EPR Properties (EPR): Business Model Canvas [Dec-2025 Updated]

You're digging into EPR Properties' business model right now, and honestly, it's less about traditional property ownership and more about strategic capital recycling and a sharp pivot toward experiential assets as of late 2025. They are actively shedding non-core holdings, targeting $\text{150}$ million to $\text{160}$ million in sales this year, while their $\text{\$5.5}$ billion portfolio leans hard into venues like water parks and ski resorts. This focused strategy is what underpins their predictable income, which saw rental revenue hit $\text{\$451.5}$ million in the first nine months, supporting that steady monthly $\text{\$0.295}$ dividend you're tracking. If you want the precise breakdown of how this specialized REIT manages its key partnerships and generates cash flow from those long-term, triple-net leases, check out the full canvas below.

EPR Properties (EPR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that make EPR Properties (EPR) function, the entities that provide capital, operate the assets, and sign the long-term leases. Here's the hard data on those critical connections as of late 2025.

The relationship with financial partners is central to funding growth, especially given the recent capital market activity. EPR Properties entered into a new amended and restated $1.0 billion unsecured revolving credit facility in late 2024, which matures on October 2, 2028. This facility includes an accordion feature allowing an increase in borrowing availability by an additional $1.0 billion, up to a total of $2.0 billion, subject to lender consent. As of September 30, 2025, the outstanding balance on this facility was $379.0 million, with cash on hand at $13.7 million.

To support ongoing investment, EPR Properties priced an underwritten public offering of $550.0 million of 4.750% Senior Notes due 2030 in November 2025. The intended use of these net proceeds was to repay the outstanding principal balance of the unsecured revolving credit facility.

The list of financial institutions involved in this recent debt issuance is quite extensive, showing broad capital market support:

• Joint Book-Running Managers: J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays Capital Inc., RBC Capital Markets, LLC, Citigroup Global Markets Inc., Citizens JMP Securities, LLC, KeyBanc Capital Markets Inc. and Truist Securities, Inc.
• Co-Managers: Raymond James Associates, Inc., Stifel, Nicolaus Company, Incorporated, UMB Financial Services, Inc. and U.S. Bancorp Investments, Inc.

EPR Properties continues to refine its experiential portfolio through strategic acquisitions and partnerships with operators. In late 2025, the Company announced the acquisition and leaseback of a five-property portfolio of championship golf courses and the Ocean Breeze Water Park for a combined investment of $113 million, with a blended capitalization rate of 8.6%.

These new assets are immediately integrated through operator partnerships:

The reliance on major cinema chains remains a significant, though evolving, part of the revenue base. As of September 30, 2025, EPR's wholly-owned Experiential portfolio included 150 theatre properties. The concentration risk is clear:

• Three tenants, including two cinema chains and TopGolf, account for approximately 40% of rent.
• The overall portfolio coverage remained strong at 2.1 times as of Q2 2025.

For build-to-suit and redevelopment projects, EPR Properties is actively deploying capital, which involves partnerships with developers. The Company has committed approximately $100.0 million for these projects as of the third quarter of 2025, expected to be funded over the next 15 months. This commitment led to a revision in the full-year outlook; EPR now anticipates 2025 investment spending to reach approximately $285 million, exceeding the previous guidance range of $225.0 million to $275.0 million.

The Education portfolio, which EPR is slowly exiting, is a smaller piece of the partnership structure, consisting of 46 early childhood education center properties and nine private school properties as of September 30, 2025, with 100% leased status.

Finance: draft 13-week cash view by Friday.

EPR Properties (EPR) - Canvas Business Model: Key Activities

You're looking at the core engine driving EPR Properties' performance as a specialized real estate investment trust (REIT). The key activities revolve around strategic capital deployment and rigorous asset management within the experiential real estate niche.

Acquiring and developing experiential real estate assets is central. As of the third quarter of 2025, EPR Properties reported year-to-date investment spending totaling $140.8 million. This deployment is focused entirely on experiential assets, with an additional commitment of approximately $100.0 million for development and redevelopment projects expected to be funded over the next 15 months.

