EPR Properties Q1 2025 Earnings Call Transcript

Skip to Participants
Operator

And welcome to the EPR Properties q one twenty twenty five earnings call. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. I will now hand the call over to Brian Moriarty, Senior Vice President, Corporate Communications.

Brian Moriarty
Brian Moriarty
Senior Vice President of Corporate Communications at EPR Properties

Great. Thank you. Thanks for joining us today for our first quarter twenty twenty five earnings call and webcast. Participants on today's call are Greg Silvers, Chairman and CEO Greg Zimmerman, Executive Vice President and CIO and Mark Peterson, Executive Vice President and CFO. I'll start by informing you that this call may include forward looking statements as defined in the Private Securities Litigation Act of 1995 identified by such words as will be, intend, continue, believe, may, expect, hope, anticipate or other comparable terms.

Brian Moriarty
Brian Moriarty
Senior Vice President of Corporate Communications at EPR Properties

The company's actual financial condition and results of the operations may vary materially from those contemplated in such forward looking statements. Discussion of those factors that could cause results to differ materially from those forward looking statements are contained in the company's SEC filings, including the company's reports on Form 10 ks and 10 Q. Additionally, this call will contain references to certain non GAAP measures, which we believe are useful in evaluating the company's performance. A reconciliation of these measures to the most directly comparable GAAP measures are included in today's earnings release and supplemental information furnished to the SEC on Form eight ks. If you wish to follow along, today's earnings release, supplemental and earnings call presentation are all available on the Investor Center page of the company's website, www.eprkc.com.

Brian Moriarty
Brian Moriarty
Senior Vice President of Corporate Communications at EPR Properties

Now I'll turn the call over to Greg Silvers.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Thank you, Brian. Good morning, everyone, and thank you for joining us on today's first quarter twenty twenty five earnings call and webcast. I am happy to report that our first quarter results reflect continued strength in our portfolio with top line revenue up 4.7% and FFO as adjusted per share up 5.3% year over year. Additionally, we are pleased to announce that we are increasing our 2025 earnings guidance. During the quarter, we made progress with our investment pipeline, deploying capital into accretive opportunities that support our long term growth strategy.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

As part of our investment spending during the quarter and subsequent to quarter end, we are introducing two new experiential asset types to our portfolio, a construction theme attraction and a private golf club with expansive amenities. We are delighted to add these properties to our portfolio as they reflect the attributes we seek in our experiential investments. While we remain prudent in our investment spending given the current cost of capital, we are encouraged by our ability to continue to find attractive investments. We are also we also advanced our capital recycling strategy focused on the sale of theater and education assets and accretively redeploying this capital into target experiential properties. This strategy remains a top priority for us as we continue to refine our portfolio with the goal of further expanding our experiential portfolio across high quality properties.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Turning to an overview of our portfolio, Our first quarter consolidated coverage remains at two point zero, which is consistent with the reported coverage on our year end call. We are pleased with the momentum and resilience we're seeing at the box office. Thus far, we've seen success around multiple genres including including original content as most recently evidenced by the performance of Sinners, franchise films including Captain America Brave New World and Mufasa the Lion King, and animated features like Dog Man and Moana two. The upcoming film slate is strong, and we remain optimistic about seeing continued solid performance in theatrical exhibition. Our ski properties also delivered solid results supported by robust season pass sales and favorable weather conditions.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

As we've discussed previously, our snowmaking capabilities at these properties helped to mitigate weather risk. While our eat and play sector experienced some year over year declines, our coverage in the space remains healthy and we are confident about the sector's resilience. Lastly, amid ongoing uncertainty, we wanted to highlight the long term resiliency of experiential spending in many of these sectors that we invest in. As is highlighted on the chart, spending on these experiences has consistently grown over the last twenty five years throughout macro cycles. Additionally, the data illustrates that these sectors are resilient during challenging economic periods and have the potential to exhibit robust recoveries.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

We believe that consumers often seek away from home entertainment and leisure options even during more challenging period due to a mix of psychological, behavioral and economic factors. These types of experiences offer affordable escapism by providing a value or by providing value oriented entertainment and a temporary escape. History suggests there is also some substitution effect whereby consumers may trade down rather than opt out, opting for local more budget friendly experiences instead of expensive vacations or high end purchases. This trade down effect can make our venues more appealing during downturns. With that, I'll turn it over to Greg Zimmerman to go over the business in greater detail.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Thanks, Greg. At the end of the quarter, our total investments were approximately $6,800,000,000 with three thirty one properties that are 99% leased or operated, excluding vacant properties we intend to sell. During the quarter, our investment spending was $37,700,000 1 hundred percent of the spending was in our experiential portfolio. Our experiential portfolio comprises two seventy six properties with 51 operators and accounts for 94% of our total investments or approximately $6,400,000,000 And at the end of the quarter, excluding the vacant properties we intend to sell was 99 percent leased or operated. Our education portfolio comprises 55 properties with five operators and at the end of the quarter was 100% leased.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Turning to coverage, the most recent data provided is based on a March trailing twelve month period. Overall portfolio coverage remained strong at two times the same as last quarter. Turning now to the operating status of our tenants. The rebound in North American box office continues. Q1 box office was $1,400,000,000 down 11.6% compared to Q1 twenty twenty four largely because of the significant underperformance by Snow White.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

