Like most real estate companies, EPR Properties (NYSE: EPR) is feeling the pressure of rising interest rates. They've increased its borrowing costs while weighing on its stock price. That has pushed up its cost of capital, making it more challenging to finance new investments to grow its experiential real estate portfolio.

The good news is that the REIT doesn't need outside funding to continue growing at a decent rate. It could produce an attractive total return over the next two years even if market conditions don't improve.

REITs typically rely on issuing new debt and equity in the capital markets to fund their expansion. However, with EPR Properties' share price currently down more than 50% from its all-time high, issuing stock to fund new investments isn't attractive. Meanwhile, the surge in interest rates has made borrowing money more expensive.

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Source Fool.com