EPR Properties (NYSE:EPR) today announced operating results for
the first quarter ended March 31, 2020 (dollars in thousands,
except per share data):
Three Months Ended March
31,
2020
2019 (1)
Total revenue from continuing
operations
$
151,012
$
150,527
Net income available to common
shareholders
31,084
59,315
Net income available to common
shareholders per diluted common share
0.40
0.79
Funds From Operations as adjusted (FFOAA)
(a non-GAAP financial measure)
75,926
102,991
FFOAA per diluted common share (a non-GAAP
financial measure)
0.97
1.36
Adjusted Funds From Operations (AFFO) (a
non-GAAP financial measure)
89,891
104,115
AFFO per diluted common share (a non-GAAP
financial measure)
1.14
1.38
(1) The operating results of the Company's public charter school
portfolio for the three months ended March 31, 2019, including a
$5.0 million termination fee, are included in all metrics in this
column except for total revenue from continuing operations. The
remaining public charter school portfolio was sold subsequent to
this period.
CEO Comments
“As we continue to navigate our way through these uncertain
times, the health and safety of our employees and customers remain
our top priority,” stated Company President and CEO Greg Silvers.
“Given the shelter-in-place and social distancing directives, the
majority of our tenants have been particularly impacted given the
Company’s focus on experiential real estate. We have established an
internal task force focused on COVID-19 to work with our tenants
and borrowers in the near-term to help ensure long-term stability,
and assist them in establishing re-opening plans. Today we are
announcing further measures to ensure our liquidity, including the
temporary suspension of our monthly cash dividend to common
shareholders and a planned suspension of our share repurchase
program. We do not take these steps lightly; however, given the
uncertainties that exist, we believed it unwise to burden our
future with a higher leveraged balance sheet.”
Mr. Silvers continued, “While the country is currently facing
tremendous challenges, this will be transient. We entered this
period with substantial liquidity, and we have acted swiftly to
adjust our plans and maintain our flexibility. Furthermore, our
properties are a part of the fabric of society and we believe there
will be a strong demand for the time-tested experiences our tenants
offer. We remain confident in our investment thesis and in our
positioning as the leading experiential real estate investment
trust.”
COVID-19 Response and Update
The Company has acted swiftly and taken a number of steps in
response to the pandemic. These include the following:
- COVID-19 Task Force. This internal team is comprised of
individuals from across the Company and is focused on addressing
all areas of challenges brought on by the pandemic including
monitoring customer status and working with them to help ensure
long-term stability and assisting them in establishing re-opening
plans.
- Enhanced liquidity position. The Company remains focused on
maintaining a strong balance sheet, strong liquidity and financial
flexibility. The Company deferred an anticipated gaming investment
of approximately $1.0 billion and revised its 2020 anticipated
investment spending to include only previously committed investment
spending totaling approximately $100.0 million. As a precautionary
measure, the Company borrowed $750 million under its revolving
credit facility in March to increase its cash position and preserve
financial flexibility. As further discussed below, in conjunction
with waivers or modifications the Company expects to obtain with
respect to its bank credit facilities and private placement notes
in the second quarter of 2020, the Company is temporarily
suspending its monthly cash dividend to common shareholders
subsequent to the common share dividend previously declared and
payable on May 15, 2020. Additionally, the Company has no scheduled
debt maturities until 2022.
- Collections. Tenants and borrowers paid approximately 15% of
April 2020 contractual base rent and mortgage payments. The Company
remains focused on working with its customers for long-term mutual
benefit. As substantially all of the Company's customers remain
temporarily closed, the Company has agreed to defer the rent and
mortgage payments on a month-to-month basis for substantially all
of the customers that did not pay rent for the month of April 2020.
The Company does not expect any significant changes in collections
until after tenants and borrowers resume operations, which may
occur on a state-by-state basis and is subject to local
restrictions.
