EPR Raises 2026 FFOAA Outlook After Third-Quarter Gain

The Tip Desk · November 2, 2026 · 3 min read

FFOAA per diluted share rose 8.8% to $1.49 as the company lifted full-year guidance to $5.49–$5.57.

EPR Properties (EPR), the Kansas City-based experiential real estate investment trust, reported third-quarter 2026 revenue of $204.1 million, up 12.0% from a year earlier, and raised its full-year funds-from-operations outlook for a third consecutive quarter.

Total revenue growth accelerated from 10.1% in the second quarter and 3.6% in the first. Rental revenue rose 13.2% to $175.3 million. Mortgage and other financing income fell 4.9% to $14.6 million.

Net income available to common shareholders was $94.1 million, or $1.22 a share, reversing a 12.2% year-over-year decline in the second quarter and a 5.3% decline in the first. The company recognized a $30.5 million gain on real estate transactions, versus $8.1 million a year earlier, lifting income from operations to $139.3 million from $97.6 million. The provision for credit losses, net, was $0.8 million, compared with a $9.1 million provision a year earlier.

FFOAA per diluted common share rose 8.8% to $1.49, after 12.7% growth in the second quarter and 5.9% in the first. AFFO per diluted common share rose 10.8% to $1.54 under a revised definition that no longer deducts maintenance capital expenditures; the company recast all periods presented.

Investment spending in the quarter totaled $172.4 million, after $440.8 million in the second quarter and $51.3 million in the first, bringing nine-month spending to $664.5 million. Spending included $102.1 million for two eat-and-play and two fitness-and-wellness properties, one an existing Life Time property in Irvine, California; $27.2 million of mortgage financing secured by an experiential lodging property and a fitness-and-wellness property; and initial spending on a build-to-suit Live Nation venue in Portland, Oregon. The remainder related to other experiential build-to-suit development and redevelopment.

Chairman and CEO Greg Silvers said the quarter reflected continued momentum and that the company entered the live-venue category with Live Nation and added a Life Time fitness-and-wellness property. As of September 30, the company expects about $183.2 million of additional spending on existing experiential development and redevelopment, of which about $21.0 million is expected in the remainder of 2026.

Disposition proceeds in the quarter were $74.0 million, including the sale of one private school property for net proceeds of $68.2 million. Nine-month disposition proceeds totaled $85.4 million.

On July 17, the company entered a $1.6 billion credit agreement covering a $1.0 billion revolving facility and a new $600.0 million delayed-draw term loan due 2032. The revolving facility’s maturity moved to July 17, 2030, with two six-month extension options, and interest rates generally fell five basis points. The term loan was fully drawn at quarter-end at SOFR plus 115 basis points. The company repaid $179.6 million of Series B notes at maturity on August 24. Unrestricted cash was $52.4 million, with the revolver undrawn.

EPR entered into forward sale agreements under its ATM program for initial gross sales proceeds of $66.6 million, or an average of $60.79 a share, subject to adjustment upon settlement. Unsettled forwards as of September 30 carried estimated net proceeds of $134.6 million, or 2,285,835 shares.

The company raised 2026 FFOAA per diluted common share guidance to $5.49–$5.57 from $5.41–$5.57, an 8.0% midpoint increase over 2025. Investment spending guidance rose to $675.0 million–$725.0 million from $600.0 million–$700.0 million. Disposition proceeds guidance was set at $86.0 million. The monthly common dividend remained $0.31 a share, an annualized $3.72, a 5.1% increase over the annualized dividend at the end of the prior year.