Hello and welcome to the EPR Properties Q3 2026 earnings call. We ask that you please hold all questions until the completion of the four remarks, at which time you'll be given instructions of the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. I will now have the call over to Brian Moriarty, Senior Vice President of Corporate Communications.

Thank you. Thanks for joining us today for our third quarter 2026 earnings call and webcast.

Participants on today's call are Greg Silvers, Chairman and CEO, Ben Fox, Executive Vice President and CIO, and Mark Peterson, Executive Vice President and CFO. We'll start the call by informing you that this call may include forward-looking statements identified In the Private Securities Litigation Act of 1995, by such words as will be, intend, continue, believe, may, expect, hope, anticipate, or other such comparable terms, the company's actual financial condition and the result of operations may vary materially from those contemplated by such forward-looking statements. Discussion of those factors that could cause results to differ materially from these four looking statements are contained in the company's SEC filings, including the company's reports on Form 10-K and 10-Q. Additionally, this call will contain certain references to non-GAAP measures which we believe are useful in evaluating the company's performance. A reconciliation of these measures to the most directly comparable gap measures are included in today's earnings release and supplemental information furnished to the SEC under Form 8K.

If you wish to follow along, today's earnings release, supplemental, and earnings call presentation are all available on the Investor Center page of the company's website, www.eprkc.com.

Now I'll turn the call over to Greg Silvers. Thank you, Brian.

Good morning, everyone, and welcome to our third quarter of 2026 Earnings Call and Webcast.

Our focus this year has been on accelerating growth, and our third quarter results demonstrate continued momentum across the business.

Revenue increased 12%, while FFO is adjusted per share and increased 8.8% compared to the same period in 2025. These results were supported by a strong in-place portfolio and a robust pace of investment activity. Our investment spending remains strong throughout the quarter as we continue to broaden our experiential portfolio and establish important new relationships. We entered the live venue category through a build-as-a-suit development in Portland, Oregon with industry leader Live Nation. We have long discussed the strong, sustained demand fundamentals of live performance, and our team worked diligently to identify the right initial opportunity. We also acquired a lifetime fitness and wellness property in Irvine, California, further expanding both the depth and quality of our fitness and wellness portfolio. Our portfolio coverage incrementally increased year-in-a-quarter to 2.1 times. We're also pleased to see box office running well ahead of last year. The third quarter capped off a record summer, and year-to-date box office was up approximately 20% through September, driven by a broad mix of genres and compelling titles that continue to bring audiences back to theaters. Our results underscore that the consumer continues to demonstrate that they value and prioritize experiential offerings. We continue to draw on multiple sources of capital to fund our growth. During the quarter, we recycled capital through the sale of a private school property, entered into forward sale agreements under our ATM program, and executed a new credit agreement that includes a $600 million turn-on. With our credit facilities and forward equity in place, we have the capacity to fund a strong pipeline of opportunities. Given our capacity and our activity today, we're pleased to raise our investment spending and earnings guidance, which represents an increase of 8% at the midpoint over 2025. As our portfolio expands and diversifies, we remain well positioned to capitalize on the continued growth of experiential real estate. With that, I'll turn the call over to Ben for a closer look at the business and our performance.

Thank you, Greg. As Greg just highlighted, this quarter marked several notable firsts for EPR, our first investment in a live performance venue with Live Nation, and our first acquisition of a fitness facility at least a lifetime. Both transactions highlight not only our continuing investment momentum, but also the accelerating diversification of our portfolio. During the quarter, we invested $172.4 million at an average initial cash yield of approximately 8.3%, bringing our year-to-date investments to $664.5 million. That volume includes a new experiential category, live venues, along with continued additions to our fitness and wellness, eat and play, and experiential lodging portfolios. Two of this quarter's investments stand out for their exceptional A-plus real estate, Lifetime in Irvine, California, and One Life Fitness at Tyson's Gallery in Virginia. Both occupy world-class locations that we believe support their long-term success. In addition to these investments, we expect to invest another $21 million this year in experiential development and redevelopment projects already underway. As we noted last quarter, our theater exposure continues to decline as our experiential investment volume accelerates.

Theaters now represent roughly one-third of our portfolio, and we expect that share to continue trending toward our long-term goal of approximately 20%.

