EPR PROPERTIES Q1 FY2025 earnings call

• First quarter results: Top line revenue up 4.7%, FFO as adjusted per share up 5.3% year-over-year; increasing 2025 earnings guidance.
• Investment pipeline: Deployed capital into accretive opportunities, introduced 2 new experiential asset types (construction theme attraction, private golf club).
• Portfolio strategy: Advancing capital re-sizing strategy by selling theater and education assets and redeploying into experiential properties.
• Box office: Q1 box office down but Q2-to-date strong with films like Minecraft, Sinners; 2025 box office estimate $9.3B-$9.7B.
• Other segments: Ski properties, eat & play, fitness and wellness, education portfolio performance; Q1 investment spending, acquisitions (Diggerland USA, golf club, Penn Stack eat & play venue).

EPR Properties' first quarter results show continued strength. The experiential portfolio accounts for approximately $6.4 billion, which is 94% of total investments, with 276 properties and 99% leased or operated. The education portfolio has 55 properties, all 100% leased. Ski properties delivered solid results with Eastern ski areas seeing revenue and EBITDARM growth in Q1 and trailing 12-month periods due to good snow year. The eat & play sector had year-over-year declines but remains healthy. Fitness and wellness investments showed revenue and EBITDARM increases in trailing 12-months through March 2025.

• Increased 2025 FFOs adjusted per share guidance to $5.00-$5.16 from $4.94-$5.14.
• Investment spending guidance remains $200M-$300M.
• Disposition guidance revised to $80M-$120M from $25M-$75M.
• Percentage rent and participant interest income guidance increased to $21.5M-$25.5M from $18M-$22M.
• G&A expense guidance increased to $53M-$56M from $52M-$55M.
• Monthly common dividend increased by 3.5%.

• Possible tariffs impacting the film industry and development pipeline, including potential delays or pauses in build-to-suit projects due to materials like lumber, steel, equipment.

Q: On the golf investment, can you give more color on yields, deal structure?

A: It's a private club with reliable income flow, flexible deal structure, growing operator. We spent time understanding the industry and developing deep roots.

Q: On dispositions, nature of buyers and mortgage receivables?

A: Robust process with multiple bids, private fund specializing in education; some mortgages may be extended.

Q: On investment pipeline and types of opportunities?

A: Depth and breadth in eat & play, fitness and wellness, golf; forward commitments for funding.

Q: On box office trends and tariffs impact?

A: Box office strong with upcoming films; tariffs may affect build-to-suit projects but current forecast is locked in.