EPR Properties Raises FFO Guidance to $5.49 per Share After Earnings Grow 54.4%
Key Facts
EPR Properties raised the low end of its annual guidance for adjusted funds from operations per diluted share to $5.49, after reporting earnings per share of $1.22 in the third quarter, up 54.4% from $0.79 a year earlier. The company said in results released after the market close on October 28 that its 2026 FFOAA guidance range was now $5.49–$5.57, compared with $5.41–$5.57 previously. That represents growth of 8.0% at the midpoint compared with 2025. It also raised its net income guidance per diluted share to $3.41–$3.49, from $3.03–$3.19. The guidance increase came as quarterly revenue and earnings grew and spending on acquisitions and development projects expanded.
Revenue totaled $204.102 million in the three months ended September 30, up 12.0% from $182.306 million in the corresponding period of 2025. Net income available to common shareholders rose to $94.137 million from $60.554 million, an annual increase of 55.5%. For the first nine months, revenue reached $581.433 million, up 8.6% from $535.407 million. Net income available to common shareholders over the same period rose 11.5% to $211.841 million, compared with $189.928 million. The difference in growth rates between the quarter and the nine-month period shows that third-quarter results were stronger than the year-to-date performance through September.
FFOAA per diluted share, a non-GAAP measure, rose to $1.49 from $1.37 a year earlier, an increase of 8.8%. AFFO per share was $1.54, compared with $1.39 under the adjusted definition, up 10.8%. The company said it changed its AFFO definition and recast the periods presented under the new definition. The year-over-year comparison for this measure should therefore be read on the basis of the recast figures, while FFOAA offers another indicator of per-share operating performance. Chief Executive Greg Silvers said the quarter reflected "continued momentum across the business, with strong earnings growth and an active pace of investment."
EPR raised its projected 2026 investment spending range to $675–725 million, from $600–700 million previously. Spending totaled $172.4 million in the third quarter, bringing the total for the nine months ended September 30 to $664.5 million, close to the new annual range's low end. Third-quarter investments included $102.1 million to acquire two entertainment and dining properties and two fitness and wellness properties. The company also provided $27.2 million in mortgage financing for an experiential lodging property and a fitness and wellness property. It also began spending on a live performance venue in Portland, Oregon, operated by Live Nation, bringing it into the live performance venue category within its relationship with the company.
As of September 30, the company expected to spend about $183.2 million more on existing development and redevelopment projects, including about $21 million during the rest of 2026. Meanwhile, EPR recorded property sale proceeds of $74.0 million during the quarter, including net proceeds of $68.2 million from the sale of one private school, with an accounting gain of $30.5 million. The company also announced a new $1.6 billion credit agreement comprising a $1.0 billion unsecured revolving facility and a $600 million delayed-draw term loan. The term loan was fully drawn as of September 30, while no amounts had been drawn under the revolving facility. Together, these moves combine financing for new investments, existing development commitments and the sale of one property during the quarter.
The company declared a monthly cash distribution of $0.31 per share, payable November 16 to shareholders of record on October 30. It also declared another monthly distribution of the same amount, payable December 15 to shareholders of record on November 30. At the current rate, the annualized distribution is $3.72 per share, up 5.1% from its level at the end of 2025. In the market, the stock closed at $56.40 on October 26 and then at $56.01 on October 27, before results were announced after the close on October 28. The company had scheduled a call to discuss its third-quarter results for October 29.