Executive Summary

Q3 2025 was steady with modest top-line growth and stronger per-share earnings: revenue grew 1.0% YoY to $182.3M, FFOAA/share rose 5.4% YoY to $1.37, and AFFO/share increased 7.8% YoY to $1.39 . Management raised FY25 FFOAA/share guidance to $5.05–$5.13 (from $5.00–$5.16) and tightened investment/disposition guidance ranges .
Results beat S&P Global consensus: GAAP EPS and normalized EPS outperformed, and revenue/EBITDA were modest beats. Management cited higher percentage rents (notably Regal) and rent escalators, partly offset by a $9.1M provision for credit losses related to a single $6M mortgage and macro CECL effects . Values retrieved from S&P Global.*
Balance sheet remains conservative: Net debt/Adjusted EBITDAre improved to 4.7x (from 5.0x YoY) and Net debt/Gross assets to 38% (from 39% YoY); interest and fixed-charge coverage at 4.2x and 3.6x, respectively .
2026 set up for acceleration: EPR highlighted a deep, actionable experiential pipeline (90–120 days), bullish fitness & wellness, and capacity to deploy ~$400–$500M in 2026 without Genting/Catskills proceeds; Genting viewed as optional deleveraging/dry powder, not required to execute the plan .

What Went Well and What Went Wrong

What Went Well
- FFOAA/AFFO strength and guidance raise: “We are pleased to report a 5.4% increase in FFO as adjusted per share… and an increase at the midpoint in our FFO as adjusted guidance” .
- Portfolio stability and box office tailwinds: Consolidated coverage ~2.0x; management expects a robust Q4 and a new post-COVID high for 2025; percentage rent uplift from Regal .
- Capital recycling + liquidity: $19.3M Q3 dispositions with $4.6M gains; $133.8M YTD dispositions; no maturities until Aug-2026; revolver $379M drawn on $1B facility .
What Went Wrong
- Credit provision and mortgage reserve: Provision for credit losses was $9.1M, including a full reserve on a single $6M mortgage; CECL macro updates contributed to the charge .
- Higher G&A run-rate: G&A rose to $14.0M vs $11.9M prior-year on incentive and non-cash share-based comp .
- Seasonal 4Q step-down: Management reminded that 4Q FFOAA/share will be lower than 3Q due to seasonal operating property exposure (Cartwright hotel/waterpark, RV JVs) .

Financial Results

Quarterly results (oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenue ($M)	175.0	178.1	182.3
Net Income to Common ($M)	59.8	69.6	60.6
Diluted EPS ($)	0.78	0.91	0.79
FFOAA per diluted share ($)	1.19	1.26	1.37
AFFO per diluted share ($)	1.21	1.24	1.39
Adjusted EBITDAre ($M)	132.0	138.0	147.1

Year-over-year (Q3)

Metric	Q3 2024	Q3 2025	YoY Change
Total Revenue ($M)	180.5	182.3	+1.0%
Diluted EPS ($)	0.53	0.79	+49.1%
FFOAA per diluted share ($)	1.30	1.37	+5.4%
AFFO per diluted share ($)	1.29	1.39	+7.8%
Adjusted EBITDAre ($M)	142.6	147.1	+3.1%

Segment/Portfolio Mix (as % of Annualized Adjusted EBITDAre)

Property Type	Mix
Theatres	37%
Eat & Play	25%
Attractions	12%
Ski	7%
Fitness & Wellness	9%
Gaming	2%
Cultural	1%
Experiential Lodging	1%
Education (ECE + Private Schools)	6%

Key KPIs and Credit Metrics

KPI	Q3 2025
Wholly-owned occupancy/operated	99%
Consolidated portfolio coverage (TTM)	2.0x
Net Debt / Adjusted EBITDAre	4.7x
Net Debt / Gross Assets	38%
Interest coverage	4.2x
Fixed charge coverage	3.6x
AFFO payout ratio	64%
Top 2 customers (Topgolf / AMC)	13.9% / 13.7% of 3Q revenue

Non-GAAP notes: FFOAA/AFFO exclude items including $9.1M credit loss provision and Q3 gains on sale ($4.6M) per reconciliation .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net income per diluted share	FY 2025	$3.20–$3.36	$3.14–$3.22	Lowered low/high
FFOAA per diluted share	FY 2025	$5.00–$5.16	$5.05–$5.13	Raised low, narrowed range
Investment spending ($M)	FY 2025	$200–$300	$225–$275	Narrowed/higher low
Disposition proceeds ($M)	FY 2025	$130–$145	$150–$160	Raised
Percentage rent & participating interest ($M)	FY 2025	$21.5–$25.5	$22.5–$24.5	Narrowed/raised low
G&A expense ($M)	FY 2025	$53–$56	$54–$56	Raised low
Other income ($M)	FY 2025	$42–$52	$43–$49	Narrowed
Other expense ($M)	FY 2025	$42–$52	$43–$49	Narrowed

