Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to the EPR Properties First Quarter 2023 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] Please be advised that today's conference is being recorded.

I your to Moriarty, first Corporate ado, conference hand Vice further Communications. to over speaker without would now like the President, And today, Brian go please Brian, ahead.

Brian Moriarty

our Thanks webcast. us you, call for Thank XXXX earnings Eric. today Okay. for first quarter and joining

call and Silvers, Chairman today's CFO. Executive Greg and Peterson, Mark Greg CIO; and President and are Executive on CEO; Zimmerman, Participants Vice Vice President

Act by include the may, the other call intend, informing XXXX, Litigation forward-looking Private actual company's as start this be may terms. condition you comparable such We'll call expect, by those of and company's in statements results those defined Securities vary cause reports by will or those words of identified that The factors to XX-Q. financial operations hope, as anticipate differ believe, from XX-K materially of including statements filings, materially on the that may in the Form are contained and from could such results company's contemplated the forward-looking SEC Discussion forward-looking statements. continue,

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

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

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

Greg Silvers

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

same revenue year per in and X% pleased highlighted in start share quarter total by year. FFOAA the are momentum, growth continued prior to We versus the with XX% growth

well through scheduled results recovery provide experiential from in the XXXX scheduled and of as from for of payments highlight further the also Regal due These have April, collected all of investments. evidence theme period. customers all rent our resilience the same We deferral due our as

a timeframe the restructuring from early entered support reported subsequently of Cineworld plan proposed emerge secured that during July. lenders and indicates that a agreement April, filed within month it its plan Cineworld in The the with into bankruptcy had should Additionally, reorganization. of

comment for the filing plan the negotiations, proposed timeframe resolution. defines While status of on the of we cannot our the

level, revenues, we in content up. continued production an the substantial industry growth encouraged box are by as At office ramps

are we both billion news Additionally, $X committing and a spend with to see year theatrical movies toward excited the of significant to releases. Amazon Apple

As theatrical we've this building of maximizing times, brands. distribution stated economics speaks many to firmly and importance the and

& ski experiential our reviewing we eat properties. sustained lodging experiential seeing our portfolio, In and highlighted play, are by demand,

coverage Additionally, see pleased above overall we levels. to our rent are XXXX continues to remain

allows that pipeline Our variety coming in deploy a strong we including a of liquidity across properties, disciplined in having position experiential quarters. will manner capital a fund us to the committed

additional we recovery growth and and durable encouraged the our a for outlook income are our stream pipeline, investment With by ongoing from year.

Now over I'll review turn Greg business Zimmerman to detail. the more the to call in

Greg Zimmerman

Thanks, Greg.

our At in were properties and $X.X XXX with XX% billion year-end, investments leased. approximately total service

of an was During experiential commenced acquisition redevelopment continued development property and and the was experiential million. spending of our investment in included our experiential spending the quarter, XXXX. and portfolio for $XX.X funding the in XXX% projects

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

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

proposition they provide we to compelling and drive-to-destinations are will value resilient. families a for continue Our prove value-oriented confident

month Trailing December X.X calendar times, the Turning be X.X is portfolio month times. $X.X trailing non-theatre for portion The our based the strong for is coverage with coverage year XX period. XX on times. at coverage. a most provided trailing recent to to months Overall coverage data box continues at for X of month for XX portfolio office XXXX billion. XX is theatres Trailing

Now I'll the update of on status operating tenants. our you

The $X.X of XX% Boots: The quarter and Man Otto. Chapter performance pleased total over Ant-Man and Tom $XX film, continuation was and breakout box the led and were III; acceleration. titles Puss was Puss office the Quantumania; with Bear. Cocaine in box also We quarter the QX Last Wick: of the The the Creed and adult-oriented a the grossed increase million recovery a Wasp: The had by: Wish. films XX Hanks John Called over offering quarter. in Water; Avatar: billion, office Way first QX Boots of children's X A XXXX, in

to second by highest Bros. an fueled at off a Mario biggest QX to-date weekend Bros. Its grossing robust turn the XXXX any of $XXX.X Movie, opening outstanding Super Super animated At ever film, opening grossing feature which highest The title as outsized start. is million million, Mario the ever. Led ever domestic film performance continues film performance the generated for for million. $XXX $XXX.X third-highest and five-day the grossing in Universal's at

grossed is $X titles box at Through and XXXX. $XXX have million stands approaching over Southern gross Year-to-date the office billion gross box past in office XX-months $X.XX billion. trailing weekend,

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

widely buzz exhibition and news from release, platform biggest A-List for $X title our that conviction around for Amazon reported revenue, the spend content The secure a long-held to to billion in Apple provides reinforcing and to create theatrical studios talent. theatrical drive XXXX commitment both create is the best

