EPR Properties Reports Second Quarter 2026 Results

Increases 2026 Earnings and Investment Spending Guidance

Enters Into New $1.6 Billion Credit Agreement

KANSAS CITY, Mo.--(BUSINESS WIRE)--EPR Properties (NYSE:EPR) today announced operating results for the second quarter ended June 30, 2026 (dollars in thousands, except per share data):

Second Quarter Company Headlines

• Strong Funds from Operations Growth - For the second quarter of 2026, FFOAA per diluted common share and AFFO per diluted common share increased by 12.7% and 15.3%, respectively, compared to the second quarter of 2025.
• Executes on Investment Pipeline - During the second quarter of 2026, the Company's investment spending totaled $440.8 million and included the previously announced acquisition of a portfolio of seven attraction properties from Six Flags Entertainment Corporation as well as investments in four other attraction and fitness and wellness properties.
• Enters Into Forward Sales Agreements Under Its ATM Program - During the second quarter of 2026, the Company entered into two forward sales agreements pursuant to its ATM Program for initial gross sales proceeds of $23.4 million, or an average forward price of $59.70 per share, subject to adjustment upon settlement. As of June 30, 2026, the Company had unsettled forward sales agreements with total estimated net proceeds of $69.5 million, representing 1,189,884 common shares.
• New $1.6 Billion Credit Agreement - Subsequent to quarter-end, the Company entered into a new amended and restated $1.6 billion credit agreement that, among other things, extends the maturity date and generally reduces the interest rate payable on its $1.0 billion unsecured revolving credit facility and establishes a new $600.0 million unsecured delayed draw term loan facility due in 2032.
• Increases 2026 Guidance - The Company is increasing FFOAA per diluted common share guidance for 2026 to a range of $5.41 to $5.57 from a range of $5.37 to $5.53, representing an increase of 7.2% at the midpoint over 2025. The Company is also increasing investment spending guidance for 2026 to a range of $600.0 million to $700.0 million from a range of $500.0 million to $600.0 million and confirming disposition proceeds guidance of $50.0 million to $100.0 million.

"The second quarter marked a significant step forward in executing our growth strategy with the closing of our previously announced acquisition of the Six Flags portfolio of seven properties, as well as additional investments in attraction and fitness and wellness properties," stated Company Chairman and CEO Greg Silvers. "This disciplined growth, combined with continued strength across our experiential portfolio, drove strong quarterly earnings, while our new $1.6 billion credit agreement further enhances our liquidity and financial flexibility to pursue additional opportunities. We are increasing our 2026 earnings and investment spending guidance, underscoring our confidence in the durability of our growth."

Investment Update

The Company's investment spending during the three months ended June 30, 2026 totaled $440.8 million, bringing the total investment spending for the six months ended June 30, 2026 to $492.2 million. Investment spending for the quarter included the previously announced acquisition of seven attraction properties from Six Flags Entertainment Corporation for a total of $304.4 million with approximately $11.0 million anticipated to be invested in additional improvements to the properties over the next two years. Additionally, investment spending for the quarter included the acquisition of two attraction properties and one fitness and wellness property for a total of $114.3 million and mortgage financing of $12.8 million secured by a fitness and wellness property. The remaining investment spending for the quarter related to experiential build-to-suit development and redevelopment projects.

As of June 30, 2026, the Company expects approximately $92.0 million in additional investment spending for existing experiential development and redevelopment projects, of which approximately $65.0 million is expected to be funded in the remainder of 2026. The Company also has a strong pipeline of potential new investments.

ATM Activity

During the three months ended June 30, 2026, the Company entered into two forward sales agreements pursuant to its "at-the-market" offering program ("ATM Program") to sell an aggregate of 392,462 common shares for initial gross proceeds of $23.4 million, or an average forward price of $59.70 per share, subject to adjustment upon settlement. The Company has the option to settle the outstanding common shares any time before the respective maturity of the forward sales agreements on May 27, 2027 and June 30, 2027, subject to customary closing conditions, for the initial gross proceeds as adjusted for payment of commissions and applicable dividends as well as a daily adjustment based on the overnight bank borrowing rate less a spread. As of June 30, 2026, the Company had unsettled forward sales agreements with total estimated net proceeds of $69.5 million, representing 1,189,884 common shares.

