Breaking Down EPR Properties (EPR) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on EPR Properties? Wondering how the company's financial decisions and market performance might affect your investments? In 2024, EPR Properties reported a revenue of $688.25 million and earnings of $121.92 million. With investment spending of $263.9 million throughout 2024 and a forward-looking 2025 guidance, what does this mean for the company's financial health and future prospects? Let's delve into the key insights that can help you make informed decisions.

EPR Properties (EPR) Revenue Analysis

EPR Properties (EPR) operates as a specialty real estate investment trust (REIT) that focuses on experiential properties. Understanding the sources and trends in its revenue is crucial for investors. Here's an analysis of EPR's revenue streams:

EPR Properties primarily generates revenue by leasing its properties to tenants involved in various experiential sectors. These sectors include:

• Theatres: Movie theaters are a significant part of EPR's portfolio.
• Attractions: This includes amusement parks, water parks, and other recreational venues.
• Experiential Lodging: Hotels and resorts that offer unique experiences.
• Gaming: Casino and entertainment complexes.
• Other Experiential Locations: A variety of other properties designed for unique experiences.

EPR Properties (EPR) total revenue for the fiscal year 2024 was reported at $679.9 million, reflecting a decrease of $14.7 million from the previous year. This downturn was primarily influenced by a notable reduction in other income, which fell by $18.8 million. However, this decrease was partially mitigated by an increase in income from percentage rents, which rose by $4.1 million.

Here is a breakdown of the revenue contribution by segment for the year 2024:

• Theatres: Represented approximately 48% of the total revenue.
• Attractions: Contributed around 34% to the overall revenue.
• Experiential Lodging: Accounted for roughly 9% of the total revenue.
• Other: The remaining portion of revenue came from other experiential locations and sources.

Analyzing changes in revenue streams helps in understanding the company’s performance and future prospects. The following table summarizes EPR's revenue streams for the fiscal year 2024:

Understanding EPR Properties' mission, vision, and core values can provide additional context for their strategic decisions. You can find more details at: Mission Statement, Vision, & Core Values of EPR Properties (EPR).

EPR Properties (EPR) Profitability Metrics

Assessing the financial health of EPR Properties (EPR) involves a detailed examination of its profitability metrics. Key indicators such as gross profit, operating profit, and net profit margins provide insights into the company's ability to generate earnings from its revenue and manage its expenses. Analyzing these metrics over time helps to identify trends and assess the sustainability of EPR's profitability.

For the fiscal year 2024, details on EPR Properties' profitability are essential for investors. While specific 2024 data requires up-to-the-minute financial reporting, we can contextualize this with previous performance and industry benchmarks.

Here's what to consider when evaluating EPR's profitability:

• Gross Profit Margin: This ratio indicates how efficiently EPR generates revenue from its investments in entertainment, experiential, and education properties after accounting for the cost of goods sold.
• Operating Profit Margin: This metric reflects EPR's earnings before interest and taxes (EBIT) as a percentage of revenue, illustrating the company's profitability from its core operations.
• Net Profit Margin: The net profit margin shows the percentage of revenue that remains after all expenses, including interest and taxes, have been paid.

To provide a clearer picture, let's consider a hypothetical (but structurally sound) example based on how such data might be presented:

Keep in mind that these are hypothetical figures used to illustrate how profitability metrics are tracked and compared over time. Real-time data for 2024 would be available in EPR Properties' financial reports.

When evaluating EPR Properties' operational efficiency, several factors should be considered:

• Cost Management: How effectively EPR manages its operating expenses, including property maintenance, administrative costs, and other overhead.
• Gross Margin Trends: Monitoring the trend in gross margins can reveal whether EPR is improving its ability to generate profit from its revenue streams.

Comparing EPR's profitability ratios with industry averages provides valuable context. If EPR's margins are higher than its peers, it may indicate superior operational efficiency or a more favorable business model. Conversely, lower margins may signal areas where the company needs to improve its performance.

For more insights into EPR Properties' financial health, you can check out this resource: Breaking Down EPR Properties (EPR) Financial Health: Key Insights for Investors

EPR Properties (EPR) Debt vs. Equity Structure

Understanding how EPR Properties balances debt and equity is crucial for investors. This insight reveals the company's financial strategy and risk profile. Let's delve into the specifics of EPR's debt levels, ratios, and financing activities.

As of December 31, 2024, EPR Properties' balance sheet reflects a significant debt presence. The company reported total assets of approximately $6.64 billion. Total liabilities amounted to $3.23 billion, with total equity of $3.41 billion. This results in a debt-to-equity ratio that warrants a closer look to understand EPR's financial leverage.

Here's a breakdown of EPR Properties' debt levels:

• Long-term debt: As of December 31, 2024, EPR Properties had approximately $2.98 billion in long-term debt outstanding.
• Short-term debt: The company's short-term debt, representing obligations due within one year, totaled around $24.74 million.

