EPR,EPR.PC,EPR.PE,EPR.PG - Earnings call transcript Q2 2021

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Operator

Good morning ladies and gentlemen, and welcome to the Q2 2021 EPR Properties Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question and answer session and instructions will follow at that time. [Operator instructions].

As a reminder, this conference call is being recorded. to VP conference of like host, to now Moriarty, Brian Corporate would turn over the your I Communications. Please go ahead.

Brian Moriarty

operations Thank Thanks for Greg Zimmerman, identified these statements. our hope, vary everybody, cause contemplated those are Greg as anticipate will and statements for today's the and factors on Discussion Participants company's Hi, materially earnings materially words for by CEO; President webcast. including comparable by the XXXX President, and Mark second other these you, this intend, CFO. today of to quarter call terms. and on The company's such Securities call differ Executive Silvers, joining XX-Q. and the company's Alisha. us start continue, call filings, Form may expect, you forward-looking and of of CIO or are Peterson, that forward-looking condition SEC and actual XXXX, that in Vice from believe, statements may, by financial reports may results be, such call as Litigation Act could forward-looking include I'll results Private XX-K Executive welcome. contained the Vice defined in informing from President the

today's the contain to will release most evaluating believe and are directly X-K. the SEC non-GAAP GAAP references useful earnings call under this measures to measures, the comparable Additionally, are in of supplemental reconciliation company's certain to which in included these Form we information performance. furnished measures A

www.eprkc.com. available today's of center on call wish and are follow the all earnings page along, you supplemental investor release, to If company's website, earnings the presentation

the and Greg I'll CEO, the President Now company's call to turn over Silvers.

Greg Silvers

for on everyone, XXXX Good and second and webcast. thank morning, quarter Brian. you, joining us you earnings call today's Thank

fundamentals, Fueled guidance early we strides relief of strong open. significant termination that of properties our During milestone critical and covenant end our are collection achieved quarter of the we subsequent end make announced quarter our we continue the by that cash announce and nearly levels to to exceeded as these high the a period. all we

milestone U.S. recovery. the us to a an to for shareholders, the this shareholders supported our driving to in announced external efforts and shareholders pleased experiences have resumption these even achieving partners is thankful have navigating employees, continuing and Properties Importantly, which point return cloistered we very to our the this dividend appreciation time. months growth. our who of Having over alongside consumers to to I'm and to we're greater our for common homes their consumers experiential increase have monthly unprecedented earnings anticipate times. value turning also pursue in I'm allow the milestone been seeing Throughout offer. that growth

alternatives, portfolio theaters. across continue office levels. tenants also with Even recently box This in-home most pandemic performance been begun see several outpacing post new As come an certain strong seen same-day with We've has by our to consistently, going the not response delayed to been demand stated issue. is of we've highlighted have movie to finally as streaming the public consumer records. XXXX non-theater we releases

this still consumers to single in increasingly be confident of in and we support we recognize highly proven has that our a in economy. are economy While to environment, investing we experience the important which properties we remain believe fluid thesis

are our as on increasing we resuming performing are our deploying achieving lower relief and Additionally, potentially Upon the covenant properties our focused goals that high-performing strong dividend, displaced. now earnings and capital, of our customers our locations believe close growing and we exiting dividend. will remain

conviction greater provide for year. are guidance Lastly, earnings annual clarity the our we our restarting will which of

the Zimmerman Greg to over business call the in detail. turn I'll to Now, discuss greater

Greg Zimmerman

occupied. with of the At XXX approximately billion investments total and $X.X quarter XX% our end were service second the Greg. properties Thanks, in

experiential quarter, the to $XX.X case for spending projects. $XX.X in investment bringing in million and the the our redevelopment build-to-suit of our The each was year entirely total million, first the spending portfolio. half investment included During development

operators with the of $X.X total $X.X investments XX% our accounts portfolio for and experiential or approximately XX XXX of Our billion. comprises properties billion

We have four properties under development.

XX eight of the comprises portfolio operators education properties Our at XXX% was with occupied. quarter and the end

reopened on capacity Now, of provincial I'll timelines. mid-July. update July theaters our relaxation in of status Based in deferral tenants, of you open rent restrictions the four of operating theaters and XXth. as EPR XX% on payment at our Canada reduced agreements our were

to third manager theaters noted in by none But release, had continue executed unleased I theaters report to Illinois. theaters we which Columbus, QX, that will they five were leases and operate planned for vacant. We party a we year. In which to two Ohio through anticipate we pleased five major of all have this operated I'm which and exhibitors. reopen were Champaign, we