Given our investment pace and the depth of our pipeline, we are pleased to once again increase our 2026. Two points on our pipeline in the current investment environment. First, the breadth of our pipeline is unparalleled in recent memory, and we look forward to sharing some of the exciting opportunities we're pursuing in the coming quarters. Second, on cost of capital and investment spreads, three factors are working in our favor. Our transactions generally have rate protection built in prior to closing, which provides a buffer during periods of market volatility. As we've said before, our biggest competition is debt, not on that lease. And in this market, debt capital has repriced even faster, so our clients are receptive to conversations on pricing.

And because our business is relationship-driven, with a proprietary pipeline, we enjoy higher average entry yields, which give us a natural cushion.

Turn into the portfolio. At the end of the third quarter, our portfolio totaled $7.6 billion of gross investment value across 350 properties, which were 99% leased or operated. By the year, 96% is in our core experiential categories, represented by 296 properties operated by 61 clients, which remain 99% leased or operated. The remaining 4% is our education portfolio, made up of 54 properties leased to 4 operators which were 100% leased at quarter end. Portfolio health remains sound, with unit level rent coverage increasing to 2.1 times. While data indicate pockets of strength among the lowest income consumers, people's enduring preference for experiences over things continues to support our portfolio. Our portfolio also benefits from diversification across multiple demographic dimensions, with experiences that appeal to many generations and income levels. Theaters are a great example. Not only do they span all of these demographics, but they also have historically proven resilient in economic downturns. And most importantly, as Greg has said many times, content drives performance. People want to see cool stuff. This year's box office, which is about 20% year-to-date and on track for its best year since 2019, demonstrates exactly that. We've talked about who goes to the movies before, but with the strength we continue to see across our theater portfolio, a few points are worth repeating. Gen Z accounts for 40% of all moviegoers, and in multiple polls, Gen Alpha has said it prefers the big screen. Format matters. People can't replicate IMAX and other premium large format screens at home, and the industry has created a real urgency around seeing certain films in these formats. Our portfolio over-indexes to exactly those experiences. 71% of our theaters have recliners, 84% offer enhanced food and beverage, and 69% have premium large-format screens. These features help our theaters generate roughly 8% of North American box office gross with only 3% of screens. Finally, the industry has coalesced around a 45-day theatrical window, which supports visitors and spare studios as a second marketing push after films leave theaters. Some films will run longer, including the upcoming Netflix release of Narnia, with a seven-week window. And it's not just the movies. Young people are lining up for concerts, comedy shows, and other live events.

They want to get out of the house, and they are hungry for shared experiences.

We're capitalizing on this momentum through partnership with industry leaders like Live Nation, whose venue will host concerts and comedy shows. Turning to other areas of our portfolio, our eat and play segment remains resilient, strengthened by the quality of our locations, despite broader industry moderation. Topgolf's positive momentum since the sale continues. Expense reductions and revenue initiatives are delivering results, and our top golf portfolio remains very healthy. Attractions performed well in the third quarter, with several parks outperforming. As we saw in Ski during the winter, geographic diversification in attractions Our fitness and wellness portfolio continued with a solid performance in the third quarter, with stabilizing trends at several recently renovated and expanded properties. Finally, our education portfolio continues to face industry-wide headwinds, including higher labor costs, grain funding challenges, and regulatory pressure. Despite this backdrop, this portfolio remains resilient. Moving on to dispositions. Reflecting our commitment to accrued capital recycling, in the third quarter we completed a sale of the British School of Chicago to a public net lease peer, transacting at a cap rate in the low 7% range. Following this sale, we are updating our 2026 disposition guidance to approximately $86 million, as we do not anticipate any additional dispositions prior to year end. In summary, our portfolio remains resilient, our diversification is accelerating, and we are very excited about the investment opportunities in front of us. With that, I'll turn it over to Mark for a review of our financial performance.

Thank you, Ben. Today I will discuss our strong financial performance for the third quarter, provide an update on our balance sheet, and close by discussing the increases in our earnings and investment spending guidance for the year. FFO as adjusted for the quarter was $1.49 per share versus $1.37 in the prior year, an increase of 8.8%. An AFFO for the quarter was $1.54 per share compared to $1.39 in the prior year, an increase of 10.8%.

Please note that this quarter we have revised our definition of AFFO to no longer deduct maintenance capital expenditures.

