RBC cuts PT for EPR as Regal's parent explores bankruptcy
24/08/2022 17:57
** Shares of retail REIT EPR Properties EPR.N down 1.96%
at $46.46 during mid-day trade
** Brokerage RBC Capital Markets trims PT by $6 to $49 due
to uncertainties related to Regal rent cuts, lower percentage
rents, and higher interest rates
** "We believe EPR's cashflow risk is largely related to its
Regal exposure (13.5% of revenues) and smaller exhibitor tenants
(5.9%)" - RBC Capital Markets
** Regal, a tenant of EPR, contributes about 14% to EPR's
total revenue
** Regal's parent and no.2 cinema operator Cineworld
CINE.L is exploring a potential bankruptcy as it struggles to
recover from the pandemic urn:newsml:reuters.com:*:nL4N2ZY1A4
** EPR says Regal has made all payments due to co as of Aug.
17, discloses that it is not in current negotiations with Regal
or Cineworld about their obligations urn:newsml:reuters.com:*:nL4N2ZT34T
** Up to Tuesday's close, EPR shares were down 0.2% YTD vs
~11% fall for NYSE .NYA Composite Index
(Reporting by Priyamvada C in Bengaluru)
((Priyamvada.c@thomsonreuters.com))