are theaters our of will All leased. which as continue cinemas

Starting month June. reported, March's May. March, Place million, in million. six a anticipate we normal, million finish office and the office we April to FX, II million box improve. office We returning gross in country million recaptured with Box $XXX $XXX March since over by box month-over-month As $XXX $XXX more to better June office million office began a will two during have including over vaulted exceeded and Quiet and marketing studios Driven the increased the previously to was box as to film theaters box and from time July's again for which box are released office contracts. month product XX% increase began executed sale, XXXX. $XXX Part jumped to a $XXX first

tent-poles by the solid smaller growth important, performance Just the as driven of films. together with is

versus office billion past XXXX. exceeds $X.X box all of billion the of weekend, $X.X for growth year-to-date As

by positive of trend excited growth. month-over-month We office box the are

recovery grossed and To No No opening the Four. Afterlife. PBOD. X Black Carnage, grossed additional Maverick, weekend exceeded example which The it release weekend an of box Access is continue. slate is as to Let delayed Legend Disney $XX Hollywood its film reported released theaters, $XX opening weekend Premiere capture by this days many Disney's Plus year Widow greater Disney Eternals, of of Ghostbusters: worldwide to tent-pole anticipated of on robust film XX remainder FX's highly the which pre-pandemic date simultaneously country last strong Premier Time the will momentum exhibition Gun: $XX Plus million and a recovered. year Disney Jungle is access, for attendance Shang-Chi was gross and release and million, weekend Home, title approached the past Be after this theaters which Venom: on from in Disney theatrical In this released simultaneously has expect pandemic. to the grossed Black the Matrix delayed premium Plus announced the Disney Access Spiderman: The Through We be Way the million, of Disney's its of levels is on-demand Guy, The for July Free studios' King's Cruise There $XXX will Widow PBOD. simultaneously million. Widow premier Ten the includes now be that Man that office Marvel through Cruise and PBOD. since video remainder the on its Black very Suicide Rings, number. has Jungle slate the until weekend Dune, began an titles had Squad, opening theatrical Top released as Die, a on in

release Disney For year, of is strategies. varying the employing remainder the

As theaters on Access PBOD. Plus noted, Cruise released Jungle and in simultaneously Disney be Premier will

is Disney The releases, Man on currently Ten Likewise, Widow's only of King's and points. Rings other for also release the Plus. and Shang-Chi only the Black before release evaluation Plus. availability and multiple a results availability couple two on are for Marvel of strategies of Disney's underscore scheduled theatrical Studios' Disney Legend Eternals before theatrical the scheduled the currently

all drive And experiment to for with streaming second, studios an studios important element. continues to essential theatrical cases remains optimize exhibition PBOD as to their release they theatrical windows, revenue? to will an why But First, revenues. seek and element be continue in

have investments and box clearer theaters one theaters, the amenities we've of to either with with are We the enhanced X% of are Nearly demonstrably made results. or to including and driving our XX% It theaters box recovers recliner amenities, that our food As the XX% of the more premium houses produce nearly top over recliners, XX% with and EPR are for in add XX% past our our IMAX true This of beverage screen. X% Nearly and trend seating. alcohol at and/or food one own large format have of enhanced several theaters. least years outperforming amenities. screens of theaters theaters have limited the premium clearer but offerings format alcohol. office and portfolio. office beverage And become including XX% theaters has is our theaters of theaters large

is portfolio to outperform. well-positioned cinema Our

are our major customer other and now update of open. now to non-theater of A an our portfolio operators XXX% our on Turning groups. XXX% education

seasonable Our in course. the normal are closed businesses

of was skiers, important, We're or excellent restrictions well food destinations. for new drive-to-value-oriented locations. Perhaps We levels. at are in customer slightly, seeing XXXX saw above which with & Ski seeing were an three-year and of continued Eat reflecting expanding positive bodes performance all segments our in increase across X% only base. beverage attendance more and an we performance Play on attendance down averages revenues many ahead across

very the pleased with are Topgolf May. new which the in We acquired Jose, San of we performance

is also Georgia May Andretti in and fifth location Karting Buford Our opened in well. performing

the summer. to demand throughout We expect remain robust

holdings pent-up and the seeing ahead the are XXXX demand We our levels. expect attendance of trend summer. cultural of to attractions attractions Several throughout and our strong are significantly continue across

throughout reopened our quarter The was on in seeing the also lodging Beach the trend Bellwether are Hotel Petersburg experiential continue Beach of Indoor St. The will Beachcomber completed July summer. We the renovated and Resort. again high in substantially Resort demand and Cartwright portfolio Xst. Waterpark joining expect renovation in the the

Margaritaville from Indycar the inaugural in City Our Prix Race Nashville will in big early machine award-winning Music Grand Nashville August. Hotel Downtown benefit

camp Lodge Margaritaville beautiful and June. Resort RV Pigeon our new in brand Finally, opened Forge in

well. Our continues education to portfolio perform

one capital XXXX Since of on our million. have QX, theaters sold continues In be with sold primary of to in for recycling gain theaters. to we four vacant recognized more. theater and We're contracts activity $XX.X QX, two for property we disposing in net have pleased and sale million $X.X progress executed proceeds Our theaters.

