EPR Properties (EPR): Marketing Mix Analysis [10-2024 Updated]

As we dive into the marketing mix of EPR Properties (EPR) for 2024, we explore how this innovative real estate investment trust focuses on experiential and educational properties. With a diverse portfolio that includes theatres, attractions, and fitness centers, EPR strategically positions itself in high-demand markets across the United States and Canada. Discover how their approach to product, place, promotion, and price not only enhances shareholder value but also ensures long-term tenant relationships and a stable income stream.

EPR Properties (EPR) - Marketing Mix: Product

Focus on experiential and education properties

EPR Properties primarily focuses on two segments: Experiential and Education. As of September 30, 2024, EPR's total investments amounted to approximately $6.9 billion, with 93% in Experiential properties and 7% in Education properties .

Portfolio includes theatres, attractions, and fitness centers

The Experiential portfolio consists of:

• 159 theatre properties
• 58 eat & play properties
• 24 attraction properties
• 11 ski properties
• 7 experiential lodging properties
• 22 fitness & wellness properties
• 1 gaming property
• 1 cultural property

This portfolio totals approximately 19.5 million square feet, with a leasing rate of 99% excluding properties intended for sale .

Long-term leases with tenants covering operating expenses

EPR Properties typically engages in long-term leases with its tenants, ensuring that operating expenses are covered. For the nine months ended September 30, 2024, rental revenue generated from the Experiential segment amounted to $407.6 million .

Investments in new developments and acquisitions

During the nine months ended September 30, 2024, EPR completed property sales totaling $65.1 million and recognized a net gain of $16 million . The company is actively involved in new developments, with $76.9 million in property under development as of the same date .

Properties located across 44 states and Canada

EPR Properties operates a diversified portfolio across 44 states in the U.S. and in Canada. This geographic distribution allows EPR to mitigate risks associated with local market fluctuations .

Diverse asset types, including experiential lodging and gaming

The asset types in EPR’s portfolio include:

• Experiential lodging - 7 properties
• Gaming - 1 property

As of September 30, 2024, the total assets of EPR Properties were approximately $5.7 billion .

EPR Properties (EPR) - Marketing Mix: Place

Properties strategically located in high-traffic areas

EPR Properties focuses on acquiring and developing properties in strategic locations that are easily accessible to consumers. As of September 30, 2024, EPR's real estate portfolio included properties located in 44 states across the United States, as well as in Ontario and Quebec, Canada.

Major markets across the United States and Canada

The company's portfolio is concentrated in major markets that show strong demand for experiential offerings. This includes urban centers and suburban areas with high foot traffic, which are crucial for the success of their experiential properties. As of September 30, 2024, EPR Properties had total assets of approximately $5.7 billion.

Investments in both urban and suburban settings

EPR Properties has diversified its investments across both urban and suburban settings. The Experiential segment, which accounts for 93% of total investments, includes properties like theatres, attractions, and fitness facilities. The owned Experiential real estate portfolio consists of approximately 19.5 million square feet, with an occupancy rate of 99%.

Focus on regions with strong demand for experiential offerings

EPR Properties places a strong emphasis on regions that exhibit robust demand for experiential offerings. Their portfolio includes 159 theatre properties, 58 eat & play properties, and various other attractions, all strategically located to cater to consumer preferences.

Long-term relationships with tenants in various sectors

The company maintains long-term relationships with tenants across diverse sectors, ensuring stable occupancy rates and consistent rental income. The rental revenue for the nine months ended September 30, 2024, was $436.1 million. This focus on tenant relationships has resulted in a portfolio that is 99% leased, demonstrating effective management of their properties.

EPR Properties (EPR) - Marketing Mix: Promotion

Shareholder value emphasis through FFOAA growth

EPR Properties reported a Funds From Operations As Adjusted (FFOAA) of $100.4 million for the three months ended September 30, 2024, down from $113.2 million in the same period in 2023, reflecting a decline of 11.6%. However, for the nine months ended September 30, 2024, FFOAA was $279.6 million, compared to $306.9 million in 2023, indicating a decrease of 8.9%.