New $1.6 Billion Credit Agreement

On July 17, 2026, the Company entered into a Fifth Amended, Restated and Consolidated Credit Agreement (the "Amended Credit Agreement"), governing its $1.0 billion senior unsecured revolving credit facility and a new $600.0 million senior unsecured delayed draw term loan facility. The Amended Credit Agreement replaced the Company’s existing $1.0 billion senior unsecured revolving credit facility.

The amendments to the unsecured revolving credit facility, among other things, (i) extend the maturity date from October 2, 2028 to July 17, 2030, with two six-month extension options, subject to the payment of additional fees and the satisfaction of customary conditions, (ii) generally reduce the interest rate payable on outstanding loans by 5 basis points, (iii) modify the asset value calculations under certain financial covenants to include the expected cash proceeds from the sale of common shares under qualified forward equity contracts and (iv) split the prior revolving facility’s $300.0 million foreign currency sublimit into a separate, stand-alone foreign currency revolving credit facility of the same size.

The Amended Credit Agreement also established a new senior unsecured delayed draw term loan facility that, among other things, (i) provides for an initial committed amount of $600.0 million that may be drawn upon prior to January 17, 2027, subject to earlier termination, (ii) bears interest based on the Company’s credit ratings (SOFR plus 115 basis points at closing), (iii) carries a ticking fee of 0.25% per annum on undrawn commitments beginning on October 16, 2026, and (iv) matures on January 17, 2032.

In addition, the Amended Credit Agreement includes a $1.0 billion accordion feature on the combined unsecured revolving credit and delayed draw term loan facilities that increases the maximum amount available under the combined facilities from $1.6 billion to $2.6 billion, at the Company’s election and subject to lender consent and customary conditions.

Portfolio Update

The Company's total assets were $6.1 billion (after accumulated depreciation of approximately $1.8 billion) and total investments (a non-GAAP financial measure) were $7.5 billion at June 30, 2026, with Experiential investments totaling $7.1 billion, or 95%, and Education investments totaling $0.4 billion, or 5%.

The Company's Experiential portfolio (excluding property under development, undeveloped land inventory and two joint venture properties) consisted of the following property types (owned or financed) at June 30, 2026:

• 148 theatre properties;
• 61 eat & play properties (including seven theatres located in entertainment districts);
• 35 attraction properties;
• 11 ski properties;
• four experiential lodging properties;
• 30 fitness & wellness properties;
• one gaming property; and
• one cultural property.

As of June 30, 2026, the Company's wholly-owned Experiential portfolio consisted of approximately 19.5 million square feet, was 99% leased or operated and included a total of $10.0 million in property under development and $20.2 million in undeveloped land inventory.

The Company's Education portfolio consisted of the following property types (owned or financed) at June 30, 2026:

• 46 early childhood education center properties; and
• nine private school properties.

As of June 30, 2026, the Company's wholly-owned Education portfolio consisted of approximately 1.1 million square feet and was 100% leased.

The combined wholly-owned portfolio consisted of 20.6 million square feet and was 99% leased or operated.

Dividend Information

The Company's Board of Trustees declared its monthly cash dividend to common shareholders during the second quarter of 2026 totaling $0.93 per share. This dividend represents an annualized dividend of $3.72 per common share, an increase of 5.1% over the prior year's annualized dividend (based upon the monthly dividend at the end of the prior year).

Additionally, the Company declared its regular quarterly dividends to preferred shareholders of $0.359375 per share on both the Company's 5.75% Series C cumulative convertible preferred shares and Series G cumulative redeemable preferred shares and $0.5625 per share on its 9.00% Series E cumulative convertible preferred shares, payable July 15, 2026 to shareholders of record as of June 30, 2026.

