EPR - Earnings call 3 2023

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Operator

Good day, and thank you for standing by. Welcome to the Third Quarter 2023 EPR Properties Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Brian Moriarty, Vice President, Corporate Communications. Please go ahead.

Brian Moriarty

Okay. Victor. you, Thank us call joining our quarter third Thanks webcast. today earnings and XXXX for for Participants are and today's Executive Vice on call and Vice Greg and President President Zimmerman, CEO; and CIO; CFO. Mark Executive Greg Peterson, Silvers, Chairman

of that such call statements include be, words in Private as you defined of Act continue, call Securities may will I'll start Litigation informing XXXX, this condition the the other the by or forward-looking as may comparable The identified and anticipate intend, by the vary hope, financial results statements. may contemplated expect, may, -- believe, those by operations forward-looking company's continue terms. from actual materially such

The discussion reports XX-K and are cause statements contained to of in XX-Q. the on differ Form filings, could company's results materially company's from the forward-looking factors these these SEC that including

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

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

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

Gregory Silvers

approximately driven same significant XX% with our approximately XX% by properties, in the and results top morning, by Good line Thank results you, adjusted collections. FFO strong strong experiential versus happy as deferral revenue of I'm us earnings of for you call prior growth webcast. highlighted today's joining continued growth and year. share quarter per Brian. everyone, third thank on and XXXX another quarter These were to quarter, report along

guidance. that are we With increasing XXXX these announce a our to results we as are pleased backdrop, earnings

on matters A few health. tenant

lease. during into comprehensive master we the portfolio by we enhanced agreement as we entered theater a restructuring with a new anchored quarter, previously significantly Regal, our announced, As

by paid rent full Additionally, largest by remaining Santikos Southern who acquired owed theater Southern fourth was Theaters. Entertainment, the Theaters, our deferred tenant

While continues important writer still resolution exhibition ongoing, the the is strong of was its strike actor's theatrical an as recovery. strike milestone

office total surpassed XXXX As last office weekend, year-to-date box of revenues. has already box

emphasized As attendance. theater compelling content into we previously, translates

Most from brought and event Barbenheimer age power gender as cohorts our in the highlighted of theatrical diverse it demographics. exhibition recently, -- the

been brought back in the many theater it Additionally, who hadn't to years.

With in Swift, engaging the highly content. Eras we're The power theatrical content movie, excellent alternative the experience an example Taylor is true with to to Tour life seeing of This brought of combined of genres theatrical movie a other environment. are in content opportunities to this platform. as entertainment for industry and the bring performers this the success indicator their of Many an seeing

continues non-theater seeing strong and to Our attendance tenants increases remains many both our and portfolio in with coverage revenue. strength, demonstrate

challenging REITs Accordingly, activities on While plan are in broadly, resilient. the our their capitalize compelling macro confident for environment remains to consumers opportunities. on and to these spending experiences our and ability value remains and continue we identify

credit facility, With and a cash well committed next billion our on growth unsecured to with no continue without we redevelopment the approximately equity. to over of are to borrowings our funded revolving be of million $XXX $XXX and years, on million development issue X $X hand positioned having pipeline

office value sheet, and with rent. is potential balance dividend significant current percentage solid and strong meaningful near-term recovering well-covered a realize Our a a proposition catalysts to box with the

we economy. relationships develop the provides experiential in the allows such, in knowledge long-term REIT invest. developed unique and, real only spaces us the diversified have are focusing selective we the target estate We experiential specialize we ability as to and be in the to on approach. in Additionally, highly resilient segments which This industry

in plan, increased capital, to levels us of anticipate an achieve our As our we growth. of improvement continue allow cost which we execute to should

for Zimmerman turn quarter. I'll over to Greg Now it details more the on

Gregory Zimmerman

of intend quarter, leased. end sell will with Beginning the properties were the quarter, this from XXX we and service total we At XX% exclude $X.X to our statistics. investments properties Greg. approximately our in billion, Thanks, occupancy leasing

During our million. spending investment the XXXX. ending the in XX XXX% spending months September continued and and to X included development spending for $XXX.X experiential $XX.X in XXXX projects quarter, funding total experiential on was for million, of our was bringing projects investment the portfolio build-to-suit commenced and our redevelopment

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

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

a months at based of continues for portion $X.X Overall box X.Xx our XX-month the June most the Coverage X.Xx. The be to coverage billion. the on is months Turning ending recent provided coverage. period. strong for data the non-theater is portfolio theaters with XX portfolio trailing to for at Coverage for XX office June XX is trailing Xx.

