Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-13561 | |
Entity Registrant Name | EPR PROPERTIES | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 43-1790877 | |
Entity Address, Address Line One | 909 Walnut Street, | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Kansas City, | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 64106 | |
City Area Code | (816) | |
Local Phone Number | 472-1700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 74,805,433 | |
Entity Central Index Key | 0001045450 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common shares, par value $0.01 per share | |
Trading Symbol | EPR | |
Entity Listing, Description | NYSE | |
Series C Preferred Shares [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.75% Series C cumulative convertible preferred shares, par value $0.01 per share | |
Trading Symbol | EPR PrC | |
Entity Listing, Description | NYSE | |
Series E Preferred Shares [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 9.00% Series E cumulative convertible preferred shares, par value $0.01 per share | |
Trading Symbol | EPR PrE | |
Entity Listing, Description | NYSE | |
Series G Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.75% Series G cumulative redeemable preferred shares, par value $0.01 per share | |
Trading Symbol | EPR PrG | |
Entity Listing, Description | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Real Estate Investment Property, Net | $ 4,800,561 | $ 4,851,302 |
Land held for development | 21,875 | 23,225 |
Property under development | 20,166 | 57,630 |
Operating Lease, Right-of-Use Asset | 175,987 | 163,766 |
Financing Receivable, after Allowance for Credit Loss, Current | 369,134 | 365,628 |
Investment in joint ventures | 38,729 | 28,208 |
Cash and cash equivalents | 144,433 | 1,025,577 |
Restricted cash | 5,142 | 2,433 |
Accounts receivable, net | 80,491 | 116,193 |
Other assets | 64,639 | 70,223 |
Total assets | 5,721,157 | 6,704,185 |
Liabilities: | ||
Accounts payable and accrued liabilities | 87,021 | 105,379 |
Operating Lease, Liability | 214,065 | 202,223 |
Dividends Payable, Current | 18,802 | 36 |
Preferred dividends payable | 6,033 | 6,034 |
Unearned rents and interest | 79,692 | 65,485 |
Debt | 2,684,063 | 3,694,443 |
Total liabilities | $ 3,089,676 | $ 4,073,600 |
Equity: | ||
Common Stock, Shares, Issued | 82,219,663 | 81,917,876 |
Common Stock, Value, Issued | $ 822 | $ 819 |
Additional paid-in-capital | 3,872,777 | 3,857,632 |
Treasury Stock, Value | (264,679) | (261,238) |
Accumulated other comprehensive income | 9,625 | 216 |
Distributions in excess of net income | 987,212 | 966,992 |
Total equity | 2,631,481 | 2,630,585 |
Total liabilities and equity | $ 5,721,157 | $ 6,704,185 |
Series C Preferred Shares [Member] | ||
Equity: | ||
Preferred Shares, shares issued | 5,392,916 | 5,394,050 |
Preferred shares | $ 54 | $ 54 |
Series E Preferred Shares [Member] | ||
Equity: | ||
Preferred Shares, shares issued | 3,447,381 | 3,447,381 |
Preferred shares | $ 34 | $ 34 |
Series G Preferred Stock [Member] | ||
Equity: | ||
Preferred Shares, shares issued | 6,000,000 | 6,000,000 |
Preferred shares | $ 60 | $ 60 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate Owned, Accumulated Depreciation | $ 1,142,513,000 | $ 1,062,087,000 |
Treasury Stock, Shares | 7,413,853 | 7,315,087 |
Common Shares, par value | $ 0.01 | $ 0.01 |
Common Shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred Shares, par value | $ 0.01 | $ 0.01 |
Preferred Shares, shares authorized | 25,000,000 | 25,000,000 |
Series C Preferred Shares [Member] | ||
Preferred Shares, shares issued | 5,392,916 | 5,394,050 |
Preferred Shares, liquidation preference | $ 134,822,900 | $ 134,822,900 |
Series E Preferred Shares [Member] | ||
Preferred Shares, shares issued | 3,447,381 | 3,447,381 |
Preferred Shares, liquidation preference | $ 86,184,525 | $ 86,184,525 |
Series G Preferred Stock [Member] | ||
Preferred Shares, shares issued | 6,000,000 | 6,000,000 |
Preferred Shares, liquidation preference | $ 150,000,000 | $ 150,000,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Lease, Lease Income | $ 123,040 | $ 55,591 | $ 341,537 | $ 288,165 |
Other income | 8,091 | 182 | 9,802 | 8,171 |
Interest and Fee Income, Loans, Commercial and Residential, Real Estate | 8,516 | 8,104 | 25,435 | 24,913 |
Total revenue | 139,647 | 63,877 | 376,774 | 321,249 |
Property operating expense | 13,815 | 13,759 | 43,806 | 42,181 |
Other expense | 7,851 | 2,680 | 13,428 | 15,012 |
General and Administrative Expense | 11,154 | 10,034 | 33,866 | 31,454 |
Costs associated with loan refinancing or payoff | 4,741 | 0 | 4,982 | 820 |
Interest expense, net | 36,584 | 41,744 | 114,090 | 114,837 |
Transaction costs | 2,132 | 2,776 | 3,342 | 4,622 |
Financing Receivable, Credit Loss, Expense (Reversal) | (14,096) | 5,707 | (19,677) | 10,383 |
Asset Impairment Charges | 2,711 | 11,561 | 2,711 | 62,825 |
Depreciation and amortization | 42,612 | 42,059 | 123,476 | 128,319 |
Income (loss) before equity in loss from joint ventures and other items | 32,143 | (66,443) | 56,750 | (89,204) |
Equity in loss from joint ventures | (418) | (1,044) | (3,000) | (3,188) |
Impairment charges on joint ventures | 0 | 0 | 0 | (3,247) |
Gain on sale of real estate | 787 | 0 | 1,499 | 242 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 32,512 | (67,487) | 55,249 | (95,397) |
Income tax benefit (expense) | (395) | (18,417) | (1,200) | (16,354) |
Net income (loss) | 32,117 | (85,904) | 54,049 | (111,751) |
Preferred dividend requirements | (6,033) | (6,034) | (18,100) | (18,102) |
Net income (loss) available to common shareholders of EPR Properties | 26,084 | (91,938) | 35,949 | (129,853) |
Foreign currency translation adjustment | (5,169) | 4,148 | (195) | (5,063) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 33,228 | $ (83,679) | $ 60,209 | $ (121,132) |
Basic earnings per share data: | ||||
Net income available to common shareholders (in dollars per share) | $ 0.35 | $ (1.23) | $ 0.48 | $ (1.70) |
Diluted earnings per share data: | ||||
Net income available to common shareholders (in dollars per share) | $ 0.35 | $ (1.23) | $ 0.48 | $ (1.70) |
Shares used for computation (in thousands): | ||||
Basic (in shares) | 74,804 | 74,613 | 74,738 | 76,456 |
Diluted (in shares) | 74,911 | 74,613 | 74,819 | 76,456 |
Unrealized Gain (Loss) on Derivatives | $ 6,280 | $ (1,923) | $ 6,355 | $ (4,318) |
Consolidated Statement Of Chang
Consolidated Statement Of Changes In Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | 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] | Distributions in excess of net income [Member]Cumulative Effect, Period of Adoption, Adjustment | Series C Preferred Shares [Member] | Series C Preferred Shares [Member]Distributions in excess of net income [Member] | Series E Preferred Shares [Member] | Series E Preferred Shares [Member]Distributions in excess of net income [Member] | Series G Preferred Stock [Member] | Series G Preferred Stock [Member]Distributions in excess of net income [Member] | Performance Shares [Member] | Performance Shares [Member]Distributions in excess of net income [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Total equity | $ 3,005,805 | $ (2,163) | $ 816 | $ 148 | $ 3,834,858 | $ (147,435) | $ 7,275 | $ (689,857) | $ (2,163) | ||||||||
Balance (in shares) at Dec. 31, 2019 | 81,588,489 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 211,549 | ||||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 6,133 | $ 2 | 6,221 | (90) | |||||||||||||
Treasury Stock, Retired, Cost Method, Amount | (6,769) | (6,769) | |||||||||||||||
Employee Service Share Based Compensation Restricted Stock Units And Restricted Shares Unrecognized Compensation Cost On Nonvested Awards | 3,509 | 3,509 | |||||||||||||||
Foreign currency translation adjustment | (16,495) | (16,495) | |||||||||||||||
Unrealized Gain (Loss) on Derivatives | 3,931 | 3,931 | |||||||||||||||
Net income | 37,118 | 37,118 | |||||||||||||||
Issuances of common shares (in shares) | 10,368 | ||||||||||||||||
Issuances of common shares | 442 | $ 0 | 442 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,410 | ||||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | $ 0 | (63) | (63) | |||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.1325 | ||||||||||||||||
Dividends to common and preferred shareholders | $ (88,996) | (88,996) | $ (1,939) | $ (1,939) | $ (1,939) | $ (1,939) | $ (2,156) | $ (2,156) | |||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.359375 | $ 0.5625 | $ 0.359375 | ||||||||||||||
Balance (in shares) at Mar. 31, 2020 | 81,811,816 | 14,841,431 | |||||||||||||||
Balance (in shares) at Dec. 31, 2019 | 81,588,489 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Foreign currency translation adjustment | (5,063) | ||||||||||||||||
Unrealized Gain (Loss) on Derivatives | (4,318) | ||||||||||||||||
Net income | $ (111,751) | ||||||||||||||||
Balance (in shares) at Sep. 30, 2020 | 81,908,330 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||||||||||||||
Total equity | $ 2,936,481 | $ 818 | $ 148 | 3,845,093 | (154,357) | (5,289) | (749,932) | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 81,811,816 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Employee Service Share Based Compensation Restricted Stock Units And Restricted Shares Unrecognized Compensation Cost On Nonvested Awards | 3,463 | 3,463 | |||||||||||||||
Foreign currency translation adjustment | 7,284 | 7,284 | |||||||||||||||
Unrealized Gain (Loss) on Derivatives | (6,326) | (6,326) | |||||||||||||||
Net income | (62,965) | (62,965) | |||||||||||||||
Issuances of common shares (in shares) | 17,203 | ||||||||||||||||
Issuances of common shares | 428 | $ 0 | 428 | ||||||||||||||
Stock Repurchased During Period, Value | $ (105,994) | (105,994) | |||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.3825 | ||||||||||||||||
Dividends to common and preferred shareholders | $ (30,062) | (30,062) | $ (1,939) | (1,939) | $ (1,939) | (1,939) | $ (2,156) | (2,156) | $ (19) | $ (19) | |||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.359375 | $ 0.5625 | $ 0.359375 | ||||||||||||||
Balance (in shares) at Jun. 30, 2020 | 81,903,786 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock Issued During Period, Value, Other | 1 | $ 1 | |||||||||||||||
Stock Issued During Period, Shares, Other | 74,767 | ||||||||||||||||
Total equity | 2,736,257 | $ 819 | $ 148 | 3,848,984 | (260,351) | (4,331) | (849,012) | ||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | ||||||||||||||||
Restricted Stock Award, Forfeitures | 220 | (220) | |||||||||||||||
Treasury Stock, Retired, Cost Method, Amount | (23) | (23) | |||||||||||||||
Employee Service Share Based Compensation Restricted Stock Units And Restricted Shares Unrecognized Compensation Cost On Nonvested Awards | 3,410 | 3,410 | |||||||||||||||
Foreign currency translation adjustment | 4,148 | 4,148 | |||||||||||||||
Unrealized Gain (Loss) on Derivatives | (1,923) | (1,923) | |||||||||||||||
Net income | (85,904) | (85,904) | |||||||||||||||
Issuances of common shares (in shares) | 4,544 | ||||||||||||||||
Issuances of common shares | 148 | $ 0 | 148 | ||||||||||||||
Dividends to common and preferred shareholders | $ (1,939) | (1,939) | $ (1,939) | (1,939) | $ (2,156) | (2,156) | (10) | (10) | |||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.359375 | $ 0.5625 | $ 0.359375 | ||||||||||||||
Balance (in shares) at Sep. 30, 2020 | 81,908,330 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Total equity | 2,650,069 | $ 819 | $ 148 | 3,852,762 | (260,594) | (2,106) | (940,960) | ||||||||||
Total equity | 2,630,585 | $ 819 | $ 148 | 3,857,632 | (261,238) | 216 | (966,992) | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 81,917,876 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 246,562 | ||||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 2,901 | $ 2 | 2,899 | 0 | |||||||||||||
Treasury Stock, Retired, Cost Method, Amount | (2,744) | (2,744) | |||||||||||||||
Employee Service Share Based Compensation Restricted Stock Units And Restricted Shares Unrecognized Compensation Cost On Nonvested Awards | 3,784 | 3,784 | |||||||||||||||
Foreign currency translation adjustment | 2,300 | 2,300 | |||||||||||||||
Unrealized Gain (Loss) on Derivatives | 462 | 462 | |||||||||||||||
Net income | 3,380 | 3,380 | |||||||||||||||
Issuances of common shares (in shares) | 2,509 | ||||||||||||||||
Issuances of common shares | 107 | $ 0 | 107 | ||||||||||||||
Dividends to common and preferred shareholders | $ (1,939) | (1,939) | $ (1,939) | (1,939) | $ (2,156) | (2,156) | (8) | (8) | |||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.359375 | $ 0.5625 | $ 0.359375 | ||||||||||||||
Balance (in shares) at Mar. 31, 2021 | 82,166,947 | 14,841,431 | |||||||||||||||
Balance (in shares) at Dec. 31, 2020 | 81,917,876 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Foreign currency translation adjustment | (195) | ||||||||||||||||
Unrealized Gain (Loss) on Derivatives | 6,355 | ||||||||||||||||
Net income | $ 54,049 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,065 | ||||||||||||||||
Balance (in shares) at Sep. 30, 2021 | 82,219,663 | 14,840,297 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Total equity | $ 2,634,733 | $ 821 | $ 148 | 3,864,422 | (263,982) | 2,978 | (969,654) | ||||||||||
Balance (in shares) at Mar. 31, 2021 | 82,166,947 | 14,841,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | ||||||||||||||||
Restricted Stock Award, Forfeitures | 484 | (484) | |||||||||||||||
Employee Service Share Based Compensation Restricted Stock Units And Restricted Shares Unrecognized Compensation Cost On Nonvested Awards | 3,675 | 3,675 | |||||||||||||||
Foreign currency translation adjustment | 2,674 | 2,674 | |||||||||||||||
Unrealized Gain (Loss) on Derivatives | (387) | (387) | |||||||||||||||
Net income | 18,552 | 18,552 | |||||||||||||||
Issuances of common shares (in shares) | 1,826 | ||||||||||||||||
Issuances of common shares | 90 | $ 0 | 90 | ||||||||||||||
Stock Redeemed or Called During Period, Value | 0 | ||||||||||||||||
Stock Redeemed or Called During Period, Shares | (800) | ||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 330 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,065 | ||||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | $ 0 | (194) | (194) | |||||||||||||
Dividends to common and preferred shareholders | $ (1,938) | (1,938) | $ (1,939) | (1,939) | $ (2,156) | (2,156) | (10) | (10) | |||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.359375 | $ 0.5625 | $ 0.359375 | ||||||||||||||
Balance (in shares) at Jun. 30, 2021 | 82,216,474 | 14,840,631 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock Issued During Period, Value, Other | 1 | $ 1 | |||||||||||||||
Stock Issued During Period, Shares, Other | 43,306 | ||||||||||||||||
Total equity | 2,653,295 | $ 822 | $ 148 | 3,868,865 | (264,660) | 5,265 | (957,145) | ||||||||||
Treasury Stock, Retired, Cost Method, Amount | (19) | (19) | |||||||||||||||
Employee Service Share Based Compensation Restricted Stock Units And Restricted Shares Unrecognized Compensation Cost On Nonvested Awards | 3,759 | 3,759 | |||||||||||||||
Foreign currency translation adjustment | (5,169) | (5,169) | |||||||||||||||
Unrealized Gain (Loss) on Derivatives | 6,280 | 6,280 | |||||||||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 3,249 | 3,249 | |||||||||||||||
Net income | 32,117 | 32,117 | |||||||||||||||
Issuances of common shares (in shares) | 3,051 | ||||||||||||||||
Issuances of common shares | 153 | $ 0 | 153 | ||||||||||||||
Stock Redeemed or Called During Period, Value | $ 0 | ||||||||||||||||
Stock Redeemed or Called During Period, Shares | (334) | ||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 138 | ||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.75 | ||||||||||||||||
Dividends to common and preferred shareholders | $ (56,104) | (56,104) | $ (1,938) | $ (1,938) | $ (1,939) | $ (1,939) | $ (2,156) | $ (2,156) | $ (47) | $ (47) | |||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.359375 | $ 0.5625 | $ 0.359375 | ||||||||||||||
Balance (in shares) at Sep. 30, 2021 | 82,219,663 | 14,840,297 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Total equity | $ 2,631,481 | $ 822 | $ 148 | $ 3,872,777 | $ (264,679) | $ 9,625 | $ (987,212) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net income (loss) | $ 54,049 | $ (111,751) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Impairment of Real Estate | 2,711 | 62,825 |
Impairment Losses Related to Real Estate Partnerships | 0 | 3,247 |
Gain on sale of real estate | (1,499) | (242) |
Gain on Insurance Recovery | (30) | 0 |
Deferred income tax expense | 0 | 15,246 |
Write off of deferred debt issuance cost continuing and discontinued | 4,982 | 820 |
Equity in loss from joint ventures | (3,000) | (3,188) |
Proceeds from Equity Method Investment, Distribution | 90 | 0 |
Financing Receivable, Credit Loss, Expense (Reversal) | (19,677) | 10,383 |
depreciation and amort cont and discops | 123,476 | 128,319 |
Amortization of deferred financing costs | 5,331 | 4,783 |
Amortization of above/below market leases and tenant allowances, net | (293) | (384) |
Share-based Payment Arrangement, Noncash Expense | 11,218 | 10,382 |
Increase (Decrease) in Operating Lease Assets and Liabilities, Net | (379) | 574 |
Mortgage notes accrued interest receivable | 11 | (4,279) |
Accounts receivable | 35,644 | (42,961) |
Other assets | (1,924) | (3,065) |
Accounts payable and accrued liabilities | 5,511 | (15,724) |
Increase (Decrease) in Deferred Revenue | 14,203 | (1,883) |
Net cash provided by operating activities | 236,424 | 59,478 |
Investing activities: | ||
Payments to Acquire Productive Assets | 33,203 | 37,128 |
Proceeds from Sale of Productive Assets | 30,821 | 3,839 |
Investment in unconsolidated joint ventures | 13,611 | 1,690 |
Investment in mortgage notes receivable | (7,670) | (6,438) |
Proceeds from Sale and Collection of Mortgage Notes Receivable | 8,106 | 414 |
Investment in promissory notes receivable | 4,379 | 0 |
Proceeds from promissory note receivable paydown | 7,124 | 69 |
Proceeds from Insurance Recovery | 30 | 0 |
Additions to properties under development | (26,695) | (29,963) |
Net cash used by investing activities | (39,477) | (70,897) |
Financing activities: | ||
Proceeds from long-term debt facilities | 0 | 750,000 |
Principal payments on long-term debt | (1,013,765) | 0 |
Deferred financing fees paid | (336) | (2,944) |
Proceeds from (Payments for) Other Financing Activities | (3,258) | (820) |
Net proceeds from issuance of common shares | 308 | 861 |
Purchase of common shares for treasury | (2,763) | (6,792) |
payments for repurchase of common stock, repurchase program | 0 | (105,994) |
Dividends paid to shareholders | (55,459) | (166,426) |
Net cash (used) provided by financing activities | (1,075,273) | 467,885 |
Effect of exchange rate changes on cash | (109) | (110) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (878,435) | 456,356 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 149,575 | 987,796 |
Cash and Cash Equivalents, at Carrying Value | 144,433 | 985,372 |
Restricted Cash and Cash Equivalents | 5,142 | 2,424 |
Supplemental schedule of non-cash activity: | ||
Transfer of property under development to rental property | 87,620 | 20,547 |
Issuance of nonvested shares and restricted share units at fair value, including nonvested shares issued for payment of bonuses | 21,921 | 19,956 |
Financing Receivable, Allowance for Credit Loss | 13,181 | 2,163 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 22,126 | 0 |
Supplemental disclosure of cash flow information: | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 107,456 | 105,141 |
Cash paid during the period for income taxes | 1,193 | 995 |
Interest cost capitalized | 1,341 | 829 |
Change in accrued capital expenditures | $ 2,172 | $ (12,232) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2021 | |
Organization [Abstract] | |
Organization | Organization Description of Business EPR Properties (the Company) was formed on August 22, 1997 as a Maryland real estate investment trust (REIT), and an initial public offering of the Company's common shares of beneficial interest (common shares) was completed on November 18, 1997. Since that time, the Company has been a leading diversified Experiential net lease REIT specializing in select enduring experiential properties. The Company's underwriting is centered on key industry and property cash flow criteria, as well as the credit metrics of the Company's tenants and customers. The Company’s properties are located in the United States and Canada. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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 (GAAP) 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. GAAP 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 nine month period ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Amounts as of December 31, 2020 have been derived from the audited Consolidated Financial Statements as of that date and should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (SEC) on February 25, 2021. 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 in accordance with the consolidation guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The equity method of accounting is applied to entities in which the Company is not the primary beneficiary as defined in the FASB ASC Topic on Consolidation (Topic 810) but can exercise influence over the entity with respect to its operations and major decisions. The Company’s variable interests 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. The primary beneficiary generally is defined as the party with the controlling financial interest. