EPR Properties (EPR): Business Model Canvas

Key Partnerships

EPR Properties relies heavily on key partnerships to achieve its business goals and add value to its real estate investments. These partnerships are essential in leveraging the expertise, resources, and networks of various industry players. The following are some of the key partnerships that EPR Properties collaborates with:

• Movie theater chains: EPR Properties partners with leading movie theater chains to lease out its entertainment properties. These partnerships allow EPR Properties to attract high-quality tenants with strong brand recognition in the entertainment industry.
• Amusement park operators: EPR Properties works closely with amusement park operators to lease out its recreational properties. By partnering with reputable operators, EPR Properties ensures that its properties offer world-class entertainment experiences and attract a large customer base.
• Recreational real estate developers: EPR Properties collaborates with recreational real estate developers to identify new investment opportunities and develop innovative recreational properties. These partnerships enable EPR Properties to diversify its real estate portfolio and capture emerging trends in the entertainment industry.
• Property management companies: EPR Properties partners with property management companies to efficiently manage its real estate assets and maximize their value. These partnerships help EPR Properties maintain high occupancy rates, streamline operations, and create positive tenant experiences.
• Investment and financial service providers: EPR Properties works with investment and financial service providers to secure funding for its real estate projects and optimize its capital structure. These partnerships help EPR Properties access capital markets, manage financial risks, and achieve its strategic growth objectives.

Key Activities

Property acquisition and management: EPR Properties (EPR) focuses on acquiring and managing properties in the entertainment, recreation, and education sectors. This involves identifying potential properties that align with the company's investment criteria, conducting due diligence, negotiating agreements, and overseeing the day-to-day operations of the properties to ensure they are well-maintained and profitable. Tenant leasing and retention: EPR actively works to attract new tenants to its properties by marketing available spaces, negotiating lease agreements, and providing ongoing support to tenants to help them succeed. Additionally, the company places a strong emphasis on tenant retention by fostering positive relationships with current tenants, addressing any issues that arise, and offering lease renewal incentives. Investment in high-yield properties: EPR's business model centers around investing in properties that offer high yields and long-term growth potential. The company carefully evaluates potential investments using a variety of financial metrics and market data to ensure they align with its investment strategy and meet its return objectives. Financial management and reporting: EPR places a strong emphasis on financial management to ensure the company's profitability and financial health. This includes budgeting, forecasting, monitoring financial performance, and preparing accurate financial reports for stakeholders. By maintaining a strong financial foundation, EPR is able to continue growing its portfolio of properties and generating consistent returns for investors. Market analysis for entertainment and recreational sectors: EPR regularly conducts market analysis to identify investment opportunities in the entertainment and recreational sectors. This involves studying trends, demographics, consumer preferences, and competition to identify potential growth areas and inform strategic decision-making. By staying abreast of market trends, EPR is able to make informed investment decisions that align with its long-term business objectives. Overall, EPR's business model is centered around strategic property acquisition, tenant leasing and retention, investment in high-yield properties, financial management, and market analysis to drive long-term growth and profitability in the entertainment, recreation, and education sectors.

Key Resources

Portfolio of entertainment and recreational properties: One of EPR Properties' key resources is its diverse portfolio of entertainment and recreational properties. These properties include theaters, golf courses, ski resorts, water parks, and other leisure destinations. This portfolio provides a strong foundation for the company's business model, as it offers a wide range of entertainment options for consumers.

Experienced real estate management team: EPR Properties has an experienced real estate management team that is well-equipped to oversee the company's extensive portfolio. This team has a deep understanding of the entertainment and leisure industries, allowing them to effectively manage the properties and cultivate relationships with tenants.

Strong financial backing and credit facilities: EPR Properties benefits from strong financial backing and access to credit facilities that allow the company to invest in new properties and expand its portfolio. This financial stability is a key resource that enables the company to take advantage of growth opportunities in the entertainment and leisure sectors.

Long-term leases with tenants: EPR Properties has secured long-term leases with tenants for many of its properties, providing a stable source of income for the company. These leases help to mitigate risk and ensure a consistent cash flow, which is essential for sustaining the company's operations and pursuing future investments.

Relationships with key entertainment and leisure businesses: EPR Properties has cultivated strong relationships with key entertainment and leisure businesses, such as movie theater chains, theme park operators, and entertainment venues. These relationships enable the company to attract high-quality tenants and collaborate on new projects, enhancing the value of its portfolio and driving continued growth.

Value Propositions

EPR Properties offers a compelling value proposition to investors seeking exposure to the experiential properties sector. With a specialized focus on entertainment and recreational properties, EPR provides a unique opportunity to invest in assets that cater to consumers' growing demand for memorable experiences.

• Specialized focus on experiential properties: EPR's dedicated focus on experiential properties sets it apart from traditional real estate investment trusts. By concentrating on assets that offer entertainment and recreational opportunities, EPR is able to capitalize on changing consumer preferences and trends in the leisure industry.
• Steady income through long-term triple-net leases: EPR's business model revolves around long-term triple-net leases, which provide a stable and predictable income stream for investors. By leasing properties to tenants who are responsible for taxes, insurance, and maintenance costs, EPR is able to generate consistent cash flow and minimize operational risks.
• Diverse portfolio reducing investment risks: EPR's portfolio includes a diverse mix of properties, ranging from movie theaters and ski resorts to water parks and golf courses. This diversification helps mitigate risks by reducing exposure to any single market or asset class. Additionally, EPR's properties are located in prime locations across the United States, further enhancing the resilience of its portfolio.
• Expertise in entertainment and recreational markets: EPR has a deep understanding of the entertainment and recreational markets, allowing it to identify attractive investment opportunities and create value for its stakeholders. With a team of experienced professionals who specialize in these sectors, EPR is well-positioned to navigate the complexities of the experiential properties market and drive long-term growth.

