This Monthly Payer Is Restarting Dividends And Paying A 5.5% Yield

Translation: EPR is now collecting more than 80% of regular rent, and payments that were missed due to the pandemic are starting to come in as well.

EPR’s initial dividend will be $0.25 per share, with the first payment on August 15. EPR pays monthly dividends, so the dividend rate gives a current yield of 5.5%.

Despite the short-term havoc from the pandemic shutdown, EPR business provides tremendous advantages. As far as I know, the company is unique for the types of properties it owns. That makes EPR a top choice to monetize properties in a market with $100 billion worth of a real estate. EPR to date has invested just over $6 billion.

Lease features allow EPR to exhibit stability and revenue growth. These features include:

  • Long-term leases with a current weighted average term of 14.9 years
  • Built-in 1.5% to 2% annual rent escalators
  • Strong tenant credit with cross defaults, master leases, and corporate guarantees

As pandemic restrictions EASE, the properties owned by EPR offer drive-to locations and lower price points compared to pre-pandemic vacation or entertainment choices.

Before the pandemic shutdown, the EPR dividend was $0.38 per share. Over time, I expect the company will work the dividend back up to that level and start a new history of dividend growth.

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