- Earnings call transcript Q3 2022

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Operator

Good day, and thank you for standing by. Welcome to the ERP Q3, 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please hand over to would now first conference to like Mr. I your the speaker today, VP Communications. of Moriarty, Brian Corporate have you the Brian, floor.

Brian Moriarty

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

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

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

call over Greg I'll turn Now, Silvers. the to

Greg Silvers

earnings quarter consumer amid Good Brian. healthy the this earnings demand call quarter, as experiences third provided see resilience customers In XXXX us Thank customers. businesses we sustained by you our today's at we to And the joining delivered third growth our continue morning, webcast. thank on for you, everyone. for

demand yet rent from have we on reintroducing Today meaningful pressures. impact disclosures. inflationary Additionally, we're to also see any coverage

highlight, portfolio. the recovery will we theater properties, of baseline our Greg As this of data while strength providing our for the believe a non-theater demonstrates

recovery taking pre-pandemic as rent coverage the Even still our above shape, is is overall level. the XXXX

coverage on theater consumers films economy. as demonstrates in that coverage and schedules, introduced see anticipate up that studios properties theaters their the Our support ramp well. to want which experience we strategic In we focus improve our will XXXX, as production

tested experiential pandemic, set. could and prudent broader the capital and variety foreseen the of throughout we have and we capital been XXXX, of we positioned we are While properties be as access by severely as pursue Everyone intact, properties with economy stewards to to and discussed are highlighting aware alive gain markets, properties painfully is the our of have have thesis its is within believe of set our is target to the uniquely deployment. disruption in job a not the our by would so experience evidenced well that our remains investing today and

with we to will As rather opportunities, decided of cost we've discipline in earnings a to term Rather, near investments. capital. current our of our demand the moderate given moderation will reflection grow our fewer not response our result, conditions, to a is larger. in get simply we growth This accretion increased not

line flow, support our investment without generate spin combined credit which We investment undrawn more credit. of a with sacrificing grade cash excess continue significant to our will limited

the turbulence Cineworld restructuring the stock that create price. have combined our and clear it's broader significant dislocation Lastly, a to market of

covered paying by levels, our even cash discounted that significantly we as stock price well a flow. free current relative supported Our is dividend historical are earnings is multiple to

appreciate focused our return over the on a on shareholder to pursue with investors we total are the strong business. fundamentals, the who we remain term. forward we We support and delivering resolution fundamentals look of our long Cineworld, As the focused of

I'll it Now to turn business the detail. over Greg cover in greater Zimmerman will

Greg Zimmerman

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

quarter our the spending During of additional an asset. investment was $XX for the project of a spending portfolio, experiential XXX% financing and for million, existing an was and included the acquisition redevelopment

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

Our XX the economic because and To provide of and we have conditions. resilient there destinations and from for compelling and the continuing in that increasing to our inflation impact not end uncertainty prices, properties challenging they value prove broadly, XXX% event will be case concern possibility oriented value of this families. meaningful drive will Well, quarter macro seen around proposition operators inflation we recession, comprises education gas date, our is at with is our the of to a on operators occupied. believe portfolio the eight be was the expectation or a

is COVID, As which on our coverage portfolio August period of slide. to and noted stabilization we trailing June except recent coverage recent most noted data. data is after as the quarter, disclosure, be with we compare for reinstituting last April ski helpful thought is a XX-month are our on The which a based attractions most it would

for Importantly, times coverage portfolio trailing coverage X.X XXXX. XXXX. for is to overall compared exceeded portfolio months the XX times two overall

is In $X.X coverage period. month billion in Box office. the was with with for times trailing-XX X.X Office same X.X billion theater at coverage times $XX.X XXXX, theatres, For box

month times our of For for X.X XXXX. X.X the is coverage non-theater XX to compared times portion trailing portfolio,

billion billion. tenants. update first operating on the our North American office Total box $X.X the for box $X.X QX total status quarters I'll of office three was you was Now

the Our high-quality theater portfolio continues to outperform industry.

