EPR Properties (EPR, Financial) reported first-quarter revenue of $175 million, demonstrating robust earnings growth. The company has decided to increase its guidance for the year, attributing this optimism to the ongoing strength of its experiential properties. As economic uncertainties persist, consumers are favoring value-driven, accessible experiences, underpinning the company's performance.
Furthermore, EPR Properties is advancing its asset recycling strategy, focusing on reallocating capital from theater and educational assets to its core experiential sectors. With stable rent coverage and a strategically managed balance sheet, the firm remains positive about its future prospects and growth opportunities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for EPR Properties (EPR, Financial) is $52.00 with a high estimate of $58.00 and a low estimate of $43.00. The average target implies an upside of 3.26% from the current price of $50.36. More detailed estimate data can be found on the EPR Properties (EPR) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, EPR Properties's (EPR, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for EPR Properties (EPR, Financial) in one year is $46.97, suggesting a downside of 6.73% from the current price of $50.36. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the EPR Properties (EPR) Summary page.
EPR Key Business Developments
Release Date: February 27, 2025
- Earnings Growth: 3.4% earnings growth for the full year 2024, excluding out-of-period deferred rent and interest collections.
- Total Investments: Approximately $6.9 billion with 346 properties, 99% leased or operated.
- Experiential Portfolio: 278 properties, 93% of total investments, approximately $6.4 billion, 99% leased or operated.
- Box Office Revenue: Q4 2024 box office totaled $2.3 billion, up 26% from Q4 2023; 2024 box office was $8.6 billion, down 4% from 2023.
- FFO Adjusted: $1.23 per share for Q4 2024 versus $1.18 in the prior year.
- AFFO: $1.22 per share for Q4 2024 compared to $1.16 in the prior year.
- Total Revenue: $177.2 million for Q4 2024 versus $172 million in the prior year.
- Investment Spending: $49.3 million in Q4 2024, total $263.9 million for 2024.
- Disposition Proceeds: $74.4 million for 2024, net gain on sale of $16.1 million.
- Net Debt to Adjusted EBITDAre: 5.3 times for Q4 2024.
- Dividend Increase: 3.5% increase in monthly cash dividend to common shareholders.
- 2025 Guidance: FFO adjusted per share guidance of $4.94 to $5.14, investment spending guidance of $200 million to $300 million, disposition proceeds guidance of $25 million to $75 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- EPR Properties (EPR, Financial) reported a 3.4% earnings growth for the full year 2024, demonstrating resilience in a challenging macro environment.
- The box office performance in the second half of 2024 exceeded expectations, with a significant rebound in North American box office revenues.
- EPR Properties (EPR) successfully expanded its experiential portfolio, including investments in Topgolf and Andretti Indoor Karting and Gaming.
- The company announced a 3.5% increase in its monthly cash dividend to common shareholders, reflecting strong financial management.
- EPR Properties (EPR) maintained a strong balance sheet with a fixed charge coverage ratio of 3.2 times and a net debt to adjusted EBITDAre of 5.1 times.
Negative Points
- The company's education portfolio saw a 3% decrease in EBITDARM due to operating cost increases.
- EPR Properties (EPR) faced challenges with its operating properties, including significant increases in insurance costs.
- The company exited its investment in a Camp Margaritaville RV Resort due to underperformance and required capital infusions.
- EPR Properties (EPR) recognized noncash impairment charges of $40 million related to theater properties under contracts to sell.
- The volatility in performance and expense pressures led EPR Properties (EPR) to decide against pursuing certain types of investments.