- Tenant update. As previously disclosed, the parent of American
Multi-Cinema, Inc., or “AMC”, announced the closing of a private
offering of $500.0 million of first lien notes on April 24, 2020
and has indicated that these additional proceeds would provide it
with sufficient liquidity to withstand a global suspension of
operations until a partial reopening ahead of Thanksgiving. Despite
this increase in short term liquidity, the Company believes it is
prudent to begin recognizing revenue for AMC on a cash basis.
Accordingly, the Company recorded a non-cash write-off of
straight-line rent receivable of approximately $12.5 million for
the quarter ended March 31, 2020 related to AMC as well as two
small tenants where a similar assessment was made that cash
accounting is appropriate.
Portfolio Update
The Company's total investments (a non-GAAP financial measure)
were approximately $6.7 billion at March 31, 2020 with Experiential
totaling $6.0 billion, or 89%, and Education totaling $0.7 billion,
or 11%.
The Company's Experiential portfolio (excluding property under
development) consisted of the following property types (owned or
financed) at March 31, 2020:
- 181 theatre properties;
- 56 eat & play properties (including seven theatres located
in entertainment districts);
- 18 attraction properties;
- 13 ski properties;
- six experiential lodging properties;
- one gaming property;
- three cultural properties; and
- seven fitness & wellness properties.
As of March 31, 2020, the Company's owned Experiential portfolio
consisted of approximately 19.5 million square feet, which was
98.3% leased and included $30.1 million in property under
development and $24.6 million in undeveloped land inventory.
The Company's Education portfolio consisted of the following
property types (owned or financed) at March 31, 2020:
- 70 early childhood education center properties; and
- 16 private school properties.
As of March 31, 2020, the Company's owned Education portfolio
consisted of approximately 1.9 million square feet, which was 100%
leased and included $3.5 million in undeveloped land inventory.
The combined owned portfolio consisted of 21.4 million square
feet and was 98.4% leased.
Investment Update
The Company's investment spending for the three months ended
March 31, 2020 totaled $41.9 million and included the acquisition
of two theatre properties for approximately $22.1 million, and
spending on Experiential build-to-suit development and
redevelopment projects.
Balance Sheet and Liquidity Update
At March 31, 2020, the Company's net debt to gross assets ratio
(a non-GAAP Financial Measure) was 38% and its net debt to adjusted
EBITDA ratio (a non-GAAP financial measure) was 5.1x.
The Company had $1.2 billion of unrestricted cash on hand and
$750.0 million outstanding under its $1.0 billion unsecured
revolving credit facility at March 31, 2020. The Company has no
scheduled debt maturities until 2022 when its unsecured revolving
credit facility comes due.
During the quarter, the Company's Board of Trustees (the
"Board") approved a share repurchase program to which the Company
may repurchase up to $150.0 million of the Company's common shares.
The share repurchase program is scheduled to expire on December 31,
2020, however, the Company will suspend the program upon the
effective date of the covenant modification agreements, as
discussed below. Subsequent to March 31, 2020, the Company
repurchased 1,015,731 common shares under the share repurchase
program for approximately $20.4 million. The repurchases were made
under a Rule 10b5-1 trading plan.
Dividend and Debt Covenant Waiver Information
The Board declared monthly cash dividends during the first
quarter of 2020 totaling $1.1325 per common share. Subsequent to
quarter-end, the Board declared a monthly cash dividend of $0.3825
per common share payable on May 15, 2020 to shareholders of record
as of April 30, 2020.
The Board also declared its regular quarterly dividends to
preferred shareholders of $0.359375 per share on its 5.75% Series C
cumulative convertible preferred shares, $0.5625 per share on its
9.00% Series E cumulative convertible preferred shares and
$0.359375 per share on its 5.75% Series G cumulative redeemable
preferred shares.
