2024-07-05 12:07:42 ET
Summary
- EPR Properties’ revenue and FFO per share have recovered to pre-COVID levels, while dividend per share has not yet increased, leaving room for future dividend hikes.
- Going forward, investors could benefit from an attractive 8% dividend yield with the potential for dividend and price increases.
- Business for theaters (37% of rental income) remains strained, with ticket sales number significantly below pre-covid levels. Long-term trends (e.g. online streaming) will continue to negatively affect the industry.
- Portfolio reshuffling poses some execution risk as this is currently the core of the business.
- The market seems to overly punish EPR Properties' COVID related difficulties, allowing for an attractive value investment since the company has now recovered.
Investment Thesis
EPR Properties ( EPR ) has been hit hard during COVID-19, but has since then recovered to pre-COVID levels in terms of revenue and FFO. Today, the company provides an attractive and stable dividend yield of 8%, with some room to the upside due to its solid balance sheet and conservative debt maturity profile....
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For further details see:
EPR Properties: High Upside Potential Outweighs The Risks For Now