EPR-PG · EPR Properties

EPR Properties delivered solid Q1 2026 results with revenue up 3.6% to $181.3 million, driven by rental revenue growth and steady other income, though net income dipped 5.3% due to higher expenses including retirement costs and depreciation. Non-GAAP metrics shone brighter, with FFO as adjusted up 6.4% to $97.6 million ($1.26/share) and AFFO up 7.7% to $100.1 million ($1.29/share), reflecting core operational strength in the experiential portfolio. Management highlighted accelerating growth, including $51.3 million in Q1 investments across eat & play, fitness & wellness, and redevelopment projects, plus the post-quarter completion of a $315 million acquisition of six Six Flags attraction properties (final property expected Q2). Portfolio remains robust at 99% leased/operated across 335 properties ($7.1 billion gross investments, 94% experiential), with 2.0x coverage demonstrating diversification resilience. Key sector updates include theatre NABOG up 25% from attendance and releases, positive labor agreements, and extended theatrical windows by majors like Amazon MGM and Universal. Balance sheet supports growth: $68.5 million cash, zero revolver draw on $1 billion facility, $2.9 billion fixed-rate debt at 4.4%, and proforma net debt/EBITDAre at 5.1x. Guidance uplift signals confidence—FFO as adjusted midpoint implies 6.5% growth over 2025, investment spending raised to $500-600 million (plus ~$71 million committed developments), dispositions to $50-100 million. Monthly dividend hiked 5.1% to $0.31/share (70% AFFO payout). CEO Greg Silvers emphasized execution momentum, high-quality pipeline, and experience economy tailwinds for sustained shareholder value creation.