This change was made to be consistent with most other triple net REITs and is immaterial. All prior periods have been recast to reflect this change, and reconciliations from the previous definition to the new definition are included in the supplemental and press release. Before I walk through the key variances, I want to explain two items excluded from both FFO as adjusted and AFFO. First, during the quarter, we had disposition proceeds of $74 million, which included the sale of a private school property for net proceeds of $68.2 million, and a gain of $30.5 million was recognized. Second, as discussed last quarter, we entered into a new amended and restated $1.6 billion credit agreement, and in connection with this, we recognized $605,000 of costs associated with loan refinancing or payoff. Now, moving to a few key variances. Total revenue for the quarter was $204.1 million versus $182.3 million in the prior year, an increase of $21.8 million, or 12%.

This increase was primarily due to the impact of investment spending as well as rent and interest bumps.

Percentage rents and participating interest for the quarter were $9.8 million, up from $7 million in the prior year. primarily due to higher percentage rent recognized from our attraction and theater properties. Both other income and other expense relate primarily to our consolidated operating properties, including our four operating theaters and the car ride hotel and indoor water park. The increase in other income and other expense versus prior year is due primarily to better performance at our theater properties as a result of strong box office during the quarter. On the expense side, interest expense net increased by $7.1 million due to an increase in average borrowings and the weighted average interest rate on our outstanding debt, as well as a decrease in capitalized interest versus the prior year. FFO's adjusted for the nine months ended September 3rd was $4.16 per share compared to $3.81 in the prior year. An increase of 9.2%. And AFO for the same period was $4.26 per share, compared to $3.88 in the prior year, an increase of 9.8%. Turning to the next slide, I want to review some of the company's key credit ratios. As you can see, our coverage ratios continue to be very strong, with fixed charge coverage at 3.5 times, and both interest and debt service coverage ratios at 4.0 times. Our pro forma net debt to analyze adjusted EBITDA RE was 4.9 times at quarter end, which is below the low end of our targeted range of 5 to 5.6 times. Pro forma net debt is calculated by subtracting the estimated net proceeds from all forward sale agreements under our ATM program from net debt. In addition, our pro forma net debt to gross assets was 40% on a book basis at quarter end, and our common dividend continues to be very well covered with an AFO payout ratio of 60% for the third quarter. Now let's move on to debt and capital market activities and our balance sheet, which is in great shape to support our continued growth. At quarter end, we had consolidated debt of $3.3 billion, of which $2.8 billion is fixed rate debt with an average blended coupon of approximately 4.4%. During the quarter, upon maturity, we repaid in full $179.6 million of senior unsecured notes that were originally issued in a private placement transaction.

As discussed in our last call on July 17th, we entered into a new amended and restated $1.6 billion credit agreement that, among other things,

extended the maturity date and reduced the interest rate on our $1 million revolving credit facility and established a new $600 million delayed draw term loan facility that was fully drawn at quarter end. The term loan is due in 2032 with interest based on our current credit ratings at SOFR plus 115 basis points.

Additionally, during the quarter, we entered into two forward sale agreements under our ATM program for initial gross sales proceeds of $66.6 million, or an average sale price of $60.79 per share.

No forward sale agreements were settled during the quarter, and as of quarter end, we had total estimated net proceeds from unsettled forward sale agreements of $134.6 million, representing just under $2.3 million common shares. Our liquidity positions remain strong and we are well positioned to support our continued growth. In addition to the amount available under forward sale agreements that I just discussed, at quarter end we had $52.4 million of cash on hand and no balance on our $1 billion revolver. As far as upcoming debt maturities, we have $450 million in debt coming due in December and then nothing comes due until June of next year.

Turning to guidance.

We are increasing our 2026 FFOs adjusted per share guidance to a range of 549 to 557 from a range of 541 to 557, representing an increase versus the prior year of 8% at the midpoint.

We expect a slightly higher percentage increase in FFO per share.

We are also increasing our 2026 Guidance for Investment Spending from a range of $675 million to $725 million from a range of $600 million to $700 million. We are revising disposition proceeds to $86 million for the year from a range of $50 million to $100 million. We are increasing our percentage rent and participating interest income guidance to a range of $21.5 million to $24.5 million, from a range of $18.5 million to $22.5 million, primarily due to higher amounts expected related to our theater and attraction properties. Please note that the midpoint of this range implies that fourth quarter percentage rent and participating interest income will be approximately $6 million.

