The Biggest Number From EPR Properties' Latest Quarter: $42.4 Million
EPR Properties (NYSE: EPR) has done a good job of navigating a very difficult period. But this real estate investment trust (REIT) still has some lingering issues to deal with. The biggest by far is its exposure to the struggling movie theater sector.
In the second quarter, EPR Properties was forced to take back 16 theater properties from a large tenant and instantly wrote down the value of those assets by $42.4 million. Such write-downs could become the norm for this property segment.
The fact that EPR Properties focuses on experiential assets isn't actually a bad thing. It is an interesting approach, and it's one that, from a big-picture perspective, appears to align with consumer trends. In some ways, it is no different than the tactic being used by casino REITs.
Source Fool.com