EPR Properties: Time to Bid Farewell After 35% Surge
ByAinvest
Thursday, Jul 17, 2025 11:28 am ET1min read
EPR--
The author highlights that while EPR Properties has provided significant returns, the stock's current valuation is no longer aligned with the author's investment criteria. The P/AFFO ratio has increased to around 12x from a historic valuation of 8.71x, making it relatively expensive compared to the author's preferred valuation range. Additionally, the author points out that the company's management has been successful in de-risking its portfolio by focusing on non-theater assets, which has led to a more balanced and less risky investment.
The author also mentions that EPR Properties' dividend yield, while still attractive, has decreased due to the stock's appreciation. The current yield is around 5.8%, which is slightly above the yields of other high-yielding REITs. However, the author believes that the market is not fully appreciating the value of EPR Properties' portfolio and that there are more beaten-down REITs with better relative valuations.
The author concludes by stating that while EPR Properties remains on their watchlist, they will likely sell their remaining 16.4% stake in the coming weeks. The author encourages readers to consider other REITs with potentially better valuations and higher growth prospects.
References:
[1] https://seekingalpha.com/article/4801949-epr-properties-its-time-to-say-goodbye-rating-downgrade
[2] https://www.ainvest.com/news/epr-properties-declares-0-295-monthly-dividend-maintaining-yield-5-93-2507/
[3] https://finance.yahoo.com/news/over-40-ultra-high-yield-070600851.html
EPR Properties' stock has risen 35% since a Seeking Alpha article in November, and including dividends, it has increased around 40%. The author of the article has downgraded the company's rating, suggesting it is time to say goodbye.
EPR Properties (NYSE: EPR) has seen a remarkable 35% increase in its stock price since November, with dividends pushing the total gain to around 40%. However, the author of a recent Seeking Alpha article has downgraded the company's rating, suggesting it may be time to part ways with the investment. The author's rationale centers on valuation and the relative attractiveness of other REITs.The author highlights that while EPR Properties has provided significant returns, the stock's current valuation is no longer aligned with the author's investment criteria. The P/AFFO ratio has increased to around 12x from a historic valuation of 8.71x, making it relatively expensive compared to the author's preferred valuation range. Additionally, the author points out that the company's management has been successful in de-risking its portfolio by focusing on non-theater assets, which has led to a more balanced and less risky investment.
The author also mentions that EPR Properties' dividend yield, while still attractive, has decreased due to the stock's appreciation. The current yield is around 5.8%, which is slightly above the yields of other high-yielding REITs. However, the author believes that the market is not fully appreciating the value of EPR Properties' portfolio and that there are more beaten-down REITs with better relative valuations.
The author concludes by stating that while EPR Properties remains on their watchlist, they will likely sell their remaining 16.4% stake in the coming weeks. The author encourages readers to consider other REITs with potentially better valuations and higher growth prospects.
References:
[1] https://seekingalpha.com/article/4801949-epr-properties-its-time-to-say-goodbye-rating-downgrade
[2] https://www.ainvest.com/news/epr-properties-declares-0-295-monthly-dividend-maintaining-yield-5-93-2507/
[3] https://finance.yahoo.com/news/over-40-ultra-high-yield-070600851.html
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet