EPR Properties (EPR) Stock Forecast & Price Target

EPR Properties is projected to experience a 4.8% year-over-year growth in normalized Funds From Operations (FFO) for 2025, underpinned by reduced interest expenses and increased rental income, which suggests a stabilizing financial outlook. The company’s focus on experiential properties is expected to leverage a return to normalized revenue and attendance at theaters, alongside strengthening operator coverages in the leisure and entertainment sectors. Furthermore, the anticipated sales of select theater and education assets, coupled with the potential for strong free cash flow, enhance EPR's financial flexibility and intrinsic value, positioning the company favorably for continued growth.

EPR Properties faces a challenging outlook as box office performance remains below expectations, compounded by adverse weather conditions that adversely affect the performance of experiential properties, particularly in the struggling theater segment. The company has exhibited concerning tenant concentration in sectors such as retail and restaurants, which may expose it to significant sector-specific downturns, further jeopardizing revenue stability and occupancy rates. Additionally, management's lowered FFO estimates for 2025 reflect increasing provisions for credit losses and associated expenses, underscoring the ongoing financial pressures faced by the REIT.