Creed ever the highest Matt debut spent Studios the and film. the weekend the over reportedly has million date. a Amazon Amazon million making released for was theatrical than Ben grossed starring service. more from streaming Amazon Easter $XX to film $XX Air, from on market over over and Air date. to at ever it opened $XXX million theatrical was screens, Damon, ever X,XXX Affleck grossing MGM's release widest III first to

Scott's before each Killers Apple Moon Leonardo with releases Apple announced theatrical of Joaquin Phoenix Ridley to Scorsese's that will Napoleon Martin Flower with DiCaprio have moving and TV+. the

the the box office supply these of films ongoing that the driving confident two we of With continue significant will American from release remain streaming continue for North services, commitments recovery. theatrical to grow, largest to

on an Turning to customer groups. now other major update our

We and all drive-to, across good value-oriented ongoing results destinations. to continue consumer segments see our demand of

with assets over strong their closed in same City portfolio up XXXX. Play and performance EBITDARM St. in months. reduced QX post-pandemic XX% continued over continued had up Titanic & QX period the or for are winter attractions revenue QX on in Museum the Eat and Our in our Louis growth Most hours X% museums of EBITDARM both revenue and attendance, XXXX. in

the are our and hot Murrieta, in new the a both expansion Resort springs Springs center redevelopment conference resort. Springs and QX natural of commencing the into We of Pagosa construction for California

helped heavy weather the Ski March were XXXX, through X% was XX% our across negatively the same Northstar, impact, late early XXXX weather season expense but including quarter. in in closures period season Tahoe and visits was end snowfall 'XX ski portfolio late Performance to increases, good. Good Resorts December was of the resulted EBITDARM up Lake up at revenue much and season of the our snowfall XXXX. unseasonably Despite impacted winter unseasonably warm had wages. Eastern by over

peaks to Room Pass at our Four at offerings, Season resort program XXX-foot and, suspended spanning two the continue just the bridges will opened two XXXX-XXXX renovations Alyeska season Veilbreaker the resort. Skybridges, Ikon the Alyeska summer in for enhance Alaska. join

at Nashville's RevPAR with St. destinations, upward Petersburg, resorts Margaritaville its both to in Beachcomber famous saw of all occupancy, continues growth and Hotel in all Bellwether the trajectory in Our a proximate we increases renovations metrics. downtown EBITDARM Nashville, and complete quarter. With

our end termination quarter lease XXXX la enrollment. portfolio last well, continues the education across June. year early education a Creme We QX XX% in the year-over-year properties. in in their on acquired to for perform and terminate portfolio the we call de X% with anticipated leases KinderCare revenue, noted increases school in late pre-existing Our those XX% through has and of us KinderCare Creme right intent at notified that would KinderCare execute to of of EBITDARM five

sale in assets. We and five to marketing plan have all the redeploy begun proceeds experiential for properties

a recycling. to on quick Turning update capital

the During a $X we event net vacant quarter, of former million. proceeds for main sold

on discussions vacant remaining our theatres. multiple parties continue We two with

was investment our million. QX, In $XX.X spending

newly Climbing very in commenced in in Vital real positioned we the experiential and climbing our constructed Williamsburg, strong lease In investment are gym continued with projects for Vital is Gym space. net Climbing the markets Brooklyn, estate. a addition of to million. redevelopment well XXXX, acquired funding triple in Both a second $XX.X development on

guidance $XXX million. funds to We're $XXX to maintaining deployed investment be spending our in range million of for XXXX a in

of capital. raise and our XXXX, to end $XXX over of midpoint of projects, have redevelopment approximately will As the of deployed at the amount committed that approximately be we which over need We $XXX is the million XXXX that QX, $XXX the an fund development experiential years additional the we range. included million the additional guidance of without to remainder and anticipate next two expect in million

acquisition opportunities range. X% the and are in be our build-to-suit and to continue categories, high-quality most rates both experiential seeing we cap expansion. XXXX, In In of redevelopment for

We and investments from continue customers Likewise, and our borrowing funding unsecured with spending good and and cash credit we continue the to under investment our reducing facility. availability have to hand, exercise our existing on near-term revolving discipline, from primarily operations new with a cash pipeline concepts.

