EPR Properties (EPR) BofA Securities 2025 Global Real Estate Conference summary

Leadership and organizational updates

• Announced CIO Greg Zimmerman's retirement in Q1 2025 and Ben Fox's appointment as new CIO, bringing industry experience and renewed energy.

• Leadership transition expected to support growth initiatives and strategic execution.

Capital recycling, acquisitions, and growth strategy

• Significant capital to be received from a pending $200 million gaming asset transaction, expected to close soon, which will reduce leverage below 5x.

• Focus shifting from development to acquisitions, targeting a $500 million annual run rate, with a robust pipeline including large $100 million+ transactions in attractions, eat-and-play, and fitness/wellness.

• Dispositions of vacant theaters largely completed, outperforming initial expectations and freeing up capital for growth.

• 2026 positioned as a key year to energize the growth engine, leveraging improved cost of capital.

Portfolio composition and sector trends

• Portfolio diversification away from theaters remains a goal, aiming for theaters to represent about 20% of assets over time.

• Theater assets have shown improved performance and coverage compared to 2019, with higher consumer spend and stable EBITDA.

• Fitness and wellness segments are resilient, with increasing trends and strong rent coverage.

• Most leases include percentage rent structures, providing inflation protection and upside as tenant revenues grow.