Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 03, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | EPR PROPERTIES | |
Entity Central Index Key | 1,045,450 | |
Trading Symbol | EPR | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 63,626,386 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Rental properties, net of accumulated depreciation of $583,848 and $534,303 at June 30, 2016 and December 31, 2015, respectively | $ 3,331,781 | $ 3,025,199 |
Land held for development | 22,530 | 23,610 |
Property under development | 301,605 | 378,920 |
Mortgage notes and related accrued interest receivable | 424,875 | 423,780 |
Investment in a direct financing lease, net | 188,386 | 190,880 |
Investment in joint ventures | 5,955 | 6,168 |
Cash and cash equivalents | 8,462 | 4,283 |
Restricted cash | 16,614 | 10,578 |
Accounts receivable, net | 62,061 | 59,101 |
Other assets | 97,955 | 94,751 |
Total assets | 4,460,224 | 4,217,270 |
Liabilities: | ||
Accounts payable and accrued liabilities | 91,130 | 92,178 |
Common dividends payable | 20,360 | 18,401 |
Preferred dividends payable | 5,952 | 5,951 |
Unearned rents and interest | 49,798 | 44,952 |
Debt | 2,098,265 | 1,981,920 |
Total liabilities | 2,265,505 | 2,143,402 |
Equity: | ||
Common Shares, $.01 par value; 100,000,000 shares authorized; and 66,154,679 and 63,195,182 shares issued at June 30, 2016 and December 31, 2015, respectively | 662 | 632 |
Preferred shares, $.01 par value; 25,000,000 shares authorized: | ||
Additional paid-in-capital | 2,665,663 | 2,508,445 |
Treasury shares at cost: 2,529,510 and 2,371,198 common shares at June 30, 2016 and December 31, 2015, respectively | (107,133) | (97,328) |
Accumulated other comprehensive income | 3,485 | 5,622 |
Distributions in excess of net income | (368,097) | (343,642) |
Total equity | 2,194,719 | 2,073,868 |
Total liabilities and equity | 4,460,224 | 4,217,270 |
Series C Preferred Shares [Member] | ||
Preferred shares, $.01 par value; 25,000,000 shares authorized: | ||
Preferred shares | 54 | 54 |
Series E Preferred Shares [Member] | ||
Preferred shares, $.01 par value; 25,000,000 shares authorized: | ||
Preferred shares | 35 | 35 |
Series F Preferred Stock [Member] | ||
Preferred shares, $.01 par value; 25,000,000 shares authorized: | ||
Preferred shares | $ 50 | $ 50 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Rental properties, accumulated depreciation | $ 583,848,000 | $ 534,303,000 |
Common Shares, par value | $ 0.01 | $ 0.01 |
Common Shares, shares authorized | 100,000,000 | |
Common Shares, shares issued | 66,154,679 | 63,195,182 |
Preferred Shares, par value | $ 0.01 | $ 0.01 |
Preferred Shares, shares authorized | 25,000,000 | 25,000,000 |
Treasury Shares, common shares | 2,529,510 | 2,371,198 |
Series C Preferred Shares [Member] | ||
Preferred Shares, shares issued | 5,400,000 | 5,400,000 |
Preferred Shares, liquidation preference | $ 135,000,000 | $ 135,000,000 |
Series E Preferred Shares [Member] | ||
Preferred Shares, shares issued | 3,450,000 | 3,450,000 |
Preferred Shares, liquidation preference | $ 86,250,000 | $ 86,250,000 |
Series F Preferred Stock [Member] | ||
Preferred Shares, shares issued | 5,000,000 | 5,000,000 |
Preferred Shares, liquidation preference | $ 125,000,000 | $ 125,000,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Rental revenue | $ 96,055 | $ 77,860 | $ 189,833 | $ 154,600 |
Tenant reimbursements | 3,891 | 3,965 | 7,756 | 8,268 |
Other income | 2,126 | 1,148 | 3,336 | 1,698 |
Mortgage and other financing income | 15,961 | 18,285 | 35,876 | 36,128 |
Total revenue | 118,033 | 101,258 | 236,801 | 200,694 |
Property operating expense | 5,580 | 5,770 | 11,061 | 12,127 |
Other expense | 0 | 210 | 5 | 312 |
General and administrative expense | 9,000 | 7,756 | 18,218 | 15,438 |
Retirement severance expense | 0 | 0 | 0 | 18,578 |
Costs associated with loan refinancing or payoff | 339 | 243 | 891 | 243 |
Interest expense, net | 22,756 | 20,007 | 46,045 | 38,594 |
Transaction costs | 1,490 | 4,429 | 1,934 | 6,035 |
Depreciation and amortization | 25,666 | 21,849 | 51,621 | 41,204 |
Income before equity in income from joint ventures and other items | 53,202 | 40,994 | 107,026 | 68,163 |
Equity in income from joint ventures | 86 | 198 | 298 | 362 |
Gain on sale of real estate | 2,270 | 0 | 2,270 | 23,924 |
Income before income taxes | 55,558 | 41,192 | 109,594 | 92,449 |
Income tax benefit (expense) | (423) | 7,506 | (279) | (920) |
Income from continuing operations | 55,135 | 48,698 | 109,315 | 91,529 |
Discontinued operations: | ||||
Income from discontinued operations | 0 | 68 | 0 | 58 |
Net income attributable to EPR Properties | 55,135 | 48,766 | 109,315 | 91,587 |
Preferred dividend requirements | (5,952) | (5,952) | (11,904) | (11,904) |
Net income available to common shareholders of EPR Properties | $ 49,183 | $ 42,814 | $ 97,411 | $ 79,683 |
Basic earnings per share data: | ||||
Income from continuing operations (in dollars per share) | $ 0.77 | $ 0.75 | $ 1.54 | $ 1.39 |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income available to common shareholders (in dollars per share) | 0.77 | 0.75 | 1.54 | 1.39 |
Diluted earnings per share data: | ||||
Income from continuing operations (in dollars per share) | 0.77 | 0.75 | 1.54 | 1.39 |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income available to common shareholders (in dollars per share) | $ 0.77 | $ 0.75 | $ 1.54 | $ 1.39 |
Shares used for computation (in thousands): | ||||
Basic (in shares) | 63,592 | 57,200 | 63,128 | 57,156 |
Diluted (in shares) | 63,678 | 57,446 | 63,213 | 57,408 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income attributable to EPR Properties | $ 55,135 | $ 48,766 | $ 109,315 | $ 91,587 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 921 | 2,390 | 12,142 | (14,912) |
Change in unrealized gain (loss) on derivatives | (1,144) | (2,812) | (14,279) | 10,636 |
Comprehensive income attributable to EPR Properties | $ 54,912 | $ 48,344 | $ 107,178 | $ 87,311 |
Consolidated Statement Of Chang
Consolidated Statement Of Changes In Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional paid-in capital [Member] | Treasury shares [Member] | Accumulated other comprehensive income (loss) [Member] | Distributions in excess of net income [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total equity | $ 2,073,868 | $ 632 | $ 139 | $ 2,508,445 | $ (97,328) | $ 5,622 | $ (343,642) |
Balance (in shares) at Dec. 31, 2015 | 63,195,182 | 13,850,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Restricted share units issued to Trustees | 15,805 | ||||||
Issuance of nonvested shares, net | 300,752 | ||||||
Issuance of nonvested shares, net | (4,475) | $ (3) | (4,472) | ||||
Purchase of common shares for vesting | 4,208 | 4,208 | |||||
Amortization of nonvested shares | (5,044) | (5,044) | |||||
Share option expense | 460 | 460 | |||||
Foreign currency translation adjustment | 12,142 | 12,142 | |||||
Change in unrealized gain/loss on derivatives | (14,279) | (14,279) | |||||
Net income attributable to EPR Properties | 109,315 | 109,315 | |||||
Issuances of common shares (in shares) | 2,514,913 | ||||||
Issuances of common shares | $ 142,389 | $ 26 | 142,363 | ||||
Stock option exercises, net (in shares) | 128,027 | 128,027 | |||||
Stock option exercises, net | $ (717) | $ (1) | (4,879) | (5,597) | |||
Dividends to common and preferred shareholders | (133,770) | (133,770) | |||||
Balance (in shares) at Jun. 30, 2016 | 66,154,679 | 13,850,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total equity | $ 2,194,719 | $ 662 | $ 139 | $ 2,665,663 | $ (107,133) | $ 3,485 | $ (368,097) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 97,411 | $ 79,683 |
Operating activities: | ||
Net income | 109,315 | 91,587 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Income from discontinued operations | 0 | (58) |
Gain on sale of real estate | (2,270) | (23,924) |
Gain on insurance recovery | (2,012) | 0 |
Deferred income tax expense (benefit) | (620) | 177 |
Costs associated with loan refinancing or payoff | 891 | 243 |
Equity in income from joint ventures | 298 | 362 |
Distributions from joint ventures | 511 | 0 |
Depreciation and amortization | 51,621 | 41,204 |
Amortization of deferred financing costs | 2,335 | 2,269 |
Amortization of above market leases | 96 | 97 |
Share-based compensation expense to management and trustees | 5,504 | 4,057 |
Share-based compensation expense included in retirement severance expense | 0 | 6,377 |
Decrease (increase) in restricted cash | (1,665) | 464 |
Decrease (increase) in mortgage notes accrued interest receivable | 728 | (3,009) |
Increase in accounts receivable, net | (4,327) | (9,314) |
Increase in direct financing lease receivable | (1,736) | (1,882) |
Increase in other assets | (4,745) | (2,057) |
Increase (decrease) in accounts payable and accrued liabilities | (931) | 6,035 |
Increase in unearned rents and interest | 135 | 7,977 |
Net operating cash provided by continuing operations | 152,532 | 119,881 |
Net operating cash provided by discontinued operations | 0 | 526 |
Net cash provided by operating activities | 152,532 | 120,407 |
Investing activities: | ||
Acquisition of and investments in rental properties and other assets | 138,788 | 93,221 |
Proceeds from sale of real estate | 13,129 | 43,790 |
Investment in mortgage notes receivable | (65,508) | (35,589) |
Proceeds from mortgage note receivable paydown | 63,685 | 308 |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 43,462 | 0 |
Proceeds from insurance recovery | 2,211 | 0 |
Proceeds from Sale of Lease Receivables | 825 | 4,741 |
Additions to properties under development | (187,216) | (206,955) |
Net cash used by investing activities | (268,200) | (286,926) |
Financing activities: | ||
Proceeds from long-term debt facilities | 318,000 | 558,914 |
Principal payments on long-term debt | (203,116) | (259,659) |
Deferred financing fees paid | (169) | (6,854) |
Costs associated with loan refinancing or payoff (cash portion) | (472) | 0 |
Net proceeds from issuance of common shares | 142,279 | 240 |
Impact of stock option exercises, net | (717) | (35) |
Purchase of common shares for treasury | (4,208) | (8,223) |
Dividends paid to shareholders | (131,701) | (114,600) |
Net cash provided by financing activities | 119,896 | 169,783 |
Effect of exchange rate changes on cash | (49) | (454) |
Net increase in cash and cash equivalents | 4,179 | 2,810 |
Cash and cash equivalents at beginning of the year | 4,283 | 3,336 |
Cash and cash equivalents at end of the year | 8,462 | 6,146 |
Supplemental schedule of non-cash activity: | ||
Transfer of property under development to rental property | 224,057 | 62,028 |
Transfer of land held for development to property under development | 0 | 167,600 |
Issuance of nonvested shares and restricted share units at fair value, including nonvested shares issued for payment of bonuses | 19,626 | 13,682 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | 48,608 | 42,143 |
Cash paid during the period for income taxes | 1,116 | 748 |
Interest cost capitalized | 5,051 | 9,493 |
Decrease in accrued capital expenditures | $ (5,598) | $ (5,967) |
Organization
Organization | 6 Months Ended |
Jun. 30, 2016 | |
Organization [Abstract] | |
Organization | Organization Description of Business EPR Properties (the Company) is a specialty real estate investment trust (REIT) organized on August 29, 1997 in Maryland. The Company develops, owns, leases and finances properties in select market segments primarily related to Entertainment, Education and Recreation. The Company’s properties are located in the United States and Canada. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies and Recently Issued Accounting Standards Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. In addition, operating results for the six month period ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The Company consolidates certain entities when it is deemed to be the primary beneficiary in a variable interest entity (VIE) in which it has a controlling financial interest. A controlling financial interest will have both of the following characteristics: the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. This topic requires an ongoing reassessment. The equity method of accounting is applied to entities in which the Company is not the primary beneficiary as defined in the Consolidation Topic of the FASB ASC, or does not have effective control, but can exercise influence over the entity with respect to its operations and major decisions. The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission (SEC) on February 25, 2016. Operating Segments For financial reporting purposes, the Company groups its investments into four reportable operating segments: Entertainment, Education, Recreation and Other. See Note 14 for financial information related to these operating segments. Rental Properties Rental properties are carried at cost less accumulated depreciation. Costs incurred for the acquisition and development of the properties are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally are estimated to be 30 to 40 years for buildings and 3 to 25 years for furniture, fixtures and equipment. Tenant improvements, including allowances, are depreciated over the shorter of the base term of the lease or the estimated useful life. Expenditures for ordinary maintenance and repairs are charged to operations in the period incurred. Significant renovations and improvements that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful life. Management reviews a property for impairment whenever events or changes in circumstances indicate that the carrying value of a property may not be recoverable. The review of recoverability is based on an estimate of undiscounted future cash flows expected to result from its use and eventual disposition. If impairment exists due to the inability to recover the carrying value of the property, an impairment loss is recorded to the extent that the carrying value of the property exceeds its estimated fair value. The Company evaluates the held-for-sale classification of its real estate as of the end of each quarter. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value less costs to sell. Assets are generally classified as held for sale once management has initiated an active program to market them for sale and has received a firm purchase commitment that is expected to close within one year. On occasion, the Company will receive unsolicited offers from third parties to buy individual Company properties. Under these circumstances, the Company will classify the properties as held for sale when a sales contract is executed with no contingencies and the prospective buyer has funds at risk to ensure performance. Deferred Financing Costs Deferred financing costs are amortized over the terms of the related debt obligations or mortgage note receivable as applicable. The Company early adopted the FASB issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issue Costs , during 2015 and applied the guidance retrospectively. Deferred financing costs of $16.8 million and $18.3 million as of June 30, 2016 and December 31, 2015, respectively, are shown as a reduction of debt. The deferred financing costs related to our unsecured revolving credit facility are included in other assets. Allowance for Doubtful Accounts The Company makes estimates of the collectability of its accounts receivable related to base rents, tenant escalations (straight-line rents), reimbursements and other income. The Company specifically analyzes trends in accounts receivable, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of its allowance for doubtful accounts. When evaluating customer creditworthiness, management reviews the periodic financial statements for significant tenants and specifically evaluates the strength and material changes in net operating income, coverage ratios, leverage and other factors to assess the tenant's credit quality. In addition, when customers are in bankruptcy, the Company makes estimates of the expected recovery through bankruptcy claims and increases the allowance for amounts deemed uncollectible. These estimates have a direct impact on the Company's net income. Revenue Recognition Rents that are fixed and determinable are recognized on a straight-line basis over the minimum term of the leases. Base rent escalation on leases that are dependent upon increases in the Consumer Price Index (CPI) is recognized when known. In addition, most of the Company's tenants are subject to additional rents if gross revenues of the properties exceed certain thresholds defined in the lease agreements (percentage rents). Percentage rents as well as participating interest for those mortgage agreements that contain similar such clauses are recognized at the time when specific triggering events occur as provided by the lease or mortgage agreements. Rental revenue included percentage rents of $1.0 million and $0.4 million for the six months ended June 30, 2016 and 2015 , respectively. The Company recognized no participating interest income in mortgage and other financing income for both the six months ended June 30, 2016 and 2015 . For the six months ended June 30, 2016 , mortgage and other financing income included a $3.6 million prepayment fee related to a mortgage note that was paid fully in advance of its maturity date. Direct financing lease income is recognized on the effective interest method to produce a level yield on funds not yet recovered. Estimated unguaranteed residual values at the date of lease inception represent management's initial estimates of fair value of the leased assets at the expiration of the lease, not to exceed original cost. Significant assumptions used in estimating residual values include estimated net cash flows over the remaining lease term and expected future real estate values. The Company evaluates on an annual basis (or more frequently, if necessary) the collectability of its direct financing lease receivable and unguaranteed residual value to determine whether they are impaired. A direct financing lease receivable is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the existing contractual terms. When a direct financing lease receivable is considered to be impaired, the amount of loss is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the direct financing lease receivable's effective interest rate or to the fair value of the underlying collateral, less costs to sell, if such receivable is collateralized. Mortgage Notes and Other Notes Receivable Mortgage notes and other notes receivable, including related accrued interest receivable, consist of loans originated by the Company and the related accrued and unpaid interest income as of the balance sheet date. Mortgage notes and other notes receivable are initially recorded at the amount advanced to the borrower and the Company defers certain loan origination and commitment fees, net of certain origination costs, and amortizes them over the term of the related loan. Interest income on performing loans is accrued as earned. The Company evaluates the collectability of both interest and principal of each of its loans to determine whether it is impaired. A loan is considered to be impaired when, based on current information and events, the Company determines that it is probable that it will be unable to collect all amounts due according to the existing contractual terms. An insignificant delay or shortfall in amounts of payments does not necessarily result in the loan being identified as impaired. When a loan is considered to be impaired, the amount of loss, if any, is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the loan’s effective interest rate or to the fair value of the Company’s interest in the underlying collateral, less costs to sell, if the loan is collateral dependent. For impaired loans, interest income is recognized on a cash basis, unless the Company determines based on the loan to estimated fair value ratio the loan should be on the cost recovery method, and any cash payments received would then be reflected as a reduction of principal. Interest income recognition is recommenced if and when the impaired loan becomes contractually current and performance is demonstrated to be resumed. Concentrations of Risk American Multi-Cinema, Inc. (AMC) is the lessee of a substantial portion ( 24% ) of the megaplex theatre rental properties held by the Company at June 30, 2016 primarily as a result of a series of sale leaseback transactions pertaining to AMC megaplex theatres. A substantial portion of the Company’s total revenues (approximately $43.6 million or 18% and $42.7 million or 21% , for the six months ended June 30, 2016 and 2015 , respectively) results from the revenue from AMC under the leases or from its parent, AMC Entertainment, Inc. (AMCE) as the guarantor of AMC’s obligations under the leases. AMCE is wholly owned by AMC Entertainment Holdings, Inc. (AMCEH). AMCEH is a publicly held company (NYSE: AMC) and its consolidated financial information is publicly available at www.sec.gov. Share-Based Compensation Share-based compensation to employees of the Company is granted pursuant to the Company's Annual Incentive Program and Long-Term Incentive Plan and share-based compensation to non-employee Trustees of the Company is granted pursuant to the Company's Trustee compensation program. Prior to May 12, 2016, share-based compensation granted to employees and non-employee Trustees were issued under the 2007 Equity Incentive Plan. The 2016 Equity Incentive Plan was approved by shareholders at the May 11, 2016 annual shareholder meeting and this plan replaces the 2007 Equity Incentive Plan. Accordingly, all share-based compensation granted on or after May 12, 2016 will be issued under the 2016 Equity Incentive Plan. Share-based compensation expense consists of share option expense and amortization of nonvested share grants issued to employees, and amortization of share units issued to non-employee Trustees for payment of their annual retainers. Share-based compensation included in general and administrative expense in the accompanying consolidated statements of income totaled $5.5 million and $4.1 million for the six months ended June 30, 2016 and 2015 , respectively. Share-based compensation included in retirement severance expense in the accompanying consolidated statements of income totaled $6.4 million for the six months ended June 30, 2015 and related to the retirement of the Company's former President and Chief Executive Officer. Share Options Share options are granted to employees pursuant to the Long-Term Incentive Plan. The fair value of share options granted is estimated at the date of grant using the Black-Scholes option pricing model. Share options granted to employees vest over a period of four years and share option expense for these options is recognized on a straight-line basis over the vesting period. Expense recognized related to share options and included in general and administrative expense in the accompanying consolidated statements of income was $460 thousand and $550 thousand for the six months ended June 30, 2016 and 2015 , respectively. Expense recognized related to share options and included in retirement severance expense in the accompanying consolidated statements of income was $1.4 million for the six months ended June 30, 2015 and related to the retirement of the Company's former President and Chief Executive Officer. Nonvested Shares Issued to Employees The Company grants nonvested shares to employees pursuant to both the Annual Incentive Program and the Long-Term Incentive Plan. The Company amortizes the expense related to the nonvested shares awarded to employees under the Long-Term Incentive Plan and the premium awarded under the nonvested share alternative of the Annual Incentive Program on a straight-line basis over the future vesting period ( three or four years). Expense recognized related to nonvested shares and included in general and administrative expense in the accompanying consolidated statements of income was $4.5 million and $3.0 million for the six months ended June 30, 2016 and 2015 , respectively. Expense related to nonvested shares and included in retirement severance expense in the accompanying consolidated statements of income was $5.0 million for the six months ended June 30, 2015 and related to the retirement of the Company's former President and Chief Executive Officer. Restricted Share Units Issued to Non-Employee Trustees The Company issues restricted share units to non-employee Trustees for payment of their annual retainers under the Company's Trustee compensation program. The fair value of the share units granted was based on the share price at the date of grant. The share units vest upon the earlier of the day preceding the next annual meeting of shareholders or a change of control. The settlement date for the shares is selected by the non-employee Trustee, and ranges from one year from the grant date to upon termination of service. This expense is amortized by the Company on a straight-line basis over the year of service by the non-employee Trustees. Total expense recognized related to shares issued to non-employee Trustees was $533 thousand and $524 thousand for the six months ended June 30, 2016 and 2015 , respectively. Derivative Instruments The Company has acquired certain derivative instruments to reduce exposure to fluctuations in foreign currency exchange rates and variable interest rates. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. These derivatives consist of foreign currency forward contracts, cross-currency swaps and interest rate swaps. The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company's policy is to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Impact of Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The ASU does not apply to revenue recognition for lease contracts. In April 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard which was approved in July 2015. The new standard will become effective for the Company beginning with the first quarter 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2016, the FASB issued ASU No. 2016-02, Leases, which amends existing accounting standards for lease accounting and is intended to improve financial reporting about lease transactions. The ASU will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Lessor accounting will remain largely unchanged from current GAAP. The ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact that ASU 2016-02 will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. The objective of this amendment is part of the FASB's Simplification Initiative as it applies to several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification of cash flows. The effective date of the amendment is for fiscal years beginning after December 15, 2016. The Company is currently reviewing the ASU to assess the potential impact on the consolidated financial statements and related disclosures but does not expect the adoption will have a material impact on the Company's financial position or results of operations. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which amends ASC Topic 326, Financial Instruments - Credit Losses. The standard changes the methodology for measuring credit losses on financial instruments and timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. |