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance and its obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. As of September 30, 2021 and December 31, 2020, the Company does not have any investments in consolidated VIEs. Risks and Uncertainties The Company continues to be subject to risks and uncertainties resulting from the COVID-19 pandemic. The COVID-19 pandemic severely impacted global economic activity and caused significant volatility and negative pressure in financial markets. In response to the COVID-19 pandemic, many jurisdictions within the United States and abroad instituted health and safety measures, including quarantines, mandated business and school closures and travel restrictions. As a result, the COVID-19 pandemic severely impacted experiential real estate properties, given that such properties involve congregate social activity and discretionary consumer spending . Although many of these health and safety measures have been lifted, the extent of the impact of the COVID-19 pandemic on the Company's business still remains highly uncertain and difficult to predict. As of September 30, 2021, the Company had no properties closed due to COVID-19 restrictions . The continuing impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the scope, severity and duration of any resurgence of the pandemic (including COVID-19 variants), the actions taken to contain the outbreak or any resurgence or mitigate their impacts, the distribution of vaccines and the efficacy of those vaccines, the ability of communities to achieve herd immunity, the public’s confidence in the health and safety measures implemented by the Company's tenants and borrowers, the continuing direct and indirect economic effects of the outbreak and containment measures, and the ability of the Company's tenants and borrowers to recover from the negative economic impacts of the pandemic as it subsides, and in many cases, service elevated levels of debt resulting from the pandemic, all of which are uncertain and cannot be predicted. During 2020 and the nine months ended September 30, 2021, the COVID-19 pandemic negatively affected the Company's business, and could continue to have material adverse effects on the Company's financial condition, results of operations and cash flows. The Company’s consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods pres ented. The Company considered the continuing impact of, and recovery from, the COVID-19 pandemic on the assumptions and estimates used in determining the Company’s financial condition and results of operations for the nine months ended September 30, 2021. The following were impacts to the Company's financial statements and business during the nine months ended September 30, 2021 arising out of or relating to the COVID-19 pandemic : • The Company continued to recognize revenue on a cash basis for certain tenants including American-Multi Cinema, Inc. (AMC) and Regal Cinemas (Regal), a subsidiary of Cineworld Group. • The Company reduced rental r eve nue by $9.1 million due to rent abatements. • As of September 30, 2021, t he Company has deferred amounts due from tenants of approxim ately $39.2 million and amounts due from borrowers of $1.7 million that are booked as receivables. Additionally, the Company has amounts due from tenants that were not booked as receivables because the full amounts were not deemed probable of collection as a result of the COVID-19 pandemic. The amounts not booked as receivables remain obligations of the tenants and will be recognized as revenue when received. During the nine months ended September 30, 2021 , the Company collected $6.0 million in deferred rent from cash basis tenants and from tenants for which the deferred payments were not previously recognized as revenue. In addition, the Company collected $53.5 million of deferred rent and interest from accrual basis tenants and borrowers that reduced related accounts and interest receivable. The repayment terms for all of these deferments vary by tenant or borrowers. • Through July 12, 2021, the Company remained in the Covenant Relief Period under the agreement that governs its unsecured revolving credit facility and its unsecured term loan facility (Consolidated Credit Agreement) and the agreement that governs its private placement notes (Note Purchase Agreement). During the Covenant Relief Period, the Company's obligation to comply with certain covenants under these agreements was waived in light of the uncertainty related to impacts of the COVID-19 pandemic on the Company and its tenants and borrowers. The Company paid higher interest costs during the Covenant Relief Period. The Consolidated Credit Agreement and Note Purchase Agreement also imposed additional restrictions on the Company during the Covenant Relief Period, including limitations on making investments, incurring indebtedness, making capital expenditures, paying dividends or making other distributions, repurchasing the Company's shares, voluntarily prepaying certain indebtedness, encumbering certain assets and maintaining a minimum liquidity amount, in each case subject to certain exceptions. The term "Covenant Relief Period," as used in this Quarterly Report on Form 10-Q, generally means the period of time beginning on June 29, 2020 and ending on (i) December 31, 2021, in the case of the Company's Consolidated Credit Agreement, or (ii) October 1, 2021 (subject to extension to January 1, 2022 at the Company's election, subject to certain conditions), in the case of the Company's Note Purchase Agreement governing its private placement notes. The Company had the right under certain circumstances to terminate the Covenant Relief Period earlier, which it exercised on July 12, 2021. • On July 12, 2021, the Company provided notice of its election to terminate the Covenant Relief Period early. The Company’s election to terminate the Covenant Relief Period early meant that, effective July 13, 2021, the interest rates on the debt governed by these agreements returned to the previous levels defined in the agreements, in each case based on the Company's unsecured debt ratings. By terminating the Covenant Relief Period, the Company was also released from certain restrictions under these agreements, including restrictions on investments, capital expenditures, incurrences of indebtedness and payment of dividends. • In connection with amending the Company's Consolidated Credit Agreement and Note Purchase Agreement to provide for the Covenant Relief Period discussed above, certain of the Company's key subsidiaries guaranteed the Company's obligations based on the Company's unsecured debt ratings. During the three months ended September 30, 2021, t he Company received an investment grade rating from S&P Global Ratings on its unsecured debt. As a result, the subsidiary guarantors were released from their guarantees under these debt agreements in accordance with the terms of such agreements. Additionally, during October of 2021, Moody's revised its outlook on the Company's investment grade rating on its unsecured debt from negative to stable. • During the nine months ended September 30, 2021, the Company decreased its expected credit losses by $19.7 million due to cash collections from a borrower on a previously fully reserved note and the release of its commitment to fund additional amounts to the borrower as well as a change in the expectation in the credit loss model of the timing of the economic recovery from the impacts of the COVID-19 pandemic. The monthly cash dividends to common shareholders were temporarily suspended following the common share dividend paid on May 15, 2020 to shareholders of record as of April 30, 2020. On July 13, 2021, following termination of the Covenant Relief Period, the Company resumed regular monthly cash dividends to common shareholders. During the three months ended September 30, 2021, the Company declared cash dividends totaling $0.75 per common share. Reportable Segments The Company has two reportable operating segments: Experiential and Education. The Experiential segment includes the following property types: theatres, eat & play (including seven theatres located in entertainment districts), attractions, ski, experiential lodging, gaming, cultural and fitness & wellness. The Education segment includes the following property types: early childhood education centers and private schools. See Note 15 for financial information related to these reportable segments. Real Estate Investments Real estate investments are carried at initial recorded value 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 years to 40 years for buildings, three years to 25 years for furniture, fixtures and equipment and 10 years to 20 years for site improvements. Tenant improvements, including allowances, are depreciated over the shorter of the lease term or the estimated useful life and leasehold interests are depreciated over the useful life of the underlying ground lease. Management reviews the Company's real estate investments, including operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying value of a property may not be recoverable, which 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 and are generally classified as held for sale once management has initiated an active program to market them for sale and it is probable the assets will be sold within one year. On occasion, the Company will receive unsolicited offers from third parties to buy individual Company owned 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. Real Estate Acquisitions Upon acquisition of real estate properties, the Company evaluates the acquisition to determine if it is a business combination or an asset acquisition. If the acquisition is determined to be an asset acquisition, the Company records the purchase price and other related costs incurred to the acquired tangible assets and identified intangible assets and liabilities on a relative fair value basis. In addition, costs incurred for asset acquisitions, including transaction costs, are capitalized. If the acquisition is determined to be a business combination, the Company records the fair value of acquired tangible assets and identified intangible assets and liabilities as well as any noncontrolling interest. Acquisition-related costs in connection with business combinations are expensed as incurred and included in "Transaction costs" in the accompanying consolidated statements of income (loss) and comprehensive income (loss). For real estate acquisitions (asset acquisitions or business combinations), the fair value (or relative fair value in an asset acquisition) of the tangible assets is determined by valuing the property using recent independent appraisals or methods similar to those used by independent appraisers. Land is valued using the sales comparison approach which uses available market data from recent comparable land sales as an input to estimate the fair value. Site improvements and tenant improvements are valued using the cost approach which uses replacement cost data obtained from industry recognized guides less depreciation as an input to estimate the fair value. The building is valued either using the cost approach described above or a combination of the cost and the income approach. The income approach uses market leasing assumptions to estimate the fair value of the property as if vacant. The cost and income approaches are reconciled to arrive at an estimated building fair value. Deferred Financing Costs Deferred financing costs are amortized over the terms of the related debt obligations or mortgage note receivable as applicable. Deferred financin g costs of $32.2 million and $35.6 million as of September 30, 2021 and December 31, 2020, respectively, are shown as a reduction of debt. The deferred financing costs of $1.7 million and $4.8 million as of September 30, 2021 and December 31, 2020, respectively, related to the unsecured revolving credit facility are included in "Other assets" in the accompanying consolidated balance s heets. Rental Revenue The Company leases real estate to its tenants under leases that are classified as operating leases. The Company's leases generally provide for rent escalations throughout the lease terms. Rents that are fixed are recognized on a straight-line basis over the lease term. Base rent escalations that include a variable component are recognized upon the occurrence of the specified event as defined in the Company's lease agreements. Many of the Company's leasing arrangements include options to extend the lease, which are not included in the minimum lease terms unless it is reasonably certain to be exercised. Straight-line rental revenue is subject to an evaluation for collectibility, and the Company records a direct write-off against rental revenue if collectibility of these future rents is not probable. For the nine months ended September 30, 2021, the Company recognized straight-line write-offs totaling $0.2 million. Straight-line rental revenue, net of write-offs, was $3.7 million for the nine months ended September 30, 2021. For the nine months ended September 30, 2020, the Company recognized straight-line write-offs totaling $36.9 million, which were comprised of $25.4 million of straight-line accounts receivable and $11.5 million of sub-lessor ground lease straight-line accounts receivable. Straight-line rental revenue, net of write-offs, was a reduction to total rental revenue of $25.4 million for the nine months ended September 30, 2020. The Company has agreed to defer rent for a substantial portion of its customers in response to the impact of the COVID-19 pandemic on their operations. On April 10, 2020, the FASB issued a Staff Q&A on Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic. In reliance upon the FASB Staff Q&A, the Company has not treated qualifying deferrals or rent concessions during the period affected by the COVID-19 pandemic as lease modifications. While deferments for this and future periods delay rent payments, these deferments generally do not release customers from the obligation to pay the deferred amounts in the future. Deferred rent amounts are reflected in the Company's financial statements as accounts receivable if collection is determined to be probable or recognized when received as variable lease payments if collection is determined to not be probable. Certain agreements with tenants where remaining lease terms are extended, or other changes are made that do not qualify for the treatment in the FASB Staff Q&A, are treated as lease modifications. In these circumstances, upon an executed lease modification, if the tenant is not being recognized on a cash basis, the contractual rent reflected in accounts receivable and straight-line rent receivable will be amortized over the remaining term of the lease against rental revenue. In limited cases, customers may be entitled to the abatement of rent during governmentally imposed prohibitions on business operations which is recognized in the period to which the abatement relates, or the Company may provide rent concessions to tenants. In cases where the Company provides concessions to tenants to which they are not otherwise entitled, those amounts will be recognized in the period in which the concession is granted unless the changes are accounted for as lease modifications. Most of the Company’s lease contracts are triple-net leases, which require the tenants to make payments to third parties for lessor costs (such as property taxes and insurance) associated with the properties. In accordance with Topic 842, the Company does not include these lessee payments to third parties in rental revenue or property operating expenses. In certain situations, the Company pays these lessor costs directly to third parties and the tenants reimburse the Company. In accordance with Topic 842, these payments are presented on a gross basis in rental revenue and property operating expense. During the nine months ended September 30, 2021 and 2020, the Company recogni zed $2.8 million and $1.4 million , respectively, in tenant reimbursements related to the gross up of these reimbursed expenses which are included in rental revenue. Certain of the Company's leases, particularly at its entertainment districts, require the tenants to make payments to the Company for property-related expenses such as common area maintenance. The Company has elected to combine these non-lease components with the lease components in rental revenue. For the nine months ended September 30, 2021 and 2020, the non-lease components included in rental revenue tota led $11.2 million and $8.9 million, respectively. In addition, most of the Company's tenants are subject to additional rents (above base rents) if gross revenues of the properties exceed certain thresholds defined in the lease agreements (percentage rents). Percentage rents are recognized at the time when specific trigger ing events occur as provided by the lease agreement. Rental revenue included percentage rents of $7.2 million and $5.5 million fo r the nine months ended September 30, 2021 and 2020, respectively. Furthermore, due to the impact of the COVID-19 pandemic, certain of the Company's tenants paid a portion of base rent in 2021 based on a percentage of gross revenue. This variable rent totaled $11.3 million for the nine months ended September 30, 2021. The Company regularly evaluates the collectibility of its receivables on a lease-by-lease basis. The evaluation primarily consists of reviewing past due account balances and considering such factors as the credit quality of the Company's tenants, historical trends of the tenant, current economic conditions and changes in customer payment terms. When the collectibility of lease receivables or future lease payments are no longer probable, the Company records a direct write-off of the receivable to rental revenue and recognizes future rental revenue on a cash basis. Property Sales Sales of real estate properties are recognized when a contract exists and the purchaser has obtained control of the property. Gains on sales of properties are recognized in full in a partial sale of nonfinancial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value. The Company evaluates each sale or disposal transaction to determine if it meets the criteria to qualify as discontinued operations. A discontinued operation is a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on the Company's operations and financial results. If the sale or disposal transaction does not meet the criteria, the operations and related gain or loss on sale is included in income from continuing operations. 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 less allowance for credit loss. Interest income is recognized using the effective interest method over the estimated life of the note. Interest income includes both the stated interest and the amortization or accretion of premiums or discounts (if any). In accordance with ASC Topic 326, Measurement of Credit Losses on Financial Instruments, the Company records allowance for credit loss to reflect that all mortgage notes and notes receivable have some inherent risk of loss regardless of credit quality, collateral, or other mitigating factors. While Topic 326 does not require any particular method for determining the reserves, it does specify that it should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, as well as reasonable and supportable forecasts for the term of each mortgage note or note receivable. The Company uses a forward looking commercial real estate forecasting tool to estimate its current expected credit losses (CECL) for each of its mortgage notes and notes receivable on a loan by loan basis. The CECL allowance required by Topic 326 is a valuation account that is deducted from the related mortgage note or note receivable. Certain of the Company’s mortgage notes and notes receivable include commitments to fund incremental amounts to its borrowers. These future funding commitments are also subject to the CECL model. The allowance related to future funding is recorded as a liability and is included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheet. As permitted under Topic 326, the Company made an accounting policy election to not measure an allowance for credit losses for accrued interest receivables related to its mortgage notes and notes receivable. Accordingly, if accrued interest receivable is deemed to be uncollectible, the Company will record any necessary write-offs as a reversal of interest in come. As of September 30, 2021, the Company believes that all outstanding accrued interest is collectible. In the event the Company has a past due mortgage note or note receivable and the Company determines it is collateral dependent, the Company measures expected credit losses based on the fair value of the collateral. The Company evaluates the collectability of both interest and principal for each of its mortgage notes and notes receivable on a quarterly basis to determine if foreclosure is prob able. As of September 30, 2021, the Company does not have any mortgage notes or notes receivable with past due principal balances. Mortgage and Other Financing Income Certain of the Company's borrowers are subject to additional interest based on certain thresholds defined in the mortgage agreements (participating interest). Participating interest income is recognized at the time when specific parameters have been met as provided by the mortgage agreement. There was no participating interest income for the nine months ended September 30, 2021 and 2020. Concentrations of Risk AMC and Topgolf USA (Topgolf) represented a significant portion of the Company's total revenue for the nine months ended September 30, 2021 and 2020. The Company began recognizing revenue on a cash basis for AMC at the end of the first quarter of 2020 and cash payments have been reduced due to the impact of the COVID-19 pandemic. The following is a summary of the Company's total revenue derived from rental or interest payments from AMC and Topgolf (dollars in thousands): Nine Months Ended September 30, 2021 2020 Total Revenue % of Company's Total Revenue Total Revenue % of Company's Total Revenue AMC $ 71,000 18.8 % $ 26,226 8.2 % Topgolf 63,445 16.8 % 60,330 18.8 % 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. Share-based compensation expense consists of share option expense and amortization of non-vested share grants issued to employees, and amortization of share units issued to non-employee Trustees for payment of their annual retainers. Share-based compensation is included in "General and administrative expense" in the accompanying consolidated statements of income (loss) and comprehensive income (loss). 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 (loss) and comprehensive income (loss) was $13 thousand an d $9 thousand for the nine months ended September 30, 2021 and 2020, respectively. 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 years or four years). Expense recognized related to nonvested shares and included in "General and administrative expense" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) was $6.6 million and $8.0 million for the nine months ended September 30, 2021 and 2020, respectively. Nonvested Performance Shares Issued to Employees The Company awards performance shares to the Company's executive officers pursuant to the Long-Term Incentive Plan. The performance shares contain both a market condition and a performance condition. The Company amortizes the expense related to the performance shares over the future vesting period of three years. Expense recognized related to performance shares and included in "General and administrative expense" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) was $2.9 million and $0.7 million for the nine months ended September 30, 2021 and 2020, respectively. 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 and included in "General and administrative expense" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) was $1.7 million an d $1.6 million for the nine months ended September 30, 2021 and 2020, respectively. Derivative Instruments The Company uses derivative instruments to reduce exposure to fluctuations in foreign currency exchange rates and variable interest rates. 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 foreign currency risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows are considered cash flow hedges. 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 hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. For its net investment hedges that hedge the foreign currency exposure of its Canadian investments, the Company has elected to assess hedge effectiveness using a method based on changes in spot exchange rates and record the changes in the fair value amounts excluded from the assessment of effectiveness into earnings on a systematic and rational basis. 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. If hedge accounting is not applied, realized and unrealized gains or losses are reported in earnings. The Company' |
Rental Properties
Rental Properties | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Rental Properties | The following table summarizes the carrying amounts of real estate investments as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Buildings and improvements $ 4,557,213 $ 4,526,342 Furniture, fixtures & equipment 117,978 118,334 Land 1,241,166 1,242,663 Leasehold interests 26,717 26,050 5,943,074 5,913,389 Accumulated depreciation (1,142,513) (1,062,087) Total $ 4,800,561 $ 4,851,302 Depreciation expense on real estate investments was $119.2 million and $122.1 million for the nine months ended September 30, 2021 and 2020, respectively. |
Impairment Charges (Notes)
Impairment Charges (Notes) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Asset Impairment Charges [Abstract] | ||||
Asset Impairment Charges [Text Block] | Impairment ChargesThe Company reviews its properties for changes in circumstances that indicate that the carrying value of a property may not be recoverable based on an estimate of undiscounted future cash flows. During the nine months ended September 30, 2021, the Company received various offers to sell two of its vacant properties. As a result, the Company reassessed the expected holding periods of such properties, and determined that the estimated cash flows were not sufficient to recover the carrying values of these properties. The Company estimated the fair value of these properties by taking into account these purchase offers. The Company reduced the carrying value of the real estate investments, net to $7.0 million. The Company recognized impairment charges of $2.7 million on the real estate investments, which is the amount that the carrying value of the assets exceeded the estimated fair value. | |||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Number of impaired properties | 2 | 2 | ||
Impaired Assets to be Disposed of by Method Other than Sale, Carrying Value of Asset | $ 7,000 | $ 7,000 | ||
Asset Impairment Charges | $ 2,711 | $ 11,561 | $ 2,711 | $ 62,825 |
Investments and Dispositions
Investments and Dispositions | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Investments | Investments and Dispositions The Company's investment spending during the nine months ended September 30, 2021 totaled $107.9 million, a nd included the acquisition of one eat and play property for approximately $26.7 million, spending on build-to-suit development, redevelopment projects and the acquisition of interests in two joint ventures described in Note 9 . |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | Accounts Receivable The following table summarizes the carrying amounts of accounts receivable as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Receivable from tenants $ 41,531 $ 81,120 Receivable from non-tenants 923 505 Straight-line rent receivable 38,037 34,568 Total $ 80,491 $ 116,193 As of September 30, 2021, receivable from tenants includes payments of approxi mately $39.2 million that were deferred due to the COVID-19 pandemic and determined to be collectible. Additionally, the Company has amounts due from tenants that were not booked as receivables as the full amounts were not deemed probable of collection as a result of COVID-19 pandemic. While deferments for this and future periods delay rent payments, these deferments do not release tenants from the obligation to pay the deferred amounts in the future. During the nine months ended September 30, 2021 , the Company collected $6.0 million in deferred rent from cash basis tenants and from tenants for which the deferred payments were not previously recognized as revenue. In addition, during the nine months |
