2024-06-24 01:13:12 ET
Summary
- EPR Properties owns a portfolio of entertainment properties benefiting from a strong U.S. economy and consumer spending.
- The REIT generates solid cash flows in the leisure market, and the portfolio is almost fully leased.
- Despite a drop in FFO as adjusted Y/Y, EPR stock supported its dividend with cash flow.
- The REIT also raised its dividend by 3.6% in April and is looking to grow its FFO on a full-year basis.
- Shares are a bargain and trade at a 12% FFO yield.
Triple net lease REIT EPR Properties (EPR) generates consistent cash flow from its experiential facilities in the leisure market. The REIT owns a diversified portfolio of entertainment properties, which is benefiting greatly from an intact growth trend in the U.S. economy and associated strength in leisure spending. EPR Properties is looking to grow its FFO on a full-year basis and raised its dividend by 3.6% at the end of April, which increases the appeal for dividend growth investors. Although the REIT's distribution coverage deteriorated since my last work on EPR Properties at the end of last year, the dividend is still well-supported by FFO, and I am looking forward to seeing a growing dividend in the future....
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For further details see:
EPR Properties: A Cyclical REIT Play With A Growing 8.4% Yield