XX moment, trailing of the way ending of restructured accurate in theater I'll be in detail had report would would X.Xx deal restructured a be coverage coverage, By XX, comparison, a Regal for deal, if more and to quarter, next overall theater was X.Xx. place the coverage place the for coverage months. will in view Regal describe June months been trailing we in as provide XX full Beginning more if the which

anticipate XX range. theater our through box XX-month $X.X September is billion, pre-pandemic office coverage returning to trailing with we Finally, at growths

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

previously lease agreement master The lease previously Regal. reported, entered the As into properties by effective by of with a became XX Regal, for a August XX new operated master we new restructuring X. anchored comprehensive

expectations. are Performance managed share. in The all locations market line Regal with is X open, up former ramping Cinemark X our now Phoenix by managed and regaining and by

in largest premier America. one combined nation's amenitized the agreement. holding. reported Area VSS-Southern XX, the acquired North XX Theaters fourth circuit an in purchase Southeastern The August entity it Theaters largest July asset With LLC, through community XX Santikos Southern San our on theater highly X Santikos As Antonio theaters Foundation, making foundations. operates by was owned theaters, Santikos of the we is theater in states, eighth

In the the In connection million, million full potential theater the rental quarter, Southern an to paid transaction, small we was with in took deferred quarter. $XX.X which revenue as rent regional third chain. related its recognized impairment of restructuring a of remaining with $XX.X a in

We on on more a future finalize we'll the are working agreement detail call. and provide to

quarter resolution. Guild was insight and Writers and early of continuation Screen third in The in The headwinds we writer's the settled September writer was office box don't on the by strikes. have a actor's The Guild into of timing strike, the recovery October. remains Actors the and despite any strike approved of

increase increase of in quarter $X in over combined first $XXX led and time million the for with was quarters XXXX. same XXXX office by both gross films. over and and Barbie X from office office was films contributions of XX $XXX over blockbusters million period $XX during Box return million X box a over box smaller $X.X XXXX the a grossed from total QX broad-based billion, XX% XX% Oppenheimer, exhibition demonstrating grossed QX billion, the the

at Taylor in XX, grossed QX $XXX concert have exceeds $XXX has XXXX the XXXX. a The its stands start, the $X.XX October million over office grows titles led grossing office billion, million Through gross for XX $XX October and which all which ever and box Tour, October the million opening by gross through year-to-date is to Eras box XX. of grossed highest Swift: off and opening film weekend, second ever solid on highest opening

increase strong believe for XX% Regal billion, continued would box with come a of which we and be projections office domestic office Because we slightly is our shared in line the performance, in box above resolution over gross. will domestic XXXX in $X the discussing XXXX

Ballad Killers the the grossed Songbirds the Napoleon Snakes, are We remainder The The Flower Renaissance, Aquaman $XX of by Kingdom. weekend optimistic Hunger with & Marvels, opened Beyoncé, and about the last a Games: which Moon, year of film and Lost million. of and

Importantly, our portfolio theater the outperform continues industry. high-quality to

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

and impacting results drive We of negatively operators continue is for all Across are EBITDARM some. value-oriented operating demand increased across segments to expenses, to our ongoing which board, consumer see the destinations. managing good

in strong attendance. properties, remains some seeing post-pandemic pullback anticipated we attendance are from While peak an

with and portfolio up revenue continued Our Eat over EBITDARM Play QX strong & XXXX. assets their performance

At renovated signage. of lighting, and in its outfield turf our replacing in X own assets the expense, Topgolf repainting XXXX, upgrading

insurance saw still have was rent increasing attendance costs, attractions coverage. wage but gains. comfortable EBITDARM we Our pressured by portfolio and

the opening. the about Bavarian is at complete. Michigan in summer park a water XX% of Frankenmuth, XXXX Inn for indoor And Construction on schedule

St. in Museum City year-over-year, driving and EBITDARM. is at up revenue increased Louis Attendance XX%

Our Titanic museums also year-over-year. and EBITDARM growth demonstrated revenue strong attendance,

continues. Across revenue post our fitness growth fitness in year-over-year offerings, emphasis we're seeing pandemic on as membership continued the

well and margin. Murrieta, improvements into locations in seeing and Springs, and also for early both joins California sales are early natural in XXXX. Construction which in in Springs is hot of a resort season both EBITDARM Vail underway. scheduled Springs center house expansion pass the reported Aspen the Alyeska Ikon will improvements springs Resort open for new of is also Construction redevelopment Steamboat X%, the up the EBITDARM open and gravity to We program coming Pagosa our which conference season. XXXX, on underway Pass to is the are

suites. the Alyeska. including Room the at to new the at continue Alyeska, Glacier with renovations be and pleased Spa We of performance strong continue lounge the Nordic of addition