Rental Properties
Rental Properties | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate [Abstract] | |
Rental Properties | Rental Properties The following table summarizes the carrying amounts of rental properties as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Buildings and improvements $ 3,003,423 $ 2,837,611 Furniture, fixtures & equipment 38,743 34,423 Land 873,463 687,468 3,915,629 3,559,502 Accumulated depreciation (583,848 ) (534,303 ) Total $ 3,331,781 $ 3,025,199 Depreciation expense on rental properties was $49.8 million and $39.4 million for the six months ended June 30, 2016 and 2015 , respectively. |
Investments and Dispositions
Investments and Dispositions | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Investments | Investments and Dispositions The Company's investment spending during the six months ended June 30, 2016 totaled $371.8 million , and included investments in each of its four operating segments. Entertainment investment spending during the six months ended June 30, 2016 totaled $164.3 million , of which $94.8 million related to the acquisition of a portfolio of six megaplex theatres located in Pennsylvania, Alabama, Tennessee, Texas and Washington. All of these properties are subject to long-term, triple-net leases. In addition, entertainment investment spending related to the acquisition of one family entertainment center located in Georgia, which is subject to a long-term, triple net lease, an additional investment in a mortgage note secured by an entertainment retail center located in North Carolina that was subsequently paid off, as well as investments in the development or redevelopment of ten megaplex theatres, three family entertainment centers and four entertainment retail centers. Education investment spending during the six months ended June 30, 2016 totaled $116.2 million , and was related to investments in the development or expansion of 25 public charter schools, three private schools, and 18 early childhood education centers. Recreation investment spending during the six months ended June 30, 2016 totaled $91.1 million , and was related to build-to-suit construction of 13 Topgolf golf entertainment facilities, the investment in one ski resort located in Hunter, New York, which is subject to a long-term mortgage agreement, as well as additional improvements at Camelback Mountain Resort and the Adelaar waterpark project. Other investment spending during the six months ended June 30, 2016 totaled $0.2 million , and was related to the Adelaar casino and resort project in Sullivan County, New York. On January 5, 2016, the Company received prepayment on one mortgage note receivable of $19.3 million that was secured by a public charter school located in Washington D.C. In connection with the full payoff of this note, the Company received a prepayment fee of $3.6 million , which is included in mortgage and other financing income. Additionally, $80 thousand of prepaid mortgage fees were expensed and are included in costs associated with loan refinancing or payoff. On February 26, 2016, the Company completed the sale of a land parcel at Adelaar for net proceeds of $1.5 million and no gain or loss was recognized. On April 6, 2016, pursuant to a tenant purchase option, the Company completed the sale of a public charter school located in Colorado for net proceeds of $11.2 million . In connection with this sale, the Company recognized a gain on sale of $2.3 million during the six months ended June 30, 2016. On April 22, 2016, the Company received prepayment in full on one mortgage note receivable of $44.3 million that was secured by an entertainment retail center located in North Carolina. In conjunction with this payoff, the Company wrote off $335 thousand of prepaid mortgage fees to costs associated with loan refinancing or payoff. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The following table summarizes the carrying amounts of accounts receivable, net as of June 30, 2016 and December 31, 2015 (in thousands): June 30, December 31, Receivable from tenants $ 4,658 $ 9,999 Receivable from non-tenants 401 353 Straight-line rent receivable 57,858 52,336 Allowance for doubtful accounts (856 ) (3,587 ) Total $ 62,061 $ 59,101 |
Investments In Direct Financing
Investments In Direct Financing Lease | 6 Months Ended |
Jun. 30, 2016 | |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | |
Investments in a Direct Financing Lease | Investment in a Direct Financing Lease The Company’s investment in a direct financing lease relates to the Company’s master lease of 20 public charter school properties as of June 30, 2016 and 21 public charter school properties as of December 31, 2015 , with affiliates of Imagine Schools, Inc. (Imagine). Investment in a direct financing lease, net represents estimated unguaranteed residual values of leased assets and net unpaid rentals, less related deferred income. The following table summarizes the carrying amounts of investment in a direct financing lease, net as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Total minimum lease payments receivable $ 421,262 $ 439,646 Estimated unguaranteed residual value of leased assets 159,303 162,669 Less deferred income (1) (392,179 ) (411,435 ) Investment in a direct financing lease, net $ 188,386 $ 190,880 (1) Deferred income is net of $1.3 million and $1.4 million of initial direct costs at June 30, 2016 and December 31, 2015 , respectively. Additionally, the Company determined that no allowance for losses was necessary at June 30, 2016 and December 31, 2015 . On April 13, 2016, the Company completed the sale of one public charter school property in Georgia with a net carrying value of $4.0 million , which was previously leased to Imagine under the master lease. There was no gain or loss recognized on this sale. The Company’s direct financing lease has expiration dates ranging from approximately 16 to 19 years. Future minimum rentals receivable on this direct financing lease at June 30, 2016 are as follows (in thousands): Amount Year: 2016 $ 9,786 2017 19,947 2018 20,546 2019 21,162 2020 21,797 Thereafter 328,024 Total $ 421,262 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Debt and Capital Markets On January 21, 2016, the Company issued 2,250,000 common shares in a registered public offering for a total net proceeds, after the underwriting discount and offering expenses, of approximately $125.0 million . The net proceeds from the public offering were used to pay down the Company's unsecured revolving credit facility. On February 18, 2016, the Company prepaid in full a mortgage note payable of $4.6 million that was secured by one theatre property. In connection with this note payoff, the Company paid $472 thousand in additional costs included in costs associated with loan refinancing or payoff. On April 21, 2016, the Company paid in full an unsecured note payable of $1.9 million . Additionally, on May 2, 2016, the Company prepaid in full two mortgage notes payable totaling $24.5 million , which were secured by two theatre properties. During the three months ended June 30, 2016 , the Company issued an aggregate of 258,263 common shares under the direct share purchase component of its Dividend Reinvestment and Direct Share Purchase Plan (DSPP) for total net proceeds of $16.9 million . These proceeds were used to pay down a portion of the Company's unsecured revolving credit facility. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company’s variable interest in VIEs currently are in the form of equity ownership and loans provided by the Company to a VIE or other partner. The Company examines specific criteria and uses its judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, and level of economic disproportionality between the Company and the other partner(s). Consolidated VIEs As of June 30, 2016 , the Company had invested approximately $4.2 million in one real estate project which is a VIE. This entity does not have any significant assets and liabilities at June 30, 2016 and was established to facilitate the development of a theatre project. Unconsolidated VIE At June 30, 2016 , the Company’s recorded investment in SVVI, a VIE that is unconsolidated, was $164.7 million . The Company’s maximum exposure to loss associated with SVVI is limited to the Company’s outstanding mortgage note of $164.7 million . While this entity is a VIE, the Company has determined that the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance is not held by the Company. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | Derivative Instruments All derivatives are recognized at fair value in the consolidated balance sheets within the line items "Other assets" and "Accounts payable and accrued liabilities" as applicable. The Company's derivatives are subject to a master netting arrangement and the Company has elected not to offset its derivative position for purposes of balance sheet presentation and disclosure. The Company had derivative liabilities of $9.7 million and $5.7 million recorded in “Accounts payable and accrued liabilities” and derivative assets of $31.9 million and $42.2 million recorded in “Other assets” in the consolidated balance sheet at June 30, 2016 and December 31, 2015 , respectively. Had the Company elected to offset derivatives in the consolidated balance sheet, the Company would have had a net derivative asset of $22.2 million and $36.5 million (with no derivative liability) at June 30, 2016 and December 31, 2015 , respectively. The Company had not posted or received collateral with its derivative counterparties as of June 30, 2016 or December 31, 2015 . See Note 10 for disclosures relating to the fair value of the derivative instruments as of June 30, 2016 and December 31, 2015 . Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions including the effect of changes in foreign currency exchange rates and interest rates on its LIBOR based borrowings. The Company manages this risk by following established risk management policies and procedures including the use of derivatives. The Company’s objective in using derivatives is to add stability to reported earnings and to manage its exposure to foreign exchange and interest rate movements or other identified risks. To accomplish this objective, the Company primarily uses interest rate swaps, cross-currency swaps and foreign currency forwards. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements on its LIBOR based borrowings. To accomplish this objective, the Company currently uses interest rate swaps as its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of June 30, 2016, the Company had three interest rate swap agreements to fix the interest rate on $240.0 million of the unsecured term loan facility at 3.78% from January 5, 2016 to July 5, 2017. Additionally as of June 30, 2016, the Company had two interest rate swap agreements to fix the interest rate at 2.94% on an additional $60.0 million of the unsecured term loan facility from September 8, 2015 to July 5, 2017 and on $300.0 million of the unsecured term loan facility from July 6, 2017 to April 5, 2019. The effective portion of changes in the fair value of interest rate derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (AOCI) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the six months ended June 30, 2016 and 2015 , such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. No hedge ineffectiveness on cash flow hedges was recognized during the six months ended June 30, 2016 and 2015 . Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of June 30, 2016 , the Company estimates t hat during the twelve months ending June 30, 2017, $5.2 million will be reclassified from AOCI to interest expense. Cash Flow Hedges of Foreign Exchange Risk The Company is exposed to foreign currency exchange risk against its functional currency, USD, on its four Canadian properties. The Company uses cross currency swaps and foreign currency forwards to mitigate its exposure to fluctuations in the USD-CAD exchange rate on its Canadian properties. These foreign currency derivatives should hedge a significant portion of the Company's expected CAD denominated cash flow of the Canadian properties as their impact on the Company's cash flow when settled should move in the opposite direction of the exchange rates used to translate revenues and expenses of these properties. As of June 30, 2016 , the Company had a USD-CAD cross-currency swaps with a fixed original notional value of $100.0 million CAD and $98.1 million USD. The net effect of these swaps is to lock in an exchange rate of $1.05 CAD per USD on approximately $13.5 million of annual CAD denominated cash flows on the properties through June 2018. The effective portion of changes in the fair value of foreign currency derivatives designated and that qualify as cash flow hedges of foreign exchange risk is recorded in AOCI and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivative, as well as amounts excluded from the assessment of hedge effectiveness, is recognized directly in earnings. No hedge ineffectiveness on foreign currency derivatives was recognized for the six months ended June 30, 2016 and 2015 . As of June 30, 2016 , the Company estimates t hat during the twelve months ending June 30, 2017, $2.4 million of gains will be reclassified from AOCI to other income. Net Investment Hedges As discussed above, the Company is exposed to fluctuations in foreign exchange rates on its four Canadian properties. As such, the Company uses currency forward agreements to hedge its exposure to changes in foreign exchange rates. Currency forward agreements involve fixing the USD-CAD exchange rate for delivery of a specified amount of foreign currency on a specified date. The currency forward agreements are typically cash settled in USD for their fair value at or close to their settlement date. In order to hedge the net investment in four of the Canadian properties, on June 13, 2013 the Company entered into a forward contract with a fixed notional value of $100.0 million CAD and $94.3 million USD with a July 2018 settlement. The exchange rate of this forward contract is approximately $1.06 CAD per USD. Additionally, on February 28, 2014, the Company entered into a forward contract with a fixed notional value of $100.0 million CAD and $88.1 million USD with a July 2018 settlement date. The exchange rate of this forward contract is approximately $1.13 CAD per USD. These forward contracts should hedge a significant portion of the Company’s CAD denominated net investment in these four centers through July 2018 as the impact on AOCI from marking the derivative to market should move in the opposite direction of the translation adjustment on the net assets of these four Canadian properties. For foreign currency derivatives designated as net investment hedges, the effective portion of changes in the fair value of the derivatives are reported in AOCI as part of the cumulative translation adjustment. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. No hedge ineffectiveness on net investment hedges was recognized for the six months ended June 30, 2016 and 2015 . Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. Below is a summary of the effect of derivative instruments on the consolidated statements of changes in equity and income for the three and six months ended June 30, 2016 and 2015 . Effect of Derivative Instruments on the Consolidated Statements of Changes in Equity and Income for the Three and Six Months Ended June 30, 2016 and 2015 (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Description 2016 2015 2016 2015 Interest Rate Swaps Amount of Loss Recognized in AOCI on Derivative (Effective Portion) $ (1,769 ) $ (285 ) $ (6,626 ) $ (1,787 ) Amount of Expense Reclassified from AOCI into Earnings (Effective Portion) (1) (1,339 ) (442 ) (2,653 ) (885 ) Cross Currency Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) (88 ) (508 ) (1,438 ) 2,554 Amount of Income Reclassified from AOCI into Earnings (Effective Portion) (2) 595 483 1,314 1,029 Currency Forward Agreements Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) (31 ) (1,978 ) (7,554 ) 10,013 Amount of Income Reclassified from AOCI into Earnings (Effective Portion) (2) — — — — Total Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) $ (1,888 ) $ (2,771 ) $ (15,618 ) $ 10,780 Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) (744 ) 41 (1,339 ) 144 (1) Included in "Interest expense, net" in the accompanying consolidated statements of income for the three and six months ended June 30, 2016 and 2015 . (2) Included in "Other income" in the accompanying consolidated statements of income for the three and six months ended June 30, 2016 and 2015 . Credit-risk-related Contingent Features The Company has agreements with each of its interest rate derivative counterparties that contain a provision where if the Company defaults on any of its obligations for borrowed money or credit in an amount exceeding $25.0 million and such default is not waived or cured within a specified period of time, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its interest rate derivative obligations. As of June 30, 2016 , the fair value of the Company’s derivatives in a liability position related to these agreements was $9.6 million . If the Company breached any of the contractual provisions of these derivative contracts, it would be required to settle its obligations under the agreements at their termination value, after considering the right of offset, of $1.0 million . |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The Company has certain financial instruments that are required to be measured under the FASB’s Fair Value Measurements and Disclosures guidance. The Company currently does not have any non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. As a basis for considering market participant assumptions in fair value measurements, the FASB’s Fair Value Measurements and Disclosures guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Derivative Financial Instruments The Company uses interest rate swaps, foreign currency forwards and cross-currency swaps to manage its interest rate and foreign currency risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. In conjunction with the FASB's fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives also use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. As of June 30, 2016 , the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives and therefore, classified its derivatives as Level 2 within the fair value reporting hierarchy. The table below presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 aggregated by the level in the fair value hierarchy within which those measurements are classified and by derivative type. Assets and Liabilities Measured at Fair Value on a Recurring Basis at June 30, 2016 and December 31, 2015 (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 June 30, 2016 Cross-Currency Swaps* $ — $ 4,823 $ — $ 4,823 Currency Forward Agreements* $ — $ 27,032 $ — $ 27,032 Interest Rate Swap Agreements** $ — $ (9,646 ) $ — $ (9,646 ) December 31, 2015: Cross-Currency Swaps* $ — $ 7,575 $ — $ 7,575 Currency Forward Agreements* $ — $ 34,587 $ — $ 34,587 Interest Rate Swap Agreements** $ — $ (5,674 ) $ — $ (5,674 ) *Included in "Other assets" in the accompanying consolidated balance sheet. **Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheet. Non-recurring fair value measurements There were no assets or liabilities measured at fair value on a non-recurring basis during the six months ended June 30, 2016 and 2015. Fair Value of Financial Instruments Management compares the carrying value to the estimated fair value of the Company’s financial instruments. The following methods and assumptions were used by the Company to estimate the fair value of each class of financial instruments at June 30, 2016 and December 31, 2015 : Mortgage notes receivable and related accrued interest receivable: The fair value of the Company’s mortgage notes and related accrued interest receivable is estimated by discounting the future cash flows of each instrument using current market rates. At June 30, 2016 , the Company had a carrying value of $424.9 million in fixed rate mortgage notes receivable outstanding, including related accrued interest, with a weighted average interest rate of approximately 9.33% . The fixed rate mortgage notes bear interest at rates of 5.50% to 11.31% . Discounting the future cash flows for fixed rate mortgage notes receivable using rates of 8.00% to 11.31% , management estimates the fair value of the fixed rate mortgage notes receivable to be approximately $417.9 million with an estimated weighted average market rate of 10.02% at June 30, 2016 . At December 