billion by and Thor our Dope since month led Rise - Thunder, was on at XXXX, and quarter Top Gun Elvis Maverick, mentioned As - The highest July of [ph]. the second $X.XX December call, Minions grossing Gru, Love

II since no million. film QX to Wakanda The announced Avatar top $XXX and the of - take shape. August on tentpole each Water XX, due $XXX box filming expected is The Aquaman results of Man muted, product, with Mermaid, three October by Forever, which - of generating III, North November with XX. Dwayne opening The anchored titles, Marvel Adam office Little has five to grossed slate December exceed were opening Guardians million beginning XXXX releases, XX. Marvel Black American Black The Universe II. million lack Galaxy include Captain Way As of is Panther Ant and major releases which in the and over Wasp, September could $XXX Johnson, and

benefit ages to a they theater, of see recognizing big there to all on will when want the production theatrical see of the consumers we screen. are movies films and returning improve. more demonstrate results year's the this are post-COVID, supply As still to run, studios beginning films are confident With economic good

previously in XXXX, bankruptcy for for protection Cineworld District United Southern on the disclosed as X, Bankruptcy file States September the Court Finally, of Texas.

our payments. rent, been rent, November along have rent the we did or and not This receive deferred headlines September October entire did payments November week, deferred While September the and we rent there in receive other with have have bankruptcy Without mentioning created settlement suggesting Cineworld Cineworld's lenders. landlords with any with to Cineworld. specifically, resolved we about and landlords and EPR discussions appears this the press reached impression leases that its that a October

of included with landlords, reached which of or phase debtor limited possession of improved settlement financing, referred kind. agreements the are DIP approval by Cineworld and media was $X.X the early for in several other While we we to modified in Cineworld's not and landlords. have any speak discussions sought The by any to can't a billion protections the

our of to a leases, portion ongoing, September management other beyond address operation issues and bankruptcy In updates, post-petition addition, properties. stub rent months. the Turning landlords those Cineworld did This the of of will rejection its update is settlement regarding Cineworld or the not major pay over future future agreed customer four rent assumption groups. to unpaid an now comment Because or we about process on not

drive portfolio eaten see XX% XXXX. cultural revenue segments up of across their destinations and of QX to value over our EBITDAre QX EBITDAre much consumer up through continue strong assets up portfolio attractions demand attendance post-pandemic And oriented Through all continue We and results much to with performance XXXX. over good our ongoing play X% are and

with the coming in the Villages of the Vacances performance and recently openings of our will Canadian with Waterpark. Hotel pleased Parks, Calypso acquired for particularly begin Construction Ice weeks Valcartier January are hotel We scheduled that Glace X.

a and reported we We Based ADR continue to growth season. are past ski extremely sales, continued good at strong see Resort. occupancy anticipating solid Springs the season on

offseason lift across our experiential replacements assets. five portfolio During growth. ADR were at the continued of Revenue our lodging continued with growth completed

in the of Forge, Tennessee but prepared of successful and when in for avoided renovations second Palms enhancements opening camp at the at Beachcomber of Hurricane in Margaritaville grand Warrens planned any seeing at Resort. Bellwether past are both phase RV Ian's damage. Cajun properties, uplift Beach. We lodge our itself are St. Park shift our Beach Pigeon impact significant the the We the making with we We from Jellystone celebrated RV the progress our and Resort and Resort

with of which of as tenant, acquired Kinder the in the early childhood In continues this We by enrollment assets, XX% EBITDAre [ph], enhancement. our portfolio. Our credit XX portfolio view education across and After education in year-over-year positive education to Crendal the perform childhood our close early increases quarter, well of XX% a operates XX% revenue Crumm was Care.

capital on recycling. update quick a to Turning

we a land million the recognized quarter, and vacant net vacant and sold gain two proceeds of parcel combined for During of a theatres $X.X total $XXX,XXX.