We've seen a quick rebound with the outstanding performance of several films in q two to date. Q two box office through this week was 11,000,000,000, which brings year to date box office to 2,500,000,000.0, a 17.1% increase over the same period in 2024. A Minecraft movie opened to 163,000,000, both the largest opening in 2025 and the largest opening weekend ever for a video game movie. To date, Minecraft has grossed 398,000,000. Akin to Barbie, Minecraft was a cultural phenomenon fueled by consumers seeing the movie several times and interacting with the screen.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Beyond Minecraft, the well reviewed genre bending horror film Sinners has grossed $180,000,000 to date, and the faith based The King of Kings has grossed $58,000,000 Last week, Thunderbolts, the latest installment of the Marvel Cinematic Universe opened to $74,000,000 With these strong early q two performances, as of the May, we are back on track for our projected year to date box office gross. As history has shown, when product is flowing, the box office is resilient. And when there is a consistent flow of good product, consumers are in the habit of going to multiple movies. For the remainder of q two beyond Minecraft, eight titles are projected to gross over 100,000,000, including four projected to gross over 175,000,000. Thunderbolts, Lilo and Stitch, Mission Impossible to Final Reckoning, and How to Train Your Dragon.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

The slate for the remainder of the year is also strong, including the Fantastic Four, First Steps, Superman, Jurassic World Rebirth, and Avatar Fire Nash. Box office growth ties directly to the number of titles released, particularly wide releases from benign major Hollywood studios, which typically generate around two thirds of the North American box office. As of May, we anticipate 2025 will have 78 major studio releases and 60 smaller studio releases. At this point in 2024, there were 64 major studio releases on the calendar. The 78 major studio releases currently scheduled for 2025 are forecasted to gross $800,000,000 more than the major studio releases scheduled at this point in 2024.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Our estimate of North American box office for calendar year 2025 remains between 9.3 and 9,700,000,000.0. Another important element supporting the health of exhibitor profitability is the ongoing expansion of food and beverage offerings. These expanded offerings are driving increased consumer spending, revenue per patron, and levels of profitability per patron. Based on AMC and Cinemark public filings from 2019 through 2024, per patron ticket prices increased by approximately 26%, while f and b spending per patron increased by approximately 60%. Ticket margin is around 46%, while f and b margin is around 82%.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

This notable increase in higher margin f and b spending meaningfully boosts gross profit per patron and has a positive impact on the bottom line. When adjusting for the current per patron spending mix, we estimate that North American box office gross of around 9,500,000,000.0 today will generate rent coverage levels in our portfolio equal to those generated at an 11,300,000,000.0 bottle dollar box office in 2019. While box office metrics obviously will remain an important benchmark, the industry story has evolved and strong per patron profitability now plays an important role in sustaining operator health. We believe that returning to 2019 box office levels is not necessary to maintain solid rent coverage or for the industry to remain financially healthy. Turning now to an update on our other major customer groups.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Despite continuing pressure on operating expenses and in select cases attendance and revenue declines, we saw good results across our drive to value oriented destinations. Our Eastern ski areas benefited from a good snow year. And for the season, both q one and q one trailing twelve month revenue and EBITDARM were up across the ski portfolio over last year's season. Andretti Karting is under construction in Kansas City, Oklahoma City, and Schaumburg with opening scheduled for mid twenty five and early twenty six. Our even play coverage remains strong and above pre COVID levels, but Q1 trailing twelve month revenue and EBITDARM were both down over the same period in '24.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Many of our attractions were closed for the season in Q1. Hundred thousand square foot indoor water park addition at Bavarian Inn in Frankenmuth, Michigan opened in q one. Our iconic Hotel de Glace at Bell Cartier celebrated its twenty fifth anniversary with its usual strong performance. Santa Monica Pier was adversely impacted by the Southern California wildfires, including being shut down for several days. Some road closures are ongoing.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

We are very pleased with the strong performance of our fitness and wellness investments. The Springs Resort in Pagosa Springs opened its $90,000,000 expansion in early April to good reviews. Ramp up continues at our Murrieta Hot Springs Resort. Across our fitness and wellness portfolio, we saw increases in both revenue and EBITDARM in the trailing twelve months through March 2025 over the same period in twenty fourth. Our education portfolio continues to perform well.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Our customers' trailing twelve month revenue across the portfolio for 2024 was up, while EBITDARM over the same period decreased, driven largely by increased operating costs for one operator. Our investment spending for Q1 was $37,700,000 which included funding for experiential product projects which have closed but are not yet open. During the quarter, we acquired Diggerland USA in West Berlin, New Jersey, 20 miles east of Philadelphia for $14,300,000 Diggerland is the only construction themed attraction and water park in the country and is our second investment with IAM further diversifying our tenant base. Subsequent to the end of the quarter, we made two additional investments. We made our first investment in the traditional golf space acquiring land for $1,200,000 and providing $5,900,000 in mortgage financing secured by the improvements to Evergreen Partners for an existing private club in Georgia.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

We've spent a lot of time analyzing traditional golf while building deep relationships, and we are delighted to announce our foray into what we think is an exciting growth opportunity in a resilient space with a growing operator. We also acquired our second Penn Stack Eat and Play venue in Northern Virginia for 1,600,000.0 with a commitment to provide build to suit financing up to 19,000,000. This project is expected to open in 2026. InSnack features bowling, food and beverage, and redemption games. We continue to see high quality opportunities for both acquisition and built to suit development in our target experiential categories.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Given our cost of capital, we will continue to maintain discipline and to fund those investments primarily from cash on hand, cash from operations, proceeds from dispositions and with the borrowing availability under our unsecured revolving credit facility. We're maintaining our investment spending guidance for funds to be deployed in 2025 in the range of $200,000,000 to $300,000,000 We have committed approximately $148,000,000 for experiential development and redevelopment projects that have not have closed, but are not yet funded to be deployed over the next few years. We anticipate approximately $87,000,000 of the $148,000,000 will be deployed in 2025, which is included at the midpoint of our 2025 guidance range. We continue to execute on our strategy to focus our portfolio on diversified experiential assets. To that end, in Q1, we sold 10 leased early education centers, demonstrating our ability to strategically monetize our education portfolio.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