The debt-to-equity ratio is a key metric in assessing a company's financial leverage. As of December 31, 2024, EPR Properties' debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Liabilities / Total Equity = $3.23 billion / $3.41 billion = 0.95

A debt-to-equity ratio of 0.95 indicates that EPR Properties uses approximately 95 cents of debt for every dollar of equity. Whether this is high or low depends on industry standards and the company's specific circumstances. Compared to other REITs, this ratio places EPR Properties in a moderate leverage position.

Recent financial activities provide insights into EPR Properties' debt management:

• Debt Issuances: In January 2024, EPR Properties completed a public offering of $350 million aggregate principal amount of its 6.000% Senior Notes due 2034. The company intended to use the net proceeds to repay amounts outstanding under its unsecured revolving credit facility and for general corporate purposes.
• Credit Ratings: As of April 2024, EPR Properties holds a credit rating of Ba1 from Moody's and BBB- from Standard & Poor's. These ratings reflect the agencies' assessment of EPR's ability to meet its financial obligations.
• Refinancing Activity: There were no significant refinancing activities beyond the aforementioned debt issuances.

EPR Properties strategically balances debt and equity to fund its growth and operational needs. The company's approach involves:

• Maintaining a diversified portfolio of experiential properties to generate stable cash flows.
• Utilizing debt financing to capitalize on investment opportunities while maintaining financial flexibility.
• Issuing equity to strengthen its balance sheet and reduce leverage when appropriate.

Here is a table summarizing key financial data for EPR Properties as of December 31, 2024:

For more detailed insights into EPR Properties' financial health, you can read: Breaking Down EPR Properties (EPR) Financial Health: Key Insights for Investors.

EPR Properties (EPR) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For EPR Properties (EPR), a real estate investment trust (REIT) specializing in experiential properties, assessing these metrics provides valuable insights for investors.

Current and Quick Ratios:

These ratios offer a snapshot of EPR's ability to cover its current liabilities with its current assets. While specific 2024 figures require up-to-date financial data, the trend and context from previous years are informative. Here's a general understanding:

• A current ratio of 1.0 or higher generally indicates good liquidity.
• The quick ratio, which excludes inventory, provides a more conservative view.

Analyzing these ratios over time helps identify whether EPR's liquidity position is strengthening or weakening. Any significant deviation from industry norms warrants further investigation.

Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a fundamental measure of a company's short-term financial health. Monitoring the trend in EPR's working capital provides insights into its operational efficiency and liquidity management. An increasing working capital balance typically suggests improved liquidity, while a decreasing balance may signal potential challenges in meeting short-term obligations.

Cash Flow Statements Overview:

The cash flow statement is essential for understanding how EPR generates and uses cash. It is divided into three main sections:

• Operating Activities: Cash flow from EPR's core business operations, such as rental income from its properties.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets, such as acquisitions of new properties or divestitures of existing ones.
• Financing Activities: Cash flow related to debt, equity, and dividends.

Analyzing these cash flow trends helps investors understand how EPR is funding its operations, investments, and distributions to shareholders. Positive operating cash flow is a healthy sign, indicating that the company is generating cash from its core business. Significant investing outflows may indicate expansion or strategic investments, while financing activities reveal how EPR is managing its capital structure.

Potential Liquidity Concerns or Strengths:

Based on the analysis of the above factors, potential liquidity concerns or strengths can be identified. For example:

• A consistently high current and quick ratio, coupled with positive operating cash flow, would indicate strong liquidity.
• Conversely, declining working capital, negative operating cash flow, and reliance on debt financing may raise concerns about EPR's ability to meet its obligations.

For further insights into EPR Properties and its investors, consider reading Exploring EPR Properties (EPR) Investor Profile: Who’s Buying and Why?

EPR Properties (EPR) Valuation Analysis

Determining whether EPR Properties (EPR) is overvalued or undervalued involves analyzing several key financial metrics and market indicators.

Here's a breakdown of important valuation factors:

• Price-to-earnings (P/E) Ratio:
• The current P/E ratio (TTM) is around 25.13.
• The trailing P/E ratio is 30.79.
• The forward P/E ratio is 17.57.
• The average historical P/E ratio for the last ten years is 36.29.
• Price-to-book (P/B) Ratio:
• The current P/B ratio is approximately 1.61.
• Enterprise Value-to-EBITDA (EV/EBITDA):
• The EV/EBITDA ratio is about 13.07 to 14.44.

These ratios provide insights into how the market values EPR's earnings and assets.

Here's a look at how the stock has performed recently:

• Stock Price Trend:
• The stock price has increased by approximately 23.91% in the last 52 weeks.
• Over the last 12 months, the price rose by 21.90%.
• The 52-week high is $54.25, while the 52-week low is $39.87.
• The latest closing stock price as of April 17, 2025, is $49.27.

Stock price trends help to understand the market's perception and momentum of the stock.

For investors, dividends can be a significant factor:

• Dividend Yield and Payout Ratios:
• The dividend yield is around 7.18%.
• The annual dividend is $3.54 per share.
• The payout ratio is 191.62%.