XXXX. expect of our contracts them and of vacant executed theaters two for have or in three sale to close We XXXX remaining

parties the We on multiple continue third discussions with theater.

of invest transaction. and $XX EPR former for in a our originally million During Marietta in next as leaseback investment of Wellness quarter Springs into Angeles as the operated and Diego. San sale Marietta, with acquisition Colorado. in was and on a for developed a million over operator redevelop Pagosa is in another the brand midway our $XX existing We The Los successful partnership between buildings two very Center. Resort. approximately $XX.X XXXX million. approximately in new center Resort California Hot the Springs natural springs, hot In Hot spending Springs, closed the County has the many asset Resort will years to conference Riverside a Springs years was a

of premiere Alaska. approximately Springs financing quarter, the Resort As is land we four-season our discussed we on on additional also million closed the in $XX Alyeska expansion additional acquisition in call Pagosa in for Springs of EPR Resort After $X.X the end quarter's for on the approximately closed Girdwood, the addition million. of an quarter last of QX, to partner an as in new for years million provide indoor expansion for mortgage fund $XX closed long-term over the the invest an after million committed And we with of to expansion. additional up approximately next financing an end, existing in to a finally, the commitment on to of the waterpark, again, part two project. a $XX

new more long are of pleased We should Cap value. about And we'll pipeline announced create our made achieve around are diversity with through We've coming COVID compelling excited rates project. share the details and investment the publicly the has we will partner substantial out progress opportunity. cadence on XXXX investment beyond. pandemic. X% after We're the term and and

and a lot funds for play the tend And range acquisition, timing high a expansion updating attractions, several for fund $XXX to projects redevelopment build and million. seeing We're categories. eaten is opportunities there guidance QX, commitment. funded years. projects By of our many development spending of new capital deployed are lag of in redevelopment ski, we over to deployment have to a expansion to $XXX experiential of over their after $XXX health a and in Through refinancings quality suit million nature, for million result, experiential stretch projects investment and end as XXXX We lodging. wellness to and our and

XX, funded. with that closed yet addition, transactions that In October through not have are

years. have an projects experiential million additional development approximately and committed over for to the $XXX next be deployed redevelopment We two

from operations revolving facility. Finally, given term fund consciously and unsecured primarily capital credit investment cost borrowing investments near economic to to our of decided and have spending, our under from with reduce inflationary availability our our environment, those we and current cash the

to of are capital future economic until focus conditions returns We the with redevelopment come is in for levels. being pipeline turn restarted the capital on it in they to we XXXX discussion judicious investments over increased and investment as Among fully and improve, now positives more and of to revenue acquisitions development, our as investments XXXX, XXXX, online. I shepherd of Mark financials. historical a cost our our

Mark Peterson

guidance. sheet the update I strong cents balance quarter FFO close and compared per quarter year. prior quarter was XXXX adjusted Today was $X.XX in Greg. financial and you, will year Thank per in with for the updated our AFFO discuss the $X.XX for performance for share $X.XX earnings versus provide the prior on our an to XX share the

quarter from previously certain to moving key be versus prior in the received revenue million variances, year. total revenue primarily due Now the was million improve basis $XXX.X collections abatements. increase was a This to tenants had for in on the recognized or which continued to cash $XXX.X

of scheduled year. As for increases and July effect This rent was increase deferral the mentioned, and payments as dispositions. rent Also and the did payment developments rent or to but Regal, we contributing not all receive Greg the was received offset well for quarter the the property as the past of to as for over the acquisitions August, by we partially impact deferral increase completed September.

except all mentioned. interest deferred and million balance deferred our basis a reduced deferral quarter, Regal collected rent accrual scheduled, that $X September of I $X.X receivables, million. third the rent that We of leaving September tenants was and payment on borrowers as that XX collected During from just books

expect $X quarter. this million in collect the fourth approximately We remaining to balance of

and $X.X owed from XX, our cash million quarter, guidance. deferred in to million revenue million had basis customers that not rent receive were included the us collected we recognized and during deferred $X.X Additionally, we $XXX were rent which September subject this to At the on bankruptcy on Regal updated interest and will cash the which approximately not of and deferred approximately is that cash of continue guidance. will of more of is million as up recognized be want continue our Greg basis I to balance to mentioned. negotiation received. $XX books, collections different provide makes as earnings only review

