QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 43-1790877 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
909 Walnut Street, | Suite 200 | ||||||||||
Kansas City, | Missouri | 64106 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: | (816) | 472-1700 |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Common shares, par value $0.01 per share | EPR | New York Stock Exchange | ||||||||||||
5.75% Series C cumulative convertible preferred shares, par value $0.01 per share | EPR PrC | New York Stock Exchange | ||||||||||||
9.00% Series E cumulative convertible preferred shares, par value $0.01 per share | EPR PrE | New York Stock Exchange | ||||||||||||
5.75% Series G cumulative redeemable preferred shares, par value $0.01 per share | EPR PrG | New York Stock Exchange |
Large accelerated filer | Accelerated filer | |||||||||||||||||||
Non-accelerated filer | Smaller reporting company | |||||||||||||||||||
Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial standards provided pursuant to Section 13(a) of the Exchange Act. |
Page | |||||||||||||||
Item 1. | Financial Statements | ||||||||||||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | ||||||||||||||
Item 4. | Controls and Procedures | ||||||||||||||
Item 1. | Legal Proceedings | ||||||||||||||
Item 1A. | Risk Factors | ||||||||||||||
Item 2. | Unregistered Sale of Equity Securities and Use of Proceeds | ||||||||||||||
Item 3. | Defaults Upon Senior Securities | ||||||||||||||
Item 4. | Mine Safety Disclosures | ||||||||||||||
Item 5. | Other Information | ||||||||||||||
Item 6. | Exhibits |
EPR PROPERTIES Consolidated Balance Sheets (Dollars in thousands except share data) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
Assets | |||||||
Rental properties, net of accumulated depreciation of $711,384 and $635,535 at September 30, 2017 and December 31, 2016, respectively | $ | 4,535,994 | $ | 3,595,762 | |||
Land held for development | 33,674 | 22,530 | |||||
Property under development | 284,211 | 297,110 | |||||
Mortgage notes and related accrued interest receivable | 972,371 | 613,978 | |||||
Investment in a direct financing lease, net | 57,698 | 102,698 | |||||
Investment in joint ventures | 5,616 | 5,972 | |||||
Cash and cash equivalents | 11,412 | 19,335 | |||||
Restricted cash | 24,323 | 9,744 | |||||
Accounts receivable, net | 99,213 | 98,939 | |||||
Other assets | 108,498 | 98,954 | |||||
Total assets | $ | 6,133,010 | $ | 4,865,022 | |||
Liabilities and Equity | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 140,582 | $ | 119,758 | |||
Common dividends payable | 25,046 | 20,367 | |||||
Preferred dividends payable | 5,951 | 5,951 | |||||
Unearned rents and interest | 85,198 | 47,420 | |||||
Debt | 2,987,925 | 2,485,625 | |||||
Total liabilities | 3,244,702 | 2,679,121 | |||||
Equity: | |||||||
Common Shares, $.01 par value; 100,000,000 shares authorized; and 76,397,669 and 66,263,487 shares issued at September 30, 2017 and December 31, 2016, respectively | 764 | 663 | |||||
Preferred Shares, $.01 par value; 25,000,000 shares authorized: | |||||||
5,399,050 Series C convertible shares issued at September 30, 2017 and December 31, 2016; liquidation preference of $134,976,250 | 54 | 54 | |||||
3,449,165 and 3,450,000 Series E convertible shares issued at September 30, 2017 and December 31, 2016, respectively; liquidation preference of $86,229,125 | 34 | 35 | |||||
5,000,000 Series F shares issued at September 30, 2017 and December 31, 2016; liquidation preference of $125,000,000 | 50 | 50 | |||||
Additional paid-in-capital | 3,420,867 | 2,677,046 | |||||
Treasury shares at cost: 2,732,736 and 2,616,406 common shares at September 30, 2017 and December 31, 2016, respectively | (121,539 | ) | (113,172 | ) | |||
Accumulated other comprehensive income | 10,919 | 7,734 | |||||
Distributions in excess of net income | (422,841 | ) | (386,509 | ) | |||
Total equity | $ | 2,888,308 | $ | 2,185,901 | |||
Total liabilities and equity | $ | 6,133,010 | $ | 4,865,022 |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Real estate investments, net of accumulated depreciation of $1,369,790 and $1,302,640 at June 30, 2023 and December 31, 2022, respectively | $ | 4,659,678 | $ | 4,714,136 | |||||||
Land held for development | 20,168 | 20,168 | |||||||||
Property under development | 80,650 | 76,029 | |||||||||
Operating lease right-of-use assets | 192,325 | 200,985 | |||||||||
Mortgage notes and related accrued interest receivable, net | 466,459 | 457,268 | |||||||||
Investment in joint ventures | 53,763 | 52,964 | |||||||||
Cash and cash equivalents | 99,711 | 107,934 | |||||||||
Restricted cash | 2,623 | 2,577 | |||||||||
Accounts receivable | 53,305 | 53,587 | |||||||||
Other assets | 74,882 | 73,053 | |||||||||
Total assets | $ | 5,703,564 | $ | 5,758,701 | |||||||
Liabilities and Equity | |||||||||||
Liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 74,493 | $ | 80,087 | |||||||
Operating lease liabilities | 233,126 | 241,407 | |||||||||
Common dividends payable | 22,289 | 21,405 | |||||||||
Preferred dividends payable | 6,032 | 6,033 | |||||||||
Unearned rents and interest | 71,746 | 63,939 | |||||||||
Debt | 2,813,007 | 2,810,111 | |||||||||
Total liabilities | 3,220,693 | 3,222,982 | |||||||||
Equity: | |||||||||||
Common Shares, $0.01 par value; 125,000,000 and 100,000,000 shares authorized at June 30, 2023 and December 31, 2022, respectively; and 82,953,453 and 82,545,501 shares issued at June 30, 2023 and December 31, 2022, respectively | 829 | 825 | |||||||||
Preferred Shares, $0.01 par value; 25,000,000 shares authorized: | |||||||||||
5,392,916 Series C convertible shares issued at June 30, 2023 and December 31, 2022; liquidation preference of $134,822,900 | 54 | 54 | |||||||||
3,445,980 and 3,447,381 Series E convertible shares issued at June 30, 2023 and December 31, 2022, respectively; liquidation preference of $86,149,500 | 34 | 34 | |||||||||
6,000,000 Series G shares issued at June 30, 2023 and December 31, 2022; liquidation preference of $150,000,000 | 60 | 60 | |||||||||
Additional paid-in-capital | 3,915,273 | 3,899,732 | |||||||||
Treasury shares at cost: 7,630,877 and 7,520,227 common shares at June 30, 2023 and December 31, 2022, respectively | (274,001) | (269,751) | |||||||||
Accumulated other comprehensive income | 3,610 | 1,897 | |||||||||
Distributions in excess of net income | (1,162,988) | (1,097,132) | |||||||||
Total equity | $ | 2,482,871 | $ | 2,535,719 | |||||||
Total liabilities and equity | $ | 5,703,564 | $ | 5,758,701 |
EPR PROPERTIES Consolidated Statements of Income (Unaudited) (Dollars in thousands except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Rental revenue | $ | 122,827 | $ | 102,282 | $ | 349,333 | $ | 292,115 | |||||||
Tenant reimbursements | 3,734 | 3,821 | 11,424 | 11,577 | |||||||||||
Other income | 522 | 2,476 | 2,518 | 5,812 | |||||||||||
Mortgage and other financing income | 24,314 | 17,031 | 65,016 | 52,907 | |||||||||||
Total revenue | 151,397 | 125,610 | 428,291 | 362,411 | |||||||||||
Property operating expense | 6,340 | 5,626 | 18,762 | 16,687 | |||||||||||
Other expense | — | — | — | 5 | |||||||||||
General and administrative expense | 12,070 | 9,091 | 33,787 | 27,309 | |||||||||||
Costs associated with loan refinancing or payoff | 1,477 | 14 | 1,491 | 905 | |||||||||||
Gain on early extinguishment of debt | — | — | (977 | ) | — | ||||||||||
Interest expense, net | 34,194 | 24,265 | 97,853 | 70,310 | |||||||||||
Transaction costs | 113 | 2,947 | 388 | 4,881 | |||||||||||
Impairment charges | — | — | 10,195 | — | |||||||||||
Depreciation and amortization | 34,694 | 27,601 | 95,919 | 79,222 | |||||||||||
Income before equity in income from joint ventures and other items | 62,509 | 56,066 | 170,873 | 163,092 | |||||||||||
Equity in income from joint ventures | 35 | 203 | 86 | 501 | |||||||||||
Gain on sale of real estate | 997 | 1,615 | 28,462 | 3,885 | |||||||||||
Income before income taxes | 63,541 | 57,884 | 199,421 | 167,478 | |||||||||||
Income tax expense | (587 | ) | (358 | ) | (2,016 | ) | (637 | ) | |||||||
Net income | 62,954 | 57,526 | 197,405 | 166,841 | |||||||||||
Preferred dividend requirements | (5,951 | ) | (5,951 | ) | (17,855 | ) | (17,855 | ) | |||||||
Net income available to common shareholders of EPR Properties | $ | 57,003 | $ | 51,575 | $ | 179,550 | $ | 148,986 | |||||||
Per share data attributable to EPR Properties common shareholders: | |||||||||||||||
Basic earnings per share data: | |||||||||||||||
Net income available to common shareholders | $ | 0.77 | $ | 0.81 | $ | 2.55 | $ | 2.35 | |||||||
Diluted earnings per share data: | |||||||||||||||
Net income available to common shareholders | $ | 0.77 | $ | 0.81 | $ | 2.55 | $ | 2.35 | |||||||
Shares used for computation (in thousands): | |||||||||||||||
Basic | 73,663 | 63,627 | 70,320 | 63,296 | |||||||||||
Diluted | 73,724 | 63,747 | 70,385 | 63,393 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Rental revenue | $ | 151,870 | $ | 142,875 | $ | 303,461 | $ | 282,478 | |||||||||||||||
Other income | 10,124 | 9,961 | 19,457 | 19,266 | |||||||||||||||||||
Mortgage and other financing income | 10,913 | 7,610 | 21,385 | 16,174 | |||||||||||||||||||
Total revenue | 172,907 | 160,446 | 344,303 | 317,918 | |||||||||||||||||||
Property operating expense | 13,972 | 13,592 | 28,127 | 27,531 | |||||||||||||||||||
Other expense | 9,161 | 8,872 | 18,111 | 16,969 | |||||||||||||||||||
General and administrative expense | 15,248 | 12,691 | 29,213 | 25,915 | |||||||||||||||||||
Severance expense | 547 | — | 547 | — | |||||||||||||||||||
Transaction costs | 36 | 1,145 | 306 | 3,392 | |||||||||||||||||||
Credit loss (benefit) expense | (275) | 9,512 | 312 | 9,206 | |||||||||||||||||||
Impairment charges | 43,785 | — | 43,785 | 4,351 | |||||||||||||||||||
Depreciation and amortization | 43,705 | 40,766 | 84,909 | 80,810 | |||||||||||||||||||
Total operating expenses | 126,179 | 86,578 | 205,310 | 168,174 | |||||||||||||||||||
Loss on sale of real estate | (575) | — | (1,135) | — | |||||||||||||||||||
Income from operations | 46,153 | 73,868 | 137,858 | 149,744 | |||||||||||||||||||
Interest expense, net | 31,591 | 33,289 | 63,313 | 66,549 | |||||||||||||||||||
Equity in loss (income) from joint ventures | 615 | (1,421) | 2,600 | (1,315) | |||||||||||||||||||
Impairment charges on joint ventures | — | 647 | — | 647 | |||||||||||||||||||
Income before income taxes | 13,947 | 41,353 | 71,945 | 83,863 | |||||||||||||||||||
Income tax expense | 347 | 444 | 688 | 762 | |||||||||||||||||||
Net income | 13,600 | 40,909 | 71,257 | 83,101 | |||||||||||||||||||
Preferred dividend requirements | 6,040 | 6,033 | 12,073 | 12,066 | |||||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 7,560 | $ | 34,876 | $ | 59,184 | $ | 71,035 | |||||||||||||||
Net income available to common shareholders of EPR Properties per share: | |||||||||||||||||||||||
Basic | $ | 0.10 | $ | 0.47 | $ | 0.79 | $ | 0.95 | |||||||||||||||
Diluted | $ | 0.10 | $ | 0.46 | $ | 0.78 | $ | 0.95 | |||||||||||||||
Shares used for computation (in thousands): | |||||||||||||||||||||||
Basic | 75,297 | 74,986 | 75,191 | 74,915 | |||||||||||||||||||
Diluted | 75,715 | 75,234 | 75,571 | 75,142 | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Net income | $ | 13,600 | $ | 40,909 | $ | 71,257 | $ | 83,101 | |||||||||||||||
Foreign currency translation adjustment | 6,393 | (4,924) | 6,623 | (2,318) | |||||||||||||||||||
Unrealized (loss) gain on derivatives, net | (4,606) | 5,128 | (4,910) | 3,038 | |||||||||||||||||||
Comprehensive income attributable to EPR Properties | $ | 15,387 | $ | 41,113 | $ | 72,970 | $ | 83,821 |
EPR Properties Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Preferred Stock | Additional paid-in capital | Treasury shares | Accumulated other comprehensive income | Distributions in excess of net income | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par | Shares | Par | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 82,225,061 | $ | 822 | 14,840,297 | $ | 148 | $ | 3,876,817 | $ | (264,817) | $ | 9,955 | $ | (1,004,886) | $ | 2,618,039 | |||||||||||||||||||||||||||||||||||||||||||
Restricted share units issued to Trustees | 2,794 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of nonvested shares and performance shares, net of cancellations | 243,286 | 3 | — | — | 4,496 | (83) | — | — | 4,416 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common shares for vesting | — | — | — | — | — | (4,250) | — | — | (4,250) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 4,245 | — | — | — | 4,245 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | 2,606 | — | 2,606 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized loss on derivatives, net | — | — | — | — | — | — | (2,090) | — | (2,090) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 42,192 | 42,192 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common shares | 4,730 | — | — | — | 228 | — | — | — | 228 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | 9,799 | — | — | — | 454 | (458) | — | — | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents accrued on performance shares | — | — | — | — | — | — | — | (136) | (136) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($0.7750 per share) | — | — | — | — | — | — | — | (58,099) | (58,099) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series C preferred shareholders ($0.359375 per share) | — | — | — | — | — | — | — | (1,938) | (1,938) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series E preferred shareholders ($0.5625 per share) | — | — | — | — | — | — | — | (1,939) | (1,939) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series G preferred shareholders ($0.359375 per share) | — | — | — | — | — | — | — | (2,156) | (2,156) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 82,485,670 | $ | 825 | 14,840,297 | $ | 148 | $ | 3,886,240 | $ | (269,608) | $ | 10,471 | $ | (1,026,962) | $ | 2,601,114 | |||||||||||||||||||||||||||||||||||||||||||