31, 2015 , the Company had a carrying value of $423.8 million in fixed rate mortgage notes receivable outstanding, including related accrued interest, with a weighted average interest rate of approximately 9.36% . The fixed rate mortgage notes bear interest at rates of 5.50% to 11.31% . Discounting the future cash flows for fixed rate mortgage notes receivable using rates of 8.50% to 11.31% , management estimates the fair value of the fixed rate mortgage notes receivable to be $415.7 million with an estimated weighted average market rate of 10.05% at December 31, 2015 . Investment in a direct financing lease, net: The fair value of the Company’s investment in a direct financing lease is estimated by discounting the future cash flows of the instrument using current market rates. At June 30, 2016 and December 31, 2015 , the Company had an investment in a direct financing lease with a carrying value of $188.4 million and $190.9 million , respectively, and a weighted average effective interest rate of 12.00% for both periods. The investment in a direct financing lease bears interest at effective interest rates of 11.74% to 12.38% . The carrying value of the investment in a direct financing lease approximated the fair market value at June 30, 2016 and December 31, 2015 . Derivative instruments: Derivative instruments are carried at their fair market value. Debt instruments: The fair value of the Company's debt is estimated by discounting the future cash flows of each instrument using current market rates. At June 30, 2016 , the Company had a carrying value of $722.0 million in variable rate debt outstanding with a weighted average interest rate of approximately 2.46% . The carrying value of the variable rate debt outstanding approximated the fair market value at June 30, 2016 . At December 31, 2015 , the Company had a carrying value of $571.0 million in variable rate debt outstanding with an average weighted interest rate of approximately 1.65% . The carrying value of the variable rate debt outstanding approximated the fair market value at December 31, 2015 . At June 30, 2016 and December 31, 2015 , $300.0 million of variable rate debt outstanding under the Company's unsecured term loan facility had been effectively converted to a fixed rate through April 5, 2019 by interest rate swap agreements. At June 30, 2016 , the Company had a carrying value of $1.39 billion in fixed rate long-term debt outstanding with a weighted average interest rate of approximately 5.65% . Discounting the future cash flows for fixed rate debt using rates of 3.13% to 4.60% , management estimates the fair value of the fixed rate debt to be approximately $1.53 billion with an estimated weighted average market rate of 3.90% at June 30, 2016 . At December 31, 2015 , the Company had a carrying value of $1.43 billion in fixed rate long-term debt outstanding with an average weighted interest rate of approximately 5.66% . Discounting the future cash flows for fixed rate debt using rates of 3.33% to 4.94% , management estimates the fair value of the fixed rate debt to be approximately $1.55 billion with an estimated weighted average market rate of 4.28% at December 31, 2015 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table summarizes the Company’s computation of basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2016 and 2015 (amounts in thousands except per share information): Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Income (numerator) Shares (denominator) Per Share Amount Income Shares Per Share Basic EPS: Income from continuing operations $ 55,135 $ 109,315 Less: preferred dividend requirements (5,952 ) (11,904 ) Net income available to common shareholders $ 49,183 63,592 $ 0.77 $ 97,411 63,128 $ 1.54 Diluted EPS: Income from continuing operations available to common shareholders $ 49,183 63,592 $ 97,411 63,128 Effect of dilutive securities: Share options — 86 — 85 Net income available to common shareholders $ 49,183 63,678 $ 0.77 $ 97,411 63,213 $ 1.54 Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Income Shares Per Share Income Shares Per Share Basic EPS: Income from continuing operations $ 48,698 $ 91,529 Less: preferred dividend requirements (5,952 ) (11,904 ) Income from continuing operations available to common shareholders $ 42,746 57,200 $ 0.75 $ 79,625 57,156 $ 1.39 Income from discontinued operations available to common shareholders $ 68 57,200 $ — $ 58 57,156 $ — Net income available to common shareholders $ 42,814 57,200 $ 0.75 $ 79,683 57,156 $ 1.39 Diluted EPS: Income from continuing operations available to common shareholders $ 42,746 57,200 $ 79,625 57,156 Effect of dilutive securities: Share options — 246 — 252 Income from continuing operations available to common shareholders $ 42,746 57,446 $ 0.75 $ 79,625 57,408 $ 1.39 Income from discontinued operations available to common shareholders $ 68 57,446 $ — $ 58 57,408 $ — Net income available to common shareholders $ 42,814 57,446 $ 0.75 $ 79,683 57,408 $ 1.39 The additional 2.0 million common shares that would result from the conversion of the Company’s 5.75% Series C cumulative convertible preferred shares and the additional 1.6 million common shares that would result from the conversion of the Company’s 9.0% Series E cumulative convertible preferred shares and the corresponding add-back of the preferred dividends declared on those shares are not included in the calculation of diluted earnings per share for the three and six months ended June 30, 2016 and 2015 because the effect is anti-dilutive. The dilutive effect of potential common shares from the exercise of share options is included in diluted earnings per share for the three and six months ended June 30, 2016 and 2015 . For the three months ended June 30, 2016 and 2015 , options to purchase 84 thousand and 313 thousand shares of common shares, respectively, at a per share price of $61.79 for the three months ended June 30, 2016 and per share prices ranging from $51.64 to $65.50 for the three months ended June 30, 2015 , were not included in the computation of diluted earnings per share because the options were anti-dilutive. For the six months ended June 30, 2016 and 2015 , options to purchase 85 thousand and 312 thousand shares of common shares, respectively, at a per share price of $61.79 for the six months ended June 30, 2016 and per share prices ranging from $51.64 to $65.50 for the six months ended June 30, 2015 , were not included in the computation of diluted earnings per share because the options were anti-dilutive. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
Equity Incentive Plans | Equity Incentive Plan All grants of common shares and options to purchase common shares were issued under the Company's 2007 Equity Incentive Plan prior to May 12, 2016 and under the 2016 Equity Incentive Plan on and after May 12, 2016. Under the 2016 Equity Incentive Plan, an aggregate of 1,950,000 common shares, options to purchase common shares and restricted share units, subject to adjustment in the event of certain capital events, may be granted. At June 30, 2016 , there were 1,950,000 shares available for grant under the 2016 Equity Incentive Plan. Share Options Share options granted under the 2007 Equity Incentive Plan and the 2016 Equity Incentive Plan have exercise prices equal to the fair market value of a common share at the date of grant. The options may be granted for any reasonable term, not to exceed 10 years, and for employees typically become exercisable at a rate of 25% per year over a four-year period. The Company generally issues new common shares upon option exercise. A summary of the Company’s share option activity and related information is as follows: Number of options Option price per share Weighted avg. exercise price Outstanding at December 31, 2015 516,305 $ 19.02 — $ 65.50 $ 48.42 Exercised (128,027 ) 19.41 — 65.50 38.13 Outstanding at June 30, 2016 388,278 $ 19.02 — $ 65.50 $ 51.81 There were no options granted during the six months ended June 30, 2016 . The weighted average fair value of options granted was $16.35 during the six months ended June 30, 2015 . The intrinsic value of stock options exercised was $3.4 million and $0.3 million for the six months ended June 30, 2016 and 2015 , respectively. Additionally, the Company repurchased 86,337 shares into treasury shares in conjunction with the stock options exercised during the six months ended June 30, 2016 with a total value of $5.6 million . At June 30, 2016 , stock-option expense to be recognized in future periods was $1.4 million . The expense related to share options included in the determination of net income for the six months ended June 30, 2016 and 2015 was $0.5 million and $1.9 million (including $1.4 million included in retirement severance expense in the accompanying consolidated statements of income), respectively. The following assumptions were used in applying the Black-Scholes option pricing model at the grant dates for the six months ended June 30, 2015 : risk-free interest rate of 1.9% , dividend yield of 5.9% , volatility factors in the expected market price of the Company’s common shares of 48.0% , 0.78% expected forfeiture rate and an expected life of approximately six years. The Company uses historical data to estimate the expected life of the option and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Additionally, expected volatility is computed based on the average historical volatility of the Company’s publicly traded shares. The following table summarizes outstanding options at June 30, 2016 : Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $ 19.02 - 19.99 11,097 2.9 20.00 - 29.99 — — 30.00 - 39.99 1,428 3.5 40.00 - 49.99 160,251 4.8 50.00 - 59.99 100,820 7.2 60.00 - 65.50 114,682 6.7 388,278 5.9 $ 51.81 $ 11,210 The following table summarizes exercisable options at June 30, 2016 : Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $ 19.02 - 19.99 11,097 2.9 20.00 - 29.99 — — 30.00 - 39.99 1,428 3.5 40.00 - 49.99 145,971 4.6 50.00 - 59.99 48,679 6.9 60.00 - 65.50 48,697 4.0 255,872 4.8 $ 49.48 $ 7,982 Nonvested Shares A summary of the Company’s nonvested share activity and related information is as follows: Number of shares Weighted avg. grant date fair value Weighted avg. life remaining Outstanding at December 31, 2015 390,441 $ 54.84 Granted 300,752 61.53 Vested (156,767 ) 52.73 Forfeited — — Outstanding at June 30, 2016 534,426 $ 59.22 1.52 The holders of nonvested shares have voting rights and receive dividends from the date of grant. These shares vest ratably over a period of three to four years. The fair value of the nonvested shares that vested was $9.2 million and $17.1 million (including $6.7 million in retirement severance expense in the accompanying consolidated statements of income) for the six months ended June 30, 2016 and 2015 , respectively. At June 30, 2016 , unamortized share-based compensation expense related to nonvested shares was $21.8 million . Restricted Share Units A summary of the Company’s restricted share unit activity and related information is as follows: Number of shares Weighted avg. grant date fair value Weighted avg. life remaining Outstanding at December 31, 2015 18,036 $ 57.57 Granted 15,805 70.93 Vested (18,036 ) 57.57 Outstanding at June 30, 2016 15,805 $ 70.93 0.86 The holders of restricted share units receive dividend equivalents from the date of grant. The share units vest upon the earlier of the day preceding the next annual meeting of shareholders or a change of control. The settlement date for the shares is selected by the non-employee Trustee, and ranges from one year from the grant date to upon termination of service. At June 30, 2016 , unamortized share-based compensation expense related to restricted share units was $934 thousand . |
Other Commitments And Contingen
Other Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments And Contingencies | Other Commitments and Contingencies As of June 30, 2016 , the Company had an aggregate of approximately $340.0 million of commitments to fund development projects including 16 entertainment development projects for which it had commitments to fund approximately $77.3 million , 25 education development projects for which it had commitments to fund approximately $192.8 million , and seven recreation development projects for which it had commitments to fund approximately $69.9 million . Development costs are advanced by the Company in periodic draws. If the Company determines that construction is not being completed in accordance with the terms of the development agreement, it can discontinue funding construction draws. The Company has agreed to lease the properties to the operators at pre-determined rates upon completion of construction. Additionally as of June 30, 2016 , the Company had a commitment to fund approximately $120.0 million over the next three years, of which none has been funded, to complete an indoor waterpark hotel and adventure park at the Adelaar casino and resort project in Sullivan County, New York. The Company is also responsible for the construction of the casino and resort project common infrastructure. In June 2016, the Sullivan County Infrastructure Local Development Corporation issued $110.0 million of Series 2016 Revenue Bonds which is expected to fund a substantial portion of such construction costs. The Company received an initial reimbursement of $43.4 million of construction costs and expects to receive an additional $44.9 million of reimbursements over the balance of the construction period. Construction of infrastructure improvements is expected to be completed in 2017. The Company has certain commitments related to its mortgage note investments that it may be required to fund in the future. The Company is generally obligated to fund these commitments at the request of the borrower or upon the occurrence of events outside of its direct control. As of June 30, 2016 , the Company had four mortgage notes receivable with commitments totaling approximately $14.3 million . If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. The Company has provided guarantees of the payment of certain economic development revenue bonds totaling $22.9 million related to two theatres in Louisiana for which the Company earns a fee at annual rates of 2.88% to 4.00% over the 30-year terms of the related bonds. The Company recorded $9.6 million as a deferred asset included in other assets and $9.6 million included in other liabilities in the accompanying consolidated balance sheet as of June 30, 2016 related to these guarantees. No amounts have been accrued as a loss contingency related to these guarantees because payment by the Company is not probable. In connection with construction of its development projects and related infrastructure, certain public agencies require posting of surety bonds to guarantee that the Company's obligations are satisfied. These bonds expire upon the completion of the improvements or infrastructure. As of June 30, 2016 , the Company had three surety bonds outstanding totaling $21.7 million . Prior proposed casino and resort developers Concord Associates, L.P., Concord Resort, LLC and Concord Kiamesha LLC, which are affiliates of Louis Cappelli and from whom the Company acquired the Adelaar resort property (the Cappelli Group), commenced litigation against the Company beginning in 2011 regarding matters relating to the acquisition of that property and our relationship with the Empire Resorts, Inc. This litigation involves three separate cases filed in state and federal court. The first case was filed on June 7, 2011 by the Cappelli Group in the Supreme Court of the State of New York, County of Sullivan, against two subsidiaries of the Company. The Company obtained a summary judgment on June 30, 2014 in this case which was affirmed on appeal. As a result, this case is now closed. The second case was filed on October 20, 2011 by the Cappelli Group against the Company and two of its affiliates in the Supreme Court of the State of New York, County of Westchester (Westchester Action), asserting a claim for breach of contract and the implied covenant of good faith, and seeking damages of at least $800 million , based on the same allegations as in the action the Cappelli Group filed in Sullivan County Supreme Court. The Company moved to dismiss the Amended Complaint in Westchester County based on the Sullivan County Supreme Court’s June 30, 2014 decision (which has now been affirmed). On January 26, 2016, the Westchester County Supreme Court denied the Company's motion to dismiss but ordered the Cappelli Group to amend its pleading and remove all claims and allegations previously determined by the Sullivan County case (discussed above). On February 18, 2016, the Cappelli Group revised their amended complaint, which the Company believes remains deficient. On March 23, 2016, the Company filed with the Westchester County Supreme Court a motion to dismiss the Cappelli Group’s revised amended complaint. The motion is currently pending. The third case was filed with the United States District Court for the Southern District of New York (the District Court) by Concord Associates L.P. and six other companies affiliated with Mr. Cappelli against the Company and certain of its subsidiaries, Empire Resorts, Inc. and Monticello Raceway Management, Inc. (collectively, Empire), and Kien Huat Realty III Limited and Genting New York LLC (collectively, Genting). The complaint alleged, among other things, that the Company had conspired with Empire to monopolize the racing and gaming market in the Catskills by entering into exclusivity and development agreements to develop a comprehensive resort destination in Sullivan County, New York. The plaintiffs were seeking $500 million in damages (trebled to $1.5 billion under antitrust law), punitive damages, and injunctive relief. On September 18, 2013, the District Court dismissed the complaint filed. Specifically, the District Court dismissed plaintiffs’ federal antitrust claims against all defendants with prejudice, and dismissed the pendent state law claims against Empire and Genting without prejudice, meaning they could be further pursued in state court. On October 2, 2013, the plaintiffs filed a motion for reconsideration with the District Court, seeking permission to file a Second Amended Complaint, and soon after filed a Notice of Appeal. The District Court denied the motion for reconsideration in an Opinion and Order dated November 3, 2014, and the plaintiffs perfected their appeal in the Second Circuit on or about December 17, 2014. On March 18, 2016, the Second Circuit affirmed the District Court’s dismissal of the case in favor of the Company, Empire and Genting. The plaintiffs did not file a writ of certiorari seeking review by the Supreme Court of the United States within the required time period. As a result, this case is now closed. The Company has not determined that losses related to the remaining Westchester Action are probable. In light of the inherent difficulty of predicting the outcome of litigation generally, the Company does not have sufficient information to determine the amount or range of reasonably possible loss with respect to these matters. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. The Company intends to vigorously defend the claims asserted against the Company and certain of its subsidiaries by the Cappelli Group and its affiliates, for which the Company believes it has meritorious defenses, but there can be no assurances as to the outcome of the claims and related litigation. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company groups investments into four reportable operating segments: Entertainment, Education, Recreation and Other. The financial information summarized below is presented by reportable operating segment: Balance Sheet Data: As of June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Total Assets $ 2,112,267 $ 1,102,309 $ 1,014,430 $ 180,363 $ 50,855 $ 4,460,224 As of December 31, 2015 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Total Assets $ 2,006,926 $ 1,013,930 $ 935,266 $ 203,757 $ 57,391 $ 4,217,270 Operating Data: Three Months Ended June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 61,258 $ 17,717 $ 14,789 $ 2,291 $ — $ 96,055 Tenant reimbursements 3,891 — — — — 3,891 Other income 210 — 1,321 — 595 2,126 Mortgage and other financing income 1,481 7,178 7,268 34 — 15,961 Total revenue 66,840 24,895 23,378 2,325 595 118,033 Property operating expense 5,335 — — 103 142 5,580 Total investment expenses 5,335 — — 103 142 5,580 Net operating income - before unallocated items 61,505 24,895 23,378 2,222 453 112,453 Reconciliation to Consolidated Statements of Income: General and administrative expense (9,000 ) Costs associated with loan refinancing or payoff (339 ) Interest expense, net (22,756 ) Transaction costs (1,490 ) Depreciation and amortization (25,666 ) Equity in income from joint ventures 86 Gain on sale of real estate 2,270 Income tax expense (423 ) Net income attributable to EPR Properties 55,135 Preferred dividend requirements (5,952 ) Net income available to common shareholders of EPR Properties $ 49,183 Three Months Ended June 30, 2015 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 59,829 $ 10,803 $ 7,228 $ — $ — $ 77,860 Tenant reimbursements 3,965 — — — — 3,965 Other income 501 — — 63 584 1,148 Mortgage and other financing income 1,782 7,793 8,613 97 — 18,285 Total revenue 66,077 18,596 15,841 160 584 101,258 Property operating expense 5,692 — — 78 — 5,770 Other expense — — — 210 — 210 Total investment expenses 5,692 — — 288 — 5,980 Net operating income - before unallocated items 60,385 18,596 15,841 (128 ) 584 95,278 Reconciliation to Consolidated Statements of Income: General and administrative expense (7,756 ) Costs associated with loan refinancing or payoff (243 ) Interest expense, net (20,007 ) Transaction costs (4,429 ) Depreciation and amortization (21,849 ) Equity in income from joint ventures 198 Income tax benefit 7,506 Discontinued operations: Income from discontinued operations 68 Net income attributable to EPR Properties 48,766 Preferred dividend requirements (5,952 ) Net income available to common shareholders of EPR Properties $ 42,814 Six Months Ended June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 121,396 $ 34,897 $ 29,485 $ 4,055 $ — $ 189,833 Tenant reimbursements 7,754 2 — — — 7,756 Other income 214 — 1,810 — 1,312 3,336 Mortgage and other financing income 3,633 17,909 14,266 68 — 35,876 Total revenue 132,997 52,808 45,561 4,123 1,312 236,801 Property operating expense 10,587 — 8 186 280 11,061 Other expense — — — 5 — 5 Total investment expenses 10,587 — 8 191 280 11,066 Net operating income - before unallocated items 122,410 52,808 45,553 3,932 1,032 225,735 Reconciliation to Consolidated Statements of Income: General and administrative expense (18,218 ) Costs associated with loan refinancing or payoff (891 ) Interest expense, net (46,045 ) Transaction costs (1,934 ) Depreciation and amortization (51,621 ) Equity in income from joint ventures 298 Gain on sale of real estate 2,270 Income tax expense (279 ) Net income attributable to EPR Properties 109,315 Preferred dividend requirements (11,904 ) Net income available to common shareholders of EPR Properties $ 97,411 Six Months Ended June 30, 2015 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 119,770 $ 20,897 $ 13,933 $ — $ — $ 154,600 Tenant reimbursements 8,291 — — (23 ) — 8,268 Other income 503 — — 63 1,132 1,698 Mortgage and other financing income 3,564 15,577 16,794 193 — 36,128 Total revenue 132,128 36,474 30,727 233 1,132 200,694 Property operating expense 11,986 — — 141 — 12,127 Other expense — — — 312 — 312 Total investment expenses 11,986 — — 453 — 12,439 Net operating income - before unallocated items 120,142 36,474 30,727 (220 ) 1,132 188,255 Reconciliation to Consolidated Statements of Income: General and administrative expense (15,438 ) Retirement severance expense (18,578 ) Costs associated with loan refinancing or payoff (243 ) Interest expense, net (38,594 ) Transaction costs (6,035 ) Depreciation and amortization (41,204 ) Equity in income from joint ventures 362 Gain on sale of real estate 23,924 Income tax expense (920 ) Discontinued operations: Income from discontinued operations 58 Net income attributable to EPR Properties 91,587 Preferred dividend requirements (11,904 ) Net income available to common shareholders of EPR Properties $ 79,683 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 6 Months Ended |