As by several quarters, we recovery have capital, are opportunity. we of said for the limited last cost not of our by the

for it I a the to financials. turn Mark discussion over now of

Mark Peterson

Thank you, Greg.

up as the versus performance in had update Today, an quarter $X.XX adjusted in year, $X.XX per and $X.XX AFFO the of year, first another the our We compared for XX%. will financial balance strong quarter per XX%, share $X.XX discuss to FFO provide prior sheet. with I up our share prior on and results of of

versus was to basis. improve in due to for by revenue certain was customers, moving recognized continue $XXX.X which million from This be in million on primarily Now year. cash Total item. a revenue variances prior the the line to increase the collections key quarter $XXX.X

deferred once rent cash million recognized those all interest During again from as our collected the and basis additional quarter, $X.X revenue accounting. customers scheduled on from we and

as up At recognized the rent continue is received. million to had this makes will as $XXX be of negotiation. and million non-Regal the collected not owed us received April of Greg and is amounts rent also only we which balance cash as Regal owed deferred well. approximately already to books, $XX deferral and quarter-end, for we Regal approximately on bankruptcy full all mentioned, deferral in from April have subject to have Note, payments

a rent, totaling approximately recognized $X.X During we order, Regal's received September of that also million quarter, revenue. additional as the portion court was per

was increase the offset quarter scheduled to partially of the contributing developments well past by year. increases of property Finally, for year prior as dispositions. also effect the increase rent the completed versus impact over acquisitions as was and the This

quarter and restructured percentage to the rent in percentage year. year timing recognized the prior early tenant million less for $X.X related $X.X versus based rents on a million rent in The other year. Percentage lease the certain education decrease versus totaled the an of from prior prior

due $XX,XXX we to joint Lastly, FFO from in losses $X.X park year RV they this the million ventures first more versus year the investments adjusted quarter. fact and off-season by to that as their decreased prior generate during have

had the offset In in addition, was Florida, government properties versus in our we prior more at non-recurring a lodging better year. year prior experiential this performance although the received than St. incentive income operating Petersburg, by

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

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

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

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

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

billion. is maturities on $XXX.X consolidated only and and quarter-end weighted at in drawn XXXX. had debt maturity average $XXX in XXXX our We million no our debt of on $X five cash no nearly balance years, scheduled Additionally, million due hand with

guidance Again the XXXX for as related to to due uncertainty this quarter, we adjusted are FFO not continued Regal's bankruptcy. providing

the this these We subsequent to of will proceedings. provide guidance resolution

primarily hand, we discussed to unsecured near-term inflationary limit cash from credit and borrowings of investments cash continue capital and facility. fund spending operations decided we our our As have previously, under environment, to have current on consciously cost investment given and the revolving our from these

XX do Accordingly, and percentage we capital provided guidance is supplemental. not details need be we found investment to amounts. raise and Page rent spending that additional of the Guidance are $XXX $XXX Guidance fund XXXX anticipate these million can range our to confirming G&A unchanged quarter. the our for from last to on million, of

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

Greg Silvers

you, Thank Mark.

As shared economy today, we experience its you resilience. demonstrate continues with strength the to and

theatrical the and of revenues well bode two to for power groups largest to streaming have drive Additionally, studios which content major We should further of all providers now the -- are theatrical again committed the largest brand and exhibition recognition. release, box office. of recognizing three of two recovery

I disappointed. bet the of you're those For think to on who cinema business, going death the be sadly

believe only diversified is a by that We of thesis focus the demonstrate we our take trends. supported their consumer offer advantage well experience, those for preference continues portfolio experiential to and to

why don't up open questions? that, I for With it Eric?

Operator

you. At with [Operator comes Instructions] first the question-and-answer session. time, our KeyBanc Todd conduct line thank question a Thomas Capital Todd, Yes, from Markets. you live. are this we'll of And

Todd Thomas

Hi, thanks. guess theatrical Amazon exhibition. about Good you first, to morning. Greg, Apple's I talked commitment and

they're in targeting As volume or Any in extended I schedule XXXX? little of just than sense it start And Is to content, tempo-type pipeline, lot whether guess, be see an these timeframe there? release you release larger sense of accelerate about will think more more we a sort the that? do on a any bit that releases?

Greg Silvers

think I We're continue is what looks excited that, overall about type releases more is traditional kind Todd, process, grow. yes, like back XXXX our numbers. to to of volume of Well, the thought very will getting

when year, XX say million talking billion XX they production to you $X average. you you're a their -- $XXX on think look I numbers and at if films,

the So, production. a Flower is Greg sure million will they mentioned, I'm -- as of Killers the $XXX Moon

some big there'll not sure production some going bigger, balance there, smaller, after be they have I'm clearly So, number. hesitated in some but from

seeing we're to the So, excited them come about table.

you anything do add? have Greg, to

Greg Zimmerman

and million, Air it's won't that -- with still would solid Damon Ben but I get $XXX date. a also over Well, to million add, with $XX to probably close film Affleck Todd, Matt

Greg Silvers

It's over the several last missed, type adult products of that we've candidly, years.

