EPR Properties' (EPR) Deal Not Surprising Given Low Investment - Citizens

Citizens analyst Mitch Germain reiterated a Market Perform rating on EPR Properties (NYSE: EPR).

The analyst commented, "EPR Properties announced a large sale-leaseback, aligning full-year investment volume with management's outlook, while marking an entry into the on-course golf sector and expanding theme park exposure; we maintain our Market Perform rating. With investment volume in the first three quarters running significantly below the guidance midpoint, this deal was not surprising, as recent earnings calls have highlighted a growing pipeline with larger ticket deals. We view this deployment in a positive light, as an improved cost of capital, with shares up ~17% YTD, compared to the broader REIT market, which is roughly flat on the year, and low leverage (debt/EBITDA of 4.7x) are enabling the company to both expand its deployment pipeline and consider these larger transactions. Shares trade around 10x 2026E earnings, which represents a discount to broader net-lease REITs (mid-12x), though this discount is aligned with historical averages, suggesting a fair valuation."

For an analyst ratings summary and ratings history on EPR Properties click here. For more ratings news on EPR Properties click here.

Shares of EPR Properties closed at $51.64 yesterday.

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