excited As prospect returning XX months, to I a remaining noted above, we are of the about four. marketing we're the After growth. challenging

categories other on professionals investment theaters. opportunities Our at are than our new of experiential road in the and all back looking

I second agreements. XX% recognized and Finally, not status and paid approximately for were which you payments $X update the deferral of from tenants as the trajectory. rent previously upward on Cash of cash in cash deferred collections revenue contractual their the deferred our including collections basis cash for to from continue tenants quarter, want borrowers Tenants and million revenue.

have cash revenue, accrual of through rent collections rent either million. reductions. have of interest addition, agreement and and XX paying $XX.X rent of includes In XX, all permanent of interest X% the the deferred a contract interest and cash in provide contractual of revenue which will year. In Customers totaled deferral to-date or quarter July Mark substantially their additional remainder are agreements, place. year color granted tenants from customers recognition each second for deferral we our on representing top collections and approximately the payment those our basis or

by financials. excited XXX% fourth to for a are discussion prospect of the it We him over turn I'll by the a quarter. of now metric approaching each the

Mark Peterson

in per $X.XX Greg. and XXXX AFFO $X.XX position provide an on you, guidance. balance for per our share prior quarter, was for quarter discuss versus financial introducing Today Thank FFO's sheet and by comments. to compared million Total the and close prior our year. adjusted the for the revenue be I for quarter million $X.XX revenue year $X.XX performance continue on will cash and liquidity share a from the was the versus strong $XXX.X tenants was collections the have This $XXX.X primarily was improve more in collections which my later prior increase due basis. in I'll year. in to on to recognized the certain quarter update

quarter and year prior property a rent the This related increases developments as partially rent the as from contributed point increase the degree to rents versus vacancies. $X scheduled an like education base increase by we an dispositions higher rents lesser did disposition for was offset are in the year. here agreement Percentage over offset in million Additionally, as rents in acquisitions This tenant $X.X million to completed of would out totaled on that lieu and and to early defining do due not well the and revenue. partially past in above certain private of percentage increase. I percentage of increase was to as rents a December by last I amounts to payments XXXX. a based quarter percentage schools base restructured of

a During due the credit quarter, we year. loss a the adjusted. in third benefit allowance loss repayment than party positive receivable, in by note excluded in versus a credit a $X.X which benefit was reduced that expected borrower $X.X of performance, as due fully partial reduction of well changes million our stronger a on loss environment on which to to and allowance the for calculated reduced million FFO's our Note as model. resulted reserve from using this our prior notes macro mortgage This the notes is

after time. which Lastly, income million for the all allowance the eliminated $XXX that variance XXXX, during XXX expense effectively of related deferred This impact the in the a tax year. third to benefit assets tax deferred taxes full $X.X the versus was prior recognized quarter of valuation of quarter income in

activities. capital to Now let's and markets sheet our turn balance

XXth. on debt debt debt billion, that swaps total fixed coupon rate is either quarter $X.XX all approximately X.X%. which Our debt-to-gross XX% of was at book we end, rate through fixed basis of with has of had assets interest June At blended a a outstanding been or

Additionally, debt credit maturities currently our matures XXXX scheduled weighted has until we zero only average facility approximately have balance. maturity five a which debt is years no our and revolving when

performance announced place early been year. facilities elect covenant the previously period of this we forward of our and certain an the As termination had in relief the improvement favorable that the credit due going until of expectation able were the of to end under continued to quarter

in and based rate this million expense million going term approximately savings their $X.X on were covenant revolver Note run of of loan as the basis will the As of on million a placement GAAP interest approximately on be be XXX terms. points, change. rates the realize on private forward reduction were interest about basis bonds premium continues interest our by quarterly the quarterly reduced the Only cash during remaining our paid million effective rates July the reflected points a and reduced unsecured by current each our in that immediate result $X.X will we over of XX, notes as $XXX $XXX.X period placement relief a to as XXXX, debt case result amortized private XXX ratings.

monthly and cash to resume a to dividend $XXX.X first $X of price at April. relief Upon This revolver we Of certain will yield our covenant current million August. X.X%. capital course, the payment investments, restrictions in of shareholders going of debt, $X.XX quarterly cash about expenditures, relief with stock the of stock an repurchases all reflected of a dividend had and zero paid beginning were of out to run our also on also restrictions of savings were AFFO termination down the payment rate quarter forward. from period, and be covenant million incurrences annualized dividends. share cash our $X.X in period, Coming per we released on We pleased in the including represents of hand end of common on we

went our note pleased a liquidity and out about $XXX with perspective at from the levels. that the and we coming pandemic we cash nothing hand into revolver, are same the to drawn on of of are pandemic million now on We

