EPR Properties (NYSE: EPR) specializes in real estate holdings that are experiential in nature, a unique approach among real estate investment trusts (REITs). In the face of the fast-spreading coronavirus, such assets quickly became pariahs. While the situation was terrible at the start of the pandemic, it is now getting better. But does that really mean the worst is over for EPR Properties?
EPR Properties' portfolio is broken down across movie theaters (46% of first-quarter revenue), what it calls "eat and play" assets (22%), ski facilities (8%), attractions (6%), experiential lodging (3%), gaming (2%), cultural (1%), fitness (1%), and education (11%, mixed between private schools and early childhood education). Although the education component has different dynamics, the rest of the portfolio (89% of first-quarter rents) is all about bringing large numbers of people together in one place for shared experiences.
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