XLRE - EPR Properties Q4: A Cheap REIT With A Monthly Well-Covered Dividend To Build Your Snowball

2024-04-11 07:00:00 ET

Summary

• The REIT sector has been in decline for the past two years because of high interest rates, creating a great opportunity for dividend investors to grow their income streams.
• EPR Properties currently offers double-digit upside potential, and its P/AFFO ratio trades well below the sector median's 13.55x and peers Four Corners Property Trust and OUTFRONT Media.
• EPR Properties has been dispositioning and restructuring its theater portfolio, further strengthening its overall portfolio. Additionally, their dividend is well covered by an AFFO payout ratio of 63%.
• When rates do decline, I suspect REIT share prices will offer some great upside as the market turns more favorable in the sector in the near future.
• With another expected hot upcoming CPI report, this could cause the Fed to raise interest rates, negatively impacting North American box office numbers.

Introduction

As an investor solely focused on living off dividends in the near future, my main goal is to not only find stocks that pay dividends, but those with solid fundamentals and dividend coverage that remains intact, or in other words , well-covered. As a Navy sailor, my main focus was safety in my job. Making sure those 18-year-old guys and gals that worked for me made it home back to their families....

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