This is lower than the prior year's fourth quarter amount of nearly $8 million,

Due to the recognition of a part of one tenant's percentage rent in the third quarter of this year versus the fourth quarter in the prior year, we are revising our G&A expense guidance to a range of $57 million to $59 million from a range of $56 million to $59 million due primarily to an increase in expected non-cash share-based compensation expense. Finally, our guidance for other income and other expenses has been updated to a range of $44 million to $50 million and a range of $43 million to $49 million, respectively. The net increase in this guidance of $1 million reflects the additional contribution expected from our operating theaters given the strong box office performance, as well as additional gains anticipated related to our Canadian FX hedges, which is booked to other income. Guidance details can be found on page 23 of our supplemental. Now with that, I'll turn it back over to Greg for his closing remarks.

Thank you, Mark. As you've heard today, the experienced economy continues to demonstrate strength and resilience. And EPR is uniquely positioned to take advantage of this trend, as it is the only diversified REIT that focuses solely on the experiential economy. So far this year, we've delivered post-COVID highs in investments and sector-leading FFOs adjusted per share growth. During the quarter, we utilized multiple tools in our tool shed, including opportunistically raising equity through our ATM program, recycling capital through dispositions, and thoughtfully refinancing our debt with a new term loan execution. Our focus remains on prudently deploying capital to acquire high-quality properties that are valued by the consumer and deliver a creative earnings growth to our shareholders. With that, why don't I open it up for questions. Operator?

Thank you. At this time, if you would like to ask a question, please click on the raise hand button which can be found on the black bar at the bottom of your screen.

Once you've turned, you'll receive a message on your screen from the host allowing you to talk and name your name board. Please accept, unmute your audio and ask your question. If you are on a mobile device using the app, simply tap into the three dots or more button to find the raise hand feature. And lastly, if you're calling in today, star nine will activate the raise hand and use star six to mute and unmute. We'll wait just one moment for the future form. We'll take our first question from Andy Cologne with J.P. Morgan. Please unmute your line and ask your question.

Great, thanks. Good morning. My first question relates to My first question relates to what you described as an unparalleled pipeline of deals. So can you talk a bit more about just what's in that and how much it may be acquisition opportunities versus build suits, portfolios, areas that you would invest in, et cetera?

Sure, Tony. Good morning.

Good morning.

So by breadth, we really are talking about all those things that you've mentioned. It's that the diversity of opportunities we're seeing is really, really exciting.

So we've talked about fitness and wellness before.

And even within that category, we're releasing opportunities that stretch all the way from things that we've talked about from golf to to fitness facilities and everything in between. And then beyond that, we're seeing opportunities in a lot of our other verticals, eating play, attractions, live entertainment. All of them have activity. and the conversations have just been very engaging and encouraging.

I told you I would add, I think part of what, again, that's going on right now is we're seeing a really continued focus on people even in these categories continuing to focus on spending money on these experiential properties and the consumer continues to be highly supportive of this. and so our operators and our tenants are continuing to invest and grow their businesses. So that's creating opportunities even in the face of some of the challenges that are generally going in the economy.

And then on the point of development versus... We're seeing a split, and consistent with this year, there are a number of acquisitions that we can expect for the coming year. Development, there's always a high hurdle, and in the current rate environment, the hurdle is probably a little bit higher, but we are exploring those opportunities, and as discussed on the call, I have a pipeline of those already in place.

Okay, thanks for that. And then just my second one is as it relates to your more recent Game Park acquisitions this year, how did they do this summer, how are they forming, and also your appetite to do more in that space?

Again, Tonya, I will let Ben chime in. I think, again, as we anticipated, this was a transitory year, so we consistent with that. I think we think these are performing in line with kind of where we anticipated. We anticipated some degree of challenges. You change the operator and things. I think as we move into this coming year, you'll see a ramp up. Remember, we committed to additional capital going into those properties, and I think that will do. I think likewise, again, that it The overall attractions industry has been incredibly resilient over time and continues to demonstrate that. We've had certain events toward the end of the season this year that have brought attention to that. I think everyone in the industry, any sort of event that occurs that we've seen is tragic and all of our operators are very much in the focus of that.

Safety is critical. and many more.