Jun. 30, 2016 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements A portion of the Company's subsidiaries have guaranteed the Company’s indebtedness under the Company's unsecured senior notes and combined unsecured revolving credit and term loan facility. The guarantees are joint and several, full and unconditional and subject to customary release provisions. The following summarizes the Company’s condensed consolidating information as of June 30, 2016 and December 31, 2015 and for the three and six months ended June 30, 2016 and 2015 (in thousands): Condensed Consolidating Balance Sheet As of June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Assets Rental properties, net $ — $ 2,851,873 $ 479,908 $ — $ 3,331,781 Land held for development — 1,258 21,272 — 22,530 Property under development 25 258,473 43,107 — 301,605 Mortgage notes and related accrued interest receivable — 422,175 2,700 — 424,875 Investment in a direct financing lease, net — 188,386 — — 188,386 Investment in joint ventures — — 5,955 — 5,955 Cash and cash equivalents 4,574 927 2,961 — 8,462 Restricted cash 460 14,640 1,514 — 16,614 Accounts receivable, net 424 51,356 10,281 — 62,061 Intercompany notes receivable — 175,757 — (175,757 ) — Investments in subsidiaries 4,099,500 — — (4,099,500 ) — Other assets 23,234 20,920 53,801 — 97,955 Total assets $ 4,128,217 $ 3,985,765 $ 621,499 $ (4,275,257 ) $ 4,460,224 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 51,919 $ 35,930 $ 3,281 $ — $ 91,130 Dividends payable 26,312 — — — 26,312 Unearned rents and interest — 49,040 758 — 49,798 Intercompany notes payable — — 175,757 (175,757 ) — Debt 1,855,267 — 242,998 — 2,098,265 Total liabilities 1,933,498 84,970 422,794 (175,757 ) 2,265,505 Total equity 2,194,719 3,900,795 198,705 (4,099,500 ) 2,194,719 Total liabilities and equity $ 4,128,217 $ 3,985,765 $ 621,499 $ (4,275,257 ) $ 4,460,224 Condensed Consolidating Balance Sheet As of December 31, 2015 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Assets Rental properties, net $ — $ 2,546,267 $ 478,932 $ — $ 3,025,199 Land held for development — 1,258 22,352 — 23,610 Property under development — 324,360 54,560 — 378,920 Mortgage notes and related accrued interest receivable — 400,935 22,845 — 423,780 Investment in a direct financing lease, net — 190,880 — — 190,880 Investment in joint ventures — — 6,168 — 6,168 Cash and cash equivalents 1,089 946 2,248 — 4,283 Restricted cash 475 8,571 1,532 — 10,578 Accounts receivable, net 285 47,921 10,895 — 59,101 Intercompany notes receivable — 175,757 — (175,757 ) — Investments in subsidiaries 3,825,897 — — (3,825,897 ) — Other assets 23,053 10,607 61,091 — 94,751 Total assets $ 3,850,799 $ 3,707,502 $ 660,623 $ (4,001,654 ) $ 4,217,270 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 49,671 $ 39,033 $ 3,474 $ — $ 92,178 Dividends payable 24,352 — — — 24,352 Unearned rents and interest — 44,012 940 — 44,952 Intercompany notes payable — — 175,757 (175,757 ) — Debt 1,702,908 24,742 254,270 — 1,981,920 Total liabilities 1,776,931 107,787 434,441 (175,757 ) 2,143,402 Total equity 2,073,868 3,599,715 226,182 (3,825,897 ) 2,073,868 Total liabilities and equity $ 3,850,799 $ 3,707,502 $ 660,623 $ (4,001,654 ) $ 4,217,270 Condensed Consolidating Statement of Income Three Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 80,658 $ 15,397 $ — $ 96,055 Tenant reimbursements — 1,372 2,519 — 3,891 Other income — 1,329 797 — 2,126 Mortgage and other financing income 212 15,659 90 — 15,961 Intercompany fee income 688 — — (688 ) — Interest income on intercompany notes receivable — 2,453 — (2,453 ) — Total revenue 900 101,471 18,803 (3,141 ) 118,033 Equity in subsidiaries’ earnings 78,883 — — (78,883 ) — Property operating expense — 2,554 3,026 — 5,580 Intercompany fee expense — — 688 (688 ) — General and administrative expense — 7,588 1,412 — 9,000 Costs associated with loan refinancing or payoff — 339 — — 339 Interest expense, net 22,437 (2,553 ) 2,872 — 22,756 Interest expense on intercompany notes payable — — 2,453 (2,453 ) — Transaction costs 1,394 — 96 — 1,490 Depreciation and amortization 446 21,397 3,823 — 25,666 Income before equity in income from joint ventures and other items 55,506 72,146 4,433 (78,883 ) 53,202 Equity in income from joint ventures — — 86 — 86 Gain on sale of real estate — 2,270 — — 2,270 Income before income taxes 55,506 74,416 4,519 (78,883 ) 55,558 Income tax expense (371 ) — (52 ) — (423 ) Net income attributable to EPR Properties 55,135 74,416 4,467 (78,883 ) 55,135 Preferred dividend requirements (5,952 ) — — — (5,952 ) Net income available to common shareholders of EPR Properties $ 49,183 $ 74,416 $ 4,467 $ (78,883 ) $ 49,183 Comprehensive income attributable to EPR Properties $ 54,912 $ 74,416 $ 4,673 $ (79,089 ) $ 54,912 Condensed Consolidating Statement of Income Three Months Ended June 30, 2015 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 61,970 $ 15,890 $ — $ 77,860 Tenant reimbursements — 1,265 2,700 — 3,965 Other income — 1 1,147 — 1,148 Mortgage and other financing income 212 15,175 2,898 — 18,285 Intercompany fee income 708 — — (708 ) — Interest income on intercompany notes receivable — 2,558 — (2,558 ) — Total revenue 920 80,969 22,635 (3,266 ) 101,258 Equity in subsidiaries’ earnings 73,172 — — (73,172 ) — Property operating expense — 2,702 3,068 — 5,770 Intercompany fee expense — — 708 (708 ) — Other expense — — 210 — 210 General and administrative expense — 6,037 1,719 — 7,756 Costs associated with loan refinancing or payoff 243 — — — 243 Interest expense, net 19,824 (2,884 ) 3,067 — 20,007 Interest expense on intercompany notes payable — — 2,558 (2,558 ) — Transaction costs 4,238 — 191 — 4,429 Depreciation and amortization 386 17,859 3,604 — 21,849 Income before equity in income from joint ventures and other items 49,401 57,255 7,510 (73,172 ) 40,994 Equity in income from joint ventures — — 198 — 198 Income before income taxes 49,401 57,255 7,708 (73,172 ) 41,192 Income tax benefit (expense) (635 ) — 8,141 — 7,506 Income from continuing operations 48,766 57,255 15,849 (73,172 ) 48,698 Discontinued operations: Income from discontinued operations — 68 — — 68 Net income attributable to EPR Properties 48,766 57,323 15,849 (73,172 ) 48,766 Preferred dividend requirements (5,952 ) — — — (5,952 ) Net income available to common shareholders of EPR Properties $ 42,814 $ 57,323 $ 15,849 $ (73,172 ) $ 42,814 Comprehensive income attributable to EPR Properties $ 48,344 $ 57,323 $ 15,270 $ (72,593 ) $ 48,344 Condensed Consolidating Statement of Income Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 159,252 $ 30,581 $ — $ 189,833 Tenant reimbursements — 2,721 5,035 — 7,756 Other income — 1,820 1,516 — 3,336 Mortgage and other financing income 424 31,678 3,774 — 35,876 Intercompany fee income 1,341 — — (1,341 ) — Interest income on intercompany notes receivable — 4,789 — (4,789 ) — Total revenue 1,765 200,260 40,906 (6,130 ) 236,801 Equity in subsidiaries’ earnings 155,670 — — (155,670 ) — Property operating expense — 5,215 5,846 — 11,061 Intercompany fee expense — — 1,341 (1,341 ) — Other expense — — 5 — 5 General and administrative expense — 15,118 3,100 — 18,218 Costs associated with loan refinancing — 339 552 — 891 Interest expense, net 44,627 (4,404 ) 5,822 — 46,045 Interest expense on intercompany notes payable — — 4,789 (4,789 ) — Transaction costs 1,837 — 97 — 1,934 Depreciation and amortization 889 43,194 7,538 — 51,621 Income before equity in income from joint ventures and other items 110,082 140,798 11,816 (155,670 ) 107,026 Equity in income from joint ventures — — 298 — 298 Gain on sale of real estate — 2,270 — — 2,270 Income before income taxes 110,082 143,068 12,114 (155,670 ) 109,594 Income tax benefit (expense) (767 ) — 488 — (279 ) Net income attributable to EPR Properties 109,315 143,068 12,602 (155,670 ) 109,315 Preferred dividend requirements (11,904 ) — — — (11,904 ) Net income available to common shareholders of EPR Properties $ 97,411 $ 143,068 $ 12,602 $ (155,670 ) $ 97,411 Comprehensive income attributable to EPR Properties $ 107,178 $ 143,068 $ 14,437 $ (157,505 ) $ 107,178 Condensed Consolidating Statement of Income Six Months Ended June 30, 2015 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 122,633 $ 31,967 $ — $ 154,600 Tenant reimbursements — 2,674 5,594 — 8,268 Other income — 2 1,696 — 1,698 Mortgage and other financing income 424 30,304 5,400 — 36,128 Intercompany fee income 1,397 — — (1,397 ) — Interest income on intercompany notes receivable 111 4,949 — (5,060 ) — Total revenue 1,932 160,562 44,657 (6,457 ) 200,694 Equity in subsidiaries’ earnings 152,312 — — (152,312 ) — Property operating expense — 5,776 6,351 — 12,127 Intercompany fee expense — — 1,397 (1,397 ) — Other expense — — 312 — 312 General and administrative expense — 12,034 3,404 — 15,438 Retirement severance expense 18,578 — — — 18,578 Costs associated with loan refinancing or payoff 243 — — — 243 Interest expense, net 36,184 (3,739 ) 6,149 — 38,594 Interest expense on intercompany notes payable — — 5,060 (5,060 ) — Transaction costs 5,736 — 299 — 6,035 Depreciation and amortization 778 33,203 7,223 — 41,204 Income before equity in income from joint ventures and other items 92,725 113,288 14,462 (152,312 ) 68,163 Equity in income from joint ventures — — 362 — 362 Gain on sale of real estate — 23,748 176 — 23,924 Income before income taxes 92,725 137,036 15,000 (152,312 ) 92,449 Income tax benefit (expense) (1,138 ) — 218 — (920 ) Income from continuing operations 91,587 137,036 15,218 (152,312 ) 91,529 Discontinued operations: Income from discontinued operations — 58 — — 58 Net income attributable to EPR Properties 91,587 137,094 15,218 (152,312 ) 91,587 Preferred dividend requirements (11,904 ) — — — (11,904 ) Net income available to common shareholders of EPR Properties $ 79,683 $ 137,094 $ 15,218 $ (152,312 ) $ 79,683 Comprehensive income attributable to EPR Properties $ 87,311 $ 137,047 $ 11,890 $ (148,937 ) $ 87,311 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,341 $ — $ (1,341 ) $ — Interest income (expense) on intercompany receivable/payable — 4,789 (4,789 ) — Net cash provided (used) by other operating activities (43,623 ) 169,576 26,579 152,532 Net cash provided (used) by operating activities (42,282 ) 174,365 20,449 152,532 Investing activities: Acquisition of rental properties and other assets (107 ) (138,578 ) (103 ) (138,788 ) Proceeds from sale of real estate — 11,652 1,477 13,129 Investment in mortgage notes receivable — (65,508 ) — (65,508 ) Proceeds from mortgage note receivable paydown — 44,365 19,320 63,685 Proceeds from sale of infrastructure related to issuance of revenue bonds — 43,462 — 43,462 Proceeds from insurance recovery — 1,810 401 2,211 Proceeds from sale of investments in a direct financing lease, net — 825 — 825 Additions to property under development (25 ) (184,213 ) (2,978 ) (187,216 ) Advances to subsidiaries, net (110,593 ) 136,555 (25,962 ) — Net cash used by investing activities (110,725 ) (149,630 ) (7,845 ) (268,200 ) Financing activities: Proceeds from long-term debt facilities 318,000 — — 318,000 Principal payments on long-term debt (167,000 ) (24,754 ) (11,362 ) (203,116 ) Deferred financing fees paid (161 ) — (8 ) (169 ) Costs associated with loan refinancing or payoff (cash portion) — — (472 ) (472 ) Net proceeds from issuance of common shares 142,279 — — 142,279 Impact of stock option exercises, net (717 ) — — (717 ) Purchase of common shares for treasury for vesting (4,208 ) — — (4,208 ) Dividends paid to shareholders (131,701 ) — — (131,701 ) Net cash provided (used) by financing activities 156,492 (24,754 ) (11,842 ) 119,896 Effect of exchange rate changes on cash — — (49 ) (49 ) Net increase (decrease) in cash and cash equivalents 3,485 (19 ) 713 4,179 Cash and cash equivalents at beginning of the period 1,089 946 2,248 4,283 Cash and cash equivalents at end of the period $ 4,574 $ 927 $ 2,961 $ 8,462 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,397 $ — $ (1,397 ) $ — Interest income (expense) on intercompany receivable/payable 111 4,949 (5,060 ) — Net cash provided (used) by other operating activities (52,121 ) 141,186 30,816 119,881 Net cash provided (used) by operating activities of continuing operations (50,613 ) 146,135 24,359 119,881 Net cash provided by operating activities of discontinued operations — 526 — 526 Net cash provided (used) by operating activities (50,613 ) 146,661 24,359 120,407 Investing activities: Acquisition of rental properties and other assets (280 ) (92,932 ) (9 ) (93,221 ) Proceeds from sale of real estate — 42,709 1,081 43,790 Investment in mortgage note receivable — (5,541 ) (30,048 ) (35,589 ) Proceeds from mortgage note receivable paydown — 308 — 308 Proceeds from sale of investments in a direct financing lease, net — 4,741 — 4,741 Additions to property under development (4 ) (196,096 ) (10,855 ) (206,955 ) Advances to subsidiaries, net (216,606 ) 195,583 21,023 — Net cash used by investing activities (216,890 ) (51,228 ) (18,808 ) (286,926 ) Financing activities: Proceeds from long-term debt facilities 403,914 155,000 — 558,914 Principal payments on long-term debt (5,000 ) (249,898 ) (4,761 ) (259,659 ) Deferred financing fees paid (6,848 ) (6 ) — (6,854 ) Net proceeds from issuance of common shares 240 — — 240 Impact of stock option exercises, net (35 ) — — (35 ) Purchase of common shares for treasury for vesting (8,223 ) — — (8,223 ) Dividends paid to shareholders (114,600 ) — — (114,600 ) Net cash provided (used) by financing activities 269,448 (94,904 ) (4,761 ) 169,783 Effect of exchange rate changes on cash — (17 ) (437 ) (454 ) Net increase in cash and cash equivalents 1,945 512 353 2,810 Cash and cash equivalents at beginning of the period (1,234 ) 1,837 2,733 3,336 Cash and cash equivalents at end of the period $ 711 $ 2,349 $ 3,086 $ 6,146 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs Deferred financing costs are amortized over the terms of the related debt obligations or mortgage note receivable as applicable. The Company early adopted the FASB issued Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt Issue Costs , during 2015 and applied the guidance retrospectively. Deferred financing costs of $16.8 million and $18.3 million as of June 30, 2016 and December 31, 2015, respectively, are shown as a reduction of debt. The deferred financing costs related to our unsecured revolving credit facility are included in other assets. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. In addition, operating results for the six month period ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The Company consolidates certain entities when it is deemed to be the primary beneficiary in a variable interest entity (VIE) in which it has a controlling financial interest. A controlling financial interest will have both of the following characteristics: the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. This topic requires an ongoing reassessment. The equity method of accounting is applied to entities in which the Company is not the primary beneficiary as defined in the Consolidation Topic of the FASB ASC, or does not have effective control, but can exercise influence over the entity with respect to its operations and major decisions. The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission (SEC) on February 25, 2016. |
Operating Segments | Operating Segments For financial reporting purposes, the Company groups its investments into four reportable operating segments: Entertainment, Education, Recreation and Other. See Note 14 for financial information related to these operating segments. |
Rental Properties | Rental Properties Rental properties are carried at cost less accumulated depreciation. Costs incurred for the acquisition and development of the properties are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally are estimated to be 30 to 40 years for buildings and 3 to 25 years for furniture, fixtures and equipment. Tenant improvements, including allowances, are depreciated over the shorter of the base term of the lease or the estimated useful life. Expenditures for ordinary maintenance and repairs are charged to operations in the period incurred. Significant renovations and improvements that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful life. Management reviews a property for impairment whenever events or changes in circumstances indicate that the carrying value of a property may not be recoverable. The review of recoverability is based on an estimate of undiscounted future cash flows expected to result from its use and eventual disposition. If impairment exists due to the inability to recover the carrying value of the property, an impairment loss is recorded to the extent that the carrying value of the property exceeds its estimated fair value. The Company evaluates the held-for-sale classification of its real estate as of the end of each quarter. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value less costs to sell. Assets are generally classified as held for sale once management has initiated an active program to market them for sale and has received a firm purchase commitment that is expected to close within one year. On occasion, the Company will receive unsolicited offers from third parties to buy individual Company properties. Under these circumstances, the Company will classify the properties as held for sale when a sales contract is executed with no contingencies and the prospective buyer has funds at risk to ensure performance. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts The Company makes estimates of the collectability of its accounts receivable related to base rents, tenant escalations (straight-line rents), reimbursements and other income. The Company specifically analyzes trends in accounts receivable, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of its allowance for doubtful accounts. When evaluating customer creditworthiness, management reviews the periodic financial statements for significant tenants and specifically evaluates the strength and material changes in net operating income, coverage ratios, leverage and other factors to assess the tenant's credit quality. In addition, when customers are in bankruptcy, the Company makes estimates of the expected recovery through bankruptcy claims and increases the allowance for amounts deemed uncollectible. These estimates have a direct impact on the Company's net income. |
Revenue Recognition | Revenue Recognition Rents that are fixed and determinable are recognized on a straight-line basis over the minimum term of the leases. Base rent escalation on leases that are dependent upon increases in the Consumer Price Index (CPI) is recognized when known. In addition, most of the Company's tenants are subject to additional rents if gross revenues of the properties exceed certain thresholds defined in the lease agreements (percentage rents). Percentage rents as well as participating interest for those mortgage agreements that contain similar such clauses are recognized at the time when specific triggering events occur as provided by the lease or mortgage agreements. Rental revenue included percentage rents of $1.0 million and $0.4 million for the six months ended June 30, 2016 and 2015 , respectively. The Company recognized no participating interest income in mortgage and other financing income for both the six months ended June 30, 2016 and 2015 . For the six months ended June 30, 2016 , mortgage and other financing income included a $3.6 million prepayment fee related to a mortgage note that was paid fully in advance of its maturity date. Direct financing lease income is recognized on the effective interest method to produce a level yield on funds not yet recovered. Estimated unguaranteed residual values at the date of lease inception represent management's initial estimates of fair value of the leased assets at the expiration of the lease, not to exceed original cost. Significant assumptions used in estimating residual values include estimated net cash flows over the remaining lease term and expected future real estate values. The Company evaluates on an annual basis (or more frequently, if necessary) the collectability of its direct financing lease receivable and unguaranteed residual value to determine whether they are impaired. A direct financing lease receivable is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the existing contractual terms. When a direct financing lease receivable is considered to be impaired, the amount of loss is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the direct financing lease receivable's effective interest rate or to the fair value of the underlying collateral, less costs to sell, if such receivable is collateralized. |
Mortgage Notes And Other Notes Receivable | Mortgage Notes and Other Notes Receivable Mortgage notes and other notes receivable, including related accrued interest receivable, consist of loans originated by the Company and the related accrued and unpaid interest income as of the balance sheet date. Mortgage notes and other notes receivable are initially recorded at the amount advanced to the borrower and the Company defers certain loan origination and commitment fees, net of certain origination costs, and amortizes them over the term of the related loan. Interest income on performing loans is accrued as earned. The Company evaluates the collectability of both interest and principal of each of its loans to determine whether it is impaired. A loan is considered to be impaired when, based on current information and events, the Company determines that it is probable that it will be unable to collect all amounts due according to the existing contractual terms. An insignificant delay or shortfall in amounts of payments does not necessarily result in the loan being identified as impaired. When a loan is considered to be impaired, the amount of loss, if any, is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the loan’s effective interest rate or to the fair value of the Company’s interest in the underlying collateral, less costs to sell, if the loan is collateral dependent. For impaired loans, interest income is recognized on a cash basis, unless the Company determines based on the loan to estimated fair value ratio the loan should be on the cost recovery method, and any cash payments received would then be reflected as a reduction of principal. Interest income recognition is recommenced if and when the impaired loan becomes contractually current and performance is demonstrated to be resumed. |
Concentrations Of Risk | Concentrations of Risk American Multi-Cinema, Inc. (AMC) is the lessee of a substantial portion ( 24% ) of the megaplex theatre rental properties held by the Company at June 30, 2016 primarily as a result of a series of sale leaseback transactions pertaining to AMC megaplex theatres. A substantial portion of the Company’s total revenues (approximately $43.6 million or 18% and $42.7 million or 21% , for the six months ended June 30, 2016 and 2015 , respectively) results from the revenue from AMC under the leases or from its parent, AMC Entertainment, Inc. (AMCE) as the guarantor of AMC’s obligations under the leases. AMCE is wholly owned by AMC Entertainment Holdings, Inc. (AMCEH). AMCEH is a publicly held company (NYSE: AMC) and its consolidated financial information is publicly available at www.sec.gov. |
