EPR Properties

EPR Properties is a unique company in that it is a growing Real Estate Investment Trust. It actually grows its revenues, earnings and dividends on a per share basis. Most REITs grow but they do that by diluting their shares so that in the end, the price of the stock and the dividend remain relatively stable. That doesn't seem to be the case with this company. Add in the fact that this company pays a monthly dividend and suddenly I'm interested. 

​EPR Properties is a real estate investment trust. It invests in the real estate markets of United States and Canada. The firm develops, owns, leases and finances properties in select market segments primarily related to entertainment, education and recreation. It was formerly known as Entertainment Properties Trust. EPR Properties was founded on August 22, 1997 and is based in Kansas City, Missouri.
​(Summary) (Company) (Chart)

22 May 2016
Price $69.76
1yr Target $67.60
Analysts 5
Dividend $3.84
Payout Ratio 125.90%

1yr Cap Gain -3.10%
Yield 5.50%
1yr Tot Return 2.40%
​
P/E 22.89
PEG 3.69
Beta 0.84
​
​

EPS (ttm) $3.05
EPS next yr $3.23
​Forward P/E 21.62
EPS next 5yr 6.20%
1yr Price Support $20.02
​
​Market Cap $4.40 Bil
Revenues $440.30 Mil
Earnings $181.90 Mil
Profit Margin 41.31%

Quick Ratio ---
Current Ratio ---
Debt/Equity 0.91
​

1yr RevGR 9.34%
3yr RevGR 9.72%
5yr RevGR 8.28%

1yr EarnGR 2.44%
3yr EarnGR 13.80%
5yr EarnGR 9.51%

​1yr DivGR 5.78%
3yr DivGR 6.64%
5yr DivGR 6.52%

ROA 4.30%
ROE 8.90%
​

Operations

​EPR Properties is a self-administered Real Estate Investment Trust (REIT). As of the end of last year their total assets exceeded $4.2 billion. The company's investments are generally structured as long-term triple-net leases that require the tenants to pay substantially all expenses associated with the operation and maintenance of the property, or as long-term mortgages with economics similar to their triple-net lease structure.

​For financial reporting purposes, the company groups their investments into four reportable operating segments: Entertainment, Education, Recreation and Other. Their total investments of approximately $4.6 billion at December 31, 2015 consisted of interests in the following:

• $2.5 billion or 53% related to entertainment properties, which includes megaplex theatres, entertainment retail centers (centers typically anchored by an entertainment component such as a megaplex theatre or live performance venue and containing other entertainment-related or retail properties), family entertainment centers and other retail parcels;
• $1.0 billion or 22% related to education properties, which consists of investments in public charter schools, early education centers and K-12 private schools;
• $943.3 million or 21% related to recreation properties, which includes metro ski parks and waterparks and golf entertainment complexes; and
• $203.4 million or 4% related to other properties, which consists primarily of $200.9 million related to the Adelaar casino and resort project in Sullivan County, New York (excluding $38.7 million related to the Adelaar indoor waterpark project included in recreation). 

Entertainment

As of December 31, 2015, our Entertainment segment consisted of investments in megaplex theatres, entertainment retail centers, family entertainment centers and other retail parcels totaling approximately $2.5 billion with interests in:

• 131 megaplex theatre properties located in 34 states and Ontario, Canada;
• nine entertainment retail centers (which include eight additional megaplex theatre properties and one live performance venue) located in Westminster, Colorado; New Rochelle, New York; Burbank, California; Suffolk, Virginia; Charlotte, North Carolina; and Ontario, Canada;
• seven family entertainment centers located in Illinois, Indiana and Florida;
• land parcels leased to restaurant and retail operators adjacent to several of our theatre properties;
• $23.6 million in construction in progress primarily for real estate development for two megaplex theatres and redevelopment of two of our existing megaplex theatres as well as eight other retail redevelopment projects; and
• $4.5 million in undeveloped land inventory. 

Education

As of December 31, 2015, our Education segment consisted of investments in public charter schools, early education centers and K-12 private schools totaling approximately $1.0 billion with interests in:

• 70 public charter school properties located in 18 states and the District of Columbia;
• 18 early education centers located in six states;
• two K-12 private schools located in New York and Illinois and one 5-12 private school located in California; and
• $112.8 million in construction in progress for real estate development or expansion of 11 public charter schools, 14 early education centers and one K-12 private school. 

Recreation

As of December 31, 2015, our Recreation segment consisted of investments in metro ski parks, resorts, waterparks and golf entertainment complexes totaling approximately $943.3 million with interests in:

• 10 metro ski parks located in Ohio, Maryland, Pennsylvania, Vermont and Virginia;
• five waterparks located in Kansas, Texas and Pennsylvania;
• 19 golf entertainment complexes in nine states; and
• $59.5 million in construction in progress for three golf entertainment complexes and the development of an indoor waterpark hotel at the Adelaar casino and resort project located in Sullivan County, New York. 

Other

As of December 31, 2015, our Other segment consisted of investments totaling approximately $203.4 million with interests in:

• $183.0 million in construction in progress for development of the casino, golf course, entertainment village and infrastructure related to the Adelaar casino and resort project in Sullivan County, New York;
• $17.9 million related to undeveloped land inventory at our Adelaar casino and resort project in Sullivan County, New York; and
• $2.5 million in mortgage financing related to one sold winery property. 

​My Perspective

There's a lot of things I like about this company but the price isn't one of them. I like the business they're in and I like the businesses of their occupants or partners. I love the entertainment area of the economy and I think the next generation will continue to spend more and more of their income on entertainment ensuring that EPR's buildings will remain occupied and income producing. 

So I'm interested in starting a position in this company. I like REITs and I like monthly dividends, so this will fit nicely into my investing strategy. But this company has been on a roll since December and I believe it's because that's when they announced they were building a casino. That has electrified investors and driven up the stock fro the low $50s into the low $70s. So this probably isn't the best time to be buying shares of this company. 

With the weekly lower Bollinger Band near $53, I'll wait until the stock pulls back closer to this area. That may not happen for sometime but this company is probably worth waiting for if gotten at the right price. I hope I don't have to wait too long. 
​