EPR PropertiesNYSE: EPR

EPR Properties' revenue and FFO per share have recovered to pre-COVID levels, while dividend per share has not yet increased, leaving room for future dividend hikes. Going forward, investors could benefit from an attractive 8% dividend yield with the potential for dividend and price increases. Business for theaters (37% of rental income) remains strained, with ticket sales number significantly below pre-covid levels. Long-term trends (e.g. online streaming) will continue to negatively affect the industry.

KANSAS CITY, Mo.--(BUSINESS WIRE)--EPR Properties (NYSE: EPR) will release Q2 2024 results after market close July 31, 2024; management will host earnings call August 1 at 8:30 AM ET.

EPR Properties focuses on experiential real estate, offering stellar returns of over 1,300% since 1997. Stock trading at half its pre-Covid value, potential buying opportunity with interest rate decline. Low price to earnings ratio, strong balance sheet, and high dividend yield make EPR Properties undervalued compared to peers.

Realty Income holds a diversified portfolio of real estate that it leases to recession-resistant tenants. EPR Properties is recovering from the pandemic and reducing its exposure to the movie theater business.

EPR Properties owns a portfolio of entertainment properties benefiting from a strong U.S. economy and consumer spending. The REIT generates solid cash flows in the leisure market, and the portfolio is almost fully leased. Despite a drop in FFO as adjusted Y/Y, EPR stock supported its dividend with cash flow.

REITs are better investments than rental properties in most cases. They are not only safer, but they are also more rewarding. Even then, many investors favor rental properties due to misconceptions. Let's correct them once and for all.

Prior to May 31, 2024, my Readers mentioned 37 equities in their comments on my articles. Some bad-news investments (Rogues) mixed with (mostly) Favorites. Thus, readers commented about the ReFa/Ro. Ten analyst-target-estimated top net gain ReFa/Ro: T, VZ, PFE, BEN, EPR, CVX, FBY, TTE, ORC, and RC averaged 23.58% net gains from reader data collected 6/14/24. Ten analyst-target-augured May top price upside reader faves & rogues (ReFa/Ro) were: O, ORI, EPR, T, VZ, PFE, BEN, RC, CVX & TTE, boasting a 16.05% average target price upside estimate.

EPR Properties is a specialized REIT focused on experiential properties. Management intends to shift focus away from the education segment to the experiential economy. Despite recent underperformance, the stock offers appealing valuation and moderate risks.

Annaly Capital could cut its dividend again soon. W. P. Carey appears poised to continue increasing its recently reset payout.