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    EPR
    Earnings call· Mar 2026(Q1 FY26)

    EPR PROPERTIES Q1 FY26 earnings call EPR

    May 7, 2026 Source

    Executive summary

    EPR Properties Q1 FY26 — Strong Investment Momentum and Raised Guidance

    EPR Properties delivered strong Q1 FY26 results, driven by significant investment activity including a major acquisition from Six Flags, and raised its full-year FFO and investment guidance. The company highlighted the resilience of its experiential portfolio, stable rent coverage, and increasing opportunities in a competitive market, reinforcing its strategic focus on the experience economy.

    Highlights

    5

    • FFO as adjusted per share increased 5.9% to $1.26 versus the prior year.

    • AFFO per share increased 6.6% to $1.29 compared to the prior year.

    • Increased 2026 FFO as adjusted per share guidance midpoint to 6.5% growth.

    • Increased 2026 investment spending guidance to $500 million to $600 million from $400 million to $500 million.

    • Completed a $315 million acquisition of a Seven Park regional portfolio from Six Flags.

    Concerns

    2

    • Percentage rents and participating interest decreased to $2.5 million for the quarter versus $5.1 million in the prior year, primarily due to out-of-period recognition in Q1 2025.

    • Historically poor snowfall across the Western United States impacted Ski portfolio performance, though offset by outperformance in Mid-Atlantic and East Coast properties.

    Guidance & targets

    7
    CategoryTargetConfidence
    FFO as adjusted per share
    $5.37 to $5.53
    high materiality
    High
    AFFO per share
    similar percentage increase to FFO as adjusted per share
    high materiality
    High
    Investment spending
    $500 million to $600 million
    high materiality
    High
    Disposition proceeds
    $50 million to $100 million
    medium materiality
    High
    Percentage rent and participating interest income
    $18.5 million to $22.5 million
    medium materiality
    High
    G&A expense
    $56 million to $59 million
    low materiality
    High
    Other income and other expense
    range provided by giving a range for other income and other expense
    low materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Overall Portfolio
    Portfolio remains very healthy with 2x unit level rent coverage.
    Gross investment value: $7.1 billionProperties: 335Leased or operated: 99%
    		————
    Experiential Assets
    Continues to be 99% leased or operated by 54 clients.
    % of gross investment value: 94%Properties: 280Operators: 54Leased or operated: 99%
    		————
    Education Segment
    Continues to perform well and coverage remains strong.
    % of gross investment value: 6%Properties: 55Operators: 5Leased: 100%
    		————
    Theater Segment
    Benefited from an increase in both attendance and the number of films released. Studios are embracing theatrical releases more.
    North American box office gross increase: 25%
    		————

    Operational metrics

    23
    FFO as adjusted per share
    $1.265.9% increase vs prior year
    Q1 FY26

    Strong momentum established for the year.

    AFFO per share
    $1.296.6% increase vs prior year
    Q1 FY26
    Gain on real estate transactions
    $1 million
    Q1 FY26

    Recognized during the quarter from the conversion of a mortgage note receivable.

    Benefit for credit losses (related to conversion)
    $1.3 million
    Q1 FY26

    Related to the conversion of a mortgage note receivable.

    Total benefit for credit losses
    $5.6 million
    Q1 FY26

    Related to the conversion of a mortgage note receivable and improvements to property level performance and economic conditions.

    Total revenue
    $181.3 millionincreased by $6.3 million vs prior year
    Q1 FY26

    Mostly due to investment spending, rent and interest bumps, partially offset by dispositions and decrease in percentage rents.

    Percentage rents and participating interest
    $2.5 millionvs $5.1 million in prior year
    Q1 FY26

    Decrease mostly due to $2.9 million out-of-period recognition in Q1 2025.

    Interest expense net
    increased by $1.7 millionvs prior year
    Q1 FY26

    Due to an increase in average borrowings and a decrease in capitalized interest.

    Fixed charge coverage
    3.3x
    Q1 FY26
    Interest coverage ratio
    3.9x
    Q1 FY26
    Debt service coverage ratio
    3.9x
    Q1 FY26
    Pro forma net debt to annualized adjusted EBITDAre
    4.8xbelow low end of targeted range
    Q1 FY26

    Calculated by subtracting estimated net proceeds from forward sales agreement from net debt.

    Pro forma net debt to gross assets
    39%
    Q1 FY26

    On a book basis.

    AFFO payout ratio
    70%
    Q1 FY26

    For common dividend.

    Consolidated debt
    $2.9 billion
    Q1 FY26
    Cash on hand
    $68.5 million
    Q1 FY26
    Revolver capacity
    $1 billion
    Q1 FY26

    No balance drawn.

    Common shares sold via ATM
    797,422
    Q1 FY26

    Entered into a forward sales agreement in March. No shares settled as of call date.

    Monthly common dividend increase
    5.1%
    Q1 FY26

    Began with dividend payable April 15 to shareholders of record as of March 31.

    Expected AFFO payout ratio
    below 70%
    FY26

    Based on the midpoint of guidance.

    Investment completed
    $51.3 million
    Q1 FY26

    Includes VITAL Climbing Gym acquisition and committed development capital.

    Additional investment for existing experiential development and redevelopment projects
    approximately $71 million
    FY26

    Substantially all expected to fund over the balance of 2026.

    Mortgage note receivable converted to wholly owned rental property
    $70 million
    Q1 FY26

    Secured by an experiential lodging property, converted into a wholly owned rental property subject to a long-term triple net lease.