Restricted share units issued to Trustees | 38,605 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 4,169 | — | — | — | 4,169 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (4,924) | — | (4,924) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain on derivatives, net | — | — | — | — | — | — | 5,128 | — | 5,128 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 40,909 | 40,909 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common shares | 5,587 | — | — | — | 275 | — | — | — | 275 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents accrued on performance shares | — | — | — | — | — | — | — | (188) | (188) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($0.825 per share) | — | — | — | — | — | — | — | (61,873) | (61,873) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series C preferred shareholders ($0.359375 per share) | — | — | — | — | — | — | — | (1,938) | (1,938) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series E preferred shareholders ($0.5625 per share) | — | — | — | — | — | — | — | (1,939) | (1,939) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series G preferred shareholders ($0.359375 per share) | — | — | — | — | — | — | — | (2,156) | (2,156) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 82,529,862 | $ | 825 | 14,840,297 | $ | 148 | $ | 3,890,684 | $ | (269,608) | $ | 10,675 | $ | (1,054,147) | $ | 2,578,577 | |||||||||||||||||||||||||||||||||||||||||||
Continued on next page. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPR PROPERTIES Consolidated Statements of Comprehensive Income (Unaudited) (Dollars in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 62,954 | $ | 57,526 | $ | 197,405 | $ | 166,841 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustment | 7,317 | (2,802 | ) | 13,539 | 9,340 | ||||||||||
Change in net unrealized (loss) gain on derivatives | (6,096 | ) | 4,015 | (10,354 | ) | (10,264 | ) | ||||||||
Comprehensive income | $ | 64,175 | $ | 58,739 | $ | 200,590 | $ | 165,917 |
EPR Properties Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Preferred Stock | Additional paid-in capital | Treasury shares | Accumulated other comprehensive income | Distributions in excess of net income | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par | Shares | Par | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continued from previous page. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 82,545,501 | $ | 825 | 14,840,297 | $ | 148 | $ | 3,899,732 | $ | (269,751) | $ | 1,897 | $ | (1,097,132) | $ | 2,535,719 | |||||||||||||||||||||||||||||||||||||||||||
Restricted share units issued to Trustees | 1,449 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of nonvested shares and performance shares, net of cancellations | 352,090 | 4 | — | — | 5,956 | (588) | — | — | 5,372 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common shares for vesting | — | — | — | — | — | (3,565) | — | — | (3,565) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 4,322 | — | — | — | 4,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | 230 | — | 230 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized loss on derivatives, net | — | — | — | — | — | — | (304) | — | (304) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 57,657 | 57,657 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common shares | 5,557 | — | — | — | 225 | — | — | — | 225 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series E Convertible Preferred shares to common shares | 632 | — | (1,311) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents accrued on performance shares | — | — | — | — | — | — | — | (353) | (353) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($0.825 per share) | — | — | — | — | — | — | — | (62,109) | (62,109) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series C preferred shareholders ($0.359375 per share) | — | — | — | — | — | — | — | (1,938) | (1,938) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series E preferred shareholders ($0.5625 per share) | — | — | — | — | — | — | — | (1,938) | (1,938) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series G preferred shareholders ($0.359375 per share) | — | — | — | — | — | — | — | (2,156) | (2,156) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 82,905,229 | $ | 829 | 14,838,986 | $ | 148 | $ | 3,910,235 | $ | (273,904) | $ | 1,823 | $ | (1,107,969) | $ | 2,531,162 | |||||||||||||||||||||||||||||||||||||||||||
Restricted share units issued to Trustees | 42,048 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common shares for vesting | — | — | — | — | — | (97) | — | — | (97) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 4,477 | — | — | — | 4,477 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation included in severance expense | — | — | — | — | 304 | — | — | — | 304 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | 6,393 | — | 6,393 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain on derivatives, net | — | — | — | — | — | (4,606) | — | (4,606) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 13,600 | 13,600 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common shares | 6,134 | — | — | — | 257 | — | — | — | 257 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series E Convertible Preferred shares to common shares | 42 | — | (90) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents accrued on performance shares | — | — | — | — | — | — | — | (450) | (450) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend to captive REIT preferred shareholders | — | — | — | — | — | — | — | (8) | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($0.825 per share) | — | — | — | — | — | — | — | (62,129) | (62,129) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series C preferred shareholders ($0.359375 per share) | — | — | — | — | — | — | — | (1,938) | (1,938) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series E preferred shareholders ($0.5625 per share) | — | — | — | — | — | — | — | (1,938) | (1,938) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series G preferred shareholders ($0.359375 per share) | — | — | — | — | — | — | — | (2,156) | (2,156) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | 82,953,453 | $ | 829 | 14,838,896 | $ | 148 | $ | 3,915,273 | $ | (274,001) | $ | 3,610 | $ | (1,162,988) | $ | 2,482,871 | |||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | 71,257 | $ | 83,101 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Impairment charges | 43,785 | 4,351 | |||||||||
Impairment charges on joint ventures | — | 647 | |||||||||
Loss on sale of real estate | 1,135 | — | |||||||||
Gain on insurance recovery | — | (552) | |||||||||
Deferred income tax benefit | (182) | — | |||||||||
Equity in loss (income) from joint ventures | 2,600 | (1,315) | |||||||||
Distributions from joint ventures | — | 780 | |||||||||
Credit loss expense | 312 | 9,206 | |||||||||
Depreciation and amortization | 84,909 | 80,810 | |||||||||
Amortization of deferred financing costs | 4,279 | 4,161 | |||||||||
Amortization of above/below market leases and tenant allowances, net | (274) | (176) | |||||||||
Share-based compensation expense to management and Trustees | 8,799 | 8,414 | |||||||||
Share-based compensation expense included in severance expense | 304 | — | |||||||||
Change in assets and liabilities: | |||||||||||
Operating lease assets and liabilities | 460 | (100) | |||||||||
Mortgage notes accrued interest receivable | (917) | 350 | |||||||||
Accounts receivable | 249 | 22,168 | |||||||||
Other assets | (6,181) | (3,902) | |||||||||
Accounts payable and accrued liabilities | 5,466 | 2,955 | |||||||||
Unearned rents and interest | 4,887 | 6,152 | |||||||||
Net cash provided by operating activities | 220,888 | 217,050 | |||||||||
Investing activities: | |||||||||||
Acquisition of and investments in real estate and other assets | (47,115) | (169,656) | |||||||||
Proceeds from sale of real estate | 8,373 | 80 | |||||||||
Investment in unconsolidated joint ventures | (3,399) | (17,843) | |||||||||
Distributions from joint venture related to refinancing | — | 6,695 | |||||||||
Settlement of derivative | — | (3,830) | |||||||||
Investment in mortgage notes receivable | (6,040) | (11,305) | |||||||||
Proceeds from mortgage notes receivable paydowns | 268 | 272 | |||||||||
Investment in notes receivable | (3,025) | — | |||||||||
Proceeds from note receivable paydowns | 353 | 189 | |||||||||
Proceeds from insurance recovery, net | — | 1,071 | |||||||||
Additions to properties under development | (38,886) | (9,393) | |||||||||
Net cash used by investing activities | (89,471) | (203,720) | |||||||||
Financing activities: | |||||||||||
Deferred financing fees paid | (279) | (328) | |||||||||
Net proceeds from issuance of common shares | 311 | 359 | |||||||||
Impact of stock option exercises, net | — | (4) | |||||||||
Purchase of common shares for treasury for vesting | (3,662) | (4,250) | |||||||||
Dividends paid to shareholders | (136,057) | (129,968) | |||||||||
Net cash used by financing activities | (139,687) | (134,191) | |||||||||
Effect of exchange rate changes on cash | 93 | 503 | |||||||||
Net change in cash and cash equivalents and restricted cash | (8,177) | (120,358) | |||||||||
Cash and cash equivalents and restricted cash at beginning of the period | 110,511 | 289,901 | |||||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 102,334 | $ | 169,543 | |||||||
Supplemental information continued on next page. |
EPR PROPERTIES Consolidated Statements of Changes in Equity Nine Months Ended September 30, 2017 (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||||
EPR Properties Shareholders’ Equity | |||||||||||||||||||||||||||||||||
Common Stock | Preferred Stock | Additional paid-in capital | Treasury shares | Accumulated other comprehensive income (loss) | Distributions in excess of net income | Total | |||||||||||||||||||||||||||
Shares | Par | Shares | Par | ||||||||||||||||||||||||||||||
Balance at December 31, 2016 | 66,263,487 | $ | 663 | 13,849,050 | $ | 139 | $ | 2,677,046 | $ | (113,172 | ) | $ | 7,734 | $ | (386,509 | ) | $ | 2,185,901 | |||||||||||||||
Restricted share units issued to Trustees | 19,030 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Issuance of nonvested shares, net | 295,754 | 3 | — | — | 5,585 | (90 | ) | — | — | 5,498 | |||||||||||||||||||||||
Purchase of common shares for vesting | — | — | — | — | — | (6,729 | ) | — | — | (6,729 | ) | ||||||||||||||||||||||
Amortization of nonvested shares and restricted share units | — | — | — | — | 10,038 | — | — | — | 10,038 | ||||||||||||||||||||||||
Share option expense | — | — | — | — | 528 | — | — | — | 528 | ||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | 13,539 | — | 13,539 | ||||||||||||||||||||||||
Change in unrealized gain (loss) on derivatives | — | — | — | — | — | — | (10,354 | ) | — | (10,354 | ) | ||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 197,405 | 197,405 | ||||||||||||||||||||||||
Issuances of common shares | 939,472 | 9 | — | — | 68,739 | — | — | — | 68,748 | ||||||||||||||||||||||||
Issuances of common shares for acquisition | 8,851,264 | 89 | — | — | 657,384 | — | — | — | 657,473 | ||||||||||||||||||||||||
Conversion of Series E Convertible Preferred shares to common shares | 381 | — | (835 | ) | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||||||
Stock option exercises, net | 28,281 | — | — | — | 1,547 | (1,548 | ) | — | — | (1 | ) | ||||||||||||||||||||||
Dividends to common and preferred shareholders | — | — | — | — | — | — | — | (233,737 | ) | (233,737 | ) | ||||||||||||||||||||||
Balance at September 30, 2017 | 76,397,669 | $ | 764 | 13,848,215 | $ | 138 | $ | 3,420,867 | $ | (121,539 | ) | $ | 10,919 | $ | (422,841 | ) | $ | 2,888,308 |
Continued from previous page | |||||||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Reconciliation of cash and cash equivalents and restricted cash: | |||||||||||
Cash and cash equivalents at beginning of the period | $ | 107,934 | $ | 288,822 | |||||||
Restricted cash at beginning of the period | 2,577 | 1,079 | |||||||||
Cash and cash equivalents and restricted cash at beginning of the period | $ | 110,511 | $ | 289,901 | |||||||
Cash and cash equivalents at end of the period | $ | 99,711 | $ | 168,266 | |||||||
Restricted cash at end of the period | 2,623 | 1,277 | |||||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 102,334 | $ | 169,543 | |||||||
Supplemental schedule of non-cash activity: | |||||||||||
Transfer of property under development to real estate investments | $ | 29,366 | $ | 38,119 | |||||||
Transfer of real estate investments to mortgage note | $ | 1,321 | $ | — | |||||||