quarter previously. the Moving Percentage prior This percentage increase higher rents that different to year by Mortgage to for base for million million in has other by the Waterpark, partially properties recognized percentage offset stock from basis was the respectively prior our on and had of $X.X $X.X rents due versus on, and & in early Golf was less year, an to quarter prior year. Indoor $X.X professional million the and in Kartrite prior versus million financing in tenant cash increase benefit theater improve mentioned The of $X.X totaled $X.X million costs, increase decrease education restructured Entertainment other we performance fees. a $X.X from and travel $X.X tenant million an G&A rent versus higher primarily I year. an The Resort collections rent and million in million based payroll due we borrower and amortization, the income related other to expense income versus operate. expense due which a from primarily expenses increased XXXX. was lease including higher as well as $X.X

Jellystone to in of in in $X.X Park the new RV ventures joint the And from purchased Palms investment RV prior adjusted the was to Wisconsin year that of XXXX. primarily was due in versus our performance August FFOs $X.X Lastly, investment million. Cajun late Resort Louisiana. increased our by million This in

next credit company's Turning the the some I'll to key slide, review of ratios.

our see, X.X strong coverage can coverage coverage times both you ratios interest times. fixed to and X.X with continue As charge at in debt at ratios service be

basis book our assets Our gross net times and XX% was was on debt at EBITDAre adjusted debt to XX. a net to X.X September

with Lastly, the an of third continues AFFO very payout our dividend to XX%. well quarter for common be covered ratio

$X.X blended which sheet swaps been coupon that X.X%. to shape. of debt billion, a let's or is all quarter fixed we debt which At rate Now consolidated either is approximately in move our interest with great through has rate of debt end, a had fixed balance of

is weighted with balance Additionally, our had hand $XXX average no maturity debt debt at scheduled on until maturities cash X.X of XXXX. consolidated We years no drawn our over billion revolver. $X million on and quarter

from XXX for are midpoint. a our range at to $X.XX guidance share to XXX the We of reflecting of adjusted per revising FFOs a XXXX, an increase share XXX, XXX per to of range

year $X.X already per guidance per the the of bankruptcy. December $X.X payments Regal as for month upper included payments for non-Regal rent of deferral for midpoint from portion other regarding customers million from reconciliation The September provide deferral received. received of not be ever non-Regal our per increase of of midpoint revised including only background, December. guidance cash customers uncertainty and basis it'd among collect a adjusted from month end the pending October, As the the the of our payments With lower Regal The of from giving guidance of Regal received potential prior Note that million I collect in a to reflects additional for rent November guidance to December to for and as per approximately the deferral of other includes $X.XX for the that million end. Accordingly amount Regal before and midpoint the included in and tenants from slide, end timing of leases well payments things share rental we shown QX $X.X $X.XXXX. month, reflects policy at on of things thought $X.XXXX Regal FFOs midpoint October-November, to if helpful is among full the potential from November. and October its and for to guidance,

year of midpoint to expected properties, is in nine of Note per basis been QX that not you Regal share collections due offset for the customers, can certain attraction also deferral is increase primarily an FFOA cents to our rent. QX an rents cash similar guidance is see today of by QX additional guidance, received of all the from for QX. the which As and increase from implies has that $X.XX plus for including on prior slide percentage $X.XX for from that September the in

this While by expected offset and additional losses we minimum do primarily percentage rent rents joint higher to and expect an managed QX, seasonal our Regal for be properties of month ventures. is at

Finally, $XXX due range finding deals of $XXX where towards we guidance and risk $XXX million a are million of development we $XXX a to of to spending more better versus investment skewed being mix acquisitions. million. reducing to range million, from redevelopment, the primarily are returns for is adjusted to our This

that of as we result, a closed of experiential over redevelopment $XXX years. the As projects couple fund and XX, million next have on expect approximately commitments October to of development we

balance our to supplemental. liquidity, cash as well Page significant our generation, the these sheet as anticipated XX our details need of not do and to additional Guidance Given strong fund found flow commitments. on can be anticipate we capital raise

that, back Greg for with turn to I'll Now over closing it remarks. his

Greg Zimmerman

Mark. you, Thank

As our to quarterly headwinds performance economy indicates the despite the perform continues experiential inflation. of