We cash we encouraged we the in the in resulting collections. are are our experiencing customers also signs trajectory businesses are by positive and seeing positive

we continued Play approximately second million to was of $XXX.X range provided in certain Eat This improve by customers cash driven end and the cash Tenants. XX% quarter. revenue excess Attractions collections previously or contractual high from of the As I and the and had is earlier, mentioned collections from and of amount were additional guidance for

to months. we July total and of of Subsequent expect $XX.X deferred of borrowers the XX rent million, deferred $X.X we to we the basis and accrual an the the the from and collect primarily which books $XX.X through interest over and deferrals tenants during was XX $XX.X collected on additional million collected our million. year-to-date the rent receivable XXth next end million such quarter to interest at addition, In quarter, bringing June

books not about deferred on as to customers previously recognized to and In revenue. tenants not addition, deferred and from owed cash payments interest the rent we $XXX us were related have which of million basis

scheduled beginning as While is will this in of XX associated July to beginning once a of receivables income return collections capital. be deferrals have on certainly we be Collection XXXX. than addition most from customers quarterly in of additional groups to some over provide of these the been accounting, has amount that scheduled note this in amount $XXX reporting both It and risk with growth million be reported to accrual the collected And second as collected XXXX, to more books. is that result are important half to received. months of with it on the is of rates the has the again until only these collection cash us

be per guidance for for up as and our pleased additional includes to spending rate XXXX of to spending the only $XX last we portfolio run The XXXX FFO's are We important per approximately investment of share investors We pipeline. understand is therefore share to the our XXX not to it ramp year. six FFO's guidance investment for guidance previously XXX. this believe of introducing for of elected adjusted for provide months we've adjusted investment million XXXX committed existing

on revenue of QX expect statements XX% and XXXX to we ranges $XXX like to have expected $XXX those million also our to QX relate contractual that as respectively. $XXX we third XX% XXXX done the of range in collections to expected revenue the XX% of for and to recognize previous well of our such As we cash expected would $XXX same financial as XXXX, to periods. XX% expect update in or quarters The quarters, or you that we to cash million and million contractual to is of in million recognize fourth

contractual in to in XX% to to Details that XX% Additionally, QX $XXX million from abatements. managed rent, and XX% of to the as XXXX supplemental. $XXX revenue-related and XXXX amount and million found properties. to relate the $XXX continues our or the and all to of full of cash we guidance such expect million respectively. is revenue revenue of XX or associated be revenue expected to percentage contractual XXXX million of $XXX cash range collect exclude Differences revenue the cash QX as definition straight can line page non-cash contractual accounting on of note well deferrals other regarding of granted to Please our XX%

with that, Now I'll it over turn to back Greg.

Greg Silvers

Thank you, Mark.

today, heard you've pleased progress we've made are and with fronts significant that progress. on all As

realizing not However, these move in Whitney? am we increase it we With on of how goals we diversity. to are up cash are drive the for that, to of capital forward I we more revolver tenant don't undrawn an $XXX early. done. than the deploying With questions. growth throughout And and why open to million I earnings say I entire more team in and again as want proud balance accomplishments year. look focused the

Operator

[Operator Instructions] McConnell is of Your Citi. line first the question Katy from with

Katy McConnell

Good Thank morning Great. everyone. you.

Greg Silvers

Katy. morning, Good

Katy McConnell

process just the some and process color same update an Could as pricing you for the have theater on then sold this quarter now? the more one sale as plant you asset And that in fix demand? buyer for the far on

Mark Peterson

Greg, want answer? to do you

Greg Silvers

mentioned and one opportunities, multi-family. multi-family past potential over industrial, theaters were multi-family. include contracts was year have been as will One's for QX. marketing retail, The one This Office, the not four from a theater since four retail industrial. various for we for use. be or a industrial. for couple sold The I We Sure. for

the through later on As the information once assets we've other Katy, related most or the rate cap we'll we to sales year provide get selling next in these before, early and update of said year. an

Katy McConnell

the deals at then opportunities now that you're whether in us targeting And of you portfolio seeing? can pursue ability near types on you're to have Thanks. the assets Okay. you And investment external term, this the more or one-off update point? more

Greg Silvers

want Again, to fact been the said diversity. that we we've grow is, clear our tenant Katy, we've what pretty about

grow those, the we've our or theater our open as So that's but other our whether all of cash of areas as to experiential not all said, above. to portfolio, we're looking given balance far portfolios, one-off were

already actively we it's have to think it's I the recognize -- pipeline that that year. half building we're of that

are of of actively in end year got toward to pursuing larger the business if not transactions our for but back or of next with going team time involvement. the So forward transactions. get end willing his it next be I and go greatly any beginning I probably they've know and expand And or there our take and know year are able of toward to small Greg this to year. just capital look that as And kind ourselves, that But team partner tenants only large really appreciate out their respond feels it them. good they to ready and a and

Katy McConnell

Okay, Thank great. you.

