EPR Properties announced a $113 million purchase of a portfolio that includes five championship golf courses and the Ocean Breeze Water Park in Virginia Beach, Virginia. The transaction, completed on December 4, 2025, adds a diversified set of leisure assets that complement the REIT’s existing hot springs, fitness centers and ski resorts.
The deal is structured as a leaseback, with the golf courses operated by Advance Golf Partners and the water park managed by an affiliate of Premier Parks. The leaseback will generate long‑term, triple‑net income for EPR, and the blended capitalization rate of 8.6% exceeds the REIT’s weighted average cost of capital, which stood at 6.93% as of November 30, 2025. The lease terms are expected to span 20‑25 years, providing predictable cash flows and minimal operating responsibility for the REIT.
EPR’s management said the acquisition is a continuation of its strategy to reduce exposure to the struggling theater segment and to double down on experiential real estate that benefits from persistent consumer demand for out‑of‑home activities. The company also revised its 2025 investment‑spending guidance to $285 million, up from the prior $225‑$275 million range, signaling confidence in attractive opportunities in the experiential space.
Financially, the REIT’s Q2 2024 revenue fell 4.5% year‑over‑year to $167.2 million, and adjusted FFO per share was $1.22 versus $1.28 in the prior year. The dividend yield sits at 6.75%, with an annualized dividend of $3.54 per share, but the payout ratio is high—144%—indicating limited retained earnings for reinvestment. The new acquisition is expected to strengthen earnings quality and support the dividend‑growth strategy.
CEO Gregory Silvers said, “Our decision to invest in the golf sector reflects a thoughtful, research‑driven approach and a commitment to investing in high‑quality assets. The acquisition of these leading golf courses marks a significant step in our strategy, and we are pleased to welcome Advance Golf Partners as a new partner.” He added that adding Ocean Breeze Water Park will broaden the range of attraction experiences in the portfolio and reinforce the REIT’s focus on long‑term, triple‑net income streams.
The acquisition comes at a time when experiential real estate is gaining traction as consumers seek memorable out‑of‑home activities, while the theater industry continues to face headwinds from changing entertainment habits. By expanding its golf and water‑park holdings, EPR positions itself to capture stable, high‑margin cash flows and to further diversify its experiential portfolio, potentially enhancing long‑term shareholder value.
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