Entertainment Properties Trust (EPR)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPR is quite cheap for a REIT at 9X cash flow. Shares are still up 12% for the year. The 7.16% yield is nice, and the last distribution increase was in February of this year (28.5 to 29.5 cents). Debt is high, like most REITs. Payout ratio (12 months) is 73%. There is some cushion here and we would not see the distribution at particular risk. In the Q3 cash flow per share was $1.37, beating estimates of $1.34; revenue was $60.5M missing estimates of $64.8M. Guidance for 2026 was raised slightly. We would view it as an attractive mid-cap income security, and priced well. 
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Entertainment REITs is not an area he would suggest you get into right now. Relatively cheap compared to some of the blue chip names in the US but there is huge exposure to discretionary spending, which is going down.