Issuance of nonvested shares and restricted share units at fair value, including nonvested shares issued for payment of bonuses | $ | 25,805 | $ | 21,751 | |||||||
Operating lease right-of-use asset and related operating lease liability recorded for new ground lease | $ | — | $ | 29,022 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for interest | $ | 63,417 | $ | 63,551 | |||||||
Cash paid during the period for income taxes | $ | 964 | $ | 657 | |||||||
Interest cost capitalized | $ | 1,629 | $ | 271 | |||||||
Change in accrued capital expenditures | $ | (5,639) | $ | (217) |
EPR PROPERTIES Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Operating activities: | |||||||
Net income | $ | 197,405 | $ | 166,841 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain from early extinguishment of debt | (977 | ) | — | ||||
Impairment charges | 10,195 | — | |||||
Gain on sale of real estate | (28,462 | ) | (3,885 | ) | |||
Gain on insurance recovery | (606 | ) | (3,837 | ) | |||
Deferred income tax expense (benefit) | 911 | (664 | ) | ||||
Costs associated with loan refinancing or payoff | 1,491 | 905 | |||||
Equity in income from joint ventures | (86 | ) | (501 | ) | |||
Distributions from joint ventures | 442 | 511 | |||||
Depreciation and amortization | 95,919 | 79,222 | |||||
Amortization of deferred financing costs | 4,579 | 3,522 | |||||
Amortization of above and below market leases, net and tenant improvements | (41 | ) | 138 | ||||
Share-based compensation expense to management and Trustees | 10,566 | 8,282 | |||||
Increase in restricted cash | (744 | ) | (1,463 | ) | |||
Decrease (increase) in mortgage notes accrued interest receivable | 875 | (188 | ) | ||||
Decrease (increase) in accounts receivable, net | 10,220 | (19,066 | ) | ||||
Increase in direct financing lease receivable | (1,003 | ) | (2,503 | ) | |||
Increase in other assets | (2,225 | ) | (5,193 | ) | |||
Decrease in accounts payable and accrued liabilities | (13,969 | ) | (5,260 | ) | |||
Increase (decrease) in unearned rents and interest | 15,818 | (1,088 | ) | ||||
Net cash provided by operating activities | 300,308 | 215,773 | |||||
Investing activities: | |||||||
Acquisition of and investments in rental properties and other assets | (354,277 | ) | (177,362 | ) | |||
Proceeds from sale of real estate | 136,467 | 20,651 | |||||
Investment in mortgage notes receivable | (130,076 | ) | (80,786 | ) | |||
Proceeds from mortgage note receivable paydown | 16,608 | 63,876 | |||||
Investment in promissory notes receivable | (1,868 | ) | (66 | ) | |||
Proceeds from promissory note receivable paydown | 1,599 | — | |||||
Proceeds from sale of infrastructure related to issuance of revenue bonds | — | 43,462 | |||||
Proceeds from insurance recovery | 579 | 3,036 | |||||
Proceeds from sale of investment in a direct financing lease, net | — | 825 | |||||
Additions to properties under development | (304,084 | ) | (288,887 | ) | |||
Net cash used by investing activities | (635,052 | ) | (415,251 | ) | |||
Financing activities: | |||||||
Proceeds from debt facilities and senior unsecured notes | 1,175,000 | 854,360 | |||||
Principal payments on debt | (667,091 | ) | (587,109 | ) | |||
Deferred financing fees paid | (14,207 | ) | (3,047 | ) | |||
Costs associated with loan refinancing or payoff (cash portion) | (7 | ) | (482 | ) | |||
Net proceeds from issuance of common shares | 68,552 | 142,452 | |||||
Impact of stock option exercises, net | — | (717 | ) | ||||
Purchase of common shares for treasury for vesting | (6,729 | ) | (4,211 | ) | |||
Dividends paid to shareholders | (228,861 | ) | (198,678 | ) | |||
Net cash provided by financing activities | 326,657 | 202,568 | |||||
Effect of exchange rate changes on cash | 164 | (62 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (7,923 | ) | 3,028 | ||||
Cash and cash equivalents at beginning of the period | 19,335 | 4,283 | |||||
Cash and cash equivalents at end of the period | $ | 11,412 | $ | 7,311 | |||
Supplemental information continued on next page. |
EPR PROPERTIES Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands) Continued from previous page. | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Supplemental schedule of non-cash activity: | |||||||
Transfer of property under development to rental properties | $ | 301,612 | $ | 364,234 | |||
Issuance of nonvested shares and restricted share units at fair value, including nonvested shares issued for payment of bonuses | $ | 23,893 | $ | 19,626 | |||
Issuance of common shares for acquisition | $ | 657,473 | $ | — | |||
Assumption of liabilities net of accounts receivable for acquisition | $ | 12,083 | $ | — | |||
Transfer of investment in direct financing lease to rental properties | $ | 35,807 | $ | — | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid during the period for interest | $ | 103,702 | $ | 83,307 | |||
Cash paid during the period for income taxes | $ | 1,253 | $ | 1,380 | |||
Interest cost capitalized | $ | 7,833 | $ | 7,983 | |||
Decrease in accrued capital expenditures | $ | 7,137 | $ | 5,621 |
Six Months Ended June 30, | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Total Revenue | % of Company's Total Revenue | Total Revenue | % of Company's Total Revenue | ||||||||||||||
Regal | $ | 56,101 | 16.3 | % | $ | 45,919 | 14.4 | % | |||||||||
AMC | 47,590 | 13.8 | % | 47,588 | 15.0 | % | |||||||||||
Topgolf | 47,353 | 13.8 | % | 45,423 | 14.3 | % |
June 30, 2023 | December 31, 2022 | ||||||||||
Buildings and improvements | $ | 4,645,441 | $ | 4,637,801 | |||||||
Furniture, fixtures & equipment | 115,452 | 115,677 | |||||||||
Land | 1,240,122 | 1,236,358 | |||||||||
Leasehold interests | 28,453 | 26,940 | |||||||||
6,029,468 | 6,016,776 | ||||||||||
Accumulated depreciation | (1,369,790) | (1,302,640) | |||||||||
Total | $ | 4,659,678 | $ | 4,714,136 |
September 30, 2017 | December 31, 2016 | ||||||
Buildings and improvements | $ | 4,037,328 | $ | 3,272,865 | |||
Furniture, fixtures & equipment | 86,831 | 40,684 | |||||
Land | 1,097,445 | 917,748 | |||||
Leasehold interests | 25,774 | — | |||||
5,247,378 | 4,231,297 | ||||||
Accumulated depreciation | (711,384 | ) | (635,535 | ) | |||
Total | $ | 4,535,994 | $ | 3,595,762 |
April 6, 2017 | ||||
Rental properties, net | $ | 481,006 | ||
Mortgage notes and related accrued interest receivable | 251,038 | |||
Tradenames (included in other assets) | 6,355 | |||
Below market leases (included in accounts payable and accrued liabilities) | (7,611 | ) | ||
Total investment | $ | 730,788 |
Mortgage notes receivable | Unfunded commitments - mortgage notes receivable | Notes receivable | Unfunded commitments - notes receivable | Total | |||||||||||||
Allowance for credit losses at December 31, 2022 | $ | 8,999 | $ | 751 | $ | 11,952 | $ | — | $ | 21,702 | |||||||
Credit loss expense (benefit) | 1,319 | 253 | (1,260) | — | 312 | ||||||||||||
Charge-offs | (7,771) | — | (394) | — | (8,165) | ||||||||||||
Recoveries | — | — | — | — | — | ||||||||||||
Allowance for credit losses at June 30, 2023 | $ | 2,547 | $ | 1,004 | $ | 10,298 | $ | — | $ | 13,849 |
June 30, 2023 | December 31, 2022 | ||||||||||
Receivable from tenants | $ | 4,554 | $ | 7,595 | |||||||
Receivable from non-tenants | 707 | 1,006 | |||||||||
Straight-line rent receivable | 48,044 | 44,986 | |||||||||
Total | $ | 53,305 | $ | 53,587 |
September 30, 2017 | December 31, 2016 | ||||||
Receivable from tenants | $ | 15,977 | $ | 7,564 | |||
Receivable from non-tenants | 128 | 497 | |||||
Receivable from insurance proceeds | 27 | 1,967 | |||||
Receivable from Sullivan County Infrastructure Revenue Bonds | 10,808 | 22,164 | |||||
Straight-line rent receivable | 73,657 | 67,618 | |||||
Allowance for doubtful accounts | (1,384 | ) | (871 | ) | |||
Total | $ | 99,213 | $ | 98,939 |
September 30, 2017 | December 31, 2016 | ||||||
Total minimum lease payments receivable | $ | 113,956 | $ | 215,753 | |||
Estimated unguaranteed residual value of leased assets | 47,000 | 85,247 | |||||
Less deferred income (1) | (103,258 | ) | (198,302 | ) | |||
Less allowance for lease losses | — | — | |||||
Investment in a direct financing lease, net | $ | 57,698 | $ | 102,698 | |||
Amount | |||
Year: | |||
2017 | $ | 1,545 | |
2018 | 6,301 | ||
2019 | 6,490 | ||
2020 | 6,685 | ||
2021 | 6,885 | ||
Thereafter | 86,050 | ||
Total | $ | 113,956 |
Investment as of | Income (Loss) for the Six Months Ended | |||||||||||||||||||||||||||||||
Property Type | Location | Ownership Interest | June 30, 2023 | December 31, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||
Experiential lodging | St. Pete Beach, FL | 65 | % | (1) | $ | 19,517 | $ | 18,712 | $ | 806 | $ | 2,837 | ||||||||||||||||||||
Experiential lodging | Warrens, WI | 95 | % | (2) | 9,076 | 10,865 | (1,789) | (1,654) | ||||||||||||||||||||||||
Experiential lodging | Breaux Bridge, LA | 85 | % | (3) | 19,138 | 17,080 | (1,342) | 193 | ||||||||||||||||||||||||
Experiential lodging | Harrisville, PA | 62 | % | (4) | 6,032 | 6,307 | (275) | — | ||||||||||||||||||||||||
Theatres | China | various | — | — | — | (61) | ||||||||||||||||||||||||||
$ | 53,763 | $ | 52,964 | $ | (2,600) | $ | 1,315 |
Fixed rate | Notional Amount (in millions) | Index | Maturity | |||||||||||||||||
2.5325% | $ | 25.0 | USD SOFR | September 30, 2026 | ||||||||||||||||
Fixed rate | Notional Amount (in millions, CAD) | Annual Cash Flow (in millions, CAD) | Maturity | |||||||||||||||||
$1.26 CAD per USD | $ | 150.0 | $ | 10.8 | October 1, 2024 | |||||||||||||||
$1.28 CAD per USD | 200.0 | 4.5 | October 1, 2024 | |||||||||||||||||
$1.30 CAD per USD | 90.0 | 8.1 | December 1, 2024 | |||||||||||||||||
$ | 440.0 | $ | 23.4 |
Fixed rate | Notional Amount (in millions, CAD) | Maturity | ||||||||||||
$1.28 CAD per USD | $ | 200.0 | October 1, 2024 | |||||||||||
$1.30 CAD per USD | 90.0 | December 2, 2024 | ||||||||||||
Total | $ | 290.0 |
Effect of Derivative Instruments on the Consolidated Statements of Changes in Equity and Income for the Three and Nine Months Ended September 30, 2017 and 2016 (Dollars in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Description | 2017 | 2016 | 2017 | 2016 | |||||||||||
Interest Rate Swaps | |||||||||||||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ | 110 | $ | 1,327 | $ | 317 | $ | (5,299 | ) | ||||||
Amount of Expense Reclassified from AOCI into Earnings (Effective Portion) (1) | (263 | ) | (1,317 | ) | (2,247 | ) | (3,970 | ) | |||||||
Cross Currency Swaps | |||||||||||||||
Amount of (Loss) Gain Recognized in AOCI on Derivative (Effective Portion) | (532 | ) | 279 | (907 | ) | (1,159 | ) | ||||||||
Amount of Income Reclassified from AOCI into Earnings (Effective Portion) (2) | 520 | 643 | 1,879 | 1,957 | |||||||||||
Currency Forward Agreements | |||||||||||||||
Amount of (Loss) Gain Recognized in AOCI on Derivative (Effective Portion) | (5,417 | ) | 1,735 | (10,132 | ) | (5,819 | ) | ||||||||
Amount of Income Reclassified from AOCI into Earnings (Effective Portion) | — | — | — | — | |||||||||||
Total | |||||||||||||||
Amount of (Loss) Gain Recognized in AOCI on Derivative (Effective Portion) | $ | (5,839 | ) | $ | 3,341 | $ | (10,722 | ) | $ | (12,277 | ) | ||||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | 257 | (674 | ) | (368 | ) | (2,013 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Description | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Cash Flow Hedges | |||||||||||||||||
Interest Rate Swaps | |||||||||||||||||
Amount of Gain Recognized in AOCI on Derivative | $ | 516 | $ | 225 | $ | 218 | $ | 1,050 | |||||||||
Amount of Income (Expense) Reclassified from AOCI into Earnings (1) | 159 | (37) | 285 | (113) | |||||||||||||
Cross-Currency Swaps | |||||||||||||||||
Amount of (Loss) Gain Recognized in AOCI on Derivative | (460) | 199 | (456) | 173 | |||||||||||||
Amount of Income (Expense) Reclassified from AOCI into Earnings (2) | 216 | (45) | 441 | (99) | |||||||||||||
Net Investment Hedges | |||||||||||||||||
Cross-Currency Swaps | |||||||||||||||||
Amount of Gain Recognized in AOCI on Derivative | — | 3,684 | — | 665 | |||||||||||||
Amount of Income Recognized in Earnings (2) (3) | — | 71 | — | 170 | |||||||||||||
Currency Forward Agreements | |||||||||||||||||
Amount of (Loss) Gain Recognized in AOCI on Derivative | (4,287) | 938 | (3,946) | 938 | |||||||||||||
Total | |||||||||||||||||
Amount of (Loss) Gain Recognized in AOCI on Derivatives | $ | (4,231) | $ | 5,046 | $ | (4,184) | $ | 2,826 | |||||||||
Amount of Income (Expense) Reclassified from AOCI into Earnings | 375 | (82) | 726 | (212) | |||||||||||||
Amount of Income Recognized in Earnings | — | 71 | — | 170 | |||||||||||||
Interest expense, net in accompanying consolidated statements of income and comprehensive income | $ | 31,591 | $ | 33,289 | $ | 63,313 | $ | 66,549 | |||||||||
Other income in accompanying consolidated statements of income and comprehensive income | $ | 10,124 | $ | 9,961 | $ | 19,457 | $ | 19,266 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis at September 30, 2017 and December 31, 2016 (Dollars in thousands) | |||||||||||||||
Description | Quoted Prices in Active Markets for Identical Assets (Level I) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Assets (Liabilities) Balance at end of period | |||||||||||
September 30, 2017 | |||||||||||||||
Cross-Currency Swaps* | $ | — | $ | 1,372 | $ | — | $ | 1,372 | |||||||
Currency Forward Agreements* | $ | — | $ | 21,650 | $ | — | $ | 21,650 | |||||||