Share-Based Compensation | Share-Based Compensation Share-based compensation to employees of the Company is granted pursuant to the Company's Annual Incentive Program and Long-Term Incentive Plan and share-based compensation to non-employee Trustees of the Company is granted pursuant to the Company's Trustee compensation program. Prior to May 12, 2016, share-based compensation granted to employees and non-employee Trustees were issued under the 2007 Equity Incentive Plan. The 2016 Equity Incentive Plan was approved by shareholders at the May 11, 2016 annual shareholder meeting and this plan replaces the 2007 Equity Incentive Plan. Accordingly, all share-based compensation granted on or after May 12, 2016 will be issued under the 2016 Equity Incentive Plan. Share-based compensation expense consists of share option expense and amortization of nonvested share grants issued to employees, and amortization of share units issued to non-employee Trustees for payment of their annual retainers. Share-based compensation included in general and administrative expense in the accompanying consolidated statements of income totaled $5.5 million and $4.1 million for the six months ended June 30, 2016 and 2015 , respectively. Share-based compensation included in retirement severance expense in the accompanying consolidated statements of income totaled $6.4 million for the six months ended June 30, 2015 and related to the retirement of the Company's former President and Chief Executive Officer. |
Share Options | Share Options Share options are granted to employees pursuant to the Long-Term Incentive Plan. The fair value of share options granted is estimated at the date of grant using the Black-Scholes option pricing model. Share options granted to employees vest over a period of four years and share option expense for these options is recognized on a straight-line basis over the vesting period. Expense recognized related to share options and included in general and administrative expense in the accompanying consolidated statements of income was $460 thousand and $550 thousand for the six months ended June 30, 2016 and 2015 , respectively. Expense recognized related to share options and included in retirement severance expense in the accompanying consolidated statements of income was $1.4 million for the six months ended June 30, 2015 and related to the retirement of the Company's former President and Chief Executive Officer. |
Nonvested Shares Issued To Employees | Nonvested Shares Issued to Employees The Company grants nonvested shares to employees pursuant to both the Annual Incentive Program and the Long-Term Incentive Plan. The Company amortizes the expense related to the nonvested shares awarded to employees under the Long-Term Incentive Plan and the premium awarded under the nonvested share alternative of the Annual Incentive Program on a straight-line basis over the future vesting period ( three or four years). Expense recognized related to nonvested shares and included in general and administrative expense in the accompanying consolidated statements of income was $4.5 million and $3.0 million for the six months ended June 30, 2016 and 2015 , respectively. Expense related to nonvested shares and included in retirement severance expense in the accompanying consolidated statements of income was $5.0 million for the six months ended June 30, 2015 and related to the retirement of the Company's former President and Chief Executive Officer. |
Restricted Share Units Issued To Non-Employee Trustees | Restricted Share Units Issued to Non-Employee Trustees The Company issues restricted share units to non-employee Trustees for payment of their annual retainers under the Company's Trustee compensation program. The fair value of the share units granted was based on the share price at the date of grant. The share units vest upon the earlier of the day preceding the next annual meeting of shareholders or a change of control. The settlement date for the shares is selected by the non-employee Trustee, and ranges from one year from the grant date to upon termination of service. This expense is amortized by the Company on a straight-line basis over the year of service by the non-employee Trustees. Total expense recognized related to shares issued to non-employee Trustees was $533 thousand and $524 thousand for the six months ended June 30, 2016 and 2015 , respectively. |
Derivative Instruments | Derivative Instruments The Company has acquired certain derivative instruments to reduce exposure to fluctuations in foreign currency exchange rates and variable interest rates. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. These derivatives consist of foreign currency forward contracts, cross-currency swaps and interest rate swaps. The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company's policy is to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
New Accounting Pronouncements, Policy [Policy Text Block] | Impact of Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The ASU does not apply to revenue recognition for lease contracts. In April 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard which was approved in July 2015. The new standard will become effective for the Company beginning with the first quarter 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2016, the FASB issued ASU No. 2016-02, Leases, which amends existing accounting standards for lease accounting and is intended to improve financial reporting about lease transactions. The ASU will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Lessor accounting will remain largely unchanged from current GAAP. The ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact that ASU 2016-02 will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. The objective of this amendment is part of the FASB's Simplification Initiative as it applies to several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification of cash flows. The effective date of the amendment is for fiscal years beginning after December 15, 2016. The Company is currently reviewing the ASU to assess the potential impact on the consolidated financial statements and related disclosures but does not expect the adoption will have a material impact on the Company's financial position or results of operations. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which amends ASC Topic 326, Financial Instruments - Credit Losses. The standard changes the methodology for measuring credit losses on financial instruments and timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. |
Rental Properties (Tables)
Rental Properties (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate [Abstract] | |
Summary Of Carrying Amounts Of Rental Properties | The following table summarizes the carrying amounts of rental properties as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Buildings and improvements $ 3,003,423 $ 2,837,611 Furniture, fixtures & equipment 38,743 34,423 Land 873,463 687,468 3,915,629 3,559,502 Accumulated depreciation (583,848 ) (534,303 ) Total $ 3,331,781 $ 3,025,199 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable | The following table summarizes the carrying amounts of accounts receivable, net as of June 30, 2016 and December 31, 2015 (in thousands): June 30, December 31, Receivable from tenants $ 4,658 $ 9,999 Receivable from non-tenants 401 353 Straight-line rent receivable 57,858 52,336 Allowance for doubtful accounts (856 ) (3,587 ) Total $ 62,061 $ 59,101 |
Investments In Direct Financi26
Investments In Direct Financing Lease (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | |
Summary Of Carrying Amounts Of Investments In Direct Financing Leases, Net | The following table summarizes the carrying amounts of investment in a direct financing lease, net as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Total minimum lease payments receivable $ 421,262 $ 439,646 Estimated unguaranteed residual value of leased assets 159,303 162,669 Less deferred income (1) (392,179 ) (411,435 ) Investment in a direct financing lease, net $ 188,386 $ 190,880 (1) Deferred income is net of $1.3 million and $1.4 million of initial direct costs at June 30, 2016 and December 31, 2015 , respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Derivative Instruments [Abstract] | |
Summary Of The Effect Of Derivative Instruments On The Consolidated Statements Of Changes In Equity And Income | Below is a summary of the effect of derivative instruments on the consolidated statements of changes in equity and income for the three and six months ended June 30, 2016 and 2015 . Effect of Derivative Instruments on the Consolidated Statements of Changes in Equity and Income for the Three and Six Months Ended June 30, 2016 and 2015 (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Description 2016 2015 2016 2015 Interest Rate Swaps Amount of Loss Recognized in AOCI on Derivative (Effective Portion) $ (1,769 ) $ (285 ) $ (6,626 ) $ (1,787 ) Amount of Expense Reclassified from AOCI into Earnings (Effective Portion) (1) (1,339 ) (442 ) (2,653 ) (885 ) Cross Currency Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) (88 ) (508 ) (1,438 ) 2,554 Amount of Income Reclassified from AOCI into Earnings (Effective Portion) (2) 595 483 1,314 1,029 Currency Forward Agreements Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) (31 ) (1,978 ) (7,554 ) 10,013 Amount of Income Reclassified from AOCI into Earnings (Effective Portion) (2) — — — — Total Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) $ (1,888 ) $ (2,771 ) $ (15,618 ) $ 10,780 Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) (744 ) 41 (1,339 ) 144 (1) Included in "Interest expense, net" in the accompanying consolidated statements of income for the three and six months ended June 30, 2016 and 2015 . (2) Included in "Other income" in the accompanying consolidated statements of income for the three and six months ended June 30, 2016 and 2015 . |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets Measured At Fair Value On A Recurring Basis | The table below presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 aggregated by the level in the fair value hierarchy within which those measurements are classified and by derivative type. Assets and Liabilities Measured at Fair Value on a Recurring Basis at June 30, 2016 and December 31, 2015 (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 June 30, 2016 Cross-Currency Swaps* $ — $ 4,823 $ — $ 4,823 Currency Forward Agreements* $ — $ 27,032 $ — $ 27,032 Interest Rate Swap Agreements** $ — $ (9,646 ) $ — $ (9,646 ) December 31, 2015: Cross-Currency Swaps* $ — $ 7,575 $ — $ 7,575 Currency Forward Agreements* $ — $ 34,587 $ — $ 34,587 Interest Rate Swap Agreements** $ — $ (5,674 ) $ — $ (5,674 ) *Included in "Other assets" in the accompanying consolidated balance sheet. **Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheet. |
Assets And Liabilities Measured At Fair Value On A Non-Recurring Basis | There were no assets or liabilities measured at fair value on a non-recurring basis during the six months ended June 30, 2016 and 2015. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | The following table summarizes the Company’s computation of basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2016 and 2015 (amounts in thousands except per share information): Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Income (numerator) Shares (denominator) Per Share Amount Income Shares Per Share Basic EPS: Income from continuing operations $ 55,135 $ 109,315 Less: preferred dividend requirements (5,952 ) (11,904 ) Net income available to common shareholders $ 49,183 63,592 $ 0.77 $ 97,411 63,128 $ 1.54 Diluted EPS: Income from continuing operations available to common shareholders $ 49,183 63,592 $ 97,411 63,128 Effect of dilutive securities: Share options — 86 — 85 Net income available to common shareholders $ 49,183 63,678 $ 0.77 $ 97,411 63,213 $ 1.54 Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Income Shares Per Share Income Shares Per Share Basic EPS: Income from continuing operations $ 48,698 $ 91,529 Less: preferred dividend requirements (5,952 ) (11,904 ) Income from continuing operations available to common shareholders $ 42,746 57,200 $ 0.75 $ 79,625 57,156 $ 1.39 Income from discontinued operations available to common shareholders $ 68 57,200 $ — $ 58 57,156 $ — Net income available to common shareholders $ 42,814 57,200 $ 0.75 $ 79,683 57,156 $ 1.39 Diluted EPS: Income from continuing operations available to common shareholders $ 42,746 57,200 $ 79,625 57,156 Effect of dilutive securities: Share options — 246 — 252 Income from continuing operations available to common shareholders $ 42,746 57,446 $ 0.75 $ 79,625 57,408 $ 1.39 Income from discontinued operations available to common shareholders $ 68 57,446 $ — $ 58 57,408 $ — Net income available to common shareholders $ 42,814 57,446 $ 0.75 $ 79,683 57,408 $ 1.39 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
Summary Of Share Option Activity | A summary of the Company’s share option activity and related information is as follows: Number of options Option price per share Weighted avg. exercise price Outstanding at December 31, 2015 516,305 $ 19.02 — $ 65.50 $ 48.42 Exercised (128,027 ) 19.41 — 65.50 38.13 Outstanding at June 30, 2016 388,278 $ 19.02 — $ 65.50 $ 51.81 |
Summary Of Outstanding Options | The following table summarizes outstanding options at June 30, 2016 : Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $ 19.02 - 19.99 11,097 2.9 20.00 - 29.99 — — 30.00 - 39.99 1,428 3.5 40.00 - 49.99 160,251 4.8 50.00 - 59.99 100,820 7.2 60.00 - 65.50 114,682 6.7 388,278 5.9 $ 51.81 $ 11,210 |
Summary Of Exercisable Options | The following table summarizes exercisable options at June 30, 2016 : Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $ 19.02 - 19.99 11,097 2.9 20.00 - 29.99 — — 30.00 - 39.99 1,428 3.5 40.00 - 49.99 145,971 4.6 50.00 - 59.99 48,679 6.9 60.00 - 65.50 48,697 4.0 255,872 4.8 $ 49.48 $ 7,982 |
Summary Of Nonvested Share Activity | A summary of the Company’s nonvested share activity and related information is as follows: Number of shares Weighted avg. grant date fair value Weighted avg. life remaining Outstanding at December 31, 2015 390,441 $ 54.84 Granted 300,752 61.53 Vested (156,767 ) 52.73 Forfeited — — Outstanding at June 30, 2016 534,426 $ 59.22 1.52 |
Summary Of Restricted Share Unit Activity | A summary of the Company’s restricted share unit activity and related information is as follows: Number of shares Weighted avg. grant date fair value Weighted avg. life remaining Outstanding at December 31, 2015 18,036 $ 57.57 Granted 15,805 70.93 Vested (18,036 ) 57.57 Outstanding at June 30, 2016 15,805 $ 70.93 0.86 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Operating Segments | Segment Information The Company groups investments into four reportable operating segments: Entertainment, Education, Recreation and Other. The financial information summarized below is presented by reportable operating segment: Balance Sheet Data: As of June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Total Assets $ 2,112,267 $ 1,102,309 $ 1,014,430 $ 180,363 $ 50,855 $ 4,460,224 As of December 31, 2015 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Total Assets $ 2,006,926 $ 1,013,930 $ 935,266 $ 203,757 $ 57,391 $ 4,217,270 Operating Data: Three Months Ended June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 61,258 $ 17,717 $ 14,789 $ 2,291 $ — $ 96,055 Tenant reimbursements 3,891 — — — — 3,891 Other income 210 — 1,321 — 595 2,126 Mortgage and other financing income 1,481 7,178 7,268 34 — 15,961 Total revenue 66,840 24,895 23,378 2,325 595 118,033 Property operating expense 5,335 — — 103 142 5,580 Total investment expenses 5,335 — — 103 142 5,580 Net operating income - before unallocated items 61,505 24,895 23,378 2,222 453 112,453 Reconciliation to Consolidated Statements of Income: General and administrative expense (9,000 ) Costs associated with loan refinancing or payoff (339 ) Interest expense, net (22,756 ) Transaction costs (1,490 ) Depreciation and amortization (25,666 ) Equity in income from joint ventures 86 Gain on sale of real estate 2,270 Income tax expense (423 ) Net income attributable to EPR Properties 55,135 Preferred dividend requirements (5,952 ) Net income available to common shareholders of EPR Properties $ 49,183 Three Months Ended June 30, 2015 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 59,829 $ 10,803 $ 7,228 $ — $ — $ 77,860 Tenant reimbursements 3,965 — — — — 3,965 Other income 501 — — 63 584 1,148 Mortgage and other financing income 1,782 7,793 8,613 97 — 18,285 Total revenue 66,077 18,596 15,841 160 584 101,258 Property operating expense 5,692 — — 78 — 5,770 Other expense — — — 210 — 210 Total investment expenses 5,692 — — 288 — 5,980 Net operating income - before unallocated items 60,385 18,596 15,841 (128 ) 584 95,278 Reconciliation to Consolidated Statements of Income: General and administrative expense (7,756 ) Costs associated with loan refinancing or payoff (243 ) Interest expense, net (20,007 ) Transaction costs (4,429 ) Depreciation and amortization (21,849 ) Equity in income from joint ventures 198 Income tax benefit 7,506 Discontinued operations: Income from discontinued operations 68 Net income attributable to EPR Properties 48,766 Preferred dividend requirements (5,952 ) Net income available to common shareholders of EPR Properties $ 42,814 Six Months Ended June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 121,396 $ 34,897 $ 29,485 $ 4,055 $ — $ 189,833 Tenant reimbursements 7,754 2 — — — 7,756 Other income 214 — 1,810 — 1,312 3,336 Mortgage and other financing income 3,633 17,909 14,266 68 — 35,876 Total revenue 132,997 52,808 45,561 4,123 1,312 236,801 Property operating expense 10,587 — 8 186 280 11,061 Other expense — — — 5 — 5 Total investment expenses 10,587 — 8 191 280 11,066 Net operating income - before unallocated items 122,410 52,808 45,553 3,932 1,032 225,735 Reconciliation to Consolidated Statements of Income: General and administrative expense (18,218 ) Costs associated with loan refinancing or payoff (891 ) Interest expense, net (46,045 ) Transaction costs (1,934 ) Depreciation and amortization (51,621 ) Equity in income from joint ventures 298 Gain on sale of real estate 2,270 Income tax expense (279 ) Net income attributable to EPR Properties 109,315 Preferred dividend requirements (11,904 ) Net income available to common shareholders of EPR Properties $ 97,411 Six Months Ended June 30, 2015 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 119,770 $ 20,897 $ 13,933 $ — $ — $ 154,600 Tenant reimbursements 8,291 — — (23 ) — 8,268 Other income 503 — — 63 1,132 1,698 Mortgage and other financing income 3,564 15,577 16,794 193 — 36,128 Total revenue 132,128 36,474 30,727 233 1,132 200,694 Property operating expense 11,986 — — 141 — 12,127 Other expense — — — 312 — 312 Total investment expenses 11,986 — — 453 — 12,439 Net operating income - before unallocated items 120,142 36,474 30,727 (220 ) 1,132 188,255 Reconciliation to Consolidated Statements of Income: General and administrative expense (15,438 ) Retirement severance expense (18,578 ) Costs associated with loan refinancing or payoff (243 ) Interest expense, net (38,594 ) Transaction costs (6,035 ) Depreciation and amortization (41,204 ) Equity in income from joint ventures 362 Gain on sale of real estate 23,924 Income tax expense (920 ) Discontinued operations: Income from discontinued operations 58 Net income attributable to EPR Properties 91,587 Preferred dividend requirements (11,904 ) Net income available to common shareholders of EPR Properties $ 79,683 |
Condensed Consolidating Finan32
Condensed Consolidating Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Assets Rental properties, net $ — $ 2,851,873 $ 479,908 $ — $ 3,331,781 Land held for development — 1,258 21,272 — 22,530 Property under development 25 258,473 43,107 — 301,605 Mortgage notes and related accrued interest receivable — 422,175 2,700 — 424,875 Investment in a direct financing lease, net — 188,386 — — 188,386 Investment in joint ventures — — 5,955 — 5,955 Cash and cash equivalents 4,574 927 2,961 — 8,462 Restricted cash 460 14,640 1,514 — 16,614 Accounts receivable, net 424 51,356 10,281 — 62,061 Intercompany notes receivable — 175,757 — (175,757 ) — Investments in subsidiaries 4,099,500 — — (4,099,500 ) — Other assets 23,234 20,920 53,801 — 97,955 Total assets $ 4,128,217 $ 3,985,765 $ 621,499 $ (4,275,257 ) $ 4,460,224 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 51,919 $ 35,930 $ 3,281 $ — $ 91,130 Dividends payable 26,312 — — — 26,312 Unearned rents and interest — 49,040 758 — 49,798 Intercompany notes payable — — 175,757 (175,757 ) — Debt 1,855,267 — 242,998 — 2,098,265 Total liabilities 1,933,498 84,970 422,794 (175,757 ) 2,265,505 Total equity 2,194,719 3,900,795 198,705 (4,099,500 ) 2,194,719 Total liabilities and equity $ 4,128,217 $ 3,985,765 $ 621,499 $ (4,275,257 ) $ 4,460,224 Condensed Consolidating Balance Sheet As of December 31, 2015 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Assets Rental properties, net $ — $ 2,546,267 $ 478,932 $ — $ 3,025,199 Land held for development — 1,258 22,352 — 23,610 Property under development — 324,360 54,560 — 378,920 Mortgage notes and related accrued interest receivable — 400,935 22,845 — 423,780 Investment in a direct financing lease, net — 190,880 — — 190,880 Investment in joint ventures — — 6,168 — 6,168 Cash and cash equivalents 1,089 946 2,248 — 4,283 Restricted cash 475 8,571 1,532 — 10,578 Accounts receivable, net 285 47,921 10,895 — 59,101 Intercompany notes receivable — 175,757 — (175,757 ) — Investments in subsidiaries 3,825,897 — — (3,825,897 ) — Other assets 23,053 10,607 61,091 — 94,751 Total assets $ 3,850,799 $ 3,707,502 $ 660,623 $ (4,001,654 ) $ 4,217,270 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 49,671 $ 39,033 $ 3,474 $ — $ 92,178 Dividends payable 24,352 — — — 24,352 Unearned rents and interest — 44,012 940 — 44,952 Intercompany notes payable — — 175,757 (175,757 ) — Debt 1,702,908 24,742 254,270 — 1,981,920 Total liabilities 1,776,931 107,787 434,441 (175,757 ) 2,143,402 Total equity 2,073,868 3,599,715 226,182 (3,825,897 ) 2,073,868 Total liabilities and equity $ 3,850,799 $ 3,707,502 $ 660,623 $ (4,001,654 ) $ 4,217,270 |