Capital Markets Long Term Debt
Capital Markets Long Term Debt (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | The monthly cash dividend to common shareholders was temporarily suspende d following the common share dividend paid on May 15, 2020 to shareholders of record as of April 30, 2020. On July 13, 2021, following termination of the Covenant Relief Period, the Company resumed regular monthly cash dividends to common shareholders. During the three months ended September 30, 2021, the Company declared cash dividends totaling $0.75 per common share. During the year ended December 31, 2020, the Company amended the Consolidated Credit Agreement and the Note Purchase Agreement to modify certain provisions and waive its obligations to comply with certain covenants under these agreements. During the Covenant Relief Period, the Company's obligation to comply with certain covenants under these agreements was waived in light of the uncertainty related to impacts of the COVID-19 pandemic on the Company and its tenants and borrowers. The Company paid higher interest costs during the Covenant Relief Period and the interest rates on the revolving credit and term loan facilities both during and after the Covenant Relief Period are dependent on the Company's unsecured debt ratings. The amendments to the Consolidated Credit Agreement and Note Purchase Agreement also imposed additional restrictions on the Company during the Covenant Relief Period, including limitations on making investments, incurring indebtedness, making capital expenditures, paying dividends or making other distributions, repurchasing the Company's shares, voluntarily prepaying certain indebtedness, encumbering certain assets and maintaining a minimum liquidity amount, in each case subject to certain exceptions. The Company had the right under certain circumstances to terminate the Covenant Relief Period earlier, which it exercised on July 12, 2021 as discussed below. On July 12, 2021, the Company provided notice of its election to terminate the Covenant Relief Period early and was released from the additional restrictions described above. Also, as a result of this election, effective July 13, 2021, the interest rates for the revolving credit and term loan facilities, based on the Company's unsecured debt ratings, returned to LIBOR plus 1.20% and LIBOR plus 1.35%, respectively (both with a LIBOR floor of zero), and the facility fee on the revolving credit facility was reduced to 0.25%. Additionally, the interest rates for the private placement notes returned to 4.35% and 4.56% for the Series A notes and the Series B notes, respectively. During the nine months ended September 30, 2021, the Company paid off the balance of $590.0 million on its unsecured revolving credit facility. In addition, the Company paid down principal of approximately $23.8 million on its private placement notes resulting from the sale of assets in accordance with the amendments. On September 13, 2021, the Company paid off its $400.0 million unsecured term loan facility and $1.5 million of deferred financing costs (net of accumulated amortization) were written off during the three months ended September 30, 2021. In connection with the payoff, the Company terminated the related interest rate swap agreements on its term loan facility for a cash settlement of $3.2 million. Both amounts, totaling $4.7 million, are included in costs associated with loan refinancing or payoff for the three months ended September 30, 2021. See Note 10 for further details. During the three months ended September 30, 2021, the Company received an investment grade rating from S&P Global Ratings on its unsecured debt, adding to its current investment grade rating from Moody's Investors Services. The Company previously caused certain of its key subsidiaries to guarantee its obligations under its existing bank credit facility, private placement notes and senior unsecured bonds due to a decrease in the Company's credit ratings resulting from the impact of the COVID-19 pandemic. As a result of the Company obtaining an investment grade rating on its long-term unsecured debt from both S&P and Moody's, the Company's subsidiary guarantors were released from their guarantees under these debt agreements in accordance with the terms of such agreements. Additionally, during October of 2021, Moody's revised its outlook on the Company's investment grade rating on its unsecured debt from negative to stable. Subsequent to September 30, 2021, on October 6, 2021, the Company entered into a Third Amended, Restated and Consolidated Credit Agreement, governing a new amended and restated senior unsecured revolving credit facility. The new facility, which will mature on October 6, 2025, replaced the Company’s existing $1.0 billion senior unsecured revolving credit facility and $400.0 million senior uns ecured term loan facility. The new facility provides for an initial maximum principal amount of borrowing availability of $1.0 billion with an “accordion” feature under which the Company may increase the total maximum principal amount available by $1.0 billion, to a total of $2.0 billion, subject to lender consent. The new facility has the same pricing terms and financial covenants as the prior facility (with improved valuation of certain asset types), as well as customary covenants and events of default. The Company has two options to extend the maturity date of the new credit facility by an additional six months each (for a total of 12 months), subject to paying additional fees and the absence of any default. On October 27, 2021, the Company issued $400.0 million in aggregate principal amount of senior notes due November 15, 2031 pursuant to an underwritten public offering. The notes bear interest at an annual rate of 3.60%. Interest is payable on May 15 and November 15 of each year beginning on May 15, 2022 until the stated maturity date. The notes were issued at 99.174% of their face value and are unsecured. The n otes contain various covenants, including: (i) a limitation on incurrence of any debt which would cause the ratio of the Company’s debt to adjusted total assets to exceed 60%; (ii) a limitation on incurrence of any secured debt which would cause the ratio of the Company’s secured debt to adjusted total assets to exceed 40%; (iii) a limitation on incurrence of any debt which would cause the Company’s debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of the Company's total unencumbered assets such that they are not less than 150% of the Company’s outstanding unsecured debt. Net proceeds from the note offering will be used for the redemption of the Company's senior notes due in 2023 discussed below and for general business purposes, including the acquisition of experiential properties consistent with the Company’s current strategy . In addition, on October 13, 2021, the Company delivered notice of redemption to redeem all of the $275.0 million principal amount of its 5.25% senior notes due in 2023. The redemption date has been set for November 12, 2021 and the Company will use a portion of the proceeds from the senior note offering completed in October to fund this redemption plus the make-whole premium payment. |
Unconsolidated Real Estate Join
Unconsolidated Real Estate Joint Ventures (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Unconsolidated Real Estate Joint Ventures As of September 30, 2021 and December 31, 2020, the Company had a 65% investment interest in two unconsolidated real estate joint ventures related to two experiential lodging properties located in St. Petersburg Beach, Florida. The Company's partner, Gencom Acquisition, LLC and its affiliates, own the remaining 35% interest in the joint ventures. There are two separate joint ventures, one that holds the investment in the real estate of the experiential lodging properties and the other that holds lodging operations, which are facilitated by a management agreement with an eligible independent contractor. The Company's investment in the operating entity is held in a taxable REIT subsidiary (TRS). The Company accounts for its investment in these joint ventures under the equity method of accounting. As of September 30, 2021 and December 31, 2020, the Company had equity invest ments of $27.2 million an d $27.4 million, respectively, in these joint ventures. The joint venture that holds the real property has a secured mortgage loan of $85.0 million at September 30, 2021, that is due April 1, 2022. The note can be extended for two additional one-year periods upon the satisfaction of certain conditions. Additionally, the Company has guaranteed the completion of the renovations in the amount of approximately $34.8 million, with $0.2 million remain ing to fund at September 30, 2021. The mortgage loan bears interest at an annual rate equal to the greater of 6.00% or LIBOR plus 3.75%. Interest is payable monthly beginning on May 1, 2019 until the stated maturity date of April 1, 2022, which can be extended to April 1, 2023. The joint venture has an interest rate cap agreement to limit the variable portion of the interest rate (LIBOR) on this note to 3.0% from March 28, 2019 to April 1, 2023. The Company recognized losses of $2.8 million and $2.5 million during the nine months ended September 30, 2021 and 2020, respectively, and received no distributions during the nine months ended September 30, 2021 and 2020 related to the equity investments in these joint ventures. As of September 30, 2021 and December 31, 2020, the Company's investments in these two joint ventures were considered to be variable interests and the underlying entities are VIEs. The Company is not the primary beneficiary of the VIEs as the Company does not individually have the power to direct the activities that are most important to the joint ventures and accordingly these investments are not consolidated. The Company's maximum exposure to loss at September 30, 2021, is its investment in the joint ventures of $27.2 million as well as the Company's guarantee of the estimated costs to complete renovations of approximately $0.2 million. On August 26, 2021, the Company entered into two real estate joint venture agreements to acquire an experiential lodging property located in Wisconsin with an initial investment of $11.0 million. The Company's investments in these joint ventures were considered to be variable interests, however, the underlying entities are not VIEs. The Company has a 95% interest in these joint ventures and accounts for its investment under the equity method of accounting. The Company's partner, TJO Warrens, LLC and its affiliates, owns the remaining 5% interest in the joint ventures. There are two separate joint ventures, one that holds the investment in the real estate of the experiential lodging property and the other that holds lodging operations, which are facilitated by a management agreement. The Company's investment in the operating entity is held in a TRS. The joint venture that holds the real property has a secured mortgage loan of $15.0 million at September 30, 2021 and provides for additional draws of approximately $9.6 million to fund renovations. The maturity date of this mortgage loan is September 15, 2031. The loan bears interest at an annual fixed rate of 4.00% with monthly interest payments required. As of September 30, 2021, the Company had equity investments of $10.8 million in these two joint ventures. The Compan y recognized losses of $0.2 million during the three months ended September 30, 2021 and received no distributions during the three months ended September 30, 2021 related to the equity investments in these joint ventures. In addition, as of September 30, 2021 and December 31, 2020, the Company had equity inve stments of $0.7 million and $0.8 million, respectively, in unconsolidated joint ventures for three theatre projects located in China. During the nine months ended September 30, 2020, the Company recognized $3.2 million in other-than-temporary impairment charges on these equity investments. The Company determined the estimated fair value of these investments using Level 3 inputs, based primarily on discounted cash flow projections. The Company recognized income of $7 thousand and losses of $649 thousand during the nine months ended September 30, 2021 and 2020 , respectively, and received dist ributions of $90 thousand fro m its investment in these joint ventures for the nine months ended September 30, 2021. No distributions were received during the nine months ended September 30, 2020. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2021 | |
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 has elected not to offset its derivative position for purposes of balance sheet presentation and disclosure. The Compa ny had no derivative assets at September 30, 2021 and December 31, 2020. The Company had derivative liabilities of $4.4 million and $14.0 million at September 30, 2021 and December 31, 2020, respectively. The Company has not posted or received collateral with its derivative counterparties as of September 30, 2021 or December 31, 2020. See Note 11 for disclosures relating to the fair value of the derivative instruments. 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 on foreign currency transactions 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 uses interest rate swaps as its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt or payment of variable-rate amounts from a counterparty which results in the Company recording net interest expense that is fixed over the life of the agreements without exchange of the underlying notional amount. During the three months ended September 30, 2021, the Company terminated four of its interest rate swap agreements in connection with the payoff of the related unsecured term loan facility. These interest rate swaps had a combined notional amount of $400.0 million at termination and $3.2 million was reclassified into earnings as expense during the three months ended September 30, 2021, as the forecasted future transactions were no longer probable. At September 30, 2021, the Company had one interest rate swap agreement designated as a cash flow hedge of interest rate risk related to its variable rate secured bonds totaling $25.0 million. The interest rate swap agreement outstanding as of September 30, 2021 is summarized below: Fixed rate Notional Amount (in millions) Index Maturity 1.3925% $ 25.0 USD LIBOR September 30, 2024 The change 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 within the same income statement line item as the earnings effect of the hedged transaction. 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 September 30, 2021, the Company estimates t hat during the twelve months end ing September 30, 2022, $0.3 million of losses 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 CAD denominated cash flow from its four Canadian properties. The Company uses cross-currency swaps to mitigate its exposure to fluctuations in the USD-CAD exchange rate on cash inflows associated with these properties which should hedge a significant portion of the Company's expected CAD denominated cash flows. The Company entered into three USD-CAD cross-currency swaps that were effective July 1, 2020 with a fixed original notional value of $100.0 million CAD and $76.6 million USD. The net effect of these swaps is to lock in an exchange rate of $1.31 CAD per USD on approximately $7.2 million annual CAD denominated cash flows through June 2022. The change 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 reclassified into earnings in the period that the hedged forecasted transaction affects earnings within the same income statement line item as the earnings effect of the hedged transaction. As of September 30, 2021, the Company estimates t hat during the twelve months ending September 30, 2022, $0.1 million of losses wil l be reclassified from AOCI to other expense. Net Investment Hedges The Company is exposed to fluctuations in the USD-CAD exchange rate on its net investments in Canada. As such, the Company uses either currency forward agreements or cross-currency swaps to manage its exposure to changes in foreign exchange rates on certain of its foreign net investments. As of September 30, 2021, the Company had the following cross-currency swaps designated as net investment hedges: Fixed rate Notional Amount (in millions, CAD) Maturity $1.32 CAD per USD $ 100.0 July 1, 2023 $1.32 CAD per USD 100.0 July 1, 2023 Total $ 200.0 The cross-currency swaps also have a monthly settlement feature locked in at an exchange rate of $1.32 CAD per USD on $4.5 million of CAD annual cash flows, the net effect of which is an excluded component from the effectiveness testing of this hedge. For qualifying foreign currency derivatives designated as net investment hedges, the change in the fair value of the derivatives are reported in AOCI as part of the cumulative translation adjustment. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with the Company's accounting policy election. The earnings recognition of excluded components are presented in other 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 nine months ended September 30, 2021 and 2020. Effect of Derivative Instruments on the Consolidated Statements of Changes in Equity and Comprehensive Income for the Three and Nine Months Ended September 30, 2021 and 2020 (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Description 2021 2020 2021 2020 Cash Flow Hedges Interest Rate Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative $ (3,338) $ 123 $ (3,209) $ (11,550) Amount of Expense Reclassified from AOCI into Earnings (1) (4,962) (2,037) (9,074) (4,103) Cross-Currency Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative 143 (243) (71) 424 Amount of (Expense) Income Reclassified from AOCI into Earnings (2) (57) 13 (205) 455 Net Investment Hedges Cross-Currency Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative 4,456 (3,827) 356 3,160 Amount of Income Recognized in Earnings (2) (3) 97 141 270 475 Total Amount of Gain (Loss) Recognized in AOCI on Derivatives $ 1,261 $ (3,947) $ (2,924) $ (7,966) Amount of Expense Reclassified from AOCI into Earnings (5,019) (2,024) (9,279) (3,648) Amount of Income Recognized in Earnings 97 141 270 475 Interest expense, net in accompanying consolidated statements of income (loss) and comprehensive income (loss) $ 36,584 $ 41,744 $ 114,090 $ 114,837 Other income in accompanying consolidated statements of income (loss) and comprehensive income (loss) $ 8,091 $ 182 $ 9,802 $ 8,171 (1) Included in "Interest expense, net" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020. (2) Included in "Other income" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020. (3) Amounts represent derivative gains excluded from the effectiveness testing. As of September 30, 2021, the fair value of the Company's derivatives in a liability position related to these agreements w as $4.4 million. If t he 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 va lue of $4.5 million. As of September 30, 2021, the Company had not posted any collateral related to these agreements and was not in breach of any provisions in these agreements. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2021 | |
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 Measurement 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 Measurement 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 value of interest rate swaps is 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 September 30, 2021, 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 liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 aggregated by the level in the fair value hierarchy within which those measurements are classified and by derivative type. Liabilities Measured at Fair Value on a Recurring Basis at September 30, 2021 and December 31, 2020 (Dollars in thousands) Description Quoted Prices in Significant Significant Balance at September 30, 2021 Cross-Currency Swaps* $ — $ (3,781) $ — $ (3,781) Interest Rate Swap Agreements* — (610) — (610) December 31, 2020 Cross-Currency Swaps* — (4,271) — (4,271) Interest Rate Swap Agreements* — (9,723) — (9,723) * Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheets. Non-recurring fair value measurements The table below presents the Company's assets measured at fair value on a non-recurring basis as of September 30, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall. Assets Measured at Fair Value on a Non-Recurring Basis at September 30, 2021 and December 31, 2020 (Dollars in thousands) Description Quoted Prices in Significant Significant Balance at September 30, 2021 Real estate investments, net $ — $ 6,956 $ — $ 6,956 December 31, 2020: Real estate investments, net $ — $ 29,684 $ 9,860 $ 39,544 Operating lease right-of-use assets — — 12,953 12,953 Investment in joint ventures — — 771 771 Other assets (1) — — — — (1) Includes collateral dependent notes receivable, which are presented within "Other assets" in the accompanying consolidated balance sheet. During the nine months ended September 30, 2021, the Company recorded impairment charges related to real estate investments, net on two of its properties. Management estimated the fair values of these investments taking into account various factors including purchase offers, shortened hold periods and market conditions. The Company determined, based on the inputs, that the valuation of these properties with purchase offers were classified within Level 2 of the fair value hierarchy and were measured at fair val ue. During the year ended December 31, 2020, the Company recorded impairment charg es related to real estate invest ments, net and operating lease right-of-use assets. Management estimated the fair value of these investments taking into account various factors including purchase offers, independent appraisals, shortened hold periods and market conditions. The Company determined, based on the inputs, that its valuation of six of its properties with purchase offers were classified within Level 2 of the fair value hierarchy and were measured at fair val ue. Three properties, two of which included operating lease right-of-use assets, were measured at fair value using independent appraisals which used discounted cash flow models. These measurements were classified within Level 3 of the fair value hierarchy as many of the assumptions were not observable. During the year ended December 31, 2020, the Company recorded impairment charges related to its investment in joint ventures. Management estimated the fair value of these investments, taking into account various factors including implied asset value changes based on discounted cash flow projections and current market conditions. The Company determined, based on the inputs, that its valuation of investment in joint ventures was classified within Level 3 of the fair value hierarchy as many of the assumptions are not observable. During the year ended December 31, 2020, the Company recorded expected credit loss expense related to notes receivable from one borrower to fully reserve the outstanding pr incipal balance and unfunded commitment , as a result of changes in the borrower's financial status due to the impact of the COVID-19 pandemic. Management valued the loan based on the fair value of the underlying collateral which was based on review of the financial statements of the borrower, and was classified within Level 2 of the fair value hierarchy. Fair Value of Financial Instruments The following methods and assumptions were used by the Company to estimate the fair value of each class of financial instruments at September 30, 2021 and December 31, 2020: 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 September 30, 2021, the Company had a carrying value of $369.1 million in fixed rate mortgage notes receivable outstanding, including related accrued interest and allowance for credit losses, with a weighted average interest rate of approximately 9.02%. The fixed rate mortgage notes bear interest at rates of 7.01% to 11.96%. Discounting the future cash flows for fixed rate mortgage notes receivable using rates of 7.25% to 9.00%, management estimates the fair value of the fixed rate mortgage notes receivable to be approximately $406.0 million with an estimated weighted average market rate of 7.80% at September 30, 2021. At December 31, 2020, the Company had a carrying value of $365.6 million in fixed rate mortgage notes receivable outstanding, including related accrued interest, with a weighted average interest rate of approximately 9.03%. The fixed rate mortgage notes bear interest at rates of 7.01% to 11.78%. Discounting the future cash flows for fixed rate mortgage notes receivable using rates of 7.50% to 10.00%, management estimates the fair value of the fixed rate mortgage notes receivable to be $394.0 million with an estimated weighted average market rate of 8.11% at December 31, 2020. Derivative instruments: Derivative instruments are carried at their fair 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 September 30, 2021, the Company had a carrying va lue of $25.0 million in variable rate debt outstanding with an average interest rate of approximately 0.13%. The carrying value of the variable rate debt outstanding approximated the fair value at September 30, 2021. At December 31, 2020, the Company had a carrying value of $1.0 billion in variable rate debt outstanding with a weighted average interest rate of approximately 2.23%. The carrying value of the variable rate debt outstanding approximated the fair value at December 31, 2020. At September 30, 2021 and December 31, 2020, $25.0 million and $425.0 million, respectively, of the Company's variable rate debt, discussed above, had been effectively converted to a fixed rate by interest rate swap agreements. See Note 10 for additional information related to the Company's interest rate swap agreements. At September 30, 2021, the Company had a carrying value of $2.69 billion in fixed rate long-term debt outstanding with a weighted average interest rate of approximately 4.54%. Discounting the future cash flows for fixed rate debt using September 30, 2021 market rates of 1.91% to 4.56%, management estimates the fair value of the fixed rate debt to be approximately $2.86 billion with an estimated weighted average market rate of 3.04% at September 30, 2021. At December 31, 2020, the Company had a carrying value of $2.72 billion in fixed rate long-term debt outstanding with an average weighted interest rate of approximately 4.70%. Discounting the future cash flows for fixed rate debt using December 31, 2020 market rates of 4.09% to 5.81%, management estimates the fair value of the fixed rate debt to be approximately $2.69 billion with an estimated weighted average market rate of 4.70% at December 31, 2020. |