Interest Rate Swap Agreements* | $ | — | $ | 83 | $ | — | $ | 83 | |||||||
December 31, 2016: | |||||||||||||||
Cross-Currency Swaps* | $ | — | $ | 4,158 | $ | — | $ | 4,158 | |||||||
Currency Forward Agreements* | $ | — | $ | 31,782 | $ | — | $ | 31,782 | |||||||
Interest Rate Swap Agreements** | $ | — | $ | (2,482 | ) | $ | — | $ | (2,482 | ) |
Description | Quoted Prices in Active Markets for Identical Assets (Level I) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at end of period | ||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||
Cross-Currency Swaps (1) | $ | — | $ | 626 | $ | — | $ | 626 | ||||||||||||||||||
Currency Forward Agreements (1) | — | 4,741 | — | 4,741 | ||||||||||||||||||||||
Interest Rate Swap Agreements (1) | — | 1,359 | — | 1,359 | ||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Cross-Currency Swaps (1) | $ | — | $ | 1,523 | $ | — | $ | 1,523 | ||||||||||||||||||
Currency Forward Agreements (1) | — | 8,686 | — | 8,686 | ||||||||||||||||||||||
Interest Rate Swap Agreements (1) | — | 1,240 | — | 1,240 | ||||||||||||||||||||||
Description | Quoted Prices in Active Markets for Identical Assets (Level I) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at end of period | |||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||
Real estate investments, net (1) | $ | — | $ | — | $ | 27,190 | $ | 27,190 | |||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Real estate investments, net | $ | — | $ | 4,700 | $ | 33,670 | $ | 38,370 | |||||||||||||||
Operating lease right-of-use asset | — | — | 7,006 | 7,006 | |||||||||||||||||||
Mortgage notes and related accrued interest receivable, net | — | — | 7,780 | 7,780 | |||||||||||||||||||
Investment in joint ventures | — | — | — | — | |||||||||||||||||||
Other assets (2) | — | — | 1,316 | 1,316 |
Description | Quoted Prices in Active Markets for Identical Assets (Level I) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at end of period | |||||||||||
Investment in a direct financing lease, net | $ | — | $ | — | $ | 35,807 | $ | 35,807 |
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
Income (numerator) | Shares (denominator) | Per Share Amount | Income (numerator) | Shares (denominator) | Per Share Amount | ||||||||||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||||||||||||
Net income | $ | 13,600 | $ | 71,257 | |||||||||||||||||||||||||||||||
Less: preferred dividend requirements | (6,040) | (12,073) | |||||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 7,560 | 75,297 | $ | 0.10 | $ | 59,184 | 75,191 | $ | 0.79 | |||||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 7,560 | 75,297 | $ | 59,184 | 75,191 | |||||||||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||||
Performance shares | — | 418 | — | 380 | |||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 7,560 | 75,715 | $ | 0.10 | $ | 59,184 | 75,571 | $ | 0.78 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (numerator) | Shares (denominator) | Per Share Amount | Income (numerator) | Shares (denominator) | Per Share Amount | Income (numerator) | Shares (denominator) | Per Share Amount | Income (numerator) | Shares (denominator) | Per Share Amount | |||||||||||||||||||||||||||||||||||||||||||||
Basic EPS: | Basic EPS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 62,954 | $ | 197,405 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 40,909 | $ | 83,101 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Less: preferred dividend requirements | (5,951 | ) | (17,855 | ) | Less: preferred dividend requirements | (6,033) | (12,066) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 57,003 | 73,663 | $ | 0.77 | $ | 179,550 | 70,320 | $ | 2.55 | Net income available to common shareholders | $ | 34,876 | 74,986 | $ | 0.47 | $ | 71,035 | 74,915 | $ | 0.95 | |||||||||||||||||||||||||||||||||||
Diluted EPS: | Diluted EPS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 57,003 | 73,663 | $ | 179,550 | 70,320 | Net income available to common shareholders | $ | 34,876 | 74,986 | $ | 71,035 | 74,915 | |||||||||||||||||||||||||||||||||||||||||||
Effect of dilutive securities: | Effect of dilutive securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share options | — | 61 | — | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share options and performance shares | Share options and performance shares | — | 248 | — | 227 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 57,003 | 73,724 | $ | 0.77 | $ | 179,550 | 70,385 | $ | 2.55 | Net income available to common shareholders | $ | 34,876 | 75,234 | $ | 0.46 | $ | 71,035 | 75,142 | $ | 0.95 |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Income (numerator) | Shares (denominator) | Per Share Amount | Income (numerator) | Shares (denominator) | Per Share Amount | ||||||||||||||||
Basic EPS: | |||||||||||||||||||||
Income from continuing operations | $ | 57,526 | $ | 166,841 | |||||||||||||||||
Less: preferred dividend requirements | (5,951 | ) | (17,855 | ) | |||||||||||||||||
Net income available to common shareholders | $ | 51,575 | 63,627 | $ | 0.81 | $ | 148,986 | 63,296 | $ | 2.35 | |||||||||||
Diluted EPS: | |||||||||||||||||||||
Net income available to common shareholders | $ | 51,575 | 63,627 | $ | 148,986 | 63,296 | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||
Share options | — | 120 | — | 97 | |||||||||||||||||
Net income available to common shareholders | $ | 51,575 | 63,747 | $ | 0.81 | $ | 148,986 | 63,393 | $ | 2.35 |
Number of options | Option price per share | Weighted avg. exercise price | |||||||||||||||
Outstanding at December 31, 2016 | 285,986 | $ | 19.02 | — | $ | 61.79 | $ | 51.93 | |||||||||
Exercised | (28,281 | ) | 46.86 | — | 61.79 | 54.72 | |||||||||||
Granted | 2,215 | 76.63 | — | 76.63 | 76.63 | ||||||||||||
Forfeited/Expired | (1,342 | ) | 51.64 | — | 61.79 | 59.52 | |||||||||||
Outstanding at September 30, 2017 | 258,578 | $ | 19.02 | — | $ | 76.63 | $ | 51.80 |
Exercise price range | Options outstanding | Weighted avg. life remaining | Weighted avg. exercise price | Aggregate intrinsic value (in thousands) | ||||||||||
$ 19.02 - 19.99 | 11,097 | 1.6 | ||||||||||||
20.00 - 29.99 | — | — | ||||||||||||
30.00 - 39.99 | 1,428 | 2.3 | ||||||||||||
40.00 - 49.99 | 86,863 | 4.3 | ||||||||||||
50.00 - 59.99 | 75,939 | 6.1 | ||||||||||||
60.00 - 69.99 | 81,036 | 7.4 | ||||||||||||
70.00 - 76.63 | 2,215 | 9.4 | ||||||||||||
258,578 | 5.7 | $ | 51.80 | $ | 4,654 |
Exercise price range | Options outstanding | Weighted avg. life remaining | Weighted avg. exercise price | Aggregate intrinsic value (in thousands) | ||||||||||
$ 19.02 - 19.99 | 11,097 | 1.6 | ||||||||||||
20.00 - 29.99 | — | — | ||||||||||||
30.00 - 39.99 | 1,428 | 2.3 | ||||||||||||
40.00 - 49.99 | 86,863 | 4.3 | ||||||||||||
50.00 - 59.99 | 51,276 | 6.0 | ||||||||||||
60.00 - 69.99 | 38,375 | 7.4 | ||||||||||||
70.00 - 76.63 | — | — | ||||||||||||
189,039 | 5.2 | $ | 49.28 | $ | 3,868 |
Number of shares | Weighted avg. grant date fair value | Weighted avg. life remaining | |||||||||||||||
Outstanding at December 31, 2022 | 503,912 | $ | 50.38 | ||||||||||||||
Granted | 352,090 | 42.23 | |||||||||||||||
Vested | (228,102) | 54.10 | |||||||||||||||
Forfeited | (13,809) | 45.20 | |||||||||||||||
Outstanding at June 30, 2023 | 614,091 | $ | 44.44 | 1.40 |
Number of shares | Weighted avg. grant date fair value | Weighted avg. life remaining | ||||||
Outstanding at December 31, 2016 | 534,317 | $ | 59.22 | |||||
Granted | 295,754 | 76.53 | ||||||
Vested | (208,822 | ) | 57.43 | |||||
Forfeited | (1,342 | ) | 66.88 | |||||
Outstanding at September 30, 2017 | 619,907 | $ | 68.07 | 1.21 |
Target Number of Performance Shares | |||||
Outstanding at December 31, 2022 | 257,386 | ||||
Granted | 111,593 | ||||
Vested (1) | (56,338) | ||||
Forfeited | — | ||||
Outstanding at June 30, 2023 | 312,641 |
Number of shares | Weighted avg. grant date fair value | Weighted avg. life remaining | |||||||||||||||
Outstanding at December 31, 2022 | 38,605 | $ | 50.77 | ||||||||||||||
Granted | 43,497 | 41.67 | |||||||||||||||
Vested | (40,054) | 50.44 | |||||||||||||||
Outstanding at June 30, 2023 | 42,048 | $ | 41.67 | 0.92 |
Number of shares | Weighted avg. grant date fair value | Weighted avg. life remaining | ||||||
Outstanding at December 31, 2016 | 15,805 | $ | 70.93 | |||||
Granted | 19,030 | 70.91 | ||||||
Vested | (15,805 | ) | 70.93 | |||||
Outstanding at September 30, 2017 | 19,030 | $ | 70.91 | 0.58 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Classification | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Operating leases | Rental revenue | $ | 145,531 | $ | 136,918 | $ | 290,766 | $ | 270,746 | ||||||||||||||||||||
Sublease income - operating ground leases | Rental revenue | 6,339 | 5,957 | 12,695 | 11,732 | ||||||||||||||||||||||||
Lease costs | |||||||||||||||||||||||||||||
Operating ground lease cost | Property operating expense | $ | 6,563 | $ | 6,136 | $ | 13,163 | $ | 12,105 | ||||||||||||||||||||
Operating office lease cost | General and administrative expense | 224 | 226 | 448 | 452 | ||||||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||
As of June 30, 2023 | ||||||||||||||
Experiential | Education | Corporate/Unallocated | Consolidated | |||||||||||
Total Assets | $ | 5,140,804 | $ | 460,126 | $ | 102,634 | $ | 5,703,564 | ||||||
As of December 31, 2022 | ||||||||||||||
Experiential | Education | Corporate/Unallocated | Consolidated | |||||||||||
Total Assets | $ | 5,164,710 | $ | 473,580 | $ | 120,411 | $ | 5,758,701 |
Operating Data: | ||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||
Experiential | Education | Corporate/Unallocated | Consolidated | |||||||||||
Rental revenue | $ | 142,421 | $ | 9,449 | $ | — | $ | 151,870 | ||||||
Other income | 9,825 | — | 299 | 10,124 | ||||||||||
Mortgage and other financing income | 10,694 | 219 | — | 10,913 | ||||||||||
Total revenue | 162,940 | 9,668 | 299 | 172,907 | ||||||||||
Property operating expense | 13,744 | — | 228 | 13,972 | ||||||||||
Other expense | 9,161 | — | — | 9,161 | ||||||||||
Total investment expenses | 22,905 | — | 228 | 23,133 | ||||||||||
Net operating income - before unallocated items | 140,035 | 9,668 | 71 | 149,774 | ||||||||||
Reconciliation to Consolidated Statements of Income and Comprehensive Income: | ||||||||||||||
General and administrative expense | (15,248) | |||||||||||||
Severance expense | (547) | |||||||||||||
Transaction costs | (36) | |||||||||||||
Credit loss benefit | 275 | |||||||||||||
Impairment charges | (43,785) | |||||||||||||
Depreciation and amortization | (43,705) | |||||||||||||
Loss on sale of real estate | (575) | |||||||||||||
Interest expense, net | (31,591) | |||||||||||||
Equity in loss from joint ventures | (615) | |||||||||||||
Income tax expense | (347) | |||||||||||||
Net income | 13,600 | |||||||||||||
Preferred dividend requirements | (6,040) | |||||||||||||
Net income available to common shareholders of EPR Properties | $ | 7,560 |
Operating Data: | ||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||
Experiential | Education | Corporate/Unallocated | Consolidated | |||||||||||
Rental revenue | $ | 133,009 | $ | 9,866 | $ | — | $ | 142,875 | ||||||
Other income | 7,685 | — | 2,276 | 9,961 | ||||||||||
Mortgage and other financing income | 7,382 | 228 | — | 7,610 | ||||||||||
Total revenue | 148,076 | 10,094 | 2,276 | 160,446 | ||||||||||
Property operating expense | 13,358 | — | 234 | 13,592 | ||||||||||
Other expense | 8,872 | — | — | 8,872 | ||||||||||
Total investment expenses | 22,230 | — | 234 | 22,464 | ||||||||||
Net operating income - before unallocated items | 125,846 | 10,094 | 2,042 | 137,982 | ||||||||||
Reconciliation to Consolidated Statements of Income and Comprehensive Income: | ||||||||||||||
General and administrative expense | (12,691) | |||||||||||||
Transaction costs | (1,145) | |||||||||||||
Credit loss expense | (9,512) | |||||||||||||
Depreciation and amortization | (40,766) | |||||||||||||
Interest expense, net | (33,289) | |||||||||||||
Equity in income from joint ventures | 1,421 | |||||||||||||
Impairment charges on joint ventures | (647) | |||||||||||||
Income tax expense | (444) | |||||||||||||
Net income | 40,909 | |||||||||||||
Preferred dividend requirements | (6,033) | |||||||||||||
Net income available to common shareholders of EPR Properties | $ | 34,876 |
Operating Data: | ||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||
Experiential | Education | Corporate/Unallocated | Consolidated | |||||||||||
Rental revenue | $ | 284,121 | $ | 19,340 | $ | — | $ | 303,461 | ||||||
Other income | 18,933 | 1 | 523 | 19,457 | ||||||||||
Mortgage and other financing income | 20,943 | 442 | — | 21,385 | ||||||||||
Total revenue | 323,997 | 19,783 | 523 | 344,303 | ||||||||||
Property operating expense | 27,921 | — | 206 | 28,127 | ||||||||||
Other expense | 18,111 | — | — | 18,111 | ||||||||||
Total investment expenses | 46,032 | — | 206 | 46,238 | ||||||||||
Net operating income - before unallocated items | 277,965 | 19,783 | 317 | 298,065 | ||||||||||
Reconciliation to Consolidated Statements of Income and Comprehensive Income: | ||||||||||||||
General and administrative expense | (29,213) | |||||||||||||
Severance expense | (547) | |||||||||||||
Transaction costs | (306) | |||||||||||||
Credit loss expense | (312) | |||||||||||||
Impairment charges | (43,785) | |||||||||||||