The scale of the operation requires constant management. EPR Properties manages a substantial portfolio, reporting total assets of approximately $5.5 billion (after accumulated depreciation of about $1.7 billion) as of September 30, 2025. This physical footprint spans across 43 states and Canada, ensuring broad geographic diversification for its income streams.

A critical activity for maintaining balance sheet health and funding new growth is executing capital recycling. For the full year 2025, EPR Properties has increased its disposition proceeds guidance to a range between $150.0 million and $160.0 million. This activity involves disposing of non-core assets, such as the one vacant theatre property and one land parcel sold in Q3 2025 for $19.3 million in total proceeds.

The operational backbone is built on negotiating and enforcing long-term, triple-net lease agreements. This structure shifts most property operating expenses to the tenant, which helps stabilize the REIT's cash flow. The portfolio, as of Q3 2025, was 99% leased or operated across its total investments.

Finally, to remain a REIT, EPR Properties must focus on maintaining REIT compliance and paying out distributions. The company adheres to a policy of paying a monthly dividend of $0.295 per share to common shareholders. This equates to an annualized distribution of $3.54 per share, which, based on Q3 2025 FFOAA guidance, was covered by an AFFO (Adjusted Funds From Operations) payout ratio of 64% in the quarter.

Here's a quick look at the portfolio structure as of the end of the third quarter of 2025:

The REIT's core operational focus can be summarized by the types of activities it prioritizes:

• Deploying capital into experiential assets.
• Managing leases across 43 states and Canada.
• Generating proceeds through asset sales.
• Maintaining a high portfolio lease rate of 99%.
• Distributing a monthly dividend of $0.295 per share.

The company's key credit ratios also reflect active financial management; for instance, the fixed charge coverage ratio stood at 3.6x, and net debt to annualized adjusted EBITDAre was 4.9x at quarter end. If onboarding takes 14+ days, churn risk rises, which is why efficient lease execution is defintely important.

EPR Properties (EPR) - Canvas Business Model: Key Resources

The Key Resources for EPR Properties (EPR) center on its specialized real estate assets and the financial capacity to acquire and manage them. These resources are the foundation supporting its net lease business model focused on experiential venues.

Total Investments, a key measure of the asset base, stood at approximately $6.9 billion as of September 30, 2025. This investment base is heavily weighted toward experiential properties, which accounted for 94% of the total, or $6.5 billion, with the remaining 6%, or $0.4 billion, in Education investments.

The physical assets themselves represent a critical resource, characterized by their specialized nature and high occupancy. As of September 30, 2025, the wholly-owned Experiential portfolio covered approximately 18.5 million square feet and was 99% leased or operated.

Here is a breakdown of the property types within the Experiential portfolio as of September 30, 2025:

The company maintains a strong liquidity position, which is a vital resource for opportunistic investment and managing short-term obligations. As of September 30, 2025, EPR Properties (EPR) had $13.7 million in cash on hand. This cash is supplemented by significant borrowing capacity.

• Unsecured Revolving Credit Facility Size: $1.0 billion.
• Amount Outstanding on Facility (as of 9/30/2025): $379.0 million.
• Maturity Date for Facility: October 2, 2028.

Another tangible resource is the stream of long-term, non-recourse mortgage notes receivable from tenants. These notes provide predictable, long-term income streams. For example, as of December 31, 2023, a mortgage note related to three premier resort and day spas included commitments of $47.1 million to fund future projects. More recently, subsequent to the end of the third quarter of 2025, the company received approximately $18 million in a paydown of its mortgage with Gravity Haus.

The intangible resource of expertise in underwriting and managing specialized experiential properties is evidenced by the portfolio composition and strategic focus. The company is actively managing its asset base, having executed capital recycling activities, such as selling one vacant theatre property and one land parcel in the third quarter of 2025 for total disposition proceeds of $19.3 million. The 2025 disposition guidance was increased to a range of $150.0 million to $160.0 million.

The company also has committed capital for future asset enhancement, showing an ongoing investment in its resource base. EPR Properties (EPR) committed approximately $100.0 million for experiential development and redevelopment projects during the third quarter of 2025, expected to be funded over the next 15 months.

