EPR Properties (EPR) Q3 2024 earnings summary

Executive summary

• Portfolio consists of 352 properties with $6.9 billion in total investments, 93% in experiential assets, and 99% leased overall, excluding properties held for sale.

• Q3 2024 revenue was $180.5 million, down from $189.4 million year-over-year; net income available to common shareholders was $40.6 million, or $0.53 per diluted share, compared to $50.2 million, or $0.66 per share, in Q3 2023.

• Investment spending in Q3 was $82 million, with year-to-date investment spending at $214.6 million; 2024 investment spending guidance is $225–$275 million.

• New $1 billion revolving credit facility was established, extending maturity to October 2028 and improving terms, enhancing liquidity and financial flexibility.

• Portfolio optimization continued with property sales totaling $65.1 million year-to-date and a focus on experiential assets.

Financial highlights

• Q3 2024 total revenue was $180.5 million, down 5% year-over-year; net income to common was $40.6 million, down 19%.

• FFO as adjusted per diluted share was $1.30, down from $1.47 in Q3 2023; AFFO per share was $1.29, also down from $1.47.

• AFFO for Q3 2024 was $99.3 million, compared to $113.3 million in Q3 2023.

• Q3 2024 dividend per common share was $0.855, annualized to $3.42.

• Recognized $12.1 million in impairment charges related to hurricane-damaged joint venture hotels in Florida.

Outlook and guidance

• 2024 FFO as adjusted per share guidance narrowed to $4.80–$4.92, up 3.2% at midpoint over 2023, excluding out-of-period deferred rent and interest collections.

• Investment spending guidance narrowed to $225–$275 million; disposition proceeds guidance increased to $70–$100 million.

• Management expects reduced investment spending in the near term due to elevated cost of capital, with future investments funded primarily from cash on hand, excess cash flow, disposition proceeds, and credit facility availability.

• Percentage rent and participating interest guidance raised to $13.5–$16.5 million.

• Net income per diluted share guidance for 2024: $2.40–$2.52.