Condensed Consolidating Statement Of Income | Condensed Consolidating Statement of Income Three Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 80,658 $ 15,397 $ — $ 96,055 Tenant reimbursements — 1,372 2,519 — 3,891 Other income — 1,329 797 — 2,126 Mortgage and other financing income 212 15,659 90 — 15,961 Intercompany fee income 688 — — (688 ) — Interest income on intercompany notes receivable — 2,453 — (2,453 ) — Total revenue 900 101,471 18,803 (3,141 ) 118,033 Equity in subsidiaries’ earnings 78,883 — — (78,883 ) — Property operating expense — 2,554 3,026 — 5,580 Intercompany fee expense — — 688 (688 ) — General and administrative expense — 7,588 1,412 — 9,000 Costs associated with loan refinancing or payoff — 339 — — 339 Interest expense, net 22,437 (2,553 ) 2,872 — 22,756 Interest expense on intercompany notes payable — — 2,453 (2,453 ) — Transaction costs 1,394 — 96 — 1,490 Depreciation and amortization 446 21,397 3,823 — 25,666 Income before equity in income from joint ventures and other items 55,506 72,146 4,433 (78,883 ) 53,202 Equity in income from joint ventures — — 86 — 86 Gain on sale of real estate — 2,270 — — 2,270 Income before income taxes 55,506 74,416 4,519 (78,883 ) 55,558 Income tax expense (371 ) — (52 ) — (423 ) Net income attributable to EPR Properties 55,135 74,416 4,467 (78,883 ) 55,135 Preferred dividend requirements (5,952 ) — — — (5,952 ) Net income available to common shareholders of EPR Properties $ 49,183 $ 74,416 $ 4,467 $ (78,883 ) $ 49,183 Comprehensive income attributable to EPR Properties $ 54,912 $ 74,416 $ 4,673 $ (79,089 ) $ 54,912 Condensed Consolidating Statement of Income Three Months Ended June 30, 2015 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 61,970 $ 15,890 $ — $ 77,860 Tenant reimbursements — 1,265 2,700 — 3,965 Other income — 1 1,147 — 1,148 Mortgage and other financing income 212 15,175 2,898 — 18,285 Intercompany fee income 708 — — (708 ) — Interest income on intercompany notes receivable — 2,558 — (2,558 ) — Total revenue 920 80,969 22,635 (3,266 ) 101,258 Equity in subsidiaries’ earnings 73,172 — — (73,172 ) — Property operating expense — 2,702 3,068 — 5,770 Intercompany fee expense — — 708 (708 ) — Other expense — — 210 — 210 General and administrative expense — 6,037 1,719 — 7,756 Costs associated with loan refinancing or payoff 243 — — — 243 Interest expense, net 19,824 (2,884 ) 3,067 — 20,007 Interest expense on intercompany notes payable — — 2,558 (2,558 ) — Transaction costs 4,238 — 191 — 4,429 Depreciation and amortization 386 17,859 3,604 — 21,849 Income before equity in income from joint ventures and other items 49,401 57,255 7,510 (73,172 ) 40,994 Equity in income from joint ventures — — 198 — 198 Income before income taxes 49,401 57,255 7,708 (73,172 ) 41,192 Income tax benefit (expense) (635 ) — 8,141 — 7,506 Income from continuing operations 48,766 57,255 15,849 (73,172 ) 48,698 Discontinued operations: Income from discontinued operations — 68 — — 68 Net income attributable to EPR Properties 48,766 57,323 15,849 (73,172 ) 48,766 Preferred dividend requirements (5,952 ) — — — (5,952 ) Net income available to common shareholders of EPR Properties $ 42,814 $ 57,323 $ 15,849 $ (73,172 ) $ 42,814 Comprehensive income attributable to EPR Properties $ 48,344 $ 57,323 $ 15,270 $ (72,593 ) $ 48,344 Condensed Consolidating Statement of Income Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 159,252 $ 30,581 $ — $ 189,833 Tenant reimbursements — 2,721 5,035 — 7,756 Other income — 1,820 1,516 — 3,336 Mortgage and other financing income 424 31,678 3,774 — 35,876 Intercompany fee income 1,341 — — (1,341 ) — Interest income on intercompany notes receivable — 4,789 — (4,789 ) — Total revenue 1,765 200,260 40,906 (6,130 ) 236,801 Equity in subsidiaries’ earnings 155,670 — — (155,670 ) — Property operating expense — 5,215 5,846 — 11,061 Intercompany fee expense — — 1,341 (1,341 ) — Other expense — — 5 — 5 General and administrative expense — 15,118 3,100 — 18,218 Costs associated with loan refinancing — 339 552 — 891 Interest expense, net 44,627 (4,404 ) 5,822 — 46,045 Interest expense on intercompany notes payable — — 4,789 (4,789 ) — Transaction costs 1,837 — 97 — 1,934 Depreciation and amortization 889 43,194 7,538 — 51,621 Income before equity in income from joint ventures and other items 110,082 140,798 11,816 (155,670 ) 107,026 Equity in income from joint ventures — — 298 — 298 Gain on sale of real estate — 2,270 — — 2,270 Income before income taxes 110,082 143,068 12,114 (155,670 ) 109,594 Income tax benefit (expense) (767 ) — 488 — (279 ) Net income attributable to EPR Properties 109,315 143,068 12,602 (155,670 ) 109,315 Preferred dividend requirements (11,904 ) — — — (11,904 ) Net income available to common shareholders of EPR Properties $ 97,411 $ 143,068 $ 12,602 $ (155,670 ) $ 97,411 Comprehensive income attributable to EPR Properties $ 107,178 $ 143,068 $ 14,437 $ (157,505 ) $ 107,178 Condensed Consolidating Statement of Income Six Months Ended June 30, 2015 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 122,633 $ 31,967 $ — $ 154,600 Tenant reimbursements — 2,674 5,594 — 8,268 Other income — 2 1,696 — 1,698 Mortgage and other financing income 424 30,304 5,400 — 36,128 Intercompany fee income 1,397 — — (1,397 ) — Interest income on intercompany notes receivable 111 4,949 — (5,060 ) — Total revenue 1,932 160,562 44,657 (6,457 ) 200,694 Equity in subsidiaries’ earnings 152,312 — — (152,312 ) — Property operating expense — 5,776 6,351 — 12,127 Intercompany fee expense — — 1,397 (1,397 ) — Other expense — — 312 — 312 General and administrative expense — 12,034 3,404 — 15,438 Retirement severance expense 18,578 — — — 18,578 Costs associated with loan refinancing or payoff 243 — — — 243 Interest expense, net 36,184 (3,739 ) 6,149 — 38,594 Interest expense on intercompany notes payable — — 5,060 (5,060 ) — Transaction costs 5,736 — 299 — 6,035 Depreciation and amortization 778 33,203 7,223 — 41,204 Income before equity in income from joint ventures and other items 92,725 113,288 14,462 (152,312 ) 68,163 Equity in income from joint ventures — — 362 — 362 Gain on sale of real estate — 23,748 176 — 23,924 Income before income taxes 92,725 137,036 15,000 (152,312 ) 92,449 Income tax benefit (expense) (1,138 ) — 218 — (920 ) Income from continuing operations 91,587 137,036 15,218 (152,312 ) 91,529 Discontinued operations: Income from discontinued operations — 58 — — 58 Net income attributable to EPR Properties 91,587 137,094 15,218 (152,312 ) 91,587 Preferred dividend requirements (11,904 ) — — — (11,904 ) Net income available to common shareholders of EPR Properties $ 79,683 $ 137,094 $ 15,218 $ (152,312 ) $ 79,683 Comprehensive income attributable to EPR Properties $ 87,311 $ 137,047 $ 11,890 $ (148,937 ) $ 87,311 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,341 $ — $ (1,341 ) $ — Interest income (expense) on intercompany receivable/payable — 4,789 (4,789 ) — Net cash provided (used) by other operating activities (43,623 ) 169,576 26,579 152,532 Net cash provided (used) by operating activities (42,282 ) 174,365 20,449 152,532 Investing activities: Acquisition of rental properties and other assets (107 ) (138,578 ) (103 ) (138,788 ) Proceeds from sale of real estate — 11,652 1,477 13,129 Investment in mortgage notes receivable — (65,508 ) — (65,508 ) Proceeds from mortgage note receivable paydown — 44,365 19,320 63,685 Proceeds from sale of infrastructure related to issuance of revenue bonds — 43,462 — 43,462 Proceeds from insurance recovery — 1,810 401 2,211 Proceeds from sale of investments in a direct financing lease, net — 825 — 825 Additions to property under development (25 ) (184,213 ) (2,978 ) (187,216 ) Advances to subsidiaries, net (110,593 ) 136,555 (25,962 ) — Net cash used by investing activities (110,725 ) (149,630 ) (7,845 ) (268,200 ) Financing activities: Proceeds from long-term debt facilities 318,000 — — 318,000 Principal payments on long-term debt (167,000 ) (24,754 ) (11,362 ) (203,116 ) Deferred financing fees paid (161 ) — (8 ) (169 ) Costs associated with loan refinancing or payoff (cash portion) — — (472 ) (472 ) Net proceeds from issuance of common shares 142,279 — — 142,279 Impact of stock option exercises, net (717 ) — — (717 ) Purchase of common shares for treasury for vesting (4,208 ) — — (4,208 ) Dividends paid to shareholders (131,701 ) — — (131,701 ) Net cash provided (used) by financing activities 156,492 (24,754 ) (11,842 ) 119,896 Effect of exchange rate changes on cash — — (49 ) (49 ) Net increase (decrease) in cash and cash equivalents 3,485 (19 ) 713 4,179 Cash and cash equivalents at beginning of the period 1,089 946 2,248 4,283 Cash and cash equivalents at end of the period $ 4,574 $ 927 $ 2,961 $ 8,462 |
Condensed Consolidating Statement Of Cash Flows | Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,341 $ — $ (1,341 ) $ — Interest income (expense) on intercompany receivable/payable — 4,789 (4,789 ) — Net cash provided (used) by other operating activities (43,623 ) 169,576 26,579 152,532 Net cash provided (used) by operating activities (42,282 ) 174,365 20,449 152,532 Investing activities: Acquisition of rental properties and other assets (107 ) (138,578 ) (103 ) (138,788 ) Proceeds from sale of real estate — 11,652 1,477 13,129 Investment in mortgage notes receivable — (65,508 ) — (65,508 ) Proceeds from mortgage note receivable paydown — 44,365 19,320 63,685 Proceeds from sale of infrastructure related to issuance of revenue bonds — 43,462 — 43,462 Proceeds from insurance recovery — 1,810 401 2,211 Proceeds from sale of investments in a direct financing lease, net — 825 — 825 Additions to property under development (25 ) (184,213 ) (2,978 ) (187,216 ) Advances to subsidiaries, net (110,593 ) 136,555 (25,962 ) — Net cash used by investing activities (110,725 ) (149,630 ) (7,845 ) (268,200 ) Financing activities: Proceeds from long-term debt facilities 318,000 — — 318,000 Principal payments on long-term debt (167,000 ) (24,754 ) (11,362 ) (203,116 ) Deferred financing fees paid (161 ) — (8 ) (169 ) Costs associated with loan refinancing or payoff (cash portion) — — (472 ) (472 ) Net proceeds from issuance of common shares 142,279 — — 142,279 Impact of stock option exercises, net (717 ) — — (717 ) Purchase of common shares for treasury for vesting (4,208 ) — — (4,208 ) Dividends paid to shareholders (131,701 ) — — (131,701 ) Net cash provided (used) by financing activities 156,492 (24,754 ) (11,842 ) 119,896 Effect of exchange rate changes on cash — — (49 ) (49 ) Net increase (decrease) in cash and cash equivalents 3,485 (19 ) 713 4,179 Cash and cash equivalents at beginning of the period 1,089 946 2,248 4,283 Cash and cash equivalents at end of the period $ 4,574 $ 927 $ 2,961 $ 8,462 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,397 $ — $ (1,397 ) $ — Interest income (expense) on intercompany receivable/payable 111 4,949 (5,060 ) — Net cash provided (used) by other operating activities (52,121 ) 141,186 30,816 119,881 Net cash provided (used) by operating activities of continuing operations (50,613 ) 146,135 24,359 119,881 Net cash provided by operating activities of discontinued operations — 526 — 526 Net cash provided (used) by operating activities (50,613 ) 146,661 24,359 120,407 Investing activities: Acquisition of rental properties and other assets (280 ) (92,932 ) (9 ) (93,221 ) Proceeds from sale of real estate — 42,709 1,081 43,790 Investment in mortgage note receivable — (5,541 ) (30,048 ) (35,589 ) Proceeds from mortgage note receivable paydown — 308 — 308 Proceeds from sale of investments in a direct financing lease, net — 4,741 — 4,741 Additions to property under development (4 ) (196,096 ) (10,855 ) (206,955 ) Advances to subsidiaries, net (216,606 ) 195,583 21,023 — Net cash used by investing activities (216,890 ) (51,228 ) (18,808 ) (286,926 ) Financing activities: Proceeds from long-term debt facilities 403,914 155,000 — 558,914 Principal payments on long-term debt (5,000 ) (249,898 ) (4,761 ) (259,659 ) Deferred financing fees paid (6,848 ) (6 ) — (6,854 ) Net proceeds from issuance of common shares 240 — — 240 Impact of stock option exercises, net (35 ) — — (35 ) Purchase of common shares for treasury for vesting (8,223 ) — — (8,223 ) Dividends paid to shareholders (114,600 ) — — (114,600 ) Net cash provided (used) by financing activities 269,448 (94,904 ) (4,761 ) 169,783 Effect of exchange rate changes on cash — (17 ) (437 ) (454 ) Net increase in cash and cash equivalents 1,945 512 353 2,810 Cash and cash equivalents at beginning of the period (1,234 ) 1,837 2,733 3,336 Cash and cash equivalents at end of the period $ 711 $ 2,349 $ 3,086 $ 6,146 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Operating Segments | |||||
Number of Reportable Operating Segments | segment | 4 | ||||
Revenue Recognition [Abstract] | |||||
Percentage rents | $ 1,000,000 | $ 400,000 | |||
Mortgage And Other Participating Interest Income | 0 | 0 | |||
Concentrations of Risk [Abstract] | |||||
Rental revenue | $ 96,055,000 | $ 77,860,000 | 189,833,000 | 154,600,000 | |
Share-based Compensation [Abstract] | |||||
Share based compensation | $ 5,504,000 | 4,057,000 | |||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Range of settlement date for shares for non-employee trustee from grant date, minimum (in years) | 1 year | ||||
Share based compensation expense related to employees and trustees | $ 1,400,000 | ||||
Share-based compensation expense included in retirement severance expense | 0 | 6,377,000 | |||
Retirement severance expense | 0 | $ 0 | 0 | 18,578,000 | |
Deferred Costs | $ 16,800,000 | 16,800,000 | $ 18,300,000 | ||
Prepaymentfee | $ 3,600,000 | ||||
American Multi-Cinema, Inc. [Member] | |||||
Concentrations of Risk [Abstract] | |||||
Percent of megaplex theatre rental leased by AMC | 24.00% | ||||
Rental revenue | $ 43,600,000 | $ 42,700,000 | |||
Percentage of lease revenue in total revenue | 18.00% | 21.00% | |||
Minimum [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 3 years | ||||
Maximum [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Building [Member] | Minimum [Member] | |||||
Rental Properties [Abstract] | |||||
Estimated useful live of buildings (in years) | 30 years | ||||
Building [Member] | Maximum [Member] | |||||
Rental Properties [Abstract] | |||||
Estimated useful live of buildings (in years) | 40 years | ||||
Furniture, fixtures & equipment [Member] | Minimum [Member] | |||||
Rental Properties [Abstract] | |||||
Estimated useful live of buildings (in years) | 3 years | ||||
Furniture, fixtures & equipment [Member] | Maximum [Member] | |||||
Rental Properties [Abstract] | |||||
Estimated useful live of buildings (in years) | 25 years | ||||
Share Options [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Stock-option expense | $ 460,000 | $ 550,000 | |||
Restricted Stock [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation expense related to employees and trustees | $ 4,500,000 | 3,000,000 | |||
Restricted Stock [Member] | Minimum [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 3 years | ||||
Restricted Stock [Member] | Maximum [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Restricted Share Units [Member] | |||||
Share-based Compensation [Abstract] | |||||
Range of settlement date for shares for non-employee trustee from grant date, minimum (in years) | 1 year | ||||
Restricted Share Units [Member] | Non-Employee Trustees [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation expense related to employees and trustees | $ 533,000 | 524,000 | |||
Chief Executive Officer [Member] | Accelerated Vesting of Shares [Member] | Employee Severance [Member] | Share Options [Member] | |||||
Share-based Compensation [Abstract] | |||||
Retirement severance expense | 1,400,000 | ||||
Chief Executive Officer [Member] | Accelerated Vesting of Shares [Member] | Employee Severance [Member] | Nonvested Shares [Member] | |||||
Share-based Compensation [Abstract] | |||||
Retirement severance expense | $ 5,000,000 |
Rental Properties (Summary Of C
Rental Properties (Summary Of Carrying Amounts Of Rental Properties) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | $ 3,915,629 | $ 3,559,502 | |
Accumulated depreciation | (583,848) | (534,303) | |
Total | 3,331,781 | 3,025,199 | |
Depreciation expense on rental properties | 49,800 | $ 39,400 | |
Building and improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | 3,003,423 | 2,837,611 | |
Furniture, fixtures & equipment [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | 38,743 | 34,423 | |
Land [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | $ 873,463 | $ 687,468 |
Investments and Dispositions (D
Investments and Dispositions (Details) | Apr. 22, 2016USD ($)properties | Apr. 06, 2016USD ($) | Feb. 26, 2016USD ($) | Jan. 05, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) |
Real Estate Properties [Line Items] | ||||||||
Gain on sale of real estate | $ 2,270,000 | $ 0 | $ 2,270,000 | $ 23,924,000 | ||||
Payments to Acquire Productive Assets | 371,800,000 | |||||||
Proceeds from mortgage note receivable paydown | $ 63,685,000 | 308,000 | ||||||
Number of Reportable Operating Segments | segment | 4 | |||||||
Prepaymentfee | $ 3,600,000 | |||||||
Costs associated with loan refinancing or payoff | $ 339,000 | $ 243,000 | 891,000 | $ 243,000 | ||||
Theatre Properties [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Costs associated with loan refinancing or payoff | 472,000 | |||||||
Entertainment Reportable Operating Segment [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Payments to Acquire Productive Assets | $ 164,300,000 | |||||||
Entertainment Reportable Operating Segment [Member] | Theatre Properties [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Number of properties acquired (in properties) | 6 | |||||||
Payments to Acquire Productive Assets | $ 94,800,000 | |||||||
number of development properties | 10 | |||||||
Entertainment Reportable Operating Segment [Member] | Theatre Redevelopment Properties [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Number of properties acquired (in properties) | 1 | |||||||
number of development properties | 3 | |||||||
Entertainment Reportable Operating Segment [Member] | Entertainment Retail Center Properties [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Proceeds from mortgage note receivable paydown | $ 44,300,000 | |||||||
number of development properties | 4 | |||||||
number of properties sold | properties | 1 | |||||||
Costs associated with loan refinancing or payoff | $ 335,000 | |||||||
Education Reportable Operating Segment [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Payments to Acquire Productive Assets | $ 116,200,000 | |||||||
Education Reportable Operating Segment [Member] | Education Property Member | ||||||||
Real Estate Properties [Line Items] | ||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 11,200,000 | |||||||
Gain on sale of real estate | $ 2,300,000 | |||||||
Proceeds from mortgage note receivable paydown | $ 19,300,000 | |||||||
number of development properties | 25 | |||||||
Prepaymentfee | 3,600,000 | |||||||
Costs associated with loan refinancing or payoff | $ 80,000 | |||||||
Education Reportable Operating Segment [Member] | Private School Property [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
number of development properties | 3 | |||||||
Education Reportable Operating Segment [Member] | early childhood education center [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
number of development properties | 18 | |||||||
Recreation Reportable Operating Segment [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Payments to Acquire Productive Assets | $ 91,100,000 | |||||||
Recreation Reportable Operating Segment [Member] | TopGolf [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
number of development properties | 13 | |||||||
Recreation Reportable Operating Segment [Member] | Ski Resorts [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Number of properties acquired (in properties) | 1 | |||||||
Other Reportable Operating Segment [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 1,500,000 | |||||||
Gain on sale of real estate | $ 0 | |||||||
Payments to Acquire Productive Assets | $ 200,000 |
Accounts Receivable, Net (Sched
Accounts Receivable, Net (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Straight-line rent receivable | $ 57,858 | $ 52,336 |
Allowance for doubtful accounts | (856) | (3,587) |
Total | 62,061 | 59,101 |
Tenants [Member] | ||
Carrying amounts of accounts receivable | 4,658 | 9,999 |
Non-Tenants [Member] | ||
Carrying amounts of accounts receivable | $ 401 | $ 353 |
Investments In Direct Financi37
Investments In Direct Financing Lease (Narrative) (Details) | Apr. 13, 2016USD ($)properties | Jun. 30, 2016USD ($)properties | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)properties | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)properties |
Net Investment in Direct Financing and Sales Type Leases | $ 188,386,000 | $ 188,386,000 | $ 190,880,000 | |||
Capital Leases, Net Investment in Direct Financing Leases, Initial Direct Costs | 1,300,000 | 1,300,000 | 1,400,000 | |||
Allowance for lease losses | 0 | $ 0 | ||||
Gain on sale of real estate | $ 2,270,000 | $ 0 | $ 2,270,000 | $ 23,924,000 | ||
Future Minimum Rentals Receivable | The Company’s direct financing lease has expiration dates ranging from approximately 16 to 19 years. Future minimum rentals receivable on this direct financing lease at June 30, 2016 are as follows (in thousands): Amount Year: 2016 $ 9,786 2017 19,947 2018 20,546 2019 21,162 2020 21,797 Thereafter 328,024 Total $ 421,262 | |||||
Imagine Schools Member | ||||||
Net Investment in Direct Financing and Sales Type Leases | $ 4,000,000 | |||||
Number of public charter school properties (in properties) | properties | 20 | 20 | 21 | |||
Gain on sale of real estate | $ 0 | |||||
number of properties sold | properties | 1 |
Investments In Direct Financi38
Investments In Direct Financing Lease (Summary Of Carrying Amounts Of Investment In Direct Financing Lease, Net) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016USD ($)years | Dec. 31, 2015USD ($) | ||
Total minimum lease payments receivable | $ 421,262 | $ 439,646 | |
Estimated unguaranteed residual value of leased assets | 159,303 | 162,669 | |
Less deferred income | [1] | (392,179) | (411,435) |
Investment in a direct financing lease, net | 188,386 | 190,880 | |
Capital Leases, Net Investment in Direct Financing Leases, Initial Direct Costs | $ 1,300 | $ 1,400 | |
Minimum [Member] | |||
Length of lease (in years) | years | 16 | ||
Maximum [Member] | |||
Length of lease (in years) | years | 19 | ||
[1] | Deferred income is net of $1.3 million and $1.4 million of initial direct costs at June 30, 2016 and December 31, 2015 |
Investments In Direct Financi39
Investments In Direct Financing Lease (Future Minimum Rentals Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ||
2,016 | $ 9,786 | |
2,017 | 19,947 | |
2,018 | 20,546 | |
2,019 | 21,162 | |
2,020 | 21,797 | |
Thereafter | 328,024 | |
Total | $ 421,262 | $ 439,646 |
Debt and Capital Markets (Sched
Debt and Capital Markets (Schedule of Long-term Debt Instruments) (Details) $ in Thousands | May 02, 2016USD ($)loansproperties | Apr. 21, 2016USD ($) | Feb. 18, 2016USD ($)properties | Jan. 21, 2016USD ($)shares | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) | Dec. 31, 2015shares |
Debt Instrument [Line Items] | |||||||||
Extinguishment of Debt, Amount | $ 24,500 | $ 1,900 | $ 4,600 | ||||||
Number Of Mortgage Notes Receivable | loans | 2 | ||||||||
Number of Properties Securing Mortgage Note | properties | 2 | 1 | |||||||
Costs associated with loan refinancing or payoff | $ 339 | $ 243 | $ 891 | $ 243 | |||||
Common Shares, shares issued | shares | 2,250,000 | 66,154,679 | 66,154,679 | 63,195,182 | |||||
Net proceeds from issuance of common shares | $ 125,000 | $ 142,279 | $ 240 | ||||||
Theatre Properties [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Costs associated with loan refinancing or payoff | $ 472 | ||||||||
direct share purchase plan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Common Shares, shares issued | shares | 258,263 | 258,263 | |||||||
Net proceeds from issuance of common shares | $ 16,900 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 4.2 |
SVVI [Member] | |
Investment in unconsolidated VIE | 164.7 |
Unconsolidated investment maximum exposure to loss | $ 164.7 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) CAD in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2016USD ($)swap_agreementspropertiesCAD / $ | Jun. 30, 2016CADCAD / $ | Dec. 31, 2015USD ($) | |
credit risk related contingent features default on debt amount | $ 25 | ||
Derivative Liability, Fair Value, Gross Liability | 9.7 | $ 5.7 | |
Derivative Asset | 22.2 | 36.5 | |
Derivative Asset, Fair Value, Gross Asset | 31.9 | $ 42.2 | |
Cash Flow Hedging [Member] | |||
Estimated amount to be reclassified from accumulated other comprehensive income to other expense in the next twelve months | 2.4 | ||
Interest Rate Swap [Member] | |||
Fair value of derivatives in a liability position | 9.6 | ||
Assets needed to settle obligations under the agreements | 1 | ||
Interest Rate Risk [Member] | |||
Estimated amount to be reclassified from accumulated other comprehensive income to other expense in the next twelve months | $ 5.2 | ||
Cross Currency Swaps [Member] | |||
Net exchange rate, CAD to US dollar | CAD / $ | 1.05 | 1.05 | |
Cross Currency Swaps 2018 [Member] | |||
Derivative, Notional Amount | $ 98.1 | CAD 100 | |
Description of Foreign Currency Exposure | 13.5 | ||
Currency Forward Agreements [Member] | Net Investment Hedging [Member] | |||
Number of Canadian properties exposed to foreign currency exchange risk (in properties) | properties | 4 | ||
Derivative, Notional Amount | $ 94.3 | CAD 100 | |
Net exchange rate, CAD to US dollar | CAD / $ | 1.06 | 1.06 | |
Currency Forward Agreements 2018 [Member] | Net Investment Hedging [Member] | |||
Derivative, Notional Amount | CAD | CAD 88.1 | ||
