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Introduction & Market Context
EPR Properties (NYSE:EPR), the self-described "Diversified Experiential REIT," presented its second quarter 2025 earnings results on July 31, 2025, showing continued momentum in its experiential property portfolio. Despite reporting solid financial growth and maintaining its full-year guidance, the stock was trading down 1.39% in premarket at $55.90.
The company’s Q2 results build on the strong performance seen in Q1, where EPR beat analyst expectations with earnings per share of $0.78 against a forecasted $0.61. The REIT’s strategy of focusing on experiential properties continues to yield positive results as consumer spending in entertainment and recreation remains resilient.
Quarterly Performance Highlights
EPR Properties reported total revenue of $178.1 million for Q2 2025, representing a 2.9% increase compared to the same period in 2024. Net income available to common shareholders saw a substantial jump of 78.0% to $69.6 million, while FFO (Funds From Operations) as adjusted per share grew 3.3% to $1.26.
As shown in the following financial highlights table:
For the first six months of 2025, EPR’s performance remained strong with total revenue of $353.1 million, up 3.8% year-over-year. Net income available to common shareholders increased by 35.2% to $129.4 million, and FFO as adjusted per share rose 4.7% to $2.45.
The six-month financial performance is illustrated in this table:
The company’s financial health is further demonstrated by its solid key ratios, including a fixed charge coverage of 3.3x, interest coverage of 3.9x, and net debt to adjusted EBITDAre of 5.0x.
Portfolio and Investment Strategy
EPR’s portfolio consists of approximately $6.9 billion in total investments across 329 properties, with an impressive 99% occupancy rate. The experiential segment, which accounts for 94% of total investments, continues to be the company’s primary focus.
The following slide provides a comprehensive overview of the portfolio:
A significant driver of EPR’s experiential portfolio performance has been the rebounding box office, which saw a 37% increase in Q2 2025 compared to 2024, reaching $2.7 billion. Several blockbuster titles contributed to this growth, including "A Minecraft Movie" ($424M), "Lilo & Stitch" ($419M), and "Sinners" ($279M). The company confirmed its 2025 North American Box Office Gross expectations of $9.3-9.7 billion, supported by a strong film slate for the remainder of the year.
Investment spending for Q2 2025 totaled $48.6 million, bringing the year-to-date total to $86.3 million. Notable investments included the company’s first traditional golf investment and the acquisition of a second Pinstack Eat & Play venue. Management indicated that improved cost of capital is enabling an increased investment spending cadence, with particularly strong opportunities in the fitness and wellness categories.
Financial Position and Outlook
EPR Properties has maintained its 2025 FFO as adjusted per share guidance at $5.00-$5.16, reflecting confidence in its operational strategy despite market fluctuations.
The company’s capital recycling strategy has exceeded expectations, leading to a revision in disposition proceeds guidance from $80-120 million to $130-145 million. During Q2, EPR sold a vacant former Regal theatre in California to Costco (NASDAQ:COST) for net proceeds of $24 million, along with two theatre properties to a smaller operator at a 9% cap rate. Total (EPA:TTEF) proceeds from these sales amounted to $35.6 million, generating a net gain of $16.8 million.
On the debt front, EPR reported $2.8 billion in total debt, with $2.4 billion either fixed rate or fixed through interest rate swaps at a weighted average of 4.3%. The company fully repaid $300 million of senior unsecured notes at maturity on April 1, 2025, using borrowings under its revolving credit facility. As of June 30, 2025, EPR had $13.0 million in unrestricted cash and $405.0 million outstanding on its $1 billion revolver, providing substantial liquidity for future investments.
Forward-Looking Statements
Looking ahead, EPR Properties remains optimistic about its experiential property strategy. The company highlighted its investment pipeline, which includes both existing and new partners across a range of deal sizes, with the potential for larger transactions. Management expressed particular enthusiasm for opportunities in the fitness and wellness sector, citing deep relationships in this space.
The company’s experiential lodging and attractions segments are performing well, with all three of EPR’s hot springs resorts ranked in the top 10 in the U.S. according to USA Today. The Springs Resort in Pagosa Springs, Colorado, achieved the top ranking nationwide.
EPR’s strategic focus on experiential properties appears well-positioned to capitalize on continued consumer demand for entertainment and recreational experiences, even as the stock faces some short-term pressure in the market.
Full presentation:
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