EPR Properties (NYSE:EPR) has recently released its 10-Q report, providing an in-depth look at the company's financial performance and operations. EPR Properties is a diversified experiential net lease real estate investment trust (REIT) with total assets of approximately $5.7 billion across 44 states. The company focuses on real estate venues that facilitate out-of-home leisure and recreation experiences, aiming to provide stable and attractive returns for its shareholders.
In the 10-Q report, EPR Properties highlighted its total investments, which were approximately $6.9 billion as of June 30, 2024, with 93% allocated to its Experiential segment and 7% to its Education segment. The Experiential portfolio includes various property types such as theatres, eat & play properties, attractions, ski properties, experiential lodging properties, fitness & wellness properties, gaming properties, and cultural properties. As of June 30, 2024, the company's Experiential portfolio consisted of approximately 19.6 million square feet, with a 99% lease rate, excluding properties intended for sale.
EPR Properties also addressed the challenging economic environment, citing heightened risks and uncertainties resulting from current economic conditions, including significant volatility and negative pressure in financial and capital markets, higher cost of capital, and high inflation. The company indicated that it expects reduced investment spending in the near-term due to elevated costs of capital, with future investments primarily funded from cash on hand, excess cash flow, disposition proceeds, and borrowing availability under its unsecured revolving credit facility.
The report detailed the company's operating results, with total revenue for the three and six months ended June 30, 2024, at $173.1 million and $340.3 million, respectively. Net income available to common shareholders per diluted share showed a significant increase, reaching $0.51 for the three months ended June 30, 2024, compared to $0.10 for the same period in 2023, and $1.26 for the six months ended June 30, 2024, compared to $0.78 for the corresponding period in 2023. However, Funds From Operations As Adjusted (FFOAA) per diluted share decreased by 5% for the three months ended June 30, 2024, and 8% for the six months ended June 30, 2024, compared to the same periods in 2023.
The company also provided an overview of its recent developments, including investment spending, dispositions, impairment charges, and retirement and severance expenses. Investment spending during the six months ended June 30, 2024, totaled $132.7 million, with a focus on various experiential properties. Additionally, EPR Properties completed the sales of several properties, recognizing a gain on sale totaling $19.4 million. The report also highlighted impairment charges totaling $11.8 million related to the reassessment of the holding period for one of the company's theatre properties.
As a result of these announcements, the company's shares have moved 0.2% on the market, and are now trading at a price of $45.1. If you want to know more, read the company's complete 10-Q report here.
