10:25 AM EDT, 08/04/2025 (MT Newswires) -- EPR Properties ( EPR ) is likely to remain "pragmatic" in deploying capital given its narrow investment spreads and current cost of capital, RBC Capital Markets said Monday in a report.

EPR has a "competitive advantage" deploying capital into the experiential real estate market, but lacks the cost-of-capital efficiency to pursue transactions, even with the recent improvement, RBC said.

Completing $300 million investments per year is estimated to yield about $0.02 of accretion to adjusted funds from operations at current market-price levels, RBC said. The upside scenario shows EPR closing a $500 million transaction and expanding its investment spread to about 100 basis points, the report said.

RBC downgraded EPR Properties ( EPR ) stock to sector perform from outperform and maintained its $58 price target.

Price: 54.66, Change: -0.35, Percent Change: -0.64