We also sold a vacant theater, two operating theaters, and one vacant early childhood education center. Net proceeds for these transactions totaled $70,800,000 and we recognized a gain of $9,400,000 Finally, we received 8,100,000 in net proceeds for the payment in full of two mortgages secured by two additional early childhood education centers. The activity in the education portfolio was anchored by the sale of a portfolio of nine leased early childhood education centers to an investor at a 7.4 cap rate, demonstrating the high quality and value of our education portfolio. For the other three operating early childhood education assets, the existing operator purchased and or paid off mortgage financing at a blended rate of around 8.3%. In the past four years, we have sold 27 theaters.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

We only have three vacant theaters, two of which are under contract. We have no vacant early childhood education centers. As we noted on our year end call, we also have signed purchase and sale agreement to sell two theater properties to a smaller operator that currently leases both locations. Although there can be no assurance, we continue to anticipate this sale will occur by June 30. We are revising our 2025 disposition guidance to the range of $80,000,000 from the range of $180,000,000 excuse me, to the range of $80,000,000 to $120,000,000 from a range of $25,000,000 to 75 I now turn it over to Mark for a discussion of the financials.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Thank you, Greg. Today, will discuss our financial performance for the first quarter, provide an update on our balance sheet and close with an update on 2025 guidance. FFO as adjusted for the quarter was $1.19 per share versus $1.13 in the prior year, an increase of over 5%. Additionally, AFFO for the quarter was $1.21 per share compared to $1.12 in the prior year, an increase of 8%. Before I walk through the key variants, I want to go over two gains recognized during the quarter.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

As Greg discussed, during the quarter, we continued to make progress reducing our investments in theater and education properties and recycling those proceeds into other experiential assets. Net proceeds from dispositions totaled $78,900,000 and we recognized a net gain on sale of $9,400,000 We also recognized a net benefit for credit losses of $652,000 Note that both of these gains are excluded from FFOs adjusted and AFFO. Now moving to the key variances. Total revenue for the quarter was $175,000,000 versus $167,200,000 in the prior year. Within total revenue, rental revenue increased $4,100,000 versus the prior year, mostly due to the impact of investment spending and higher percentage rents.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Percentage rents for the quarter were $3,300,000 versus $1,900,000 in the prior year, and the increase was due primarily to $1,100,000 recognized from one early childhood education center tenant. The increase in mortgage and other financing income of $4,100,000 was due to additional investments in mortgage notes over the past year as well as $1,800,000 of participating interest income related to a ski property. I'd like to note that both the $1,100,000 in percentage rent and $1,800,000 of participating interest income relate to prior periods. The calculations for some of these amounts were under review with our customers and agreement was reached as to the amounts during the first quarter. Later, I will discuss how this impacts our 2025 guidance.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Both other income and other expense relate primarily to our consolidated operating properties, including the Kartrite Hotel and indoor water park and our operating theaters. As Greg discussed, during the quarter, we sold two operating theaters and currently have four operating theaters remaining. The first quarter was off season for our two remaining unconsolidated RV park joint ventures that had a carrying value at quarter end of $11,400,000 Interest expense net for the quarter increased by $1,400,000 compared to the previous year due to an increase in borrowings under our unsecured revolving credit facility, which had no balance in the prior year. Turning to the next slide, I will review some of the company's key credit ratios. As you can see, our coverage ratios continue to be strong with fixed charge coverage at 3.2 times and both interest and debt service coverage ratios at 3.8 times.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Our net debt to adjusted EBITDAre was 5.3 times for the quarter. If you adjust this ratio to include the annualization of investments placed in service acquired or disposed of during the quarter and the annual utilization of percentage rent and participating interest as well as other items, this ratio was 5.1x at quarter end, which is at the low end of our targeted range. Additionally, net debt to gross assets was 39% on a book basis at quarter end and our common dividend continues to be very well covered with an AFFO payout ratio of 71% for the first quarter. Now let's move to our balance sheet, which is in great shape. At quarter end, we had consolidated debt of $2,800,000,000 of which $2,700,000,000 is either fixed rate debt or debt that has been fixed through interest rate swaps with an overall blended coupon of approximately 4.4%.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Our liquidity position remains strong with $20,600,000 of cash on hand at quarter end and $105,000,000 drawn on our $1,000,000,000 revolver. Subsequent to quarter end, we repaid $300,000,000 in senior unsecured notes at maturity using funds available under our revolver. We have no other debt maturities in 2025. Our strong liquidity position provides us great flexibility, which is particularly important given the recent market volatility. We are increasing our 2025 FFOs adjusted per share guidance to a range of $5 to $5.16 from a range of $4.94 to $5.14 representing an increase over the prior year of 4.3% at the midpoint.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