are and increases Hotel operating the famous Bellwether EBITDARM revenue, all occupancy. ADR in we EBITDARM normalizing of post-pandemic St. downtown see Pete and continues and to resorts its in to Nashville's Beach, both proximate from Margaritaville RevPAR in upward and Nashville, while trajectory occupancy, Our Beachcomber At destinations, revenue continue highs. in

starting EBITDARM the Margaritaville we increased is are Palms The and overall of QX RV complete, to our park year-over-year former Breaux Revenue improved Bridge portfolio. Cajun conversion in results. Camp and see to for

suburban of at Warrens Wisconsin we in the improvements Kozy redevelopment Pittsburgh Memorial in Jellystone at have Jellystone, be on Construction Day, XX% completed is to by Rest and Dells. underway the complete

year-over-year EBITDARM. and continues at across June portfolio for XX in the up very to high XXXX trailing is increases perform increased X% revenue months. With Attendance XX levels June portfolio, education and XX% portfolio in entire Our the through holding well. across steady

capital to recycling. Turning

quarter, million schools. will operated net million. As we and a which reported at the the August, locations proceeds combined $X.X $XX.X gain sold for of terminated we for was of during X more lease in KinderCare Both be approximately

We the a have X of agreement have signed for and purchase X fourth. now the sold

able Again, theaters sold third XX the of to proceeds XX July, theater were around net to report a in the we the proceeds $X I'm the not for Hialeah, and for and quarter, that of million $XXX,XXX. non-theater to third a reported quarter, as Cinemex for a pleased of first We until sell about in use plan a $X.X the $XXX,XXX. Regal sold market of in surrender publicly mid-July. Florida in we we million any of gain of net former we gain

signed remaining either X Regal for agreements letters have sale and the we today, of theaters. As of executed former purchase intent of or XX

are uses future our experience the and been real varied past X-plus has years, potential estate. As the the of dependent over on the location

our generated million QX $XX a additional have $XX to are million million closing customary approximately anticipate conditions, satisfaction range dispositions guidance range dispositions of net million. from in and $XX we a thus in revising Year-to-date, of XXXX to proceeds of dispositions closing $XX subject for $XX from to million to we

be a and XXXX. and million, funding to million million of redevelopment experiential for In investment range spending investment for to to $XXX to spending QX, $XXX $XXX the from XXXX first of months in This our year our $XX.X development bringing million and deployed million. of to the spending of a We're commenced range guidance in our of narrowing $XXX $XXX.X million. projects X XXXX investment total range was consisted funds

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

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

in given continue be have interest past customers over our evaluating environment. we and and discipline new consistently with capital are quarters, of we concepts. the current We to pleased the and said But existing transactions as pipeline several with new and rate our cost exercising

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

Mark Peterson

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

prior $XXX.X was the Now Total in variances to year, line $XXX.X moving the key million quarter the an increase item. million XX%. revenue by versus for of

addition of to development number increase. to acquisitions, contributed the of this other rent items In scheduled a effect and increases,

the from X. we Regal. the XX, last accrual for revenue $XXX,XXX lease the basis reestablishing straight-line in bankruptcy quarter quarter, new master as and connection we on new As accounting to Regal August master approximately July related recognized with rental became discussed on In effective emerged Regal, with during lease anticipated

addition, we X the straight-line straight-line primarily receivable In lease totaling anticipated that effective revenue was date leases ground recording that million, related master related a subleased Regal. to to on recognized rental not to on the are $X.X

During call. total $X.X last million the customers collections, Santikos additional quarter, that remaining and and from of of I deferred Regal rent subrent as we September recognized on totaling the of revenue. for outlined from $XX.X rent received of basis Southern included, million sale our 'XX This deferral collected among a as pre-petition its million $XX.X to was related to cash payments other

an million property previously operating not $X.X reimbursements prior of Regal also period from that We additional received were anticipated. expense

we be an insignificant. the rejection related expected any amount bankruptcy, forward, to Going but our to claim is such with unsecured is receive as Regal damages in an amount treated could that