Because certain financial covenants under the Company’s bank
credit facilities and its private placement notes are calculated
based on the most recent quarterly net operating income, the
Company expects that it will not be in technical compliance
(non-payment related) with such covenants at the end of the second
quarter of 2020. Accordingly, the Company is in discussions with
its lenders and private placement note holders to obtain a
temporary suspension or modification of these covenants, with some
suspended financial covenants expected to extend through the first
quarter of 2021. As a part of this process, the Company has also
determined that it will temporarily suspend its monthly cash
dividend to common shareholders after the common share dividend
payable May 15, 2020 (except as may be necessary to maintain REIT
status and to not owe income tax) and will suspend the share
repurchase program upon the effective date of the covenant
modification agreements, which is expected to occur in the next 30
days.
Conference Call Information
Management will host a conference call to discuss the Company's
financial results on May 7, 2020 at 8:30 a.m. Eastern Daylight
Time. The call may also include discussion of Company developments,
and forward-looking and other material information about business
and financial matters. The conference will be webcast and can be
accessed via the Webcasts page in the Investor Center on the
Company's website located at http://investors.eprkc.com/webcasts.
To access the call, audio only, dial (866) 587-2930 and when
prompted, provide the passcode 6981919.
You may watch a replay of the webcast by visiting the Webcasts
page at http://investors.eprkc.com/webcasts.
Quarterly Supplemental
The Company's supplemental information package for the first
quarter ended March 31, 2020 is available in the Investor Center on
the Company's website located at
http://investors.eprkc.com/earnings-supplementals.
EPR Properties
Consolidated Statements of
Income
(Unaudited, dollars in
thousands except per share data)
Three Months Ended March
31,
2020
2019
Rental revenue
$
135,043
$
140,292
Other income
7,573
344
Mortgage and other financing income
8,396
9,891
Total revenue
151,012
150,527
Property operating expense
13,093
15,551
Other expense
9,534
—
General and administrative expense
10,988
11,710
Severance expense
—
420
Interest expense, net
34,753
33,963
Transaction costs
1,075
5,123
Credit loss expense
1,192
—
Depreciation and amortization
43,810
36,002
Income before equity in loss from joint
ventures, other items and discontinued operations
36,567
47,758
Equity in (loss) income from joint
ventures
(420
)
489
Gain (loss) on sale of real estate
220
(388
)
Income before income taxes
36,367
47,859
Income tax benefit
751
605
Income from continuing operations
$
37,118
$
48,464
Discontinued operations:
Income from discontinued operations before
other items
—
10,169
Gain on sale of real estate from
discontinued operations
—
6,716
Income from discontinued operations
—
16,885
Net income
37,118
65,349
Preferred dividend requirements
(6,034
)
(6,034
)
Net income available to common
shareholders of EPR Properties
$
31,084
$
59,315
Net income available to common
shareholders of EPR Properties per share:
Continuing operations
$
0.40
$
0.57
Discontinued operations
—
0.22
Basic
$
0.40
$
0.79
Continuing operations
$
0.40
$
0.57
Discontinued operations
—
0.22
Diluted
$
0.40
$
0.79
Shares used for computation (in
thousands):
Basic
78,467
74,679
Diluted
78,476
74,725
EPR Properties
Condensed Consolidated Balance
Sheets
(Unaudited, dollars in
thousands)
March 31, 2020
December 31, 2019
Assets
Real estate investments, net of
accumulated depreciation of $1,023,993 and $989,254 at March 31,
2020 and December 31, 2019, respectively
$
5,184,692
$
5,197,308
Land held for development
28,080
28,080
Property under development
30,063
36,756
Operating lease right-of-use assets
207,605
211,187
Mortgage notes and related accrued
interest receivable
356,666
357,391
Investment in joint ventures
33,897