Net exchange rate, CAD to US dollar | CAD / $ | 1.13 | 1.13 | |
interest rate swap 3.78percent [Member] | Interest Rate Swap [Member] | |||
Number of entered into interest rate swap agreements (in interest rate swaps) | swap_agreements | 3 | ||
Derivative fixed interest rate | 3.78% | 3.78% | |
Derivative, Notional Amount | $ 240 | ||
interest rate swap 2.94percent [Member] [Member] | Interest Rate Swap [Member] | |||
Number of entered into interest rate swap agreements (in interest rate swaps) | swap_agreements | 2 | ||
Derivative fixed interest rate | 2.94% | 2.94% | |
interest rate swap 2.94percent [Member] [Member] | Minimum [Member] | Interest Rate Swap [Member] | |||
Derivative, Notional Amount | $ 60 | ||
interest rate swap 2.94percent [Member] [Member] | Maximum [Member] | Interest Rate Swap [Member] | |||
Derivative, Notional Amount | $ 300 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of The Effect Of Derivative Instruments On The Consolidated Statements Of Changes In Equity And Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (1,888) | $ (2,771) | $ (15,618) | $ 10,780 | ||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | (744) | 41 | (1,339) | 144 | ||
Interest Rate Swap [Member] | ||||||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | (1,339) | [1] | (442) | [1] | (2,653) | (885) |
Cross Currency Swaps [Member] | ||||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | (88) | (508) | (1,438) | 2,554 | ||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | 595 | [2] | 483 | [2] | 1,314 | 1,029 |
Currency Forward Agreements [Member] | ||||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | (31) | (1,978) | (7,554) | 10,013 | ||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | 0 | [2] | 0 | [2] | 0 | 0 |
Interest Expense [Member] | Interest Rate Swap [Member] | ||||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (1,769) | $ (285) | $ (6,626) | $ (1,787) | ||
[1] | (1)Included in "Interest expense, net" in the accompanying consolidated statements of income for the three and six months ended June 30, 2016 and 2015. | |||||
[2] | Included in "Other income" in the accompanying consolidated statements of income for the three and six months ended June 30, 2016 and 2015. |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative Liability, Fair Value, Gross Liability | $ (9,700) | $ (5,700) | |
Derivative Asset, Fair Value, Gross Asset | 31,900 | 42,200 | |
Fair Value, Measurements, Recurring [Member] | Cross Currency Swaps [Member] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | 4,823 | 7,575 |
Fair Value, Measurements, Recurring [Member] | Cross Currency Swaps [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | 4,823 | 7,575 |
Fair Value, Measurements, Recurring [Member] | Currency Forward Agreements [Member] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | 27,032 | 34,587 |
Fair Value, Measurements, Recurring [Member] | Currency Forward Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | 27,032 | 34,587 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||
Derivative Liability, Fair Value, Gross Liability | (9,646) | (5,674) | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivative Liability, Fair Value, Gross Liability | $ (9,646) | $ (5,674) | |
[1] | Included in "Other assets" in the accompanying consolidated balance sheet. |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Mortgage notes and related accrued interest receivable | $ 424,875 | $ 423,780 |
Investment in a direct financing lease, net | $ 188,386 | $ 190,880 |
Finance lease investment weighted average interest rate | 12.00% | 12.00% |
Minimum interest on investments in direct finance lease | 11.74% | 11.74% |
Maximum interest on investments in direct finance lease | 12.38% | 12.38% |
Debt | $ 2,098,265 | $ 1,981,920 |
Fixed Rate Mortgage Notes Receivable [Member] | ||
Mortgage notes and related accrued interest receivable | $ 424,900 | $ 423,800 |
Weighted average interest rate of mortgage notes receivable | 9.33% | 9.36% |
Receivable interest rate minimum | 5.50% | 5.50% |
Receivable interest rate maximum | 11.31% | 11.31% |
Weighted market rate used for determining future cash flow for notes receivable | 10.02% | 10.05% |
Fair value of notes receivable | $ 417,900 | $ 415,700 |
Variable Rate Debt [Member] | ||
Debt | $ 722,000 | $ 571,000 |
Long-term debt, weighted average interest rate | 2.46% | 1.65% |
Variable Rate Converted to Fixed Rate [Member] | ||
Debt | $ 300,000 | $ 300,000 |
Fixed Rate Debt [Member] | ||
Debt | $ 1,390,000 | $ 1,430,000 |
Long-term debt, weighted average interest rate | 5.65% | 5.66% |
Weighted market rate for determining fair value of debt | 3.90% | 4.28% |
Fair value of debt | $ 1,530,000 | |
Long-term Debt, Fair Value | $ 1,550,000 | |
Minimum [Member] | Fixed Rate Mortgage Notes Receivable [Member] | ||
market rate used as discount factor to determine fair value of notes | 8.00% | 8.50% |
Minimum [Member] | Fixed Rate Debt [Member] | ||
market rate used as discount factor to determine fair value of debt | 3.13% | 3.33% |
Maximum [Member] | Fixed Rate Mortgage Notes Receivable [Member] | ||
market rate used as discount factor to determine fair value of notes | 11.31% | 11.31% |
Maximum [Member] | Fixed Rate Debt [Member] | ||
market rate used as discount factor to determine fair value of debt | 4.60% | 4.94% |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic EPS: | ||||
Income from continuing operations | $ 55,135 | $ 48,698 | $ 109,315 | $ 91,529 |
Less: preferred dividend requirements | $ (5,952) | (5,952) | $ (11,904) | (11,904) |
Income from continuing operations available to common shareholders | $ 42,746 | $ 79,625 | ||
Weighted average number of shares outstanding, basic | 63,592 | 57,200 | 63,128 | 57,156 |
Income from continuing operations, per basic share (in dollars per share) | $ 0.77 | $ 0.75 | $ 1.54 | $ 1.39 |
Income from discontinued operations available to common shareholders | $ 68 | $ 58 | ||
Income from discontinued operations, per basic share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Net income available to common shareholders of EPR Properties | $ 49,183 | $ 42,814 | $ 97,411 | $ 79,683 |
Net income available to common shareholders (in dollars per share) | $ 0.77 | $ 0.75 | $ 1.54 | $ 1.39 |
Diluted EPS: | ||||
Share options (in shares) | 86 | 246 | 85 | 252 |
Income from continuing operations available to common shareholders, diluted | $ 49,183 | $ 42,746 | $ 97,411 | $ 79,625 |
Weighted average number of shares outstanding, diluted | 63,678 | 57,446 | 63,213 | 57,408 |
Income from continuing operations, per diluted share (in dollars per share) | $ 0.77 | $ 0.75 | $ 1.54 | $ 1.39 |
Net Income Loss From Discontinuing Operation Available To Common Stockholders Diluted | $ 68 | $ 58 | ||
Income from discontinued operations, per diluted share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Net income available to common shareholders, diluted | $ 49,183 | $ 42,814 | $ 97,411 | $ 79,683 |
Net income available to common shareholders (in dollars per share) | $ 0.77 | $ 0.75 | $ 1.54 | $ 1.39 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 51.64 | $ 51.64 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 61.79 | $ 65.50 | $ 65.50 | |
Series C Cumulative Convertible Preferred Share [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 2,000 | 2,000 | 2,000 | 2,000 |
Preferred share dividend percentage | 5.75% | 5.75% | 5.75% | 5.75% |
Series E Cumulative Convertible Preferred Share [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 1,600 | 1,600 | 1,600 | 1,600 |
Preferred share dividend percentage | 9.00% | 9.00% | 9.00% | 9.00% |
Share Options [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 84 | 313 | 85 | 312 |
Equity Incentive Plans (Summary
Equity Incentive Plans (Summary Of Share Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | May 12, 2016 | Dec. 31, 2015 | |
Maximum term of options granted (in years) | 10 years | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | |||||
Exercisable rate for employees options, per year | 25.00% | |||||
Length of period subsequent to grant date options not exercisable for non-employee trustees (in years) | 1 year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of Shares, Outstanding at Beginning of Period | 516,305 | |||||
Number of Shares, Exercised | (128,027) | |||||
Number of Shares, Granted | 0 | |||||
Number of Shares, Outstanding at End of Period | 388,278 | 388,278 | ||||
Average Exercise Price, Outstanding at Beginning of Period | $ 51.81 | $ 51.81 | $ 48.42 | |||
Average Exercise Price, Exercised | 38.13 | |||||
Average Exercise Price, Outstanding at End of Period | $ 51.81 | $ 51.81 | 48.42 | |||
Weighted average fair value of options granted | $ 16.35 | |||||
Intrinsic value of stock options exercised | $ 3,400 | $ 300 | ||||
Repurchase of treasury stock (in shares) | 86,337 | |||||
Repurchase of treasury stock, value | $ 5,600 | |||||
Share based compensation expenses recognized in future periods | 1,400 | |||||
Retirement severance expense | $ 0 | $ 0 | $ 0 | 18,578 | ||
Minimum [Member] | ||||||
Share based compensation, future vesting period minimum (in years) | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Option Price Per Share, Outstanding at Beginning of Period | $ 19.02 | $ 19.02 | 19.02 | |||
Option Price Per Share, Exercised | 19.41 | |||||
Option Price Per Share, Outstanding at End of Period | 19.02 | $ 19.02 | 19.02 | |||
Maximum [Member] | ||||||
Share based compensation, future vesting period minimum (in years) | 4 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Option Price Per Share, Outstanding at Beginning of Period | 65.50 | $ 65.50 | 65.50 | |||
Option Price Per Share, Exercised | 65.50 | |||||
Option Price Per Share, Outstanding at End of Period | $ 65.50 | $ 65.50 | $ 65.50 | |||
Share Options [Member] | ||||||
Share based compensation, future vesting period minimum (in years) | 4 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
stock option expense including severance costs | 1,900 | |||||
Stock-option expense | $ 460 | $ 550 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 1.90% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 48.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Forfeiture Rate | 0.78% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | |||||
Share Options [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 5.90% | |||||
2007 Equity Incentive Plan [Member] | ||||||
Common shares, options to purchase common shares and restricted share units, expected to granted (in shares) | 1,950,000 | |||||
Number of shares available for grant (in shares) | 1,950,000 | 1,950,000 |
Equity Incentive Plans (Summa49
Equity Incentive Plans (Summary Of Outstanding Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 51.64 | $ 51.64 | |||
Exercise price range, upper limit | $ 61.79 | $ 65.50 | $ 65.50 | ||
Options outstanding (in shares) | 388,278 | 388,278 | 516,305 | ||
Weighted avg. life remaining (in years) | 5 years 11 months | ||||
Weighted avg. exercise price | $ 51.81 | $ 51.81 | $ 48.42 | ||
Aggregate intrinsic value | $ 11,210 | $ 11,210 | |||
ERROR in label resolution. | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 19.02 | ||||
Exercise price range, upper limit | $ 19.99 | ||||
Options outstanding (in shares) | 11,097 | 11,097 | |||
Weighted avg. life remaining (in years) | 2 years 11 months | ||||
ERROR in label resolution. | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 20 | ||||
Exercise price range, upper limit | 29.99 | ||||
ERROR in label resolution. | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 30 | ||||
Exercise price range, upper limit | $ 39.99 | ||||
Options outstanding (in shares) | 1,428 | 1,428 | |||
Weighted avg. life remaining (in years) | 3 years 6 months | ||||
ERROR in label resolution. | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 40 | ||||
Exercise price range, upper limit | $ 49.99 | ||||
Options outstanding (in shares) | 160,251 | 160,251 | |||
Weighted avg. life remaining (in years) | 4 years 9 months | ||||
ERROR in label resolution. | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 50 | ||||
Exercise price range, upper limit | $ 59.99 | ||||
Options outstanding (in shares) | 100,820 | 100,820 | |||
Weighted avg. life remaining (in years) | 7 years 2 months | ||||
ERROR in label resolution. | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 60 | ||||
Exercise price range, upper limit | $ 65.50 | ||||
Options outstanding (in shares) | 114,682 | 114,682 | |||
Weighted avg. life remaining (in years) | 6 years 8 months | ||||
Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 48.00% | ||||
Minimum [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 5.90% |
Equity Incentive Plans (Summa50
Equity Incentive Plans (Summary Of Exercisable Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 51.64 | $ 51.64 | ||
Exercise price range, upper limit | $ 61.79 | $ 65.50 | $ 65.50 | |
Options outstanding (in shares) | 255,872 | 255,872 | ||
Weighted avg. life remaining (in years) | 4 years 9 months | |||
Weighted avg. exercise price | $ 49.48 | $ 49.48 | ||
Aggregate intrinsic value | $ 7,982 | $ 7,982 | ||
ERROR in label resolution. | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 19.02 | |||
Exercise price range, upper limit | $ 19.99 | |||
Options outstanding (in shares) | 11,097 | 11,097 | ||
Weighted avg. life remaining (in years) | 2 years 11 months | |||
ERROR in label resolution. | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 20 | |||
Exercise price range, upper limit | 29.99 | |||
ERROR in label resolution. | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 30 | |||
Exercise price range, upper limit | $ 39.99 | |||
Options outstanding (in shares) | 1,428 | 1,428 | ||
Weighted avg. life remaining (in years) | 3 years 6 months | |||
ERROR in label resolution. | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 40 | |||
Exercise price range, upper limit | $ 49.99 | |||
Options outstanding (in shares) | 145,971 | 145,971 | ||
Weighted avg. life remaining (in years) | 4 years 7 months 15 days | |||
ERROR in label resolution. | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 50 | |||
Exercise price range, upper limit | $ 59.99 | |||
Options outstanding (in shares) | 48,679 | 48,679 | ||
Weighted avg. life remaining (in years) | 6 years 11 months | |||
ERROR in label resolution. | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 60 | |||
Exercise price range, upper limit | $ 65.50 | |||
Options outstanding (in shares) | 48,697 | 48,697 | ||
Weighted avg. life remaining (in years) | 4 years |
Equity Incentive Plans (Summa51
Equity Incentive Plans (Summary Of Nonvested Share Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Shares, Outstanding at December 31, 2012 | 390,441 | |
Number of Shares, Vested | (156,767) | |
Number of Shares, Outstanding at March 31, 2013 | 534,426 | |
Number of Shares, Granted | 300,752 | |
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2012 | $ 54.84 | |
Weighted Average Grant Date Fair Value, Granted | 61.53 | |
Weighted Average Grant Date Fair Value, Vested | 52.73 | |
Weighted Average Grant Date Fair Value, Outstanding at March 31, 2013 | $ 59.22 | |
Weighted Average Life Remaining, Outstanding at March 31, 2013 (in years) | 1 year 6 months 9 days | |
Share based compensation, future vesting period minimum (in years) | 4 years | |
Fair value of non-vested shares | $ 9.2 | $ 17.1 |
Unamortized share-based compensation expense | $ 21.8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | |
Chief Executive Officer [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Fair value of non-vested shares | $ 6.7 |
Equity Incentive Plans (Summa52
Equity Incentive Plans (Summary Of Restricted Share Unit Activity) (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Number of Shares, Outstanding at December 31, 2012 | shares | 390,441 |
Number of Shares, Granted | shares | 300,752 |
Number of Shares, Vested | shares | (156,767) |
Number of Shares, Outstanding at March 31, 2013 | shares | 534,426 |
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2012 | $ / shares | $ 54.84 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 61.53 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 52.73 |
Weighted Average Grant Date Fair Value, Outstanding at March 31, 2013 | $ / shares | $ 59.22 |
Weighted Average Life Remaining, Outstanding at March 31, 2013 (in years) | 1 year 6 months 9 days |
Range of settlement date for shares for non-employee trustee from grant date, minimum (in years) | 1 year |
Unamortized share-based compensation expense | $ | $ 21,800 |
Restricted Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Number of Shares, Outstanding at December 31, 2012 | shares | 18,036 |
Number of Shares, Granted | shares | 15,805 |
Number of Shares, Vested | shares | (18,036) |
Number of Shares, Outstanding at March 31, 2013 | shares | 15,805 |
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2012 | $ / shares | $ 57.57 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 70.93 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 57.57 |
Weighted Average Grant Date Fair Value, Outstanding at March 31, 2013 | $ / shares | $ 70.93 |
Weighted Average Life Remaining, Outstanding at March 31, 2013 (in years) | 10 months 10 days |
Range of settlement date for shares for non-employee trustee from grant date, minimum (in years) | 1 year |
Unamortized share-based compensation expense | $ | $ 934 |
Other Commitments And Conting53
Other Commitments And Contingencies (Details) | Oct. 20, 2011USD ($) | Jun. 30, 2016USD ($)mortgagenotesdevelopmentproject |
Commitment to fund project development | $ 340,000,000 | |
Number of Surety Bonds | 3 | |
Surety bonds | $ 21,700,000 | |
Number of Mortgage Notes Receivable (in mortgage notes) | mortgagenotes | 4 | |
Mortgage notes receivable with commitments | $ 14,300,000 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 22,900,000 | |
Loss Contingency, Damages Sought, Value | $ 800,000,000 | |
Theatre Properties [Member] | ||
Development projects in process (in projects) | developmentproject | 16 | |
Commitment to fund project development | $ 77,300,000 | |
recreationproperties [Member] | ||
Development projects in process (in projects) | developmentproject | 7 | |
Commitment to fund project development | $ 69,900,000 | |
Concord Resort [Member] | ||
Commitment to fund project development | 120,000,000 | |
Adelaar Infrastructure [Member] | ||
Special Assessment Bond | 110,000,000 | |
Property under development | 43,400,000 | |
Anticipated reimbursement received from payment of economic development revenue bonds | $ 44,900,000 | |
Education Property Member | ||
Development projects in process (in projects) | developmentproject | 25 | |
Commitment to fund project development | $ 192,800,000 | |
Louisiana Theatre Properties [Member] | ||
Development projects in process (in projects) | developmentproject | 2 | |
Economic development revenue bond term | 30 years | |
Deferred assets related to guarantee | $ 9,600,000 | |
Deferred liabilities related to guarantee | 9,600,000 | |
Loss contingency | 0 | |
Adelaar [Member] | ||
Loss Contingency, Damages Sought, Value | 500,000,000 | |
Sullivan County Planned Casino and Resort [Member] | ||
Loss Contingency, Damages Sought, Value | $ 1,500,000,000 | |
Minimum [Member] | Louisiana Theatre Properties [Member] | ||
Economic development revenue bond annual fees percentage | 2.88% | |
Maximum [Member] | Louisiana Theatre Properties [Member] | ||
Economic development revenue bond annual fees percentage | 4.00% |
Segment Information Balance She
Segment Information Balance Sheet Data (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)segment | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Operating Segments | segment | 4 | |
Total Assets | $ 4,460,224 | $ 4,217,270 |
Entertainment Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 2,112,267 | 2,006,926 |
Education Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,102,309 | 1,013,930 |
Recreation Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,014,430 | 935,266 |
Other Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 180,363 | 203,757 |
Corporate / Unallocated | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 50,855 | $ 57,391 |
Segment Information Operating D
Segment Information Operating Data (Details) - USD ($) | Feb. 26, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Segment Reporting Information [Line Items] | |||||
Rental revenue | $ 96,055,000 | $ 77,860,000 | $ 189,833,000 | $ 154,600,000 | |
Tenant reimbursements | 3,891,000 | 3,965,000 | 7,756,000 | 8,268,000 | |
Other income | 2,126,000 | 1,148,000 | 3,336,000 | 1,698,000 | |
Mortgage and other financing income | 15,961,000 | 18,285,000 | 35,876,000 | 36,128,000 | |
Total revenue | 118,033,000 | 101,258,000 | 236,801,000 | 200,694,000 | |
Property operating expense | 5,580,000 | 5,770,000 | 11,061,000 | 12,127,000 | |
Other expense | 0 | 210,000 | 5,000 | 312,000 | |
Total investment expenses | 5,580,000 | 5,980,000 | 11,066,000 | 12,439,000 | |
Net Operating Income - Before Unallocated Items | 112,453,000 | 95,278,000 | 225,735,000 | 188,255,000 | |
Reconciliation to Consolidated Statements of Income: | |||||
General and administrative expense | (9,000,000) | (7,756,000) | (18,218,000) | (15,438,000) | |
Retirement severance expense | 0 | 0 | 0 | (18,578,000) | |
Costs associated with loan refinancing | (339,000) | (243,000) | (891,000) | (243,000) | |
Interest expense, net | (22,756,000) | (20,007,000) | (46,045,000) | (38,594,000) | |
Transaction costs | (1,490,000) | (4,429,000) | (1,934,000) | (6,035,000) | |
Depreciation and amortization | (25,666,000) | (21,849,000) | (51,621,000) | (41,204,000) | |
Equity in income from joint ventures | 86,000 | 198,000 | 298,000 | 362,000 | |
Gain on sale of real estate | 2,270,000 | 0 | 2,270,000 | 23,924,000 | |
Income tax benefit (expense) | (423,000) | 7,506,000 | (279,000) | (920,000) | |
Income (loss) from discontinued operations | 0 | (68,000) | 0 | (58,000) | |
Net income attributable to EPR Properties | 55,135,000 | 48,766,000 | 109,315,000 | 91,587,000 | |
Preferred dividend requirements | (5,952,000) | (5,952,000) | (11,904,000) | (11,904,000) | |
Net income available to common shareholders of EPR Properties | 49,183,000 | 42,814,000 | 97,411,000 | 79,683,000 | |
Entertainment Reportable Operating Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental revenue | 61,258,000 | 59,829,000 | 121,396,000 | 119,770,000 | |
Tenant reimbursements | 3,891,000 | 3,965,000 | 7,754,000 | 8,291,000 | |
Other income | 210,000 | 501,000 | 214,000 | 503,000 | |
Mortgage and other financing income | 1,481,000 | 1,782,000 | 3,633,000 | 3,564,000 | |
Total revenue | 66,840,000 | 66,077,000 | 132,997,000 | 132,128,000 | |
Property operating expense | 5,335,000 | 5,692,000 | 10,587,000 | 11,986,000 | |
Other expense | 0 | 0 | 0 | ||
Total investment expenses | 5,335,000 | 5,692,000 | 10,587,000 | 11,986,000 | |
Net Operating Income - Before Unallocated Items | 61,505,000 | 60,385,000 | 122,410,000 | 120,142,000 | |
Education Reportable Operating Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental revenue | 17,717,000 | 10,803,000 | 34,897,000 | 20,897,000 | |
Tenant reimbursements | 0 | 0 | 2,000 | 0 | |
Other income | 0 | 0 | 0 | 0 | |
Mortgage and other financing income | 7,178,000 | 7,793,000 | 17,909,000 | 15,577,000 | |
Total revenue | 24,895,000 | 18,596,000 | 52,808,000 | 36,474,000 | |
Property operating expense | 0 | 0 | 0 | 0 | |
Other expense | 0 | 0 | 0 | ||
Total investment expenses | 0 | 0 | 0 | 0 | |
Net Operating Income - Before Unallocated Items | 24,895,000 | 18,596,000 | 52,808,000 | 36,474,000 | |
Recreation Reportable Operating Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental revenue | 14,789,000 | 7,228,000 | 29,485,000 | 13,933,000 | |
Tenant reimbursements | 0 | 0 | 0 | 0 | |
Other income | 1,321,000 | 0 | 1,810,000 | 0 | |
Mortgage and other financing income | 7,268,000 | 8,613,000 | 14,266,000 | 16,794,000 | |
