EPR Properties sells charter school portfolio for $454m to Rosemawr

EPR Properties, a Missouri-based real estate investment trust (REIT), has sold substantially all of its charter school portfolio, comprising 47 charter school related assets, for nearly $454 million to a fund sponsored by Rosemawr Management.

The sale does not include three charter schools that the real estate investment trust sold in Q4 2019 for $21.6 million and another charter school which it expects to offload during Q4 2019.

EPR Properties also said that the sale of the charter school portfolio activates its planned migration towards channelizing its growth on experiential real estate.

Greg Silvers – President and CEO of EPR Properties said: “Since we entered the charter school market we have enjoyed very attractive returns, but competitive financing alternatives, primarily in the tax-exempt bond market, have caused structural market changes that increased earnings volatility and were incompatible with our mandate as a REIT to provide long-term and predictable income.

“We recognize the strong consumer demand for location-based experiences, and believe our decades of experience, longstanding relationships and institutional knowledge will continue to provide us with a sustainable competitive advantage.

“We believe our diversified portfolio, with the ultimate addition of casino resorts, distinguishes us from other platforms and uniquely positions us to benefit from the strong tailwinds provided by changing consumer preferences and favorable demographics.”

EPR Properties will also stop organizing its portfolio around the discrete segments of entertainment, recreation, and education.

Moving ahead, the experiential portfolio of the company will be organized by the main property types targeted for growth in experiential real estate. The property types included in this will be theatres, eat and play, experiential lodging, ski, attractions, gaming, fitness and wellness, cultural and live venues.