A Fresh Look at EPR Properties (EPR) Valuation Following $543 Million Capital Raise and Latest Earnings Update

EPR Properties (NYSE:EPR) just wrapped up a fixed-income offering, raising $543 million through new senior unsecured notes. This fresh capital could give the company more room to maneuver as it manages upcoming projects and growth plans.

See our latest analysis for EPR Properties.

Fresh off the successful debt raise and posting stronger sales and net income for the latest quarter, EPR Properties has attracted renewed investor interest. The share price is up 15.9% year-to-date and recent total shareholder return over the past twelve months sits at an impressive 19.6%. Momentum has been building, despite the company gently lowering its full-year earnings guidance, and the five-year total return of 122.9% signals that long-term holders have been well-rewarded even through bumps along the way.

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With the share price up and a sizable discount to analyst targets, the question for investors is clear: is EPR Properties still undervalued, or has the market already priced in its future growth prospects?

Most Popular Narrative: 12.7% Undervalued

With the most widely followed narrative estimating EPR Properties’ fair value at $58.35 per share, the recent closing price of $50.96 suggests notable upside. This view sets the stage for a deeper look at what is driving the case for value.

EPR's pivot toward more aggressive investment in experiential development and redevelopment, backed by an improved cost of capital and over $100 million already committed to new projects, positions the company to take advantage of rising experiential consumer spending and shifting preferences toward experiences rather than things, supporting future revenue and earnings growth.

Read the complete narrative.

Curious how ambitious projects and a renewed focus on experience-based assets might change the future for EPR? The calculation behind this discount involves targeted revenue expansion and a profitability lift that could surprise many. Want to see the narrative’s hidden assumptions that fuel this bullish price tag? Unlock what shapes the company’s forward value and discover the math behind the optimism.

Result: Fair Value of $58.35 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, EPR's reliance on theaters and operator credit risks could pressure growth if entertainment trends shift or if tenant stability weakens unexpectedly.

Find out about the key risks to this EPR Properties narrative.

Build Your Own EPR Properties Narrative

If you see the story playing out differently or want to dig into the numbers yourself, crafting your own viewpoint takes just a few minutes, so why not Do it your way?

A great starting point for your EPR Properties research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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