X related and on at our bankruptcy million amount, whose receivable to approximately deferred XXXX. tenants advance Southern, excluding books, the this million end. by an to through which cash agreed XXXX. reduced repayment not amount based tenant to the full Of that threshold, million $XX.X resolution according earnings schedules approximately expected held attraction Regal's payment remaining the $XX.X basis is basis cash are to $X.X deferral X amount is timing not be Regal With on approximately relates to achieved relates of paying quarter rent to in upon The in is

can of nominal amounts through Thus, 'XX such quarter while deferral and XXXX expect to revenue recognized XXXX, the on third be the of of all basis such and schedule significant see have of fourth for collections, you amounts as cash in the of XXXX. in we quarter we

to After over out-of-period I I year. will FFOs expected per the these on anticipated share deferral our XXXX versus our have revised for XXXX prior impact guidance, go are in illustrate growth adjusted collections

expense these $X primarily the primarily amounts compared that Both and in operating to $X.X income other other prior to been and were respectively, our to due increases of to properties, million, fact year relate the million the August. third during Regal XX EPR's operated loss by and theaters anticipated. quarter behalf surrendered a on the previously X of leased the experienced third slight early properties by as have These parties since

whole net X due prior the a remaining taken also cultural the of quarter than versus In in addition, rents profit revenue managed million the properties at year, to to million $X.X Percentage $X.X lower as the prior primarily property. increased year. slightly was for increased

resolution. the primarily including share-based versus those expense in increase as Regal capitalized $X.X $XX.X interest professional net including quarter prior million under investments projects to the in costs and the increase decreased year well for year interest noncash an compared G&A On million on due Interest compensation the side, an by expense as short-term quarter due to increased higher prior expense on related in to higher $XX.X payroll income expense for the to fees, million to development.

charges part Greg previously, $XX.X properties mentioned small related theater are impairment charges are FFO, tenant. FFOAA the As we These with from during quarter, theater workout million a AFFO. a to recognized and X of that of excluded

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

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

was X.Xx Our the net quarter. EBITDAre debt for to adjusted

revenue X.Xx of the favorable on for at end debt net assets still annualized to low other XX. X gross September impacts stated of adjusted and net at the annualizing was Additionally, items, XX% basis of to However, range X.Xx. quarter, EBITDAre debt to book a out-of-period our excluding the We was our

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

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

debt maturities the quarter with due debt markets. no hand our on cash Additionally, difficult of consolidated in scheduled only puts had in of $X XXXX. revolver, which average end maturity and We $XXX.X in at weighted the billion XXXX enviable given million $XXX X.X capital million years position on backdrop and no drawn balance is our an us

$X.XX. of changes revised pleased implies from to that range XXXX FFO from XXXX of as guidance over $X.XX moment. of are be will guidance $X.XX $X.XX. fourth to midpoint to for increasing We range to go the FFO previous quarter share guidance per range to $X.XX the I the adjusted in a an per a Note our as $X.XX a of our range share adjusted

cost As our we current capital we have to investment decided given of environment, have in spending. our discussed previously, the near-term limit consciously inflationary

$XX range spending range are to anticipate raise for amounts. need do to range of to additional $XXX range of we the narrowing and a $XXX to million million disposition for million a to million $XX to million, million. a $XXX $XX investment million to proceeds capital of fund our We $XX our a from XXXX not increasing to We're guidance from guidance $XXX XXXX million of these

supplemental. that recognized Lastly, is new is percentage want lease Guidance which to I the expense Page master can found details percentage to rent of rent guidance lease relates our and expected start for be being everyone remind and XXXX. the G&A expected XX to on in XXXX based unchanged. none is for of Regal year on

midpoint of helpful increased midpoint of share our of a the thought guidance our adjusted of from $X.XX. $X.XX guidance FFO previous as it per the I provide would bridge to to be

on in the by primarily million additional recognized driven can reimbursements X third of items straight-line the that favorable discussed I The earlier. during the see to Regal. additional As the $X.X $X.XX related slide, guidance expense of $X.X you operating the revenue million and increase is quarter rent

$XX on mentioned the $X.XX remove basis per illustrate out-of-period share per FFO XXXX I million from anticipated As and impact guidance million for you of from or of cash adjusted slide, of the or for impact to collections of the when $XX.X share per earlier, growth want I XXXX midpoint $X.XX share. in XXXX deferral on next the as

As slide, XXXX growth to to is expected adjusted as see XXXX FFO the be still you per healthy share from can on a X.X%.

want that point I X and Finally, understand perhaps make a last to sets EPR all apart to environment difficult REITs. think I important for is in

low amount by while disposition the modest our impact next some we adjusted grow proceeds on per flow, our given payout and use debt-to-adjusted to Over from increase X% a cash our capacity collections of EBITDA maturities, of range ratio basis investments around of still excess excluding FFO targeted couple share, each to debt and X line deferral we cash modest believe the as dividend year maintaining X.Xx. years, can and

When combined with that nearly compelling believe of currently, X% opportunity. yield dividend well-covered EPR this offers growth we is a investment shareholders a

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

Gregory Silvers

Thank you, want our points salient conclusion, with leave regarding few you I to a Mark. In performance.