34,317
Cash and cash equivalents
1,225,122
528,763
Restricted cash
4,583
2,677
Accounts receivable
72,537
86,858
Other assets
112,095
94,174
Total assets
$
7,255,340
$
6,577,511
Liabilities and Equity
Accounts payable and accrued
liabilities
$
112,167
$
122,939
Operating lease liabilities
232,343
235,650
Dividends payable
36,097
35,458
Unearned rents and interest
84,190
74,829
Debt
3,854,062
3,102,830
Total liabilities
4,318,859
3,571,706
Total equity
$
2,936,481
$
3,005,805
Total liabilities and equity
$
7,255,340
$
6,577,511
The historical financial results of the public charter schools
sold by the Company in 2019 are reflected in the Company's
consolidated statements of income as discontinued operations for
the three months ended March 31, 2019. The operating results
relating to discontinued operations are as follows (dollars in
thousands):
Three Months Ended March
31,
2019
Rental revenue
$
10,431
Mortgage and other financing income
3,584
Total revenue
14,015
Property operating expense
242
Interest expense, net
(137
)
Depreciation and amortization
3,741
Income from discontinued operations before
other items
10,169
Gain on sale of real estate
6,716
Income from discontinued operations
$
16,885
Non-GAAP Financial Measures
Funds From Operations (FFO), Funds From Operations As
Adjusted (FFOAA) and Adjusted Funds From Operations (AFFO)
The National Association of Real Estate Investment Trusts
(“NAREIT”) developed FFO as a relative non-GAAP financial measure
of performance of an equity REIT in order to recognize that
income-producing real estate historically has not depreciated on
the basis determined under GAAP. Pursuant to the definition of FFO
by the Board of Governors of NAREIT, the Company calculates FFO as
net income available to common shareholders, computed in accordance
with GAAP, excluding gains and losses from disposition of real
estate and impairment losses on real estate, plus real estate
related depreciation and amortization, and after adjustments for
unconsolidated partnerships, joint ventures and other affiliates.
Adjustments for unconsolidated partnerships, joint ventures and
other affiliates are calculated to reflect FFO on the same basis.
The Company has calculated FFO for all periods presented in
accordance with this definition.
In addition to FFO, the Company presents FFOAA and AFFO. FFOAA
is presented by adding to FFO costs (gain) associated with loan
refinancing or payoff, net, transaction costs, severance expense,
preferred share redemption costs, termination fees associated with
tenants' exercises of public charter school buy-out options and
credit loss expense and subtracting deferred income tax (benefit)
expense. AFFO is presented by adding to FFOAA non-real estate
depreciation and amortization, deferred financing fees
amortization, share-based compensation expense to management and
Trustees and amortization of above and below market leases, net and
tenant allowances; and subtracting maintenance capital expenditures
(including second generation tenant improvements and leasing
commissions), straight-lined rental revenue, and the non-cash
portion of mortgage and other financing income.
FFO, FFOAA and AFFO are widely used measures of the operating
performance of real estate companies and are provided here as a
supplemental measure to GAAP net income available to common
shareholders and earnings per share, and management provides FFO,
FFOAA and AFFO herein because it believes this information is
useful to investors in this regard. FFO, FFOAA and AFFO are
non-GAAP financial measures. FFO, FFOAA and AFFO do not represent
cash flows from operations as defined by GAAP and are not
indicative that cash flows are adequate to fund all cash needs and
are not to be considered alternatives to net income or any other
GAAP measure as a measurement of the results of our operations or
our cash flows or liquidity as defined by GAAP. It should also be
noted that not all REITs calculate FFO, FFOAA and AFFO the same way
so comparisons with other REITs may not be meaningful.
