Citi has initiated a “positive 90-day catalyst watch” on EPR Properties (EPR, Financial), which is currently rated Neutral. The company anticipates that favorable trends in box office sales, enhanced financial coverage at theaters, and possible increases in theater-related percentage rents will support the stock's performance in the coming months. Despite a lackluster first quarter in terms of box office results, the performance in the second quarter has been strong so far, with promising future releases from major studios. This outlook is seen as encouraging for the near-term prospects of EPR shares.
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 $54.70 with a high estimate of $60.00 and a low estimate of $51.00. The average target implies an downside of 2.32% from the current price of $56.00. 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 $48.42, suggesting a downside of 13.54% from the current price of $56. 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: May 08, 2025
- Revenue: Increased by 4.7% year over year.
- FFO as Adjusted per Share: Increased by 5.3% year over year to $1.19.
- AFFO per Share: Increased by 8% to $1.21.
- Total Investments: Approximately $6.8 billion with 331 properties, 99% leased or operating.
- Investment Spending: $37.7 million in Q1, all in the experiential portfolio.
- Box Office Revenue: Q1 box office was $1.4 billion, down 11.6% compared to Q1 2024.
- Net Proceeds from Dispositions: $78.9 million with a net gain on sale of $9.4 million.
- Interest Expense: Increased by $1.4 million due to higher borrowings.
- Net Debt to Adjusted EBITDA: 5.3 times, adjusted to 5.1 times with annualization.
- Dividend Increase: Monthly common dividend increased by 3.5% to 3.54% per share annualized.
- 2025 FFO Guidance: Increased to a range of $5 to $5.16 per share.
- 2025 Disposition Guidance: Increased to a range of $80 million to $120 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 4.7% increase in top-line revenue and a 5.3% increase in FFO as adjusted per share year over year.
- The company is expanding its portfolio with new experiential asset types, including a construction-themed attraction and a private golf club.
- EPR Properties (EPR) has a strong investment pipeline, with $37.7 million spent in Q1 entirely on experiential properties.
- The company's ski properties delivered solid results, supported by robust season pass sales and favorable weather conditions.
- EPR Properties (EPR) increased its 2025 earnings guidance and raised its monthly common dividend by 3.5%.
Negative Points
- The eat-and-play sector experienced some year-over-year declines, although coverage remains healthy.
- Q1 box office was down 11.6% compared to Q1 2024, largely due to the underperformance of Snow White.
- Santa Monica Pier was adversely impacted by Southern California wildfires, leading to temporary closures.
- Interest expense increased by $1.4 million due to higher borrowings under the unsecured revolving credit facility.
- The company is facing ongoing pressure on operating expenses and attendance declines in some sectors.
