Monthly Dividend Stock In Focus: EPR Properties – Sure Dividend

Up to date on April twenty fourth, 2026 by Josh Arnold

Actual property and dividend shares are two of the most well-liked automobiles for creating passive retirement earnings.

The draw back to proudly owning rental properties is that it isn’t actually passive. Any landlord who has needed to name a plumber or an electrician throughout the midnight can attest to this.

Actual property funding trusts—or REITs—are very enticing funding automobiles for traders seeking to seize the returns of the actual property sector whereas benefiting from the hands-off strategy of dividend shares.

EPR Properties (EPR) is without doubt one of the most well-known REITs. Within the second half of 2021, EPR reinstated its month-to-month dividend after suspending it for over a yr as a result of coronavirus pandemic.

Which means EPR rejoined the record of month-to-month dividend shares. We’ve compiled an inventory of 119 month-to-month dividend shares, together with vital monetary metrics like dividend yields and payout ratios, which you’ll view by clicking on the hyperlink beneath:

This text will analyze the funding prospects of EPR Properties intimately.

Enterprise Overview

EPR Properties is a triple web lease actual property funding belief specializing in leisure, recreation, and training properties.

A triple web lease implies that the tenant is chargeable for paying the three foremost prices related to actual property: taxes, insurance coverage, and upkeep. Working as a triple web lease REIT reduces EPR Properties’ working bills, and will increase the predictability of earnings.

EPR has recognized leisure, recreation, and training because the three massive buckets it invests in. It has then recognized enticing sub-segments of these bigger segments, together with film theaters, ski resorts, and constitution colleges.

Supply: Investor Presentation

EPR is targeted in varied metropolitan areas all through the US and components of Canada, so it’s extremely diversified geographically in addition to with its tenants. It additionally practices fixed capital recycling, divesting much less enticing property in favor of extra enticing ones. This lively strategy is one thing that units EPR other than another REITs.

EPR posted fourth quarter and full-year earnings on February twenty sixth, 2026, and outcomes have been barely higher than anticipated. Funds-from-operations per-share got here to $1.30, which met expectations. Income was up simply over 3% year-over-year to $183 million, beating estimates by $1 million. Rental income rose $8 million year-over-year.

For the complete yr, FFO-per-share was $5.12, which was up properly from $4.87 the yr earlier than. Disposition proceeds got here to $35 million for This autumn and $168 million for the yr. The corporate additionally introduced that it was buying seven regional amusement parks from Six Flags for $342 million. That is the belief’s largest acquisition since 2017, however shares bought off closely on the information.

Individually, the dividend was boosted by 5% to $3.72 per share yearly, its fifth consecutive enhance. We’re anticipating $5.35 in adjusted FFO-per-share for 2026, however observe the Six Flags parks acquisition is a big wildcard for the approaching quarters.

Progress Prospects

Previous to 2020, EPR had maintained a monitor file of regular development. From 2010 to 2019, EPR compounded its adjusted FFO-per-share by virtually 8% per yr. The coronavirus pandemic upended just about all REITs and induced EPR’s FFO-per-share to say no from $5.44 in 2019 to $1.43 in 2020.

Though the belief confronted main challenges throughout the pandemic, which confirmed in its monetary outcomes, EPR continues to recuperate strongly. EPR nonetheless has many alternatives to drive its development. The corporate’s concentrate on experiential properties protects it in opposition to e-commerce threats. EPR believes that customers will nonetheless need these experiences, and thus, its properties will generate robust visitors.

The belief believes there’s robust future development potential in location-based leisure and several other underpenetrated experiential segments in experiential actual property. Administration believes there’s a $100 billion+ addressable market alternative there.

EPR has considerably lowered its training portfolio whereas rising most of its property varieties in its experiential portfolio. EPR will concentrate on rising all property varieties in its experiential portfolio, apart from theatres. The belief desires to scale back its dependence on theatres given the numerous volatility in outcomes from that phase.

Supply: Investor Presentation

We anticipate 5% annual FFO-per-share development over the following 5 years. EPR’s development will probably be fueled by its aggressive benefits, primarily its portfolio of specialised properties. Via years of expertise, EPR has methodically recognized essentially the most worthwhile properties and targeted its investments in these areas. We do query the amusement park acquisition, however observe that EPR’s administration has confirmed to be robust operators through the years.

Aggressive Benefit & Recession Efficiency

The corporate’s concentrate on experiential properties offers it a aggressive benefit by defending it in opposition to e-commerce threats. EPR believes that its properties will generate robust visitors, as shoppers will nonetheless need these experiences. We additionally consider the administration crew’s willingness to pivot when situations require it’s a extremely enticing trait.

The corporate actually isn’t proof against recessions, however because of its enterprise mannequin and benefits, we see EPR as one of many better-run REITs in our protection universe. A return to development ought to enable the corporate to boost the dividend progressively over time.

Dividend Evaluation

EPR’s dividend historical past was spectacular heading into 2020. The corporate elevated its annual per-share dividend by roughly 6% per yr from 2010 to 2019. After all, the pandemic compelled the corporate to droop its dividend for many of 2020.

Luckily, EPR administration expects its restoration to proceed. This expectation gave administration confidence to extend the month-to-month dividend for the fifth consecutive time, and it’s presently good for a 6.7% annual yield.

On an annualized foundation, the $3.72 per share dividend continues to be beneath the pre-COVID payout of $4.59 per share. Nonetheless, at this degree, EPR inventory yields 6.7%. Due to this fact, EPR inventory continues to be enticing for earnings traders as a excessive dividend inventory.

EPR has a fairly leveraged capital construction that affords it some flexibility. It has labored to restore its steadiness sheet within the wake of the pandemic to enhance its dividend security and development potential additional.

Supply: Investor Presentation

EPR’s debt totals about $2.9 billion, with a weighted common debt maturity of three years and a weighted common rate of interest of 4.4%. It has a $1 billion credit score revolver that has a zero steadiness, giving EPR loads of liquidity.

All of this helps EPR’s development plans and, by extension, its capacity to not solely pay its dividend but additionally, hopefully increase it over time.

EPR’s dividend seems to be safe, and the belief will seemingly proceed to boost it at significant charges over time if its FFO continues to recuperate again to pre-COVID ranges. This makes the inventory enticing for these looking for present earnings and dividend development.

Ultimate Ideas

EPR Properties seems to be performing very properly following the pandemic and continues to recuperate strongly into 2026. The REIT has a dominant place within the possession of film theaters, leisure services, and academic properties, though as common, its portfolio is beneath building. These are comparatively small subsegments of the true property trade, which provides EPR the benefit of being a ‘large fish in a small pond.’

EPR Properties inventory has a 6.7% dividend yield and has its month-to-month dividend funds for 5 years. In consequence, it’s as soon as once more an interesting inventory for earnings traders searching for excessive yields and month-to-month payouts.

After all, this depends upon the continued restoration in EPR’s portfolio metrics and monetary outcomes. Based mostly on all these elements, EPR Properties seems to be a good selection for earnings traders or traders searching for some publicity to high-yield REITs.

Don’t miss the assets beneath for extra month-to-month dividend inventory investing analysis.

And see the assets beneath for extra compelling funding concepts for dividend development shares and/or high-yield funding securities.