EXHIBIT 99
ENTERTAINMENT PROPERTIES REPORTS RECORD FIRST QUARTER RESULTS
Kansas City, MO, May 1, 2006 -- Entertainment Properties Trust (NYSE:EPR), today
announced operating results for the first quarter ended March 31, 2006. The
Company reported record quarterly revenues, net income and funds from operations
(FFO).
Total revenue increased 21% to $45.9 million for the first quarter compared to
$37.9 million for the same quarter in 2005. Net income available to common
shareholders for the first quarter increased 20% to $15.8 million compared to
$13.2 million in the same quarter last year. Net income on a diluted per common
share basis increased 17% to $0.61 per share from $0.52 per share in the same
quarter last year.
Funds from operations (FFO) increased 17% to $23.1 million from $19.7 million
for the same quarter last year. FFO per diluted common share increased 16% to
$0.89 per share from $0.77 per share for the same quarter last year.
CAPITAL MARKETS
During the first quarter of 2006, the Company obtained two non-recourse mortgage
loans aggregating approximately $44 million in proceeds. Each of these loans is
secured by an individual theatre property. The loans bear interest at 5.84% and
mature in 2016. On February 2, 2006, the Company completed an offering of one
million common shares at $41.25 per share. Subsequently, the underwriter
exercised its over-allotment option to purchase an additional 150,000 shares,
resulting in total proceeds to the Company, net of expenses, of approximately
$46 million.
On January 31, 2006, the Company amended and restated its secured revolving
variable rate credit facility to increase the size of the facility to $200
million from $150 million and reduce the interest rate charged on the facility
from rates ranging from LIBOR plus 175 to 250 basis points to LIBOR plus 130 to
175 basis points. The facility was also converted from a secured to an unsecured
facility. The unsecured revolving variable rate credit facility has a three year
term expiring in 2009 with a one year extension available at the Company's
option. As a result of this amendment and restatement, the Company expensed
certain unamortized financing costs, totaling approximately $673 thousand, in
the first quarter of 2006.
Also on February 10, 2006, the Company retired approximately $109 million in
maturing mortgage notes, which had a weighted average interest rate of
approximately 8.0% over the term of the loans. At the time of retirement, these
notes had a weighted average interest rate of 7.4%. The proceeds of the offering
and financings completed in 2006 were used to repay the maturing mortgage notes.
PORTFOLIO HIGHLIGHTS
On March 30, 2006, the Company acquired, through a wholly-owned subsidiary, two
megaplex theatre properties in Garland, Texas and Columbia, Maryland. The
Firewheel 18 and Columbia 14 are both operated by AMC and were acquired for a
total cost of approximately $35.0 million. Both theatres are leased under
long-term triple-net leases.
The Company's theatre development program remains strong. As of March 31, 2006,
the Company had six theatre development projects under construction for which it
has agreed to either finance the development costs or purchase the theatre upon
completion. These theatres are expected to have a total of 95 screens and their
development costs are expected to be approximately $88.2 million.
During the first quarter of 2006, the Company also invested $15.7 million in
mortgage loan financing. An additional $7.7 million ($8.7 million Canadian) was
provided for the purpose of developing a thirteen level entertainment retail
center in downtown Toronto, Ontario, Canada on terms similar to the original
mortgage loan. The Company also provided $8.0 million in mortgage loan financing
for Crotched Mountain Ski Resort located in Bennington, New Hampshire. The loan
bears an initial annual interest rate of 9.25% and provides for annual interest
rate increases based on a formula dependent in part on increases in the Consumer
Price Index (CPI).
For the first three months of 2006, the Company's investments totaled $64.3
million.