Todd Thomas

sort Okay. else you think does just payments. terms Regal, of expenses, disclosed exposure or be we model? not contribution in other the we operating might think expenses that deferral about? anything And considerations any when just that Any there's that in non-cash should then, other Regal, FFO baked that rent XX.X% to model curious include But Regal's the or items any of the from about if

Greg Silvers

for than to the was, think so I kind mentioned, kind Todd. Other don't the one to I the [be I would stub rent the] for (ph) that million of at out-of-period which on of deferrals really as quarter. think payment September point, their period, ordered this which $X.X continue that's Mark probably say pay court was

Mark Peterson

backed that and backed stub going and Yes, that that so, as XX.X%. up. it's $X.X about million, out But Also, the deferrals that negotiations of noted the and more where forward, -- on we out. schedule, and rent are Regal proceedings bankruptcy ends

Todd Thomas

pretty in clean Okay. move from it? a the to Regal's But revenue way we about should think it's of one-for-one terms FFO that's exposure,

Mark Peterson

Yes.

Todd Thomas

have perhaps few plays shape uncertainty situation then, to now, negotiating of million a there's $XXX once fluid like at seems again, investment million spend around of the And Okay. the anticipating sense to in spend balance is the is that out you're you on investment your sheet you've a emerge cost in how very But limited and capital year. have the some Regal? preparing a better It they're realize $XXX in clear good months. outcome. a resolution with and Are ramp for you handle and

Greg Silvers

of we Again, more on if competitive this, what in reverse of as our that's execution like a ability expansion of will we really aggressive the capital, that will that -- think if would cost to Todd is multiple that which I mentioned, I this get we we capital. multiple, pipeline, to once to Greg we really resolution of feedback and we happen have saw depressed that is we've a what would it's and a heard cost opportunity, is And us the hopefully think has correspond the have back, our that get it. more thing investment the holding that our of not think lot had

Todd Thomas

Okay. play should to locations expect from or I and Is it? that should And defined guidance an for an with the an how full EPR we a the around update for question, how or EPR, to have year? reinstate about there last company's a certainty guess X-K filed portfolio guidance we outlook for you, file and that Regal just the outcome mechanics be that, all for timeline surrounding Will resolution Cineworld reinstating then around outcome and should out? be we and expect that you'll thinking with around the

Greg Silvers

think I that be so resolution of our Yes, given a our would thinking to over not only go would conference everybody probably thinking why clear, perfectly the of up, probably this, on call the is importance but it and we that. ended it how have

simply So, be release. just press a I think not would it

importance this, transparent be we've the maintained given as on to through placing would be people -- this think all that I possible. important the are way it as

it why to. disclosure the kind to So I whatever the that why, have of a we're and get full resolution process of would think of behoove not but us only we that continue and how supportive

Todd Thomas

Okay, All right, you. great. thank

Greg Silvers

Thanks, Todd.

Operator

[Operator And your question Rob go Scott. Rob, open. line Janney from Stevenson Montgomery ahead. our the Instructions] is of with line comes next Please

Rob Stevenson

guys. sell Greg, today, than to still chunks there opportunity more more effective the that morning, we thinking be at about the prices, there cash the education comments reasonable Good cap should use capital to to assets of having valuable at or given opportunity cost flow segment? sell about is rates Is today? how an you portfolio could the your

Greg Silvers

I'll of it's kind think balance, is let Rob, comment. I Greg in. Silvers. jump be Greg and This a going to I'll

positive or raising a or very getting be thoughtful another can hopefully, Cineworld multiple, to impact And their feel we if either I we'll emergence way one little on think given then that a of way think one more see like close other. to the selling. or we I the resolution we capital we're to is have plan our us

don't recycling aggressively. probably education see have that little that, we'll explore a think if we But Greg? we'll I more

Greg Zimmerman

Yes. are five my Rob, getting market from comfortable portfolio. already we obviously transact. these education then those and the in And we're we're anticipating as marketing constantly back and fairly And mentioned the will we're that evaluating those, on comments, I KinderCare

Rob Stevenson

excess thinking then the you some maybe could Board or given buy I common cash of implied to you the using securities incremental as Okay. acquisitions? versus the what in even other any the sales investment And the how of preferreds on of of get making and/or days about guess back and are of these probably some well some this the yield from

Greg Silvers

I to it. people like kind deployment look that of at of what investment. an those is right kind every think discussions are neutral. again, at drive to Again, own in And you value. think your always not Well, back investment impact. therefore, of I buying it's leverage and And every we have most Board forget we But is what look in is discussion, capital the total the committee having about shares

consideration. are those that So, into are things all taken

Greg Zimmerman

with when that improves, to relative can is relationships them just more, thing comment them we do other diversify get we with tenants, for more our we as exposure that, on portfolio, important, our there so reduce our on ongoing cost other and programs because to basis. with The we our and them. capital secondly, invest be of continue And several to we maintain theatre side of even have the we to a

Rob Stevenson

to are accounting? And helpful. hitting Mark, the Is close normal accounting? last And how that's so, on got back where for AMC Okay, it we cash to reverts basis while accrual still point I've one then, me, if you.