As we have discussed previously, given our current cost of capital, we are eliminating our near term investment spending. We are confirming our 2025 investment spending guidance of $200,000,000 to 300,000,000 We are increasing guidance for disposition proceeds for 2025 to a range of $80,000,000 to $120,000,000 from a range of $25,000,000 to $75,000,000 On the next slide, we are increasing our percentage rent and participating interest income to a range of $21,500,000 to $25,500,000 from a range of $18,000,000 to $22,000,000 This increase is primarily related to the $2,900,000 in prior period income recognized in the first quarter that I discussed previously as well as additional amounts expected related to the current year. We are increasing our G and A expense a range of $53,000,000 to $56,000,000 from a range of $52,000,000 to $55,000,000 with the largest increase at the midpoint related to noncash stock grant amortization. We are confirming the guidance for our consolidated operating properties, which is provided by giving a range for other income and other expense. One final comment regarding our FFO as adjusted per share guidance.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Note that given the fact that our expected percentage rents participating interest income continues to be weighted to the second half of the year as does the performance of our operating properties due to seasonality. FFO as adjusted per share is expected to be significantly higher in the second half of the year versus the first half. Guidance details can be found on Page 23 of our supplemental. Finally, we are pleased to have increased our common our monthly common dividend by 3.5% to $3.54 per share annualized, which began with the dividend payable April 15 to shareholders of record as of March 31. We expect our 2025 dividend to be well covered with an AFFO per share payout continuing to be at about 70% based on the midpoint of guidance.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Now with that, I'll turn it back over

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

to Greg for his closing remarks.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Thanks, Mark. As today's results indicate, our portfolio of Experiential Properties continues to deliver quality results. I also wanted to comment on recent announcements about possible tariffs impacting the film industry. At this point, there is significant uncertainty about the viability, scope, and timing to implement such proposal.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

However, both sides of the debate have a stated objective of producing a robust slate of films that drive a successful film exhibition industry. We will closely monitor these developments, but we take comfort that the entire 2025 slate and most, if not all, of the 2026 slate is already in postproduction, which we believe should limit any near term impact. With that, why don't I open it up for questions? Alice?

Operator

Thank you. At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your Zoom screen. When it is your turn, you'll receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. If you are on a mobile device using the app, simply tap into the three dots or more button to find the raise hand feature.

Operator

And lastly, if you are calling in today, star nine will activate the raise hand and use star six to mute and unmute. We will wait one moment to allow the queue to form. Our first question will come from Anthony Paolone with JPMorgan. You may now unmute your audio and ask your question.

Anthony Paolone
Anthony Paolone
Executive Director at J.P. Morgan

Great. Thanks. Yes. You can hear me.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Yes.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Yes.

Anthony Paolone
Anthony Paolone
Executive Director at J.P. Morgan

My first great. First question is on the golf investment. Can you maybe spend a minute and give us a little bit more color around how you see the yields, deal structure, and just maybe a little bit more on the the first transaction here in terms of, like, what equity is behind it, who the operator is, experience, that sort of thing?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Sure. I think and then I'll let Greg add on Zimmerman add on to this. I I think what we we've done is done a deep dive in this, Tony, and there's yeah. Yeah. You know, nearly 2,000 courses across The US have been eliminated over the last five years.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

So there there clearly a scarcity has been introduced into it. This, that we're involved in is a private club. So the, yeah, you you know, the the actual membership and fees and everything tied to the land and run with the homeownership. So we think it's a very, very solid and reliable income flow, but we also think there are good opportunities that are gonna continue to develop in a in this scarce environment. But, Greg?

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Yeah. And, Tony, I would say this is a private club. We're also monitoring daily fee clubs, which we would have an interest in as well. I the deal structure you'll see is flexible like our traditional deal structures. You know, we'll either approach this as a sale leaseback or, in this case, it was mortgage financing.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

The operator is a growing operator. They have a couple of clubs and a deep bench of talent. So we believe, it's an opportunity to grow with them. And lastly, I will say, as we always do, we spent a lot of time over the last five years understanding the industry and, developing deep roots. I think as we've said repeatedly over the last year or so, we really believe in fitness and wellness as a growth opportunity in this portfolio, and that helps us round out our offerings.

Anthony Paolone
Anthony Paolone
Executive Director at J.P. Morgan

Okay. Thanks for that. And then just my second one is really a two parter on the disposition side of things. One, just would love to hear the nature of the buyers that you're seeing out there. I mean, seemed like good portfolio execution on the early childhood education sale.

Anthony Paolone
Anthony Paolone
Executive Director at J.P. Morgan

And then also just more nuance related to the guidance. You have about $40,000,000 I think, of mortgage receivables that come due later this year. And I was wondering if that's if you expect to get paid back on those or if those get extended, if it's in the disposition guidance or just what happens there?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Yeah. I would say, first of all, it was a robust process with multiple bids and buyers. In that, the depth of of of the buyer was good. This was a a, yeah, you know, a private fund that specializes in education. And and like I said, I think Greg would say on most of our sales right now, we're at least two or three deep on quality bids, for our assets.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

So that's strong. As far as the repayment of the mortgages, I think we have one built in there, but it's but Mark, maybe you have

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Yes. There are two two mortgages, you say, maturing. I think we in guidance that that more than $1,000,000,710,750,000.00 dollars number that that we have in our guidance. The other one, we'll see what happens, but more likely gets extended.

Anthony Paolone
Anthony Paolone
Executive Director at J.P. Morgan

Okay. Thank you.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Thanks.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Thank you, John.

Operator

Our next question our next question will come from Bennett Rose with Citi. You may now unmute your audio and ask your question.

Bennett Rose
Analyst at Citigroup Global Markets Inc.

Okay. Thanks. Hi. I do I wanted to ask you just two questions. One, I'm I'm sure you saw that Six Flags is closing their Hurricane Harbor Annapolis and apparently doing kind of a street a strategic review of a number of their properties.