Our next question comes from James Baldwin, Wells Fargo. You may now leave your line and ask your question.

Thank you, you've got Connor here, on with Jamie. Given your first investment in Live Nation for performance venues this quarter, can you talk through what makes performance venues attractive from both a credit and real estate perspective? And can you describe what your runway to grow exposure looks like?

I'll let you get more details, but I think, Connor, first of all, if you just look at the resilience of it, live performance has been incredible as far as its strength in the underlying experiential economy. I think the model for how musicians make their money is substantial. Thank you for watching. So I think they've announced a multi-billion dollar expansion program that they're looking forward to increase the breadth of their venues. That doesn't mean we're going to be able to do all of those. But I think we're excited about the underlying dynamics of demand compared with the ability to partner with a world-class operator. And I think that just opens up a whole other opportunity for growth for us.

Yeah, that's exactly what we're seeing. And then what's very exciting is you look at the growth that Live Nation, some of the other operators are having. There's a void still of mid-size venues. I think about 4,000 seats, right? So you have the larger amphitheater, and then there's a smaller local. But that mid-size still is an underserved market, and it's really a sweet spot in that It's the perfect size that attracts headline performances and you can command very attractive pricing and there's just a lot of unmet demand. So that gives us a lot of encouragement about the pipeline and the future opportunity of the sector. And just a note, when we say very attractive pricing, we think that's very attractive pricing for ourselves.

The cost of the tickets, I know everyone is complaining about the cost of the tickets, but very attractive pricing is relative to which side of the equation you're sitting on. So we think it's very attractive from our perspective.

You also mentioned credit. We have live nation credit, so that's important.

Thank you, really appreciate the insight. And then maybe give me the tick up in rank coverage in the portfolio to 2.1 times this quarter. Can you walk us through what you're seeing that's driving this increase and are there any specific sectors or types of tenants driving that?

I think overall, clearly there's no doubt that the overall rent coverage is being helped by the theater and the performance of that. But I think overall and experiential, I think there's some really good data points. And I'd reference you guys to McKinsey's report on the state of the consumer in 2026, where they wrote that the experience economy has become one of the structural forces

Thank you very much.

and whether you look at credit card data or spending data from the various banks, we're continuing to see experiential spending up and to the right. So we think we're in the right categories and we think we're the only group that offers that level of exposure. So we feel really well with how we're positioned.

Thank you. Really appreciate it.

Our next question comes from Robert Stevenson with Huntington. Please unmute your line and ask a question.

Good morning, guys.

Greg or Ben, the new Live Nation asset, press reports have that opening next summer. Is that still accurate? Can you talk about how big of an investment that is?

And if there's a period of free rent or that starts to get rent to you guys next summer?

That timeline is still accurate. And, you know, in line with our other practice, we're not going to disclose the specific transaction economics. But that timeline for opening is consistent.

Okay.

And then, Mark, you have roughly $50 million in cash and $135 million available under the ATM. How much additional debt can you issue from here and still stay in your targeted leverage range?

Just curious as to how much, so to speak, you have to deploy here without having to go back to the market and issue more equity. Yeah, let's just kind of roll forward where we're at. As you mentioned, $50 million in cash, so kind of $35 million in excess. Let's just kind of roll forward for the rest of the year. That should cover our investment spending, which remaining is about $35 million. So we kind of finished the year. That's covered. We have zero on our line today. We do have $450 million of debt due in December, and we can take that down with our lines since we have zero on it.

Of course, we have those proceeds from the forwarders.

But we probably don't need the forward equity until next year's. We kind of have it in the tank for next year's spending. And as that line gets about that mid-fours, you start to look at potentially a bond transaction that would pay down that line. Typically, that gets the $450,000, $500,000 to look at the market to pay down that line. In terms of leverage... We finished the quarter here, third quarter, 4.9 times pro forma. Just even with the refinancing of the debt in fourth quarter, should that happen, we finished the year around five times. That's without taking down any forward equity. So we're in great shape, kind of approaching next year, going into next year when our leverage range is 5 to 5.6 and being at the lower end of the range. I think we have plenty of capacity to support the growth.

Okay, thanks guys, appreciate your time.

Our next question comes from Apurana with Keaton Capital Markets. Please unmute your line and ask your question.