Total revenue | 23,378,000 | 15,841,000 | 45,561,000 | 30,727,000 | |
Property operating expense | 0 | 0 | 8,000 | 0 | |
Other expense | 0 | 0 | 0 | ||
Total investment expenses | 0 | 0 | 8,000 | 0 | |
Net Operating Income - Before Unallocated Items | 23,378,000 | 15,841,000 | 45,553,000 | 30,727,000 | |
Other Reportable Operating Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental revenue | 2,291,000 | 0 | 4,055,000 | 0 | |
Tenant reimbursements | 0 | 0 | 0 | (23,000) | |
Other income | 0 | 63,000 | 0 | 63,000 | |
Mortgage and other financing income | 34,000 | 97,000 | 68,000 | 193,000 | |
Total revenue | 2,325,000 | 160,000 | 4,123,000 | 233,000 | |
Property operating expense | 103,000 | 78,000 | 186,000 | 141,000 | |
Other expense | 210,000 | 5,000 | 312,000 | ||
Total investment expenses | 103,000 | 288,000 | 191,000 | 453,000 | |
Net Operating Income - Before Unallocated Items | 2,222,000 | (128,000) | 3,932,000 | (220,000) | |
Reconciliation to Consolidated Statements of Income: | |||||
Gain on sale of real estate | $ 0 | ||||
Corporate / Unallocated | |||||
Segment Reporting Information [Line Items] | |||||
Rental revenue | 0 | 0 | 0 | 0 | |
Tenant reimbursements | 0 | 0 | 0 | 0 | |
Other income | 595,000 | 584,000 | 1,312,000 | 1,132,000 | |
Mortgage and other financing income | 0 | 0 | 0 | 0 | |
Total revenue | 595,000 | 584,000 | 1,312,000 | 1,132,000 | |
Property operating expense | 142,000 | 0 | 280,000 | 0 | |
Other expense | 0 | 0 | 0 | ||
Total investment expenses | 142,000 | 0 | 280,000 | 0 | |
Net Operating Income - Before Unallocated Items | $ 453,000 | $ 584,000 | $ 1,032,000 | $ 1,132,000 |
Condensed Consolidating Finan56
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Rental properties, net | $ 3,331,781 | $ 3,025,199 | ||
Land held for development | 22,530 | 23,610 | ||
Property under development | 301,605 | 378,920 | ||
Mortgage notes and related accrued interest receivable | 424,875 | 423,780 | ||
Investment in a direct financing lease, net | 188,386 | 190,880 | ||
Investment in joint ventures | 5,955 | 6,168 | ||
Cash and cash equivalents | 8,462 | 4,283 | $ 6,146 | $ 3,336 |
Restricted cash | 16,614 | 10,578 | ||
Accounts receivable, net | 62,061 | 59,101 | ||
Intercompany notes receivable | 0 | 0 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 97,955 | 94,751 | ||
Total assets | 4,460,224 | 4,217,270 | ||
Accounts payable and accrued liabilities | 91,130 | 92,178 | ||
Dividends payable | 26,312 | 24,352 | ||
Unearned rents and interest | 49,798 | 44,952 | ||
Intercompany notes payable | 0 | 0 | ||
Debt | 2,098,265 | 1,981,920 | ||
Total liabilities | 2,265,505 | 2,143,402 | ||
Total equity | 2,194,719 | 2,073,868 | ||
Total liabilities and equity | 4,460,224 | 4,217,270 | ||
EPR Properties (Issuer) [Member] | ||||
Rental properties, net | 0 | 0 | ||
Land held for development | 0 | 0 | ||
Property under development | 25 | 0 | ||
Mortgage notes and related accrued interest receivable | 0 | 0 | ||
Investment in a direct financing lease, net | 0 | 0 | ||
Investment in joint ventures | 0 | 0 | ||
Cash and cash equivalents | 4,574 | 1,089 | 711 | (1,234) |
Restricted cash | 460 | 475 | ||
Accounts receivable, net | 424 | 285 | ||
Intercompany notes receivable | 0 | 0 | ||
Investments in subsidiaries | 4,099,500 | 3,825,897 | ||
Other assets | 23,234 | 23,053 | ||
Total assets | 4,128,217 | 3,850,799 | ||
Accounts payable and accrued liabilities | 51,919 | 49,671 | ||
Dividends payable | 26,312 | 24,352 | ||
Unearned rents and interest | 0 | 0 | ||
Intercompany notes payable | 0 | 0 | ||
Debt | 1,855,267 | 1,702,908 | ||
Total liabilities | 1,933,498 | 1,776,931 | ||
Total equity | 2,194,719 | 2,073,868 | ||
Total liabilities and equity | 4,128,217 | 3,850,799 | ||
Wholly-Owned Subsidiary Guarantors [Member] | ||||
Rental properties, net | 2,851,873 | 2,546,267 | ||
Land held for development | 1,258 | 1,258 | ||
Property under development | 258,473 | 324,360 | ||
Mortgage notes and related accrued interest receivable | 422,175 | 400,935 | ||
Investment in a direct financing lease, net | 188,386 | 190,880 | ||
Investment in joint ventures | 0 | 0 | ||
Cash and cash equivalents | 927 | 946 | 2,349 | 1,837 |
Restricted cash | 14,640 | 8,571 | ||
Accounts receivable, net | 51,356 | 47,921 | ||
Intercompany notes receivable | 175,757 | 175,757 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 20,920 | 10,607 | ||
Total assets | 3,985,765 | 3,707,502 | ||
Accounts payable and accrued liabilities | 35,930 | 39,033 | ||
Dividends payable | 0 | 0 | ||
Unearned rents and interest | 49,040 | 44,012 | ||
Intercompany notes payable | 0 | 0 | ||
Debt | 0 | 24,742 | ||
Total liabilities | 84,970 | 107,787 | ||
Total equity | 3,900,795 | 3,599,715 | ||
Total liabilities and equity | 3,985,765 | 3,707,502 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Rental properties, net | 479,908 | 478,932 | ||
Land held for development | 21,272 | 22,352 | ||
Property under development | 43,107 | 54,560 | ||
Mortgage notes and related accrued interest receivable | 2,700 | 22,845 | ||
Investment in a direct financing lease, net | 0 | 0 | ||
Investment in joint ventures | 5,955 | 6,168 | ||
Cash and cash equivalents | 2,961 | 2,248 | $ 3,086 | $ 2,733 |
Restricted cash | 1,514 | 1,532 | ||
Accounts receivable, net | 10,281 | 10,895 | ||
Intercompany notes receivable | 0 | 0 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 53,801 | 61,091 | ||
Total assets | 621,499 | 660,623 | ||
Accounts payable and accrued liabilities | 3,281 | 3,474 | ||
Dividends payable | 0 | 0 | ||
Unearned rents and interest | 758 | 940 | ||
Intercompany notes payable | 175,757 | 175,757 | ||
Debt | 242,998 | 254,270 | ||
Total liabilities | 422,794 | 434,441 | ||
Total equity | 198,705 | 226,182 | ||
Total liabilities and equity | 621,499 | 660,623 | ||
Consolidated Elimination [Member] | ||||
Rental properties, net | 0 | 0 | ||
Land held for development | 0 | 0 | ||
Property under development | 0 | 0 | ||
Mortgage notes and related accrued interest receivable | 0 | 0 | ||
Investment in a direct financing lease, net | 0 | 0 | ||
Investment in joint ventures | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany notes receivable | (175,757) | (175,757) | ||
Investments in subsidiaries | (4,099,500) | (3,825,897) | ||
Other assets | 0 | 0 | ||
Total assets | (4,275,257) | (4,001,654) | ||
Accounts payable and accrued liabilities | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Unearned rents and interest | 0 | 0 | ||
Intercompany notes payable | (175,757) | (175,757) | ||
Debt | 0 | 0 | ||
Total liabilities | (175,757) | (175,757) | ||
Total equity | (4,099,500) | (3,825,897) | ||
Total liabilities and equity | $ (4,275,257) | $ (4,001,654) |
Condensed Consolidating Finan57
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Rental revenue | $ 96,055 | $ 77,860 | $ 189,833 | $ 154,600 |
Tenant reimbursements | 3,891 | 3,965 | 7,756 | 8,268 |
Other income | 2,126 | 1,148 | 3,336 | 1,698 |
Mortgage and other financing income | 15,961 | 18,285 | 35,876 | 36,128 |
Intercompany fee income | 0 | 0 | 0 | 0 |
Interest income on intercompany notes receivable | 0 | 0 | 0 | 0 |
Total revenue | 118,033 | 101,258 | 236,801 | 200,694 |
Equity in subsidiaries' earnings | 0 | 0 | 0 | 0 |
Property operating expense | 5,580 | 5,770 | 11,061 | 12,127 |
Intercompany fee expense | 0 | 0 | 0 | 0 |
Other expense | 0 | 210 | 5 | 312 |
General and administrative expense | 9,000 | 7,756 | 18,218 | 15,438 |
Retirement severance expense | 0 | 0 | 0 | 18,578 |
Costs associated with loan refinancing or payoff | 339 | 243 | 891 | 243 |
Interest expense, net | 22,756 | 20,007 | 46,045 | 38,594 |
Interest expense on intercompany notes payable | 0 | 0 | 0 | 0 |
Transaction costs | 1,490 | 4,429 | 1,934 | 6,035 |
Depreciation and amortization | 25,666 | 21,849 | 51,621 | 41,204 |
Income before equity in income from joint ventures and other items | 53,202 | 40,994 | 107,026 | 68,163 |
Equity in income from joint ventures | 86 | 198 | 298 | 362 |
Gain on sale of real estate | 2,270 | 0 | 2,270 | 23,924 |
Income before income taxes | 55,558 | 41,192 | 109,594 | 92,449 |
Income tax benefit (expense) | (423) | 7,506 | (279) | (920) |
Income from continuing operations | 55,135 | 48,698 | 109,315 | 91,529 |
Income (loss) from discontinued operations | 0 | 68 | 0 | 58 |
Net income attributable to EPR Properties | 55,135 | 48,766 | 109,315 | 91,587 |
Dividends, Preferred Stock | (5,952) | (5,952) | (11,904) | (11,904) |
Net income available to common shareholders of EPR Properties | 49,183 | 42,814 | 97,411 | 79,683 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 54,912 | 48,344 | 107,178 | 87,311 |
Net income attributable to EPR Properties | 55,135 | 48,766 | 109,315 | 91,587 |
EPR Properties (Issuer) [Member] | ||||
Rental revenue | 0 | 0 | 0 | 0 |
Tenant reimbursements | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Mortgage and other financing income | 212 | 212 | 424 | 424 |
Intercompany fee income | 688 | 708 | 1,341 | 1,397 |
Interest income on intercompany notes receivable | 0 | 0 | 0 | 111 |
Total revenue | 900 | 920 | 1,765 | 1,932 |
Equity in subsidiaries' earnings | 78,883 | 73,172 | 155,670 | 152,312 |
Property operating expense | 0 | 0 | 0 | 0 |
Intercompany fee expense | 0 | 0 | 0 | 0 |
Other expense | 0 | 0 | 0 | |
General and administrative expense | 0 | 0 | 0 | 0 |
Retirement severance expense | 18,578 | |||
Costs associated with loan refinancing or payoff | 0 | 243 | 0 | 243 |
Interest expense, net | 22,437 | 19,824 | 44,627 | 36,184 |
Interest expense on intercompany notes payable | 0 | 0 | 0 | 0 |
Transaction costs | 1,394 | 4,238 | 1,837 | 5,736 |
Depreciation and amortization | 446 | 386 | 889 | 778 |
Income before equity in income from joint ventures and other items | 55,506 | 49,401 | 110,082 | 92,725 |
Equity in income from joint ventures | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | 0 | |
Income before income taxes | 55,506 | 49,401 | 110,082 | 92,725 |
Income tax benefit (expense) | 371 | (635) | 767 | (1,138) |
Income from continuing operations | 48,766 | 91,587 | ||
Income (loss) from discontinued operations | 0 | 0 | ||
Net income attributable to EPR Properties | 55,135 | 48,766 | 109,315 | 91,587 |
Dividends, Preferred Stock | (5,952) | (5,952) | (11,904) | (11,904) |
Net income available to common shareholders of EPR Properties | 49,183 | 42,814 | 97,411 | 79,683 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 54,912 | 48,344 | 107,178 | 87,311 |
Wholly-Owned Subsidiary Guarantors [Member] | ||||
Rental revenue | 80,658 | 61,970 | 159,252 | 122,633 |
Tenant reimbursements | 1,372 | 1,265 | 2,721 | 2,674 |
Other income | 1,329 | 1 | 1,820 | 2 |
Mortgage and other financing income | 15,659 | 15,175 | 31,678 | 30,304 |
Intercompany fee income | 0 | 0 | 0 | 0 |
Interest income on intercompany notes receivable | 2,453 | 2,558 | 4,789 | 4,949 |
Total revenue | 101,471 | 80,969 | 200,260 | 160,562 |
Equity in subsidiaries' earnings | 0 | 0 | 0 | 0 |
Property operating expense | 2,554 | 2,702 | 5,215 | 5,776 |
Intercompany fee expense | 0 | 0 | 0 | 0 |
Other expense | 0 | 0 | 0 | |
General and administrative expense | 7,588 | 6,037 | 15,118 | 12,034 |
Retirement severance expense | 0 | |||
Costs associated with loan refinancing or payoff | 339 | 0 | 339 | 0 |
Interest expense, net | (2,553) | (2,884) | (4,404) | (3,739) |
Interest expense on intercompany notes payable | 0 | 0 | 0 | 0 |
Transaction costs | 0 | 0 | 0 | 0 |
Depreciation and amortization | 21,397 | 17,859 | 43,194 | 33,203 |
Income before equity in income from joint ventures and other items | 72,146 | 57,255 | 140,798 | 113,288 |
Equity in income from joint ventures | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 2,270 | 2,270 | 23,748 | |
Income before income taxes | 74,416 | 57,255 | 143,068 | 137,036 |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Income from continuing operations | 57,255 | 137,036 | ||
Income (loss) from discontinued operations | 68 | 58 | ||
Net income attributable to EPR Properties | 74,416 | 57,323 | 143,068 | 137,094 |
Dividends, Preferred Stock | 0 | 0 | 0 | 0 |
Net income available to common shareholders of EPR Properties | 74,416 | 57,323 | 143,068 | 137,094 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 74,416 | 57,323 | 143,068 | 137,047 |
Non-Guarantor Subsidiaries [Member] | ||||
Rental revenue | 15,397 | 15,890 | 30,581 | 31,967 |
Tenant reimbursements | 2,519 | 2,700 | 5,035 | 5,594 |
Other income | 797 | 1,147 | 1,516 | 1,696 |
Mortgage and other financing income | 90 | 2,898 | 3,774 | 5,400 |
Intercompany fee income | 0 | 0 | 0 | 0 |
Interest income on intercompany notes receivable | 0 | 0 | 0 | 0 |
Total revenue | 18,803 | 22,635 | 40,906 | 44,657 |
Equity in subsidiaries' earnings | 0 | 0 | 0 | 0 |
Property operating expense | 3,026 | 3,068 | 5,846 | 6,351 |
Intercompany fee expense | 688 | 708 | 1,341 | 1,397 |
Other expense | 210 | 5 | 312 | |
General and administrative expense | 1,412 | 1,719 | 3,100 | 3,404 |
Retirement severance expense | 0 | |||
Costs associated with loan refinancing or payoff | 0 | 0 | 552 | 0 |
Interest expense, net | 2,872 | 3,067 | 5,822 | 6,149 |
Interest expense on intercompany notes payable | 2,453 | 2,558 | 4,789 | 5,060 |
Transaction costs | 96 | 191 | 97 | 299 |
Depreciation and amortization | 3,823 | 3,604 | 7,538 | 7,223 |
Income before equity in income from joint ventures and other items | 4,433 | 7,510 | 11,816 | 14,462 |
Equity in income from joint ventures | 86 | 198 | 298 | 362 |
Gain on sale of real estate | 0 | 0 | 176 | |
Income before income taxes | 4,519 | 7,708 | 12,114 | 15,000 |
Income tax benefit (expense) | 52 | 8,141 | (488) | 218 |
Income from continuing operations | 15,849 | 15,218 | ||
Income (loss) from discontinued operations | 0 | 0 | ||
Net income attributable to EPR Properties | 4,467 | 15,849 | 12,602 | 15,218 |
Dividends, Preferred Stock | 0 | 0 | 0 | 0 |
Net income available to common shareholders of EPR Properties | 4,467 | 15,849 | 12,602 | 15,218 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 4,673 | 15,270 | 14,437 | 11,890 |
Consolidated Elimination [Member] | ||||
Rental revenue | 0 | 0 | 0 | 0 |
Tenant reimbursements | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Mortgage and other financing income | 0 | 0 | 0 | 0 |
Intercompany fee income | (688) | (708) | (1,341) | (1,397) |
Interest income on intercompany notes receivable | (2,453) | (2,558) | (4,789) | (5,060) |
Total revenue | (3,141) | (3,266) | (6,130) | (6,457) |
Equity in subsidiaries' earnings | (78,883) | (73,172) | (155,670) | (152,312) |
Property operating expense | 0 | 0 | 0 | 0 |
Intercompany fee expense | (688) | (708) | (1,341) | (1,397) |
Other expense | 0 | 0 | 0 | |
General and administrative expense | 0 | 0 | 0 | 0 |
Retirement severance expense | 0 | |||
Costs associated with loan refinancing or payoff | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 | 0 |
Interest expense on intercompany notes payable | (2,453) | (2,558) | (4,789) | (5,060) |
Transaction costs | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Income before equity in income from joint ventures and other items | (78,883) | (73,172) | (155,670) | (152,312) |
Equity in income from joint ventures | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | 0 | |
Income before income taxes | (78,883) | (73,172) | (155,670) | (152,312) |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Income from continuing operations | (73,172) | (152,312) | ||
Income (loss) from discontinued operations | 0 | 0 | ||
Net income attributable to EPR Properties | (78,883) | (73,172) | (155,670) | (152,312) |
Dividends, Preferred Stock | 0 | 0 | 0 | 0 |
Net income available to common shareholders of EPR Properties | (78,883) | (73,172) | (155,670) | (152,312) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (79,089) | $ (72,593) | $ (157,505) | $ (148,937) |
Condensed Consolidating Finan58
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | Jan. 21, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Intercompany fee income (expense) | $ 0 | $ 0 | |
Interest income (expense) on intercompany receivable/payable | 0 | 0 | |
Net cash provided (used) by other operating activities | 152,532 | 119,881 | |
Net operating cash provided by continuing operations | 152,532 | 119,881 | |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 0 | 526 | |
Net cash provided by operating activities | 152,532 | 120,407 | |
Acquisition of rental properties and other assets | (138,788) | (93,221) | |
Proceeds from sale of real estate | 13,129 | 43,790 | |
Investment in mortgage notes receivable | (65,508) | (35,589) | |
Proceeds from mortgage note receivable paydown | 63,685 | 308 | |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 43,462 | 0 | |
Proceeds from insurance recovery | 2,211 | 0 | |
Proceeds from Sale of Lease Receivables | 825 | 4,741 | |
Additions to properties under development | (187,216) | (206,955) | |
Advances to subsidiaries, net | 0 | 0 | |
Net cash used by investing activities | (268,200) | (286,926) | |
Proceeds from long-term debt facilities | 318,000 | 558,914 | |
Principal payments on long-term debt | (203,116) | (259,659) | |
Deferred financing fees paid | (169) | (6,854) | |
Costs associated with loan refinancing or payoff (cash portion) | (472) | 0 | |
Net proceeds from issuance of common shares | $ 125,000 | 142,279 | 240 |
Impact of stock option exercises, net | (717) | (35) | |
Purchase of common shares for treasury | (4,208) | (8,223) | |
Dividends paid to shareholders | (131,701) | (114,600) | |
Net cash provided by financing activities | 119,896 | 169,783 | |
Effect of exchange rate changes on cash | (49) | (454) | |
Net increase (decrease) in cash and cash equivalents | 4,179 | 2,810 | |
Cash and cash equivalents at beginning of the year | 4,283 | 3,336 | |
Cash and cash equivalents at end of the year | 8,462 | 6,146 | |
EPR Properties (Issuer) [Member] | |||
Intercompany fee income (expense) | 1,341 | 1,397 | |
Interest income (expense) on intercompany receivable/payable | 0 | 111 | |
Net cash provided (used) by other operating activities | (43,623) | (52,121) | |
Net operating cash provided by continuing operations | (50,613) | ||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 0 | ||
Net cash provided by operating activities | (42,282) | (50,613) | |
Acquisition of rental properties and other assets | (107) | (280) | |
Proceeds from sale of real estate | 0 | 0 | |
Investment in mortgage notes receivable | 0 | 0 | |
Proceeds from mortgage note receivable paydown | 0 | 0 | |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 0 | ||
Proceeds from insurance recovery | 0 | ||
Proceeds from Sale of Lease Receivables | 0 | 0 | |
Additions to properties under development | (25) | (4) | |
Advances to subsidiaries, net | (110,593) | (216,606) | |
Net cash used by investing activities | (110,725) | (216,890) | |
Proceeds from long-term debt facilities | 318,000 | 403,914 | |
Principal payments on long-term debt | (167,000) | (5,000) | |
Deferred financing fees paid | (161) | (6,848) | |
Costs associated with loan refinancing or payoff (cash portion) | 0 | ||
Net proceeds from issuance of common shares | 142,279 | 240 | |
Impact of stock option exercises, net | (717) | (35) | |
Purchase of common shares for treasury | (4,208) | (8,223) | |
Dividends paid to shareholders | (131,701) | (114,600) | |
Net cash provided by financing activities | 156,492 | 269,448 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 3,485 | 1,945 | |
Cash and cash equivalents at beginning of the year | 1,089 | (1,234) | |
Cash and cash equivalents at end of the year | 4,574 | 711 | |
Wholly-Owned Subsidiary Guarantors [Member] | |||
Intercompany fee income (expense) | 0 | 0 | |
Interest income (expense) on intercompany receivable/payable | 4,789 | 4,949 | |
Net cash provided (used) by other operating activities | 169,576 | 141,186 | |
Net operating cash provided by continuing operations | 146,135 | ||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 526 | ||
Net cash provided by operating activities | 174,365 | 146,661 | |
Acquisition of rental properties and other assets | (138,578) | (92,932) | |
Proceeds from sale of real estate | 11,652 | 42,709 | |
Investment in mortgage notes receivable | (65,508) | (5,541) | |
Proceeds from mortgage note receivable paydown | 44,365 | 308 | |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 43,462 | ||
Proceeds from insurance recovery | 1,810 | ||
Proceeds from Sale of Lease Receivables | 825 | 4,741 | |
Additions to properties under development | (184,213) | (196,096) | |
Advances to subsidiaries, net | 136,555 | 195,583 | |
Net cash used by investing activities | (149,630) | (51,228) | |
Proceeds from long-term debt facilities | 0 | 155,000 | |
Principal payments on long-term debt | (24,754) | (249,898) | |
Deferred financing fees paid | 0 | (6) | |
Costs associated with loan refinancing or payoff (cash portion) | 0 | ||
Net proceeds from issuance of common shares | 0 | 0 | |
Impact of stock option exercises, net | 0 | 0 | |
Purchase of common shares for treasury | 0 | 0 | |
Dividends paid to shareholders | 0 | 0 | |
Net cash provided by financing activities | (24,754) | (94,904) | |
Effect of exchange rate changes on cash | 0 | (17) | |
Net increase (decrease) in cash and cash equivalents | (19) | 512 | |
Cash and cash equivalents at beginning of the year | 946 | 1,837 | |
Cash and cash equivalents at end of the year | 927 | 2,349 | |
Non-Guarantor Subsidiaries [Member] | |||
Intercompany fee income (expense) | (1,341) | (1,397) | |
Interest income (expense) on intercompany receivable/payable | (4,789) | (5,060) | |
Net cash provided (used) by other operating activities | 26,579 | 30,816 | |
Net operating cash provided by continuing operations | 24,359 | ||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 0 | ||
Net cash provided by operating activities | 20,449 | 24,359 | |
Acquisition of rental properties and other assets | (103) | (9) | |
Proceeds from sale of real estate | 1,477 | 1,081 | |
Investment in mortgage notes receivable | 0 | (30,048) | |
Proceeds from mortgage note receivable paydown | 19,320 | 0 | |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 0 | ||
Proceeds from insurance recovery | 401 | ||
Proceeds from Sale of Lease Receivables | 0 | 0 | |
Additions to properties under development | (2,978) | (10,855) | |
Advances to subsidiaries, net | (25,962) | 21,023 | |
Net cash used by investing activities | (7,845) | (18,808) | |
Proceeds from long-term debt facilities | 0 | 0 | |
Principal payments on long-term debt | (11,362) | (4,761) | |
Deferred financing fees paid | (8) | 0 | |
Costs associated with loan refinancing or payoff (cash portion) | (472) | ||
Net proceeds from issuance of common shares | 0 | 0 | |
Impact of stock option exercises, net | 0 | 0 | |
Purchase of common shares for treasury | 0 | 0 | |
Dividends paid to shareholders | 0 | 0 | |
Net cash provided by financing activities | (11,842) | (4,761) | |
Effect of exchange rate changes on cash | (49) | (437) | |
Net increase (decrease) in cash and cash equivalents | 713 | 353 | |
Cash and cash equivalents at beginning of the year | 2,248 | 2,733 | |
Cash and cash equivalents at end of the year | 2,961 | $ 3,086 | |
Consolidated Elimination [Member] | |||
Cash and cash equivalents at beginning of the year | 0 | ||
Cash and cash equivalents at end of the year | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Unsecured Debt [Member] - Subsequent Event [Member] $ in Millions | Aug. 01, 2016USD ($) |
senior unsecured private placement notes payable, 4.35 percent, due August 22, 2024 [Member] | |
Subsequent Event [Line Items] | |
Debt Instrument, Face Amount | $ 148 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.35% |
senior unsecured private placement notes payable, 4.56 percent, due August 22, 2026 [Member] | |
Subsequent Event [Line Items] | |
Debt Instrument, Face Amount | $ 192 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.56% |
Private Placement [Member] | |
Subsequent Event [Line Items] | |
Debt Instrument, Face Amount | $ 340 |