EPR Properties Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. EPR Properties is a Maryland real estate investment trust (REIT) specializing in experiential net lease properties, including theatres, eat & play venues, attractions, and fitness & wellness centers. The company operates in two reportable segments: Experiential and Education. As of March 31, 2026, the company held approximately $5.7 billion in total assets and $7.1 billion in total investments.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $181.3 million | $175.0 million |
| Net Income | $62.6 million | $65.8 million |
| Net Income Available to Common Shareholders | $56.6 million | $59.8 million |
| Diluted EPS (Common) | $0.74 | $0.78 |
| FFOAA per Diluted Share | $1.26 | $1.19 |
| Operating Cash Flow | $113.4 million | $99.4 million |
| Total Debt | $2.93 billion | $2.93 billion |
| Cash and Cash Equivalents | $68.5 million | $20.6 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 3.6% year-over-year, driven by a $9.2 million increase in minimum rent from acquisitions and developments, partially offset by a decrease in percentage rent and mortgage financing income.
- Net Income Decline: Net income decreased 4.9% primarily due to a significant reduction in gains on real estate transactions ($1.0 million in Q1 2026 vs. $9.4 million in Q1 2025) and the recognition of $1.4 million in retirement and severance expenses.
- Credit Loss Benefit: The company recorded a $5.6 million benefit for credit losses, net, compared to a $0.7 million benefit in the prior year. This was largely due to the conversion of a $70 million mortgage note receivable into a wholly-owned rental property.
- Investment Activity: Investment spending totaled $51.3 million, including a $34.5 million acquisition of a fitness & wellness property in New York and development costs for experiential projects.
Guidance, Outlook, and Risks
Management Commentary: Management highlighted the successful conversion of a mortgage note to real estate and the retirement of the Executive Vice President and Chief Investment Officer. The company maintains a conservative capital structure with a Net Debt to Adjusted EBITDAre ratio of 5.2x.
Outlook and Transactions: Subsequent to quarter-end, EPR completed the acquisition of six U.S. attraction properties from Six Flags Entertainment Corporation as part of a $315 million portfolio deal. The company expects to close the Canadian portion of this deal in Q2 2026. The company has entered into forward sales agreements under its ATM program to sell approximately 797,000 shares at an average price of $59.52, with settlement expected by March 2027.
Risks and Contingencies:
- Tenant Concentration: Topgolf, AMC, and Regal Cinemas collectively represented approximately 38.3% of total revenue in Q1 2026.
- Joint Venture Impairment: Two experiential lodging properties in Florida were damaged by hurricanes in 2024; the company is working to exit these joint ventures, having previously recognized a $12.1 million impairment.
- Debt Maturities: The company has $629.6 million in debt maturities due in 2026.
- Macroeconomic Factors: Risks include elevated interest rates, inflation, geopolitical uncertainty, and potential disruptions in the entertainment and gaming industries.
Investor Verification Checklist
- Debt Refinancing: Verify the company's ability to refinance or repay the $629.6 million in debt maturing in 2026 given current interest rate environments.
- Six Flags Acquisition: Confirm the closing timeline and lease terms for the Canadian La Ronde property and the operational status of the six U.S. properties.
- Tenant Performance: Monitor the financial health of top tenants (AMC, Regal, Topgolf) given their significant revenue concentration.
- Joint Venture Exit: Track progress on the resolution of the hurricane-damaged Florida joint ventures and potential further impairments.
- ATM Program Execution: Monitor the settlement of the forward sales agreements and the impact on share dilution and cash proceeds.