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On Thursday, JMP analysts maintained a stable outlook on EPR Properties (NYSE:EPR) with a Market Perform rating. The commentary from JMP focused on EPR’s projections for the North American box office, which remain unchanged despite a softer performance in the first quarter of 2025. EPR’s initial forecast ranged from $9.3 billion to $9.7 billion. According to InvestingPro data, EPR currently trades near its 52-week high of $54.25, with the stock showing impressive momentum through a 36% return over the past year.
The analysts at JMP also addressed the potential impact of the Regal percentage rent clause, which is contingent on unit-level performance exceeding a $220 million threshold for the fiscal year ending in July. Despite this, EPR anticipates its total percentage rent, inclusive of Regal’s contribution, to be between $18 million and $22 million. JMP’s estimates harmonize with the midpoint of EPR’s projection, which they consider to be reasonable. The company maintains strong financial fundamentals, with InvestingPro analysis showing an impressive gross profit margin of 91.4% and a "GREAT" overall financial health score.
According to JMP, the stability of EPR’s forecast allows them to maintain their adjusted Funds From Operations (FFO) per share estimates for 2025 and 2026 at $5.06 and $5.24, respectively. This assessment indicates that the analysts see no need to alter their expectations for EPR’s financial performance over the next two years.
EPR’s focus on the entertainment and recreational industries, primarily through investments in megaplex theatres, entertainment retail centers, and family entertainment centers, positions it as a notable player in the real estate investment trust (REIT) market. The company’s financial health is often gauged by metrics like FFO, which provide insight into the cash flow generated by its operations.
The analyst’s reiteration of the Market Perform rating suggests that EPR’s stock is expected to perform in line with the broader equity market, according to JMP’s analysis. Investors typically monitor such ratings to inform their investment decisions, alongside other factors and market dynamics.
In other recent news, EPR Properties reported a significant earnings miss for Q4 2024, with an EPS of -$0.19 compared to the forecasted $0.64. However, the company achieved a revenue of $177.2 million, surpassing the forecast of $143.8 million. Despite the earnings miss, EPR Properties continues to focus on strategic acquisitions, including Diggerland USA and Water Safari Resort. RBC Capital Markets has maintained an Outperform rating for EPR Properties, raising the price target from $50.00 to $58.00, reflecting optimism about the company’s growth prospects. The analyst at RBC, Michael Carroll, emphasized stable organic growth and potential improvements in the company’s cost of capital. EPR Properties has provided guidance for 2025, projecting FFO adjusted per share between $4.94 and $5.14, with anticipated earnings growth of 3.5%. The company plans to invest $200-300 million in 2025, focusing on expanding its experiential portfolio. These developments highlight EPR Properties’ strategic direction and financial performance outlook.
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