EPR Properties (NYSE:EPR) was down soon after the bell after a downgrade to neutral from buy by Bank of America. The firm said EPR can face pressure on its multiple as a result of the Hollywood strikes given its exposure to movie theaters.
EPR made headlines early in August with the announcement of its second-quarter financial numbers. Q2 FFO of $1.28 beat estimates by two cents.
Revenue of $172.91 Million beat by $20.46 Million .
The Company also provided common share guidance for 2023 of $5.05 to $5.15 vs. consensus of $4.90, representing an increase of 9% at the midpoint versus 2022 performance. Additionally, the Company is confirming 2023 investment spending guidance of a range of $200.0 million to $300.0 million.
“During the quarter, we reached a meaningful milestone as we entered into a restructuring agreement with Regal, providing us with a significantly stronger tenant credit, a long-term master lease and a percentage rent component allowing us to participate in the recovery of the box office. With this resolution, we also have more visibility into our earnings outlook, and we are pleased to provide earnings guidance for 2023,” stated Company President and CEO Greg Silvers.
The Company's investment spending during the three months ended June 30, 2023 totaled $32.2 million, bringing the total investment spending for the six months ended June 30, 2023 to $98.7 million. Investment spending for the quarter was primarily related to experiential build-to-suit development and redevelopment projects.
EPR shares faded 42 cents, or nearly 1%, to $42.32.
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