Depreciation and amortization | (84,909) | |||||||||||||
Loss on sale of real estate | (1,135) | |||||||||||||
Interest expense, net | (63,313) | |||||||||||||
Equity in loss from joint ventures | (2,600) | |||||||||||||
Income tax expense | (688) | |||||||||||||
Net income | 71,257 | |||||||||||||
Preferred dividend requirements | (12,073) | |||||||||||||
Net income available to common shareholders of EPR Properties | $ | 59,184 |
Operating Data: | ||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||
Experiential | Education | Corporate/Unallocated | Consolidated | |||||||||||
Rental revenue | $ | 262,034 | $ | 20,444 | $ | — | $ | 282,478 | ||||||
Other income | 16,895 | — | 2,371 | 19,266 | ||||||||||
Mortgage and other financing income | 15,716 | 458 | — | 16,174 | ||||||||||
Total revenue | 294,645 | 20,902 | 2,371 | 317,918 | ||||||||||
Property operating expense | 27,051 | (7) | 487 | 27,531 | ||||||||||
Other expense | 16,969 | — | — | 16,969 | ||||||||||
Total investment expenses | 44,020 | (7) | 487 | 44,500 | ||||||||||
Net operating income - before unallocated items | 250,625 | 20,909 | 1,884 | 273,418 | ||||||||||
Reconciliation to Consolidated Statements of Income and Comprehensive Income: | ||||||||||||||
General and administrative expense | (25,915) | |||||||||||||
Transaction costs | (3,392) | |||||||||||||
Credit loss expense | (9,206) | |||||||||||||
Impairment charges | (4,351) | |||||||||||||
Depreciation and amortization | (80,810) | |||||||||||||
Interest expense, net | (66,549) | |||||||||||||
Equity in income from joint ventures | 1,315 | |||||||||||||
Impairment charges on joint ventures | (647) | |||||||||||||
Income tax expense | (762) | |||||||||||||
Net income | 83,101 | |||||||||||||
Preferred dividend requirements | (12,066) | |||||||||||||
Net income available to common shareholders of EPR Properties | $ | 71,035 |
Balance Sheet Data: | |||||||||||||||||||
As of September 30, 2017 | |||||||||||||||||||
Entertainment | Education | Recreation | Other | Corporate/Unallocated | Consolidated | ||||||||||||||
Total Assets | $ | 2,343,778 | $ | 1,489,459 | $ | 2,057,172 | $ | 193,766 | $ | 48,835 | $ | 6,133,010 | |||||||
As of December 31, 2016 | |||||||||||||||||||
Entertainment | Education | Recreation | Other | Corporate/Unallocated | Consolidated | ||||||||||||||
Total Assets | $ | 2,168,669 | $ | 1,308,288 | $ | 1,120,498 | $ | 202,394 | $ | 65,173 | $ | 4,865,022 |
Operating Data: | |||||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||
Entertainment | Education | Recreation | Other | Corporate/Unallocated | Consolidated | ||||||||||||||
Rental revenue | $ | 66,888 | $ | 21,478 | $ | 32,171 | $ | 2,290 | $ | — | $ | 122,827 | |||||||
Tenant reimbursements | 3,733 | 1 | — | — | — | 3,734 | |||||||||||||
Other income | 2 | — | — | — | 520 | 522 | |||||||||||||
Mortgage and other financing income | 1,151 | 9,023 | 14,140 | — | — | 24,314 | |||||||||||||
Total revenue | 71,774 | 30,502 | 46,311 | 2,290 | 520 | 151,397 | |||||||||||||
Property operating expense | 5,680 | 119 | 29 | 327 | 185 | 6,340 | |||||||||||||
Total investment expenses | 5,680 | 119 | 29 | 327 | 185 | 6,340 | |||||||||||||
Net operating income - before unallocated items | 66,094 | 30,383 | 46,282 | 1,963 | 335 | 145,057 | |||||||||||||
Reconciliation to Consolidated Statements of Income: | |||||||||||||||||||
General and administrative expense | (12,070 | ) | |||||||||||||||||
Costs associated with loan refinancing or payoff | (1,477 | ) | |||||||||||||||||
Interest expense, net | (34,194 | ) | |||||||||||||||||
Transaction costs | (113 | ) | |||||||||||||||||
Depreciation and amortization | (34,694 | ) | |||||||||||||||||
Equity in income from joint ventures | 35 | ||||||||||||||||||
Gain on sale of real estate | 997 | ||||||||||||||||||
Income tax expense | (587 | ) | |||||||||||||||||
Net income | 62,954 | ||||||||||||||||||
Preferred dividend requirements | (5,951 | ) | |||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 57,003 |
Operating Data: | |||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||
Entertainment | Education | Recreation | Other | Corporate/Unallocated | Consolidated | ||||||||||||||
Rental revenue | $ | 64,134 | $ | 19,900 | $ | 15,958 | $ | 2,290 | $ | — | $ | 102,282 | |||||||
Tenant reimbursements | 3,816 | 5 | — | — | — | 3,821 | |||||||||||||
Other income | 8 | — | 1,825 | — | 643 | 2,476 | |||||||||||||
Mortgage and other financing income | 1,294 | 7,319 | 8,384 | 34 | — | 17,031 | |||||||||||||
Total revenue | 69,252 | 27,224 | 26,167 | 2,324 | 643 | 125,610 | |||||||||||||
Property operating expense | 5,228 | — | — | 233 | 165 | 5,626 | |||||||||||||
Total investment expenses | 5,228 | — | — | 233 | 165 | 5,626 | |||||||||||||
Net operating income - before unallocated items | 64,024 | 27,224 | 26,167 | 2,091 | 478 | 119,984 | |||||||||||||
Reconciliation to Consolidated Statements of Income: | |||||||||||||||||||
General and administrative expense | (9,091 | ) | |||||||||||||||||
Costs associated with loan refinancing or payoff | (14 | ) | |||||||||||||||||
Interest expense, net | (24,265 | ) | |||||||||||||||||
Transaction costs | (2,947 | ) | |||||||||||||||||
Depreciation and amortization | (27,601 | ) | |||||||||||||||||
Equity in income from joint ventures | 203 | ||||||||||||||||||
Gain on sale of real estate | 1,615 | ||||||||||||||||||
Income tax expense | (358 | ) | |||||||||||||||||
Net income | 57,526 | ||||||||||||||||||
Preferred dividend requirements | (5,951 | ) | |||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 51,575 |
Operating Data: | |||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||
Entertainment | Education | Recreation | Other | Corporate/Unallocated | Consolidated | ||||||||||||||
Rental revenue | $ | 197,441 | $ | 66,168 | $ | 78,854 | $ | 6,870 | $ | — | $ | 349,333 | |||||||
Tenant reimbursements | 11,423 | 1 | — | — | — | 11,424 | |||||||||||||
Other income | 614 | 1 | — | — | 1,903 | 2,518 | |||||||||||||
Mortgage and other financing income | 3,426 | 26,440 | 35,150 | — | — | 65,016 | |||||||||||||
Total revenue | 212,904 | 92,610 | 114,004 | 6,870 | 1,903 | 428,291 | |||||||||||||
Property operating expense | 17,060 | 151 | 86 | 1,020 | 445 | 18,762 | |||||||||||||
Total investment expenses | 17,060 | 151 | 86 | 1,020 | 445 | 18,762 | |||||||||||||
Net operating income - before unallocated items | 195,844 | 92,459 | 113,918 | 5,850 | 1,458 | 409,529 | |||||||||||||
Reconciliation to Consolidated Statements of Income: | |||||||||||||||||||
General and administrative expense | (33,787 | ) | |||||||||||||||||
Costs associated with loan refinancing or payoff | (1,491 | ) | |||||||||||||||||
Gain on early extinguishment of debt | 977 | ||||||||||||||||||
Interest expense, net | (97,853 | ) | |||||||||||||||||
Transaction costs | (388 | ) | |||||||||||||||||
Impairment charges | (10,195 | ) | |||||||||||||||||
Depreciation and amortization | (95,919 | ) | |||||||||||||||||
Equity in income from joint ventures | 86 | ||||||||||||||||||
Gain on sale of real estate | 28,462 | ||||||||||||||||||
Income tax expense | (2,016 | ) | |||||||||||||||||
Net income | 197,405 | ||||||||||||||||||
Preferred dividend requirements | (17,855 | ) | |||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 179,550 |
Operating Data: | |||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||
Entertainment | Education | Recreation | Other | Corporate/Unallocated | Consolidated | ||||||||||||||
Rental revenue | $ | 185,530 | $ | 54,797 | $ | 45,443 | $ | 6,345 | $ | — | $ | 292,115 | |||||||
Tenant reimbursements | 11,570 | 7 | — | — | — | 11,577 | |||||||||||||
Other income | 222 | — | 3,635 | — | 1,955 | 5,812 | |||||||||||||
Mortgage and other financing income | 4,927 | 25,228 | 22,650 | 102 | — | 52,907 | |||||||||||||
Total revenue | 202,249 | 80,032 | 71,728 | 6,447 | 1,955 | 362,411 | |||||||||||||
Property operating expense | 15,815 | — | 8 | 419 | 445 | 16,687 | |||||||||||||
Other expense | — | — | — | 5 | — | 5 | |||||||||||||
Total investment expenses | 15,815 | — | 8 | 424 | 445 | 16,692 | |||||||||||||
Net operating income - before unallocated items | 186,434 | 80,032 | 71,720 | 6,023 | 1,510 | 345,719 | |||||||||||||
Reconciliation to Consolidated Statements of Income: | |||||||||||||||||||
General and administrative expense | (27,309 | ) | |||||||||||||||||
Costs associated with loan refinancing or payoff | (905 | ) | |||||||||||||||||
Interest expense, net | (70,310 | ) | |||||||||||||||||
Transaction costs | (4,881 | ) | |||||||||||||||||
Depreciation and amortization | (79,222 | ) | |||||||||||||||||
Equity in income from joint ventures | 501 | ||||||||||||||||||
Gain on sale of real estate | 3,885 | ||||||||||||||||||
Income tax expense | (637 | ) | |||||||||||||||||
Net income | 166,841 | ||||||||||||||||||
Preferred dividend requirements | (17,855 | ) | |||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 148,986 |
Condensed Consolidating Balance Sheet As of September 30, 2017 | |||||||||||||||||||
EPR Properties (Issuer) | Wholly Owned Subsidiary Guarantors | Non- Guarantor Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Rental properties, net | $ | — | $ | 3,640,225 | $ | 895,769 | $ | — | $ | 4,535,994 | |||||||||
Land held for development | — | 12,402 | 21,272 | — | 33,674 | ||||||||||||||
Property under development | — | 236,916 | 47,295 | — | 284,211 | ||||||||||||||
Mortgage notes and related accrued interest receivable | — | 963,738 | 8,633 | — | 972,371 | ||||||||||||||
Investment in a direct financing lease, net | — | 57,698 | — | — | 57,698 | ||||||||||||||
Investment in joint ventures | — | — | 5,616 | — | 5,616 | ||||||||||||||
Cash and cash equivalents | 8,788 | 1,472 | 1,152 | — | 11,412 | ||||||||||||||
Restricted cash | 395 | 23,599 | 329 | — | 24,323 | ||||||||||||||
Accounts receivable, net | 675 | 89,230 | 9,308 | — | 99,213 | ||||||||||||||
Intercompany notes receivable | — | 179,589 | — | (179,589 | ) | — | |||||||||||||
Investments in subsidiaries | 5,892,529 | — | — | (5,892,529 | ) | — | |||||||||||||
Other assets | 26,485 | 32,417 | 49,596 | — | 108,498 | ||||||||||||||
Total assets | $ | 5,928,872 | $ | 5,237,286 | $ | 1,038,970 | $ | (6,072,118 | ) | $ | 6,133,010 | ||||||||
Liabilities and Equity | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 58,308 | $ | 65,910 | $ | 16,364 | $ | — | $ | 140,582 | |||||||||
Dividends payable | 30,997 | — | — | — | 30,997 | ||||||||||||||
Unearned rents and interest | — | 69,615 | 15,583 | — | 85,198 | ||||||||||||||
Intercompany notes payable | — | — | 179,589 | (179,589 | ) | — | |||||||||||||
Debt | 2,951,259 | — | 36,666 | — | 2,987,925 | ||||||||||||||
Total liabilities | 3,040,564 | 135,525 | 248,202 | (179,589 | ) | 3,244,702 | |||||||||||||
Total equity | 2,888,308 | 5,101,761 | 790,768 | (5,892,529 | ) | 2,888,308 | |||||||||||||
Total liabilities and equity | $ | 5,928,872 | $ | 5,237,286 | $ | 1,038,970 | $ | (6,072,118 | ) | $ | 6,133,010 |
Condensed Consolidating Balance Sheet As of December 31, 2016 | |||||||||||||||||||
EPR Properties (Issuer) | Wholly Owned Subsidiary Guarantors | Non- Guarantor Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Rental properties, net | $ | — | $ | 3,164,622 | $ | 431,140 | $ | — | $ | 3,595,762 | |||||||||
Land held for development | — | 1,258 | 21,272 | — | 22,530 | ||||||||||||||
Property under development | 1,010 | 247,239 | 48,861 | — | 297,110 | ||||||||||||||
Mortgage notes and related accrued interest receivable | — | 612,141 | 1,837 | — | 613,978 | ||||||||||||||
Investment in a direct financing lease, net | — | 102,698 | — | — | 102,698 | ||||||||||||||
Investment in joint ventures | — | — | 5,972 | — | 5,972 | ||||||||||||||
Cash and cash equivalents | 16,586 | 1,157 | 1,592 | — | 19,335 | ||||||||||||||
Restricted cash | 365 | 8,352 | 1,027 | — | 9,744 | ||||||||||||||
Accounts receivable, net | 556 | 89,145 | 9,238 | — | 98,939 | ||||||||||||||
Intercompany notes receivable | — | 179,589 | — | (179,589 | ) | — | |||||||||||||
Investments in subsidiaries | 4,521,095 | — | — | (4,521,095 | ) | — | |||||||||||||
Other assets | 21,768 | 23,068 | 54,118 | — | 98,954 | ||||||||||||||
Total assets | $ | 4,561,380 | $ | 4,429,269 | $ | 575,057 | $ | (4,700,684 | ) | $ | 4,865,022 | ||||||||
Liabilities and Equity | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 63,431 | $ | 52,061 | $ | 4,266 | $ | — | $ | 119,758 | |||||||||
Dividends payable | 26,318 | — | — | — | 26,318 | ||||||||||||||
Unearned rents and interest | — | 46,647 | 773 | — | 47,420 | ||||||||||||||
Intercompany notes payable | — | — | 179,589 | (179,589 | ) | — | |||||||||||||
Debt | 2,285,730 | — | 199,895 | — | 2,485,625 | ||||||||||||||
Total liabilities | 2,375,479 | 98,708 | 384,523 | (179,589 | ) | 2,679,121 | |||||||||||||
Total equity | 2,185,901 | 4,330,561 | 190,534 | (4,521,095 | ) | 2,185,901 | |||||||||||||
Total liabilities and equity | $ | 4,561,380 | $ | 4,429,269 | $ | 575,057 | $ | (4,700,684 | ) | $ | 4,865,022 |
Condensed Consolidating Statement of Income Three Months Ended September 30, 2017 | |||||||||||||||||||
EPR Properties (Issuer) | Wholly Owned Subsidiary Guarantors | Non- Guarantor Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
Rental revenue | $ | — | $ | 97,398 | $ | 25,429 | $ | — | $ | 122,827 | |||||||||
