Rising Interest Rates Impact Holdings of EPR & SoFi Stocks

Investors eye potential gains as interest rate expectations shift. The focus is on EPR Properties and SoFi as they might benefit from lower rates in 2025.

Date: 05-01-2025

AI Rating: 7

**Earnings and Growth Impact**

The report discusses the effects of changing interest rate expectations on stock prices, particularly for EPR Properties (NYSE: EPR) and SoFi (NASDAQ: SOFI). Falling interest rates could significantly benefit both companies due to their operations in real estate and financial services, respectively.

**EPR Properties** is a real estate investment trust (REIT) focused on experiential properties, and it stands to gain from lower borrowing costs as rates fall. Additionally, the company enjoys a 7.7% dividend yield, suggesting that its profits adequately cover this payment, indicating a healthy financial status. This could build investor confidence. The mention of EPR's growth strategy targeting a $100 billion market and avoiding debt at current interest rates presents a positive outlook for potential stock price appreciation.

**SoFi**, an online bank, is also positioned to benefit from falling interest rates. The current average loan yield of 9.35% against a deposit cost of 4.2% reveals a favorable profit margin situation that may improve significantly if interest rates decline. Furthermore, SoFi's year-over-year membership growth of 35% along with rapid profitability suggests strong momentum, which could positively influence its stock price.

Overall, the potential for both companies to leverage favorable economic conditions and improve their earnings could create a bullish sentiment around their stocks in the coming years.

Stocks: EPR SOFI