Triple-net REITs: 1Q26 Net Lease Earnings Weekly Recap: EPR, FVR & O

Research evidence excerpt

Triple-net REITs: 1Q26 Net Lease Earnings Weekly Recap: EPR, FVR & O

of PO changes

Convertible mortgage creates path to ownership Updated price objectives

O & EPR are increasingly leveraging credit and structured investments as a flexible off- PO

Ticker Old New

market path to ownership. O deployed ~$1bn into credit, including a $375mn mezz loan

EPR $59 $61

against IG-lease logistics assets and a $190mn data center development loan in VA, pre- FVR $15 $17

leased to a hyperscale tenant, with both structured with the intent to own the underlying O $70 $71

assets. EPR’s playbook is similar with over 80% of its mortgage book is convertible and Source: BofA Global Research, priced as of 5/8/2026

in 1Q converted its $70mn mortgage note into a wholly owned asset (Margaritaville) BofA GLOBAL RESEARCH

under a 20 year triple net lease.

Minimal equity and debt needed to support capital plans Key terms

AFFO: Adjusted funds fromThe majority of 2026 external growth plans are well funded across equity, debt,

operationsdispositions and FCF. O raised $174mn incremental forward equity, issued $800mn

ABR: Annualized base rentunsecured notes post quarter and a $694mn 10-year unsecured term loan via a

ATM: At the marketmunicipal prepay structure. EPR entered forward equity sales agreements for $47.5mn

Bn: Billionand raised disposition guidance to $75mn. FVR funded activity through asset recycling

Bp: Basis pointsand free cash flow. EPR has a $180mn note maturing in August with a 4.56% interest

C: Centrate and a $450mn note maturing in December with a 4.75% interest rate.

FCF: Free cash flow

1x termination income reflects portfolio optimization FFOAA: Fund from operations as

O’s Management attributed O’s $40mn 1Q lease termination income to proactive adjusted