EPR Properties (NYSE:EPR) went public in November 1997 and today the Kansas City-based REIT has a market cap of around $4.6 billion.
With gross assets of around $3.3 billion, EPR is the largest owner of entertainment-related real estate, with a large concentration in the theater industry, comprising 67% of its total portfolio (based on investment value), as well as charter school properties, ski hills and entertainment retail centers.
EPR is a specialty REIT that invests in properties in select categories which require unique industry knowledge, while offering the potential for stable and attractive returns. As of the latest quarter, EPR owns 193 properties in 38 States, DC, and Canada. The 14.6 million square foot portfolio generates approximately $331 million in annualized NOI.
EPR does not compete directly with most Triple Net REITs and as a result, the company has been able to source new investments with less competition. Accordingly, signature theaters represent a majority of EPR's revenues and the REIT's focused income strategy provides investors with considerable growth opportunities. As a landlord for AMC Entertainment, Cinemark Holdings, and Rave Cinemas, EPR has targeted its core income strategy around leasing facilities to specialized sector specific chains.
Recently EPR has announced that it was teaming up with Empire Resorts, (NASDAQ:NYNY), the company to apply for a license to own and operate a destination gaming resort that will include a four-star hotel. The Sullivan County, NY project known as Adelaar (the Dutch word for eagle) will feature a broad variety of leisure and recreational programming.
At ReCon this week in Las Vegas I caught up with EPR's CEO, David Brain, to discuss the new world-class resort as well as the company's latest earnings results.
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