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EPR Properties & CNL Lifestyle Announce Transaction Closure

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Kansas City, MO-based EPR Properties (EPR - Free Report) and Orlando, FL-based CNL Lifestyle Properties, Inc. announced that the former has completed the acquisition of certain properties of the latter for $455.5 million.
The acquired properties include Northstar California Ski Resort, 15 attraction properties (waterparks and amusement parks) and five small family entertainment centers. Also, EPR Properties arranged $251 million debt financing to funds affiliated with Och-Ziff Real Estate (OZRE) for purchasing 14 CNL Lifestyle ski properties at $374.5 million.

For CNL Lifestyle, the closing of the sale to EPR and Och-Ziff represents the final transaction since the company officially launched its strategic liquidity process in early 2014. This marks a crucial moment for the company and shareholders. This transaction not only gives final liquidity to the investors, but also provides a robust future for these properties.

EPR Properties is a specialty REIT that invests in three primary segments: entertainment, recreation and education. For the REIT, acquisition of this portfolio of high-quality properties will be immediately accretive to its FFO per share. Also, it is expected that this acquisition will add to its portfolio diversity.

Shares of EPR Properties outperformed the Zacks categorized REIT and Equity Trust – Retail industry over the past three months. During this time, while the company’s shares gained 2.5%, the industry recorded a loss of 3.7%. Also, its estimates for the full-year 2017 FFO per share moved north over the past 30 days.

Currently, EPR Properties carries a Zacks Rank #3 (Hold).

Investors interested in the REIT space, may consider stocks like Global Net Lease, Inc. (GNL - Free Report) , CoreSite Realty Corporation (COR - Free Report) and CorEnergy Infrastructure Trust, Inc. (CORR - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last 30 days, Global Net Lease’s FFO per share for first-quarter 2017 remained unchanged at 60 cents.

In the last 30 days, CoreSite Realty’s FFO per share for first-quarter 2017 increased 0.9% to $1.06.

CorEnergy Infrastructure Trust’s first-quarter 2017 FFO per share estimates moved up 1.8% to $1.14, in the last 30 days.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.

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