives - ESG Priorities: EPR has integrated ESG objectives across all employee levels, indicating a commitment to sustainability and responsible investment practices [70] Conclusion EPR Properties is well-positioned for growth in the experiential sector, with strong consumer demand, a solid financial foundation, and a strategic focus on optimizing its portfolio. The company is actively managing its tenant relationships and capitalizing on market opportunities while maintaining a commitment to ESG principles.