Bennett Rose
Analyst at Citigroup Global Markets Inc.

I'm just wondering if they are communicating with you about any of your hurricane harbor properties or kind of what coverage looks like there.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Again, I would say, clearly, we're in contact with Six Flags all the time as a good tenant. We don't anticipate any of our properties closing. And I think as as it develops, that will show you that they've got a higher and better use for that property and will generate substantial value associated with it.

Bennett Rose
Analyst at Citigroup Global Markets Inc.

Okay. And

Bennett Rose
Analyst at Citigroup Global Markets Inc.

then I was just wondering, I used the, credit line to pay down, the bonds that were the, yeah, the bonds that were coming due. Would you expect to do kind of a term that out later this year? Or maybe you could just talk a little bit about, how how you're thinking about that.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Yeah. We have some flexibility when it comes to that. If you think about it, you know, we have, like I said, a hundred and 5,000,000 on the line, paid off the debt subsequent to year end, which was about took us to about $400,000,000 on the line. And then you kind of look at investment spending and cash flows over the remainder of the year, it's probably a net $100,000,000 more on the line. So the good news is if we don't do anything, we're only about half drawn on the line.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

But I will say in our guidance, we do expect to do

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

a bond

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

transaction, and turn that out to your point. And, you know, if you did a $400,000,000 transaction, it would be down to, you know, about a hundred million at year end. So I I think the good news is we have some flexibility, with respect to that. We're monitoring the market both in the five year and ten year realm. But but, you know, likely, we would do a bond transaction.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

We're also monitoring sale transactions as well.

Bennett Rose
Analyst at Citigroup Global Markets Inc.

Do you think a five year or ten year would price now for you?

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

So a five year spread wise would probably be in the 180, 1 hundred 80 5 area. So if you look at today's treasury, it'd probably be in the 5.75%, five point seven five %, area. And that's probably 60 basis points when you count the rate and spread difference between that and the ten year, about 60 basis points, less than what a ten year would be. Frankly, we think, you know, our our spreads are still higher than they should be. And hopefully, quarters like this and as the box office recovers and people take note of that, we hope those spreads come in a bit.

Bennett Rose
Analyst at Citigroup Global Markets Inc.

Okay. Thank you.

Operator

Our next question will come from RJ Milligan with Raymond James. You may now mute your audio and ask your question.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

RJ?

Operator

RJ Milligan, please unmute yourself.

RJ Milligan
RJ Milligan
Managing Director at Raymond James

Hey, guys. Sorry about that. Hey, RJ. Dispositions in the court dispositions in the quarter, a little bit, more than expected. And so I think on a stand alone basis, that would lead to a a decrease in guidance, but guidance was up.

RJ Milligan
RJ Milligan
Managing Director at Raymond James

And, Mark, you touched on this in your comments, but I'm just curious if you could maybe quantify some of the components. Obviously, higher percentage rent, but what else is going in there? And then the second part to that question is, as we think about the five zero eight at the midpoint for the year, how much of that is sort of nonrecurring or onetime prior period collections, that we should strip out as we think about 2026?

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Yeah. Let me walk you through that. So we were at 05/2004 midpoint. You know, we increased percentage rent guidance at the midpoint by 3 and a half million. That's about 4 and a half cents.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

And about 2.9 to the 3.5 was prior period, as I mentioned. So call that 3.5 or so of of the of the 4.5% increase in percentage rents. And then we in going the other way, we increased g and a by about a penny. So on the two explicit things that we provide, that gets you to about five zero seven. To your point, the remaining two items, there's probably about a $02 impact of the incremental dispositions.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

You know, from a GAAP point of view, those average about a 9 cap from a GAAP perspective even though we're much lower than that on a on a cash basis. So $02 on the dispositions and offsetting that going the other way, about $0.25 is lower interest expense, and that's partially because we moved back the timing of our bond offering. So so, anyway, five zero four, the two explicit items gives you the $5.00 7 and then kind of the net impact of about another penny of of, less interest expense, on the positive side and incremental dispositions on the on the negative side. I call it negative from an earnings perspective, but certainly was positive from a a portfolio management point of view.

RJ Milligan
RJ Milligan
Managing Director at Raymond James

Okay. And then just the follow-up to that is in the 05/2008 number, how much of it is prior period rent collections that we should think about pulling out for a run rate for '26?

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Right. Really, it's just that percentage rents, 2,900,000.0. We don't have any out of period deferral collections in this quarter nor do we plan any in our guidance. So it's really through the first quarter, the expectation for the year right now is just the $2,900,000 this prior period. So that's about 3 and a half.

RJ Milligan
RJ Milligan
Managing Director at Raymond James

Okay. That's helpful. And then thank you for that. You know, stocks done well so far this year. Obviously, you guys have been self funding through dispositions and free cash flow.

RJ Milligan
RJ Milligan
Managing Director at Raymond James

At what point or stock price do you guys start getting a little bit more aggressive in in thinking about issuing equity to, to increase the the investment activity?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Again, RJ, it's Greg. It's it's it's really about accretive growth. And so, it's it's really a function of, you know, the spread that you can get and where you can you can issue at. I I think, and I credit the team here, we're delivering kinda at the top near the top end of sector growth without having to, to issue equity. As as opportunities and Greg and his team find those opportunities, we'll take a look at it.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

I think, you you know, from an absolute standpoint, probably as we get at or near an 11 multiple, it starts to get kind of, much more interesting. We we've talked about the depth of of our opportunities. But yet yet, you know, when you can drive, you know, 4% growth with a 7% dividend and deliver 11% total shareholder return with with what we think is very little execution risk and no capital markets, we think that should be quite appealing to investors and the opportunity to do more as we continue to demonstrate our ability to execute.