Overall, company by we is had recovery coverage quality and investments. results levels, exhibition the XXXX rent we driven now strong very with quarter pleased non-theater productive our be primarily with a Our business. portfolio continue and the above to of

Greg future we of the capital markets. investment discussed approximately backdrop with our given the we As challenging are yet in $XXX pipeline, remain of depth again deployment capital our commitments, of prudent million demonstrating

confidence up ability questions? grounded that, With the is sector, execute open our Our for it our in I the don't strategy. and resiliency on of experiential to why

Operator

Instructions] will session. Dennerlein from Our conduct At you. at a time, question your this Joshua, ahead question. [Operator first with comes Joshua go Thank BofA. we question-and-answer

Joshua Dennerlein

the know Regal assets. more any kind I and can of a discussions kind morning, and and your the share you're risks with little Yeah. don't on share about bit wanting if how more of thinking to bankruptcy you everyone. I'm there's of on Good kind

Mark Peterson

a an coverages We've open process, that it. our and to until feel we an later. good that we're It's is industry rather discuss. process, about able everyone's not part just and in said without as to appreciate it. of portfolio, like were average wanting details legal know sense in engaged. on were with that us Joshua, It's that to sooner indicate this And this not the that have wanting line really actively that something not we concerns we Regal really this recovering. I above further considerably questions for more resolution partner before, than we're being of -- it's the negotiate

Joshua Dennerlein

any Like can be long details timeframe there Is like some do on? we take? able of handicap way of might hear like how kind further typically the to you these processes that kind

Mark Peterson

in the there of expeditiously Again, Again, has I bankruptcy have we a as lot been We debtor share a love that to will landlords side got commit really on. that a can. wanting as capital, of know a both through. situation, get anybody and as their can the on they their clarity of if has this we not our with that glad resolve as involved But number to we tell what need defined to control significant I timeframe, think going to would through. that. lot we'll you sheet well they're you, is landlords with tell work balance but are we're interested said, that as parties, you be they've is on more working in I And to they work I before

Joshua Dennerlein

about coverage into lag. one going should how know, and the a on think guess it's and on just based we August Because further to I XQ? I September? it's, that dip as we quarter commentary Okay, Is head

Mark Peterson

to was unless Greg billion, is I kind is this. That and this XX look say of quote and trailing think if based industry this to about, a I'm $X.X you it going months. upon

for higher. people numbers, that calendar month most think that should year than box XX that will so higher it think overall be be I the office

we're So pretends now. right showing But to that what than Greg? better hopefully

Greg Zimmerman

absolutely. Yeah,

out I forever that getting the higher. if extremely strongly think the you Black are and Black - at Wakanda will gate And overall opening, films reviews. Rev is of box Adam be look office is Joshua, Panther three performed

the end strong year. really of So we anticipate a

Joshua Dennerlein

Okay. in guys. Thanks, queue. the I'll jump back

Greg Zimmerman

Thanks, Joshua.

Operator

Citi. from with go your with ahead comes Joseph question Nick question. Nick, Next

Nick Darrant

morning, Thanks everyone. and good

the X% is Joseph So think now. yields, those Nick you question on mentioned. right it's I actually Nick Darrant And for

trending And in that that that then is portfolio? 'XX how any in deviate whole does X%? verticals and there's across the the So from specifically that specific experiential if portion,

Mark Peterson

you take that. let I'll Greg,

Greg Zimmerman

Nick. Yeah,

of of may over cap slightly be And verticals, and sure, slightly think may not some be economy the think expansion as any that our meaningful I verticals, we're rates our all some cap in and in under generally we're that. don't any compression that seeing investing again, rate, down. slight we're theater. seeing slows across any the X% I for it's

are So our portfolio. experiential investments we're education, so in all of our

Nick Darrant

you just your then, given changing capital now. if on are that be on right appreciated. on underwriting assumptions sort guys we And Thanks. future stand commitments, color where Any would of

Mark Peterson

think I'll comment, as and well. I let Greg

think conservatively. always I we were trends. you underwriting think we the never really Again, we to approached very into took our revenge we've of bump these spending, it consideration the kind whether of long-term what call

these there's I XX But challenging go think more XX always remember, add into as tinge probably leasing you we years. a to we're a generally conservatism. environment, for

So you're cycles. time at this a in multiple over period prolonged economic looking of

you always So underwriting deviations from and your those/ have at going want to stress to that you're standard look mean, But Greg.