ENTERTAINMENT PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
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2006 2005
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Rental revenue $39,130 $34,150
Tenant reimbursements 3,450 2,979
Other income 1,463 814
Mortgage financing interest 1,824 --
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Total revenue 45,867 37,943
Property operating expense 4,770 3,864
Other operating expense 1,038 647
General and administrative expense, including share-based
compensation of $625 and $483, respectively 2,481 1,733
Costs associated with loan refinancing 673 --
Interest expense, net 11,239 9,522
Depreciation and amortization 7,497 6,538
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Income before gain on sale of land and income
from joint ventures 18,169 15,639
Gain on sale of land 345 --
Equity in income from joint ventures 184 174
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Net income $18,698 $15,813
Preferred dividend requirements (2,916) (2,606)
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Net income available to
common shareholders $15,782 $13,207
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Net income per common share:
Basic $ 0.61 $ 0.53
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Diluted $ 0.61 $ 0.52
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Dividends per common share $0.6875 $0.6250
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ENTERTAINMENT PROPERTIES TRUST
RECONCILIATION OF NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS TO FUNDS FROM OPERATIONS (A)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31,
----------------------------
2006 2005
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Net income available to common shareholders $15,782 $13,207
Add: Real estate depreciation and amortization 7,295 6,460
Add: Allocated share of joint venture depreciation 61 59
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FFO available to common shareholders $23,138 $19,726
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FFO per common share:
Basic $ 0.90 0.79
Diluted 0.89 0.77
Shares used for computation (in thousands):
Basic 25,690 24,975
Diluted 26,030 25,496
Other financial information:
Straight-lined rental revenue $ 492 $ 512
(A) The National Association of Real Estate Investment Trusts (NAREIT)
developed FFO as a relative non-GAAP financial measure of performance and
liquidity of an equity REIT in order to recognize that income-producing
real estate historically has not depreciated on the basis determined under
GAAP. FFO is a widely used measure of the operating performance of real
estate companies and is provided here as a supplemental measure to
Generally Accepted Accounting Principles (GAAP) net income available to
common shareholders and earnings per share. FFO, as defined under the
revised NAREIT definition and presented by us, is net income, computed in
accordance with GAAP, excluding gains and losses from sales of depreciable
operating properties, plus real estate related depreciation and
amortization, and after adjustments for unconsolidated partnerships, joint
ventures and other affiliates. Adjustments for unconsolidated partnerships,
joint ventures and other affiliates are calculated to reflect FFO on the
same basis. FFO is a non-GAAP financial measure. FFO does not represent
cash flows from operations as defined by GAAP and is not indicative that
cash flows are adequate to fund all cash needs and is not to be considered
an alternative to net income or any other GAAP measure as a measurement of
the results of the Company's operations or the Company's cash flows or
liquidity as defined by GAAP.
ENTERTAINMENT PROPERTIES TRUST
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
AS OF AS OF
MARCH 31, 2006 DECEMBER 31, 2005
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(UNAUDITED)
ASSETS
Rental properties, net $1,318,783 $1,283,988
Property under development 22,101 19,770
Mortgage note and related accrued interest
receivable 61,157 44,067
Investment in joint ventures 2,268 2,297
Cash and cash equivalents 5,788 6,546
Restricted cash 5,362 13,124
Intangible assets, net 10,159 10,461
Deferred financing costs, net 11,564 10,896
Other assets 28,662 23,016
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Total assets $1,465,844 $1,414,165
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LIABILITIES AND SHAREHOLDERS' EQUITY
Common dividends payable $ 18,183 $ 15,770
Preferred dividends payable 2,916 2,916
Unearned rents 1,110 1,304
Accounts payable and accrued liabilities 8,167 7,928
Long-term debt 721,015 714,591
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Total liabilities 751,391 742,509
Minority interest 5,102 5,235
Shareholders' equity 709,351 666,421
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Total liabilities and shareholders' equity $1,465,844 $1,414,165
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ABOUT ENTERTAINMENT PROPERTIES TRUST
Entertainment Properties Trust is a real estate investment trust (REIT) and is
the largest owner of entertainment real estate in North America, owning megaplex
movie theatre properties, entertainment retail centers and other specialty
properties in metropolitan markets in the U.S. and Canada. Since November of
1997, EPR has acquired more than $1.4 billion of properties. The Company's
common shares of beneficial interest trade on the New York Stock Exchange under
the ticker symbol EPR. Entertainment Properties Trust Company contact: Jon Weis,
30 Pershing Road, Suite 201, Kansas City, Missouri 64108; 888/EPR-REIT; fax:
816/472-5794. The Company website is at www.eprkc.com.
Safe Harbor Statement: This press release includes forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995, identified by
such words as "will be," "intend," "continue," "believe," "may," "expect,"
"hope," "anticipate," "goal", "forecast" or other comparable terms. The
Company's actual financial condition, results of operations, funds from
operations, or business may vary materially from those contemplated by such
forward-looking statements and involve various risks and uncertainties. A
discussion of the risks and uncertainties that could cause actual results to
differ materially from those forward-looking statements is contained in the
Company's SEC filings, including the Company's annual report on Form 10-K for
the year ended December 31, 2005. Investors are cautioned not to place undue
reliance on any forward-looking statements.