Assets Measured At Fair Value On A Recurring Basis | The table below presents the Company’s financial liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 aggregated by the level in the fair value hierarchy within which those measurements are classified and by derivative type. Liabilities Measured at Fair Value on a Recurring Basis at September 30, 2021 and December 31, 2020 (Dollars in thousands) Description Quoted Prices in Significant Significant Balance at September 30, 2021 Cross-Currency Swaps* $ — $ (3,781) $ — $ (3,781) Interest Rate Swap Agreements* — (610) — (610) December 31, 2020 Cross-Currency Swaps* — (4,271) — (4,271) Interest Rate Swap Agreements* — (9,723) — (9,723) * Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheets. |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | Non-recurring fair value measurements The table below presents the Company's assets measured at fair value on a non-recurring basis as of September 30, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall. Assets Measured at Fair Value on a Non-Recurring Basis at September 30, 2021 and December 31, 2020 (Dollars in thousands) Description Quoted Prices in Significant Significant Balance at September 30, 2021 Real estate investments, net $ — $ 6,956 $ — $ 6,956 December 31, 2020: Real estate investments, net $ — $ 29,684 $ 9,860 $ 39,544 Operating lease right-of-use assets — — 12,953 12,953 Investment in joint ventures — — 771 771 Other assets (1) — — — — |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021 and 2020 (amounts in thousands except per share information): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Income Shares Per Share Income Shares Per Share Basic EPS: Net income $ 32,117 $ 54,049 Less: preferred dividend requirements (6,033) (18,100) Net income available to common shareholders $ 26,084 74,804 $ 0.35 $ 35,949 74,738 $ 0.48 Diluted EPS: Net income available to common shareholders $ 26,084 74,804 $ 35,949 74,738 Effect of dilutive securities: Share options and performance shares — 107 — 81 Net income available to common shareholders $ 26,084 74,911 $ 0.35 $ 35,949 74,819 $ 0.48 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Income Shares Per Share Income Shares Per Share Basic EPS: Net loss $ (85,904) $ (111,751) Less: preferred dividend requirements (6,034) (18,102) Net loss available to common shareholders $ (91,938) 74,613 $ (1.23) $ (129,853) 76,456 $ (1.70) Diluted EPS: Net loss available to common shareholders $ (91,938) 74,613 $ (129,853) 76,456 Effect of dilutive securities: Share options and performance shares — — — — Net loss available to common shareholders $ (91,938) 74,613 $ (1.23) $ (129,853) 76,456 $ (1.70) The effect of the potential common shares from the conversion of the Company’s convertible preferred shares and from the exercise of share options are included in diluted earnings per share if the effect is dilutive. Potential common shares from the performance shares are included in diluted earnings per share upon the satisfaction of certain performance and market conditions. These conditions are evaluated at each reporting period and if the conditions have been satisfied during the reporting period, the number of contingently issuable shares are included in the computation of diluted earnings per share. The following shares have an anti-dilutive effect and are therefore excluded from the calculation of diluted earnings per share: • The addit ional 2.2 million common shares that would result from the conversion of the Company’s 5.75% Series C cumulative convertible preferred shares and the corresponding add-back of the preferred dividends declared on those sh ares for both the three and nine months ended September 30, 2021 and 2020. • The additional 1.7 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 for both the three and nine months ended September 30, 2021 and 2020. • Outstanding options to purchase 89 thousand common shares at per share prices ranging from $44.44 to $76.63 for both the three and nine months ended September 30, 2021. • Outstanding options to purchase 117 thousand common shares at per share prices ranging from $44.62 to $76.63 for both the three and nine months ended September 30, 2020. • The effect of 56 thousand contingently issuable performance shares granted during 2020 for both the three and nine months ended September 30, 2021 |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [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. The 2016 Equity Incentive Plan was amended by shareholders at the May 28, 2021 annual shareholder meeting. The amendment increased the number of authorized shares issuable under the plan from 1,950,000 shares to 3,950,000 shares. Additionally, the 2020 Long Term Incentive Plan (2020 LTIP) is a sub-plan under the Company's 2016 Equity Incentive Plan. Under the 2020 LTIP, the Company awards performance shares and restricted shares to the Company's executive officers. At September 30, 2021, there we re 2,362,709 shares available for grant under the 2016 Equity Incentive Plan. Share Options Share options 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. 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 Option price Weighted avg. Outstanding at December 31, 2020 116,690 $ 44.62 — $ 76.63 $ 56.36 Exercised (4,065) 47.77 — 47.77 47.77 Granted 1,838 44.44 — 44.44 44.44 Forfeited/Expired (4,806) 45.20 — 61.79 51.42 Outstanding at September 30, 2021 109,657 $ 44.44 — $ 76.63 $ 56.69 The weighted average fair value of options granted was $20.34 and $3.73 during the nine months ended September 30, 2021 and 2020, respectively. The intrinsic value of share options exercised was $7 thousand and $22 thousand for the nine months ended September 30, 2021 and 2020, respectively. The following table summarizes outstanding and exercisable options at September 30, 2021: Options outstanding Options exercisable Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) Options exercisable Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $44.44 - 49.99 22,295 3.1 20,457 0.9 50.00 - 59.99 31,008 2.8 30,050 2.6 60.00 - 69.99 52,198 4.8 50,031 3.7 70.00 - 76.63 4,156 6.3 3,186 6.0 109,657 3.9 $ 56.69 $ 66 103,724 2.9 $ 56.48 $ 57 Nonvested Shares A summary of the Company’s nonvested share activity and related information is as follows: Number of Weighted avg. Weighted avg. Outstanding at December 31, 2020 445,402 $ 68.47 Granted 246,562 44.44 Vested (201,380) 67.87 Forfeited (10,025) 59.75 Outstanding at September 30, 2021 480,559 $ 56.58 1.10 The holders of nonvested shares have voting rights and receive dividends from the date of grant. The fair value of the nonvested shares that vested was $6.6 million a nd $16.0 million for the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021, unamortized share-based compensation expense related to nonvested shares was $12.8 million. Nonvested Performance Shares A summary of the Company's nonvested performance share activity and related information is as follows: Target Number of Outstanding at December 31, 2020 56,338 Granted 102,438 Outstanding at September 30, 2021 158,776 The number of common shares issuable upon settlement of the performance shares granted during the nine months ended September 30, 2021 and 2020, will be based upon the Company's achievement level relative to the following performance measures at December 31, 2023 and 2022, respectively: 50% based upon the Company's Total Shareholder Return (TSR) relative to the TSRs of the Company's peer group companies, 25% based upon the Company's TSR relative to the TSRs of companies in the MSCI US REIT Index and 25% based upon the Company's Average Annual Growth in AFFO per share over the three-year performance period. The Company's achievement level relative to the performance measures is assigned a specific payout percentage which is multiplied by a target number of performance shares. The performance shares based on relative TSR performance have market conditions and are valued using a Monte Carlo simulation model on the grant date, which resulted in a grant date fair value of approximately $6.6 million and $3.0 million for the nine months ended September 30, 2021 and 2020, respectively. The estimated fair value is amortized to expense over the three-year vesting period, which ends on December 31, 2023 and 2022 for performance shares granted in 2021 and 2020, respectively. The following assumptions were used in the Monte Carlo simulation for computing the grant date fair value of the performance shares with a market condition for the nine months ended September 30, 2021: risk-free inte rest rate of 0.2%, volatility factors in the expected market price of the Company's common shares of 69% and an expected life of approximately three years. The performance shares based on growth in AFFO have a performance condition. The probability of achieving the performance condition is assessed at each reporting period. If it is deemed probable that the performance condition will be met, compensation cost will be recognized based on the closing price per share of the Company's common stock on the date of the grant multiplied by the number of awards expected to be earned. If it is deemed that it is not probable that the performance condition will be met, the Company will discontinue the recognition of compensation cost and any compensation cost previously recor ded will be reversed. At September 30, 2021, achievement of the performance condition was deemed probable for the performance shares granted during the nine months ended September 30, 2021, with an expected payout percentage of 200%, which resulted in a grant date fair value of approximately $2.3 million. Achievement of the performance condition for the performance shares granted during the nine months ended September 30, 2020 was deemed not probable at September 30, 2021. At September 30, 2021, unamortized share-based compensation expense related to nonvested pe rformance shares was $7.8 million. The performance shares accrue dividend equivalents which are paid only if common shares are issued upon settlement of the performance shares. During the nine months ended September 30, 2021 and 2020, the Company accrued dividend equivalents expected to be paid on earned awards of $65 thousand and $29 thousand, respectively. Restricted Share Units A summary of the Company’s restricted share unit activity and related information is as follows: Number of Weighted avg. Weighted avg. Outstanding at December 31, 2020 74,767 $ 31.57 Granted 43,306 49.15 Vested (74,767) 31.57 Outstanding at September 30, 2021 43,306 $ 49.15 0.67 The holders of restricted share units receive dividend equivalents from the date of grant. At September 30, 2021, unamortized share-based compensation expense related to restricte d share units was $1.4 million. |
Leases, Codification Topic 842
Leases, Codification Topic 842 | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lessor, Operating Leases | Operating Leases The Company’s real estate investments are leased under operating leases. The Company adopted Topic 842 on January 1, 2019 and elected to not reassess its prior conclusions about lease classification. Accordingly, these lease arrangements continue to be classified as operating leases. In addition to its lessor arrangements on its real estate investments, as of September 30, 2021 and December 31, 2020, the Company was le ssee in 54 and 53 ope rating ground leases, respectively. The Company's tenants, who are generally sub-tenants under these ground leases, are responsible for paying the rent under these ground leases. As of September 30, 2021, rental revenue from several of the Company's tenants, who are also sub-tenants under the ground leases, is being recognized on a cash basis. In most cases, the ground lease sub-tenants have continued to pay the rent under these ground leases. In addition, one of these properties is vacant. In the event the tenant fails to pay the ground lease rent or if the property is vacant, the Company is primarily responsible for the payment, assuming the Company does not sell or re-tenant the property. The Company is also the lessee in an operating lease of its executive office. The following table summarizes rental revenue, including sublease arrangements and lease costs, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Classification 2021 2020 2021 2020 Operating leases (1) Rental revenue $ 117,408 $ 54,785 $ 325,429 $ 283,891 Sublease income - operating ground leases (2) Rental revenue $ 5,632 $ 806 $ 16,108 $ 4,274 Lease costs Operating ground lease cost Property operating expense $ 5,827 $ 6,015 $ 17,051 $ 18,515 Operating office lease cost General and administrative expense $ 226 $ 226 $ 678 $ 678 Operating lease right-of-use asset impairment charges (3) Impairment charges $ — $ — $ — $ 15,009 (1) During the three and nine months ended September 30, 2020, the Company wrote-off straight-line rent receivables of $20.4 million and $25.4 million, respectively, to straight-line rental revenue classified in "Rental revenue" in the accompanying consolidated statements of income (loss) and comprehensive income (loss). Additionally, during the three and nine months ended September 30, 2020, the Company wrote-off lease receivables from tenants totaling $22.8 million and $23.0 million, respectively, to minimum rent and percentage rent classified in rental revenue in the accompanying consolidated statements of income (loss) and comprehensive income (loss) related to tenants being recognized on a cash basis. (2) During the three and nine months ended September 30, 2020, the Company wrote-off sub-lessor ground lease straight-line rent receivables totaling $3.5 million and $11.5 million, respectively, to straight-line rental revenue classified in "Rental revenue" in the accompanying consolidated statements of income (loss) and comprehensive income (loss). Additionally, during both the three and nine months ended September 30, 2020, the Company wrote-off sub-lessor ground lease receivables from tenants totaling $1.4 million, to minimum rent classified in rental revenue in the accompanying consolidated statements of income (loss) and comprehensive income (loss) related to tenants being recognized on a cash basis. (3) During the nine months ended September 30, 2020, the Company recognized impairment charges of $15.0 million related to the operating lease right-of-use assets at two of its properties. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company groups its investments into two reportable operating segments: Experiential and Education. The financial information summarized below is presented by reportable operating segment (in thousands): Balance Sheet Data: As of September 30, 2021 Experiential Education Corporate/Unallocated Consolidated Total Assets $ 5,060,248 $ 511,170 $ 149,739 $ 5,721,157 As of December 31, 2020 Experiential Education Corporate/Unallocated Consolidated Total Assets $ 5,133,486 $ 529,755 $ 1,040,944 $ 6,704,185 Operating Data: Three Months Ended September 30, 2021 Experiential Education Corporate/Unallocated Consolidated Rental revenue $ 113,589 $ 9,451 $ — $ 123,040 Other income 8,052 — 39 8,091 Mortgage and other financing income 8,283 233 — 8,516 Total revenue 129,924 9,684 39 139,647 Property operating expense 13,572 16 227 13,815 Other expense 7,851 — — 7,851 Total investment expenses 21,423 16 227 21,666 Net operating income - before unallocated items 108,501 9,668 (188) 117,981 Reconciliation to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): General and administrative expense (11,154) Costs associated with loan refinancing or payoff (4,741) Interest expense, net (36,584) Transaction costs (2,132) Credit loss benefit 14,096 Impairment charges (2,711) Depreciation and amortization (42,612) Equity in loss from joint ventures (418) Gain on sale of real estate 787 Income tax expense (395) Net income 32,117 Preferred dividend requirements (6,033) Net income available to common shareholders of EPR Properties $ 26,084 Operating Data: Three Months Ended September 30, 2020 Experiential Education Corporate/Unallocated Consolidated Rental revenue $ 40,270 $ 15,321 $ — $ 55,591 Other income 14 13 155 182 Mortgage and other financing income 7,761 343 — 8,104 Total revenue 48,045 15,677 155 63,877 Property operating expense 13,011 550 198 13,759 Other expense 2,680 — — 2,680 Total investment expenses 15,691 550 198 16,439 Net operating income - before unallocated items 32,354 15,127 (43) 47,438 Reconciliation to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): General and administrative expense (10,034) Interest expense, net (41,744) Transaction costs (2,776) Credit loss expense (5,707) Impairment charges (11,561) Depreciation and amortization (42,059) Equity in loss from joint ventures (1,044) Income tax expense (18,417) Net loss (85,904) Preferred dividend requirements (6,034) Net loss available to common shareholders of EPR Properties $ (91,938) Operating Data: Nine Months Ended September 30, 2021 Experiential Education Corporate/Unallocated Consolidated Rental revenue $ 313,424 $ 28,113 $ — $ 341,537 Other income 9,442 — 360 9,802 Mortgage and other financing income 24,663 772 — 25,435 Total revenue 347,529 28,885 360 376,774 Property operating expense 42,985 113 708 43,806 Other expense 13,428 — — 13,428 Total investment expenses 56,413 113 708 57,234 Net operating income - before unallocated items 291,116 28,772 (348) 319,540 Reconciliation to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): General and administrative expense (33,866) Costs associated with loan refinancing or payoff (4,982) Interest expense, net (114,090) Transaction costs (3,342) Credit loss benefit 19,677 Impairment charges (2,711) Depreciation and amortization (123,476) Equity in loss from joint ventures (3,000) Gain on sale of real estate 1,499 Income tax expense (1,200) Net income 54,049 Preferred dividend requirements (18,100) Net income available to common shareholders of EPR Properties $ 35,949 Operating Data: Nine Months Ended September 30, 2020 Experiential Education Corporate/Unallocated Consolidated Rental revenue $ 243,134 $ 45,031 $ — $ 288,165 Other income 7,227 13 931 8,171 Mortgage and other financing income 23,913 1,000 — 24,913 Total revenue 274,274 46,044 931 321,249 Property operating expense 39,854 1,719 608 42,181 Other expense 15,012 — — 15,012 Total investment expenses 54,866 1,719 608 57,193 Net operating income - before unallocated items 219,408 44,325 323 264,056 Reconciliation to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): General and administrative expense (31,454) Costs associated with loan refinancing or payoff (820) Interest expense, net (114,837) Transaction costs (4,622) Credit loss expense (10,383) Impairment charges (62,825) Depreciation and amortization (128,319) Equity in loss from joint ventures (3,188) Impairment charges on joint ventures (3,247) Gain on sale of real estate 242 Income tax benefit (16,354) Net loss (111,751) Preferred dividend requirements (18,102) Net loss available to common shareholders of EPR Properties $ (129,853) |
Other Commitments And Contingen
Other Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments And Contingencies | Other Commitments and Contingencies As of September 30, 2021 , the Company had 15 development projects with commitments to fund an aggregate of approximately $66.9 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. The Company has certain commitments related to its mortgage notes and notes receivable 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 September 30, 2021, the Company had two mortgage notes with commitments totaling approximately $12.8 million. If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
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 (GAAP) 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. GAAP 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 nine month period ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Amounts as of December 31, 2020 have been derived from the audited Consolidated Financial Statements as of that date and should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (SEC) on February 25, 2021. 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 in accordance with the consolidation guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The equity method of accounting is applied to entities in which the Company is not the primary beneficiary as defined in the FASB ASC Topic on Consolidation (Topic 810) but can exercise influence over the entity with respect to its operations and major decisions. |
