EPR Properties (EPR) Income Statement

The 18.2% revenue growth in 2026Q2 marks a significant acceleration from the 4.5% growth in 2025Q2, indicating that recent acquisitions or development projects are contributing meaningfully. NOI also jumped to $196.0M, nearly matching revenue, which implies high-margin income from new assets. This trajectory suggests management's capital deployment is yielding immediate returns, though investors should monitor whether this pace is sustainable.

The dramatic fluctuation in NOI margin—from 41.9% in 2026Q1 to 100.0% in 2026Q2—is unusual and warrants investigation. The 100% margin suggests minimal operating expenses, possibly due to a large tenant reimbursement or a sale-leaseback structure. Conversely, the 41.9% margin in 2026Q1 may reflect seasonal costs or property-level expenses. This volatility complicates trend analysis and may indicate non-recurring items that investors should adjust for.

While revenue grew 18.2%, FFO per share actually declined 1.6% year-over-year, implying that the incremental revenue is not flowing to FFO at the same rate. This could be due to higher interest expenses, increased operating costs, or share dilution from equity raises. The FFO growth of 36.1% in 2025Q2 was not sustained, and the recent quarter's decline suggests that the quality of earnings may be deteriorating. Investors should examine the components of FFO to identify the drag.

The gap between net income and FFO—$48.6M in 2026Q2—represents depreciation and amortization, which is a non-cash charge that reduces GAAP earnings but not cash flow. For REITs, this distortion is expected, but the magnitude suggests a large depreciable asset base. Since EPR's properties are experiential (theaters, ski resorts, etc.), economic depreciation may differ from GAAP, and investors should consider maintenance capex to assess true earnings power.

Without same-store data, it's challenging to isolate organic growth from acquisitions. The revenue growth in 2026Q2 could be entirely from new investments, masking flat or declining same-store performance. Given the volatility in NOI margins, investors should seek supplemental disclosures to assess underlying portfolio health. The lack of same-store metrics in the provided data limits the ability to evaluate organic growth.