Mark Peterson

they are any basis sheet. the off cash or on receivables still accounting. have balance They on Yes, don't

office of monitoring situation performance. want who on see far Regal and, monitoring getting nice We're undergoing credit course, back We're from accrual, of box AMC is recovery. bankruptcy. emerging as continued really that. is As The a to the

to just this we office So, credit make and that see the think box recovery we continued sure any out, want play moves. see make before improve as their I see improves

and much analysts From recording difference, straight an at would look most point really make be more of AFFO line of difference kind view, doesn't some the flow. cash rent it because

a start we're line recording rent a line entry. rent rush an straight to not So, even a or initial in bunch straight

on our of at kind look So that's that. we how thoughts

Rob Stevenson

than the stuff so off when Okay. anything basically is as off it people else signaling I off of the the mean, are looking moved cash to I accrual a -- stuff. impact at as maybe not watchlist, think AMC more but

like event sounds this point, say? it so like that at 'XX than would more a event a probably And 'XX you

Mark Peterson

the which issue approval, subject to Yes, ruling, they're is about talking AMC, I'm additional the just going to court through equity.

we'd like to of their debt. and see course, So, that reduce

I with we're that. when on prospects issue So, have their we think capital and part to the going forward. Hard predict monitoring some to exactly office but happens, improving that box good ability that

just have monitor to we'll So, that.

Rob Stevenson

appreciate Thanks Okay. time. the guys. I

Greg Silvers

Rob. Thanks,

Operator

Wolfe Thank you go line very much. the Eric, line ahead. your our open. next is Citibank. Instructions] [Operator And from with comes Eric of question Please

Eric Wolfe

questions. Hi, thanks my for taking

of structure First sort do those And up gets do some assets? cleaned sales question, afterward to sort will I'm Regal liquid for just for you theatre it assuming proposed, you takes that be of there I as the mean, just of of market what market think more assets? capital a think get general, a these little some in

Greg Silvers

the what is think we're seeing generally I recovery.

no think debt name the reduction because what emerge see we'll a better Regal they proposing in there's doubt they'll credit profile have that if dramatic they're this is liquidity have. in from a better I and that

that against will guy probably to think had in up. we a backstop an begin you'll be or as to I ramp I issue to changes balance so, as box company 'XX think industry the more you office continue had much and there's will think think to levered a improving believe market, an interest space. that then that I there'll the problem in themselves, a narrative liquidity. sheet be a were if there continue It better over -- from And see And

Eric Wolfe

And quality assets, range we your look of what coverage I should Should say sort theatre would I of of we or of think everything quality? of around of consistent being levels own as guess, Got there's that wide to you look portfolio, mainly think in do primarily of we one. sort I about should quality tough within dense And to? mean, the certain it. a A then, sort sort market you guess locations? different

Greg Silvers

as not not it's it's say wide people would -- I as as diverse.

markets generally not in and in markets, I major speaking, think more secondary markets. rural the we're we're highly really

So -- about U.S. those of screens the things when XX,XXX it's The in about I there's matter. think, talk one people XX,XXX the XX,XXX of reality, always to

XX,XXX across Eric, have we you're are alignment. And small of the if in The -- towns meaning that driving of to office. exhibitor, America all those, high important studio also really something box always that's but they is have to numbers, one other top-line and the looked a what don't you that's no grossing, that affect at lot important not only it's

So top-line success a revenue has of metric kind theatre. always generation been a key of for

do you have Greg, anything?

Greg Zimmerman

Eric, other say X.X% theatres generate the I office. would and say box of X% we that there are middle that repeatedly of we that well. of plenty I And extremely the add, the Well, thing cover have also is would as theatres market

Eric Wolfe

Makes just question. sense. then guess last I And

of capital sort sort just you sort of a non-core grow? help a how of of there's the Regal. to sort sort equity areas I is allow non percentage of your try to not, any multiple mean, and around would or the cost that theatres about the sort of off I other portfolio, spinning that's to think improves thought of improve portfolio achieve resolution of you simply the As if hopefully there of after whether rest -- guess

Greg Silvers

look drive ways diligently. makes task, that, anything I very not job the to looking purview. their that, our on Again, shareholders. part always look I think think I value create any but comment at the will to Board's if we're but their we're value. think only mean, job sense, Board's don't going I at. we to I to that's have Yes. is to And of And and it do it to we at avenue think

no we now. comment on Just that have

Eric Wolfe

Okay. Thank you.