Tenant reimbursements | — | 1,274 | 2,460 | — | 3,734 | ||||||||||||||
Other income | — | 1 | 521 | — | 522 | ||||||||||||||
Mortgage and other financing income | 232 | 23,960 | 122 | — | 24,314 | ||||||||||||||
Intercompany fee income | 732 | — | — | (732 | ) | — | |||||||||||||
Interest income on intercompany notes receivable | — | 2,580 | — | (2,580 | ) | — | |||||||||||||
Total revenue | 964 | 125,213 | 28,532 | (3,312 | ) | 151,397 | |||||||||||||
Equity in subsidiaries’ earnings | 100,527 | — | — | (100,527 | ) | — | |||||||||||||
Property operating expense | — | 3,434 | 2,906 | — | 6,340 | ||||||||||||||
Intercompany fee expense | — | — | 732 | (732 | ) | — | |||||||||||||
General and administrative expense | — | 9,830 | 2,240 | — | 12,070 | ||||||||||||||
Costs associated with loan refinancing or payoff | 1,474 | — | 3 | — | 1,477 | ||||||||||||||
Interest expense, net | 36,364 | (2,368 | ) | 198 | — | 34,194 | |||||||||||||
Interest expense on intercompany notes payable | — | — | 2,580 | (2,580 | ) | — | |||||||||||||
Transaction costs | 113 | — | — | — | 113 | ||||||||||||||
Depreciation and amortization | 232 | 26,633 | 7,829 | — | 34,694 | ||||||||||||||
Income before equity in income from joint ventures and other items | 63,308 | 87,684 | 12,044 | (100,527 | ) | 62,509 | |||||||||||||
Equity in income from joint ventures | — | — | 35 | — | 35 | ||||||||||||||
Gain on sale of real estate | — | 997 | — | — | 997 | ||||||||||||||
Income before income taxes | 63,308 | 88,681 | 12,079 | (100,527 | ) | 63,541 | |||||||||||||
Income tax expense | (354 | ) | — | (233 | ) | — | (587 | ) | |||||||||||
Net income | 62,954 | 88,681 | 11,846 | (100,527 | ) | 62,954 | |||||||||||||
Preferred dividend requirements | (5,951 | ) | — | — | — | (5,951 | ) | ||||||||||||
Net income available to common shareholders of EPR Properties | $ | 57,003 | $ | 88,681 | $ | 11,846 | $ | (100,527 | ) | $ | 57,003 | ||||||||
Comprehensive income | $ | 64,175 | $ | 88,681 | $ | 12,694 | $ | (101,375 | ) | $ | 64,175 |
Condensed Consolidating Statement of Income Three Months Ended September 30, 2016 | |||||||||||||||||||
EPR Properties (Issuer) | Wholly Owned Subsidiary Guarantors | Non- Guarantor Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
Rental revenue | $ | — | $ | 89,178 | $ | 13,104 | $ | — | $ | 102,282 | |||||||||
Tenant reimbursements | — | 1,338 | 2,483 | — | 3,821 | ||||||||||||||
Other income | — | 1,829 | 647 | — | 2,476 | ||||||||||||||
Mortgage and other financing income | 286 | 16,692 | 53 | — | 17,031 | ||||||||||||||
Intercompany fee income | 677 | — | — | (677 | ) | — | |||||||||||||
Interest income on intercompany notes receivable | — | 2,460 | — | (2,460 | ) | — | |||||||||||||
Total revenue | 963 | 111,497 | 16,287 | (3,137 | ) | 125,610 | |||||||||||||
Equity in subsidiaries’ earnings | 84,755 | — | — | (84,755 | ) | — | |||||||||||||
Property operating expense | — | 2,916 | 2,710 | — | 5,626 | ||||||||||||||
Intercompany fee expense | — | — | 677 | (677 | ) | — | |||||||||||||
General and administrative expense | — | 7,927 | 1,164 | — | 9,091 | ||||||||||||||
Costs associated with loan refinancing or payoff | — | 14 | — | — | 14 | ||||||||||||||
Interest expense, net | 24,414 | (2,395 | ) | 2,246 | — | 24,265 | |||||||||||||
Interest expense on intercompany notes payable | — | — | 2,460 | (2,460 | ) | — | |||||||||||||
Transaction costs | 2,947 | — | — | — | 2,947 | ||||||||||||||
Depreciation and amortization | 449 | 23,768 | 3,384 | — | 27,601 | ||||||||||||||
Income before equity in income from joint ventures and other items | 57,908 | 79,267 | 3,646 | (84,755 | ) | 56,066 | |||||||||||||
Equity in income from joint ventures | — | — | 203 | — | 203 | ||||||||||||||
Gain on sale of real estate | — | 1,615 | — | — | 1,615 | ||||||||||||||
Income before income taxes | 57,908 | 80,882 | 3,849 | (84,755 | ) | 57,884 | |||||||||||||
Income tax (expense) benefit | (382 | ) | — | 24 | — | (358 | ) | ||||||||||||
Income from continuing operations | 57,526 | 80,882 | 3,873 | (84,755 | ) | 57,526 | |||||||||||||
Net income | 57,526 | 80,882 | 3,873 | (84,755 | ) | 57,526 | |||||||||||||
Preferred dividend requirements | (5,951 | ) | — | — | — | (5,951 | ) | ||||||||||||
Net income available to common shareholders of EPR Properties | $ | 51,575 | $ | 80,882 | $ | 3,873 | $ | (84,755 | ) | $ | 51,575 | ||||||||
Comprehensive income | $ | 58,739 | $ | 80,882 | $ | 2,440 | $ | (83,322 | ) | $ | 58,739 |
EPR Properties (Issuer) | Wholly Owned Subsidiary Guarantors | Non- Guarantor Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
Rental revenue | $ | — | $ | 285,977 | $ | 63,356 | $ | — | $ | 349,333 | |||||||||
Tenant reimbursements | — | 3,955 | 7,469 | — | 11,424 | ||||||||||||||
Other income | — | 614 | 1,904 | — | 2,518 | ||||||||||||||
Mortgage and other financing income | 696 | 64,103 | 217 | — | 65,016 | ||||||||||||||
Intercompany fee income | 2,094 | — | — | (2,094 | ) | — | |||||||||||||
Interest income on intercompany notes receivable | — | 7,435 | — | (7,435 | ) | — | |||||||||||||
Total revenue | 2,790 | 362,084 | 72,946 | (9,529 | ) | 428,291 | |||||||||||||
Equity in subsidiaries’ earnings | 300,631 | — | — | (300,631 | ) | — | |||||||||||||
Property operating expense | — | 9,756 | 9,006 | — | 18,762 | ||||||||||||||
Intercompany fee expense | — | — | 2,094 | (2,094 | ) | — | |||||||||||||
General and administrative expense | — | 28,112 | 5,675 | — | 33,787 | ||||||||||||||
Costs associated with loan refinancing or payoff | 1,474 | — | 17 | — | 1,491 | ||||||||||||||
Gain on early extinguishment of debt | — | — | (977 | ) | — | (977 | ) | ||||||||||||
Interest expense, net | 102,424 | (7,482 | ) | 2,911 | — | 97,853 | |||||||||||||
Interest expense on intercompany notes payable | — | — | 7,435 | (7,435 | ) | — | |||||||||||||
Transaction costs | 388 | — | — | — | 388 | ||||||||||||||
Impairment charges | — | 10,195 | — | — | 10,195 | ||||||||||||||
Depreciation and amortization | 662 | 76,594 | 18,663 | — | 95,919 | ||||||||||||||
Income before equity in income from joint ventures and other items | 198,473 | 244,909 | 28,122 | (300,631 | ) | 170,873 | |||||||||||||
Equity in income from joint ventures | — | — | 86 | — | 86 | ||||||||||||||
Gain on sale of real estate | — | 27,344 | 1,118 | — | 28,462 | ||||||||||||||
Income before income taxes | 198,473 | 272,253 | 29,326 | (300,631 | ) | 199,421 | |||||||||||||
Income tax expense | (1,068 | ) | — | (948 | ) | — | (2,016 | ) | |||||||||||
Net income | 197,405 | 272,253 | 28,378 | (300,631 | ) | 197,405 | |||||||||||||
Preferred dividend requirements | (17,855 | ) | — | — | — | (17,855 | ) | ||||||||||||
Net income available to common shareholders of EPR Properties | $ | 179,550 | $ | 272,253 | $ | 28,378 | $ | (300,631 | ) | $ | 179,550 | ||||||||
Comprehensive income | $ | 200,590 | $ | 272,253 | $ | 28,998 | $ | (301,251 | ) | $ | 200,590 |
EPR Properties (Issuer) | Wholly Owned Subsidiary Guarantors | Non- Guarantor Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
Rental revenue | $ | — | $ | 251,900 | $ | 40,215 | $ | — | $ | 292,115 | |||||||||
Tenant reimbursements | — | 4,059 | 7,518 | — | 11,577 | ||||||||||||||
Other income | — | 3,648 | 2,164 | — | 5,812 | ||||||||||||||
Mortgage and other financing income | 710 | 48,370 | 3,827 | — | 52,907 | ||||||||||||||
Intercompany fee income | 2,018 | — | — | (2,018 | ) | — | |||||||||||||
Interest income on intercompany notes receivable | — | 7,297 | — | (7,297 | ) | — | |||||||||||||
Total revenue | 2,728 | 315,274 | 53,724 | (9,315 | ) | 362,411 | |||||||||||||
Equity in subsidiaries’ earnings | 240,420 | — | — | (240,420 | ) | — | |||||||||||||
Property operating expense | — | 8,135 | 8,552 | — | 16,687 | ||||||||||||||
Intercompany fee expense | — | — | 2,018 | (2,018 | ) | — | |||||||||||||
Other expense | — | — | 5 | — | 5 | ||||||||||||||
General and administrative expense | — | 23,318 | 3,991 | — | 27,309 | ||||||||||||||
Costs associated with loan refinancing or payoff | — | 353 | 552 | — | 905 | ||||||||||||||
Interest expense, net | 69,042 | (5,596 | ) | 6,864 | — | 70,310 | |||||||||||||
Interest expense on intercompany notes payable | — | — | 7,297 | (7,297 | ) | — | |||||||||||||
Transaction costs | 4,778 | — | 103 | — | 4,881 | ||||||||||||||
Depreciation and amortization | 1,338 | 67,516 | 10,368 | — | 79,222 | ||||||||||||||
Income before equity in income from joint ventures and other items | 167,990 | 221,548 | 13,974 | (240,420 | ) | 163,092 | |||||||||||||
Equity in income from joint ventures | — | — | 501 | — | 501 | ||||||||||||||
Gain on sale of real estate | — | 3,885 | — | — | 3,885 | ||||||||||||||
Income before income taxes | 167,990 | 225,433 | 14,475 | (240,420 | ) | 167,478 | |||||||||||||
Income tax (expense) benefit | (1,149 | ) | — | 512 | — | (637 | ) | ||||||||||||
Net income | 166,841 | 225,433 | 14,987 | (240,420 | ) | 166,841 | |||||||||||||
Preferred dividend requirements | (17,855 | ) | — | — | — | (17,855 | ) | ||||||||||||
Net income available to common shareholders of EPR Properties | $ | 148,986 | $ | 225,433 | $ | 14,987 | $ | (240,420 | ) | $ | 148,986 | ||||||||
Comprehensive income | $ | 165,917 | $ | 225,433 | $ | 15,391 | $ | (240,824 | ) | $ | 165,917 |
Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 | |||||||||||||||
EPR Properties (Issuer) | Wholly Owned Subsidiary Guarantors | Non-Guarantor Subsidiaries | Consolidated | ||||||||||||
Intercompany fee income (expense) | $ | 2,094 | $ | — | $ | (2,094 | ) | $ | — | ||||||
Interest income (expense) on intercompany receivable/payable | — | 7,435 | (7,435 | ) | — | ||||||||||
Net cash (used) provided by other operating activities | (95,174 | ) | 332,846 | 62,636 | 300,308 | ||||||||||
Net cash (used) provided by operating activities | (93,080 | ) | 340,281 | 53,107 | 300,308 | ||||||||||
Investing activities: | |||||||||||||||
Acquisition of rental properties and other assets | (1,012 | ) | (297,658 | ) | (55,607 | ) | (354,277 | ) | |||||||
Proceeds from sale of real estate | 203 | 107,022 | 29,242 | 136,467 | |||||||||||
Investment in mortgage notes receivable | — | (123,060 | ) | (7,016 | ) | (130,076 | ) | ||||||||
Proceeds from mortgage note receivable paydown | — | 16,608 | — | 16,608 | |||||||||||
Investment in promissory notes receivable | — | (1,868 | ) | — | (1,868 | ) | |||||||||
Proceeds from promissory notes receivable paydown | — | 1,599 | — | 1,599 | |||||||||||
Proceeds from insurance recovery | — | 579 | — | 579 | |||||||||||
Additions to property under development | (725 | ) | (289,810 | ) | (13,549 | ) | (304,084 | ) | |||||||
Advances to subsidiaries, net | (402,145 | ) | 246,622 | 155,523 | — | ||||||||||
Net cash (used) provided by investing activities | (403,679 | ) | (339,966 | ) | 108,593 | (635,052 | ) | ||||||||
Financing activities: | |||||||||||||||
Proceeds from debt facilities and senior unsecured notes | 1,175,000 | — | — | 1,175,000 | |||||||||||
Principal payments on debt | (505,000 | ) | — | (162,091 | ) | (667,091 | ) | ||||||||
Deferred financing fees paid | (14,001 | ) | — | (206 | ) | (14,207 | ) | ||||||||
Costs associated with loan refinancing or payoff (cash portion) | — | — | (7 | ) | (7 | ) | |||||||||
Net proceeds from issuance of common shares | 68,552 | — | — | 68,552 | |||||||||||
Purchase of common shares for treasury for vesting | (6,729 | ) | — | — | (6,729 | ) | |||||||||
Dividends paid to shareholders | (228,861 | ) | — | — | (228,861 | ) | |||||||||
Net cash provided (used) by financing activities | 488,961 | — | (162,304 | ) | 326,657 | ||||||||||
Effect of exchange rate changes on cash | — | — | 164 | 164 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (7,798 | ) | 315 | (440 | ) | (7,923 | ) | ||||||||
Cash and cash equivalents at beginning of the period | 16,586 | 1,157 | 1,592 | 19,335 | |||||||||||
Cash and cash equivalents at end of the period | $ | 8,788 | $ | 1,472 | $ | 1,152 | $ | 11,412 |
Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 | |||||||||||||||
EPR Properties (Issuer) | Wholly Owned Subsidiary Guarantors | Non-Guarantor Subsidiaries | Consolidated | ||||||||||||
Intercompany fee income (expense) | $ | 2,018 | $ | — | $ | (2,018 | ) | $ | — | ||||||
Interest income (expense) on intercompany receivable/payable | — | 7,297 | (7,297 | ) | — | ||||||||||
Net cash (used) provided by other operating activities | (74,550 | ) | 254,721 | 35,602 | 215,773 | ||||||||||
Net cash (used) provided by operating activities | (72,532 | ) | 262,018 | 26,287 | 215,773 | ||||||||||
Investing activities: | |||||||||||||||
Acquisition of rental properties and other assets | (180 | ) | (175,075 | ) | (2,107 | ) | (177,362 | ) | |||||||
Proceeds from sale of real estate | — | 19,175 | 1,476 | 20,651 | |||||||||||
Investment in mortgage note receivable | — | (80,786 | ) | — | (80,786 | ) | |||||||||
Proceeds from mortgage note receivable paydown | — | 44,556 | 19,320 | 63,876 | |||||||||||
Investment in promissory notes receivable | — | (66 | ) | — | (66 | ) | |||||||||
Proceeds from sale of infrastructure related to issuance of revenue bonds | — | 43,462 | — | 43,462 | |||||||||||
Proceeds from insurance recovery | — | 2,635 | 401 | 3,036 | |||||||||||
Proceeds from sale of investments in a direct financing lease, net | — | 825 | — | 825 | |||||||||||
Additions to property under development | (181 | ) | (282,554 | ) | (6,152 | ) | (288,887 | ) | |||||||