or box be XXXX increase XX% Greg One, over is last billion, a at year. out, above expected $X as pointed to office

anticipated stands box pre-pandemic box XX-month back X.Xx, office of to billion. of coverage $X computed at for be long-standing we With we X.X. coverage our billion Two, X.X a currently our for that on is transaction XXXX, Regal to expect theater this will range office normalized and trailing the an theater $X.X

participants at most Three, be the XXXX strike, box billion. ongoing actor's currently, least $X to even with industry office predict

outperform significantly non-theater our to Four, pre-pandemic metrics. portfolio continues

the Not are now over economy these and of deferred experiential $XXX at demonstrate above levels. As performance. collected our in we belief the resilience only but is have million of rents, our or grounded points performing their pre-pandemic properties

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

Operator

of of Dennerlein from question Our from Bank Joshua line will America. Instructions] [Operator first come the

Joshua Dennerlein

in the color appreciate I opening the remarks.

XQ, like full kind help kind thinking XQ. for for like in us about are where you to XQ bridge implies and what Just implied range. year Could the then guidance of of it your you

Mark Peterson

that the kind Yes. in but to There's reconciliation, a can over here go Josh, lot I major components a of second.

and deferrals QX. that So all, first you've QX, to in got expect obviously, $X.XX about be of we nominal in of

QX So that's as you QX. big from head a to one

in $X.XX. once net We had also the the of the is get of it way, about for that's if rent $X.X Regal so then $X.XX. deferrals QX, in it, another you about And base is out month than rent QX straight-line kind another think and you higher million, of that's X

QX, down a are get ahead about of couple pretty $X.XX. you keep mind. to work in that Then So there's things to big that to to

their JVs drop The off-season. in QX. managed really That's properties and

from of So about there's But our on XX% drop of in those recognized QX of other for million FFO bit in quite that QX QX. side, a percentage $XX to the is properties. rent

and kind So an down of is there's that's whereas timing JVs the $X.XX, other about managed of up of items. minor $X.XX, then about

that's pieces of way that's saying QX. into getting major $X.XX, the So to are but of those long head this from you a way as a quarter $X.XX

Joshua Dennerlein

helpful. Okay. super kind you And that. growth. That's can company you on All Mark, for did a where appreciate just stabilize think go-forward the of kind of right. basis mention then I

again? thinking your to go could And just growth you how you're I equity maybe could kind assumptions in over rate? drive think that about those kind without maybe that of what of remarks, opening upside it,

Mark Peterson

those so years. are comments about over next couple of the Sur,

driven about of at benefit fact X.XX% the year, Regal in we year. think and years, year cap. we online have So we versus by you if think about year, the cash of percentage theaters Also, free next And didn't approximately the operating $XXX that we're this this both flow X%, get XXXX rents over coming and next investing that X% those of million XXXX. talking that we're grow can

for the year. in those the benefit the base So drop, this the we'll year, get rent. XX% year, the whole performance -- of year there's during next lease year kind theaters But of a operating as the of theaters and drop lease

bit improvement there. of a quite there's So

investments in investments frankly, 'XX, some then of did outsized. of And -- the kind that just was we think the I

million starting online and we year. did remember, deals, come and of you year next those If $XXX worth this to are

the So you some you other put as going have well. way that all things together and

put You all that growth about to together both we X% years. it in translates though, think a

hand cash have we line. fortunately, nothing our drawn So and on on

'XX So then We in -- we math need think in $XXX do have the markets million and to $XXX maturities and 'XX. if don't growth on only X% we that achieve access through the that XXXX. million all line of you capital the to that our

So we're by encouraged that.

Operator

next come Our from will the question line of Citi. Eric Wolfe from

Eric Wolfe

had of on you but a good like previously FFO you base growth think just excluded things. other which to the think guidance the about I that given outlined? of million, sort restructure from on $XXX run also impact that of Is rate the still sort a which deferrals, the impact and included

Mark Peterson

if look build-to-suits rate difficult us, service it's throughout quarter a rate," at period. fourth run you pick the "run you because going When for say bit we've got in

profit until doesn't in year. rent course, percentage the kick really that have, operating and of next Regal We

kind rate run quarter a the of year. rate run for or So picking even a

I run that forth. coming rate that and talked terms Regal, think in online a $XXX little base million bit but is probably I terms we of embedded have growth of about build-to-suits sort so in high, of

year deferrals, you think comment, base the I to you which on, February at think but previous give when next year, we if X%. in that that X% we And $XXX what can if grow we we'll another million it. then that the for that roughly how guidance amount showed we by deferrals, you But that's is focus the and we about remove should that crystallize look important remove Josh's slide number in