RJ Milligan
RJ Milligan
Managing Director at Raymond James

Makes sense. Thanks, guys.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Thanks, Arjun. Thank you.

Operator

Our next question our next question comes from Justin Hasby with RBC Capital Markets. You may now unmute your audio and ask your question. Justin, if you are calling in today,

Justin Haasbeek
Justin Haasbeek
Senior Associate, Equity Research at RBC Capital Markets

Yeah. Sorry about that. Thanks for taking the question. Can you just provide some color on the investment pipeline and the types of opportunities in the market?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Yeah. And I'll let Greg jump in on this. I I think overall, as we kind of demonstrate, it's a depth and breadth that we're we're we're trying to to take advantage of. And as we've talked about before, look at opportunities which provides opportunities for future growth. Like, you you know, even in The Gulf, we're we're we we've signed agreements where this hopefully will lead to future growth as we go forward.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

And Greg and his team do a great job about not only finding a deal, but finding a pipeline of deals or supporting existing tenants. But Greg?

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Yeah. And to follow-up on a couple of things there, Justin. If you look at the depth and breadth, I mean, we've announced deals in eat and play attractions and fitness and wellness this year. To Greg's point, on the golf deal, we have a forward commitment for funding. Our Penn Stack deal is our second with this operator, and our IAM deal is our second with that operator.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

So that's the way we like to grow the business. As I've said and I mentioned earlier on the call, I think we see a lot of opportunities in the fitness and wellness space, which we broadly define and includes our Hot Springs Resorts and now golf. So I would say we're seeing opportunities in all of our sectors, probably not so much in gaming right now, but all the other verticals, a lot of opportunities.

Justin Haasbeek
Justin Haasbeek
Senior Associate, Equity Research at RBC Capital Markets

Okay. Thanks. And then last one for me. Can you just expand on the current macro environment and how that could impact your underlying tenant base and then any impacts on future investment activity?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Again, as as we kinda laid out, there's a actually, notwithstanding the moniker of consumer discretionary, there's a lot of resilience in what we think is affordable entertainment and leisure options. It will ebb and flow within, like what we said. Eat and play was down a little. Ski was up. Theaters are up 17% year to date.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

So, again, those those things will ebb and flow, but people don't give up fun. And we've continued to see those kind of resiliency both in the current environment as we look back through history. And we'll continue to be mindful of what we think are those value oriented drive to destinations that demonstrate that kind of resiliency and continue to deploy capital in a way that we think creates high quality and resilient cash flow streams that support rising dividends.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Greg, I

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

would also add, one of our strong thesis is in the fitness and wellness space is that that's the chain a change in culture and that people are gonna wanna continue to spend money in those spaces despite the economic conditions. And, again, we're seeing that in our fitness and wellness portfolio.

Justin Haasbeek
Justin Haasbeek
Senior Associate, Equity Research at RBC Capital Markets

Great. Thanks.

Operator

Our next question will come from Catherine Graves with UBS. You may now unmute your audio and ask your question.

Kathryn Graves
Kathryn Graves
Equity Research Scientific Associate at UBS Group

Hey. Good morning. Thank you for taking my questions. My first, AMC on their earnings call said they expect 2026 box office to surpass 2025. So is that consistent with the conversations that you're having with others, and does that at all influence how you're thinking about theaters in the longer term?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

I think that is consistent that we think it it's really driven by the content and the slate of movies, and that's kinda where everybody starts that, and the slate continues to get deeper. I I don't think it changes our perspective on theaters. We we we have continued to say that we wanna lower that and that level of concentration and increase our diversity. Probably what it does is it creates better opportunities to execute on that strategy. But listen, it it it continues to improve the health and sustainability of of the environment.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

If you look at someone like Cinemark, they are now trading back at levels pre 02/2019. So, again, we're very, very excited about kind of that continuing involvement of of box office. And as we've said on the slide that we presented, the mix has changed, and we now have with food and beverage, you know, even at at 9,500,000,000.0, which is kind of the midpoint of what we're talking about this year, kind of EBITDAR contributions should be at or near back to box office levels that were 11.3. So we're we're really excited about where the direction would go.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Just to add to that, you know, that should, increase our real percentage rent that, you know, goes through July. So we've got, had nice momentum this year and expect, you know, an increase given the box office improvement expected for the following year. And keep in mind, we also have the other half of the AMC bump. So I think we, have good results forecast over this year, and that momentum continues into next year.

Kathryn Graves
Kathryn Graves
Equity Research Scientific Associate at UBS Group

Got it. Thank you. That's helpful. And then my second question, you you discussed the tariff and inflation resistance of the existing experiential portfolio. But I I was wondering, maybe a little bit more on tariffs.

Kathryn Graves
Kathryn Graves
Equity Research Scientific Associate at UBS Group

How are you thinking about the possible impact to your development pipeline? Has the tone of negotiation shifted at all following April 2? Are there any concerns for things like projects getting delayed or paused at all or anything like that?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

I I think that's a very good point. I think, clearly, there's a lot more discussions on build to suit projects. Everything that we have right now is kind of priced out with GMP pricing. So pricing's locked in prior to the prior to the implementation of the tariffs. But as we go forward, there's no doubt that people are going to be looking at those things.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Like, you you know, for what we have in our forecast right now, we feel good about because we've got kind of locked in pricing. But we're we're quite confident that it will at least be a topic of discussion, as we go forward, whether that's lumber, steel, equipment, all of those things are gonna be brought to bear, and we'll be we'll just have to see kind of as we go forward. Right now, as I said, we feel good about where we're at right now, and we'll just see how how it impacts as we move forward.