Operator

Your next Paolone Anthony question is from with the line Morgan. JP of

Anthony Paolone

first some is Okay. you with Thanks. sounds it vacancy with -- tie My did that theaters? that like X% how's the vacant on leasing, like the portfolio, in the Good question of morning. does the

Greg Silvers

Again, I X% overall really. Go vacancy is Mark. ahead, our think

Mark Peterson

Yes.

the included the think, sale we theaters I to sale. But we're experiential mentioned properties for And vacancy, Greg being got as we're I that lease sale. marketing that's have that ones expect marketing All still said, Greg all ones that some side. in for that as are have marketed think the we on leased. we've they're been because for some vacant

Greg Silvers

number, entertainment small small have that shop a do an then occasional but we And relatively may centers just but… retail have some vacancy,

Mark Peterson

is said open. always we've Which

Greg Zimmerman

us. Consistent Yes. with

Mark Peterson

Exactly.

Anthony Paolone

Okay.

that So vacancy sort not leased? included leased in those already they're of basically Or the numbers? five you there because in that's

Mark Peterson

like -- vacant that Greg to said, our -- and They're a little stemming at centers. bit we theaters the vacancies mentioned retail then that sell and the of plan really the retail got in entertainment there I we've the from

will then, we to properties. XX% likely. to that that vacancy way they'll just it, that we to up always be go these number already lease we've centers we got So the due that some are expect say all entertainment ones retail And include Then -- that sell number. as another -- does in the

Anthony Paolone

$XXX -- and rate's add Got range running What theater collections and rate, or sort the you you've your the do these up in been out run it. all like forth. that seems expectation when of million so that commence? And it laid to revenue as run leases for they're

Mark Peterson

right I of rest for leases the rent the a deal. now more the year, think Well, on theater are percentage

next really kick more they'll So in year.

Greg Zimmerman

And Yes. probably the later won't they until open year. in

them of get by open closed Some bit of a QX. renovation to a have year all They and have a were for done. least little to half. We're them hoping at

Mark Peterson

than bodes to were think and I Tony, anything, or these which I quality think pre-pandemic, change to what had where that operators before we've are achieve released Greg given range the they our and think to for have that at that ask lease in of of well we the this we before theaters that ability similar very levels the environment. these more -- comment I released I'll about at

Greg Silvers

think are And million. dollars just I those worth a terms over of probably in little $X

Greg Zimmerman

Yes.

Anthony Paolone

incremental. in million $X

Mark Peterson

next More Yes. year.

Anthony Paolone

helpful. then was put some just deploy you'd like That's segments around it. look for make again, as to various where maybe rates I you had capital? can Got the in cap numbers investments which Okay. the And to you are only question

Mark Peterson

somewhere around Greg is what that kind available. think deployment and Rather than we where comment one down think mid -- to said I'll of we've is and I seventh ask every the break of them, is opportunity

said, kind segment. experiential going of theater than I areas to say as be of the that and other it's our would we all So in --

Anthony Paolone

would it space. back Okay. were went you kind to compressed sevens liquidity Do of lot And you that that's do nature? if number on I deal, been think was like that transaction all maybe previously, number, you were you hold you in the to casino think that sounded a in -- of you there's close Do to but a think mid-high a -- still all? think that's that

Greg Silvers

Vegas Greg there's see. kind to-date more you there maybe no been doubt that occurred. have? But to But focused. have that of going We're those has have to transactions been Again, have even

Greg Zimmerman

cap. one Yes. MGM I the was Springfield mean, transaction a the was and focus major non-Vegas and that X.X MGP with

Anthony Paolone

Okay. Thanks Great. the color. for

Greg Silvers

Tony. Thanks

Greg Zimmerman

Tony. Thanks

Operator

KeyBanc Your line Todd Markets. of next from question is Capital Thomas the with

Todd Thomas

morning. Hi. Thanks. Good

investments or about there question, comment for asset relief that Can gaming on the there's first process? follow more were that provide an Just something that pandemic. XXXX that for might talk you the up to I XXXX the that happen potential and update exited specifically pursuing on curious whether period whether before wanted and as about perhaps covenant you just to growth? you've something look on in and be to the And just pursue revisiting

Greg Silvers

we've expressed portfolio. to It's to a sense gaming our comment fits. interest a think deal. and in it Todd, don't and on about fit for talked continuing us our logical that I know it makes potential

our think fact add. portfolio. there. you rather sense maybe Greg anything add it's it been have the to I'd pretty to So I And leave more that an we're to about straightforward But We've it that area we think going makes pursue. to

Greg Zimmerman

No.

