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Investing.com - Wells Fargo upgraded EPR Properties (NYSE:EPR) from Underweight to Equal Weight on Thursday, setting a price target of $56.00. The REIT, which currently offers a 6.4% dividend yield and has maintained dividend payments for 29 consecutive years, has demonstrated strong financial health according to InvestingPro analysis.
The upgrade follows EPR’s recently announced Genting Malaysia land sale of approximately $200 million at what Wells Fargo described as an "attractive yield." This transaction has helped offset concerns that EPR missed its window to raise equity after the stock briefly reached $60 per share. With impressive gross profit margins of 91.5% and a current market cap of $4.2 billion, EPR shows solid fundamental strength. InvestingPro subscribers can access detailed analysis and 8 additional key insights about EPR’s financial outlook.
The land sale is expected to support funding of investments toward the high end of the company’s guidance, according to Wells Fargo’s analysis.
Wells Fargo also noted that EPR will see an AMC rent reset of $3 million in the second half of 2025 and another $3 million in 2026, while Topgolf rent coverage has improved year-over-year.
Despite the upgrade, Wells Fargo indicated that concerns remain around the box office performance and Six Flags, which are part of EPR’s entertainment property portfolio.
In other recent news, EPR Properties reported impressive financial results for the second quarter of 2025, exceeding analyst expectations. The company posted an earnings per share (EPS) of $0.91, significantly higher than the forecasted $0.69, representing a 31.88% surprise. Additionally, EPR Properties surpassed revenue projections with $178.1 million, compared to the expected $144.56 million. Despite these strong results, KeyBanc downgraded EPR Properties from Overweight to Sector Weight, citing concerns over the sustainability of box office growth, even though the theater industry is showing signs of recovery. Meanwhile, Raymond James raised its price target for EPR Properties from $57 to $62, maintaining a Strong Buy rating. The firm highlighted that EPR Properties’ second quarter results were in line with expectations and that the company upheld its full-year Funds From Operations As Adjusted (FFOAA) guidance, suggesting a 4.3% year-over-year growth at the midpoint. These developments reflect a mixed sentiment among analysts regarding EPR Properties’ future prospects.
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