EPR Properties Q3 FY2025 earnings call

• The third quarter marked a period of steady progress with a 5.4% increase in FFO as adjusted per share compared to the same quarter last year and a midpoint increase in the FFO as adjusted guidance for the current year. • The disciplined deployment strategy was enabling the expansion of the experiential properties portfolio, with a pipeline of actionable investments over the next 90 to 120 days. • The strategic capital recycling program was focused on noncore theater and education dispositions, with reinvestment in growth experiential sectors. • Consolidated coverage remained strong at 2.0. The Box Office was expected to be strong in the fourth quarter, and 2025 was set to be a new post-COVID high, with percentage rent from the Regal lease increasing. • Tenants had launched initiatives such as annual pass programs, dynamic daypart pricing, and group discount offerings, and there was widespread adoption of enhanced technology across the tenant base. • In the experiential portfolio: Andretti Karting had strong openings, a Pinstack location was expected to open, Attractions EBITDARM increased buoyed by Canadian assets and Enchanted Forest Water Safari; the Hot Springs portfolio EBITDARM and revenue increased due to attendance growth and expansions; the expansion of the Jellystone Kozy Rest RV Resort near Pittsburgh drove growth in the experiential lodging portfolio; ski properties had revenue growth during the summer months; the education portfolio had customers' trailing 12-month revenue flat in Q2 with EBITDARM down due to expense increases. • Investment spending in Q3 was $54.5 million, with year-to-date investment spending at $140.8 million, including $18.25 million in accordion funding for Iron Mountain Hot Springs and $20 million in mortgage financing for Altea Active.

At the end of Q3 2025, total investments were approximately $6.9 billion with 330 properties that were 99% leased or operated. The experiential portfolio consisted of 275 properties with 53 operators, accounting for 94% of total investments, approximately $6.5 billion, and was 99% leased or operated at quarter end. The education portfolio had 55 properties with 5 operators and was 100% leased at quarter end. FFO as adjusted per share increased by 5.4% compared to the same quarter the previous year. Rental revenue increased by $6.2 million compared to the prior year, mainly due to investment spending, rent bumps, and higher percentage rents. Percentage rents for the quarter were $7 million versus $5.9 million in the prior year, with the increase coming from one theater tenant and offset by lower amounts from attraction properties.

• The 2025 FFO as adjusted per share guidance was increased to a range of $5.05 to $5.13 from $5 to $5.16. • The 2025 investment spending guidance was narrowed to a range of $225 million to $275 million from $200 million to $300 million. • The disposition proceeds guidance for 2025 was increased to a range of $150 million to $160 million from $130 million to $145 million. • The percentage rent and participating interest income guidance was narrowed to a range of $22.5 million to $24.5 million from $21.5 million to $25.5 million. • The low end of the G&A expense estimate was raised to a range of $54 million to $56 million from $53 million to $56 million.

• Uncertainty regarding the timing and outcome of the proposed transaction involving the sale of the Catskills Land affiliated with the Resorts World Gaming property due to the recently announced proposed merger among Genting gaming entities. • Credit loss risk with a $9.1 million provision for credit losses net in Q3, related to fully reserving a mortgage note receivable for $6 million related to a small borrower and changes in estimated current expected credit losses due to macroeconomic conditions.

Q: Could you talk more about the credit losses reserving, including the $6 million mortgage note and broader macro economy?

A: Greg Silvers stated it was a small tenant and they felt it prudent to reserve, and Mark Peterson added it was the only investment with that small tenant and macroeconomic indicators played a role.

Q: Could you scope acceleration of acquisition volumes in 2026, staying leverage-neutral?

A: Gregory Silvers said they had significantly reduced leverage below the range and could go to a $400 million to $500 million range without Genting, and Mark Peterson added math showed they could be below the midpoint of the leverage range even without Genting.

Q: Capital on duration of mortgage financing investment with Altea Active and how it fits in larger investments?

A: Gregory Zimmerman said it was a 20-year synthetic mortgage structured for growth capital for Altea, part of the bespoke relationship deals they pursued.

Q: Seen competition from private players, family offices in acquisition landscape?

A: Gregory Silvers said there was competition, but cap rates were stable and their granular approach to finding deals helped.

Q: Strategy and pricing for ATM program?

A: Mark Peterson said they weren't dependent on equity for 2026 plans but might opportunistically raise equity when the price made sense.

Q: Color on smaller deals and yield differentials between large and small?

A: Gregory Silvers said $25 million to $75 million deals were still available, less competitive, and in the 8s, while larger deals were more competitive but they were positioned to be competitive given their understanding of those deals.

Q: Color on yield of mortgage financing investment with Altea Active?

A: Gregory Zimmerman said yields in U.S. dollars were similar to opportunities in the U.S.