Todd Thomas

us of whether that's the can leverage all -- perhaps and be And the year about target of coming targets at out long-term Okay. you of reminds or where into heading sort XXXX? pandemic or expect talk today company's end leverage deploying leverage offense thinking long-term sort the of you about shifting Mark, and discuss at then, changed capital, to and

Mark Peterson

that's Sure. The mid-fives target. back Yes. we've debt-to-EBITDA. news where we sort good is in range always should be of end the mid-five kind of around the of operated And that year we by that the

cash and because So, number slightly, additional next forth we've as drop that in year. we will of kind got flow transactions into actually so coming probably year go x next

good is mid-fives we've of investment in grade So, term near that that always the metric the operated news kind here at. we're back to of

Todd Thomas

Cartwright? in embedded early on Can there reads provide the just any update an and Okay. And opened through there? that Xst. it you the impact guidance? Can the said, contribution since you And on reopen just one model financial that's question the guidance. asset think I from you walk July

Mark Peterson

specific giving guidance take will say, to time. not it's We're going ramp some on I Cartwright. just opening

expecting contribution So the of over year. large the remainder we're a not

cetera. to and back ramping As expenses marketing up, it's sales get et again there's going

significant a season have guidance and it's our But full more another that get -- It'll when next open contribution. next in you anticipating not some year. should into then season year really a we and play we're this year full come So, contribution. be been

Greg Zimmerman

And I it's would for say from operations an weeks. open only perspective, three been

have results closed up in the ramping we're and we're half. year So But a expected. it's been early after what with pleased line with for and it we a

Todd Thomas

right. All Okay. Thank you.

Greg Zimmerman

Thanks.

Operator

question Janney. of is next with line Rob from Your the Stevenson

Rob Stevenson

still But guys. or reuses? given NOI. the the here trading. you and the theater not what versus performing on that only things screen you're morning, these pre-pandemic? a Good about good per on Can trading things seeing or seat today the in And valuations tricky are rates I scrapes cap are are talk valuation adaptive are marketplace assume

Mark Peterson

I let would say looking been much we mean, I be I clearer. at in we're to comment. at for don't we haven't don't can Greg think transactions I then the and involving market theaters. operating theater, looking think I'll so

-- As really far hit it. seeing as it's reuse. what you adaptive we're It's

So I different think right in now, it's place -- little a Rob. we're bit just

not looking portfolio. grow to theaters we're at that I Greg? So said, as But really

Greg Silvers

No.

summarized that's think right Rob. it, I you exactly and I think

Rob Stevenson

XXXX. for of if was ads, the sale Because you I just Okay. one today much XX July market but -- say top wanted versus AMC your locations not to so

what seems because are sitting pricing people sort to are be depressed. XXXX early it Just don't they they looks there of wave either just what XXXX a sitting going you it on of them like pricing and of sell or differential want also are these here? now, than But type to understand Because and as looking want wanted at? to triangulate of might like was guys things lot theaters on to are wise on out get think valuations sitting trying other here we're a of maybe -- -- people

Mark Peterson

It's a a that I realization there's right question. now. just lot think don't great of of think don't I transactions. lot of a there's

it's So give answer, difficult you to Rob. an

Rob Stevenson

it on then, it at And and What disruption variants low board when that in guidance lower Greg, XXX, about FFO or and mean, high setting back you is somewhere can the limit there? other quarterly again, about XXX, on your concerns $X basis, might possibly around were end on I delta which call some the XXs things the payout. discussions an capacity Okay. it manner, or how then look down dividend? FFO annual it basis a some XXs is shut a talk you settled increasing cause

about guys you Just thought how that?

Greg Silvers

to And Sure. this was year. it really Rob, taxable for deal income Great with question.

a view was allow so, increase And upon really wasn't do continue to based the our really was would discussion. a year. hold meaningful to anything. or There that projections delta that But there if up a that it next taxable It or risk income. was discussion for variant

Mark Peterson

additional have at in normalization so growth. that would happens we or fully Yes. allow year XXXX that next Because for

Greg Silvers

maintaining XXs a still relatively While low payout.

Mark Peterson

Right.

Rob Stevenson

Okay.

raise also no your quarter we and So, assume question winds keeps does of Mark, as implicit head that as revenue and factors. you're XXXX I a guess collection the your by well there there's basically then if being going into revenue statement is equal dividend all that that, force taxable fourth to sort I mean, this and sort back cetera, of that being looking you that from at else to up standpoint? guidance XXXX the your the in is disruptions coming et

Mark Peterson

to recognition All things hopefully not equal will know Yes. because just going then taxable next quite which --yes, year's we're drive and at have at XXX% be XXX% revenue we'll -- we greater XXXX a we'll you income. at

dividend increase that would to imply tax a it liability. yes, cover So

Rob Stevenson

Appreciate guys. Thanks time. the great. Okay,

Mark Peterson

Thanks, Rob.