Greg Zimmerman

Eric. Thanks,

Operator

Securities. our Thank Please question ahead. Joshua line BofA Dennerlein next your question. is open. for next And much. very Joshua, go you from Standby comes with our

Joshua Dennerlein

Good everyone. Yeah. morning,

Greg Silvers

Hi, Josh.

Joshua Dennerlein

just like the of the is Is it kind they brand, reject, negotiations. focus? that what you those or guess going three I scope I of negotiation? -- on just were mentioned was the or kind on -- the originally is leases of of kind Regal what it to curious

Greg Silvers

easy all the say, guess thing I above. would the

I could but of that a think I not wish it's issue thing. there's you -- tell it's you... on, one incrementally Greg, that we're I part one

Greg Zimmerman

No, We're resolution. trying to come just it's holistic. to a

Greg Silvers

a that like position of who's to in and and moving leverage kind have a have we'll It's see. They and everything. we Yes. position,

we comfortable with approach. the approach box I market supporting our We think feel office growth. very with is think our continued

I the So In see. reasonable. create is we to reasonable. what we'll think we're think Invariably, think we've tried a we end,

our that. don't with sometimes And agree thoughtful is But holistic, necessarily they think we Greg and approach as said.

Joshua Dennerlein

Appreciate that. terminate mentioned that? they'll what's in to that guess moving but And I then, over KinderCare, driving maybe weeks, you five [indiscernible].

Greg Silvers

entity. things, that. of lot is a that be another buying there's think can Josh, I into I remember mean, KinderCare really about

in set. number market? talking on into go year-end -- that the kind took. about, lot think -- last at to vast sense? there's -- substantial they things call as we What multiple So, store they're of we how transparent. there's I have wanted be I stores Do very we said, they makes what were our this same number a want they announced their So a we of But think because rationalizing

So, see I do think ability this behind and that. the to you is major what they any activity had M&A

a in talked also will our (ph) next reset Mark about coming into think allow [rents] we the As kind have which move rent last higher. of us to kind quarter, I of we think year,

then use investment. proceeds, this all lost this talked that in drive we or we'll recover properties we as hopefully, some the have So of Greg to additional about, the of and from these selling

Greg Zimmerman

them. we're them on all interest of marketing already I we've as already expressions Josh, and mentioned, of And had

transact So, we're very comfortable that we'll be to these. able

Joshua Dennerlein

Thanks, Okay. guys.

Greg Silvers

you. Thank

Operator

question. the Okay. Thalmann. next Please line next comes stand And John, go Massocca please our ahead. of by John for with Ladenburg question our from

open. line Your is

John Massocca

morning. Good

Greg Silvers

John. morning, Good

John Massocca

think up years, of $XXX of invest to locked that kind the we what's over split million about property have next two the type? of as So, by you kind the rough

Greg Silvers

Greg?

Greg Zimmerman

type... property By

Greg Silvers

segment... By

Greg Zimmerman

understand. and my math the Yes. I head. I'm to trying Fitness wellness... do in No, just

Greg Silvers

play... and eat Experiential,

Greg Zimmerman

and yes. Eat play,

Greg Silvers

balanced. I think -- it is pretty pretty well

Greg Zimmerman

no cultural, gaming, no so Less yes. lodging, Experiential theatres.

Greg Silvers

No theatres, yes.

So, balanced. across it's group, pretty other

John Massocca

Okay.

of between split, we kind a basically, but and So, -- should eat kind experiential of kind what an of roughly even expect? of not even kind and lodging is split play maybe kind of

Greg Zimmerman

and wellness. and fitness Well,

Greg Silvers

and Fitness too. wellness,

John Massocca

and fitness wellness. Oh,

Greg Silvers

Yes, Pagosa Springs and Murrieta.

John Massocca

by mentioning Okay. we the it's rents That of for number, know about, makes paid just sense. by prior a I not of that Is And quarters. I'm you -- more it's a getting then going thing? you of mean kind but a kind quarter were stub in if huge of don't that kind there September, think was in receive as stub know I something is paid kind could sorry, in forward? one-time of a the that I increments. a of Regal rent

Just of all think that number of we they owed if an kind fulfill could September? to trying kind kind of expect to in additional

Greg Zimmerman

Yes.

