EPR Properties (EPR) Q3 2024 earnings summary

Executive summary

• Portfolio consists of 352 properties with $6.9 billion in total investments, 99% leased overall, and 93% of investments in experiential assets; education assets make up 7%.

• 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 ($0.53 per share), down from $50.2 million ($0.66 per share).

• FFOAA per diluted share for Q3 2024 was $1.30, AFFO per share was $1.29, both down from $1.47 in Q3 2023.

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

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

Financial highlights

• Q3 2024 total revenue: $180.5 million (down 5% year-over-year); net income to common: $40.6 million (down 19%); FFO as adjusted: $100.4 million (down 11%); AFFO: $99.3 million (down 12%).

• Q3 2024 FFOAA per share: $1.30; AFFO per share: $1.29; nine-month FFOAA per share: $3.64; AFFO per share: $3.61.

• Q3 2024 dividend per common share: $0.855, annualized to $3.42 (up 3.6% year-over-year).

• 2023 results included $19.3 million in deferred rent/interest collections; no such collections in Q3 2024.

• Percentage rents rose to $5.9 million from $2.1 million, driven by theater and other tenant performance.

Outlook and guidance

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

• 2024 investment spending guidance is $225–$275 million; disposition proceeds guidance raised to $70–$100 million.

• Box office guidance for 2024 raised to $8.3–$8.7 billion, reflecting a stronger film slate.

• Management expects reduced near-term investment spending due to higher capital costs, with future investments funded from cash, excess cash flow, dispositions, and credit facility.

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