EPR Properties (EPR.N): Beat and Raise are Positives Partially Offset by Macro Cautiousness

EPR turned in 3Q26 FFOAA of $1.49, a 4c beat to Citi and 2c ahead of consensus; full year outlook increased at the low end to a new range of $5.49-$5.57 (from $5.41-$5.57), which compares to consensus at $5.57 (Citi $5.52). Upside to our forecast primarily reflected higher rental revenue as well as higher percentage rents, with full-year increases likely reflecting better box office returns. Acquisitions outlook increased for the third consecutive quarter, now seen in a range of $675-$725M (up $50M), underscoring better cost of capital and expanded investment opportunities. Portfolio coverage improved to 2.1x from 2.0x, and we'd look for incremental discussion around tenant health. EPR continued to issue on its ATM, raising an additional $66.6M at an approximate 4% premium to consensus NAV. Raised outlook and uptick in acquisition volume are positives, although rising concerns around consumer discretionary spend could keep shares range-bound near term. Dispositions guidance narrowed to