EPR Properties (EPR) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Opening remarks and business overview

• Focus on experiential net lease properties, including theaters, Topgolf, amusement parks, and ski resorts, with a value-driven investment approach.

• Trading at a valuation three turns below the group average, representing a larger discount than historical norms.

• Projecting 3.5% earnings growth at the midpoint for the year, with $250 million in planned investments, $100 million already underway, and no equity capital markets activity included.

• Strong, well-covered dividend with top-tier total shareholder returns over multiple timeframes.

Portfolio performance and risk management

• Theater business expected to see 10%-12% growth this year, with coverage ratios improving beyond 2019 levels.

• Non-theater portfolio coverage at 2.5x, down slightly due to asset sales but still 25% above pre-COVID levels.

• Dispositions include vacant and leased theaters, with a focus on reducing theater exposure over time.

• Targeting a reduction in theater exposure from 36% to around 20% of the portfolio, primarily through selective sales.

• Growing interest from private equity and family offices in theater assets, attracted by high yields.

Acquisition and growth strategy

• Acquisition activity for the year expected to be $200-$300 million, consistent with prior years, with $100 million already committed.

• Recent deals include Diggerland and two Andretti karting locations, with more opportunities expected in the second half.

• Focused on relationship investing and growing with proven operators, especially in the Eat and Play segment.

• Topgolf remains the largest Eat and Play exposure, with 38 out of 85 locations owned; future growth will be selective and focused on major markets.

• Andretti karting portfolio expanding to eight locations, with similar investment scope as Topgolf.