Great, good morning, thank you for your question. You know, Ben, you touched on this briefly, but given the increase in cost of capital, how much have investments yields moved on a like-for-like basis? You mentioned sellers are up into pricing adjustments, but are you getting enough to preserve your targeted spreads? It's a good question, Paul.

And, you know... We are very comfortable with maintaining our spreads. Like we talked about, our average entry yield is already very attractive. And conversations are probably in the neighborhood in terms of movement these days of 25 basis points, give or take. And we're also seeing movement on escalators and that we're able to drive more attractive lease increases in a lot of our conversations.

I think that these conversations are dynamic. I mean, a lot of the deals we closed this year were based on the cost of capital that we had done previous to the year.

And as we move forward, we are, and I think over the years, we demonstrated our commitment to accrued growth. And therefore, if we were able to either expand or contract that to hit that,

And so I think that the good thing is what I talked about earlier. We're in markets that are demonstrating growth and in fundamental consumer support. So our operators are looking to deploy capital and there is a cost of capital to do that if they want to grow. So I think as Ben said, they're more receptive to at least continuing their growth. and for us to be there, there's a cost for us doing that and we've had these discussions and we'll have more of them.

And ultimately, it's great to highlight that we're going to remain disciplined in our deployment and we're not going to sacrifice spread for volume.

Okay, that was helpful. And then maybe, you know, last quarter, you mentioned some of the percentage rent strength was, you know, timing related rather than incremental four-year upside. You know, with the percentage rent guidance raised this quarter, you know, what changed relative to those assumptions? And then was that really the odyssey in Spider-Man or any kind of other experiential categories?

Yeah, you're right about a little bit of timing between Q3 and Q4, but overall, the overall increase of $2.5 million is really a combination of theater performance, particularly the regal percentage rents, and a couple other smaller amounts. And we also saw strength overall in the attraction space, particularly with our Canadian assets. So those are really the two primary areas that drove the increase for the year of $2.5 million at the midpoint. Okay, great, thank you. Sure.

Our next question comes from the City Group. Please unmute your line and ask your question.

Hi, can you hear me? Yes. Okay, great, sorry. Yeah, I wanted to ask just a little bit about maybe just the lifetime fitness acquisition. I think you said it's at Tyson's Corner. You know, so we clearly see a lot of other REITs that have, you know, frankly, a better cost of capital relative to you buying those assets. And I'm just wondering, could you talk a little bit about The pricing on that specific opportunity and maybe how it came to you and maybe the competitive landscape when it comes to those kinds of facilities?

I mean, first of all, let's be clear that the Tyson's Gallery asset was not, that Lighttime was in Irvine, California. But that's quite all right. I just want to make sure. But second of all, I think as we talked about, all of ours are relationship driven. I think, you know, for us, without displaying any sort of particular, you know, we said our cap rates were average in the eights and these were consistent. With that, so I think our ability to source those deals is really a long time, kind of us working with people and band relationships and other people's relationships here. So I think we are, like I said, uniquely positioned to kind of take advantage of some of that. We continue to be, I think, fluid and be able to kind of respond very quickly in timely manners.

It positions us to take advantage of some of these deals.

Like Ben talked about, we probably have... Again, you talk about that cap rate with probably... Again, I don't know if they report, but maybe the best... Lifetime in performance west of the Mississippi. So I think we feel pretty good about our ability to continue to consistently do things that, as you say, others should be able to beat us, but they don't.

It wasn't, it's not a criticism, it's just, you know, observation. I wanted to ask you also on the Bill to Sue opportunities, you mentioned that it's sort of, you know, higher bar, but I guess just in general, you know, what's the spread to your typical going and cap rates that you look for on a development opportunities?

Yeah, the higher bar is really that

Development projects always, you know, multiple factors come into play. It's not just for us, but it's for the operators as well, right?

So when they're looking at projects, the cost of capital and their cost to build, so construction costs, everything comes into play. And so that's really what we're talking about, the higher bar. In terms of spreads, it's very consistent with where we always targeted and kind of 50 to 75 basis coin premium to in place.

The other thing I would point out is, again, they're all, and I don't know what Ben said, like I said, there are challenges, like I said, even with talking about the live performance, again, the credit quality of the tenant, where are the escalators at? It's a combination of what Ben and his team put together.

Thank you very much.

