EPR PROPERTIES (EPR)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered steady growth and a clear guidance upgrade: total revenue rose 4.7% year over year to $175.0M, diluted EPS was $0.78, and FFOAA per diluted share was $1.19; management raised full-year FFOAA/share guidance to $5.00–$5.16 and disposition guidance to $80–$120M .
• Results beat Wall Street consensus: revenue roughly $175.0M vs ~$164.2M consensus, and diluted EPS $0.78 vs ~$0.64 consensus; beats were aided by prior-period percentage rents and participating interest true-ups and solid experiential portfolio resilience . Consensus values retrieved from S&P Global.*
• Capital recycling accelerated: $78.9M of dispositions (three theatres and 11 early childhood centers) with a $9.4M gain; proceeds will be redeployed into higher-quality experiential assets; portfolio remains 99% leased/operated, with theatre and education exposure being reduced .
• Balance sheet/liquidity stable: $20.6M cash, $105M drawn on $1.0B revolver; subsequently repaid $300M notes due April 1, 2025 and expect to term out revolver with a bond later this year; net debt/adjusted EBITDAre was 5.3x and AFFO payout ratio 71% .
• Near-term catalysts: guidance raise (including percentage rent/participation) and improving box office/F&B per-cap dynamics support estimate revisions and sentiment, while continuing dispositions and a potential bond deal are watch items for funding and spread normalization .

What Went Well and What Went Wrong

What Went Well

• Guidance raised: FFOAA/share increased to $5.00–$5.16 (from $4.94–$5.14); disposition guidance lifted to $80–$120M; percentage rent & participating interest raised to $21.5–$25.5M, reflecting both prior-period true-ups and expected current-year performance . “We are pleased to have delivered solid earnings growth in the first quarter and increase our guidance for the full year” — CEO Greg Silvers .
• Capital recycling execution: $78.9M dispositions and $9.4M gain; sold 9 ECEs at a 7.4% cap rate, showing asset quality and demand; continued reduction of theatre and education exposure (portfolio now 99% leased/operated) .
• Experiential demand resilience: management highlighted strong F&B-driven profitability and a deeper slate in 2025; as per prepared remarks: “we continue to see resilience at our experiential properties” and coverage remained ~2.0x TTM, above pre-COVID levels .

What Went Wrong

• Estimate quality aided by prior-period adjustments: Q1 included ~$2.9M prior-period percentage rents/participating interest, boosting revenue and affecting quarter-on-quarter comparability; G&A guidance was raised (non-cash stock grant amortization) .
• Eat & Play softness: management noted year-over-year declines in Eat & Play revenue/EBITDARM (still above pre-COVID coverage), reflecting consumer F&B mix pressure at the margin .
• Incremental interest expense: higher revolver utilization vs prior year added ~$1.4M interest expense, and spreads remain “higher than they should be”; funding strategy includes a bond transaction later in 2025, implying rate sensitivity to capital markets .

Financial Results

Quarterly Performance vs Prior Periods

Actual vs Wall Street Consensus (Q1 2025)

Values retrieved from S&P Global.*

Segment/Portfolio Detail (as of March 31, 2025)

KPIs and Balance Sheet/Liquidity

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We continue to see resilience at our experiential properties… We also continue to make meaningful progress in our ongoing recycling strategy… With healthy rent coverage and a prudently positioned balance sheet, we remain encouraged by our outlook and growth opportunities.” — Greg Silvers, CEO .
• “Our experiential portfolio… accounts for 94% of our total investments… excluding vacant properties [it] was 99% leased or operated.” — Greg Zimmerman, CIO .
• “We are increasing our 2025 FFO as adjusted per share guidance… and increasing guidance for disposition proceeds… Note that [FFOAA/share] is expected to be significantly higher in the second half.” — Mark Peterson, CFO .

Q&A Highlights

• Golf (new vertical) strategy: initial private club investment via land acquisition and mortgage financing; flexible deal structures (sale-leaseback or mortgage) and growth with operator relationship .
• Dispositions/buyer depth: robust bid processes (2–3 high-quality bids); cap rates demonstrating portfolio quality; mortgage maturities: one expected payoff (~$10.5M) and one likely extension embedded in guidance .
• Funding strategy: revolver used to repay $300M notes; likely $400M bond to term out later in 2025; indicative 5-year spread ~180–185 bps (7.75% area), expecting spreads to compress with strong quarters .
• Guidance bridge: raise driven by +$3.5M percentage rent/participation (incl. ~$2.9M prior-period true-up), partially offset by +$0.01 G&A; net effect also includes lower interest expense and incremental dispositions .
• Macro/consumer & tariffs: demand resilient; consumers prioritizing affordable experiences; current build-to-suit pricing locked; future projects may evaluate tariff impacts on inputs .

Estimates Context

• Q1 2025 beat consensus: actual diluted EPS $0.78 vs ~$.64 consensus, and revenue $175.0M vs ~$164.2M consensus . Values retrieved from S&P Global.*
• Implications: upward revision risk to FY estimates given raised FFOAA/share guide, higher percentage rent/participation range, and seasonality skew to 2H earnings profile .

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Guidance momentum: raised FY 2025 FFOAA/share ($5.00–$5.16) and disposition proceeds ($80–$120M) provide a constructive setup for estimate upgrades and multiple support .
• Quality recycling: $78.9M Q1 sales and 7.4% cap on 9 ECEs underscore demand for EPR’s assets and discipline in reducing theatre/education concentration .
• Experiential resilience: portfolio coverage ~2.0x TTM and strong F&B per-cap trends (higher-margin) reduce dependence on 2019 box office levels for rent coverage .
• Funding flexibility: $1.0B revolver with $105M drawn and $300M repaid; likely bond issuance later in 2025 to term out revolver exposure—monitor spreads and timing .
• Earnings seasonality: percentage rents/participation weighted to 2H; management expects 2H FFOAA/share significantly higher—position around seasonal strength .
• Pipeline diversification: new golf investment and continued fitness/wellness additions broaden experiential exposure, supporting growth and risk diversification .
• Watch list: tariff impacts on future development costs, Eat & Play softness in F&B intensity, and capital markets spreads; none change near-term investment case materially per management commentary .

Additional Source Documents Reviewed (Q1 context)

• Q1 2025 press release and 8-K (includes supplemental and guidance details) .
• Q1 2025 earnings call transcript (prepared remarks and Q&A) –.
• Prior quarters for trend analysis: Q4 2024 press release and 8-K ; Q3 2024 press release –.
• Q1-period dividend announcements: monthly dividend $0.295 (annualized $3.54) .