Unusual Risks and Uncertainties [Table Text Block] | Risks and Uncertainties The Company continues to be subject to risks and uncertainties resulting from the COVID-19 pandemic. The COVID-19 pandemic severely impacted global economic activity and caused significant volatility and negative pressure in financial markets. In response to the COVID-19 pandemic, many jurisdictions within the United States and abroad instituted health and safety measures, including quarantines, mandated business and school closures and travel restrictions. As a result, the COVID-19 pandemic severely impacted experiential real estate properties, given that such properties involve congregate social activity and discretionary consumer spending . Although many of these health and safety measures have been lifted, the extent of the impact of the COVID-19 pandemic on the Company's business still remains highly uncertain and difficult to predict. As of September 30, 2021, the Company had no properties closed due to COVID-19 restrictions . The continuing impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the scope, severity and duration of any resurgence of the pandemic (including COVID-19 variants), the actions taken to contain the outbreak or any resurgence or mitigate their impacts, the distribution of vaccines and the efficacy of those vaccines, the ability of communities to achieve herd immunity, the public’s confidence in the health and safety measures implemented by the Company's tenants and borrowers, the continuing direct and indirect economic effects of the outbreak and containment measures, and the ability of the Company's tenants and borrowers to recover from the negative economic impacts of the pandemic as it subsides, and in many cases, service elevated levels of debt resulting from the pandemic, all of which are uncertain and cannot be predicted. During 2020 and the nine months ended September 30, 2021, the COVID-19 pandemic negatively affected the Company's business, and could continue to have material adverse effects on the Company's financial condition, results of operations and cash flows. The Company’s consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods pres ented. The Company considered the continuing impact of, and recovery from, the COVID-19 pandemic on the assumptions and estimates used in determining the Company’s financial condition and results of operations for the nine months ended September 30, 2021. The following were impacts to the Company's financial statements and business during the nine months ended September 30, 2021 arising out of or relating to the COVID-19 pandemic : • The Company continued to recognize revenue on a cash basis for certain tenants including American-Multi Cinema, Inc. (AMC) and Regal Cinemas (Regal), a subsidiary of Cineworld Group. • The Company reduced rental r eve nue by $9.1 million due to rent abatements. • As of September 30, 2021, t he Company has deferred amounts due from tenants of approxim ately $39.2 million and amounts due from borrowers of $1.7 million that are booked as receivables. Additionally, the Company has amounts due from tenants that were not booked as receivables because the full amounts were not deemed probable of collection as a result of the COVID-19 pandemic. The amounts not booked as receivables remain obligations of the tenants and will be recognized as revenue when received. During the nine months ended September 30, 2021 , the Company collected $6.0 million in deferred rent from cash basis tenants and from tenants for which the deferred payments were not previously recognized as revenue. In addition, the Company collected $53.5 million of deferred rent and interest from accrual basis tenants and borrowers that reduced related accounts and interest receivable. The repayment terms for all of these deferments vary by tenant or borrowers. • Through July 12, 2021, the Company remained in the Covenant Relief Period under the agreement that governs its unsecured revolving credit facility and its unsecured term loan facility (Consolidated Credit Agreement) and the agreement that governs its private placement notes (Note Purchase Agreement). During the Covenant Relief Period, the Company's obligation to comply with certain covenants under these agreements was waived in light of the uncertainty related to impacts of the COVID-19 pandemic on the Company and its tenants and borrowers. The Company paid higher interest costs during the Covenant Relief Period. The Consolidated Credit Agreement and Note Purchase Agreement also imposed additional restrictions on the Company during the Covenant Relief Period, including limitations on making investments, incurring indebtedness, making capital expenditures, paying dividends or making other distributions, repurchasing the Company's shares, voluntarily prepaying certain indebtedness, encumbering certain assets and maintaining a minimum liquidity amount, in each case subject to certain exceptions. The term "Covenant Relief Period," as used in this Quarterly Report on Form 10-Q, generally means the period of time beginning on June 29, 2020 and ending on (i) December 31, 2021, in the case of the Company's Consolidated Credit Agreement, or (ii) October 1, 2021 (subject to extension to January 1, 2022 at the Company's election, subject to certain conditions), in the case of the Company's Note Purchase Agreement governing its private placement notes. The Company had the right under certain circumstances to terminate the Covenant Relief Period earlier, which it exercised on July 12, 2021. • On July 12, 2021, the Company provided notice of its election to terminate the Covenant Relief Period early. The Company’s election to terminate the Covenant Relief Period early meant that, effective July 13, 2021, the interest rates on the debt governed by these agreements returned to the previous levels defined in the agreements, in each case based on the Company's unsecured debt ratings. By terminating the Covenant Relief Period, the Company was also released from certain restrictions under these agreements, including restrictions on investments, capital expenditures, incurrences of indebtedness and payment of dividends. • In connection with amending the Company's Consolidated Credit Agreement and Note Purchase Agreement to provide for the Covenant Relief Period discussed above, certain of the Company's key subsidiaries guaranteed the Company's obligations based on the Company's unsecured debt ratings. During the three months ended September 30, 2021, t he Company received an investment grade rating from S&P Global Ratings on its unsecured debt. As a result, the subsidiary guarantors were released from their guarantees under these debt agreements in accordance with the terms of such agreements. Additionally, during October of 2021, Moody's revised its outlook on the Company's investment grade rating on its unsecured debt from negative to stable. • During the nine months ended September 30, 2021, the Company decreased its expected credit losses by $19.7 million due to cash collections from a borrower on a previously fully reserved note and the release of its commitment to fund additional amounts to the borrower as well as a change in the expectation in the credit loss model of the timing of the economic recovery from the impacts of the COVID-19 pandemic. The monthly cash dividends to common shareholders were temporarily suspended following the common share dividend paid on May 15, 2020 to shareholders of record as of April 30, 2020. On July 13, 2021, following termination of the Covenant Relief Period, the Company resumed regular monthly cash dividends to common shareholders. During the three months ended September 30, 2021, the Company declared cash dividends totaling $0.75 per common share. |
Segment Reporting, Policy | Reportable SegmentsThe Company has two reportable operating segments: Experiential and Education. The Experiential segment includes the following property types: theatres, eat & play (including seven theatres located in entertainment districts), attractions, ski, experiential lodging, gaming, cultural and fitness & wellness. The Education segment includes the following property types: early childhood education centers and private schools. See Note 15 for financial information related to these reportable segments. |
Rental Properties | Real Estate Investments Real estate investments are carried at initial recorded value 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 years to 40 years for buildings, three years to 25 years for furniture, fixtures and equipment and 10 years to 20 years for site improvements. Tenant improvements, including allowances, are depreciated over the shorter of the lease term or the estimated useful life and leasehold interests are depreciated over the useful life of the underlying ground lease. Management reviews the Company's real estate investments, including operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying value of a property may not be recoverable, which 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 and are generally classified as held for sale once management has initiated an active program to market them for sale and it is probable the assets will be sold within one year. On occasion, the Company will receive unsolicited offers from third parties to buy individual Company owned 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. |
Business Combinations and Other Purchase of Business Transactions, Policy [Policy Text Block] | Real Estate Acquisitions Upon acquisition of real estate properties, the Company evaluates the acquisition to determine if it is a business combination or an asset acquisition. If the acquisition is determined to be an asset acquisition, the Company records the purchase price and other related costs incurred to the acquired tangible assets and identified intangible assets and liabilities on a relative fair value basis. In addition, costs incurred for asset acquisitions, including transaction costs, are capitalized. If the acquisition is determined to be a business combination, the Company records the fair value of acquired tangible assets and identified intangible assets and liabilities as well as any noncontrolling interest. Acquisition-related costs in connection with business combinations are expensed as incurred and included in "Transaction costs" in the accompanying consolidated statements of income (loss) and comprehensive income (loss). |
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. Deferred financin g costs of $32.2 million and $35.6 million as of September 30, 2021 and December 31, 2020, respectively, are shown as a reduction of debt. The deferred financing costs of $1.7 million and $4.8 million as of September 30, 2021 and December 31, 2020, respectively, related to the unsecured revolving credit facility are included in "Other assets" in the accompanying consolidated balance s |
Revenue Recognition | Rental Revenue The Company leases real estate to its tenants under leases that are classified as operating leases. The Company's leases generally provide for rent escalations throughout the lease terms. Rents that are fixed are recognized on a straight-line basis over the lease term. Base rent escalations that include a variable component are recognized upon the occurrence of the specified event as defined in the Company's lease agreements. Many of the Company's leasing arrangements include options to extend the lease, which are not included in the minimum lease terms unless it is reasonably certain to be exercised. Straight-line rental revenue is subject to an evaluation for collectibility, and the Company records a direct write-off against rental revenue if collectibility of these future rents is not probable. For the nine months ended September 30, 2021, the Company recognized straight-line write-offs totaling $0.2 million. Straight-line rental revenue, net of write-offs, was $3.7 million for the nine months ended September 30, 2021. For the nine months ended September 30, 2020, the Company recognized straight-line write-offs totaling $36.9 million, which were comprised of $25.4 million of straight-line accounts receivable and $11.5 million of sub-lessor ground lease straight-line accounts receivable. Straight-line rental revenue, net of write-offs, was a reduction to total rental revenue of $25.4 million for the nine months ended September 30, 2020. The Company has agreed to defer rent for a substantial portion of its customers in response to the impact of the COVID-19 pandemic on their operations. On April 10, 2020, the FASB issued a Staff Q&A on Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic. In reliance upon the FASB Staff Q&A, the Company has not treated qualifying deferrals or rent concessions during the period affected by the COVID-19 pandemic as lease modifications. While deferments for this and future periods delay rent payments, these deferments generally do not release customers from the obligation to pay the deferred amounts in the future. Deferred rent amounts are reflected in the Company's financial statements as accounts receivable if collection is determined to be probable or recognized when received as variable lease payments if collection is determined to not be probable. Certain agreements with tenants where remaining lease terms are extended, or other changes are made that do not qualify for the treatment in the FASB Staff Q&A, are treated as lease modifications. In these circumstances, upon an executed lease modification, if the tenant is not being recognized on a cash basis, the contractual rent reflected in accounts receivable and straight-line rent receivable will be amortized over the remaining term of the lease against rental revenue. In limited cases, customers may be entitled to the abatement of rent during governmentally imposed prohibitions on business operations which is recognized in the period to which the abatement relates, or the Company may provide rent concessions to tenants. In cases where the Company provides concessions to tenants to which they are not otherwise entitled, those amounts will be recognized in the period in which the concession is granted unless the changes are accounted for as lease modifications. Most of the Company’s lease contracts are triple-net leases, which require the tenants to make payments to third parties for lessor costs (such as property taxes and insurance) associated with the properties. In accordance with Topic 842, the Company does not include these lessee payments to third parties in rental revenue or property operating expenses. In certain situations, the Company pays these lessor costs directly to third parties and the tenants reimburse the Company. In accordance with Topic 842, these payments are presented on a gross basis in rental revenue and property operating expense. During the nine months ended September 30, 2021 and 2020, the Company recogni zed $2.8 million and $1.4 million , respectively, in tenant reimbursements related to the gross up of these reimbursed expenses which are included in rental revenue. Certain of the Company's leases, particularly at its entertainment districts, require the tenants to make payments to the Company for property-related expenses such as common area maintenance. The Company has elected to combine these non-lease components with the lease components in rental revenue. For the nine months ended September 30, 2021 and 2020, the non-lease components included in rental revenue tota led $11.2 million and $8.9 million, respectively. In addition, most of the Company's tenants are subject to additional rents (above base rents) if gross revenues of the properties exceed certain thresholds defined in the lease agreements (percentage rents). Percentage rents are recognized at the time when specific trigger ing events occur as provided by the lease agreement. Rental revenue included percentage rents of $7.2 million and $5.5 million fo r the nine months ended September 30, 2021 and 2020, respectively. Furthermore, due to the impact of the COVID-19 pandemic, certain of the Company's tenants paid a portion of base rent in 2021 based on a percentage of gross revenue. This variable rent totaled $11.3 million for the nine months ended September 30, 2021. The Company regularly evaluates the collectibility of its receivables on a lease-by-lease basis. The evaluation primarily consists of reviewing past due account balances and considering such factors as the credit quality of the Company's tenants, historical trends of the tenant, current economic conditions and changes in customer payment terms. When the collectibility of lease receivables or future lease payments are no longer probable, the Company records a direct write-off of the receivable to rental revenue and recognizes future rental revenue on a cash basis. |
Property Sales, Policy [Policy Text Block] | Property Sales Sales of real estate properties are recognized when a contract exists and the purchaser has obtained control of the property. Gains on sales of properties are recognized in full in a partial sale of nonfinancial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value. |
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 less allowance for credit loss. Interest income is recognized using the effective interest method over the estimated life of the note. Interest income includes both the stated interest and the amortization or accretion of premiums or discounts (if any). In accordance with ASC Topic 326, Measurement of Credit Losses on Financial Instruments, the Company records allowance for credit loss to reflect that all mortgage notes and notes receivable have some inherent risk of loss regardless of credit quality, collateral, or other mitigating factors. While Topic 326 does not require any particular method for determining the reserves, it does specify that it should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, as well as reasonable and supportable forecasts for the term of each mortgage note or note receivable. The Company uses a forward looking commercial real estate forecasting tool to estimate its current expected credit losses (CECL) for each of its mortgage notes and notes receivable on a loan by loan basis. The CECL allowance required by Topic 326 is a valuation account that is deducted from the related mortgage note or note receivable. Certain of the Company’s mortgage notes and notes receivable include commitments to fund incremental amounts to its borrowers. These future funding commitments are also subject to the CECL model. The allowance related to future funding is recorded as a liability and is included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheet. As permitted under Topic 326, the Company made an accounting policy election to not measure an allowance for credit losses for accrued interest receivables related to its mortgage notes and notes receivable. Accordingly, if accrued interest receivable is deemed to be uncollectible, the Company will record any necessary write-offs as a reversal of interest in come. As of September 30, 2021, the Company believes that all outstanding accrued interest is collectible. |
Mortgage and Other Financing Income [Policy Text Block] | Mortgage and Other Financing IncomeCertain of the Company's borrowers are subject to additional interest based on certain thresholds defined in the mortgage agreements (participating interest). Participating interest income is recognized at the time when specific parameters have been met as provided by the mortgage agreement. There was no participating interest income for the nine months ended September 30, 2021 and 2020. |
Concentrations Of Risk | Concentrations of Risk AMC and Topgolf USA (Topgolf) represented a significant portion of the Company's total revenue for the nine months ended September 30, 2021 and 2020. The Company began recognizing revenue on a cash basis for AMC at the end of the first quarter of 2020 and cash payments have been reduced due to the impact of the COVID-19 pandemic. The following is a summary of the Company's total revenue derived from rental or interest payments from AMC and Topgolf (dollars in thousands): Nine Months Ended September 30, 2021 2020 Total Revenue % of Company's Total Revenue Total Revenue % of Company's Total Revenue AMC $ 71,000 18.8 % $ 26,226 8.2 % Topgolf 63,445 16.8 % 60,330 18.8 % |
Shareholders' Equity and Share-based Payments | 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. Share-based compensation expense consists of share option expense and amortization of non-vested share grants issued to employees, and amortization of share units issued to non-employee Trustees for payment of their annual |
Compensation Related Costs, Policy | 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. Share-based compensation expense consists of share option expense and amortization of non-vested share grants issued to employees, and amortization of share units issued to non-employee Trustees for payment of their annual |
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 (loss) and comprehensive income (loss) was $13 thousand an |
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 years or four years). Expense recognized related to nonvested shares and included in "General and administrative expense" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) was $6.6 million and $8.0 million for the nine months ended September 30, 2021 and 2020, respectively. Nonvested Performance Shares Issued to Employees |
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 and included in "General and administrative expense" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) was $1.7 million an |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments to reduce exposure to fluctuations in foreign currency exchange rates and variable interest rates. 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 foreign currency risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows are considered cash flow hedges. 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 hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. For its net investment hedges that hedge the foreign currency exposure of its Canadian investments, the Company has elected to assess hedge effectiveness using a method based on changes in spot exchange rates and record the changes in the fair value amounts excluded from the assessment of effectiveness into earnings on a systematic and rational basis. 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. If hedge accounting is not applied, realized and unrealized gains or losses are reported in earnings. 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 March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) |
Rental Properties (Tables)
Rental Properties (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Summary Of Carrying Amounts Of Rental Properties | The following table summarizes the carrying amounts of real estate investments as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Buildings and improvements $ 4,557,213 $ 4,526,342 Furniture, fixtures & equipment 117,978 118,334 Land 1,241,166 1,242,663 Leasehold interests 26,717 26,050 5,943,074 5,913,389 Accumulated depreciation (1,142,513) (1,062,087) Total $ 4,800,561 $ 4,851,302 |
Investment in Mortgage Notes an
Investment in Mortgage Notes and Notes Receivable Investment in Mortgage Notes and Notes Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table summarizes the carrying amounts of accounts receivable as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Receivable from tenants $ 41,531 $ 81,120 Receivable from non-tenants 923 505 Straight-line rent receivable 38,037 34,568 Total $ 80,491 $ 116,193 As of September 30, 2021, receivable from tenants includes payments of approxi mately $39.2 million that were deferred due to the COVID-19 pandemic and determined to be collectible. Additionally, the Company has amounts due from tenants that were not booked as receivables as the full amounts were not deemed probable of collection as a result of COVID-19 pandemic. While deferments for this and future periods delay rent payments, these deferments do not release tenants from the obligation to pay the deferred amounts in the future. During the nine months ended September 30, 2021 , the Company collected $6.0 million in deferred rent from cash basis tenants and from tenants for which the deferred payments were not previously recognized as revenue. In addition, during the nine months |
Allowance for Credit Losses [Text Block] | The following summarizes the activity within the allowance for credit losses related to mortgage notes, unfunded commitments and notes receivable for the nine months ended September 30, 2021 (in thousands): Mortgage notes receivable Unfunded commitments - mortgage notes receivable Notes receivable Unfunded commitments - notes receivable Total Allowance for credit losses at December 31, 2020 $ 7,000 $ 138 $ 12,854 $ 12,866 $ 32,858 Credit loss (benefit) expense (4,152) (54) (2,605) (12,866) (19,677) Charge-offs — — — — — Recoveries — — — — — Allowance for credit losses at September 30, 2021 $ 2,848 $ 84 $ 10,249 $ — $ 13,181 |
Mortgage Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Investment in mortgage notes, including related accrued interest receivable, at September 30, 2021 and December 31, 2020 consists of the following (in thousands): Outstanding principal amount of mortgage Carrying amount as of Unfunded commitments Description Year of Origination Interest Rate Maturity Date September 30, 2021 December 31, 2020 September 30, 2021 Private school property Mableton, Georgia (1) 2017 9.02 % Prepaid in full $ — $ — $ 5,278 $ — Attraction property Powells Point, North Carolina 2019 7.75 % 6/30/2025 28,521 27,908 27,045 — Fitness & wellness property Omaha, Nebraska 2017 7.85 % 1/3/2027 10,905 11,278 11,225 — Fitness & wellness property Merriam, Kansas 2019 7.55 % 7/31/2029 9,090 9,398 9,355 — Ski property Girdwood, Alaska 2019 8.21 % 12/31/2029 44,605 44,537 40,680 12,395 Fitness & wellness property Omaha, Nebraska 2016 7.85 % 6/30/2030 10,539 10,797 8,630 379 Experiential lodging property Nashville, Tennessee 2019 7.01 % 9/30/2031 71,223 70,422 67,235 — Eat & play property Austin, Texas 2012 11.31 % 6/1/2033 10,915 11,073 11,929 — Ski property West Dover and Wilmington, Vermont 2007 11.96 % 12/1/2034 51,050 51,045 51,031 — Four ski properties Ohio and Pennsylvania 2007 10.91 % 12/1/2034 37,562 37,506 37,413 — Ski property Chesterland, Ohio 2012 11.38 % 12/1/2034 4,550 4,509 4,396 — Ski property Hunter, New York 2016 8.72 % 1/5/2036 21,000 21,000 21,000 — Eat & play property Midvale, Utah 2015 10.25 % 5/31/2036 17,505 17,729 18,289 — Eat & play property West Chester, Ohio 2015 9.75 % 8/1/2036 18,068 18,285 18,830 — Fitness & wellness property Fort Collins, Colorado 2018 7.85 % 1/31/2038 10,292 10,568 10,408 — Early childhood education center Lake Mary, Florida 2019 7.98 % 5/9/2039 4,200 4,321 4,348 — Eat & play property Eugene, Oregon 2019 8.13 % 6/17/2039 14,700 14,759 14,799 — Early childhood education center Lithia, Florida 2017 8.42 % 10/31/2039 3,959 3,999 3,737 — $ 368,684 $ 369,134 $ 365,628 $ 12,774 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule Of Accounts Receivable | The following table summarizes the carrying amounts of accounts receivable as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Receivable from tenants $ 41,531 $ 81,120 Receivable from non-tenants 923 505 Straight-line rent receivable 38,037 34,568 Total $ 80,491 $ 116,193 As of September 30, 2021, receivable from tenants includes payments of approxi mately $39.2 million that were deferred due to the COVID-19 pandemic and determined to be collectible. Additionally, the Company has amounts due from tenants that were not booked as receivables as the full amounts were not deemed probable of collection as a result of COVID-19 pandemic. While deferments for this and future periods delay rent payments, these deferments do not release tenants from the obligation to pay the deferred amounts in the future. During the nine months ended September 30, 2021 , the Company collected $6.0 million in deferred rent from cash basis tenants and from tenants for which the deferred payments were not previously recognized as revenue. In addition, during the nine months |
