EPR Properties (EPR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $173.1 million, with net income of $39.1 million, up 414% year-over-year, and diluted EPS of $0.51.

• Portfolio consists of 354 properties, 99% leased, with $6.9 billion in total investments, focused on experiential (93%) and education (7%) assets.

• Year-to-date investment spending reached $132.7 million, with $180 million committed for future experiential projects.

• Regular monthly dividend increased 3.6% year-over-year to an annualized $3.42 per share.

• Company remains selective in new investments due to higher cost of capital and market volatility.

Financial highlights

• Q2 2024 total revenue was $173.1 million, nearly flat year-over-year; net income per share rose to $0.51 from $0.10.

• FFOAA per diluted share was $1.22, down 5% year-over-year; AFFO per share was $1.20, down 8% year-over-year.

• Q2 2024 included $11.8 million in impairment charges, down from $43.8 million in Q2 2023.

• No deferred rent or interest collections recognized in Q2 2024, compared to $7.3 million in Q2 2023.

• Dividends declared were $0.855 per common share for Q2 2024.

Outlook and guidance

• 2024 FFOAA per diluted share guidance reaffirmed at $4.76–$4.96.

• Investment spending guidance maintained at $200 million–$300 million; disposition proceeds guidance raised to $60 million–$75 million.

• Percentage rent and participating interest guidance held at $12 million–$16 million.

• G&A expense guidance revised to $49 million–$52 million.

• Company will remain selective in new investments until economic and capital market conditions improve.