The following table summarizes FFO, FFOAA and AFFO for the three
months ended March 31, 2020 and 2019 and reconciles such measures
to net income available to common shareholders, the most directly
comparable GAAP measure:
EPR Properties
Reconciliation of Non-GAAP
Financial Measures
(Unaudited, dollars in
thousands except per share data)
Three Months Ended March
31,
2020
2019
FFO:
Net income available to common
shareholders of EPR Properties
$
31,084
$
59,315
Gain on sale of real estate
(220
)
(6,328
)
Real estate depreciation and
amortization
43,525
39,514
Allocated share of joint venture
depreciation
383
555
FFO available to common shareholders of
EPR Properties
$
74,772
$
93,056
FFO available to common shareholders of
EPR Properties
$
74,772
$
93,056
Add: Preferred dividends for Series C
preferred shares
1,939
1,939
Add: Preferred dividends for Series E
preferred shares
1,939
1,939
Diluted FFO available to common
shareholders of EPR Properties
$
78,650
$
96,934
FFOAA:
FFO available to common shareholders of
EPR Properties
$
74,772
$
93,056
Transaction costs
1,075
5,123
Severance expense
—
420
Termination fees included in gain on
sale
—
5,001
Credit loss expense
1,192
—
Deferred income tax benefit
(1,113
)
(609
)
FFOAA available to common shareholders of
EPR Properties
$
75,926
$
102,991
FFOAA available to common shareholders of
EPR Properties
$
75,926
$
102,991
Add: Preferred dividends for Series C
preferred shares
1,939
1,939
Add: Preferred dividends for Series E
preferred shares
1,939
1,939
Diluted FFOAA available to common
shareholders of EPR Properties
$
79,804
$
106,869
AFFO:
FFOAA available to common shareholders of
EPR Properties
$
75,926
$
102,991
Non-real estate depreciation and
amortization
285
229
Deferred financing fees amortization
1,634
1,502
Share-based compensation expense to
management and trustees
3,509
3,177
Amortization of above and below market
leases, net and tenant allowances
(152
)
(59
)
Maintenance capital expenditures (1)
(928
)
(297
)
Straight-lined rental revenue
9,708
(2,414
)
Non-cash portion of mortgage and other
financing income
(91
)
(1,014
)
AFFO available to common shareholders of
EPR Properties
$
89,891
$
104,115
AFFO available to common shareholders of
EPR Properties
$
89,891
$
104,115
Add: Preferred dividends for Series C
preferred shares
1,939
1,939
Add: Preferred dividends for Series E
preferred shares
1,939
1,939
Diluted AFFO available to common
shareholders of EPR Properties
$
93,769
$
107,993
FFO per common share:
Basic
$
0.95
$
1.25
Diluted
0.95
1.23
FFOAA per common share:
Basic
$
0.97
$
1.38
Diluted
0.97
1.36
AFFO per common share:
Basic
$
1.15
$
1.39
Diluted
1.14
1.38
Shares used for computation (in
thousands):
Basic
78,467
74,679
Diluted
78,476
74,725
Weighted average shares
outstanding-diluted EPS
78,476
74,725
Effect of dilutive Series C preferred
shares
2,232
2,145
Effect of dilutive Series E preferred
shares
1,664
1,622
Adjusted weighted average shares
outstanding-diluted Series C and Series E
82,372
78,492
Other financial information:
Dividends per common share
$
1.1325
$
1.1250
Amounts above include the impact of discontinued operations,
which are separately classified in the consolidated statements of
income for all periods.
The conversion of the 5.75% Series C cumulative convertible
preferred shares and the 9.00% Series E cumulative convertible
preferred shares would be dilutive to FFO and FFOAA per share for
the three months ended March 31, 2020 and 2019. Therefore, the
additional common shares that would result from the conversion and
the corresponding add-back of the preferred dividends declared on
those shares are included in the calculation of diluted FFO and
FFOAA per share for these periods.
Net Debt
Net Debt represents debt (reported in accordance with GAAP)
adjusted to exclude deferred financing costs, net and reduced for
cash and cash equivalents. By excluding deferred financing costs,
net and reducing debt for cash and cash equivalents on hand, the
result provides an estimate of the contractual amount of borrowed
capital to be repaid, net of cash available to repay it. The
Company believes this calculation constitutes a beneficial
supplemental non-GAAP financial disclosure to investors in
understanding our financial condition. The Company's method of
calculating Net Debt may be different from methods used by other
REITs and, accordingly, may not be comparable to such other
REITs.