Capital Markets Issuance of Sha
Capital Markets Issuance of Shares (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Common And Preferred Shares Disclosure [Text Block] | During the three and nine months ended September 30, 2021, the Board declared cash dividends of $0.359375 and $1.078125 per share, respectively, on both the Company's 5.75% Series C cumulative convertible preferred shares and the Company's 5.75% Series G cumulative redeemable preferred shares and $0.5625 and $1.6875 per share, respectively, on the Company's 9.00% Series E cumulative convertible preferred shares. The monthly cash dividend to common shareholders was temporarily suspende d following the common share dividend paid on May 15, 2020 to shareholders of record as of April 30, 2020. On July 13, 2021, following termination of the Covenant Relief Period, the Company resumed regular monthly cash dividends to common shareholders. During the three months ended September 30, 2021, the Company declared cash dividends totaling $0.75 per common share. During the year ended December 31, 2020, the Company amended the Consolidated Credit Agreement and the Note Purchase Agreement to modify certain provisions and waive its obligations to comply with certain covenants under these agreements. During the Covenant Relief Period, the Company's obligation to comply with certain covenants under these agreements was waived in light of the uncertainty related to impacts of the COVID-19 pandemic on the Company and its tenants and borrowers. The Company paid higher interest costs during the Covenant Relief Period and the interest rates on the revolving credit and term loan facilities both during and after the Covenant Relief Period are dependent on the Company's unsecured debt ratings. The amendments to the Consolidated Credit Agreement and Note Purchase Agreement also imposed additional restrictions on the Company during the Covenant Relief Period, including limitations on making investments, incurring indebtedness, making capital expenditures, paying dividends or making other distributions, repurchasing the Company's shares, voluntarily prepaying certain indebtedness, encumbering certain assets and maintaining a minimum liquidity amount, in each case subject to certain exceptions. The Company had the right under certain circumstances to terminate the Covenant Relief Period earlier, which it exercised on July 12, 2021 as discussed below. On July 12, 2021, the Company provided notice of its election to terminate the Covenant Relief Period early and was released from the additional restrictions described above. Also, as a result of this election, effective July 13, 2021, the interest rates for the revolving credit and term loan facilities, based on the Company's unsecured debt ratings, returned to LIBOR plus 1.20% and LIBOR plus 1.35%, respectively (both with a LIBOR floor of zero), and the facility fee on the revolving credit facility was reduced to 0.25%. Additionally, the interest rates for the private placement notes returned to 4.35% and 4.56% for the Series A notes and the Series B notes, respectively. During the nine months ended September 30, 2021, the Company paid off the balance of $590.0 million on its unsecured revolving credit facility. In addition, the Company paid down principal of approximately $23.8 million on its private placement notes resulting from the sale of assets in accordance with the amendments. On September 13, 2021, the Company paid off its $400.0 million unsecured term loan facility and $1.5 million of deferred financing costs (net of accumulated amortization) were written off during the three months ended September 30, 2021. In connection with the payoff, the Company terminated the related interest rate swap agreements on its term loan facility for a cash settlement of $3.2 million. Both amounts, totaling $4.7 million, are included in costs associated with loan refinancing or payoff for the three months ended September 30, 2021. See Note 10 for further details. During the three months ended September 30, 2021, the Company received an investment grade rating from S&P Global Ratings on its unsecured debt, adding to its current investment grade rating from Moody's Investors Services. The Company previously caused certain of its key subsidiaries to guarantee its obligations under its existing bank credit facility, private placement notes and senior unsecured bonds due to a decrease in the Company's credit ratings resulting from the impact of the COVID-19 pandemic. As a result of the Company obtaining an investment grade rating on its long-term unsecured debt from both S&P and Moody's, the Company's subsidiary guarantors were released from their guarantees under these debt agreements in accordance with the terms of such agreements. Additionally, during October of 2021, Moody's revised its outlook on the Company's investment grade rating on its unsecured debt from negative to stable. Subsequent to September 30, 2021, on October 6, 2021, the Company entered into a Third Amended, Restated and Consolidated Credit Agreement, governing a new amended and restated senior unsecured revolving credit facility. The new facility, which will mature on October 6, 2025, replaced the Company’s existing $1.0 billion senior unsecured revolving credit facility and $400.0 million senior uns ecured term loan facility. The new facility provides for an initial maximum principal amount of borrowing availability of $1.0 billion with an “accordion” feature under which the Company may increase the total maximum principal amount available by $1.0 billion, to a total of $2.0 billion, subject to lender consent. The new facility has the same pricing terms and financial covenants as the prior facility (with improved valuation of certain asset types), as well as customary covenants and events of default. The Company has two options to extend the maturity date of the new credit facility by an additional six months each (for a total of 12 months), subject to paying additional fees and the absence of any default. On October 27, 2021, the Company issued $400.0 million in aggregate principal amount of senior notes due November 15, 2031 pursuant to an underwritten public offering. The notes bear interest at an annual rate of 3.60%. Interest is payable on May 15 and November 15 of each year beginning on May 15, 2022 until the stated maturity date. The notes were issued at 99.174% of their face value and are unsecured. The n otes contain various covenants, including: (i) a limitation on incurrence of any debt which would cause the ratio of the Company’s debt to adjusted total assets to exceed 60%; (ii) a limitation on incurrence of any secured debt which would cause the ratio of the Company’s secured debt to adjusted total assets to exceed 40%; (iii) a limitation on incurrence of any debt which would cause the Company’s debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of the Company's total unencumbered assets such that they are not less than 150% of the Company’s outstanding unsecured debt. Net proceeds from the note offering will be used for the redemption of the Company's senior notes due in 2023 discussed below and for general business purposes, including the acquisition of experiential properties consistent with the Company’s current strategy . In addition, on October 13, 2021, the Company delivered notice of redemption to redeem all of the $275.0 million principal amount of its 5.25% senior notes due in 2023. The redemption date has been set for November 12, 2021 and the Company will use a portion of the proceeds from the senior note offering completed in October to fund this redemption plus the make-whole premium payment. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021 and 2020. Effect of Derivative Instruments on the Consolidated Statements of Changes in Equity and Comprehensive Income for the Three and Nine Months Ended September 30, 2021 and 2020 (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Description 2021 2020 2021 2020 Cash Flow Hedges Interest Rate Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative $ (3,338) $ 123 $ (3,209) $ (11,550) Amount of Expense Reclassified from AOCI into Earnings (1) (4,962) (2,037) (9,074) (4,103) Cross-Currency Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative 143 (243) (71) 424 Amount of (Expense) Income Reclassified from AOCI into Earnings (2) (57) 13 (205) 455 Net Investment Hedges Cross-Currency Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative 4,456 (3,827) 356 3,160 Amount of Income Recognized in Earnings (2) (3) 97 141 270 475 Total Amount of Gain (Loss) Recognized in AOCI on Derivatives $ 1,261 $ (3,947) $ (2,924) $ (7,966) Amount of Expense Reclassified from AOCI into Earnings (5,019) (2,024) (9,279) (3,648) Amount of Income Recognized in Earnings 97 141 270 475 Interest expense, net in accompanying consolidated statements of income (loss) and comprehensive income (loss) $ 36,584 $ 41,744 $ 114,090 $ 114,837 Other income in accompanying consolidated statements of income (loss) and comprehensive income (loss) $ 8,091 $ 182 $ 9,802 $ 8,171 (1) Included in "Interest expense, net" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020. (2) Included in "Other income" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021 and 2020 (amounts in thousands except per share information): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Income Shares Per Share Income Shares Per Share Basic EPS: Net income $ 32,117 $ 54,049 Less: preferred dividend requirements (6,033) (18,100) Net income available to common shareholders $ 26,084 74,804 $ 0.35 $ 35,949 74,738 $ 0.48 Diluted EPS: Net income available to common shareholders $ 26,084 74,804 $ 35,949 74,738 Effect of dilutive securities: Share options and performance shares — 107 — 81 Net income available to common shareholders $ 26,084 74,911 $ 0.35 $ 35,949 74,819 $ 0.48 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Income Shares Per Share Income Shares Per Share Basic EPS: Net loss $ (85,904) $ (111,751) Less: preferred dividend requirements (6,034) (18,102) Net loss available to common shareholders $ (91,938) 74,613 $ (1.23) $ (129,853) 76,456 $ (1.70) Diluted EPS: Net loss available to common shareholders $ (91,938) 74,613 $ (129,853) 76,456 Effect of dilutive securities: Share options and performance shares — — — — Net loss available to common shareholders $ (91,938) 74,613 $ (1.23) $ (129,853) 76,456 $ (1.70) |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary Of Share Option Activity | A summary of the Company’s share option activity and related information is as follows: Number of Option price Weighted avg. Outstanding at December 31, 2020 116,690 $ 44.62 — $ 76.63 $ 56.36 Exercised (4,065) 47.77 — 47.77 47.77 Granted 1,838 44.44 — 44.44 44.44 Forfeited/Expired (4,806) 45.20 — 61.79 51.42 Outstanding at September 30, 2021 109,657 $ 44.44 — $ 76.63 $ 56.69 |
Summary Of Outstanding Options | The following table summarizes outstanding and exercisable options at September 30, 2021: Options outstanding Options exercisable Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) Options exercisable Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $44.44 - 49.99 22,295 3.1 20,457 0.9 50.00 - 59.99 31,008 2.8 30,050 2.6 60.00 - 69.99 52,198 4.8 50,031 3.7 70.00 - 76.63 4,156 6.3 3,186 6.0 109,657 3.9 $ 56.69 $ 66 103,724 2.9 $ 56.48 $ 57 |
Summary Of Nonvested Share Activity | A summary of the Company’s nonvested share activity and related information is as follows: Number of Weighted avg. Weighted avg. Outstanding at December 31, 2020 445,402 $ 68.47 Granted 246,562 44.44 Vested (201,380) 67.87 Forfeited (10,025) 59.75 Outstanding at September 30, 2021 480,559 $ 56.58 1.10 The holders of nonvested shares have voting rights and receive dividends from the date of grant. The fair value of the nonvested shares that vested was $6.6 million a nd $16.0 million for the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021, unamortized share-based compensation expense related to nonvested shares was $12.8 million. Nonvested Performance Shares A summary of the Company's nonvested performance share activity and related information is as follows: Target Number of Outstanding at December 31, 2020 56,338 Granted 102,438 Outstanding at September 30, 2021 158,776 The number of common shares issuable upon settlement of the performance shares granted during the nine months ended September 30, 2021 and 2020, will be based upon the Company's achievement level relative to the following performance measures at December 31, 2023 and 2022, respectively: 50% based upon the Company's Total Shareholder Return (TSR) relative to the TSRs of the Company's peer group companies, 25% based upon the Company's TSR relative to the TSRs of companies in the MSCI US REIT Index and 25% based upon the Company's Average Annual Growth in AFFO per share over the three-year performance period. The Company's achievement level relative to the performance measures is assigned a specific payout percentage which is multiplied by a target number of performance shares. The performance shares based on relative TSR performance have market conditions and are valued using a Monte Carlo simulation model on the grant date, which resulted in a grant date fair value of approximately $6.6 million and $3.0 million for the nine months ended September 30, 2021 and 2020, respectively. The estimated fair value is amortized to expense over the three-year vesting period, which ends on December 31, 2023 and 2022 for performance shares granted in 2021 and 2020, respectively. The following assumptions were used in the Monte Carlo simulation for computing the grant date fair value of the performance shares with a market condition for the nine months ended September 30, 2021: risk-free inte rest rate of 0.2%, volatility factors in the expected market price of the Company's common shares of 69% and an expected life of approximately three years. The performance shares based on growth in AFFO have a performance condition. The probability of achieving the performance condition is assessed at each reporting period. If it is deemed probable that the performance condition will be met, compensation cost will be recognized based on the closing price per share of the Company's common stock on the date of the grant multiplied by the number of awards expected to be earned. If it is deemed that it is not probable that the performance condition will be met, the Company will discontinue the recognition of compensation cost and any compensation cost previously recor ded will be reversed. At September 30, 2021, achievement of the performance condition was deemed probable for the performance shares granted during the nine months ended September 30, 2021, with an expected payout percentage of 200%, which resulted in a grant date fair value of approximately $2.3 million. Achievement of the performance condition for the performance shares granted during the nine months ended September 30, 2020 was deemed not probable at September 30, 2021. At September 30, 2021, unamortized share-based compensation expense related to nonvested pe rformance shares was $7.8 million. |
Summary Of Restricted Share Unit Activity | A summary of the Company’s restricted share unit activity and related information is as follows: Number of Weighted avg. Weighted avg. Outstanding at December 31, 2020 74,767 $ 31.57 Granted 43,306 49.15 Vested (74,767) 31.57 Outstanding at September 30, 2021 43,306 $ 49.15 0.67 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Operating Segments | Segment Information The Company groups its investments into two reportable operating segments: Experiential and Education. The financial information summarized below is presented by reportable operating segment (in thousands): Balance Sheet Data: As of September 30, 2021 Experiential Education Corporate/Unallocated Consolidated Total Assets $ 5,060,248 $ 511,170 $ 149,739 $ 5,721,157 As of December 31, 2020 Experiential Education Corporate/Unallocated Consolidated Total Assets $ 5,133,486 $ 529,755 $ 1,040,944 $ 6,704,185 Operating Data: Three Months Ended September 30, 2021 Experiential Education Corporate/Unallocated Consolidated Rental revenue $ 113,589 $ 9,451 $ — $ 123,040 Other income 8,052 — 39 8,091 Mortgage and other financing income 8,283 233 — 8,516 Total revenue 129,924 9,684 39 139,647 Property operating expense 13,572 16 227 13,815 Other expense 7,851 — — 7,851 Total investment expenses 21,423 16 227 21,666 Net operating income - before unallocated items 108,501 9,668 (188) 117,981 Reconciliation to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): General and administrative expense (11,154) Costs associated with loan refinancing or payoff (4,741) Interest expense, net (36,584) Transaction costs (2,132) Credit loss benefit 14,096 Impairment charges (2,711) Depreciation and amortization (42,612) Equity in loss from joint ventures (418) Gain on sale of real estate 787 Income tax expense (395) Net income 32,117 Preferred dividend requirements (6,033) Net income available to common shareholders of EPR Properties $ 26,084 Operating Data: Three Months Ended September 30, 2020 Experiential Education Corporate/Unallocated Consolidated Rental revenue $ 40,270 $ 15,321 $ — $ 55,591 Other income 14 13 155 182 Mortgage and other financing income 7,761 343 — 8,104 Total revenue 48,045 15,677 155 63,877 Property operating expense 13,011 550 198 13,759 Other expense 2,680 — — 2,680 Total investment expenses 15,691 550 198 16,439 Net operating income - before unallocated items 32,354 15,127 (43) 47,438 Reconciliation to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): General and administrative expense (10,034) Interest expense, net (41,744) Transaction costs (2,776) Credit loss expense (5,707) Impairment charges (11,561) Depreciation and amortization (42,059) Equity in loss from joint ventures (1,044) Income tax expense (18,417) Net loss (85,904) Preferred dividend requirements (6,034) Net loss available to common shareholders of EPR Properties $ (91,938) Operating Data: Nine Months Ended September 30, 2021 Experiential Education Corporate/Unallocated Consolidated Rental revenue $ 313,424 $ 28,113 $ — $ 341,537 Other income 9,442 — 360 9,802 Mortgage and other financing income 24,663 772 — 25,435 Total revenue 347,529 28,885 360 376,774 Property operating expense 42,985 113 708 43,806 Other expense 13,428 — — 13,428 Total investment expenses 56,413 113 708 57,234 Net operating income - before unallocated items 291,116 28,772 (348) 319,540 Reconciliation to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): General and administrative expense (33,866) Costs associated with loan refinancing or payoff (4,982) Interest expense, net (114,090) Transaction costs (3,342) Credit loss benefit 19,677 Impairment charges (2,711) Depreciation and amortization (123,476) Equity in loss from joint ventures (3,000) Gain on sale of real estate 1,499 Income tax expense (1,200) Net income 54,049 Preferred dividend requirements (18,100) Net income available to common shareholders of EPR Properties $ 35,949 Operating Data: Nine Months Ended September 30, 2020 Experiential Education Corporate/Unallocated Consolidated Rental revenue $ 243,134 $ 45,031 $ — $ 288,165 Other income 7,227 13 931 8,171 Mortgage and other financing income 23,913 1,000 — 24,913 Total revenue 274,274 46,044 931 321,249 Property operating expense 39,854 1,719 608 42,181 Other expense 15,012 — — 15,012 Total investment expenses 54,866 1,719 608 57,193 Net operating income - before unallocated items 219,408 44,325 323 264,056 Reconciliation to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): General and administrative expense (31,454) Costs associated with loan refinancing or payoff (820) Interest expense, net (114,837) Transaction costs (4,622) Credit loss expense (10,383) Impairment charges (62,825) Depreciation and amortization (128,319) Equity in loss from joint ventures (3,188) Impairment charges on joint ventures (3,247) Gain on sale of real estate 242 Income tax benefit (16,354) Net loss (111,751) Preferred dividend requirements (18,102) Net loss available to common shareholders of EPR Properties $ (129,853) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Operating Segments | |||||
Number of Reportable Operating Segments | segment | 2 | ||||
Revenue Recognition [Abstract] | |||||
Straight Line Rent | $ 3,700 | ||||
Straight line rent write off | 200 | $ 36,900 | |||
Concentrations of Risk [Abstract] | |||||
Operating Lease, Lease Income | $ 123,040 | $ 55,591 | 341,537 | 288,165 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Deferred Costs | 32,200 | 32,200 | $ 35,600 | ||
Recovery of Direct Costs | 11,200 | 8,900 | |||
Rent Abatements | 9,100 | ||||
Deferred Rent Receivables, Net | 39,200 | 39,200 | |||
Loans and Leases Receivable, Deferred Income | $ 1,700 | $ 1,700 | |||
number of theatres in entertainment districts | segment | 7 | ||||
Mortgage and other participating interest income | $ 0 | 0 | |||
Variable percentage rent | 11,300 | ||||
Rental revenue reduction from straight line | 25,400 | ||||
Collections, Deferred Rent, Cash Basis Tenants | 6,000 | ||||
Collections, Deferred Rent, Accrual Basis Tenants | 53,500 | ||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.75 | ||||
Change in expected credit loss | 19,700 | ||||
Operating Lease, Percentage Revenue | $ 7,200 | 5,500 | |||
London Interbank Offered Rate (LIBOR) | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Number of agreements | 10 | 10 | |||
London Interbank Offered Rate (LIBOR) | Short-term Debt | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Number of agreements | 3 | 3 | |||
TopGolf [Member] | |||||
Concentrations of Risk [Abstract] | |||||
Operating Lease, Lease Income | $ 63,445 | $ 60,330 | |||
Percentage of lease revenue in total revenue | 16.80% | 18.80% | |||
American Multi-Cinema, Inc. [Member] | |||||
Concentrations of Risk [Abstract] | |||||
Operating Lease, Lease Income | $ 71,000 | $ 26,226 | |||
Percentage of lease revenue in total revenue | 18.80% | 8.20% | |||
Restricted Share Units [Member] | Non-Employee Trustees [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Share based compensation expense related to employees and trustees | $ 1,700 | $ 1,600 | |||
Performance Shares [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 3 years | ||||
Share based compensation expense related to employees and trustees | $ 2,900 | 700 | |||
Restricted Stock [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Share based compensation expense related to employees and trustees | $ 6,600 | 8,000 | |||
Restricted Stock [Member] | Minimum [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 3 years | ||||
Restricted Stock [Member] | Maximum [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Share Options [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Stock-option expense | $ 13 | 9 | |||
Revolving Credit Facility [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Deferred Costs | $ 1,700 | 1,700 | $ 4,800 | ||
triple-net lessor costs [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Recovery of Direct Costs | $ 2,800 | 1,400 | |||
straight-line receivable [Member] | |||||
Revenue Recognition [Abstract] | |||||
Straight line rent write off | 20,400 | 25,400 | |||
Ground Lease Straight Line Receivable [Member] | |||||
Revenue Recognition [Abstract] | |||||
Straight line rent write off | $ 3,500 | $ 11,500 | |||
Building [Member] | Minimum [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Property, Plant and Equipment, Useful Life | 30 years | ||||
Building [Member] | Maximum [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Property, Plant and Equipment, Useful Life | 40 years | ||||
Furniture, fixtures & equipment [Member] | Minimum [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Furniture, fixtures & equipment [Member] | Maximum [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Property, Plant and Equipment, Useful Life | 25 years | ||||