I know you guys talked about declining theater exposure, and I'm curious if there's a thought around maybe capitalizing on some of the momentum and pursuing asset sales on some of your portfolio, or is that the decline just going to be through your deployment into other sectors?

Yeah, I think, Mitch, it's a good question. I think it would be open to both. I think, here, let's, from a data standpoint, I think there's some things that are very positive going on.

We just, in the last quarter, we got messaging of one of our net lease peers has bought a theater in the, you know, a bill suit theater for Cinemark below ACAP.

So, yeah, that's an encouraging data point. And to see other net lease peers starting to tip their toe back into the water. That's exciting, so that may create an opportunity for us. As we've talked about in that space, we have two large master leases with Regal and AMC, which means we wouldn't want to break those, but to do that, we have to do a rather large transaction. But it is not... We're not opposed to selling theaters. We actively look at it. We need to get value for what we thought. And like I said, when we're starting to see eight or below eights, it's beginning to get quite interesting in how we can redeploy capital. But we'll just have to see how that plays out. That's helpful. And maybe just one last one from Mark. Obviously, you guys increased your percentage rank in Regal in the most recent guidance. I'm just curious, without asking for specific commentary on the forward outlook, is there anything that you would consider to be somewhat one-time in nature that's in that number that we need to consider thinking about 2027?

Not really. There was one time in 25, but not really in 26. And, you know, we do expect box office to be higher next year than this year, so we would expect regal percentage rents to go up next year. So without getting too specific, we do expect an increase in percentage rents in 27.

Thank you. Thank you, Mitch.

Our next question comes from Michael Goldsmith, DBS. He's on the line to ask a question.

Hi, good morning. This is Alan or Michael. Just wondering if you could help us understand how much of the guidance increase was driven by 3Q outperformance and then I guess sort of relatedly maybe the variables that would push you towards the low end versus the high end of the updated guidance? Thanks.

Yeah, I mean, this quarter was a little bit higher, some of which was timing, some of which was performance.

It's probably easier to look at what drives the full-year guidance than trying to identify the quarter. And if you look at the full-year guidance, we're up four cents.

A little over three cents of that is percent of rents.

As you saw, we increased our income at another expense, and then that is a million higher than it used to be, primarily driven by theater performance on the operating side.

and then going the other way, G&A guys was up a half a million, so call it a half a penny. That's really the drivers of the 4% increase for the year and like I said, some of that's outperformance from Q3, but some of that was that timing of percentage rise from Q3 to Q4, so it's really better to look at full year, a lot easier to understand.

Our last question comes from Janet Gannon with Bank of America Securities. Please unmute your line and ask a question.

Thank you, good morning, and congrats on a great quarter. Mark, thank you for highlighting the maintenance cap-ex change in AFO. I believe in the sub you also changed the top tenant contributions from percent of revenue to percent of ABR. I'm just wondering if there's anything to highlight on Brown leases there, or if this was just to be more comparable with peers who report on ABR, and if there's any other kind of changes you made in terms of the sub-presentation.

Really, you're right, we switched from total revenue to ABR. You know, total revenue has straight line rents and so forth, and we thought that much better representation of sort of cash rents was to use ABR, and that's more consistent with what peers show.

So you're right, we did make that change. You know, it didn't significantly change the lineup in terms of, you know, percentages and so forth, but that was a change we made in terms of the sub, and we've kind of

Move to more of an ABR than a gap revenue type presentation. With respect to AFFO, we did some work looking at peers and noted that most of our peers, the vast majority, do not subtract maintenance capex from AFFO. So we made that change and then to make sure everyone understood, recast prior periods and so forth. It didn't really have a whole lot of impact on growth. It's fairly immaterial, but we do think to be more consistent with the peer group, that made a lot of sense. It does affect, it does reduce our payout ratio a little bit, but that's the right way to look at it on a comparative basis to our peer set. And it has, you know, mildly increased, as I mentioned, sort of on an immaterial basis. But those were the Those were the two changes we thought were good changes that we made this quarter.

Thank you.

Sure.

There are no more questions, so I will now turn the call back over to Greg Silvers, Chairman of ZIO, for any closing remarks.

I just want to say thank you, everyone. I hope everyone has a great balance of the year, and we look forward to talking to you in the new year. Thanks, everyone.

Thank you for joining EPR Properties Q3 2026 earnings call. This concludes today's call. You may now disconnect.