EPR Properties (EPR) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors stick with EPR Properties (EPR), even when the broader REIT market feels choppy. It boils down to owning high-quality, enduring real estate that people actively choose to visit for leisure and recreation.

The value proposition starts with the assets themselves. As of the third quarter of 2025, EPR Properties held total assets valued at approximately $5.5 billion, with total investments reaching $6.9 billion. These properties are spread across 43 states and Canada. The focus is heavily weighted toward experiences, which is key to long-term relevance.

This focus translates directly into stable cash flow, largely secured by the structure of their agreements. EPR Properties primarily uses triple-net leases, meaning the tenant handles most property operating expenses, which helps ensure predictable, long-term cash flow for shareholders. This structure supports the REIT's ability to deliver consistent shareholder returns.

The dividend policy is a direct reflection of this stability. EPR Properties declared a monthly cash dividend of $0.295 per common share in November 2025, resulting in an annualized dividend of $3.54 per common share. Honestly, that annualized figure represents a 3.5% increase over the prior year's annualized dividend. Management is confident enough in the underlying performance to raise 2025 FFO as adjusted per share guidance to a range of $5.05 to $5.13.

For property owners looking to grow, EPR Properties offers a critical financial tool: the sale-leaseback option. This lets an owner-operator sell their existing real estate to EPR Properties and immediately lease it back on a triple-net basis. This frees up significant capital for expansion or debt reduction without losing operational control of the venue. To show this in action, EPR Properties announced $113 million in combined sale-leaseback transactions in December 2025, involving golf courses and a water park. This capital recycling is a core part of their strategy, with disposition proceeds guidance for 2025 set between $150.0 million to $160.0 million.

The diversification across experiential sectors is what mitigates risk within this niche. While some investors still worry about older segments, EPR Properties is actively pruning underperforming assets and reinvesting in high-growth areas.

Here's a quick look at where the investment capital was concentrated as of September 30, 2025:

Within the experiential segment, the value proposition is further refined by focusing on venues where consumers choose to spend discretionary time. This includes a mix of properties designed for entertainment and recreation.

You can see the specific composition of the experiential portfolio:

• 150 theatre properties
• 58 'eat & play' properties
• 25 attractions
• Recent additions include five championship golf courses and Ocean Breeze Water Park

The company is also actively funding future cash flow growth through development. They have committed approximately $100.0 million for experiential development and redevelopment projects expected to be funded over the next 15 months. Finance: draft 13-week cash view by Friday.

EPR Properties (EPR) - Canvas Business Model: Customer Relationships

Long-term, low-touch relationship management due to triple-net lease structure

EPR Properties operates as an Experiential Net Lease REIT, where the relationship model is inherently low-touch because the tenant is responsible for all property expenses under the triple-net lease structure, including maintenance, taxes, and insurance. EPR's primary responsibility becomes rent collection. EPR Properties prefers a long-term commitment, typically structuring leases for a 15-20 year term with renewal options.

• Preferred lease term: Typically 15-20 years.
• Tenant responsibility: All maintenance, taxes, and insurance.
• Landlord responsibility: Collecting stable rents.

Strategic, collaborative engagement with key tenants like Topgolf to support their growth

For key experiential partners, EPR Properties shifts to a more strategic, collaborative model, often referred to as relationship investing. Topgolf is a prime example, accounting for about 15% of EPR Properties rent. EPR Properties acts as a strategic capital provider, valuing proof of concept before deeper investment; for instance, EPR Properties invested in Topgolf after it already had three venues. This collaboration includes securing future growth rights. In 2025, EPR Properties anticipates Topgolf will self-fund at least 4 refreshes at EPR Properties locations. The company has stated goals to invest $25 million per year in Topgolf locations.

EPR Properties seeks to offer clarity for growing counterparties through relationship agreements, which define terms for future financing, making it easier for tenants to expand without seeking new lenders.