Operator

the is line question Carroll Michael next Markets. Your RBC with Capital from of

Michael Carroll

Thanks.

opportunities types Greg, the there I about So guess, that I could other that Obviously, wanted was are target I $XXX you one available. under but I'm pre-COVID. a number, Is gave transactions still And good, out of to are with outside a contract deals to a wrong, with EPR if of $XXX you talk correct these albeit the bit I thought that compete that what guess, these me had year. pre-COVID? gaming guess, million properties? that types million little of the long-term

Greg Silvers

mean, I be Yes. going to I to think able we're compete.

we and us of space mean, we'll properties. to But But do going will Greg? see to is. add the I deals, will as Michael, the I think saw the somebody to never it's ourselves, Vegas -- opportunities to on that allow in meaningfully have how be our $X play large billion compete valuation some diversity. who think was we there again,

Greg Zimmerman

belief the No, I still regional right. think that's assets. in value strong a we casino have And of

Michael Carroll

are these those And in type correctly have there's about, transaction gaming did Okay. And regional valuations rates And on where little mid ranges? opportunities you I -- then, a cap can you guess, thought hear Vegas these for in? deals deals? you did going talk X% I I meaningfully still those bit more that compressed versus deals regional

Greg Silvers

deal. with whether at for that in Vegas have said, there asset at of indicates point Venetian transactions that a we've or the you the during data, data the regional we that announced premium what think is look if market was Springfield, which data and Vici's that a seen transaction pandemic Blackstone that is I we associated Michael, is done acquisition The MGP's premier a the assets recently that only a still clearly the the Well, was X.X. be

all think assets, we and cap rates option I right for we'll play see data indicate attractive to the But very I as still EPR. now, would that. will opportunity go and see experiential that comes of any the with think in back a normalization about as there's where our

Michael Carroll

great. for one And last me. then Okay,

and releases? results and highlighted changed the solve exhibitors still June mean, studios over the I few for targeting and exhibitors were last has given have past I theatrical that in window. occurred May you releases quarter that the that months a type studios that these the on think XX-day the about releases

Greg Silvers

anything I again comment if I'll make and and ask don't that's Greg. kind of think -- I'll any my

the see year we exhibition actual the work revenue theatrical to of their movie there I recognition direct comments but that total for on may But I have revenues the the that window. theatrical of still to the to of greater issue of way think spectrum. the a it the is dollars number on only exclusive maximizes experiments maximize call CEO not opinion value the on to their a of if realize agreement who what window, theatrical an as windows where right is exhibition standardizing entire directly across title. is some value the is. to took more IMAX's think you through is they best on We I that there need earnings would haven't of a And days Disney. that on

Greg Zimmerman

one Jungle right. the I as Disney think is has that's mentioned, that more And year, the this rest Cruise I only dropping of simultaneously for week.

Michael Carroll

Thank great. you. Okay,

Operator

is with question the next from of John Ladenburg line Your Thalmann. Massocca

John Massocca

Good morning.

Greg Silvers

morning. good John,

John Massocca

was maybe just of So, XX% cash in QX XQ? out reduction was of collection lower I and on tangible kind achieved what the low versus noticed of Or the question there given collected stood the XQ. just kind guidance that rent driving conservatism? guidance. bound Is is kind a in just XX% end of quick at you something that actually

Mark Peterson

Yes.

happen. being we more they pay really because quarter a a had XX%, to again of outside because they're bit we So going to unexpectedly us conservative just our going performance, so continue. that's We're It of little a midpoint collected actually It's just deferral may bit if could That second being more of happen in agreement, pay more. the conservative us if and in XX%. We're couple paid little to there. their tenants QX.

rent pays it then their a more relative who tenant But -- a happen to normal pay one could also based and performance, had conservative according we're similarly. little they on being percentage base there's very also rent there. to a We so

bit in is, I through go QX then kind down up to non-theaters theaters will is what's of where similar the big kind to the think have go of a QX what's and cut going going to the QX forward. in little then is really for in really is QX kind increases. pretty conservatism, happen going start of QX up And QX when while all. we forward driving it you

John Massocca

was in that in is deferral looks can math so, would with XXXX when my if right. any of that a XQ, potentially paying Regal it partial if them? And kind Is with like color then to And provide end? you Okay. line rent agreement as

Greg Silvers

don't tell What their is speak is everyone any contractual we we John, paying to deferral agreement. agreement in accordance or you, with can particular lease. their Well, that

back I'll So and of to short everyone is comment attraction of maybe to this. pretty full the and XXXX. Mark, one on much rep their contractual -- of short have beginning that by tenant, I think But