    Orderbook & backlog

    1
    Investment for existing experiential development and redevelopment projectsapproximately $71 millionMarch 31, 2026

    Substantially all expected to fund over the balance of 2026.

    Deals & partnerships

    3
    Six Flags EntertainmentAcquisition of a Seven Park regional portfolio.$315 million

    Comprises more than 1,600 acres across 6 states and Canada, includes 418 attractions, draws approximately 4.5 million visitors annually. Partnering with Enchanted Parks (US parks) and La Ronde operations (La Ronde in Montreal). Substantial majority of 7 properties closed subsequent to quarter end; remaining property (La Ronde, Canada) expected to close in Q2.

    VITAL Climbing GymAcquisition of a VITAL Climbing Gym property.included in $51.3 million Q1 investments

    Located on the Lower East Side of Manhattan.

    MargaritavilleConversion of a mortgage note receivable into a wholly owned rental property.$70 million (original mortgage note)long-term triple net lease

    Experiential lodging property.

    Risks & headwinds

    2
    Decrease in percentage rents and participating interestQ1 FY26

    $2.5 million for Q1 FY26 vs $5.1 million in Q1 FY25

    Mitigation: Primarily due to out-of-period recognition in Q1 2025, not an ongoing operational decline. Guidance for FY26 is $18.5M-$22.5M, heavily weighted to H2.

    Impact of historically poor snowfallQ1 FY26

    Impacted Ski portfolio performance in Western US

    Mitigation: Offset by significant outperformance in Mid-Atlantic and East Coast properties.

    What to watch in Q2 FY26

    5

    La Ronde acquisition closing

    Q2 FY26
    CurrentPending regulatory approval
    TargetClosed

    Why it matters

    Completion of the $315 million Six Flags portfolio acquisition, impacting portfolio diversification and investment spending.

    We expect the remaining property, La Ronde located in Canada to close in Q2.

    Q&A highlights

    6

    How much of the increased AFFO guidance came from Q1 performance, accelerated investment, or better cap rates on investments?

    Mark Peterson explained that Q1 performance contributed $0.01-$0.02. The Six Flags transaction closing better than anticipated and other investments coming in sooner with better cap rates contributed significantly. The Margaritaville conversion also added nearly $0.02 in straight-line rent benefit.

    “really, the increase is due to a couple of things. One, obviously, we raised our investment spending and paid for that via the capital raise, but there was probably $0.01 out of that increased guidance. And then I think more broadly, we got a benefit from being fairly conservative with respect to the Six Flags transaction at the end of the year because we weren't sure -- for sure it would close and when exactly it would close. So I think the ultimate outcome of that was better than anticipated. And I think the remaining investments, not just the increase for the year, but the remaining investments are coming in a little bit sooner than planned and at a better cap rate. The last thing I'll mention that impacted our FFOAA guidance was the Margaritaville conversion to a -- from a note to a lease. We got incremental straight-line rent from that, and that was probably a little under $0.02 in terms of straight-line benefit converting from a mortgage to now a 20-year lease with escalators that had some straight-line impact.”

    asked by Jana Galan · answered by Mark Peterson

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Acquisition and Portfolio Diversification

    EPR Properties completed a significant $315 million acquisition of a Seven Park regional portfolio from Six Flags, representing its largest post-COVID acquisition. This move diversifies the portfolio with market-dominant assets across six states and Canada, operated by proven partners Enchanted Parks and La Ronde operations, reinforcing the company's leadership in the attraction space.

    02

    Accelerated Investment and Pipeline Strength

    The company increased its 2026 investment guidance to $500 million to $600 million, its highest expectation since COVID, reflecting a robust pipeline across all verticals including Attractions, Fitness, and Eat & Play. This acceleration is driven by strong client relationships and an increasing willingness to transact in the current capital markets environment, with investment activity expected to be weighted more towards acquisitions.

    03

    Resilient Experiential Economy

    The portfolio's stability is underpinned by sustained growth in consumer spending on experiences, with personal consumption expenditures in key categories increasing 7% from 2024 to 2025. This trend, coupled with stable overall portfolio coverage and strong unit-level rent coverage of 2x, demonstrates the resilience of the experiential segment against macroeconomic crosscurrents.

    04

    Theater Segment Recovery and Studio Support

    The Theater segment saw a 25% increase in North American box office gross in Q1, benefiting from increased attendance and film releases. Recent agreements by Writers & Screen Actors' Guilds, commitments from Amazon MGM and Universal to standard theatrical windows, and Netflix's move to wide theatrical releases for Narnia, signal renewed studio confidence and an enduring role for theatrical exhibition.

    05

    Capital Recycling and Balance Sheet Strength

    EPR is actively recycling capital, increasing disposition guidance to $50 million to $100 million, primarily targeting non-core assets and potentially some theater properties. The balance sheet remains strong with $2.9 billion in consolidated debt, a blended coupon of 4.4%, and $68.5 million cash on hand, with no balance drawn on its $1 billion revolver, providing ample liquidity for continued growth.

    06

    Innovative Financing Structures

    The company plans to continue employing convertible or similar mortgage structures selectively, as exemplified by the conversion of a $70 million mortgage note receivable into a wholly-owned rental property. This strategy provides pathways to real estate ownership and leverages existing portfolio opportunities, with over 80% of the current mortgage book being convertible.

    AI-generated summary of the company’s earnings call. Not investment advice.