The dividend yield indicates the return on investment based on dividends, while the payout ratio shows the proportion of earnings paid out as dividends.

Analysts' opinions can offer additional perspectives:

• Analyst Consensus:
• The consensus rating is 'Hold.'
• The average price target is $53.75.
• The high forecast is $58.00, and the low forecast is $52.00.

These ratings and price targets reflect analysts' expectations for the stock's performance.

Here is a table summarizing key valuation metrics for EPR Properties:

Considering these factors, investors can better assess whether EPR Properties is aligned with their investment strategy. For more detailed insights, you can refer to: Breaking Down EPR Properties (EPR) Financial Health: Key Insights for Investors.

EPR Properties (EPR) Risk Factors

EPR Properties faces a variety of risks that could impact its financial health. These risks can be broadly categorized into internal and external factors, encompassing industry competition, regulatory changes, and overall market conditions. A clear understanding of these potential challenges is crucial for investors.

Here's a detailed look at some of the key risks:

• Industry Competition: The entertainment and recreational property sectors are highly competitive. Other REITs (Real Estate Investment Trusts), private equity firms, and individual investors all vie for similar assets, potentially driving up acquisition costs and impacting EPR's ability to secure favorable deals.
• Regulatory Changes: Changes in zoning laws, building codes, or environmental regulations could significantly affect EPR's properties. Compliance with new regulations may require costly renovations or modifications, impacting profitability.
• Market Conditions: Economic downturns, shifts in consumer spending habits, and rising interest rates can all negatively influence EPR's financial performance. For example, a recession could lead to decreased attendance at entertainment venues, reducing rental income for EPR.

Recent earnings reports and filings often highlight specific operational, financial, and strategic risks. These can include:

• Tenant Concentration: A significant portion of EPR's revenue comes from a limited number of tenants. The loss of one or more major tenants could have a material adverse effect on EPR's financial condition and results of operations.
• Interest Rate Risk: As a REIT, EPR relies on debt financing to fund acquisitions and development projects. Rising interest rates could increase borrowing costs, reducing profitability and potentially impacting the company's ability to meet its debt obligations.
• Development and Redevelopment Risk: EPR undertakes development and redevelopment projects, which are subject to various risks, including cost overruns, delays, and failure to achieve projected returns.
• Impairment Risk: EPR may be required to recognize impairment charges on its properties if their value declines. This could result from various factors, such as changes in market conditions, tenant performance, or obsolescence.

Mitigation strategies are crucial for managing these risks. While specific plans may vary, common strategies include:

• Diversification: Diversifying the tenant base and property types can reduce the impact of any single tenant or sector's underperformance.
• Hedging: Using interest rate swaps or other hedging instruments to mitigate the impact of rising interest rates.
• Due Diligence: Conducting thorough due diligence on potential acquisitions and development projects to assess risks and ensure projects are financially viable.
• Proactive Asset Management: Regularly evaluating the performance of properties and taking steps to improve occupancy rates and rental income.

Understanding these risks and mitigation strategies is essential for investors considering EPR Properties. For further insights into EPR Properties, consider reading: Exploring EPR Properties (EPR) Investor Profile: Who’s Buying and Why?

EPR Properties (EPR) Growth Opportunities

EPR Properties' future growth hinges on several key factors, including strategic investments, market expansion, and its unique positioning within the experiential real estate sector. The company's focus on diversification across various experiential categories and proactive asset management are expected to drive revenue and earnings growth.

Key growth drivers for EPR Properties include:

• Experiential Focus: EPR's specialization in experiential real estate, such as movie theaters, attractions, and gaming venues, caters to growing consumer demand for experiences.
• Strategic Investments: The company's ability to identify and invest in high-quality properties and developments within these sectors is crucial.
• Market Expansion: Expanding its footprint in existing and new markets to capitalize on demographic trends and consumer preferences.
• Active Asset Management: Optimizing the performance of its existing portfolio through renovations, expansions, and tenant improvements.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, analysts generally expect EPR to benefit from the continued recovery and growth of the experiential economy. These expectations consider factors such as:

• Increased consumer spending on leisure and entertainment
• The resilience of certain experiential sectors, like gaming
• EPR's ability to adapt to changing consumer behaviors

Strategic initiatives and partnerships play a significant role in EPR's growth trajectory. These may include:

• New Development Projects: Collaborating with developers to create new experiential venues.
• Tenant Relationships: Strengthening relationships with key tenants to support their expansion plans.
• Acquisitions: Pursuing strategic acquisitions to expand its portfolio and market presence.

EPR Properties maintains competitive advantages through:

• Sector Expertise: Deep understanding of the experiential real estate market.
• Diversified Portfolio: A diversified portfolio reduces risk and provides multiple avenues for growth.
• Experienced Management Team: A strong management team with a track record of success in real estate investment and operations.

For insights into the company's guiding principles, refer to the Mission Statement, Vision, & Core Values of EPR Properties (EPR).