Greg Zimmerman

that's think I well No, put.

Nick Darrant

Thanks.

Mark Peterson

Thanks, Nick.

Operator

Our up. next coming question right is

Paolone question. Next your ahead Anthony, JPMorgan. go Anthony with is with

Anthony Paolone

monthly rent can morning. the can number. good Regal, guess first us just I into to right we sure you a what back gave we kind know scheduled annualized And kind like of you. or there. kind per of of make But share, and just give Thank is? Okay. the on I figures a have rough you

Mark Peterson

month. about $X.X the was of regular previously in rent, deferral per it's million Yeah, terms million about $X.X payment and

Anthony Paolone

chipping Okay, think, in what away at? that Is of that that you I they to the that were said is? owed $XX that million that they X.X, relates and kind

Mark Peterson

Yeah, correct.

Anthony Paolone

got Okay, it.

the then into rest second, in to the for guide? year. with Regal. about regards XXX understand and of And thinking $XX to the guidance of just any the to swing difference XX guess, the I Is the factored Just that between million want it. the factor related

Mark Peterson

referring to? Sorry, I'm number not what you're following,

Anthony Paolone

said-- Yeah you 'XX. Yeah, I think

Greg Zimmerman

you Tony, Yeah, what's if out a in guide. you and guide, slide if look at the what's Mark, really good the people I of in of job telling thought factored I the think with did see

deferral the December is but So rent the for in, not in. is

Anthony Paolone

Right.

Mark Peterson

you're I understand what saying.

to We out. thing. expect tried about you're added XX whole Yeah, the and we XX talking that the and lay the

end on because for said not them regular the the then not slide, our deferral in Greg day. December regular but October deferral include payments November to until and have subsequent we with As we payment payments of where is are and policy hand. deferral rent or, guide rent the the to got that the respect to in

Anthony Paolone

I understand. Okay,

Just sorry, I just Regal. probably clear, beyond wasn't being very

might is million just outside potential you that the with the contemplated Now, rest that other guide sort None of in now. of the of correct $XXX deferred Regal. right rent, of

Mark Peterson

right our that see include ,m There and part slide, a midpoint. $X.X deferral from that's basis guidance, of did same in online. for million million another cash below below already we've October deferral you the upside in the So could non-Regal on $X.X received. slide, that be a not November We payments. you that's the see payments the December, the non-Regal But right that's right, that on $X.X

Anthony Paolone

it time. kind said, of sort was Okay. you'd this they started, reasonably and spreads. Got disciplined it. long pretty they've But also And ask of that at yields a then been for just last question, mentioned just aid bid, you then

spread or big like, is half, capital? like, now is of, So for deploy or to Like, -- would just wondering, right that you you? kind is it more nine where get what how it a in

Greg Silvers

turbulent team the ability plethora we his deals will as forward. I feel good move our call beyond are, let would point, of as periods. Greg kind also see these a relationship on on where growth, and I negotiating it's Tony, are fuel transactions this We're we well. Greg that existing to of we and think what comment probably quarter really very future not but I tenants. we're move what as focused supporting at Again,

us our out product focused, as of move -- that this agreements access pipeline relationships kind So better forward, probably get we're, helps get get point, we turbulent this through not beyond we give we're as what on that next but either or relationship period? to quarter more of fuel

Greg Zimmerman

mean, to us Yeah. we focused bought Alyeska. financing And focus or Marietta Pagosa We Tony, either completely in with on time. partner in And absolutely our existing this conjunction in agree I important a on Greg we're lot I expanding new are building we more a relationships I additional Pagosa. that's quarter forward, correct. with think there's going relationships. year, of at did that's

Anthony Paolone

Okay, you. great. Thank

Greg Zimmerman

Thanks, Tony.