So, for got order provided December one in stub quarter. and court three payments. this We four the

So stub the over. court ordered payments are

This those quarter, -- $X.X a deferred repayment. of was million, million $X.X million other receivable Regal, $X.X is those the for stub in $X.X that from million. post-petition them, the total about leaves amount from payments deferral and rent rent of was What

paid, upon we don't we'll post-petition rent that that bankruptcy, of payments, how gets So, amount but of resolution there's the the that's expect remaining. but stub $X.X see million

John Massocca

maybe end the of the some resort terms pushes coverage? off-season tenants you their look ski about that prepared properties' apologies picture, in and given But impact at I I the do Okay. the a And and how big I in then season, And of how those reserves? pulls ski weather detail if missed talked this performance, guess does remarks. guess bit of

Greg Silvers

in the was covers was much snow. again, West had think I talking especially weird we the Greg was too I think -- there this where one about is of what -- seasons

of the season but the it. it was things so out balanced So, -- beginning good again,

all seen similar So essentially coverage what was reserves we've and previous to years full. in very are

John Massocca

makes it much. you That Okay. me. sense. for That's Thank very

Greg Silvers

Thanks.

Operator

Our [Operator Instructions] next Please with (ph) open. from question [JPM] Germain is Mitch, ahead. go your line is Securities. Mitch

Mitch Germain

Good guys. Hey, morning.

over in we is about about so that Just or sort some guess of still just a schedule sheet deferrals. for the I you there think in recently time? I last talked owed? that quick it But about kind that's million mean, how $XXX coming non-balance of question the should answer.

Mark Peterson

Yes.

million So, the the of related. million $XX.X is Regal $XXX

-- to The all So about that yes, -- $XX a per the -- It's we'll paid that million or that we see that schedule you $XXX,XXX or got last quarters. $XXX,XXX $XX that what subject in month. $XX see most we're the how getting shakes several remaining of quarterly. million, yes, million, And bankruptcy. -- XX-ish to running that out that

that really -- that, through And on deferral that that's continues more that's on. tenant part it in The then So there's based. in to continues repayment EBITDA primarily. of addition is one largest 'XX

sort and see So in, -- it's EBITDA to subject how that schedule. that how one the a shakes but out comes not of we'll

Mitch Germain

that. for acquisition Great. Thank could quarter? Anything you you share the this about

Greg Silvers

Again, Greg, what don't you...

Greg Zimmerman

provides great yes, climbing very It business with as climbing for of opportunity we're We're people best Vital, the which Mitch, do to the excited gym equally is country. space. the enthusiastic a come Well, gyms about to together. in one

one Lincoln have is Movement. we're we then about very is And one Williamsburg, in The Park this other real lastly, and estate. The in is Movement Brooklyn. excited the

and estate the So excited to and with more Movement we're opportunity business do Vital. both tremendous with real really

Mitch Germain

you. Thank Okay.

Mark Peterson

thing. non-Regal is want non-Regal. bad update million total, by $XX one is of which which doing $XX the deferral is I that for of way, number million. $XX was million My in some Regal And $XXX and to I math, just

Mitch Germain

Thank you.

Mark Peterson

welcome. You're

Greg Silvers

Thanks, Mitch.

Greg Zimmerman

Mitch. Thanks,

Operator

our is RJ question And your ahead. open. the Raymond from RJ, go Please next line with line Milligan comes James.

RJ Milligan

there's have the portfolio, if on anybody growth. budget. like I'm is credit in trending to a morning, be how relative issues? I Great. debt bad guys. up Good or I'm watch list the to wanted popped just curious revenue non-theatre that sounds non-theatre good people And on whether it portfolio seen all the it curious and focus segments

Greg Silvers

don't But are we've talk wise, performance there sort I again, because any seen issues. any debt, I'll Mark let coverage think Again, performance. either or not degradation in about of in

Greg about, growth. strong revenue growth, seen As strong talked we've EBITDA,

think So, I the still consumer continues in -- be talked of comments, I experiences. to supportive about we're as my these very

But Mark, I'll let you comment the...

Mark Peterson

times X.X times versus as pandemic. pre Yes. in XXXX portfolio I X.X coverage said, on our Greg at non-theatre mean, the

So, it's very in business. not seeing we're any non-theatre really credit and strong issues

RJ Milligan

I'm pool, then, seeing you're That's is a just any made buyer transact at -- rates Okay. of? what And up who's if curious theatre what that or if there helpful. cap and

Greg Silvers

we yet. I But theatres theatre seeing don't. of still seeing -- bought haven't some companies. I by being Again, we're of seen mean to you're real transactions that. started see We've not necessarily estate kind

Greg Zimmerman

we're the see we that this as last all to year on going This going positive we'll Last we're up. year think have news we XX. to that had XXX. is to mean, I have I year, XX X,XXX we expect And box I over continues or office more. so recover. the had loosen just screens This open No. that year, $XXX see mean, films year, releases. million XX to

we even the news, Then have then and have performance a news, outsized lot year, the of Amazon films. Next the of we'll Apple more.