Kathryn Graves
Kathryn Graves
Equity Research Scientific Associate at UBS Group

Got it. Thank you for the color.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Thank you.

Operator

Our next question will come from Mitch Germain with Citizens Capital Markets and Advisory. You may now unmute your audio and ask your question.

Mitch Germain
MD - Real Estate Research at JMP Securities LLC

Hey. Good morning.

Mitch Germain
MD - Real Estate Research at JMP Securities LLC

I

Mitch Germain
MD - Real Estate Research at JMP Securities LLC

think there was some previous commentary by an industry group, in the theater industry about a significant amount of capital spend, several billion dollars of capital spend plan, you know, for theater upgrades. And I'm curious if that process is underway and you think there could be any disruption given what's happening in the macro.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Oh,

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

the process is already underway, and and we're seeing it impacts some of our properties. So that's but it's not it it it's literally kind of what we would call kind of expansions into large format and and IMAX and new seating and things. We don't really see an impact to that nor do we see a lot yet that that's being impacted by anything related to tariffs that most of those commitments have already been ordered and made. So they they laid them out, you you know, in in future schedules. So I haven't seen any backup of that yet, Greg.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

But No. And and, Mitch, I would say, you know, even though it's a big number they announced, it's per house a relatively limited impact. So it doesn't take that long to make these conversions, and they're all, economically beneficial. So we're very supportive of that.

Mitch Germain
MD - Real Estate Research at JMP Securities LLC

Great. That's helpful. And then I I'm I hope I didn't miss it, Mark. Was there anything specific that drove the, percentage rent activity in the first quarter?

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Yes. As I mentioned, we had $2,900,000 of prior period percentage rents that hit percent of rents and interest. And then addition, we had, some additional percentage rents. As I mentioned, you know, we took up our guidance $3,500,000 A lot of that relates to what happened in Q1. And when I say it's percentage rents and percentage interest, it hits two different line items.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

You know, percentage rent hits rental income and percentage interest hits mortgage and financing income, but that that was the big, big delta.

Operator

Our next question will come from Yupal Rana with KeyBanc Capital Markets. You may now unmute your audio and ask your question.

Upal Rana
Upal Rana
Senior Equity Research Analyst - US REITs at KeyBanc Capital Markets

Great. Thank you. Greg, maybe you can talk about the strength of the consumers today and if you're seeing any impact on consumer spend, at least in the near term. The longer term chart that you provided was helpful, but just curious what you're seeing today as it relates to consumer spend and behavior. Thanks.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Yeah. I I think it's it's really, again, resilient. I I mean, we're seeing pockets where it's stronger and pockets where we're seeing weakness. I would say if anything is going through there, it's on the food spend. Even when we we look at our eat and play, it's the kind of the eat side of that that's kinda down.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

So people are still enjoying the activities, but not spending as much on that. So, again, it that's consistent with what we've seen historically. So we we still see, you you you know, like I said, ski We saw fitness and wellness up. We saw eat and play down slightly. So it's it's this is the benefit of having a diversified portfolio and the experiential, and it manifests itself out in the coverage kinda stayed the same.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

But, right now, there may be, you you you know, some real pressure at the lowest end of the consumer. But in that lower middle through the middle, we still feel it's it's it's, you know, highly supportive. We're when we talk to our tenants, they they say that. So, you you you know, as long as you you know, the key indicator when we talk to them, as long as employment remains good, people are incorporating these experiential opportune or avenues and venues into their everyday lives, and we see no reason for that to not continue. But, Greg, maybe

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Yeah.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

I think probably the best metric is we've had five straight weeks of a hundred million dollars or more at the box office, including two weeks of over $200,000,000. So people are still spending. And as we mentioned, you know, both Cinemark and AMC reported in the past week, and they have per caps of around $8 that are holding steady through the first quarter. So, you know, that's a real time indicator that things aren't so bad.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

And the other metric I'd point to is the fact that we're, you know, two times cover across the portfolio. That's higher than 1.9 pre COVID. So we're we're still tracking on a trailing twelve month basis higher than pre COVID.

Upal Rana
Upal Rana
Senior Equity Research Analyst - US REITs at KeyBanc Capital Markets

Okay, great. Thank you. That was helpful. And then the box office has had a good start at 2Q, but there's some anticipation that we might get over to get over $4,000,000,000 in the box office this summer, which only happened once since the pandemic due to Barbie and Oppenheimer. Just curious how you anticipate the box office trending heading into the summer months and then later in the second half?