2026 Guidance

(Dollars in millions, except per share data):

The Company is increasing its 2026 earnings guidance for FFOAA per diluted common share to a range of $5.41 to $5.57 from a range of $5.37 to $5.53, representing an increase of 7.2% at the midpoint over 2025. The 2026 guidance for FFOAA per diluted common share is based on an FFO per diluted common share range of $5.43 to $5.59 adjusted for retirement and severance expense, transaction costs, provision (benefit) for credit losses, net, and deferred income tax expense. FFO per diluted common share for 2026 is based on a net income available to common shareholders per diluted common share range of $3.03 to $3.19 plus estimated real estate depreciation and amortization of $2.46 and allocated share of joint venture depreciation of $0.05, less estimated gain on real estate transactions of $0.02 and the impact of Series C and Series E dilution of $0.09 (in accordance with the NAREIT definition of FFO).

Additional earnings guidance detail can be found on page 23 in the Company's supplemental information package available in the Investor Center of the Company's website located at https://investors.eprkc.com/financial-information/quarterly-results.

Conference Call Information

Management will host a conference call to discuss the Company's financial results on July 30, 2026 at 8:30 a.m. Eastern Time. The call may also include discussion of Company developments and forward-looking and other material information about business and financial matters. The conference will be webcast and can be accessed via the Webcasts page in the Investor Center on the Company's website located at https://investors.eprkc.com/events-presentations. It is recommended that you join 10 minutes prior to the start of the event (although you may register and join the webcast at any time during the call).

You may watch a replay of the webcast by visiting the Webcasts page at https://investors.eprkc.com/events-presentations.

Quarterly Supplemental

The Company's supplemental information package for the second quarter and six months ended June 30, 2026 is available in the Investor Center on the Company's website located at https://investors.eprkc.com/financial-information/quarterly-results.

Non-GAAP Financial Measures

Funds From Operations (FFO), Funds From Operations As Adjusted (FFOAA) and Adjusted Funds From Operations (AFFO)

The National Association of Real Estate Investment Trusts (NAREIT) developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. Pursuant to the definition of FFO by the Board of Governors of NAREIT, the Company calculates FFO as net income available to common shareholders, computed in accordance with GAAP, excluding gains and losses on real estate transactions and impairment losses on real estate, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships, joint ventures and other affiliates. Adjustments for unconsolidated partnerships, joint ventures and other affiliates are calculated to reflect FFO on the same basis. The Company has calculated FFO for all periods presented in accordance with this definition.

In addition to FFO, the Company presents FFOAA and AFFO. FFOAA is presented by adding to FFO retirement and severance expense, transaction costs, provision (benefit) for credit losses, net, costs associated with loan refinancing or payoff, preferred share redemption costs and impairment of operating lease right-of-use assets and subtracting sale participation income, gain on insurance recovery and deferred income tax (benefit) expense. AFFO is presented by adding to FFOAA non-real estate depreciation and amortization, deferred financing fees amortization and share-based compensation expense to management and Trustees; and subtracting amortization of above and below market leases, net and tenant allowances, maintenance capital expenditures (including second-generation tenant improvements and leasing commissions), straight-lined rental revenue (removing the impact of straight-lined ground sublease expense), the non-cash portion of mortgage and other financing income and the allocated share of joint venture non-cash items.

FFO, FFOAA and AFFO are widely used measures of the operating performance of real estate companies and are provided here as supplemental measures to GAAP net income available to common shareholders and earnings per share, and management provides FFO, FFOAA and AFFO herein because it believes this information is useful to investors in this regard. FFO, FFOAA and AFFO are non-GAAP financial measures. FFO, FFOAA and AFFO do not represent cash flows from operations as defined by GAAP and are not indicative that cash flows are adequate to fund all cash needs and are not to be considered alternatives to net income or any other GAAP measure as a measurement of the results of our operations or our cash flows or liquidity as defined by GAAP. It should also be noted that not all REITs calculate FFO, FFOAA and AFFO the same way so comparisons with other REITs may not be meaningful.

The following table summarizes FFO, FFOAA and AFFO, including per share amounts for the three and six months ended June 30, 2026 and 2025, respectively, and reconciles such measures to net income available to common shareholders, the most directly comparable GAAP measure:

The conversion of the 5.75% Series C cumulative convertible preferred shares and the 9.00% Series E cumulative convertible preferred shares would be dilutive to FFO, FFOAA and AFFO per share for the three and six months ended June 30, 2026 and 2025.

EPR Properties
Brian Moriarty, 816-472-1700
www.eprkc.com