Gross Assets
Gross Assets represents total assets (reported in accordance
with GAAP) adjusted to exclude accumulated depreciation and reduced
for cash and cash equivalents. By excluding accumulated
depreciation and reducing cash and cash equivalents, the result
provides an estimate of the investment made by the Company. The
Company believes that investors commonly use versions of this
calculation in a similar manner. The Company's method of
calculating Gross Assets may be different from methods used by
other REITs and, accordingly, may not be comparable to such other
REITs.
Net Debt to Gross Assets
Net Debt to Gross Assets is a supplemental measure derived from
non-GAAP financial measures that the Company uses to evaluate
capital structure and the magnitude of debt to gross assets. The
Company believes that investors commonly use versions of this ratio
in a similar manner. The Company's method of calculating Net Debt
to Gross Assets may be different from methods used by other REITs
and, accordingly, may not be comparable to such other REITs.
EBITDAre
NAREIT developed EBITDAre as a relative non-GAAP financial
measure of REITs, independent of a company's capital structure, to
provide a uniform basis to measure the enterprise value of a
company. Pursuant to the definition of EBITDAre by the Board of
Governors of NAREIT, the Company calculates EBITDAre as net income,
computed in accordance with GAAP, excluding interest expense (net),
income tax (benefit) expense, depreciation and amortization, gains
and losses from disposition of real estate, impairment losses on
real estate, costs (gain) associated with loan refinancing or
payoff and adjustments for unconsolidated partnerships, joint
ventures and other affiliates.
Management provides EBITDAre herein because it believes this
information is useful to investors as a supplemental performance
measure as it can help facilitate comparisons of operating
performance between periods and with other REITs. The Company's
method of calculating EBITDAre may be different from methods used
by other REITs and, accordingly, may not be comparable to such
other REITs. EBITDAre is not a measure of performance under GAAP,
does not represent cash generated from operations as defined by
GAAP and is not indicative of cash available to fund all cash
needs, including distributions. This measure should not be
considered an alternative to net income or any other GAAP measure
as a measurement of the results of the Company's operations or cash
flows or liquidity as defined by GAAP.
Adjusted EBITDA
Management uses Adjusted EBITDA in its analysis of the
performance of the business and operations of the Company.
Management believes Adjusted EBITDA is useful to investors because
it excludes various items that management believes are not
indicative of operating performance, and that it is an informative
measure to use in computing various financial ratios to evaluate
the Company. The Company defines Adjusted EBITDA as EBITDAre
(defined above) for the quarter excluding severance expense, credit
loss expense, transaction costs and prepayment fees. This number
for the quarter is then multiplied by four to get an annual amount.
For the three months ended March 31, 2020, Adjusted EBITDA was
further adjusted to reflect the write-offs of straight-line rent
receivables against rental revenue of $12.5 million related to the
COVID-19 disruption.
The Company's method of calculating Adjusted EBITDA may be
different from methods used by other REITs and, accordingly, may
not be comparable to such other REITs. Adjusted EBITDA is not a
measure of performance under GAAP, does not represent cash
generated from operations as defined by GAAP and is not indicative
of cash available to fund all cash needs, including distributions.
This measure should not be considered as an alternative to net
income or any other GAAP measure as a measurement of the results of
the Company's operations or cash flows or liquidity as defined by
GAAP.
Net Debt to Adjusted EBITDA Ratio
Net Debt to Adjusted EBITDA Ratio is a supplemental measure
derived from non-GAAP financial measures that the Company uses to
evaluate our capital structure and the magnitude of our debt
against our operating performance. The Company believes that
investors commonly use versions of this ratio in a similar manner.
In addition, financial institutions use versions of this ratio in
connection with debt agreements to set pricing and covenant
limitations. The Company's method of calculating Net Debt to
Adjusted EBITDA may be different from methods used by other REITs
and, accordingly, may not be comparable to such other REITs.
