EPR Properties (NYSE:EPR) capped its fourth quarter and full-year 2025 results by highlighting portfolio stability, higher year-over-year per-share earnings, and a planned acceleration in 2026 investment activity, according to management’s prepared remarks and Q&A on the company’s earnings call.
2025 results and portfolio performance
CEO Greg Silvers said 2025 reflected “solid execution and clear progress toward accelerated growth,” pointing to a 5.1% increase in FFO as adjusted per share and a 6.2% increase in AFFO per share for the year. CFO Mark Peterson said FFO as adjusted totaled $5.12 per share for 2025 (at the high end of guidance), compared with $4.87 in the prior year, while AFFO was $5.14 per share, up from $4.84.
Chief Investment Officer Greg Zimmerman said total investments were approximately $7.0 billion at quarter-end across 333 properties that were 99% leased or operated. The experiential portfolio represented about $6.6 billion, spanning 278 properties with 54 operators, and was also 99% leased or operated. The education portfolio included 55 properties with five operators and was 100% leased. Zimmerman said the most recent trailing 12-month coverage data showed overall portfolio coverage at 2.0x.
Theater and tenant commentary, plus a change in box office disclosures
Zimmerman noted that North American box office totaled $8.7 billion in 2025, a 1% increase from 2024, while Q4 box office was $2.2 billion versus $2.4 billion in Q4 2024. Management cited several Q4 releases and discussed expectations for a stronger 2026 slate, adding that analysts expect box office to rise in 2026.
However, Zimmerman said the company will move away from providing annual estimates for box office performance, noting that the practice began after the pandemic amid reopening dynamics and labor strikes. With the business stabilizing, management said it no longer views that disclosure as necessary, and emphasized that most theater rent is not tied to box office fluctuations. Zimmerman added that Regal is the primary source of meaningful percentage rent exposure in the theater portfolio and that Regal’s percentage rent estimate is embedded in guidance.
Management also discussed performance in other areas of the portfolio, including ski operations, “eat and play” assets, and attractions. Zimmerman said EPR remained “bullish” on the fitness and wellness category, noting roughly $150 million invested since 2024 across golf, fitness, and hot springs, and said the company’s hot springs assets delivered strong year-over-year results. On the education portfolio, Zimmerman said trailing twelve-month revenue for Q3 was essentially flat, with EBITDA down due to higher expenses, while coverage remained strong.
Investment activity, recycling, and 2026 spending outlook
EPR’s investment spending during the quarter totaled $147.7 million, bringing 2025 total investment spending to $288.5 million, with 100% of the quarter’s activity in the experiential portfolio. Zimmerman said commitments include projects already closed but not yet open, and that EPR has committed approximately $85 million to experiential development and redevelopment projects expected to be funded in 2026.
Fourth-quarter acquisitions included:
- A five-property portfolio of championship golf courses in the Dallas Metroplex for approximately $90.7 million, to be leased and operated by Advance Golf Partners.
- Ocean Breeze Waterpark in Virginia Beach, Virginia, in a sale-leaseback for approximately $23.2 million, to be leased and operated by an affiliate of Premier Parks.
Zimmerman also said the company began 2026 investment spending with a first-quarter acquisition of VITAL Climbing Lower East Side in Essex Crossing for approximately $34 million, expanding its relationship with the operator alongside an existing Brooklyn location.
Management issued 2026 guidance for investment spending of $400 million to $500 million and disposition proceeds of $25 million to $75 million. In Q&A, management said it had “great confidence” in the investment guidance but declined to comment on specific deals. Peterson later said expected spending is weighted more toward the first half of 2026. In discussing the mix, management suggested near-term activity is expected to be more acquisition-driven than development.
On portfolio recycling, Zimmerman said EPR sold two leased theater properties for alternative uses and two land parcels in the quarter for net proceeds of $16.1 million, recognizing a $5.3 million gain. The company also received $18.4 million in proceeds from a partial paydown on a mortgage note related to Gravity Haus in Steamboat Springs, previously announced. Over the past five years, Zimmerman said EPR sold 33 theaters and has one remaining vacant theater. Total disposition proceeds in 2025 were $168.3 million.
Capital markets actions, leverage metrics, and dividend increase
Silvers and Peterson emphasized balance sheet flexibility. In the fourth quarter, EPR closed a $550 million public debt offering and established a $400 million at-the-market equity program. Peterson said the company issued $550 million of five-year senior unsecured notes in November at a 4.75% coupon.
At year-end, EPR had $2.9 billion of consolidated debt, all fixed-rate or swapped to fixed, with a blended coupon of about 4.4%. Cash on hand was $90.6 million, and there was no balance drawn on its revolver, management said. Peterson added that no equity issuance is required to fund the 2026 plan, but the ATM provides flexibility for opportunistic issuance, including forward sales.
Peterson reviewed credit metrics, including fixed charge coverage of 3.4x, interest and debt service coverage of 4.0x, and net debt to annualized adjusted EBITDARE of 4.9x, which he said was below the lower end of EPR’s targeted range. He also cited an AFFO payout ratio of 68% for the fourth quarter and full year.
The company announced a 5.1% increase to its monthly common dividend, beginning with the dividend payable April 15 to shareholders of record as of March 31. Management said it expects the 2026 dividend to remain well covered, with an AFFO payout around 70% at the midpoint of guidance.
2026 guidance and leadership transition
EPR introduced 2026 FFO as adjusted per share guidance of $5.28 to $5.48, representing 5.1% growth at the midpoint, with a “similar” percentage increase expected for AFFO per share. Peterson noted first-quarter 2026 results are expected to be lower than a simple quarterly run rate by about $0.11 per share, primarily due to the timing of percentage rents—weighted to the last three quarters—and seasonality in the company’s operating properties.
The company guided to percentage rent and participating interest of $18.5 million to $22.5 million and G&A expense of $56 million to $59 million. On Regal, management said its expectation is for slightly higher box office, consistent with analysts’ views, and noted the Regal lease year ends in July, limiting exposure to the fall release season within that lease year.
Silvers also announced a leadership transition: Zimmerman participated in his final earnings call as he retires, and Ben Fox will take over as Chief Investment Officer.
About EPR Properties (NYSE:EPR)
EPR Properties is a real estate investment trust that specializes in experiential properties across the United States, Canada and select international markets. Established in 1997 and headquartered in Kansas City, Missouri, the company targets properties in the entertainment, recreation and education sectors. Its portfolio includes movie theaters, ski resorts, family entertainment centers, charter schools and other venues that benefit from consumer-driven experiences.
The trust employs long-term, triple-net lease agreements, where tenants are responsible for real estate taxes, insurance and maintenance.
