EPR Properties (EPR) Earnings
EPR Properties is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $0.82. EPR has beaten EPS estimates in 6 of its last 12 reported quarters (average surprise +11.2% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $0.74 | $0.79 | +6.0% | $169M | +6.9% |
| May 7, 2026 | $0.76 | $1.26 | +65.8% | $155M | +3.4% |
| Feb 26, 2026 | $1.29 | $0.87 | -32.3% | $219M | +21.6% |
| Oct 29, 2025 | $1.32 | $1.39 | +5.3% | $170M | -6.4% |
| Jul 30, 2025 | $1.25 | $1.24 | -0.8% | $166M | -10.2% |
| Feb 26, 2025 | $0.66 | $1.22 | +84.8% | $164M | +1.7% |
| Jul 31, 2024 | $1.21 | $1.20 | -0.8% | $173M | +10.6% |
| May 1, 2024 | $1.14 | $1.12 | -1.8% | $167M | +9.1% |
| Feb 28, 2024 | $1.18 | $1.16 | -1.7% | $172M | +14.0% |
| Oct 25, 2023 | $1.44 | $1.47 | +2.1% | $175M | +4.0% |
| Aug 2, 2023 | $1.32 | $1.31 | -0.8% | $173M | +25.2% |
| Feb 22, 2023 | $1.25 | $1.27 | +1.6% | $162M | +13.2% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 30, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Financial Performance * Q2 2026 total revenue hit $196.1 million, a 10.1% increase year-over-year (YoY) * Adjusted FFO per share was $1.42, a 12.7% YoY increase; AFFO per share was $1.43, a 15.3% YoY increase * For H1 2026, adjusted FFO per share rose 9% YoY to $2.67, while AFFO per share rose 11.1% YoY to $2.71 * Credit metrics remain strong: fixed charge coverage of 3.4x, interest/debt service coverage of 4.0x, pro forma net debt to annualized adjusted EBITDA of 5.1x (at the low end of the 5.0x to 5.6x target range), AFFO dividend payout ratio of 65% - Investment Activity * Q2 2026 investment totaled $440.8 million (average initial cash yield of ~8.5%), bringing year-to-date investment to $492.2 million, a post-COVID single-quarter high * Investments include the Six Flags seven-property theme park acquisition, new attractions (golf, hot springs), and the Netflix House immersive experience in King of Prussia, PA; Netflix is an A-rated credit partner * 92 million in additional investment is earmarked for existing development/redevelopment projects, with ~65 million expected to be deployed in the remainder of 2026 * ~50% of the investment pipeline comes from repeat tenant relationships, with nearly all opportunities sourced via direct, non-marketed relationships - Balance Sheet and Capital Structure * Entered into a new $1.6 billion amended and restated credit agreement to address 2026 maturities, with support from an expanded bank group * As of quarter end, $3.3 billion in consolidated debt, 91% of which is fixed-rate (via swaps) with a blended 4.4% coupon * Strong liquidity: $16.2 million in cash, $640 million available on the $1 billion revolver, plus additional capacity from the new term loan and unsettled ATM forward sales * Entered into $23.4 million in new ATM forward sales in Q2 at an average price of $59.70 per share, with $69.5 million in total unsettled forward proceeds as of quarter end - Portfolio Strategy * Continuing portfolio diversification, reducing theater concentration while growing higher-growth experiential segments * Disposition activity has shifted from defensive sales to opportunistic sales, as legacy vacancies have been largely reduced
Guidance
- 2026 adjusted FFO per share guidance increased to $5.41 to $5.57, from the prior range of $5.37 to $5.53, representing a 7.2% increase over 2025 at the midpoint. AFFO per share is expected to increase by a similar percentage. - 2026 investment spending guidance increased to $600 million to $700 million, from the prior range of $500 million to $600 million, reflecting stronger than expected first half investment activity and a larger available pipeline. Investment activity is still expected to be weighted more toward acquisitions than development. - Disposition guidance is maintained at $50 million to $100 million. - Percentage rent and participating interest income guidance is maintained at $18.5 million to $22.5 million. - G&A expense guidance is maintained at $56 million to $59 million. - A new range of $40 million to $50 million for both other operating income and other operating expense is provided, with no change to the expected net difference between the two line items.
