EPR Properties has spent the past four years shrinking its theatre book and widening the rest, a deliberate de-risking that is now visible in the numbers. The company's total investments stand at roughly $7.1 billion, and the theatres that once defined it are down to 148 properties. Attractions, eat and play venues and fitness and wellness assets keep absorbing the bulk of new spending. The strategic question is no longer whether EPR can rotate the portfolio away from movie screens. It is whether the rotation earns a spread on a cost of capital that has stayed stubbornly high.
At about $59.90 a share, the equity prices a dividend yield near 4.5 percent. The common share payout rose to $3.40 per share in the latest reported year. Diluted FFOAA came in at $1.26 in the quarter, up 5.9 percent. Annualized adjusted EBITDAre sits near $558 million against net debt of roughly $2.9 billion. The bear case rests on a theatre tail that is still long enough to hurt, and the bull case rests on a portfolio whose remaining growth engines are less correlated to a single summer of blockbusters.