EPR Properties

Q2 total revenue was $196.1 million, up from $178.1 million a year ago, an increase of $18 million or 10.1%. FFO as adjusted was $1.42 per share versus $1.26 in the prior year, up 12.7%; AFFO was $1.43 per share versus $1.24, up 15.3%. For the first six months, FFO as adjusted was $2.67 per share versus $2.45, up 9%, and AFFO was $2.71 versus $2.44, up 11.1%. Management raised 2026 FFO as adjusted guidance to $5.41-$5.57 per share from $5.37-$5.53, and investment spending guidance to $600 million-$700 million from $500 million-$600 million. They also confirmed disposition proceeds of $50 million-$100 million, percentage rent and participating interest income of $18.5 million-$22.5 million, and G&A of $56 million-$59 million.

Greg Silvers framed the quarter as a meaningful step forward in the company's acceleration strategy, pointing to the revenue and FFO gains and the record investment pace. He emphasized that EPR is leaning into durable shared-experience demand, citing theaters, fitness and wellness, attractions, and the Netflix House investment as examples of diversification. His tone was confident and upbeat, but grounded in the company's discipline around capital deployment and balance sheet strength.

Mark Peterson said Q2 FFO as adjusted of $1.42 and AFFO of $1.43 per share were supported by higher investment activity, rent and interest bumps, and better-than-expected portfolio performance. He noted that revenue increased to $196.1 million, while interest expense net rose $5 million due to higher average borrowings and lower capitalized interest. He highlighted strong credit metrics, including fixed charge coverage of 3.4x, interest and debt service coverage of 4.0x, pro forma net debt to annualized adjusted EBITDAre of 5.1x, and an AFFO payout ratio of 65%; liquidity included $16.2 million of cash, $640 million available on the revolver, and a new $1.6 billion credit agreement. He also said the 2026 FFO guidance increase reflects both incremental investment spending and lower-than-expected bad debt, which he characterized as running closer to 40 basis points versus a prior plan of 50 to 75 basis points.

Analysts focused on why initial yields were about 50 bps higher, and Ben Fox said pricing and mix are generally still in the same low-to-mid-8% range. Questions also centered on the guidance raise; Mark Peterson said most of the $0.04 increase came from investment spending and better portfolio performance, with a small contribution from a defeasance fee, while percentage rent timing shifted between June and July. Analysts asked about funding future investments, and management said leverage and liquidity provide flexibility, with a rough preference for about 60% equity and 40% debt for incremental investments, but no need to force equity issuance. They also asked about Topgolf, the former Six Flags parks, and Netflix House; management said early signs at the parks are positive, Topgolf is seeing benefits from operational changes, and there are currently 3 Netflix Houses.