Rigorous underwriting of tenant credit and cash flow standards

The foundation of the relationship is built on conservative vetting. EPR Properties adheres to rigorous underwriting criteria focused on key industry, property, and tenant level cash flow standards. The firm emphasizes being very granular in underwriting cash flows before committing capital. The combined wholly-owned portfolio was 99% leased or operated as of September 30, 2025. Total assets for EPR Properties were approximately $5.5 billion as of Q3 2025, after accumulated depreciation of approximately $1.7 billion.

Lease enforcement and restructuring negotiations for underperforming tenants

Even with strong underwriting, EPR Properties has experience managing tenant distress, as seen during the pandemic. At that time, 100% of tenants were closed, and many could not pay rent. EPR Properties worked with tenants through the mutual challenge, eventually collecting $150 million in deferred rent while strengthening relationships. The company has also actively engaged in capital recycling, such as selling properties to other operators or converting them to different uses, like selling a vacant former Regal Theater in California to Costco for net proceeds of $24,000,000 in Q2 2025.

Investor relations focused on communicating portfolio stability and dividend track record

Investor communications center on the stability derived from the triple-net lease structure and the commitment to shareholder returns. EPR Properties highlights its 29-year track record of maintaining dividend payments. The monthly common dividend declared in November 2025 was $0.295 per share, which annualizes to $3.54 per common share. This represented a 3.5% increase over the prior year's annualized dividend as of Q1 2025. For the third quarter of 2025, monthly dividends totaled $0.885 per share. The company increased its 2025 FFOAA per diluted common share guidance to a range of $5.05 to $5.13, representing a 4.5% increase at the midpoint over 2024.

• Common Dividend (Annualized, Nov 2025): $3.54 per share.
• Q2 2025 Adjusted FFO per Share: $1.26.
• Q3 2025 FFO as Adjusted per Share: $1.37.
• Dividend Track Record: 29 years.

EPR Properties (EPR) - Canvas Business Model: Channels

You're looking at how EPR Properties (EPR) gets its deals done and talks to the market as of late 2025. It's all about deploying capital into experiential assets and then recycling it efficiently.

Direct property acquisition and development via internal investment team

EPR Properties (EPR) uses its internal team to source and execute direct investments. For the nine months ending September 30, 2025, total investment spending reached $140.8 million. The third quarter alone saw investment spending of $54.5 million. Following recent acquisitions, EPR Properties updated its full-year 2025 investment spending guidance to a range of $225.0 million to $275.0 million, but then signaled an expectation to spend approximately $285 million for 2025. They are setting up for more, projecting capacity to deploy around $400-$500 million in 2026. As of September 30, 2025, the total investments figure, which includes real estate, land, and mortgages, stood at $6.9 billion, with Experiential investments making up $6.5 billion, or 94%. The total assets on the balance sheet were $5.5 billion, net of approximately $1.7 billion in accumulated depreciation.

They committed an additional $100 million for future experiential projects as of the Q3 2025 update.

Sale-leaseback transactions with existing and new operators

Capital recycling is a major channel for funding new deployment. EPR Properties announced a significant set of sale-leaseback transactions on December 4, 2025, totaling $113 million, which included five championship golf courses and the Ocean Breeze Water Park. The blended capitalization rate for this $113 million investment was 8.6%. This activity is part of an ongoing effort; through the first nine months of 2025, disposition proceeds totaled $133.8 million. For the third quarter of 2025, net proceeds from sales were $19.3 million, with a recognized net gain of $4.6 million. Management increased the full-year 2025 disposition guidance to a range of $150.0 million to $160.0 million.

Here's a look at the capital recycling progress through the year:

Mortgage financing for tenant-operated properties

Mortgage financing is another deployment channel. In the third quarter of 2025, investment spending included approximately $20.0 million in mortgage financing for a fitness and wellness property in Winnipeg, Canada. This type of income contributed to the first quarter 2025 total revenue of $175 million. Furthermore, subsequent to Q3 2025, EPR Properties received about $18 million as a paydown on a mortgage with Gravity House.