Building Improvements [Member] | Minimum [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Property, Plant and Equipment, Useful Life | 10 years | ||||
Building Improvements [Member] | Maximum [Member] | |||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||
Property, Plant and Equipment, Useful Life | 20 years |
Rental Properties (Summary Of C
Rental Properties (Summary Of Carrying Amounts Of Rental Properties) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | $ 5,943,074 | $ 5,913,389 | |
Accumulated depreciation | (1,142,513) | (1,062,087) | |
Real Estate Investment Property, Net | 4,800,561 | 4,851,302 | |
Depreciation expense on rental properties | 119,200 | $ 122,100 | |
Building and improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | 4,557,213 | 4,526,342 | |
Furniture, fixtures & equipment [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | 117,978 | 118,334 | |
Land [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | 1,241,166 | 1,242,663 | |
Leaseholds and Leasehold Improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | $ 26,717 | $ 26,050 |
Investments and Dispositions (D
Investments and Dispositions (Details) $ in Thousands | Oct. 28, 2021USD ($) | Sep. 30, 2021USD ($)properties | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)properties | Sep. 30, 2020USD ($) |
Real Estate Properties [Line Items] | |||||
Payments to Acquire Productive Assets | $ 33,203 | $ 37,128 | |||
Gain on sale of real estate | $ 787 | $ 0 | $ 1,499 | $ 242 | |
St. Petersburg Joint Venture [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of unconsolidated real estate joint ventures | properties | 2 | 2 | |||
Warrens Joint Venture | |||||
Real Estate Properties [Line Items] | |||||
Number of unconsolidated real estate joint ventures | properties | 2 | 2 | |||
Experiential Reportable Operating Segment [Member] | |||||
Real Estate Properties [Line Items] | |||||
Payments to Acquire Property, Plant, and Equipment | $ 107,900 | ||||
Proceeds from Sale of Property, Plant, and Equipment | 30,800 | ||||
Gain on sale of real estate | $ 1,500 | ||||
Experiential Reportable Operating Segment [Member] | Theatre Properties [Member] | |||||
Real Estate Properties [Line Items] | |||||
number of properties sold | 2 | ||||
Experiential Reportable Operating Segment [Member] | Eat & Play Properties [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of properties acquired (in properties) | 1 | ||||
Payments to Acquire Productive Assets | $ 26,700 | ||||
Experiential Reportable Operating Segment [Member] | outparcel | |||||
Real Estate Properties [Line Items] | |||||
number of properties sold | 1 | ||||
Experiential Reportable Operating Segment [Member] | land parcel | |||||
Real Estate Properties [Line Items] | |||||
number of properties sold | 2 | ||||
Experiential Reportable Operating Segment [Member] | Ski Properties [Member] | Subsequent Event [Member] | |||||
Real Estate Properties [Line Items] | |||||
number of properties sold | 2 | ||||
Proceeds from Sale of Property, Plant, and Equipment | $ 48,000 | ||||
Gain on sale of real estate | $ 15,400 |
Investment in Mortgage Notes _2
Investment in Mortgage Notes and Notes Receivable (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 368,684,000 | $ 368,684,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 369,134,000 | 369,134,000 | $ 365,628,000 | ||||
Mortgage Note and Notes Receivable Commitments | 12,800,000 | 12,800,000 | |||||
Proceeds from Sale and Collection of Mortgage Notes Receivable | 8,106,000 | $ 414,000 | |||||
Notes Receivable | 7,300,000 | 7,300,000 | 7,300,000 | ||||
Financing Receivable, Allowance for Credit Loss | 13,181,000 | $ 2,163,000 | 13,181,000 | 2,163,000 | $ 0 | 32,858,000 | |
Provision for Loan, Lease, and Other Losses | (19,677,000) | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||||
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | ||||||
Financing Receivable, Credit Loss, Expense (Reversal) | $ (14,096,000) | $ 5,707,000 | (19,677,000) | $ 10,383,000 | |||
Note, 8.0%, due May 2, 2024 [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Proceeds from Sale and Collection of Mortgage Notes Receivable | $ 6,800,000 | ||||||
Number of Notes Receivable | 1 | 1 | |||||
Provision for Loan, Lease, and Other Losses | $ 10,200,000 | ||||||
Unrecorded Unconditional Purchase Obligation, Change of Amount as Result of Variable Components | $ 8,500,000 | 8,500,000 | |||||
Financing Receivable, Credit Loss, Expense (Reversal) | 15,300,000 | ||||||
Mortgage Receivable [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Mortgage Note and Notes Receivable Commitments | 12,774,000 | 12,774,000 | |||||
Financing Receivable, Allowance for Credit Loss | 2,848,000 | 2,848,000 | 7,000,000 | ||||
Provision for Loan, Lease, and Other Losses | (4,152,000) | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||||
Financing Receivable, Allowance for Credit Loss, Recovery | $ 0 | ||||||
Mortgage Receivable [Member] | Mortgage Note, 9.02%, Prepaid in Full | Private School | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 9.02% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 0 | $ 0 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 | 0 | 5,278,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Proceeds from Sale and Collection of Mortgage Notes Receivable | $ 5,100,000 | ||||||
Prepaymentfee | $ 0 | ||||||
Mortgage Receivable [Member] | Mortgage Note, 7.75%, due June 30, 2025 [Member] | Attraction Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 7.75% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 28,521,000 | $ 28,521,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 27,908,000 | 27,908,000 | 27,045,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 7.85%, due January 3, 2027 [Member] | Fitness & Wellness Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 7.85% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 10,905,000 | $ 10,905,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 11,278,000 | 11,278,000 | 11,225,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 7.55%, due July 31, 2029 [Member] | Fitness & Wellness Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 7.55% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 9,090,000 | $ 9,090,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 9,398,000 | 9,398,000 | 9,355,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 8.23%, December 31, 2029 [Member] | Ski Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 8.21% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 44,605,000 | $ 44,605,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 44,537,000 | 44,537,000 | 40,680,000 | ||||
Mortgage Note and Notes Receivable Commitments | 12,395,000 | $ 12,395,000 | |||||
Mortgage Receivable [Member] | Mortgage Note, 7.85%, due June 30, 2030 [Member] | Fitness & Wellness Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 7.85% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 10,539,000 | $ 10,539,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 10,797,000 | 10,797,000 | 8,630,000 | ||||
Mortgage Note and Notes Receivable Commitments | 379,000 | $ 379,000 | |||||
Mortgage Receivable [Member] | Mortgage Note, 7.01%, due September 30, 2031 [Member] | Experiential Lodging Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 7.01% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 71,223,000 | $ 71,223,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 70,422,000 | 70,422,000 | 67,235,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 11.31%, due June 1, 2033 [Member] | Eat & Play Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 11.31% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 10,915,000 | $ 10,915,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 11,073,000 | 11,073,000 | 11,929,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 11.96%, due December 1, 2034 [Member] | Ski Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 11.96% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 51,050,000 | $ 51,050,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 51,045,000 | 51,045,000 | 51,031,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 10.91%, due December 1, 2034 [Member] | Ski Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 10.91% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 37,562,000 | $ 37,562,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 37,506,000 | 37,506,000 | 37,413,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 11.38%, due December 1, 2034 [Member] | Ski Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 11.38% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 4,550,000 | $ 4,550,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 4,509,000 | 4,509,000 | 4,396,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 8.72%, due January 5, 2036 [Member] | Ski Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 8.72% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 21,000,000 | $ 21,000,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 21,000,000 | 21,000,000 | 21,000,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, due May 31, 2036 [Member] | Eat & Play Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 10.25% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 17,505,000 | $ 17,505,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 17,729,000 | 17,729,000 | 18,289,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 9.75% due August 1, 2036 [Member] | Eat & Play Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 9.75% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 18,068,000 | $ 18,068,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 18,285,000 | 18,285,000 | 18,830,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 7.85% due January 31, 2038 [Member] | Fitness & Wellness Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 7.85% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 10,292,000 | $ 10,292,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 10,568,000 | 10,568,000 | 10,408,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 7.98%, due May 9, 2039 [Member] | early childhood education center [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 7.98% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 4,200,000 | $ 4,200,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 4,321,000 | 4,321,000 | 4,348,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 8.125%, due June 17, 2039 [Member] | Eat & Play Properties [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 8.13% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 14,700,000 | $ 14,700,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 14,759,000 | 14,759,000 | 14,799,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | $ 0 | |||||
Mortgage Receivable [Member] | Mortgage Note, 8.42%, due October 31, 2019 [Member] | early childhood education center [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Interest Rate | 8.42% | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Face Amount of Mortgages | 3,959,000 | $ 3,959,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 3,999,000 | 3,999,000 | 3,737,000 | ||||
Mortgage Note and Notes Receivable Commitments | 0 | 0 | |||||
Unfunded Loan Commitment [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | 84,000 | 84,000 | 138,000 | ||||
Provision for Loan, Lease, and Other Losses | (54,000) | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||||
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | ||||||
Notes Receivable [Member] | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | 10,249,000 | 10,249,000 | 12,854,000 | ||||
Provision for Loan, Lease, and Other Losses | (2,605,000) | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||||
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | ||||||
Note Receivable Unfunded Loan Commitment | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | $ 0 | 0 | $ 12,866,000 | ||||
Provision for Loan, Lease, and Other Losses | (12,866,000) | ||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||||
Financing Receivable, Allowance for Credit Loss, Recovery | $ 0 |
Accounts Receivable, Net (Sched
Accounts Receivable, Net (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Straight-Line Rent Receivable | $ 38,037 | $ 34,568 |
Total | 80,491 | 116,193 |
Deferred Rent Receivables, Net | 39,200 | |
Collections, Deferred Rent, Cash Basis Tenants | 6,000 | |
Collections, Deferred Rent, Accrual Basis Tenants | 53,500 | |
Tenants [Member] | ||
Total | 41,531 | 81,120 |
Non-Tenants [Member] | ||
Carrying amounts of accounts receivable | $ 923 | $ 505 |
Capital Markets (Details)
Capital Markets (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.75 | ||
Series C Preferred Shares [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends Per Share, Declared | 0.359375 | $ 1.078125 | |
Preferred Stock, Dividend Rate, Percentage | 5.75% | 5.75% | |
Series E Preferred Shares [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividends Per Share, Declared | $ 0.5625 | $ 1.6875 | |
Preferred Stock, Dividend Rate, Percentage | 9.00% | 9.00% | |
Series G Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 5.75% |
Capital Markets Long Term Deb_2
Capital Markets Long Term Debt (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Oct. 27, 2021USD ($) | Oct. 14, 2021USD ($) | Oct. 06, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||||||
Costs associated with loan refinancing or payoff | $ 4,741 | $ 0 | $ 4,982 | $ 820 | ||||
Deferred Costs | $ 32,200 | 32,200 | $ 35,600 | |||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 3,200 | |||||||
Unsecured Revolving Variable Rate Credit Facility, Variable Rate, Due February 27, 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Rate, Facility Fee | 0.25% | 0.25% | ||||||
Debt Instrument, Periodic Payment | $ 590,000 | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | $ 1,000,000 | ||||||
Term loan payable, due February 27, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.35% | 1.35% | ||||||
Long-term Debt, Percentage Rate, LIBOR Floor | 0.00% | 0.00% | ||||||
Costs associated with loan refinancing or payoff | $ 1,500 | |||||||
Debt Instrument, Periodic Payment | $ 400,000 | |||||||
Private Placement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Periodic Payment | $ 23,800 | |||||||
Unsecured Credit Facility, Variable Rate, Due October 6, 2025 | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000 | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | |||||||
Long Term Debt, Number of extensions | 2 | |||||||
Long-Term Debt, Extensions | 6 months | |||||||
Long-Term Debt, Total Extension Period | 12 months | |||||||
Senior Unsecured Note Payable, 3.60%, Due November 15, 2021 | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.60% | |||||||
Unsecured Debt | $ 400,000 | |||||||
Unsecured Debt, Public Offering, Percent of Face Value | 99.174% | |||||||
Senior Unsecured Note Payable, 5.25%, Due July 15, 2023 | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.25% | |||||||
Unsecured Debt | $ 275,000 | |||||||
Unsecured Debt [Member] | Unsecured Revolving Variable Rate Credit Facility, Variable Rate, Due February 27, 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.20% | 1.20% | ||||||
Unsecured Debt [Member] | senior unsecured private placement notes payable, due August 22, 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.35% | 4.35% | ||||||
Unsecured Debt [Member] | senior unsecured private placement notes payable, due August 22, 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.56% | 4.56% | ||||||
Long-term Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Covenants, Debt to Adjusted Total Assets | 60.00% | 60.00% | ||||||
Debt Covenants, Secured Debt to Adjusted Total Assets | 40.00% | 40.00% | ||||||
Debt Covenants, Unencumbered Assets | 150.00% | 150.00% | ||||||
Debt Covenants, Debt Service Coverage Ratio | 1.5 | 1.5 |
Unconsolidated Real Estate Jo_2
Unconsolidated Real Estate Joint Ventures (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)propertiesyears | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)propertiesyears | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity in loss from joint ventures | $ (418,000) | $ (1,044,000) | $ (3,000,000) | $ (3,188,000) | |
Proceeds from Equity Method Investment, Distribution | 90,000 | 0 | |||
Impairment charges on joint ventures | 0 | $ 0 | 0 | 3,247,000 | |
St. Petersburg Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in loss from joint ventures | 2,800,000 | 2,500,000 | |||
Proceeds from Equity Method Investment, Distribution | 0 | ||||
Real Estate Investments, Unconsolidated Real Estate and Other Joint Ventures | $ 27,200,000 | $ 27,200,000 | $ 27,400,000 | ||
Equity Method Investment, Ownership Percentage | 65.00% | 65.00% | |||
Equity Method Investment, Partner's Ownership Percentage | 35.00% | 35.00% | |||
Number of unconsolidated real estate joint ventures | properties | 2 | 2 | |||
Long Term Funding Commitment For Project Development | $ 34,800,000 | $ 34,800,000 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.00% | 6.00% | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 3.75% | 3.75% | |||
Maximum Availability Joint Venture Mortgage Loan | $ 85,000,000 | $ 85,000,000 | |||
Long Term Funding Commitment For Project Development, Remaining | $ 200,000 | $ 200,000 | |||
Number of Extension Options | 2 | 2 | |||
Years in Extension | years | 1 | 1 | |||
Theatre Project China Member | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in loss from joint ventures | $ 7,000 | 649,000 | |||
Proceeds from Equity Method Investment, Distribution | 90,000 | 0 | |||
Real Estate Investments, Unconsolidated Real Estate and Other Joint Ventures | $ 700,000 | $ 700,000 | $ 800,000 | ||
Number of unconsolidated real estate joint ventures | 3 | 3 | |||
Impairment charges on joint ventures | 3,200,000 | ||||
Warrens Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in loss from joint ventures | $ 200,000 | ||||
Proceeds from Equity Method Investment, Distribution | $ 0 | ||||
Real Estate Investments, Unconsolidated Real Estate and Other Joint Ventures | $ 10,800,000 | $ 10,800,000 | |||
Equity Method Investment, Ownership Percentage | 95.00% | 95.00% | |||
Equity Method Investment, Partner's Ownership Percentage | 5.00% | 5.00% | |||
Number of unconsolidated real estate joint ventures | properties | 2 | 2 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.00% | 4.00% | |||
Maximum Availability Joint Venture Mortgage Loan | $ 15,000,000 | $ 15,000,000 | |||
Construction Availability Joint Venture Mortgage Loan | 9,600,000 | 9,600,000 | |||
Real Estate Investments, Joint Ventures | $ 11,000,000 | $ 11,000,000 | |||
Interest Rate Swap [Member] | St. Petersburg Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Derivative, Fixed Interest Rate | 3.00% | 3.00% |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021USD ($)years$ / $ | Sep. 30, 2021CAD ($)years$ / $ | Dec. 31, 2020USD ($) | |
Derivative Liability, Fair Value, Gross Liability | $ 4,400,000 | $ 14,000,000 | |
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 0 | |
Number of entered into interest rate swap agreements (in interest rate swaps) | 1 | 1 | |
Number of Interest rate swap agreements terminated | years | 4 | 4 | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 3,200,000 | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 4,500,000 | ||
Net Investment Hedging [Member] | |||
Derivative, Notional Amount | 200 | ||
Cash Flow Hedging [Member] | |||
Estimated amount to be reclassified from accumulated other comprehensive income to other expense in the next twelve months | 100,000 | ||
Interest Rate Risk [Member] | |||
Estimated amount to be reclassified from accumulated other comprehensive income to other expense in the next twelve months | $ 300,000 | ||
Currency Swap [Member] | |||
Number of Canadian properties exposed to foreign currency exchange risk (in properties) | 4 | ||
Cross Currency Swaps 2022 [Member] | |||
Net exchange rate, CAD to US dollar | $ / $ | 1.31 | 1.31 | |
Cross Currency Swap 2023 [Member] | Net Investment Hedging [Member] | |||
Derivative, Notional Amount | $ 100 | ||
Net exchange rate, CAD to US dollar | 1.32 | 1.32 | |
Foreign currency exposure | $ 4,500,000 | ||
interest rate swap 1.3925 percent [Member] | Interest Rate Swap [Member] | |||
Derivative fixed interest rate | 1.3925% | 1.3925% | |
Derivative, Notional Amount | $ 25,000,000 | ||
Terminated swaps | Interest Rate Swap [Member] | |||
Derivative, Notional Amount | 400,000,000 | ||
United States of America, Dollars | Cross Currency Swaps 2022 [Member] | |||
Derivative, Notional Amount | 76,600,000 | ||
Canada, Dollars | Cross Currency Swaps 2022 [Member] | |||
Derivative, Notional Amount | $ 100 | ||
Monthly CAD Denominated Cash Flows Properties Under Hedges of Foreign Exchange Risk | $ 7,200,000 |
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 | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 97 | $ 141 | $ 270 | $ 475 | |||
Derivative, Gain (Loss) on Derivative, Net | 1,261 | (3,947) | (2,924) | (7,966) | |||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | (5,019) | (2,024) | (9,279) | (3,648) | |||
Interest Expense | 36,584 | 41,744 | 114,090 | 114,837 | |||
Other Income | 8,091 | 182 | 9,802 | 8,171 | |||
Interest Rate Swap [Member] | |||||||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | [1] | (4,962) | (2,037) | (9,074) | (4,103) | ||
Cross Currency Swaps [Member] | |||||||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | [2] | (57) | 13 | (205) | 455 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 143 | (243) | (71) | 424 | |||
Cross Currency Swap 2023 [Member] | |||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | [2] | 97 | [3] | 141 | [3] | 270 | 475 |
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), Reclassification, before Tax | 4,456 | (3,827) | 356 | 3,160 | |||
Interest Expense [Member] | Interest Rate Swap [Member] | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ (3,338) | $ 123 | $ (3,209) | $ (11,550) | |||
[1] | (1) Included in "Interest expense, net" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020. | ||||||
[2] | (2) Included in "Other income" in the accompanying consolidated statements of income (loss) and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020. | ||||||
[3] | (3) Amounts represent derivative gains excluded from the effectiveness testing. |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured At Fair Value On A Recurring Basis) (Details) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Sep. 30, 2021USD ($)years | Dec. 31, 2020USD ($)years | ||
Long-term Debt | $ 2,684,063 | $ 3,694,443 | ||
Derivative Liability, Fair Value, Gross Liability | (4,400) | (14,000) | ||
Financing Receivable, after Allowance for Credit Loss, Current | 369,134 | 365,628 | ||
Real Estate Investment Property, Net | 4,800,561 | 4,851,302 | ||
Operating Lease, Right-of-Use Asset | 175,987 | 163,766 | ||
Investment in joint ventures | 38,729 | 28,208 | ||
Other assets | $ 64,639 | $ 70,223 | ||
Number of impaired properties | 2 | |||
Right-of-Use Assets, Operating Lease [Member] | ||||
Number of impaired properties | years | 2 | |||
Fair Value, Recurring [Member] | Cross Currency Swaps [Member] | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | $ (3,781) | $ (4,271) | |
Fair Value, Recurring [Member] | Cross Currency Swaps [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | (3,781) | (4,271) | |
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | (610) | (9,723) | |
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | (610) | (9,723) | |
Fair Value, Nonrecurring [Member] | ||||
Real Estate Investment Property, Net | 6,956 | 39,544 | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Real Estate Investment Property, Net | $ 6,956 | $ 29,684 | ||
Number of impaired properties | years | 2 | 6 | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Real Estate Investment Property, Net | $ 0 | $ 9,860 | ||
Operating Lease, Right-of-Use Asset | 12,953 | |||
Investment in joint ventures | 771 | |||
Other assets | $ 0 | |||
Number of impaired properties | years | 3 | |||
Variable Rate Converted to Fixed Rate [Member] | ||||
Long-term Debt | 25,000 | $ 425,000 | ||
Fixed Rate Mortgage Notes Receivable Member | ||||
Financing Receivable, after Allowance for Credit Loss, Current | $ 369,100 | $ 365,600 | ||
Mortgage Receivable Weighted Average Interest Rate | 9.02% | 9.03% | ||
Receivable Interest Rate Stated Percentage Rate Range Minimum | 7.01% | 7.01% | ||
Receivable Interest Rate Stated Percentage Rate Range Maximum | 11.96% | 11.78% | ||
Notes Receivable, Fair Value Disclosure | $ 406,000 | $ 394,000 | ||
Weighted Average Market Rate Used As Discount Factor To Determine Fair Value Of Notes | 7.80% | 8.11% | ||
Fixed Rate Mortgage Notes Receivable Member | Minimum [Member] | ||||
market rate used as discount factor to determine fair value of notes | 7.25% | 7.50% | ||
Fixed Rate Mortgage Notes Receivable Member | Maximum [Member] | ||||