Eric Wolfe

it. balance Got I cash Makes quarter-over-quarter. $XX grew think, And million sense. then by, your

you drove investment what free the little is million actually your so understand because mentioned, sort to trying cash you year, And activity over it $XXX in seemed about a million some per quarter. as Just call quarter. $XX like that had of it a flow

it wondering during grew so much So I just the was just quarter. why

Mark Peterson

collect Yes. shown that We did that deferrals schedule. million of on $XX.X are the

and bond they're in QX timing Also, huge QX. So matters, heavier that's of and a the number. payments

payments yes, bond some flow there's timing low cash it and our extra a in the coming QX, in the high given deferrals just of that just our So But operating the then bond quarter heavy reversal of way was business. the work. the growth payments,

Operator

question Rob Scott. come next Montgomery from Stevenson Janney will the line from of Our

Robert Stevenson

where Greg, obviously, rate penciling given any of is still are the bid-ask beyond cost you capital expansion new on. really working But have world? and that to interest commitments your in you're made investments spread this partners that, today

Gregory Silvers

I would yes. Rob, the say, answer is

I on out, think equity, things spending we that. risk/reward future things getting to Mark are comfortable people that. new implied with opposed pointed in we we're and taking spread But that growth, time cash as our issuing continue to that because bid-ask do as given and a of standpoint, again, are as think we'll

movement longer, again, them these but we're making value the of to we comment. is I where that is, still little has pencil to that the It and ask We achieve think for I'll We're -- kind a price But area. has taken but has think taken things seeing of Greg some performance more that in like that longer everyone. awareness to like the market assets, we moved Greg, assets. where for substantially seeing

Gregory Zimmerman

thing, verticals. would that's And Lodging. we're that I I Greg, Rob, Eat these seeing other opportunities absolutely Yes, attractions, We're most in think the & Experiential is Play right. seeing of add our the

comments So Greg's But little what we pretty it's a have taking I given environment. is the just we echo longer current still what good are, feel a pipeline.

Robert Stevenson

of it comes over think millions the And 'XX, when of hit end next speed? right? $XXX-and-some about a sort sort sort producing mean at commitments period as, it, be million X% of stuff the cap. how of of proratably full just what's does sort I at $XXX Okay. couple income of call in of we about sort mean, all from expansion if NOI thinking 'XX, the the Mark, of that years, should I that sort how is how 'XX, I of then, round in is numbers,

Mark Peterson

look Yes. as And in We shows beginning we've finishes from if build-to-suit and development of then XX on million worth it out. show forward, on the when you supplemental property spending that a build-to-suit I service. of about Page goes it 'XX got under spending of $XXX scheduled think

So on of then right side, course, into -- of and that away. out, kind sort shows the service. build-to-suit And how mortgage earns on it then of that that that schedule comes money put we the money as

So there 'XX X% which that some X% in into of of is over it about Like million, in or caps But of to goes as think spent $XXX by terms when timing. million don't well. service. the said, but think helpful be will think I understand will most way, that of $XXX-plus -- I is that more be it 'XX, in spent schedule

Robert Stevenson

meaningful Okay. delay Or no there park it full until And that that really a there speed start the water start be thing. like is at at next doesn't immediately? going hitting speed finished summer. ramp-up to and full Does sort producing that's 'XX is of

Mark Peterson

it service, full Once showing once its is cap it we're rate. it schedule, what in goes on yes, earns which that goes --

Operator

Our line Yadav next the question comes from of JMP from Jyoti Securities.

Mitch Germain

Mitch actually here. is This

looking out that you're debt you Just tap not suggested with the capital help markets. had to XXXX the me because

going So to redeem maturity? is that a suggestion the that you're

Mark Peterson

pay credit. it would We of off our line

line drawn nothing have our of on credit. We

off it the So to line. currently pay is our plan

capacity time course, and sense. of pay debt Of that line look on and term, off. plenty the But of markets financing makes to we've longer-term the cash that credit see got we'll in near capacity at at if through hand

Mitch Germain

dilution you think that a of way kind that you're bit year, associated about you when the about little And Great. then talk the should with of next X% Is that of for so debt? implying it? refi

Mark Peterson

it paying -- our Correct, line we cheaper. Yes, correct and because we're you're are correct. it's off

Mitch Germain

a do to long-term Okay, some look onetime think purchase? they're going plan? to do great. And Santikos maybe what's then just further you consolidation? that that Is Or

Gregory Silvers

Again, I theaters operate their to the know I are think be thoughts if if continue clearly, to presented. Santikos you think, brand, to opportunistic

think still their I So to they're grow looking chain.

So I Greg, -- but any.