Reconciliations of debt, total assets and net income (all
reported in accordance with GAAP) to Net Debt, Gross Assets, Net
Debt to Gross Assets, EBITDAre, Adjusted EBITDA, and Net Debt to
Adjusted EBITDA Ratio (each of which is a non-GAAP financial
measure) are included in the following tables (unaudited, in
thousands):
March 31,
2020
2019
Net Debt:
Debt
$
3,854,062
$
3,045,742
Deferred financing costs, net
35,933
32,838
Cash and cash equivalents
(1,225,122
)
(11,116
)
Net Debt
$
2,664,873
$
3,067,464
Gross Assets:
Total Assets
$
7,255,340
$
6,431,231
Accumulated depreciation
1,023,993
920,409
Cash and cash equivalents
(1,225,122
)
(11,116
)
Gross Assets
$
7,054,211
$
7,340,524
Net Debt to Gross Assets
38
%
42
%
Three Months Ended March
31,
2020
2019
EBITDAre and Adjusted EBITDA:
Net income
$
37,118
$
65,349
Interest expense, net
34,753
33,826
Income tax benefit
(751
)
(605
)
Depreciation and amortization
43,810
39,743
Gain on sale of real estate
(220
)
(6,328
)
Equity in loss (income) from joint
ventures
420
(489
)
EBITDAre (for the quarter)
$
115,130
$
131,496
Severance expense
—
420
Transaction costs
1,075
5,123
Credit loss expense
1,192
—
Straight-line rental revenue write-offs
(1)
12,532
—
Prepayment fees
—
(900
)
Adjusted EBITDA (for the quarter)
$
129,929
$
136,139
Adjusted EBITDA (2)
$
519,716
$
544,556
Net Debt/Adjusted EBITDA Ratio
5.1
5.6
Amounts above include the impact of
discontinued operations, which are separately classified in the
consolidated statements of income.
(1) Included in rental revenue from
continuing operations in the accompanying consolidated statements
of income. Rental revenue includes the following:
Three Months Ended March
31,
2020
2019
Minimum rent
$
138,219
$
130,497
Tenant reimbursements
3,698
6,102
Percentage rent
2,757
1,355
Straight-line rental revenue
2,824
2,245
Straight-line rental revenue
write-offs
(12,532
)
—
Other rental revenue
77
93
Rental revenue
$
135,043
$
140,292
(2) Adjusted EBITDA for the quarter is
multiplied by four to calculate an annual amount.
Total Investments
Total investments is a non-GAAP financial measure defined as the
sum of the carrying values of real estate investments (before
accumulated depreciation), land held for development, property
under development, mortgage notes receivable (including related
accrued interest receivable), investment in joint ventures,
intangible assets, gross (before accumulated amortization and
included in other assets) and notes receivable and related accrued
interest receivable, net (included in other assets). Total
investments is a useful measure for management and investors as it
illustrates across which asset categories the Company's funds have
been invested. Our method of calculating total investments may be
different from methods used by other REITs and, accordingly, may
not be comparable to such other REITs. A reconciliation of total
investments to total assets (computed in accordance with GAAP) is
included in the following table (unaudited, in thousands):
March 31, 2020
December 31, 2019
Total Investments:
Real estate investments, net of
accumulated depreciation
$
5,184,692
$
5,197,308
Add back accumulated depreciation on real
estate investments
1,023,993
989,254
Land held for development
28,080
28,080
Property under development
30,063
36,756
Mortgage notes and related accrued
interest receivable
356,666
357,391
Investment in joint ventures
33,897
34,317
Intangible assets, gross (1)
58,784
57,385
Notes receivable and related accrued
interest receivable, net (1)
14,011
14,026
Total investments
$
6,730,186
$
6,714,517
Total investments
$
6,730,186
$
6,714,517
Cash and cash equivalents
1,225,122
528,763
Restricted cash
4,583
2,677
Operating lease right-of-use assets
207,605
211,187
Accounts receivable
72,537
86,858
Less: accumulated depreciation on real
estate investments
(1,023,993
)
(989,254
)
Less: accumulated amortization on
intangible assets
(13,531
)
(12,693
)
Prepaid expenses and other current
assets
52,831
35,456
Total assets
$
7,255,340
$
6,577,511
(1) Included in other assets in the
accompanying consolidated balance sheet. Other assets include the
following:
March 31, 2020
December 31, 2019
Intangible assets, gross
$
58,784
$
57,385
Less: accumulated amortization on