Investment in (repayment of) intercompany notes payable | — | (2,063 | ) | 2,063 | — | ||||||||||
Advances to subsidiaries, net | (203,471 | ) | 231,048 | (27,577 | ) | — | |||||||||
Net cash used by investing activities | (203,832 | ) | (198,843 | ) | (12,576 | ) | (415,251 | ) | |||||||
Financing activities: | |||||||||||||||
Proceeds from debt facilities | 840,000 | — | 14,360 | 854,360 | |||||||||||
Principal payments on debt | (496,000 | ) | (63,727 | ) | (27,382 | ) | (587,109 | ) | |||||||
Deferred financing fees paid | (3,020 | ) | — | (27 | ) | (3,047 | ) | ||||||||
Costs associated with loan refinancing or payoff (cash portion) | — | — | (482 | ) | (482 | ) | |||||||||
Net proceeds from issuance of common shares | 142,452 | — | — | 142,452 | |||||||||||
Impact of stock option exercises, net | (717 | ) | — | — | (717 | ) | |||||||||
Purchase of common shares for treasury for vesting | (4,211 | ) | — | — | (4,211 | ) | |||||||||
Dividends paid to shareholders | (198,678 | ) | — | — | (198,678 | ) | |||||||||
Net cash provided (used) by financing activities | 279,826 | (63,727 | ) | (13,531 | ) | 202,568 | |||||||||
Effect of exchange rate changes on cash | — | — | (62 | ) | (62 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 3,462 | (552 | ) | 118 | 3,028 | ||||||||||
Cash and cash equivalents at beginning of the period | 1,089 | 1,289 | 1,905 | 4,283 | |||||||||||
Cash and cash equivalents at end of the period | $ | 4,551 | $ | 737 | $ | 2,023 | $ | 7,311 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||
Total revenue | $ | 172.9 | $ | 160.4 | 8 | % | $ | 344.3 | $ | 317.9 | 8 | % | |||||||||||
Net income available to common shareholders per diluted share | $ | 0.10 | $ | 0.46 | (78) | % | $ | 0.78 | $ | 0.95 | (18) | % | |||||||||||
FFOAA per diluted share | $ | 1.28 | $ | 1.17 | 9 | % | $ | 2.53 | $ | 2.27 | 11 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2017 | 2016 | Increase | 2017 | 2016 | Increase | ||||||||||||
Total revenue (1) | $ | 151.4 | $ | 125.6 | 21 | % | $ | 428.3 | $ | 362.4 | 18 | % | |||||
Net income available to common shareholders per diluted share (2) | 0.77 | 0.81 | -5 | % | 2.55 | 2.35 | 9 | % | |||||||||
FFOAA per diluted share (3) | 1.26 | 1.23 | 2 | % | 3.73 | 3.56 | 5 | % |
Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Operating Segment | Total Investment Spending | New Development | Re-development | Asset Acquisition | Mortgage Notes or Notes Receivable | Investment in Joint Ventures | |||||||||||||||||
Experiential: | |||||||||||||||||||||||
Eat & Play | $ | 19,134 | $ | 18,607 | $ | 527 | $ | — | $ | — | $ | — | |||||||||||
Attractions | 6,570 | — | 3,552 | — | 3,018 | — | |||||||||||||||||
Ski | 3,022 | — | — | — | 3,022 | — | |||||||||||||||||
Experiential Lodging | 8,936 | — | — | — | — | 8,936 | |||||||||||||||||
Fitness & Wellness | 58,060 | 11,055 | 210 | 43,770 | 3,025 | — | |||||||||||||||||
Cultural | 2,962 | — | 2,962 | — | — | — | |||||||||||||||||
Total Experiential | 98,684 | 29,662 | 7,251 | 43,770 | 9,065 | 8,936 | |||||||||||||||||
Education: | |||||||||||||||||||||||
Total Education | — | — | — | — | — | — | |||||||||||||||||
Total Investment Spending | $ | 98,684 | $ | 29,662 | $ | 7,251 | $ | 43,770 | $ | 9,065 | $ | 8,936 | |||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Operating Segment | Total Investment Spending | New Development | Re-development | Asset Acquisition | Mortgage Notes or Notes Receivable | |||||||||||||||
Entertainment | $ | 264,889 | $ | 48,180 | $ | 55,549 | $ | 154,144 | $ | 7,016 | ||||||||||
Education | 238,667 | 104,842 | — | 38,293 | 95,532 | |||||||||||||||
Recreation | 951,574 | 146,530 | 585 | 531,638 | 272,821 | |||||||||||||||
Other | 1,002 | 1,002 | — | — | — | |||||||||||||||
Total Investment Spending | $ | 1,456,132 | $ | 300,554 | $ | 56,134 | $ | 724,075 | $ | 375,369 | ||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Operating Segment | Total Investment Spending | New Development | Re-development | Asset Acquisition | Mortgage Notes or Notes Receivable | |||||||||||||||
Entertainment | $ | 198,228 | $ | 24,512 | $ | 25,710 | $ | 126,006 | $ | 22,000 | ||||||||||
Education | 187,305 | 167,747 | — | 8,379 | 11,179 | |||||||||||||||
Recreation | 140,017 | 90,505 | 1,836 | — | 47,676 | |||||||||||||||
Other | 1,313 | 1,313 | — | — | — | |||||||||||||||
Total Investment Spending | $ | 526,863 | $ | 284,077 | $ | 27,546 | $ | 134,385 | $ | 80,855 |
Six Months Ended June 30, 2022 | |||||||||||||||||||||||
Operating Segment | Total Investment Spending | New Development | Re-development | Asset Acquisition | Mortgage Notes or Notes Receivable | Investment in Joint Ventures | |||||||||||||||||
Experiential: | |||||||||||||||||||||||
Theatres | $ | 218 | $ | 5 | $ | 213 | $ | — | $ | — | $ | — | |||||||||||
Eat & Play | 8,626 | 8,494 | 132 | — | — | — | |||||||||||||||||
Attractions | 144,311 | — | 1,546 | 142,765 | — | — | |||||||||||||||||
Experiential Lodging | 65,880 | 3,359 | — | — | 11,305 | 51,216 | |||||||||||||||||
Fitness & Wellness | 20,181 | — | 323 | 19,858 | — | — | |||||||||||||||||
Cultural | 19 | — | 19 | — | — | — | |||||||||||||||||
Total Experiential | 239,235 | 11,858 | 2,233 | 162,623 | 11,305 | 51,216 | |||||||||||||||||
Education: | |||||||||||||||||||||||
Total Education | — | — | — | — | — | — | |||||||||||||||||
Total Investment Spending | $ | 239,235 | $ | 11,858 | $ | 2,233 | $ | 162,623 | $ | 11,305 | $ | 51,216 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||
Minimum rent (1) | $ | 143,352 | $ | 134,917 | $ | 8,435 | $ | 285,204 | $ | 265,192 | $ | 20,012 | |||||||||||||||||
Percentage rent (2) | 2,125 | 519 | 1,606 | 3,936 | 3,962 | (26) | |||||||||||||||||||||||
Straight-line rent | 1,149 | 1,733 | (584) | 3,254 | 2,328 | 926 | |||||||||||||||||||||||
Tenant reimbursements | 4,815 | 5,348 | (533) | 10,250 | 10,349 | (99) | |||||||||||||||||||||||
Other rental revenue | 429 | 358 | 71 | 817 | 647 | 170 | |||||||||||||||||||||||
Total Rental Revenue | $ | 151,870 | $ | 142,875 | $ | 8,995 | $ | 303,461 | $ | 282,478 | $ | 20,983 | |||||||||||||||||
Other income | 10,124 | 9,961 | 163 | 19,457 | 19,266 | 191 | |||||||||||||||||||||||
Mortgage and other financing income (3) | 10,913 | 7,610 | 3,303 | 21,385 | 16,174 | 5,211 | |||||||||||||||||||||||
Total revenue | $ | 172,907 | $ | 160,446 | $ | 12,461 | $ | 344,303 | $ | 317,918 | $ | 26,385 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||
Property operating expense | $ | 13,972 | $ | 13,592 | $ | 380 | $ | 28,127 | $ | 27,531 | $ | 596 | |||||||||||||||||
Other expense | 9,161 | 8,872 | 289 | 18,111 | 16,969 | 1,142 | |||||||||||||||||||||||
General and administrative expense (1) | 15,248 | 12,691 | 2,557 | 29,213 | 25,915 | 3,298 | |||||||||||||||||||||||
Severance expense | 547 | — | 547 | 547 | — | 547 | |||||||||||||||||||||||
Transaction costs (2) | 36 | 1,145 | (1,109) | 306 | 3,392 | (3,086) | |||||||||||||||||||||||
Credit loss (benefit) expense (3) | (275) | 9,512 | (9,787) | 312 | 9,206 | (8,894) | |||||||||||||||||||||||
Impairment charges (4) | 43,785 | — | 43,785 | 43,785 | 4,351 | 39,434 | |||||||||||||||||||||||
Depreciation and amortization (5) | 43,705 | 40,766 | 2,939 | 84,909 | 80,810 | 4,099 | |||||||||||||||||||||||
Loss on sale of real estate | (575) | — | (575) | (1,135) | — | (1,135) | |||||||||||||||||||||||
Interest expense, net (6) | 31,591 | 33,289 | (1,698) | 63,313 | 66,549 | (3,236) | |||||||||||||||||||||||
Equity in loss (income) from joint ventures (7) | 615 | (1,421) | 2,036 | 2,600 | (1,315) | 3,915 | |||||||||||||||||||||||
Impairment charges on joint ventures | — | 647 | (647) | — | 647 | (647) | |||||||||||||||||||||||
Income tax expense | 347 | 444 | (97) | 688 | 762 | (74) | |||||||||||||||||||||||
Preferred dividend requirements | 6,040 | 6,033 | 7 | 12,073 | 12,066 | 7 |
Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net cash provided by operating activities | $ | 220,888 | $ | 217,050 | ||||||||||
Net cash used by investing activities | (89,471) | (203,720) | ||||||||||||
Net cash used by financing activities | (139,687) | (134,191) | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
FFO: | |||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 7,560 | $ | 34,876 | $ | 59,184 | $ | 71,035 | |||||||||
Loss on sale of real estate | 575 | — | 1,135 | — | |||||||||||||
Impairment of real estate investments, net | 43,785 | — | 43,785 | 4,351 | |||||||||||||
Real estate depreciation and amortization | 43,494 | 40,563 | 84,494 | 80,390 | |||||||||||||
Allocated share of joint venture depreciation | 2,162 | 1,996 | 4,217 | 3,483 | |||||||||||||
Impairment charges on joint ventures | — | 647 | — | 647 | |||||||||||||
FFO available to common shareholders of EPR Properties | $ | 97,576 | $ | 78,082 | $ | 192,815 | $ | 159,906 | |||||||||
FFO available to common shareholders of EPR Properties | $ | 97,576 | $ | 78,082 | $ | 192,815 | $ | 159,906 | |||||||||
Add: Preferred dividends for Series C preferred shares | 1,938 | 1,938 | 3,876 | 3,876 | |||||||||||||
Add: Preferred dividends for Series E preferred shares | 1,938 | 1,939 | 3,876 | 3,878 | |||||||||||||
Diluted FFO available to common shareholders of EPR Properties | $ | 101,452 | $ | 81,959 | $ | 200,567 | $ | 167,660 | |||||||||
FFOAA: | |||||||||||||||||
FFO available to common shareholders of EPR Properties | $ | 97,576 | $ | 78,082 | $ | 192,815 | $ | 159,906 | |||||||||
Severance expense | 547 | — | 547 | — | |||||||||||||
Transaction costs | 36 | 1,145 | 306 | 3,392 | |||||||||||||
Credit loss (benefit) expense | (275) | 9,512 | 312 | 9,206 | |||||||||||||
Gain on insurance recovery (included in other income) | — | — | — | (552) | |||||||||||||
Deferred income tax benefit | (92) | — | (182) | — | |||||||||||||
FFOAA available to common shareholders of EPR Properties | $ | 97,792 | $ | 88,739 | $ | 193,798 | $ | 171,952 | |||||||||
FFOAA available to common shareholders of EPR Properties | $ | 97,792 | $ | 88,739 | $ | 193,798 | $ | 171,952 | |||||||||
Add: Preferred dividends for Series C preferred shares | 1,938 | 1,938 | 3,876 | 3,876 | |||||||||||||
Add: Preferred dividends for Series E preferred shares | 1,938 | 1,939 | 3,876 | 3,878 | |||||||||||||
Diluted FFOAA available to common shareholders of EPR Properties | $ | 101,668 | $ | 92,616 | $ | 201,550 | $ | 179,706 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
FFO: | |||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 57,003 | $ | 51,575 | $ | 179,550 | $ | 148,986 | |||||||
Gain on sale of real estate (excluding land sale) | (997 | ) | (549 | ) | (28,462 | ) | (2,819 | ) | |||||||
Real estate depreciation and amortization | 34,457 | 27,147 | 95,243 | 77,870 | |||||||||||
Allocated share of joint venture depreciation | 55 | 56 | 163 | 174 | |||||||||||
Impairment of direct financing lease - residual value portion (1) | — | — | 2,897 | — | |||||||||||
FFO available to common shareholders of EPR Properties | $ | 90,518 | $ | 78,229 | $ | 249,391 | $ | 224,211 | |||||||
FFO available to common shareholders of EPR Properties | $ | 90,518 | $ | 78,229 | $ | 249,391 | $ | 224,211 | |||||||
Add: Preferred dividends for Series C preferred shares | 1,941 | 1,941 | 5,823 | 5,823 | |||||||||||
Diluted FFO available to common shareholders of EPR Properties | $ | 92,459 | $ | 80,170 | $ | 255,214 | $ | 230,034 | |||||||
FFOAA: | |||||||||||||||
FFO available to common shareholders of EPR Properties | $ | 90,518 | $ | 78,229 | $ | 249,391 | $ | 224,211 | |||||||
Costs associated with loan refinancing or payoff | 1,477 | 14 | 1,491 | 905 | |||||||||||
Gain on insurance recovery (included in other income) | — | (1,825 | ) | (606 | ) | (3,837 | ) | ||||||||
Termination fee included in gain on sale | 954 | 549 | 6,774 | 2,819 | |||||||||||
Gain on early extinguishment of debt | — | — | (977 | ) | — | ||||||||||
Transaction costs | 113 | 2,947 | 388 | 4,881 | |||||||||||
Gain on sale of land | — | (1,066 | ) | — | (1,066 | ) | |||||||||
Deferred income tax expense (benefit) | 227 | (44 | ) | 911 | (664 | ) | |||||||||
Impairment of direct financing lease - allowance for lease loss portion (1) | — | — | 7,298 | — | |||||||||||
FFOAA available to common shareholders of EPR Properties | $ | 93,289 | $ | 78,804 | $ | 264,670 | $ | 227,249 | |||||||
FFOAA available to common shareholders of EPR Properties | $ | 93,289 | $ | 78,804 | $ | 264,670 | $ | 227,249 | |||||||
Add: Preferred dividends for Series C preferred shares | 1,941 | 1,941 | 5,823 | 5,823 | |||||||||||
Diluted FFOAA available to common shareholders of EPR Properties | $ | 95,230 | $ | 80,745 | $ | 270,493 | $ | 233,072 | |||||||
AFFO: | |||||||||||||||
FFOAA available to common shareholders of EPR Properties | $ | 93,289 | $ | 78,804 | $ | 264,670 | $ | 227,249 | |||||||
Non-real estate depreciation and amortization | 237 | 454 | 676 | 1,352 | |||||||||||
Deferred financing fees amortization | 1,598 | 1,187 | 4,579 | 3,522 | |||||||||||
Share-based compensation expense to management and Trustees | 3,605 | 2,778 | 10,566 | 8,282 | |||||||||||
Maintenance capital expenditures (2) | (1,125 | ) | (805 | ) | (4,316 | ) | (3,805 | ) | |||||||
Straight-lined rental revenue | (2,357 | ) | (4,597 | ) | (11,417 | ) | (10,950 | ) | |||||||
Non-cash portion of mortgage and other financing income | (905 | ) | (962 | ) | (2,361 | ) | (2,907 | ) | |||||||
