EPR Properties Raises FFO Guidance and Investment Spending Target After Q3

EPR Properties raised its 2026 earnings and investment spending guidance on Wednesday, after third-quarter funds from operations as adjusted rose 8.8% per share and the experiential landlord moved into the live venue business with Live Nation.

The real estate investment trust now expects 2026 FFO as adjusted, or FFOAA, of $5.49 to $5.57 a diluted share, up from $5.41 to $5.57, an 8.0% increase at the midpoint over 2025, according to its earnings release filed with an 8-K on Wednesday. It lifted its investment spending forecast to $675 million to $725 million, from $600 million to $700 million.

Earnings climb on growth and a sale gain

Total revenue rose 12.0% to $204.1 million. FFOAA increased 10.4% to $117.4 million, or $1.49 a share, from $1.37. Adjusted funds from operations rose 11.4% to $121.1 million, or $1.54 a share, up 10.8% from $1.39.

Net income available to common shareholders jumped 55.5% to $94.1 million, or $1.22 a share, from $0.79. The quarter included a $30.5 million gain on the sale of a private school property that brought in net proceeds of $68.2 million.

"Our third quarter reflects continued momentum across the business, with both strong earnings growth and a robust pace of investment activity," Chairman and CEO Greg Silvers said in the release. He pointed to "our entry into the live venue category with industry leader Live Nation."

Where the money is going

Investment spending totaled $172.4 million in the quarter and $664.5 million for the first nine months. That included $102.1 million to acquire two eat & play and two fitness and wellness properties, one of them an existing Life Time property in Irvine, California, as well as initial spending on a build-to-suit live performance venue in Portland, Oregon, operated by Live Nation.

EPR expects about $183.2 million of additional spending on existing development and redevelopment projects, roughly $21.0 million of it in the rest of 2026.

Its portfolio at Sept. 30 included 148 theatre properties, 62 eat & play properties, 35 attractions, 11 ski properties and 32 fitness and wellness properties. The combined wholly-owned portfolio of 20.7 million square feet was 99% leased or operated.

Funding the pipeline

In July, EPR entered into a new $1.6 billion credit agreement that extended its $1.0 billion revolver to 2030 and added a $600 million term loan due 2032, which was fully drawn at quarter-end. The company had no revolver borrowings outstanding and $52.4 million of unrestricted cash.

It also entered into two forward sale agreements under its at-the-market program for initial gross proceeds of $66.6 million, and had unsettled forward agreements with estimated net proceeds of $134.6 million as of Sept. 30.

Monthly dividend

The board declared a monthly dividend of $0.31 a share on Oct. 27, payable Dec. 15 to shareholders of record on Nov. 30. That equals an annualized $3.72 a share, a 5.1% increase over the annualized dividend at the end of the prior year.

Sources

1. EPR Properties Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001045450-26-000050)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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