Customer Relationships

EPR Properties places a significant emphasis on maintaining long-term tenant relationships. We understand that the success of our business is closely tied to the success of our tenants, and therefore, we strive to create a positive and collaborative environment that fosters growth and prosperity for all parties involved.

We engage in direct collaborations with our tenant businesses to ensure that their needs and concerns are heard and addressed in a timely manner. This open line of communication allows us to build trust and strengthen our partnerships, ultimately leading to a more successful and mutually beneficial relationship.

Additionally, we offer dedicated support for property development needs, working closely with tenants to facilitate any necessary renovations, expansions, or improvements to their spaces. Our team of experts is readily available to assist with any challenges that may arise, helping to streamline the development process and ensure that projects are completed efficiently and effectively.

Finally, EPR Properties prides itself on transparency in financial and operational activities. We believe in maintaining open and honest communication with our tenants, providing them with regular updates on property performance, market trends, and any other relevant information that may impact their businesses. By fostering a culture of transparency, we demonstrate our commitment to building strong and lasting relationships with our valued tenants.

Channels

EPR Properties utilizes various channels to reach its target audience and attract potential tenants and investors. These channels include:

• Direct leasing and property management teams: EPR Properties has dedicated teams that handle direct leasing and property management. These teams work directly with tenants to address their needs and ensure the properties are well maintained.
• Company website and digital platforms: EPR Properties maintains a professional website and utilizes digital platforms to showcase its properties, provide leasing information, and communicate with its audience. This online presence helps to reach a wider audience and generate leads.
• Industry events and trade shows: EPR Properties participates in industry events and trade shows to network with industry professionals, showcase its properties, and stay informed about market trends. These events provide valuable exposure and networking opportunities for the company.
• Real estate and financial advisor networks: EPR Properties collaborates with real estate and financial advisors to promote its properties, attract potential clients, and stay informed about investment opportunities. These networks help to expand the company's reach and enhance its credibility in the industry.

Customer Segments

EPR Properties (EPR) serves a variety of customer segments within the entertainment, recreation, and leisure industries. These segments include: - Movie theater operators: EPR works with movie theater operators across the country, providing them with high-quality real estate properties to showcase the latest blockbuster films. These operators rely on EPR for attractive and well-located theaters that attract movie-goers. - Casino operators: EPR partners with casino operators to provide them with prime real estate for their gaming and entertainment facilities. Casinos benefit from EPR's strategic locations and expertly designed properties that enhance the overall customer experience. - Amusement and theme park companies: EPR works closely with amusement and theme park companies to provide them with expansive and immersive properties for their thrilling attractions and entertainment offerings. These companies rely on EPR to deliver unique and engaging experiences for their visitors. - Golf complexes and other recreational facilities: EPR caters to golf complexes and other recreational facilities by offering them prime locations for their outdoor activities. These facilities benefit from EPR's scenic and well-maintained properties that attract golfers and recreational enthusiasts. - Cultural and live-performance venues: EPR partners with cultural and live-performance venues to provide them with state-of-the-art facilities for their performances and events. These venues rely on EPR's versatile properties that can accommodate a wide range of artistic and cultural offerings. By serving these diverse customer segments, EPR Properties (EPR) has established itself as a leading provider of real estate solutions within the entertainment and leisure industries.

Cost Structure

EPR Properties incurs various costs in order to acquire, manage, and maintain its properties efficiently. The cost structure of the company is divided into several key components:

Property acquisition and maintenance costs:

• Includes the upfront costs associated with acquiring new properties, such as purchase price, due diligence expenses, and closing costs.
• Maintenance costs cover ongoing expenses related to property upkeep, repairs, and renovations to ensure that the properties remain attractive and well-maintained.

Operational expenditures for property management:

• Includes costs associated with property management, such as salaries for property managers, maintenance staff, and other personnel.
• Operational expenses also cover utilities, insurance, property taxes, and other day-to-day costs of running the properties.

Investment in property improvements:

• EPR Properties invests in property improvements to enhance the value of its portfolio and attract tenants. This may include renovations, upgrades, and other enhancements to the properties.
• Investments in property improvements are essential to maintaining a competitive edge in the market and maximizing the return on investment.

Administrative and legal expenses:

• Includes costs related to administrative functions, such as salaries for administrative staff, office rent, equipment, and other overhead expenses.
• Legal expenses cover fees for legal services, compliance costs, and other legal matters related to property ownership and management.

Marketing and tenant acquisition costs:

• Includes expenses related to marketing efforts to attract tenants, such as advertising, promotional materials, and other marketing initiatives.
• Tenant acquisition costs cover expenses associated with leasing activities, such as leasing commissions, tenant improvements, and other costs related to securing new tenants.

Revenue Streams

EPR Properties generates revenue through various streams, including:

• Rental income from leases: EPR Properties leases its properties to tenants, generating steady rental income. These long-term leases provide a stable source of revenue for the company.
• Revenue from percentage rents tied to tenant sales: In addition to base rent, EPR Properties may also receive a percentage of a tenant's sales as additional revenue. This incentivizes tenants to perform well and can lead to increased revenue for the company.
• Gains from property value appreciation: As property values increase over time, EPR Properties may realize gains when selling or refinancing properties. This can result in significant revenue for the company.
• Service fees for management and property development: EPR Properties may provide management services to its tenants, as well as develop new properties. These services can result in additional revenue streams for the company.