Exhibit 99 ENTERTAINMENT PROPERTIES ANNOUNCES RECORD THIRD QUARTER RESULTS Kansas City, MO, October 28, 2004, -- Entertainment Properties Trust (NYSE:EPR), today reported financial results for the third quarter ended September 30, 2004. Total revenues increased 42% to $32.6 million for the quarter as compared to $23.0 million for the same quarter in 2003. Net income available to common shareholders increased 69% to $14.0 million as compared to $8.3 million in the same quarter last year. Net income available to common shareholders on a diluted per share basis increased 24% to $0.57 per share from $0.46 per share in the same quarter last year. Funds from operations (FFO) on a fully diluted basis increased 56% to $19.8 million from $12.7 million for the same quarter last year. On a fully diluted basis, FFO per share increased 18% to $0.80 per share from $0.68 per share for the same quarter last year. David Brain, President and Chief Executive Officer stated, "We are pleased to once again report double-digit increases in our operations. The continued strong growth of the Company is evident throughout our financial results." Real Estate Investments During the third quarter of 2004, the Company completed $36.6 million in real estate investments including two megaplex theatre acquisitions totaling approximately $19.5 million, consisting of the Grand Prairie Theatre located in Peoria, Illinois, leased to Rave Motion Pictures, and the Palace Theatre in Lafayette, Louisiana leased to Southern Theatres. Lease terms for both theatres include a 20 year base term with optional extension periods all on a triple-net basis. The Company invested approximately $17.1 million in construction funding and land purchase for megaplex theatre and retail projects expected to be opened during 2004 and 2005. Real Estate Dispositions On September 30, 2004, the Company sold its 100% interest in the Hawaiian Adventure Waterpark in Garland, Texas at net book value of approximately $3.1 million. Accordingly, no gain or loss was recorded on the sale. As previously announced, the Company's Board of Trustees declared a cash dividend of $0.5625 per common share for the third quarter, which was paid on October 15, 2004 to common shareholders of record on September 30, 2004. The third quarter cash dividend represents an annualized dividend amount of $2.25 per common share as compared to $2.00 for the prior year. The Company also declared and paid a third quarter cash dividend of $0.59375 on the 9.5% Series A Preferred Shares. On September 20, 2004, 100% of the preferred interest in EPT Gulf States, LLC was converted to 857,145 restricted common shares of the Company. As a result, $15 million of minority interest in a consolidated subsidiary was converted to common shares and additional paid-in-capital. The shares were subsequently registered with the SEC under the Securities Act of 1933. ENTERTAINMENT PROPERTIES TRUST Unaudited Financial Data (in thousands except per share data) Three months ended Nine months ended September 30, September 30, 2004 2003 2004 2003 ------------ ------------ ------------- ------------- Rental revenue $32,308 $22,406 $91,273 $64,808 Other income 297 608 393 1,195 ------------ ------------ ------------- ------------- Total Income 32,605 23,014 91,666 66,003 Property operating expense, net 465 220 1,590 398 General and administrative expense, excluding amortization of non-vested shares below 1,078 929 3,685 2,935 Costs associated with loan refinancing - - 1,134 - Interest expense, net 9,457 7,653 28,301 22,363 Depreciation and amortization 6,021 4,085 17,036 11,631 Amortization of non-vested shares 340 232 1,021 694 ------------ ------------ ------------- ------------- Income before income from joint ventures and minority interest 15,244 9,895 38,899 27,982 Equity in income from joint ventures 172 111 482 299 Minority interest (62) (375) (982) (1,125) ------------ ------------ ------------- ------------- Net income $15,354 $9,631 $38,399 $27,156 Preferred dividend requirements (1,366) (1,366) (4,097) (4,097) ------------ ------------ ------------- ------------- Net income available to common shareholders $13,988 $8,265 $34,302 $23,059 ============ ============ ============= ============= Basic net income per common share $0.58 $0.48 $1.56 $1.34 Diluted net income per common share $0.57 $0.46 $1.51 $1.31 ENTERTAINMENT PROPERTIES TRUST Reconciliation of Net Income Available to Common Shareholders to Funds From Operations (A) (in thousands except per share data) Three months ended Nine months ended September 30, September 30, FUNDS FROM OPERATIONS: 2004 2003 2004 2003 ------------ ------------------------------- ------------- Net income available to common shareholders $13,988 $8,265 $34,302 $23,059 Add: Real estate depreciation and amortization 5,778 4,042 16,347 11,496 Add: Share of joint venture depreciation 59 33 163 97 ------------ ------------ ------------- ------------- Basic funds from operations $19,825 $12,340 $50,812 $34,652 ------------ ------------ ------------- ------------- Add: minority interest in net income - 375 750 1,125 ------------ ------------ ------------- ------------- Diluted funds from operations $19,825 $12,715 $51,562 $35,777 ============ ============ ============= ============= FFO per common share: Basic $0.82 $0.71 $2.31 $2.02 Diluted $0.80 $0.68 $2.23 $1.94 Shares used for computation (in thousands): Basic 24,031 17,353 21,997 17,189 Diluted 24,628 18,641 23,159 18,456 Other financial information: Straight-lined rental revenue $ 665 $ - $ 1,635 $ - (A) Funds from operations (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 earning per share. FFO is defined as net income (computed in accordance with GAAP), excluding gains and losses from sales of depreciable operating properties, plus 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 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 (in thousands) AS OF AS OF SEPTEMBER 30, 2004 DECEMBER 31, 2003 (unaudited) ASSETS Rental properties, net $1,078,339 $887,143 Property under development 46,520 12,953 Investment in joint ventures 2,575 1,336 Cash and cash equivalents 10,252 29,284 Restricted cash 12,863 7,738 Intangibles, net 10,624 693 Other assets 40,046 26,771 ---------- -------- Total assets $1,201,219 $965,918 ========== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Common dividends payable $ 14,023 $ 9,829 Preferred dividends payable 1,366 1,366 Unearned rents 641 895 Other liabilities 7,759 2,864 Long term debt 589,127 506,555 ---------- -------- Total liabilities 612,916 521,509 Minority interest 6,144 21,630 Shareholders' equity 582,159 422,779 ---------- -------- Total liabilities and shareholders' $1,201,219 $965,918 equity ========== ======== About Entertainment Properties Trust Entertainment Properties Trust is the only publicly traded real estate investment trust (REIT) focused on the acquisition of high-quality real estate assets leased to leading location-based entertainment operators. Since November of 1997, EPR has acquired more than $1.2 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 W. 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," or other comparable terms. The Company's actual financial condition, results of operations and funds from operations may vary materially from those contemplated by such forward-looking statements. A discussion of the factors 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, 2003 and its prospectus filed under Rule 424(b) of the SEC on October 14, 2004. ..