Gregory Zimmerman

them No. the we've understand opportunity to doing, And and them Mitch, have we're to length they're partners. what meet at as had with pleased and

Mitch Germain

-- I risk in or of you the big actor's the confident Great. of Obviously, you $X movies that to is should on delayed. that think bakes that of And to that continue? elongated office, continue to year-over-year. case getting any flattish that actors? releases is you -- that, question mean kind we kind sort base downside think regards so Greg, are mentioned strike then some strike get my side are do Or are XXXX I box I billion had indication number an some the for there last of think with pretty you

Gregory Silvers

there's again, that can't Well, always risk anticipate. we

the again, are I of half things is think next of I complete. we've along is first a what fairly all baked. mean, lot year said

resolved at completing point, to gets know there's start projects. going be resolved, going of, versus see. anything rush will XX is we'll strike when to occur that the which mad some be new So What's okay, be a to starting we it to needs completed

ago, again, the mean, closer estimate I So breaks months out. how Xs. high to X even remember, that Mitch, probably was the

we now this don't $X the of of that is kind MI-X, Greg, lot just that And of has billion release, of so a to moved I'm -- not remember, year. major that's I from So some time anticipating. of really built have in things. kind right Dune only that mean moved period of in whole there's aware that

to significant now, Xs. high a in of So probably It's lot from not again, factor -- a got But have said, low we'll still to movement. there like a it's Xs see. right I XX%

Operator

from question will Todd Capital next line from come Our of Markets. the Thomas KeyBanc

Todd Thomas

and rent on dilution to ability that Can previously with your to you portfolio. the the I the from appreciate pace theater and the comment the around additional dispositions the outlined? or details just initial those assets your that provided the mitigate Regal relative the recovery you dispositions update estimate was of carrying on generate resolution

Gregory Zimmerman

last I and feel about continuing. per since X pretty X that comfortable pace said or year Todd, selling quarter, had we think Yes, history we've COVID the we is

mentioned, for have I signed As LOIs PSAs of XX. or X we the remaining

So -- we good all traction and seeing of we're them. on

So -- before because in start standing any the we of from deal. able market a we to announced Regal and these that's weren't July

Gregory Silvers

the add, The time what Regal. other gave at the that the thing would forecast is consistent I with Todd, of achieving we we're is

has those faster. point them, don't this, they've it achieved of we're capital his it's it not that initially productive I to take that, which long than So Hopefully, only been does as getting carrying we with making and probably again, -- you appears but probably -- think us, close had interest expectation. eliminating and anticipated, but helps it the some allowing has gotten from as team capital out, that deploy in, and to Greg how changing that into faster costs us

Todd Thomas

Okay. That's helpful. And then to continuing put your and comments about investing free cash flow out door. capital the

you be curious conversations forward? I'm range. range that in all investment investments you'd are as X% more any X% sort about has going look been that in, in seeing of to new adjustment north recently you established to ahead, the here? Just X.X% seeing to such pricing that pricing you're assuming yields to if of expect locked pipeline But X.X% continue investments, have improve at you on committed As you're those

Gregory Silvers

I a would issues meaning a X.X%. -- there's of we're a there's we're awareness, of price now but wouldn't kind XX% have risk at also been again, reward, say XX% think of -- maybe always we it's of we're still necessarily I been deal, but and deal,

things again, -- it's of those play. all come So into

I think that is our building quality we're resilient with the portfolio. But comfortable property the of what with the we'd comfortably that with of the Xs types types, in those Greg...? very and operators we're a say seeing we're quality

Gregory Zimmerman

before, we're as is breadth, many I mean, our of reassuring. the really in And of a which seeing mentioned lot opportunities verticals, I

Todd Thomas

maybe you Okay. but you traffic. lower performance spend, any other anything, softness some And didn't operator has you're on how attractions And property provide mentioned I seeing I in types? about whether then more remarks lastly, and experiential around bit what hear any there trended? category, at a that just can seeing just just detail lower lodging. softness just seeing your think prepared you the you're also Can little from curious comment in you're

Gregory Zimmerman

seeing actually and gains I pressure actually attractions. said, on Todd, we were attendance insurance costs, we're that wage Yes. EBITDARM from seeing and

insurance I normalization larger on I'm from RevPAR ADR, consider a also mentioned of coming but bill. than pre-pandemic would a in hits And the rather experiential insurance got lodging, would and say, but takeaway that it I mostly just we're wages really here. to the decrease. some on I levels normal pressure back there done is Greg, seeing because many generally, the attractions verticals, in some and is So then

Gregory Silvers

board, going we across revenues we're -- think pretty I add, the we continued Whether seeing the attendance. consumer the that. what from up was growth to would it's the in is I much Yes, across saw or not board, backing almost say side. positive across I mean,