Regular updates and reports on financial performance

The company consistently releases financial performance updates, with total revenues reported at $180.5 million for Q3 2024, a decrease of 4.7% from $189.4 million in Q3 2023. Year-to-date total revenue for 2024 stands at $520.8 million, down from $533.7 million in 2023.

Engagement with investors through earnings calls and presentations

EPR Properties engages with investors through regular earnings calls, providing insights into operational performance and strategic directions. The latest call highlighted net income available to common shareholders for Q3 2024 at $40.6 million, compared to $50.2 million in Q3 2023.

Marketing efforts highlight unique property offerings

The company's portfolio includes approximately 159 theatre properties, 58 eat & play properties, and 24 attraction properties, emphasizing its focus on experiential real estate. As of September 30, 2024, the Experiential portfolio was 99% leased, showcasing the strong demand for its unique property offerings.

Strategic partnerships to enhance brand visibility

EPR Properties actively seeks strategic partnerships to enhance brand visibility, particularly in the experiential sector. The company has engaged in various joint ventures and collaborations aimed at expanding its market presence and operational capacity.

EPR Properties (EPR) - Marketing Mix: Price

Competitive rental pricing aligned with market trends

As of September 30, 2024, EPR Properties reported total rental revenue of $436.1 million for the nine months ended, down from $467.4 million in the same period of 2023. The minimum rent decreased by $39.9 million year-over-year, primarily due to a comprehensive restructuring agreement with Regal and decreases in deferred rental repayments. The rental rates experienced a decrease of approximately 0.5% during lease renewals on approximately 295,000 square feet.

Focus on maintaining a positive spread between capital costs and rental income

EPR Properties maintains a focus on ensuring that its rental income exceeds capital costs. For the three months ended September 30, 2024, the total revenue was $180.5 million, down 5% from $189.4 million in the same quarter of 2023. The net income available to common shareholders was $40.6 million for the three months ended September 30, 2024. This indicates a strategic effort to uphold a healthy profit margin amidst fluctuating rental revenues.

Dividends paid regularly to preferred and common shareholders

During the three months ended September 30, 2024, EPR Properties declared cash dividends totaling $0.855 per common share. Additionally, preferred dividends included $0.359375 per share for Series C and G preferred shares, and $0.5625 per share for Series E preferred shares. This consistent dividend policy reflects the company's commitment to returning value to its shareholders.

Pricing strategies adjusted based on property performance

EPR Properties adjusts its pricing strategies based on the performance of its properties. The company recognized an increase in percentage rents, which amounted to $9.8 million for the nine months ended September 30, 2024, compared to $6.0 million in the same period of 2023. This adjustment in strategy demonstrates responsiveness to tenant performance and market conditions, ensuring that rental rates align with revenue potential.

Incentives for long-term tenants to ensure stability in income streams

EPR Properties offers incentives to long-term tenants to foster stability in income streams. The company has implemented strategies to retain tenants through favorable lease terms and incentives, which is crucial for maintaining occupancy rates. As of September 30, 2024, the overall leased percentage of the owned portfolio was 99%, with the Experiential portfolio also maintaining a 99% lease rate. This indicates effective tenant management and a focus on long-term relationships to ensure steady cash flows.

In summary, EPR Properties (EPR) effectively leverages its marketing mix to drive growth and shareholder value in 2024. By focusing on experiential and educational properties, strategically positioning assets in high-demand locations, promoting unique offerings, and implementing competitive pricing strategies, EPR is well-positioned to meet the evolving needs of tenants and investors alike. This comprehensive approach not only enhances brand visibility but also ensures a stable income stream through long-term tenant relationships, making EPR a compelling choice for investors in the real estate sector.

Article updated on 8 Nov 2024

Resources:

1. EPR Properties (EPR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of EPR Properties (EPR)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View EPR Properties (EPR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.