Upal Rana
Upal Rana
Senior Equity Research Analyst - US REITs at KeyBanc Capital Markets

Thanks.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Yeah. I mean, now, we do like I said, we build everything up bottom up in our analysis. I will tell you, and we tell people all this time, we are horrible at picking movie by movie. I don't think there's a person sitting in this room with me that thought Minecraft was gonna do $400,000,000, and it it will cross that this weekend. But the titles, the depth, and the quantity of titles look strong when you start to look.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

If you look at, you know, Lilo and Stitch that's coming up is now trending higher in presales than Minecraft. You know? So it it really looks like we have a good shot at setting an all time, not COVID. I'm saying all time Memorial Day weekend record with, the Mission Impossible film and Lilo and Stitch on their own doing together over 200,000,000. So, again, when you have a constant flow of product, and you've heard us talk about this many times, it's not necessarily the individual film.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

It's the stacking up films week after week and where people get into the habit and going to that film and seeing those previews drives them to go war. And we're getting back into that. So if you look at the kind of Greg's comment, if you look at eight films over the next kind of couple of months that are expected to do a hundred million or more, that means we're getting a big expected hit every weekend. And that kind of of of performance really is what drives kind of the the excitement about the summer and beyond. And then the second half of the

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

year, pardon me, looks really strong with franchises, you know, Fantastic Four, Superman, Jurassic World, Avatar ending out the year.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

So And then we got Wicked, the second half of Wicked coming in. So, I mean, there there's there there's a lot of good titles. And, again, it it's it it it's also a nice balance. We're getting back into that. You know, you've got Mission Impossible.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

You got Lilo and Stitch. You got that that drives 18 to 24 year old males, but also drives the family. And and as we get to that kind of good content and consistent number of high quality films that leads to good box office results.

Upal Rana
Upal Rana
Senior Equity Research Analyst - US REITs at KeyBanc Capital Markets

Okay. Great. Thank you.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Thank you.

Operator

Our

Operator

next question will come from Spencer Glimcher with Green Street. You may now unmute your audio and ask your question.

Spenser Glimcher
Managing Director at Green Street Advisors, LLC

Great. Can you guys hear me?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Yes.

Spenser Glimcher
Managing Director at Green Street Advisors, LLC

Okay. Excellent. Okay. Well, just one for me. As you look across your various investment opportunities as you continue recycling capital, have you noticed changes to to bid ask spreads or cap rate movements in any of the sectors you're underwriting?

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Not big movements. I mean, again, we've consistently said we're comfortably in the eights. That's kinda stayed there. And now, again, I would say, Spencer, when you look at, you you you know, quality variations may move that a a little bit, but, but not a lot of changes in the in the bid ask spread. Greg?

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

No. I think that's accurate.

Spenser Glimcher
Managing Director at Green Street Advisors, LLC

Great. Great. That's it for me. Thanks, guys.

Greg Zimmerman
Greg Zimmerman
EVP and CIO at EPR Properties

Thank you.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

Thank you.

Operator

Our last question will come from Yani Dalan with Bank of America Merrill Lynch. You may now unmute your audio and ask your question.

Analyst

Hi. Thank you. Good morning, and congrats on a great start to the year.

Analyst

Just a quick follow-up on the 2,900,000 percentage rent and participating interest true up in the first quarter. Just wanted to clarify, is that completely retroactive? Or you mentioned some type of agreements. Just curious if that impacts level of percentage rents or participations going forward.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Yes. Sort of as I mentioned, we're taking guidance of $3,500,000 2 point 9 million is prior period. So there is an incremental current year impact, to percentage rents, as we from those tenants and borrowers as well as kind of looking at the overall mix. So there's kind of two components to it. A lot of it's prior period, but there is a current year component as well.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

And I'll I'll jump in

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

and add on that. Again, a credit to our asset management staff who are kind of constantly evaluating these, and this, related to kind of discussions with these tenants and how they were calculating versus how we were calculating. It resolved favorably to our, interpretation. So not only does it impact prior periods, but it's going to benefit us as we go forward as well.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

Yeah.

Mark Peterson
Mark Peterson
Executive VP, CFO & Treasurer at EPR Properties

A lot of that conversation was about deductions that we're taking that, you know, we politely disagreed with. And and then like Greg said, we resolved that this quarter.

Analyst

Great. Thank you for clarifying.

Operator

There are no more questions, so I will now turn the call back over to Greg Silvers for any closing remarks.

Greg Silvers
Greg Silvers
Chairman and CEO at EPR Properties

I just wanna thank everyone. I appreciate the opportunity to spend time with you, and we look forward to seeing you at NAREIT in June. Thanks, everyone. Thanks.

Executives
    • Brian Moriarty
      Brian Moriarty
      Senior Vice President of Corporate Communications
    • Greg Silvers
      Greg Silvers
      Chairman and CEO
    • Greg Zimmerman
      Greg Zimmerman
      EVP and CIO
    • Mark Peterson
      Mark Peterson
      Executive VP, CFO & Treasurer
Analysts

Key Takeaways

  • In Q1 the company delivered top line revenue up 4.7% and FFO as adjusted per share up 5.3% year-over-year, and has raised its 2025 FFO per share guidance to $5.00–$5.16.
  • Management deployed $37.7 million into its experiential pipeline—adding a construction-themed attraction and a private golf club—and maintains 2025 investment spending guidance of $200–$300 million while boosting disposition guidance to $80–$120 million.
  • The theatrical exhibition portfolio shows renewed strength with Q1 box office of $1.4 billion and year-to-date Q2 box office up 17.1%, backed by a deep slate of 78 major studio releases versus 64 in 2024 and growing high-margin food & beverage revenue.
  • Portfolio credit metrics remain healthy with consolidated rent and coverage at 2.0x, reflecting the long-term resilience of affordable, experiential assets even amid economic headwinds and consumer trade-down behavior.
  • The balance sheet stands on solid footing with net debt to EBITDAre of 5.3x at the low end of target, ~97% fixed-rate debt, $207 million of available liquidity and a 3.5% dividend increase supporting a ~71% AFFO payout ratio.
AI Generated. May Contain Errors.
Earnings Conference Call
EPR Properties Q1 2025
00:00 / 00:00

Transcript Sections