Exhibit 99
ENTERTAINMENT PROPERTIES ANNOUNCES SECOND QUARTER 2005 RESULTS
Kansas City, MO, July 28, 2005, -- Entertainment Properties Trust (NYSE:EPR),
today announced financial results for the second quarter ended June 30, 2005.
Net income available to common shareholders for the second quarter ended June
30, 2005 increased 39% to $14.4 million from $10.4 million for the same quarter
last year. On a per share basis, net income available to common shareholders
increased 24% to $0.57 from $0.46 reported in the second quarter of 2004.
Funds From Operations (FFO) for the second quarter 2005 increased 27% to $21.2
million from $16.7 million compared to the same quarter last year. On a fully
diluted basis, FFO per share increased 17% to $0.83 per share from $0.71 per
share for the same quarter last year.
For the six months ended June 30, 2005, net income available to common
shareholders increased 36% to $27.6 million from $20.3 million for the same
period last year. On a per share basis, net income available to common
shareholders increased 16% to $1.09 from $0.94 a year ago. FFO for the six
months ended June 30, 2005 increased 28% to $40.9 million from $32.1 million a
year ago. On a fully diluted basis, FFO per share increased 13% to $1.61 per
share from $1.43 per share for the same period last year.
INVESTMENT ACTIVITY
Significant transactions completed during the second quarter include:
On June 1, 2005 a wholly-owned subsidiary of the Company provided a secured
mortgage loan of $47 million Canadian to Metropolis Limited Partnership for
the purpose of developing a 360,000 square foot entertainment center in the
heart of downtown Toronto, Ontario, Canada. This mortgage note receivable
accrues interest at 15% and matures in five years. In addition, the Company
has an option to purchase a 50% equity interest in the entertainment
center.
On June 28, 2005, the Company completed the acquisition of a megaplex
theatre property in Indianapolis, Indiana. The Showplace 12 is operated by
Kerasotes Showplace Theatres and was acquired for a total cost (including
land and building) of approximately $6.0 million. This theatre is leased
under a long-term triple-net lease.
During the three months ended June 30, 2005, the Company also completed
development of a megaplex theatre property in Conroe, Texas. The Grand
Theatre 14 is operated by Southern Theatres and was completed for a total
development cost (including land and building) of approximately $9.8
million. The land was purchased in 2004 by the Company for $1.8 million.
This theatre is leased under a long-term triple-net lease.
DIVIDENDS AND OTHER DEVELOPMENTS
On June 17, 2005 Entertainment Properties declared a regular quarterly dividend
of $0.625 per common share, which was paid on July 15, 2005 to common
shareholders of record on June 30, 2005. The second quarter cash dividend
represents an annualized dividend amount of $2.50 per common share and
represents an 11% increase compared to the second quarter last year. The Company
also declared and paid a second quarter cash dividend of $0.59375 per share on
the 9.5% Series A Preferred Shares and a cash dividend of $0.484375 per share on
the 7.75% Series B Preferred Shares issued in January 2005.
Entertainment Properties Trust will hold a quarterly earnings conference call on
Friday, July 29, 2005 at 10:00 a.m. Central Time. To participate, please call
800-473-8695. This conference call will be webcast live over the internet from
the Company's website at WWW.EPRKC.COM.
ENTERTAINMENT PROPERTIES TRUST
UNAUDITED FINANCIAL DATA
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
2005 2004 2005 2004
-------------- -------------- -------------- -------------
Rental revenue $ 36,138 $ 31,426 $ 70,288 $ 58,964
Tenant reimbursements 3,091 2,583 6,070 4,766
Other income 1,073 23 1,887 95
Mortgage financing interest 472 - 472 -
-------------- -------------- -------------- -------------
Total revenue 40,774 34,032 78,717 63,825
Property operating expense 3,749 3,067 7,613 5,891
Other operating expense 516 - 1,163 -
General and administrative expense, excluding
amortization of non-vested shares below 1,899 1,486 3,179 2,606
Costs associated with loan refinancing - 1,134 - 1,134
Interest expense, net 10,239 10,026 19,761 18,844
Depreciation and amortization 6,832 5,955 13,370 11,016
Amortization of non-vested shares 405 340 858 680
-------------- -------------- -------------- -------------
Income before income from joint
ventures and minority interests 17,134 12,024 32,773 23,654
Equity in income from joint ventures 188 182 362 310
Minority interests - (490) - (919)
-------------- -------------- -------------- -------------
Net income $ 17,322 $ 11,716 $ 33,135 $ 23,045
Preferred dividend requirements (2,916) (1,366) (5,522) (2,731)
-------------- -------------- -------------- -------------
Net income available to
common shareholders $ 14,406 $ 10,350 $ 27,613 $ 20,314
============== ============== ============== =============
Net income per common share:
Basic $ 0.58 $ 0.47 $ 1.11 $ 0.97
============== ============== ============== =============
Diluted $ 0.57 $ 0.46 $ 1.09 $ 0.94
============== ============== ============== =============
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 JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------------- ----------------------------------
2005 2004 2005 2004
-------------- -------------- -------------- --- ---------------
Net income available to common shareholders $ 14,406 $ 10,350 $ 27,613 $ 20,314
Add: Real estate depreciation and amortization 6,751 5,906 13,212 10,919
Add: Allocated share of joint venture depreciation 61 62 120 105
-------------- -------------- -------------- ---------------
Basic Funds From Operations 21,218 16,318 40,945 31,338
Add: Minority interest in net income - 375 - 750
-------------- -------------- -------------- ---------------
Diluted Funds From Operations $ 21,218 $ 16,693 $ 40,945 $ 32,088
============== ============== ============== ===============
FFO per common share:
Basic $ 0.85 $ 0.73 $ 1.64 $ 1.49
Diluted 0.83 0.71 1.61 1.43
Shares used for computation (in thousands):
Basic 24,984 22,211 24,949 20,969
Diluted 25,475 23,551 25,429 22,411
Other financial information:
Straight-lined rental revenue $ 533 $ 600 $ 1,045 $ 969
(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
(IN THOUSANDS)
AS OF AS OF
JUNE 30, 2005 DECEMBER 31, 2004
------------------ --------------------
(unaudited)
ASSETS
Rental properties, net $ 1,215,796 $ 1,121,409
Property under development 21,134 23,144
Mortgage note and related accrued interest receivable 38,832 -
Investment in joint ventures 2,476 2,541
Cash and cash equivalents 7,214 11,255
Restricted cash 11,729 12,794
Intangible assets, net 10,489 10,900
Deferred financing costs, net 10,969 12,730
Other assets 22,079 18,675
------------------ --------------------
Total assets $ 1,340,718 $ 1,213,448
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LIABILITIES AND SHAREHOLDERS' EQUITY
Common dividends payable $ 15,764 14,097
Preferred dividends payable 2,916 1,366
Unearned rents 2,827 1,634
Other liabilities 8,794 10,070
Long-term debt 644,894 592,892
------------------ --------------------
Total liabilities 675,195 620,059
Minority interests 5,666 6,049
Shareholders' equity 659,857 587,340
------------------ --------------------
Total liabilities and shareholders' equity $ 1,340,718 1,213,448
================== ====================
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 $1.3 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," 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, 2004.