Mark Peterson

plus, everyone over just everyone's to I the of your so I get everyone's it'll according XX.X midpoint, it's terms we mean, John, because question, be -- agreement seasonal is over were performing to back one is them midpoint. how the think -- preferring of But XX cash million that. a more in XXX%. we that answer to million the basis, deferral

second then unplanned quarter say, due I'd some planned was yes, during happened What performance. out the and got So it plan. to we was

think we than anticipated. I So things are better happening had actually

John Massocca

that? kind maybe guess, of to collect I Okay. yes, is out for of end And a the XX% kind they of what of range or And QX taking at revenue the given anything think about recognition I saying, going in high these of you're in like you're of some any collection little six you that that based bit events maybe months kind conservatism? just may credit QX. on kind leeway be of guess kind

Mark Peterson

collection guidance? about talking cash you QX Are

John Massocca

recognition cash XX% to revenue XX% that's even oh, XX% Yes, the to collection? Correct. XX%, XX% the XX% or revenue. to

Mark Peterson

Yes.

there's of then into on that up sides And they'll go jumps QX by lot just it driven it's have tenants and a of deferrals next So, theaters couple Through that there's both in fully that through equation. a and the not normalize year. primarily -- many.

aren't XXXX, a QX. So There's be XXX% the recognition of we'll amount in XXX%. the that at end quite tenants revenue at at small of

John Massocca

recognition? right? they do down XX% agreements, though, that assumes deferral pay continues may their per my XX% Let's everyone to If nail recognition, like they'll get that question revenue revenue

Mark Peterson

they're right? cash to that rec pay, guys a if to and paying So for and guidance possibility if early cases get that. XX% of rev quarter, our we XX% basis XX% is everyone going these continue. some pays the could for then Well, If there's in last above

So to end of by the XXX% it approach our the year, could XX% start to but be guidance could XX%. is --

John Massocca

just bigger picture. then, And

streaming guess, continue of kind kind some seeing simultaneous that enough robust are or a other office say from service be you are you if your industry Let's have of theater PBOD theoretically a siphoned place in that the about Disney are kind box the of into coverage may Access studios? off that or Premier given you of leases one Plus for equivalent thinking streaming of would to standard, of kind how properties? coverages becomes I

Greg Silvers

Yes. that first we'd earlier, challenge would what we assumption. I think based I mean, again, all of said we on

on more seeing it's now. Max really market that demand. Disney whether or This last premium their you're think isn't and that more I video there one HBO MGM for from evidence is

we the some therefore, think I challenged up in we half we to and of theaters into with that this gave of how theaters and we surviving ends close to is think forward. coverages, the are what even of mean, that we on our and maybe lower a come even theaters. box did we a well exact again, the office box of that as redirected of out have theaters those same to we see be about, talked information I of going we'll our And There exhibition all we So any -- theatrical are lower of as of best of lower -- office you are consumers first today the productivity country our best of we that perform there. But theaters proposition. that sustain how redirects and they're to because out some the if going could they're level. involving solution normalizing kind the about consumer. that how have the talk reason part go But the kind confident a to

Mark Peterson

just say one it is right, still was want XX%. recognition, what you're John. saying My revenue it's XX% comments said, Hey, to XX%. I XX% but where I to for XX% to hold thing. I to XX%

you're end some normalizes high next QX. But is rec, fully year. deferral right. into XXX%. XX% we're still the So approaching It rev for There's

John Massocca

today then a And to that of today kind portfolio? broader Do or coverage one the last question. -- this ability the coverages Understood. follow-up, kind much cover on visibility any into theater quick have pretty we portfolios open of have now fully you

Mark Peterson

very at look it's Again, today. difficult to

item. again, picture of you kind look just at if think big a I

If look comment this. to you and let -- on Greg I'll at

billion, XXXX about XX.X. a $XX $XX.X billion, you kind If think being of

Greg Silvers

XX.X.

Mark Peterson

got number XX [ph] XX.X $XXX you you've sorry. the million around month. XX.X and think we said, is, he a and were

million close a $XXX numbers. you back basis to those project months on you of standardized If kind get

now, are So where theaters at months to reality unit flow all cash are cash beginning to but basis. the to not on per be neutral equal, or a approaching are we run positive is a rate flow the

John Massocca

questions. Okay. much taking That's for Very helpful. it me. for very my you Thank

Greg Silvers

Thanks John.

Operator

questions will remarks. am this no speakers I closing I call showing time. further at turn the to the for back

Greg Silvers

And today. and you. you everyone. Whitney, Thank call. Thanks for look us quarter to thank we you, at our to Thank joining all forward you talking third

Operator

concludes call. this and you today's Ladies gentlemen, Thank for conference your participation.

You may now disconnect.

EPR Properties (EPR) 28 Jul 212021 Q2 Earnings call transcript