The Kansas City-based REIT, which specializes in experiential real estate such as theaters, attractions, fitness centers, and entertainment venues, reported significant year-over-year growth in key operating metrics while announcing a substantial increase in both capital expenditures and its full-year earnings forecast.
EPR Properties posted strong second-quarter results with total revenue of $196.1 million, representing a 10.1% increase from $178.1 million in the same quarter a year ago. The company’s presentation highlighted the growth in adjusted funds from operations (FFO), which rose 12.7% year-over-year from $1.26 to $1.42 per share.
Adjusted funds from operations (AFFO) per share rose 15.3% in the second quarter of 2025 to $1.43, compared with $1.24 in the same quarter a year earlier. However, net income per share fell by 13.2% to $0.79, compared to $0.91 in the same quarter a year ago.
The second quarter marked a peak in EPR’s investment activity since the start of the COVID pandemic. The company invested $440.8 million with an average initial yield of approximately 8.5%. Capital expenditures year-to-date totaled $492.2 million, significantly exceeding the company’s original annual target.
The company’s investment strategy focused on diversifying away from theater properties, which now account for about one-third of the portfolio, compared to a higher proportion in the past. Notable acquisitions during the quarter included seven previously announced Six Flags attractions, two additional attractions, a golf club, and a hot spring.
Of particular note is the addition of Netflix $NFLX (+1,76%) as a new tenant through EPR’s acquisition of Netflix House Philadelphia, an investment-grade company that transforms digital content into immersive, physical experiences. This transaction underscores the company’s strategic focus on experiential real estate that combines digital and physical entertainment.
The experiential dining portfolio now accounts for 95% of gross investments and comprises 291 properties and 57 operators, while the education portfolio accounts for 5% with 55 properties and five operators.
Revised Forecast & Outlook
Based on strong first-half results and a solid investment pipeline, EPR has raised both its capital expenditure and earnings forecasts for the full year 2026.
The company raised its forecast for adjusted FFO per share to $5.41 to $5.57, representing 7.2% year-over-year growth. The previous forecast was $5.37 to $5.53, representing 6.5% growth.
More importantly, however, EPR has raised its capital expenditure target for 2026 from $500 million to $600 million to $600 million to $700 million. According to management, this reflects a strong pipeline of unmarketed investment opportunities generated through direct relationships.