Operator

coming go [Operator question. Our James. from is Raymond question RJ. Instructions] next ahead Milligan with with your RJ

RJ Milligan

if at with and updated a and We Greg, the of comment theaters the theaters other morning. Regal good on profitability in Regal the in is the I running the levels above color you XXXX coverage specific in appreciate coverage or could was the rest those levels. country. information. for trend they're of to coverage you've give talked relative assets Thanks, the just curious about portfolio if that past, any least the

Greg Silvers

I the are is coverage above think, well, XXXX levels. all theaters Again, on not

clear. and to be portfolio. have -- of first above tried Let's all, we average an do Regal say think I we've is What

think people Regal's. we So we and think that and box predicted healthier levels. the them said on industry would was on Greg and is $X be we then XX theater outperforming better where we're levels talked even a at where average, were necessarily we things we what reduced most their message thought box understands XXX percent that at team one was they to landing of had about look think to how recall, they're back when points at you we of points yes, billion because were that's lot I there out. I they're I indicate that we like earlier to breakeven office. this I coverage at Again, office it of than in look at, to the that believe convey. that investors at percentage a business we're the we their kind I And also -- fact, these spoke And When as now, coverages his levels, think what $XX it's about than where and strength of if the probably understand showing were of portfolio not, in running the around thought a the portfolio. have we well at our to billion kind don't of to to to a XXX to being we wanted healthy XXXX. that these coverages get have think below

Greg Zimmerman

in number expect said full the And billion, X.X through year, as it low year. against its XXXX, times against earlier, for months do a $X.X an be the we to And billion And to box. box is RJ, the the publication coverage we XX office was XX. trailing probably is that continue X.X clear, times little trailing $XX.X the

RJ Milligan

some And operators retain out more locations? a from of series. one-off re-tenant, what about, there on then the or what's to national were basis profitable your heard we've on or demand ability to operators local these take it. the of peers from of just curious, Got either I'm some

Greg Silvers

uses, location. be set it's think really Greg talked I transferring his previous a Again, and we've theatres this we've off year, there's I job -- about going by decision I other to good non-theaters to selling and as mean, its for team think calls. location but to of done on

the for operators need going to just because of good see a be this model always is they in think lot demand theater, replacement The business this announcements most locations, studios recovering. there's continued films in to to is flow. of and I generate when well studios cash really to reiterate have the perform network's excess the streaming that by Recent that.

just before, has think a level testing we've about but getting ramping But everybody back power the to seen it's talked this through period production back up I of it. So Greg? as that works, and

Greg Zimmerman

is this model economically think week would for best only Paramount release that that's the right. is them No, reaffirmed thing to The theatrical I just I add that streaming. earlier

Greg Silvers

to Theatrical just release first. yes. Then stream,

Greg Zimmerman

With a window.

yeah. Sorry, Thanks.

RJ Milligan

Great, thank you guys.

Greg Silvers

RJ. Thanks

Operator

from with question. comes Michael RBC Capital your ahead Mike, question next Our go Markets. Carroll with

Michael Carroll

typically optimistic were or guys of you Does XXXX, delayed those a we quarter, things been being XXXX Star last we're that about that just know there's normal with just box being Marvel know out movies far the some think some for the reduce that How I reshuffling movie think Wars has there that we is kind I and was optimism Thanks. that? should delayed. about office. some Yep. of that expect, from released? should still, so movies given pretty

Greg Silvers

candid, XXXX year be Yeah, year. But still is in a moving I just of of see to into of lot never It's what a it's and great different I early will title stages how there's things. the moving look. a out big never a you kind think we're of think

getting still quickly But we've think So said think be It's that better. improvement. we there's can think I just gradually as getting don't in not there it's better. --- before, the I It's building

Greg Zimmerman

the Hollywood just and think And the up you'll pipeline. clearly 'XX I in continued Yeah, to that. through of take restart ramp time is I'd midst And say doing it's Michael. see 'XX,

Michael Carroll

we Great. do like mean, a can is tenfold there off it, I many how are type to for you way a about that way Zimmerman, I think need about see several or to kind Or know we good think good for good a be for us box a Greg that? year? this quarter a films titles. of highlighting, obviously year a there to that to movie is

Greg Zimmerman

down metric total Yeah, best we the is and probably year. are this XX% titles about probably

number increases, real will as box So the of titles office issue. That's that increase, title the increase.