market rate used as discount factor to determine fair value of notes | 9.00% | 10.00% | ||
Variable Rate Debt Member | ||||
Long-term Debt | $ 25,000 | $ 1,000,000 | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 0.13% | 2.23% | ||
Fixed Rate Debt Member | ||||
Long-term Debt | $ 2,690,000 | $ 2,720,000 | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.54% | 4.70% | ||
Long-term Debt, Fair Value | $ 2,860,000 | $ 2,690,000 | ||
Weighted Average Market Rate Used As Discount Factor To Determine Fair Value Of Debt | 4.70% | 3.04% | ||
Fixed Rate Debt Member | Minimum [Member] | ||||
market rate used as discount factor to determine fair value of debt | 4.09% | 1.91% | ||
Fixed Rate Debt Member | Maximum [Member] | ||||
market rate used as discount factor to determine fair value of debt | 5.81% | 4.56% | ||
[1] | Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheets. |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic EPS: | ||||
Income from continuing operations | $ 32,117 | $ (85,904) | $ 54,049 | $ (111,751) |
Less: preferred dividend requirements | (6,033) | (6,034) | (18,100) | (18,102) |
Net income (loss) available to common shareholders of EPR Properties | $ 26,084 | $ (91,938) | $ 35,949 | $ (129,853) |
Net income available to common shareholders (in dollars per share) | $ 0.35 | $ (1.23) | $ 0.48 | $ (1.70) |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 26,084 | $ (91,938) | $ 35,949 | $ (129,853) |
Weighted average number of shares outstanding, basic | 74,804 | 74,613 | 74,738 | 76,456 |
Diluted EPS: | ||||
Share options (in shares) | 107 | 0 | 81 | 0 |
Weighted average number of shares outstanding, diluted | 74,911 | 74,613 | 74,819 | 76,456 |
Net income available to common shareholders (in dollars per share) | $ 0.35 | $ (1.23) | $ 0.48 | $ (1.70) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Series C Preferred Shares [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 2,200 | 2,200 | 2,200 | 2,200 |
Preferred Stock, Dividend Rate, Percentage | 5.75% | 5.75% | ||
Series E Preferred Shares [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 1,700 | 1,700 | 1,700 | 1,700 |
Preferred Stock, Dividend Rate, Percentage | 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 | 89 | 117 | 117 | |
Performance Shares [Member] | January 1, 2020 Award Date | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 56 | 56 | 56 | 56 |
Minimum [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | $ 44.44 | $ 44.62 | $ 44.44 | $ 44.62 |
Maximum [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 76.63 | $ 76.63 | $ 76.63 | $ 76.63 |
Equity Incentive Plans (Summary
Equity Incentive Plans (Summary Of Share Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | May 28, 2021 | Dec. 31, 2020 | May 12, 2016 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 51.42 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 10 months 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 10 months 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 103,724 | ||||
Maximum term of options granted (in years) | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Number of Shares, Outstanding at Beginning of Period | 116,690 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,065 | ||||
Number of Shares, Granted | 1,838 | ||||
Number of Shares, Outstanding at End of Period | 109,657 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 47.77 | ||||
Average Exercise Price, Outstanding at Beginning of Period | 56.69 | $ 56.36 | |||
Average Exercise Price, Outstanding at End of Period | 56.69 | 56.36 | |||
Weighted average fair value of options granted | $ 20.34 | $ 3.73 | |||
Intrinsic value of stock options exercised | $ 7 | $ 22 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 44.44 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 56.48 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 57 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 4,806 | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Price Per Share | $ 47.77 | ||||
Option Price Per Share, Outstanding at Beginning of Period | 44.44 | 44.62 | |||
Option Price Per Share, Outstanding at End of Period | 44.44 | 44.62 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Price Per Share | 44.44 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Price Per Share | 45.20 | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Price Per Share | 47.77 | ||||
Option Price Per Share, Outstanding at Beginning of Period | 76.63 | 76.63 | |||
Option Price Per Share, Outstanding at End of Period | 76.63 | $ 76.63 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Price Per Share | 44.44 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Price Per Share | $ 61.79 | ||||
2016 Equity Incentive Plan [Member] | |||||
Common shares, options to purchase common shares and restricted share units, expected to granted (in shares) | 3,950,000 | 1,950,000 | |||
Number of shares available for grant (in shares) | 2,362,709 | ||||
Forty Four Point Forty Four To Forty Nine Point Nine Nine [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 1 month 6 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 10 months 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 20,457 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Number of Shares, Outstanding at End of Period | 22,295 | ||||
Forty Four Point Forty Four To Forty Nine Point Nine Nine [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Option Price Per Share, Outstanding at Beginning of Period | $ 44.44 | ||||
Option Price Per Share, Outstanding at End of Period | 44.44 | ||||
Forty Four Point Forty Four To Forty Nine Point Nine Nine [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Option Price Per Share, Outstanding at Beginning of Period | 49.99 | ||||
Option Price Per Share, Outstanding at End of Period | $ 49.99 | ||||
Fifty To Fifty Nine Point Nine Nine Member | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 9 months 18 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 7 months 6 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 30,050 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Number of Shares, Outstanding at End of Period | 31,008 | ||||
Fifty To Fifty Nine Point Nine Nine Member | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Option Price Per Share, Outstanding at Beginning of Period | $ 50 | ||||
Option Price Per Share, Outstanding at End of Period | 50 | ||||
Fifty To Fifty Nine Point Nine Nine Member | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Option Price Per Share, Outstanding at Beginning of Period | 59.99 | ||||
Option Price Per Share, Outstanding at End of Period | $ 59.99 | ||||
Sixty To Sixty Five Point Five Zero Member | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 9 months 18 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 8 months 12 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 50,031 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Number of Shares, Outstanding at End of Period | 52,198 | ||||
Sixty To Sixty Five Point Five Zero Member | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Option Price Per Share, Outstanding at Beginning of Period | $ 60 | ||||
Option Price Per Share, Outstanding at End of Period | 60 | ||||
Sixty To Sixty Five Point Five Zero Member | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Option Price Per Share, Outstanding at Beginning of Period | 69.99 | ||||
Option Price Per Share, Outstanding at End of Period | $ 69.99 | ||||
Seventy To Seventy Six Point Six Three [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 3 months 18 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 3,186 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Number of Shares, Outstanding at End of Period | 4,156 | ||||
Seventy To Seventy Six Point Six Three [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Option Price Per Share, Outstanding at Beginning of Period | $ 70 | ||||
Option Price Per Share, Outstanding at End of Period | 70 | ||||
Seventy To Seventy Six Point Six Three [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Option Price Per Share, Outstanding at Beginning of Period | 76.63 | ||||
Option Price Per Share, Outstanding at End of Period | $ 76.63 |
Equity Incentive Plans (Summa_2
Equity Incentive Plans (Summary Of Outstanding Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 103,724 | |
Options outstanding (in shares) | 109,657 | 116,690 |
Weighted avg. life remaining (in years) | 3 years 10 months 24 days | |
Weighted avg. exercise price | $ 56.69 | $ 56.36 |
Aggregate intrinsic value | $ 66 | |
Minimum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 44.44 | 44.62 |
Maximum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 76.63 | $ 76.63 |
Forty Four Point Forty Four To Forty Nine Point Nine Nine [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 20,457 | |
Options outstanding (in shares) | 22,295 | |
Weighted avg. life remaining (in years) | 3 years 1 month 6 days | |
Forty Four Point Forty Four To Forty Nine Point Nine Nine [Member] | Minimum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 44.44 | |
Forty Four Point Forty Four To Forty Nine Point Nine Nine [Member] | Maximum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 49.99 | |
Fifty To Fifty Nine Point Nine Nine Member | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 30,050 | |
Options outstanding (in shares) | 31,008 | |
Weighted avg. life remaining (in years) | 2 years 9 months 18 days | |
Fifty To Fifty Nine Point Nine Nine Member | Minimum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 50 | |
Fifty To Fifty Nine Point Nine Nine Member | Maximum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 59.99 | |
Sixty To Sixty Five Point Five Zero Member | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 50,031 | |
Options outstanding (in shares) | 52,198 | |
Weighted avg. life remaining (in years) | 4 years 9 months 18 days | |
Sixty To Sixty Five Point Five Zero Member | Minimum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 60 | |
Sixty To Sixty Five Point Five Zero Member | Maximum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 69.99 | |
Seventy To Seventy Six Point Six Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 3,186 | |
Options outstanding (in shares) | 4,156 | |
Weighted avg. life remaining (in years) | 6 years 3 months 18 days | |
Seventy To Seventy Six Point Six Three [Member] | Minimum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 70 | |
Seventy To Seventy Six Point Six Three [Member] | Maximum [Member] | ||
Option Price Per Share, Outstanding at Beginning of Period | $ 76.63 |
Equity Incentive Plans (Summa_3
Equity Incentive Plans (Summary Of Exercisable Options) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Options outstanding (in shares) | 103,724 |
Weighted avg. life remaining (in years) | 2 years 10 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 56.48 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 57 |
Forty Four Point Forty Four To Forty Nine Point Nine Nine [Member] | |
Options outstanding (in shares) | 20,457 |
Weighted avg. life remaining (in years) | 10 months 24 days |
Fifty To Fifty Nine Point Nine Nine Member | |
Options outstanding (in shares) | 30,050 |
Weighted avg. life remaining (in years) | 2 years 7 months 6 days |
Sixty To Sixty Five Point Five Zero Member | |
Options outstanding (in shares) | 50,031 |
Weighted avg. life remaining (in years) | 3 years 8 months 12 days |
Seventy To Seventy Six Point Six Three [Member] | |
Options outstanding (in shares) | 3,186 |
Weighted avg. life remaining (in years) | 6 years |
Equity Incentive Plans (Summa_4
Equity Incentive Plans (Summary Of Nonvested Share Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | May 28, 2021 | May 12, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Number of Shares, Outstanding at December 31, 2019 | 445,402 | |||
Number of Shares, Vested | (201,380) | |||
Number of Shares, Granted | 246,562 | |||
Number of Shares, Outstanding at June 30, 2020 | 480,559 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 59.75 | |||
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2019 | 68.47 | |||
Weighted Average Grant Date Fair Value, Granted | 44.44 | |||
Weighted Average Grant Date Fair Value, Vested | 67.87 | |||
Weighted Average Grant Date Fair Value, Outstanding at June 30, 2020 | $ 56.58 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (10,025) | |||
Weighted Average Life Remaining, Outstanding at June 30, 2020 (in years) | 1 year 1 month 6 days | |||
Fair value of non-vested shares | $ 6,600 | $ 16,000 | ||
Unamortized share-based compensation expense | $ 12,800 | |||
2016 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Common shares, options to purchase common shares and restricted share units, expected to granted (in shares) | 3,950,000 | 1,950,000 | ||
Performance Shares [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, 2019 | 56,338 | |||
Number of Shares, Granted | 102,438 | |||
Number of Shares, Outstanding at June 30, 2020 | 158,776 | |||
Unamortized share-based compensation expense | $ 7,800 | |||
Share-based Compensation, Performance Measure Percent, Peer TSR | 50.00% | |||
Share-based Compensation, Performance Measure Percent, MSCI US REIT Index TSR | 25.00% | |||
Share-based Compensation, Performance Measure Percent, Growth in AFFO per share | 25.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.20% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 69.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | |||
Dividend, Share-based Payment Arrangement | $ 65 | 29 | ||
Performance Shares [Member] | Market Condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Share Based Compensation Arrangement, Equity Instrument, Other Than Options, Market Condition, Grant Date Fair Value | $ 6,600 | $ 3,000 | ||
Performance Shares [Member] | Performance Condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | |||
Share-based Compensation Arrangement, Equity Instruments Other Than Options, Performance Condition, Nonvested, Grant Date Fair Value | $ 2,300 |
Equity Incentive Plans (Summa_5
Equity Incentive Plans (Summary Of Restricted Share Unit Activity) (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)$ / 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, 2019 | shares | 445,402 |
Number of Shares, Granted | shares | 246,562 |
Number of Shares, Vested | shares | (201,380) |
Number of Shares, Outstanding at June 30, 2020 | shares | 480,559 |
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2019 | $ / shares | $ 68.47 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 44.44 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 67.87 |
Weighted Average Life Remaining, Outstanding at June 30, 2020 (in years) | 1 year 1 month 6 days |
Weighted Average Grant Date Fair Value, Outstanding at June 30, 2020 | $ / shares | $ 56.58 |
Unamortized share-based compensation expense | $ | $ 12.8 |
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, 2019 | shares | 74,767 |
Number of Shares, Granted | shares | 43,306 |
Number of Shares, Vested | shares | (74,767) |
Number of Shares, Outstanding at June 30, 2020 | shares | 43,306 |
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2019 | $ / shares | $ 31.57 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 49.15 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 31.57 |
Weighted Average Life Remaining, Outstanding at June 30, 2020 (in years) | 8 months 1 day |
Weighted Average Grant Date Fair Value, Outstanding at June 30, 2020 | $ / shares | $ 49.15 |
Unamortized share-based compensation expense | $ | $ 1.4 |
Operating Leases (Details)
Operating Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020 | |||
Operating Leases [Abstract] | |||||||
Lease, Cost | The following table summarizes rental revenue, including sublease arrangements and lease costs, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Classification 2021 2020 2021 2020 Operating leases (1) Rental revenue $ 117,408 $ 54,785 $ 325,429 $ 283,891 Sublease income - operating ground leases (2) Rental revenue $ 5,632 $ 806 $ 16,108 $ 4,274 Lease costs Operating ground lease cost Property operating expense $ 5,827 $ 6,015 $ 17,051 $ 18,515 Operating office lease cost General and administrative expense $ 226 $ 226 $ 678 $ 678 Operating lease right-of-use asset impairment charges (3) Impairment charges $ — $ — $ — $ 15,009 | ||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Number of Properties Subject to Ground Leases | 54 | 54 | 53 | ||||
Straight line rent write off | $ 200 | $ 36,900 | |||||
Operating Lease, Lease Income | $ 123,040 | $ 55,591 | 341,537 | 288,165 | |||
Property operating expense | 13,815 | 13,759 | 43,806 | 42,181 | |||
General and Administrative Expense | 11,154 | 10,034 | 33,866 | 31,454 | |||
Asset Impairment Charges | 2,711 | 11,561 | 2,711 | 62,825 | |||
Property Subject to Operating Lease | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Operating Lease, Lease Income | $ 117,408 | 54,785 | [1] | $ 325,429 | 283,891 | [1] | |
vacant | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Number of Properties Subject to Ground Leases | 1 | 1 | |||||
Experiential Reportable Operating Segment [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Operating Lease, Lease Income | $ 113,589 | 40,270 | $ 313,424 | 243,134 | |||
Property operating expense | 13,572 | 13,011 | 42,985 | 39,854 | |||
Right-of-Use Assets, Operating Lease [Member] | Experiential Reportable Operating Segment [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Asset Impairment Charges | 0 | 0 | [2] | 0 | 15,009 | [2] | |
Ground Lease Arrangement [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Sublease Income | 5,632 | 806 | [3] | 16,108 | 4,274 | [3] | |
Property operating expense | 5,827 | 6,015 | 17,051 | 18,515 | |||
Office Lease [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
General and Administrative Expense | $ 226 | 226 | $ 678 | 678 | |||
straight-line receivable [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Straight line rent write off | 20,400 | 25,400 | |||||
Ground Lease Straight Line Receivable [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Straight line rent write off | 3,500 | 11,500 | |||||
Tenant Receivable [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Allowance for Loan and Lease Losses, Write-offs | 22,800 | 23,000 | |||||
Ground Lease Receivable [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Allowance for Loan and Lease Losses, Write-offs | $ 1,400 | $ 1,400 | |||||
[1] | (1) During the three and nine months ended September 30, 2020, the Company wrote-off straight-line rent receivables of $20.4 million and $25.4 million, respectively, to straight-line rental revenue classified in "Rental revenue" in the accompanying consolidated statements of income (loss) and comprehensive income (loss). Additionally, during the three and nine months ended September 30, 2020, the Company wrote-off lease receivables from tenants totaling $22.8 million and $23.0 million, respectively, to minimum rent and percentage rent classified in rental revenue in the accompanying consolidated statements of income (loss) and comprehensive income (loss) related to tenants being recognized on a cash basis. | ||||||
[2] | (3) During the nine months ended September 30, 2020, the Company recognized impairment charges of $15.0 million related to the operating lease right-of-use assets at two of its properties. | ||||||
[3] | (2) During the three and nine months ended September 30, 2020, the Company wrote-off sub-lessor ground lease straight-line rent receivables totaling $3.5 million and $11.5 million, respectively, to straight-line rental revenue classified in "Rental revenue" in the accompanying consolidated statements of income (loss) and comprehensive income (loss). Additionally, during both the three and nine months ended September 30, 2020, the Company wrote-off sub-lessor ground lease receivables from tenants totaling $1.4 million, to minimum rent classified in rental revenue in the accompanying consolidated statements of income (loss) and comprehensive income (loss) related to tenants being recognized on a cash basis. (3) During the nine months ended September 30, 2020, the Company recognized impairment charges of $15.0 million related to the operating lease right-of-use assets at two of its properties. |
Segment Information Balance She
Segment Information Balance Sheet Data (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Operating Segments | segment | 2 | |
Total Assets | $ 5,721,157 | $ 6,704,185 |
Experiential Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 5,060,248 | 5,133,486 |
Education Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 511,170 | 529,755 |
Corporate / Unallocated | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 149,739 | $ 1,040,944 |
Segment Information Operating D
Segment Information Operating Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Other income | $ 8,091 | $ 182 | $ 9,802 | $ 8,171 |
Interest and Fee Income, Loans, Commercial and Residential, Real Estate | 8,516 | 8,104 | 25,435 | 24,913 |
Revenues | 139,647 | 63,877 | 376,774 | 321,249 |
Property operating expense | 13,815 | 13,759 | 43,806 | 42,181 |
Other expense | 7,851 | 2,680 | 13,428 | 15,012 |
Total investment expenses | 21,666 | 16,439 | 57,234 | 57,193 |
Net Operating Income - Before Unallocated Items | 117,981 | 47,438 | 319,540 | 264,056 |
Reconciliation to Consolidated Statements of Income: | ||||
General and administrative expense | (11,154) | (10,034) | (33,866) | (31,454) |
Write off of Deferred Debt Issuance Cost | (4,741) | 0 | (4,982) | (820) |
Interest expense, net | (36,584) | (41,744) | (114,090) | (114,837) |
Transaction costs | (2,132) | (2,776) | (3,342) | (4,622) |
Financing Receivable, Credit Loss, Expense (Reversal) | 14,096 | (5,707) | 19,677 | (10,383) |
Asset Impairment Charges | (2,711) | (11,561) | (2,711) | (62,825) |
Depreciation and amortization | (42,612) | (42,059) | (123,476) | (128,319) |
Equity in loss from joint ventures | (418) | (1,044) | (3,000) | (3,188) |
Impairment charges on joint ventures | 0 | 0 | 0 | (3,247) |
Gain on sale of real estate | 787 | 0 | 1,499 | 242 |
Income tax benefit (expense) | (395) | (18,417) | (1,200) | (16,354) |
Net income attributable to EPR Properties | 32,117 | (85,904) | 54,049 | (111,751) |
Preferred dividend requirements | (6,033) | (6,034) | (18,100) | (18,102) |
Net Income (Loss) Available to Common Stockholders, Basic | 26,084 | (91,938) | 35,949 | (129,853) |
Operating Lease, Lease Income | 123,040 | 55,591 | 341,537 | 288,165 |
Experiential Reportable Operating Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other income | 8,052 | 14 | 9,442 | 7,227 |
Interest and Fee Income, Loans, Commercial and Residential, Real Estate | 8,283 | 7,761 | 24,663 | 23,913 |
Revenues | 129,924 | 48,045 | 347,529 | 274,274 |
Property operating expense | 13,572 | 13,011 | 42,985 | 39,854 |
Other expense | 7,851 | 2,680 | 13,428 | 15,012 |
Total investment expenses | 21,423 | 15,691 | 56,413 | 54,866 |
Net Operating Income - Before Unallocated Items | 108,501 | 32,354 | 291,116 | 219,408 |
Reconciliation to Consolidated Statements of Income: | ||||
Gain on sale of real estate | 1,500 | |||
Operating Lease, Lease Income | 113,589 | 40,270 | 313,424 | 243,134 |
Education Reportable Operating Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other income | 0 | 13 | 0 | 13 |
Interest and Fee Income, Loans, Commercial and Residential, Real Estate | 233 | 343 | 772 | 1,000 |
Revenues | 9,684 | 15,677 | 28,885 | 46,044 |
Property operating expense | 16 | 550 | 113 | 1,719 |
Other expense | 0 | 0 | 0 | 0 |
Total investment expenses | 16 | 550 | 113 | 1,719 |
Net Operating Income - Before Unallocated Items | 9,668 | 15,127 | 28,772 | 44,325 |
Reconciliation to Consolidated Statements of Income: | ||||
Operating Lease, Lease Income | 9,451 | 15,321 | 28,113 | 45,031 |
Corporate / Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Other income | 39 | 155 | 360 | 931 |
Interest and Fee Income, Loans, Commercial and Residential, Real Estate | 0 | 0 | 0 | 0 |
Revenues | 39 | 155 | 360 | 931 |
Property operating expense | 227 | 198 | 708 | 608 |
Other expense | 0 | 0 | 0 | 0 |
Total investment expenses | 227 | 198 | 708 | 608 |
Net Operating Income - Before Unallocated Items | (188) | (43) | (348) | 323 |
Reconciliation to Consolidated Statements of Income: | ||||
Operating Lease, Lease Income | $ 0 | $ 0 | $ 0 | $ 0 |
Other Commitments And Conting_2
Other Commitments And Contingencies (Details) $ in Millions | Sep. 30, 2021USD ($)mortgagenotes |
Number Of Mortgage Notes Receivable | mortgagenotes | 2 |
Mortgage Note and Notes Receivable Commitments | $ 12.8 |
Number of Surety Bonds | 4 |
Surety bonds | $ 33.3 |
Experiential Reportable Operating Segment [Member] | |
Development projects in process (in projects) | 15 |
Other Commitment | $ 66.9 |
Uncategorized Items - epr-20210
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 531,440,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 1,028,010,000 |