Why EPR Properties Stock Jumped More Than 10% Today

Shares of real estate investment trust (REIT) EPR Properties (NYSE: EPR) rose as much as 14% by 1pm before cooling off. By the end of the day the stock was trading with a roughly 10% gain. There was no material company specific news from the REIT, which owns entertainment oriented properties like movie theaters (45% of 2019 rents), food/play attractions (23%), and ski resorts (8%), among others. However, there was a change in the outlook with regard to COVID-19 that could have a material impact on EPR's ability to collect rent.

In an effort to limit the spread of the coronavirus, much of the United States has been, effectively, shut down. The social distancing guidelines laid out often included a requirement that nonessential businesses be closed until further notice. Most of the properties EPR owns fall into the nonessential category. Moreover, many, like movie theaters, involve people congregating in groups, which could increase the likelihood of catching COVID-19.

Image source: Getty Images

Source Fool.com