EPR Properties Q1 FY2026 earnings call

• Delivered 5.9% increase in FFO as adjusted per share vs prior year and established strong momentum with increased investment spending. - Announced acquisition of a $315 million seven-part regional portfolio of Six Flags, a large post-COVID acquisition. - Ben Fox discussed completion of $51.3 million in investments including acquisition of Six Flags properties and expected $71 million in additional development and redevelopment projects, increasing investment guidance to $500 million to $600 million. - Mark Peterson reviewed financial performance with FFO adjusted per share at $1.26 vs $1.19 prior year, AFO per share at $1.29 vs $1.21 prior year, and discussed key variances and credit ratios.

FFO as adjusted per share increased by 5.9% compared to the prior year. The centerpiece of investments was the $315 million acquisition of a seven-part regional portfolio of Six Flags. The portfolio includes more than 1,600 acres across six states and Canada with 418 natural attractions. North American box office gross saw a 25% increase in the first quarter. Fitness and wellness continue to demonstrate resilience. Education segment had 100% leased properties. Total revenue for the quarter was $101.3 million, with increases due to investment spending and rent-to-interest response, partially offset by dispositions and a decrease in rents and participant interest percentage.

• Increased FFO as adjusted per share guidance midpoint to 6.5% growth. - Increased investment spending guidance to $500 million to $600 million from $400 million to $500 million. - Increased disposition proceeds guidance to $50 million to $100 million from $25 million to $75 million. - Improved percentage rate and participating interest rate income guide to $18.5 million to $22.5 million. - Confirmed G&A expense guide and consolidated operating properties guide. - Increased monthly income and dividend by 5.1%.

Q: Mark, for the increasing AFO guidance, how much came from a slightly better first quarter and then how much from acceleration investment activity or better yields on investment activity?

A: About a hundred or two from core, increased due to raised investment spending, benefit from conservative 6-5 transaction at end of year, remaining investments coming in sooner than planned at better cap rate, and Margaritaville conversion from note to lease giving incremental straight line rent.

Q: Is the first quarter purchase option exercised a key example of convertible or other structures?

A: Yes, conversion of mortgages is representative of the types of structures entered into.

Q: Could you talk a little bit about how many convertible mortgage opportunities you have and what that could look like in the next couple of years?

A: Majority of mortgages in mortgage book are conforming, with the transaction being an example of opportunities in existing portfolio and types of structures in upcoming years.

Q: Do you guys see potential partners going forward to shed more assets?

A: Definitely will take a look, our team has demonstrated ability to be market leader in real estate solutions in interaction space.

Q: Are you seeing any cap rate compression or increased competition in top three active sectors?

A: There is always competition, but as a leading market participant, will get calls for assets.

Q: Does strong box office performance change exposure and any private interest?

A: There continues to be beginning and improving movements in the space with studios embracing theatrical forward.

Q: Greg, talk about current macro uncertainty and impact on experience space, and calls from potential sellers?

A: Underlying support and resiliency of activity gives confidence, some on capital side looking to lock in transactions, and opportunities on other side to capitalize on interesting opportunities.