Investor presentations and earnings calls to communicate with capital markets

Communication with capital markets happens through regular filings and calls. EPR Properties increased its 2025 FFOAA per diluted common share guidance to a range of $5.05 to $5.13, representing a 4.5% increase at the midpoint over 2024. The Q3 2025 FFOAA per share was $1.37. The total revenue for Q3 2025 was reported at $182.3 million. The company's Net Debt/Adjusted EBITDAre Ratio stood at 4.7x as of September 30, 2025. Liquidity remains managed via a $1.0 billion unsecured revolving credit facility, with $379.0 million drawn as of September 30, 2025, and cash on hand at $13.7 million. They have no scheduled debt maturities until August 2026. To access capital, EPR Properties announced a $400,000,000 at-the-market and forward equity program on December 5, 2025, and in November 2025, they priced $550.0 Million of 4.750% Senior Notes due 2030.

Key financial health indicators communicated to the market include:

• FFO as adjusted per share (Q2 2025): $1.26
• Total Assets (Sept 30, 2025): $5.5 billion
• Net Debt/Adjusted EBITDAre Ratio (Sept 30, 2025): 4.7x
• Monthly Dividend per Share (as of Nov 2025): $0.295
• Consecutive Years of Maintaining Dividend Payments: 29

Commercial real estate brokers for asset dispositions

While EPR Properties (EPR) actively disposes of assets, the search results do not detail the specific use or financial impact of commercial real estate brokers for these sales, only the resulting net proceeds and gains. For instance, the Q3 2025 disposition of a vacant theatre property and a land parcel yielded net proceeds of $19.3 million.

EPR Properties (EPR) - Canvas Business Model: Customer Segments

You're looking at the core groups that drive revenue for EPR Properties, which is heavily concentrated in experiential real estate as of late 2025. The focus is clearly on properties that benefit from consumer spending on leisure and recreation, which is a deliberate strategy to capture resilient demand.

The overall investment portfolio is substantial, sitting at approximately $6.9 billion across 330 properties as of the third quarter of 2025, with a high occupancy rate of 99% leased or operated across the combined portfolio. This portfolio is segmented into two main categories: Experiential and Education.

The Experiential Portfolio is the dominant segment, representing approximately 94% of total investments, valued at about $6.5 billion across 275 properties and 53 operators at the end of Q3 2025. The Education Portfolio makes up the remaining 6%, totaling about $0.4 billion in investments across 55 properties and 5 operators, which management is actively reducing. For instance, in Q1 2025, EPR made progress by selling 11 early childhood education centers and one vacant early childhood education center. This segment was 100% leased as of September 30, 2025, covering approximately 1.1 million square feet.

The customer segments break down as follows:

• Experiential venue operators: The largest component of the portfolio.
• Major cinema exhibition companies: Still a significant, though managed, exposure.
• Private and charter school operators: A segment actively being reduced.
• Fitness and wellness center operators: A category management sees strong investment potential in.
• Institutional and retail investors: Attracted by the high, stable monthly dividend.

Here's a look at the property count and investment weightings based on the latest figures:

Within the cinema exhibition space, which is a core part of the experiential group, the exposure was 37% of the portfolio as of Q3 2025, with 150 theatre properties. You should note the significant tenant concentration risk here, specifically with AMC Theaters. The company is actively managing this, having sold 31 theaters in the past four years, leaving only one remaining vacant theater as of Q3 2025. Despite this, theater tenants generated $7 million in percentage rent in Q3 2025, and the full-year 2025 guidance for percentage rent and participating interest income is narrowed to a range of $22.5 million to $24.5 million.

For the experiential operators outside of theaters, management is deploying capital. In Q3 2025, investment spending totaled $54.5 million, with 100% allocated to experiential assets, bringing the year-to-date total to $140.8 million. Recent activity includes a $113 million acquisition of golf courses and a water park announced in December 2025, plus management noted strong opportunities in the fitness and wellness categories. The company has also committed an additional $100.0 million for future experiential development and redevelopment projects as of Q3 2025.

The final key customer group is the institutional and retail investors who are drawn to the monthly income stream. EPR Properties declared monthly cash dividends totaling $0.885 per share during the third quarter of 2025, which represents an annualized dividend of $3.54 per common share, a 3.5% increase over the prior year's annualized dividend. The forward dividend yield is hovering around 6.75% to 6.82% late in 2025. The safety of this payment is supported by a reasonable cash flow payout ratio, with the payout based on free cash flow at 64.7% and the payout based on adjusted earnings at 69.4% for the full year 2025 guidance.