As cost substantially. operators Greg of pointed gone insurance have up for a our lot out,

seen have we some margin So pressure.

went at -- coverage pullback last to from X.X% basis, we've from of going quarter-over but on not especially indicates kind consumer experiential the all, a a some X.X% this a that assets. on pressure, the as seen really quarter we That's But quarter. about expense of any

Operator

Balachandran come Our the from from will next RBC. question Aditi of line

Aditi Balachandran

Can the quick especially or in I you a like, these the buyer market, question. to theaters guess, Regal as about little Just biomarker depth bit a pipeline? X you still talk the the sell of have

Gregory Zimmerman

Yes.

theater of but buyer uses. rest the this go is estate. say various market will real the dependent think chain good. the existing the I'd and on again, all I about smaller the we're likely selling And it's to pretty of is again, location rough, to theaters XX% an

broadly. it be retail. always So it market be it could could We industrial, could be multifamily,

We So we particular target any target don't and hire broker widely. a just user.

we a for is handle particular pretty like any we demand asset. have feel good what So on the

Gregory Silvers

one team you of and or purchase with I sale When agreements secured speed indication in that would say X Aditi, look the X sold already at which is have that the X, Greg XX. at his and that's LOIs.

high pretty period. for hit been a that's a about what really rate has XX-day So

So assets. involved I Greg it, ask most comment been lot And of there's a of to think but parties in these multiple interest. I'll

Gregory Zimmerman

That's...

Mark Peterson

price, carrying you slightly of as we quarter, terms and saw -- we're expect slightly that. this And future in the above above what

upon as seeing well. gains sale some we're So

Operator

of the Zhong question comes Ray next JPMorgan. from Our line from

Zhuorui Zhong

earlier. question other on know color the operating I a have the there. mentioned are assets line. you in I appreciate all income guys I

is you theaters. a theaters guys of and at mentioned So quarter. assume the operating were this Cartwright bit loss there little I know actually

$X out us help know on should guys guys maybe Cartwright, here? for of box modeling how bit it stabilized of seasonality terms Just you billion, the kind on moving can year far would next be is the is the about what help from little the the talked us -- there be from appreciated. theaters, about a anything other help if you and income what office out the forward? in amount Just I magnitude

Mark Peterson

Yes.

we terms We on theaters, those $XXX,XXX down breakeven was in said this $XXX,XXX, and -- taking So that less the fourth still in things were to a And additional of other which reverse the expect couple income loss X that. versus there. other really, quarter. $XXX,XXX expense, on had about of about we quarter or there's from and going to we more

actually expense on In margin decrease some of Greg there. lodging of of -- Cartwright, the mentioned our terms the pressure some and experiential the

Cartwright quarter $XXX,XXX, that then so And the their that the in last expenses was increase that you for year, reduced versus at both operating a a other having to theater, slight the degradation contributor margin. will, and loss if operating the

income million. $X.X other If go this the this fourth over quarter, income to year, you was -- expense quarter, over other

of to the managed loss due just seasonality to in number slight be that expect a the We QX properties.

its Cartwright's that number about theaters drive Cartwright, fourth that's that in will in what's down Cartwright to quarter, but is offseason of off-season net better, the If will you in offset kind going -- do really down think QX. profit slightly

Zhuorui Zhong

rate a Or little Got to it. And that the run Cartwright about to just still then stabilization kind on run XQ on of million that moving fair -- forward $X piece is quarter a over some XQ? think is there's there? and the rate

Mark Peterson

year, there. there was first been full of on the a been some It open for Well, Cartwright interesting. it's and has construction year balcony this was kind going

to pressure, second have quarter quarter in-season expect lower that Remember, to you too, say about be with you first improve. third So sort hard rates, going third expense you with respect have and talk fourth how quarter. Cartwright improve first and do because have than fourth run and and to much will that of the we second and you're when quarter to off-season

sure just make that the right. So you timing get of

fully sort and of year issue, I the some having think COVID of this that will improves of while open this the year out the which after we're shut full having a year. year first But for over do next down hopeful that year next Cartwright given rooms balcony a be kind

that But for expense performance. in property. seeing we're is that pressure -- hoping there again, regard improved we're So in some

Operator

any I'm the Silver, Greg queue. not I'd for showing back remarks. further closing questions to over in to the CEO, turn And call like

Gregory Silvers

look Well, you. you, thank thank you, We and everyone, call, forward us day. today. for Thank next and you joining talking on wonderful have to our Victor, a to

Operator

this conference concludes that, with Thank And participating. you call. today's for

now may Everyone, You day. a great have disconnect.

EPR Properties (EPR) 26 Oct 232023 Q3 Earnings call transcript