UPDATE: Stifel Resumes Coverage on EPR Properties on Mixed Factors

In a report published Friday, Stifel analyst Simon Yarmak resumed coverage on EPR Properties EPR with a Hold rating. In the report, Stifel noted, “EPR's high occupancy and long-term lease structure offer cash flow and dividend stability but also means that organic growth is very limited and acquisitions are the primary earnings driver. The company's theater business has very high tenant concentration (the top 10 tenants make up 69% of total rents) but has had a virtually perfect tenant credit track record over the past 16 years. EPR's other business lines have a far more checkered credit history. A large portion of the total return for EPR shareholders is its dividend. The current dividend is $3.16 with a current yield is 6.5%, 265 bps higher than RMS dividend and 60 bps above the triple-net average. EPR's payout of 81.0% is over 590 bps below the sector average of 87.3%.” EPR Properties closed on Thursday at $48.44.