8 Most Undervalued REIT Stocks To Buy Now

2. EPR Properties (NYSE:EPR)

Number of Hedge Fund Holders: 30

Forward P/E: 17.93

EPR Properties (NYSE:EPR) is a diversified experiential net lease real estate investment trust. The firm has a mission of becoming the premier experiential REIT. It specializes in select enduring experiential properties in the real estate industry. EPR’s experiential portfolio has diverse property types comprising theatres, attractions, ski, eat & play, experiential lodging, fitness & wellness, cultural, and gaming. Additionally, the company’s education portfolio includes early childhood education center properties and private school properties.

EPR has a unique depth of experience in experiential properties since it has invested in such properties for over 25 years. The potential for future growth in location-based entertainment is vast with an over $100 billion addressable market. EPR has a strong portfolio spanning 354 locations with over 200 tenants in 44 states and Canada. The firm’s properties have historically outperformed both the Russell 1000 and MSCI US REIT Index in total return. With millennials being the largest population segment and prioritizing experiences over products, EPR also has attractive market conditions to pursue.

For the second quarter of 2024, EPR Properties (NYSE:EPR) demonstrated continued positive momentum. Other than having a strong demand for tenant categories, consumers continue to prioritize spending on experiences. Net income available to common shareholders grew 414% year-over-year. During the quarter, the firm’s investment spending totaled $46.9 million which brought year-to-date investment spending to $132.7 million.

EPR Properties (NYSE:EPR) has a strong position with its leading experiential portfolio, extensive market experience, strong balance sheet, and favorable conditions in the market. Additionally, its education portfolio is a legacy investment that offers diversity. As of Q2, the stock is held by 30 hedge funds.