Finance: draft 13-week cash view by Friday.

EPR Properties (EPR) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive EPR Properties' operations as of late 2025. For a Real Estate Investment Trust (REIT) like EPR Properties, the cost structure is heavily influenced by financing and property management, even with the favorable triple-net lease structure.

The most significant cost component, as you'd expect for a leveraged entity, is the cost of debt. For the three months ended September 30, 2025, the net interest expense was reported at $33,238 thousand. This figure is critical because it directly impacts the distributable cash flow available to common shareholders.

Even with the triple-net lease model-where tenants cover most property-level expenses-EPR Properties still incurs direct property costs. For the third quarter of 2025, Property operating expenses totaled $14,478 thousand. This generally covers items the tenant doesn't directly manage or for which the lease structure allows the REIT to retain responsibility.

Corporate overhead, or General and administrative expense, represents the cost of running the headquarters and managing the portfolio. This came in at $14,001 thousand for the quarter ending September 30, 2025. Also, you see costs related to portfolio adjustments, like Transaction costs, which were $492 thousand in the same period, reflecting the expense of buying or selling assets.

A less predictable, but important, cost is the Provision (benefit) for credit losses, net. This reflects management's assessment of potential non-payment risk within the portfolio. For Q3 2025, this provision was $9,117 thousand. Honestly, this number warrants close monitoring as it signals tenant health.

Here's a quick look at those key expense categories for the three months ended September 30, 2025, all amounts in thousands:

The capital recycling efforts also impact the cost structure, though they are often offset by gains. For the nine months ended September 30, 2025, EPR Properties reported:

• Investment spending year-to-date: $140.8 million.
• Total disposition proceeds year-to-date: $133.8 million.
• Management's full-year 2025 disposition proceeds guidance: a range of $150.0 million to $160.0 million.

Also, keep in mind the broader operating expenses that are not explicitly listed above but are part of the cost base. For the three months ended September 30, 2025, Depreciation and amortization stood at $42,409 thousand. The structure of EPR Properties' costs is defintely weighted toward financing, which is typical for a REIT that relies on debt to fuel property acquisitions.

Finance: draft 13-week cash view by Friday.

EPR Properties (EPR) - Canvas Business Model: Revenue Streams

You're looking at the core ways EPR Properties brings in cash as of late 2025; it's all about the rent checks, but other streams are definitely in play.

The primary engine for EPR Properties remains its long-term lease structure. Rental revenue from long-term triple-net leases totaled $451.5 million for the first nine months of 2025. This predictable income stream forms the bedrock of the REIT's financial stability, which is crucial for covering operating costs and dividends.

To give you a snapshot of the top-line performance through the third quarter of 2025, here's how the major components stacked up:

Beyond the base rent, EPR Properties captures upside through performance-based payments. Percentage rents, which are based on tenant sales performance, are definitely showing an upward trend. For instance, in the second quarter of 2025, percentage rents reached $4.6 million, a significant jump from $2.0 million reported in the second quarter of 2024, showing the experiential portfolio is driving more customer activity. Honestly, that's a great sign for the underlying asset health.

Capital recycling is another active revenue source, where EPR sells assets to fund new, higher-yielding investments. Gains on asset sales totaled $34.2 million year-to-date in 2025 from these dispositions. For context on where that total revenue is coming from, you can see the concentration risk in the top three tenants based on nine-month revenue contributions:

• Topgolf: $75,593,000 (representing 14.1% of revenue)
• AMC: $72,241,000 (representing 13.5% of revenue)
• Regal: $64,082,000 (representing 12.0% of revenue)

Mortgage and other financing income added another $47.9 million to the top line for the first nine months of 2025. So, while the triple-net leases are the steady drumbeat, the variable income from percentage rents and the lumpy gains from property sales provide important supplements to the overall $535.4 million total revenue figure reported through Q3 2025.

Finance: review the Q4 projections for percentage rent contribution against the $34.2M YTD gain target by end of next week.