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

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

US | Real Estate | REIT - Specialty | NYSE

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Understanding EPR Properties (EPR) Revenue Streams

Revenue Analysis for EPR Properties

EPR Properties, a real estate investment trust (REIT), generates revenue primarily from entertainment and recreation properties. As of 2023, the company's total revenue was $631.5 million.

Revenue Source 2023 Revenue Percentage of Total Revenue
Entertainment Properties $412.3 million 65.3%
Recreation Properties $219.2 million 34.7%

Revenue growth trends for the past three years:

Year Total Revenue Year-over-Year Growth
2021 $517.8 million N/A
2022 $589.6 million 13.9%
2023 $631.5 million 7.1%

Key revenue characteristics:

  • Rental income represents 97.2% of total revenue
  • Tenant lease portfolio includes 367 properties
  • Average lease term: 12.4 years

Geographic revenue distribution:

Region Revenue Contribution
United States 98.6%
Canada 1.4%



A Deep Dive into EPR Properties (EPR) Profitability

Profitability Metrics Analysis

Profitability metrics for the real estate investment trust reveal key financial performance indicators for the year 2023:

Profitability Metric Value
Gross Profit Margin 76.4%
Operating Profit Margin 47.2%
Net Profit Margin 38.6%
Return on Equity (ROE) 8.7%
Return on Assets (ROA) 4.3%

Key profitability insights include:

  • Trailing Twelve Months (TTM) Revenue: $633.5 million
  • Net Income: $244.2 million
  • Operating Income: $298.7 million

Operational efficiency metrics demonstrate strong financial performance:

Efficiency Metric Value
Operating Expense Ratio 29.1%
Cost of Revenue $149.3 million
EBITDA Margin 52.4%

Comparative industry profitability ratios show competitive positioning:

  • Industry Average Net Profit Margin: 35.2%
  • Peer Group Gross Margin: 72.8%
  • Sector Median Operating Margin: 45.6%



Debt vs. Equity: How EPR Properties (EPR) Finances Its Growth

Debt vs. Equity Structure: Financial Financing Approach

EPR Properties maintains a strategic approach to capital structure with specific financial metrics as of 2024:

Debt Metric Current Value
Total Long-Term Debt $1.68 billion
Total Short-Term Debt $172.5 million
Debt-to-Equity Ratio 0.89x
Credit Rating (S&P) BBB-

Key financial characteristics of debt structure include:

  • Weighted average interest rate on debt: 4.7%
  • Debt maturity profile: Average of 7.3 years
  • Fixed-rate debt percentage: 85%

Equity financing components:

Equity Metric Current Value
Total Shareholders' Equity $2.1 billion
Common Shares Outstanding 74.2 million
Market Capitalization $3.6 billion

Financing strategy highlights:

  • Debt financing proportion: 44%
  • Equity financing proportion: 56%
  • Annual interest expense: $79.6 million



Assessing EPR Properties (EPR) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for the real estate investment trust's financial health.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.38
Quick Ratio 0.92 0.85

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • Total Working Capital: $187.6 million
  • Year-over-Year Working Capital Growth: 6.3%
  • Net Working Capital Turnover: 2.7x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $412.3 million
Investing Cash Flow -$276.5 million
Financing Cash Flow -$135.8 million

Liquidity Strengths

  • Cash and Cash Equivalents: $214.7 million
  • Available Credit Facilities: $500 million
  • Debt-to-Equity Ratio: 0.65

Potential Liquidity Considerations

  • Short-Term Debt Obligations: $98.2 million
  • Interest Coverage Ratio: 3.6x
  • Debt Maturity Profile: Predominantly long-term



Is EPR Properties (EPR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Key Valuation Ratios

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 14.2x 15.7x
Price-to-Book (P/B) Ratio 1.8x 2.1x
Enterprise Value/EBITDA 11.5x 12.3x

Stock Performance Metrics

  • 12-Month Stock Price Range: $42.15 - $58.67
  • Current Stock Price: $49.23
  • Price Volatility: 17.5%

Dividend Analysis

Dividend Metric Value
Annual Dividend Yield 5.6%
Dividend Payout Ratio 74.3%

Analyst Recommendations

Rating Percentage
Buy 45%
Hold 38%
Sell 17%



Key Risks Facing EPR Properties (EPR)

Risk Factors for EPR Properties

The company faces several critical risk factors that could impact its financial performance and investment attractiveness:

Market and Operational Risks

Risk Category Potential Impact Severity
Real Estate Market Volatility Potential property value fluctuations High
Entertainment Industry Dependency Revenue concentration in entertainment venues Medium
Interest Rate Changes Impact on borrowing costs and investment returns High

Key Financial Risks

  • Occupancy Rate Risk: 85.6% current occupancy rate
  • Debt-to-Equity Ratio: 0.65
  • Potential Revenue Concentration Risk in specific sectors

External Risk Factors

The company identifies several external risks in its financial reporting:

  • Pandemic-related disruptions to entertainment venues
  • Potential regulatory changes in real estate investment trusts
  • Economic downturn impact on discretionary spending

Financial Risk Metrics

Metric Current Value Industry Benchmark
Credit Risk Rating BBB BBB+
Liquidity Ratio 1.2 1.5
Lease Expiration Risk 12.5% of portfolio 10%

Mitigation Strategies

  • Diversification across multiple entertainment sectors
  • Maintaining strong balance sheet with $350 million cash reserves
  • Proactive lease management and tenant screening



Future Growth Prospects for EPR Properties (EPR)

Growth Opportunities

EPR Properties demonstrates significant growth potential in the entertainment and experiential real estate sector with strategic market positioning.

Market Expansion Strategies

Growth Metric 2023 Performance 2024 Projection
Total Property Portfolio 196 properties 205-210 projected properties
Investment Capital $6.2 billion $6.5-6.8 billion targeted
Occupancy Rate 89.7% 91-93% expected

Key Growth Drivers

  • Entertainment-based real estate acquisitions
  • Continued investment in experiential properties
  • Strategic geographic diversification
  • Focus on high-performance entertainment venues

Revenue Growth Projections

Anticipated revenue growth of 4.5-6.2% for 2024, driven by strategic property investments and market expansion.

Strategic Competitive Advantages

  • Specialized real estate portfolio in entertainment sector
  • Proven track record of selective property investments
  • Strong tenant relationships with established entertainment operators

Investment Expansion Targets

Property Category Current Allocation 2024 Target Allocation
Entertainment Venues 62% 65-68%
Recreational Properties 23% 25-27%
Emerging Markets 15% 17-19%

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