intangible assets
(13,531
)
(12,693
)
Notes receivable and related accrued
interest receivable, net
14,011
14,026
Prepaid expenses and other current
assets
52,831
35,456
Total other assets
$
112,095
$
94,174
About EPR Properties
EPR Properties is a leading experiential net lease real estate
investment trust (REIT), specializing in select enduring
experiential properties in the real estate industry. We focus on
real estate venues which create value by facilitating out of home
leisure and recreation experiences where consumers choose to spend
their discretionary time and money. We have over $6.7 billion in
total investments across 44 states. We adhere to rigorous
underwriting and investing criteria centered on key industry,
property and tenant level cash flow standards. We believe our
focused approach provides a competitive advantage and the potential
for stable and attractive returns. Further information is available
at www.eprkc.com.
CAUTIONARY STATEMENT CONCERNING
FORWARD-LOOKING STATEMENTS
With the exception of historical information, certain statements
contained or incorporated by reference herein may contain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), such as those pertaining to the uncertain
financial impact of COVID-19, our capital resources and liquidity,
expected waivers of financial covenants related to the Company's
bank credit facilities and private placement notes, expected
liquidity and performance of our customers, including AMC, our
expected dividend payments and share repurchases and our results of
operations and financial condition. The estimates presented herein
are based on the Company's current expectations and, given the
current economic uncertainty, there can be no assurances that
definitive agreements providing for the expected waivers of
financial covenant compliance will be entered into or that the
waivers will be obtained in the time presently expected, if at all,
or that the Company will be able to continue to comply with other
applicable covenants under its debt agreements, which could
materially impact actual performance. Forward-looking statements
involve numerous risks and uncertainties and you should not rely on
them as predictions of actual events. There is no assurance the
events or circumstances reflected in the forward-looking statements
will occur. You can identify forward-looking statements by use of
words such as “will be,” “intend,” “continue,” “believe,” “may,”
“expect,” “hope,” “anticipate,” “goal,” “forecast,” “pipeline,”
“estimates,” “offers,” “plans,” “would” or other similar
expressions or other comparable terms or discussions of strategy,
plans or intentions contained or incorporated by reference herein.
While references to commitments for investment spending are based
on present commitments and agreements of the Company, we cannot
provide assurance that these transactions will be completed on
satisfactory terms. Forward-looking statements necessarily are
dependent on assumptions, data or methods that may be incorrect or
imprecise. These forward-looking statements represent our
intentions, plans, expectations and beliefs and are subject to
numerous assumptions, risks and uncertainties. Many of the factors
that will determine these items are beyond our ability to control
or predict. For further discussion of these factors see “Item 1A.
Risk Factors” in our most recent Quarterly Report on Form 10-Q.
For these statements, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. You are cautioned not to place undue
reliance on our forward-looking statements, which speak only as of
the date hereof or the date of any document incorporated by
reference herein. All subsequent written and oral forward-looking
statements attributable to us or any person acting on our behalf
are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section. Except as
required by law, we do not undertake any obligation to release
publicly any revisions to our forward-looking statements to reflect
events or circumstances after the date hereof.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200506005960/en/
EPR Properties Brian Moriarty, 888-EPR-REIT
www.eprkc.com
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