Michael Carroll

in Okay, and I more one can there. just sneak

was number. I you know mean, about coverage have bands mean, right ratio several I I big EPRs that individual average those coverage around today? that talk tenants that average were historically, bit of that you that mean, around can little that So number? how I true I right tenants. coverage that line a tenants think is that is highlighted? that all your

Greg Zimmerman

as for little how XXXX the relative now, we're talked I basis -- we're the the it exact Regal same it coverages, is overall, in with there think fairly very on It's not that of we properties, it, least that specific like as we there's because now. is of strong. specific right a information I dispersion. our that again, way do and something is we'd is calculation did Getting problematic. all then But think into performance right Again, rather said, very, it's dealing a becomes at we about

Michael Carroll

Great, thank you.

Greg Zimmerman

Thanks, Michael.

Operator

from from comes ahead Thalmann. John your John, with question question. next go Our Massocca Ladenburg

John Massocca

Good morning.

Greg Silvers

Good John. morning,

John Massocca

clarify, high rent to deferral right. new of and that from the just So I end did range the basis cash payments correct. tenants, of of contemplates collection the guidance all

Mark Peterson

along that of rent portion part may September's we Yeah, get the a of That's the upside that's fact with a contribute to correct. we didn't yet. collect

John Massocca

I'm this of that guidance, cash versus about high contemplated of highest and end rent what the thinking in And payment number? If prior amounts deferral was prior guidance, kind

Mark Peterson

payments deferral had Well, basis were been no they unless received. cash deferral

Greg Silvers

the of not did June, June include did upper not contemplate we guidance, We and in through payments, lower and end of end payments our deferral counted in deferrals, okay. only previously, guidance at so deferral our --

Now will talk September, also if not third we're moved we October-November. to but including want end only quarter, with to the what about we through received, of we're subsequent particularly receive including quarter, just Regel's, we respect to because

our $X.X out get are since post really there's $X.X the deferral for that which Regal month quarter with a of don't month, of December. guidance And that payments we payment kind So the of to December one mentioned, guidance, a for we upside September million is now, dealing this and becomes but the our deferral in and I for of anticipate non-Regal for then year. this as yet customers the midpoint portion we getting, there rent could million

which well. in those upside. So that at a band, that properties that have, then and manage that high low, do we come there's that impact contributes or with to could the forth guidance And as the along fact the so

John Massocca

remarks, lease from initially be that is kind you investment if is Then bit, that at the operator that I or net in apologies missed or how going prepared structured? JV perspective? little that a are Just looking a the a Okay. investment in Is structure gears how of California model? investments to Marriott a but switching of that [ph] kind

Mark Peterson

Yeah, sale John, a leaseback. it's

John Massocca

very right, it up. All me. clears for you much. That Thank that's

Mark Peterson

Thanks, John.

Operator

final was question. That our

like now some turn remarks. would to I Greg Silvers it over closing to back for So

Greg Silvers

you, you, and Thank thank everyone.

you, coverages about that those the talked your remember, questions of non-theater, these a want and that lot XX still talking XX that go we've to about with about experiential For were well. to on kind properties I represents moving talked we resiliency we have theater met as I the strength, as of coverage about But again, we're time attendance. incredibly indicates portfolio. of reiterate, portfolio. today, appreciate understand our and that we our XX% doing and our And portfolio. of of from overall, And many

we with to forward your I So look and yearend that, attention call. at appreciate talk and our time

Operator

now disconnect. the Thank you in today's may does participation you program for conclude conference. your This

EPR Properties (EPR) 3 Nov 222022 Q3 Earnings call transcript