So, it's I positive. very think

Greg Silvers

coming these which down the were will questioned several now is support. would have RJ, the streamers. Well, and is now years, transaction people we now then the coming will of viability. content support when being narrative that out recover The to that's the boxes We valued is people shut effectively to And studios disproven. from when of where the now and and to that, industry that's changed, -- and but that productivity the market. boxes to a by into we're I not demonstrate be estate will to side, going start real it's narrative by start the think when only that transactions side that, going what there the -- filter had this that. is to believe hear change occur. see say, matter But numbers and be got then they to And

RJ Milligan

Thank guys. me for it you. That's

Greg Silvers

you, RJ. Thank

Operator

ahead. next of your RBC. Please Michael go our Michael, question, the comes for from will is line with Standby also Carroll open. line which last our be question,

Michael Carroll

Yes, thanks. jumped I on late.

been these hopefully haven't already. So questions asked

the about transaction with dislocation it over capital opportunities been the and can six of So seen mean, different just markets talk I past you on? market how have a better that's in going the you months? has general bit or changed little I guess kind

Greg Silvers

the but I I'll talk think this, yes. generally let Greg answer is about

our challenged are debt is. are the the really our think We I talked it that about right group I Vital. but now people new opportunities difficult think with about of core things long-standing market private is kind understand we relationships, with to people relationships. way the for We talked only of is seeing also our not we've really for dealt what that -- with is

a private are -- of out that see much. lot competition or not But, we is used family from you kind office of So, what to Greg? seeing if and just we're

Greg Zimmerman

I covered No, it. think you've

Michael Carroll

of if I little Greg, deal where is. here what you of availability this pursue? get so capital then, your change? a don't are on, type year much willing things mean, you are how done how you're capital to you your given I at looking know today? And I guess can of tight cost deals And new kind

Greg Silvers

Yes.

think along, I to real relationships. -- relationships. I much all XX-year quality what of estate very buying this, mean, highlighted XX, taken Greg we're said with and again, quality kind XX we've we're

is we're So, -- wanting actual more the for important stretching than yield the quality. less

we're And to focused yields, nice always but XX-plus with for now something said, attractive so, as able we years. be to get Greg happy on want

is told us. that get of been encouraged we pop this we our resolution it a as see get overhang we've as that multiple think of we're a regards that lot and that I we'll to for capital, I by will investors the kind think resolution think the

go to we think could as drive I help forward. further growth it us

to more degree how I taken of growth think everybody a little view little want has a of long-term they much kind bit right now.

consumer supporting the positive is is this. heavily us, really for think that's so the I thing But still

organically. off and necessarily we by his It's buying are capital. to Greg forming of long-lasting these And doing raise team who so, our asset are tenants not somebody what are needs that growing view only we're deals relationships. not so only 'XX And 'XX. the to us filling future for it's and but for more get not deal that important to a but towards a pipeline 'XX,

focus... that's part think And so, of I

Greg Zimmerman

announced to you Gravity I mean points. we data And did I just with mean, a quarter we last deal Yes. House. give

We them. about it. have excited We're arrangement a with go-forward very

I the the Vital that us think we fact Movement Gym. Gym ultimately to the did led Climbing

being, to clients Greg's point helping point, our and very we're focused So, earlier, grow. on Mark's existing strategic, to

Mark Peterson

said is low million done said, of raising you get I X. you that volume, can without maintaining of can terms and but million, as to as $XXX we In $XXX well, kind do importantly how our leverage that, much capital, guidance

really with low set we consistent that's our leverage. all reinvest that. and our maintaining capital cash that's because flow low, and that dividend And so able grow, to and cash still the without So, but we're way ratio significant that of raising payout flow

Michael Carroll

your mean, have might little Okay. talked interested then Great. part with I about you just guess, market you any I be portfolio? or potential somebody that a partners And the had acquiring know last private in one. bit I discussions theatre, of JV a valuations.

Greg Silvers

it but on an great discuss a we had. if question, call we It's not would earnings Mike,

So, that not we that haven't, venue the meaning have I'm that disclose [indiscernible] or anyway. going to leave had we that it's but to

Michael Carroll

Okay, great. Thank you.

Greg Silvers

Thank you. All right.

caller. I think was Eric last that said our

opportunity So, display Kansas I for City for us. joining tonight's everyone on tonight everyone I draft. based for want the to in we're thank -- we're NFL hope takes and today

city time please show to the let proud. So, take our

joining a great have for thanks us So, day. and

Greg Zimmerman

Thank you.

Mark Peterson

you. Thank

Operator

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

EPR Properties (EPR) 27 Apr 232023 Q1 Earnings call transcript