EPR Properties

What they do

EPR owns or finances single-tenant experiential properties, mostly under long-term triple-net leases where tenants pay substantially all operating expenses, plus long-term mortgages on some properties. As of December 31, 2025, total assets were approximately $5.7 billion and total investments approximately $7.0 billion across 43 states and Canada. The company reports two segments: Experiential (94% of investments at year-end 2025) and Education (6%). Its wholly-owned portfolio was 20.1 million square feet and 99% leased or operated at December 31, 2025.

Revenue drivers

• Experiential rentals and mortgages — The core earnings engine: $6.6 billion, or 94%, of total investments at December 31, 2025, spanning 148 theatres, 60 eat & play properties, 26 attractions, 11 ski properties, four experiential lodging properties, 27 fitness & wellness properties, one gaming property and one cultural property.
• Theatres — The single largest property type by count at 148 locations; EPR notes North American box office revenue rose about 1% in 2025 versus 2024 and that theatre food and beverage revenue per customer visit has increased notably versus 2019.
• Attractions, ski, lodging, gaming and cultural — Regional, drive-to destinations that do not require air travel; this group grew during 2026, with attraction properties rising from 26 at December 31, 2025 to 35 at June 30, 2026.
• Education (legacy) — $0.4 billion, or 6% of total investments at December 31, 2025, comprising 46 early childhood education centers and nine private schools; 100% leased and managed as a legacy portfolio to be disposed of over time.

Recent performance

Second quarter 2026 total revenue was $196.1 million, up 10.1% from $178.1 million in the second quarter of 2025. Net income available to common shareholders fell 12.2% to $61.1 million, or $0.79 per diluted share, from $69.6 million, or $0.91. FFOAA per diluted share rose 12.7% to $1.42 and AFFO per diluted share rose 15.3% to $1.43. For the six months ended June 30, 2026, revenue was $377.3 million (up 6.9%) and AFFO per diluted share was $2.71 versus $2.44. Investment spending was $440.8 million in the quarter and $492.2 million for the first half.

Strategy

EPR targets growth in experiential property types it knows well, structuring leases and financings for a positive spread between cost of capital and tenant rent or interest. It typically buys or develops pre-leased single-tenant properties to limit lease-up risk, and will use joint ventures. It intends to dispose of the Education portfolio over time and recycle proceeds into experiential investments. In the second quarter of 2026 it acquired seven attraction properties from Six Flags Entertainment Corporation for $304.4 million, plus two attraction and one fitness & wellness property for $114.3 million and $12.8 million of mortgage financing. Subsequent to quarter-end it entered an amended and restated $1.6 billion credit agreement, including a $1.0 billion unsecured revolving facility and a new $600.0 million unsecured delayed draw term loan due 2032.

Risks

• Financing and refinancing risk — EPR relies on debt to fund investments, and the 10-K states that continued market turmoil could hurt its ability to refinance maturing obligations or obtain new acquisition and development financing on attractive terms.
• Theatre tenant concentration — Theatres are the largest property type at 148 locations, tying a significant share of rent to an industry still rebounding from the 2023 writers' and actors' strikes.
• Cost of capital and interest rates — The 10-K cites higher cost of capital and significant volatility and negative pressure in financial and capital markets as current conditions affecting REITs.
• Construction and development cost inflation — The 10-Q states that global trade uncertainty and supply chain disruptions may raise construction material costs, which can lower yields on development projects and delay or cancel planned projects.

Outlook

Management raised 2026 FFOAA per diluted share guidance to $5.41–$5.57 from $5.37–$5.53, which at the midpoint is 7.2% above 2025. Investment spending guidance for 2026 was increased to $600.0–$700.0 million from $500.0–$600.0 million, with disposition proceeds guidance of $50.0–$100.0 million confirmed. Chairman and CEO Greg Silvers cited the Six Flags acquisition, portfolio strength and the new $1.6 billion credit agreement as supporting further opportunities.