With the Curtain of Uncertainty Lifted, This High-Yield Dividend Stock Has Blockbuster Upside Potential
EPR Properties (NYSE: EPR) stock sold off last year when news broke that the parent company of one of its largest tenants (theater operator Regal Cinemas) filed for bankruptcy. The news caused uncertainty on how those proceedings might impact the real estate investment trust's (REIT) rental income and ability to maintain its dividend, which currently yields 7.2%.
The specialty REIT recently agreed to a new deal with that tenant, lifting the curtain of uncertainty that had shrouded its future. Here's what the agreement means for the company and its high-yielding monthly dividend.
When Regal's parent filed for bankruptcy last year, it had leased 57 theaters from EPR Properties. It paid a total of $86.3 million per year to the REIT in rent and other charges, representing 13% of EPR's revenue. EPR wanted to preserve as much revenue as possible through its negotiations with Regal.
Source Fool.com