Dividend: Monthly dividend is $0.295/share (annualized $3.54); Q3 total declared $0.885/share; AFFO payout 64% .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
Box office recovery/percentage rent	Q1 raised FY25 guidance; pipeline solid; portfolio resilient . Q2: stable; raised dispositions; noted strong slate .	Q3 box office $2.4B (YoY down vs tough comp), Q4 anchored by three $200M+ films; expect post-COVID high; significant increase in Regal percentage rent .	Improving 2H setup; tailwinds into Q4
Capital recycling	Q1: $78.9M proceeds; goal to reduce theatre/education . Q2: $35.6M proceeds; increased FY disposition guide .	Q3: $19.3M proceeds; YTD $133.8M; FY guide raised to $150–$160M .	Continuing, accretive redeploy
Investment pipeline & 2026 acceleration	Q1: Committed ~$148M development . Q2: ~$109M committed; disciplined cadence .	Q3: Pipeline actionable 90–120 days; committed ~$100M; anticipate materially higher 2026 deployment, bullish on fitness & wellness .	Building momentum
Tenant health/coverage	Portfolio coverage stable; resilient experiential demand (Q1–Q2) .	Coverage ~2.0x; tenants adopting tech, pricing initiatives; Canadian assets strong .	Stable to improving
Credit/CECL	Not highlighted in Q1; low provisions (Q1 benefit) . Q2: small CECL .	Q3: $9.1M provision; reserved one $6M mortgage; CECL macro drivers .	Headwind (idiosyncratic + macro CECL)
Capital markets/leverage	Q1: repaid $300M notes; revolver used . Q2: $300M notes repaid; $405M revolver drawn .	Q3: SOFR adjustment removed (-10 bps); Net debt/Adj EBITDAre 4.7x; ATM program in Q4 optional .	Prudent; added tools

Management Commentary

“We are pleased to report a 5.4% increase in FFO as adjusted per share versus the same quarter last year and an increase at the midpoint in our FFO as adjusted guidance for the current year.” — CEO Greg Silvers .
“Our third quarter consolidated coverage remains strong at 2.0… We anticipate a robust fourth quarter and expect 2025 to set a new post-Covid high. The continued recovery of the box office has led to a significant increase in percentage rent from our Regal lease.” — CEO .
“We… made our first investment with the high-end Canadian fitness firm Altea Active… approximately $20 million in mortgage financing… We anticipate continuing to increase our investment spending cadence in the coming quarters… especially bullish on the fitness and wellness space.” — CIO Greg Zimmerman .
“Provision for credit losses, net, was $9.1 million for the quarter… fully reserving one mortgage note receivable for $6 million… changes in our estimated current expected credit losses, mostly due to macroeconomic conditions.” — CFO Mark Peterson .
“Our net debt to annualized adjusted EBITDAre was 4.9x… Net debt to gross assets was 38%… AFFO payout ratio of 64%… We plan to finalize our new ATM equity program in Q4… opportunistic use only.” — CFO .

Q&A Highlights

Credit provisioning: Management reserved a $6M mortgage tied to a small tenant and cited CECL macro inputs as drivers of the $9.1M provision .
2026 deployment scope/leverage: EPR can deploy ~$400–$500M in 2026 and remain below the midpoint of leverage range without Genting; any Genting/Catskills proceeds would further delever by ~0.3x and increase dry powder .
Pipeline and competition: Larger ($100M+) opportunities across several verticals; cap rates stable; EPR remains competitive given granular, relationship-driven sourcing especially for $25–$75M bespoke deals .
Altea Active mortgage: ~20-year mortgage structure (synthetic lease-like), chosen for Canadian tax/FX efficiency; yields comparable to U.S. .

Estimates Context

Q3 2025 results vs S&P Global consensus

Metric	Actual	S&P Global Consensus	Surprise
GAAP EPS (Primary EPS)	$0.79 (company)	$0.7793*	Beat*
EPS (Normalized)	$0.79 (company GAAP)	$0.7811*	Beat*
Revenue ($M)	$182.3	$182.20*	Beat*
EBITDA ($M)	$147.1 (Adj EBITDAre, company)	$143.39*	Beat*

Notes: Company reports EBITDAre/Adjusted EBITDAre; S&P Global “EBITDA” may differ in definition. Values retrieved from S&P Global.*

Key Takeaways for Investors

Quality print with beats on EPS/revenue/EBITDA vs S&P consensus and a guidance raise; stronger percentage rent (Regal) and rent escalators were key drivers, partially offset by a one-off CECL-driven $9.1M provision . Values retrieved from S&P Global.*
Setup into Q4 is constructive: management expects a robust box office slate (Zootopia 2, Wicked, Avatar) and a new post-COVID high for 2025; percentage rent leverage should persist near term .
2026 deployment optionality: Pipeline actionable within 90–120 days; company can deploy ~$400–$500M in 2026 while staying within leverage targets even without Genting/Catskills proceeds; any proceeds would further delever .
Balance sheet strength and flexibility: Net debt/Adj EBITDAre at 4.7x; interest/fixed-charge coverage at 4.2x/3.6x; ATM planned only as an opportunistic tool; no maturities until Aug-2026 .
Dividend covered: $0.295/month ($3.54 annualized) with 64% AFFO payout in Q3, providing income support while capital recycling and growth investments continue .
Watch items: Elevated G&A (incentive and non-cash comp) and CECL volatility; seasonality to weigh on Q4 per-share earnings (normal pattern) .
Stock narrative: Guidance raise, pipeline visibility, leverage capacity, and Q4 percentage rent tailwind are likely the key positive catalysts; CECL/provision noise and seasonality remain tactical considerations .

Supporting detail and additional data

Q3 revenue: $182.3M; rental revenue +$6.2M YoY; percentage rents $7.0M vs $5.9M YoY .
Dispositions: $19.3M proceeds, $4.6M gains; YTD $133.8M; FY disposition guide raised to $150–$160M .
Liquidity: $13.7M cash; $379M drawn on $1B revolver; SOFR add-on removed (–10 bps) .
Portfolio: 330 properties; experiential 94% of total investments; wholly-owned 99% leased/operated .

EPR PROPERTIES (EPR)·Q3 2025 Earnings Summary