Segment performance
EPR Properties' total gross investment portfolio value was $7.5 billion across 346 properties, 99% leased/operated as of Q2 2026. 95% of portfolio value is held in core experiential segments, with the remaining 5% in the Education segment: 1. **Theater**: ~33% of the total portfolio (down from 36% last quarter). Ticket sales are up 10% year-over-year, driven by strong content and growing attendance from younger demographics (87% of Gen Z and 82% of millennials attended at least one theater in the past 12 months). Box office is up 10% year to date. 2. **Eat and Play**: Rent coverage remains stable, with positive operational trends emerging at Topgolf following post-separation operational changes from Callaway. Portfolio-wide rent coverage across all segments holds steady at 2x. 3. **Attractions**: Delivered strong Q2 performance, reversing 2025 negative impacts from poor weather and geopolitical factors. Includes the newly acquired former Six Flags 7-property portfolio and Netflix House immersive experience. 4. **Fitness and Wellness**: Continued solid performance, with stabilizing trends at recently renovated and expanded properties. Consumer demand holds up as the category is increasingly viewed as non-discretionary, with a slight pickup in available acquisition opportunities in the segment. 5. **Education**: 5% of portfolio value, 55 properties 100% leased by 5 operators. Remains healthy despite industry-wide labor headwinds, and management is actively seeking to reduce exposure to this segment.
Risks & headwinds
- Investment transaction closing and yield depend on market conditions and deal sourcing timelines, with acquisition timing and cap rate variability listed as a key factor that could push full-year results to the low or high end of guidance. - Weather-related volatility impacts performance of seasonal attractions, most notably the Northern California ski property which negatively impacted Q2 2026 percentage rent. - Box office performance is dependent on the commercial success of tentpole releases, creating near-term variability in percentage rent collections. - The education segment faces ongoing industry-wide labor headwinds. - Volatility in debt capital markets could impact future financing costs and availability, though management noted investment yields have held steady to date.
Analyst Q&A
Q: The 50 bps higher average initial yield this quarter was noted, with pricing said to be steady. Is the yield increase from asset mix, and will yields stay steady in the pipeline? /
A: Management confirmed that yields have stayed in the historically guided low-to-mid 8% range, with the quarter's slight uptick driven by mix rather than a market shift, and that the same yield range is expected for the full pipeline. On a follow-up about guidance magnitude, management explained the 4 cent full-year guidance increase: ~3.5 cents comes from higher investment spending and better-than-expected portfolio performance (lower bad debt than anticipated), and 0.5 cents comes from the one-time Q2 defeasance fee income, with timing of percentage rent collections creating no net change to full-year guidance.
Q: With the company's share price trading above recent ATM issuance levels, does stronger capital access allow for accelerating the acquisition pipeline, and what is the funding strategy mix? /
A: Management noted the company's 2026 plan is already fully funded, with leverage at only 5.1x (rising to just 5.2x even if no additional equity is raised) giving full flexibility to access capital opportunistically. The typical incremental funding mix targets 60% equity and 40% debt; the company is not forced to raise equity, but incremental issuance at current prices is accretive and will be used to fund additional attractive pipeline opportunities if they arise.
Q: What is early performance of the newly acquired former Six Flags parks, and what is the expansion opportunity for the Netflix House concept? /
A: The parks have only been open for one month under new operation, but initial indicators including guest reviews, cleanliness, ride availability, and operator feedback are positive, with full operational changes rolling out after the 2026 summer season, and overall attractions are outperforming 2025 levels. There are currently three Netflix House locations, and management is in ongoing contact with Netflix to evaluate future expansion opportunities as the concept matures.
Q: Bad debt expense was cited as a driver of better-than-expected performance. How does current bad debt compare to original projections? /
A: Management originally budgeted 50 to 75 basis points of portfolio bad debt for 2026, but current run rate is closer to 40 basis points. The better performance reflects broader portfolio resiliency, with no major tenant credit issues emerging that were not already anticipated in conservative original projections.
Q: What is the current acquisition landscape, and is there still developer interest for redeveloping theater assets? /
A: Management sees solid acquisition opportunities across all core experiential verticals, with a slight pickup in fitness and wellness opportunities. Competition is consistent, with primary competitors being family offices and alternative capital rather than traditional net lease REITs. Developer interest for high quality theater real estate for densification/redevelopment persists, and there is also strong investor interest for education assets, which management is looking to sell down.