EPR Properties (EPR) Nareit REITweek: 2025 Investor Conference summary

Business performance and market trends

• Experiential properties, especially theaters, have shown strong recovery and growth, with record-breaking box office weekends and increased consumer spending per visit since 2018.

• The ski business has stabilized due to the widespread adoption of season passes, leading to more predictable revenue and strong regional performance.

• Eat-and-play venues like Topgolf remain robust, with a strategic shift toward fewer but higher-performing units.

• The company consistently ranks among the top performers in triple-net REITs over multiple timeframes.

• Consumer demand for experiential offerings remains resilient, even during economic downturns, supporting portfolio stability.

Strategic portfolio management

• Ongoing efforts to reduce concentration in theaters (currently 37% exposure) and early childhood education to enhance portfolio diversity.

• Recent asset sales include 27 theaters over four years and education properties, with proceeds recycled into core experiential assets.

• Theater asset sales are achieving real estate value or cap rates around 9%, while education assets sold at a 7.4% cap.

• Most low-performing or vacant theaters have already been addressed, with minimal expected future impact.

• Strategic relationships with operators like Six Flags and Cedar Fair are being leveraged for future opportunities as the industry rationalizes assets.

Financial policy and growth outlook

• Dividend payout ratio was reset post-COVID to 70%, retaining more cash for reinvestment and supporting $250 million in annual investments without new equity issuance.

• Free cash flow and disposition proceeds are fueling growth, with leverage maintained at the low end of the target range.

• Growth for the year is projected at over 4%, outpacing peers, with low execution risk due to retained cash flow and percentage rent participation.

• Investment pipeline is strong across most verticals, with recent expansions in golf, attractions, fitness, and wellness.

• Long-term growth targets include $500–$600 million in annual investments and double-digit total shareholder returns, driven by acquisition growth and lease escalators.