EPR – Market expectations are for Uniform ROA to decline, and management may be concerned about collections, payments, and Master Lease

• EPR Properties (EPR:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about their ability to improve rent collections, their ability to collect cash and deferral payments, and the new Master Lease structure
• Specifically, management may lack confidence in their ability to mitigate declines in adjusted funds from operations (AFFO), continue improving rent collections, and collect cash from deferrals. Moreover, they may be concerned about the performance of their outdoor tenants and the low percentage of customers with no deferrals. Furthermore, they may be exaggerating the potential of the new Master Lease structure in reducing risk, and might be downplaying headwinds to the ski season related to the pandemic.