Amortization of above and below market leases, net and tenant improvements | (55 | ) | 42 | (41 | ) | 138 | |||||||||
AFFO available to common shareholders of EPR Properties | $ | 94,287 | $ | 76,901 | $ | 262,356 | $ | 222,881 | |||||||
AFFO available to common shareholders of EPR Properties | $ | 94,287 | $ | 76,901 | $ | 262,356 | $ | 222,881 | |||||||
Add: Preferred dividends for Series C preferred shares | 1,941 | — | 5,823 | — | |||||||||||
Diluted AFFO available to common shareholders of EPR Properties | $ | 96,228 | $ | 76,901 | $ | 268,179 | $ | 222,881 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
AFFO: | |||||||||||||||||
FFOAA available to common shareholders of EPR Properties | $ | 97,792 | $ | 88,739 | $ | 193,798 | $ | 171,952 | |||||||||
Non-real estate depreciation and amortization | 211 | 203 | 415 | 420 | |||||||||||||
Deferred financing fees amortization | 2,150 | 2,090 | 4,279 | 4,161 | |||||||||||||
Share-based compensation expense to management and trustees | 4,477 | 4,169 | 8,799 | 8,414 | |||||||||||||
Amortization of above and below market leases, net and tenant allowances | (185) | (89) | (274) | (176) | |||||||||||||
Maintenance capital expenditures (1) | (3,455) | (134) | (5,631) | (1,485) | |||||||||||||
Straight-lined rental revenue | (1,149) | (1,733) | (3,254) | (2,328) | |||||||||||||
Straight-lined ground sublease expense | 401 | 261 | 966 | 509 | |||||||||||||
Non-cash portion of mortgage and other financing income | (141) | (118) | (263) | (234) | |||||||||||||
AFFO available to common shareholders of EPR Properties | $ | 100,101 | $ | 93,388 | $ | 198,835 | $ | 181,233 | |||||||||
AFFO available to common shareholders of EPR Properties | $ | 100,101 | $ | 93,388 | $ | 198,835 | $ | 181,233 | |||||||||
Add: Preferred dividends for Series C preferred shares | 1,938 | 1,938 | 3,876 | 3,876 | |||||||||||||
Add: Preferred dividends for Series E preferred shares | 1,938 | 1,939 | 3,876 | 3,878 | |||||||||||||
Diluted AFFO available to common shareholders of EPR Properties | $ | 103,977 | $ | 97,265 | $ | 206,587 | $ | 188,987 | |||||||||
FFO per common share: | |||||||||||||||||
Basic | $ | 1.30 | $ | 1.04 | $ | 2.56 | $ | 2.13 | |||||||||
Diluted | 1.27 | 1.04 | 2.52 | 2.12 | |||||||||||||
FFOAA per common share: | |||||||||||||||||
Basic | $ | 1.30 | $ | 1.18 | $ | 2.58 | $ | 2.30 | |||||||||
Diluted | 1.28 | 1.17 | 2.53 | 2.27 | |||||||||||||
Shares used for computation (in thousands): | |||||||||||||||||
Basic | 75,297 | 74,986 | 75,191 | 74,915 | |||||||||||||
Diluted | 75,715 | 75,234 | 75,571 | 75,142 | |||||||||||||
Weighted average shares outstanding-diluted EPS | 75,715 | 75,234 | 75,571 | 75,142 | |||||||||||||
Effect of dilutive Series C preferred shares | 2,279 | 2,245 | 2,276 | 2,243 | |||||||||||||
Effect of dilutive Series E preferred shares | 1,663 | 1,664 | 1,663 | 1,664 | |||||||||||||
Adjusted weighted average shares outstanding-diluted Series C and Series E | 79,657 | 79,143 | 79,510 | 79,049 | |||||||||||||
Other financial information: | |||||||||||||||||
Dividends per common share | $ | 0.825 | $ | 0.825 | $ | 1.650 | $ | 1.600 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
FFO per common share: | |||||||||||||||
Basic | $ | 1.23 | $ | 1.23 | $ | 3.55 | $ | 3.54 | |||||||
Diluted | 1.22 | 1.22 | 3.52 | 3.52 | |||||||||||
FFOAA per common share: | |||||||||||||||
Basic | $ | 1.27 | $ | 1.24 | $ | 3.76 | $ | 3.59 | |||||||
Diluted | 1.26 | 1.23 | 3.73 | 3.56 | |||||||||||
Shares used for computation (in thousands): | |||||||||||||||
Basic | 73,663 | 63,627 | 70,320 | 63,296 | |||||||||||
Diluted | 73,724 | 63,747 | 70,385 | 63,393 | |||||||||||
Weighted average shares outstanding-diluted EPS | 73,724 | 63,747 | 70,385 | 63,393 | |||||||||||
Effect of dilutive Series C preferred shares | 2,072 | 2,036 | 2,063 | 2,029 | |||||||||||
Adjusted weighted average shares outstanding-diluted | 75,796 | 65,783 | 72,448 | 65,422 | |||||||||||
Other financial information: | |||||||||||||||
Dividends per common share | $ | 1.02 | $ | 0.96 | $ | 3.06 | $ | 2.88 | |||||||
June 30, | |||||||||||
2023 | 2022 | ||||||||||
Net Debt: | |||||||||||
Debt | $ | 2,813,007 | $ | 2,807,080 | |||||||
Deferred financing costs, net | 28,222 | 34,149 | |||||||||
Cash and cash equivalents | (99,711) | (168,266) | |||||||||
Net Debt | $ | 2,741,518 | $ | 2,672,963 | |||||||
Gross Assets: | |||||||||||
Total Assets | $ | 5,703,564 | $ | 5,793,442 | |||||||
Accumulated depreciation | 1,369,790 | 1,243,240 | |||||||||
Cash and cash equivalents | (99,711) | (168,266) | |||||||||
Gross Assets | $ | 6,973,643 | $ | 6,868,416 | |||||||
Debt to Total Assets Ratio | 49 | % | 48 | % | |||||||
Net Debt to Gross Assets Ratio | 39 | % | 39 | % | |||||||
Three Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
EBITDAre and Adjusted EBITDAre: | |||||||||||
Net income | $ | 13,600 | $ | 40,909 | |||||||
Interest expense, net | 31,591 | 33,289 | |||||||||
Income tax expense | 347 | 444 | |||||||||
Depreciation and amortization | 43,705 | 40,766 | |||||||||
Loss on sale of real estate | 575 | — | |||||||||
Impairment of real estate investments, net | 43,785 | — | |||||||||
Impairment charges on joint ventures | — | 647 | |||||||||
Allocated share of joint venture depreciation | 2,162 | 1,996 | |||||||||
Allocated share of joint venture interest expense | 2,172 | 1,276 | |||||||||
EBITDAre | $ | 137,937 | $ | 119,327 | |||||||
Severance expense | 547 | — | |||||||||
Transaction costs | 36 | 1,145 | |||||||||
Credit loss (benefit) expense | (275) | 9,512 | |||||||||
Adjusted EBITDAre (for the quarter) | $ | 138,245 | $ | 129,984 | |||||||
Adjusted EBITDAre (annualized) (1) | $ | 552,980 | $ | 519,936 | |||||||
Net Debt/Adjusted EBITDAre Ratio | 5.0 | 5.1 | |||||||||
(1) Adjusted EBITDA for the quarter is multiplied by four to calculate an annual amount. | |||||||||||
September 30, | |||||||
2017 | 2016 | ||||||
Net Debt: | |||||||
Debt | $ | 2,987,925 | $ | 2,248,576 | |||
Deferred financing costs, net | 33,951 | 18,885 | |||||
Cash and cash equivalents | (11,412 | ) | (7,311 | ) | |||
Net Debt | $ | 3,010,464 | $ | 2,260,150 | |||
Three Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Adjusted EBITDA: | |||||||
Net income available to common shareholders of EPR Properties | $ | 57,003 | $ | 51,575 | |||
Costs associated with loan refinancing or payoff | 1,477 | 14 | |||||
Interest expense, net | 34,194 | 24,265 | |||||
Transaction costs | 113 | 2,947 | |||||
Depreciation and amortization | 34,694 | 27,601 | |||||
Equity in income from joint ventures | (35 | ) | (203 | ) | |||
Gain on sale of real estate | (997 | ) | (1,615 | ) | |||
Income tax expense | 587 | 358 | |||||
Preferred dividend requirements | 5,951 | 5,951 | |||||
Gain on insurance recovery (1) | — | (1,825 | ) | ||||
Adjusted EBITDA (for the quarter) | $ | 132,987 | $ | 109,068 | |||
Adjusted EBITDA (2) | $ | 531,948 | $ | 436,272 | |||
Net Debt/Adjusted EBITDA Ratio | 5.66 | 5.18 | |||||
(1) Included in other income in the accompanying consolidated statements of income. Other income includes the following: | |||||||
Three Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Income from settlement of foreign currency swap contracts | $ | 520 | $ | 643 | |||
Gain on insurance recovery | — | 1,825 | |||||
Fee income | 1 | — | |||||
Miscellaneous income | 1 | 8 | |||||
Other income | $ | 522 | $ | 2,476 | |||
June 30, 2023 | December 31, 2022 | |||||||||||||||||
September 30, 2017 | December 31, 2016 | |||||||||||||||||
Total assets | Total assets | $ | 5,703,564 | $ | 5,758,701 | |||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | (192,325) | (200,985) | |||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | (99,711) | (107,934) | |||||||||||||||
Restricted cash | Restricted cash | (2,623) | (2,577) | |||||||||||||||
Accounts receivable | Accounts receivable | (53,305) | (53,587) | |||||||||||||||
Add: accumulated depreciation on real estate investments | Add: accumulated depreciation on real estate investments | 1,369,790 | 1,302,640 | |||||||||||||||
Add: accumulated amortization on intangible assets (1) | Add: accumulated amortization on intangible assets (1) | 27,173 | 23,487 | |||||||||||||||
Prepaid expenses and other current assets (1) | Prepaid expenses and other current assets (1) | (33,625) | (33,559) | |||||||||||||||
Total investments | Total investments | $ | 6,718,938 | $ | 6,686,186 | |||||||||||||
Total Investments: | Total Investments: | |||||||||||||||||
Rental properties, net of accumulated depreciation | $ | 4,535,994 | $ | 3,595,762 | ||||||||||||||
Add back accumulated depreciation on rental properties | 711,384 | 635,535 | ||||||||||||||||
Real estate investments, net of accumulated depreciation | Real estate investments, net of accumulated depreciation | $ | 4,659,678 | $ | 4,714,136 | |||||||||||||
Add back accumulated depreciation on real estate investments | Add back accumulated depreciation on real estate investments | 1,369,790 | 1,302,640 | |||||||||||||||
Land held for development | 33,674 | 22,530 | Land held for development | 20,168 | 20,168 | |||||||||||||
Property under development | 284,211 | 297,110 | Property under development | 80,650 | 76,029 | |||||||||||||
Mortgage notes and related accrued interest receivable | 972,371 | 613,978 | ||||||||||||||||
Investment in a direct financing lease, net | 57,698 | 102,698 | ||||||||||||||||
Mortgage notes and related accrued interest receivable, net | Mortgage notes and related accrued interest receivable, net | 466,459 | 457,268 | |||||||||||||||
Investment in joint ventures | 5,616 | 5,972 | Investment in joint ventures | 53,763 | 52,964 | |||||||||||||
Intangible assets, gross(1) | 45,848 | 28,787 | Intangible assets, gross (1) | 64,156 | 60,109 | |||||||||||||
Notes receivable and related accrued interest receivable, net(1) | 5,213 | 4,765 | Notes receivable and related accrued interest receivable, net (1) | 4,274 | 2,872 | |||||||||||||
Total investments | $ | 6,652,009 | $ | 5,307,137 | Total investments | $ | 6,718,938 | $ | 6,686,186 | |||||||||
Total investments | $ | 6,652,009 | $ | 5,307,137 | ||||||||||||||
Cash and cash equivalents | 11,412 | 19,335 | ||||||||||||||||
Restricted cash | 24,323 | 9,744 | ||||||||||||||||
Account receivable, net | 99,213 | 98,939 | ||||||||||||||||
Less: accumulated depreciation on rental properties | (711,384 | ) | (635,535 | ) | ||||||||||||||
Less: accumulated amortization on intangible assets | (16,318 | ) | (14,008 | ) | ||||||||||||||
Prepaid expenses and other current assets | 73,755 | 79,410 | ||||||||||||||||
Total assets | $ | 6,133,010 | $ | 4,865,022 | ||||||||||||||
(1) Included in other assets in the accompanying consolidated balance sheet. Other assets includes the following: | ||||||||||||||||||
(1) Included in "Other assets" in the accompanying consolidated balance sheet. Other assets include the following: | (1) Included in "Other assets" in the accompanying consolidated balance sheet. Other assets include the following: | |||||||||||||||||
September 30, 2017 | December 31, 2016 | June 30, 2023 | December 31, 2022 | |||||||||||||||
Intangible assets, gross | $ | 45,848 | $ | 28,787 | Intangible assets, gross | $ | 64,156 | $ | 60,109 | |||||||||
Less: accumulated amortization on intangible assets | (16,318 | ) | (14,008 | ) | Less: accumulated amortization on intangible assets | (27,173) | (23,487) | |||||||||||
Notes receivable and related accrued interest receivable, net | 5,213 | 4,765 | Notes receivable and related accrued interest receivable, net | 4,274 | 2,872 | |||||||||||||
Prepaid expenses and other current assets | 73,755 | 79,410 | Prepaid expenses and other current assets | 33,625 | 33,559 | |||||||||||||
Total other assets | $ | 108,498 | $ | 98,954 | Total other assets | $ | 74,882 | $ | 73,053 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
April 1 through April 30, 2023 common shares | — | $ | — | — | $ | — | ||||||||||||||||||||
May 1 through May 31, 2023 common shares | 2,326 | (1) | 41.97 | — | — | |||||||||||||||||||||
June 1 through June 30, 2023 common shares | — | — | — | — | ||||||||||||||||||||||
Total | 2,326 | $ | 41.97 | — | $ | — |
Certification of Gregory K. Silvers pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, is attached hereto as Exhibit 31.1. | |||||
31.2* | Certification of Mark A. Peterson pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, is attached hereto as Exhibit 31.2. | ||||
32.1** | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is attached hereto as Exhibit 32.1. | ||||
32.2** | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is attached hereto as Exhibit 32.2. | ||||
101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH* | Inline XBRL Taxonomy Extension Schema | ||||
101.CAL* | Inline XBRL Extension Calculation Linkbase | ||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase | ||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase | ||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase | ||||
104* | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
EPR Properties | ||||||||||||||
Dated: | By | |||||||||||||
Gregory K. Silvers, Chairman, President and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
Dated: | By | |||||||||||||
Tonya L. Mater, Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |