EPR Properties (EPR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 4.7% year-over-year to $175.0 million, with net income to common shareholders up 5.5% to $59.8 million and FFO as adjusted per share up 5.3% to $1.19.

• AFFO per share increased 8.0% to $1.21, and portfolio occupancy remained strong at 99% leased or operated.

• Investment spending reached $37.7 million, including a $14.3 million acquisition in New Jersey and new golf and experiential projects.

• The company advanced its capital recycling strategy, selling theatre and education assets for $70.8–$78.9 million in net proceeds and redeploying capital into experiential sectors.

• Increased monthly dividend by 3.5% to $0.295 per share, effective April 2025.

Financial highlights

• Net income for Q1 2025 was $65.8 million, up from $62.7 million in Q1 2024; rental revenue increased to $146.4 million.

• FFO as adjusted totaled $91.7 million (up 7.0%), and AFFO reached $92.9 million (up 8.5%).

• Percentage rents rose to $3.3 million, with $1.1 million recognized from one early childhood education tenant.

• Net proceeds from dispositions totaled $78.9 million, with a net gain on sale of $9.4 million.

• Cash on hand was $20.6 million, with $105 million drawn on a $1 billion revolver.

Outlook and guidance

• 2025 FFO as adjusted per share guidance raised to $5.00–$5.16, up from $4.94–$5.14.

• Investment spending guidance for 2025 confirmed at $200–$300 million.

• Disposition guidance for 2025 increased to $80–$120 million from $25–$75 million.

• Percentage rent and participating interest income guidance increased to $21.5–$25.5 million.

• Management expects to maintain leverage levels and be selective in new investments until economic conditions improve.